The Dot com boom and bust

1
The Dot com boom and bust

• Marketing Mix

2
Discussion 1

• What were the major catalysts for the rise of
  the dot coms?
• What were the major catalysts for the fall of
  the dot coms?
• Explain how the same factors worked together to
  first create the rise in the dot coms andthen
  lead to their downfall.
• Where do you think the dot coms of today will be
  in 2 years time and where will they be in 5 years
  time?

3
Some sites to see about this

• http//www.disobey.com/ghostsites/mef.shtml
• Sorry for the profanity
• www.fuckedcompany.com

4
What were the major catalysts for the rise of the
dot coms?

• Hype talking the business up
• Lack of experience of technology
• Confusion between visitors and customers
• Major change in speed of trading
• Major change in financial information sources

5
What were the major catalysts for the fall of the
dot coms?

• Realism coming into projections
• The money ran out
• Large amount of cash spent in a little time
  (cashburn)
• Technology penetration not reaching critical mass
• Collapse of advertsing market as users became
  tech savvy

6
How did the same factors that worked together to
first create the rise in the dot coms also lead
to their downfall.

• Expectations for users and cash flow
• Head hunting and turnover of staff

7

• Where do you think the dot coms of today will be
  in 2 years time and where will they be in 5 years
  time?
• ?

8
Marketing and the Four P's
9
Marketing Four P's

• Marketing can be broken into four areas
• Product,
• Price,
• Place and
• Promotion

10
Product

• Product variety,
• quality,
• design,
• features,
• brand name,
• packaging,
• size,
• service guarantee and
• after sales support.

11
Product Phases (life-cycle)

• Introductory Phase
• Segway
• Growth Phase
• Friendsreunited
• Maturity Phase
• Mobile Phone - Nokia
• Decline Phase
• Projectors, Scooters

12
Product Life Cycle
13
Product Life Cycle and Demand
14
Demand life cycle

• If there is a noted need then there will be a
  product to satisfy that need (stage E). This is
  usually followed by an accelerating growth stage
  (G1) and a decelerating growth stage (G2).

• Then Maturity stage (M), Decline stage (G). There
  may be technology demand cycles, represented by
  T1 and T2. T1 was the initial technology that was
  overtaken by T2.

15
The Underlying Impact On Products Of The Demand
Technology Cycle
16
Promotion

• Sales promotion,
• advertising,
• public relations,
• direct marketing

17
Promotion methods

• Media Advertising (television, magazines,
  Internet, radio)
• Personal selling (involving a sales person)
• Non-personal communication (persuasion
  advertising - competitions, free samples.
• Other promotional types include public relation
  exercises and free publicity.

18
Advertising

• Advertising can either be concentrated on the
  general image of the company or a specific
  product for example a special offer.
• TELEVISION/CINEMA
• RADIO
• NEWSPAPERS AND MAGAZINES
• POSTERS
• EXHIBITIONS AND TRADE FAIRS
• INTERNET