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Grasping the fundamentals of Net marketing

The Star, May 8, 2001

Many dotcom companies failed because they were unable to grasp the fundamentals of Internet marketing, according to Sdn. Bhd. president and CEO Fione Tan.

Based on case studies of companies around the world, companies failed to tie up the cost of investment in IT with the direct benefits that can be derived from that investment,?Tan said at a Young Entrepreneurs?Association of Malaysia (PUMM) business IT gathering in Kuala Lumpur recently.

Based on these studies, companies had high overhead costs, and spent too much on advertising and promotions, as well as web development and technology; they also relied too heavily on online advertisements for their income, she said.

"Companies should seek other additional revenue-generating services to complement the services provided on the websites." she added.

Tan also indicated that poor customer service/support and poor corporate information on websites could lead to failures for some dotcoms. Dotcoms also face competition from off-line operators who are well established and possess more financial clout, she said.

"Grasping the fundamentals of Net Marketing - The Star"

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