Marketing91

  • Home
  • Categories
    • Marketing
      • Advertising
      • Branding
      • Sales
      • Retailing
      • Consumer Behavior
      • Distribution
      • Market Research
      • Pricing
      • Product Management
      • Strategy
      • Segmentation
      • Targeting
      • Positioning
      • Services Marketing
      • Articles
    • Digital Marketing
      • Blogging
      • SEO
      • E-commerce
      • PPC
      • Email marketing
      • Social Media Marketing
      • Facebook Marketing
    • Brands Analysis
      • Marketing Mix
      • SWOT
      • Strategies
      • Competitors
      • Lists
      • Expensive
    • Management
      • Customer Management
      • Communication
      • Leadership
      • Decision Making
      • Delegation
      • Organizational Management
      • Motivation
      • Personal Development
      • Project Management
      • Risk Management
      • Team Management
      • Time Management
    • Careers
      • Interviews
    • Business
      • Business Models
      • Logistics
      • Supply Chain
    • Human Resources
    • Skills
  • News
  • About Us
    • Contact Us
  • Academy

PURE CLICK COMPANIES

April 20, 2020 By Hitesh Bhasin Filed Under: Digital Marketing

There are several kinds of pure click companies – Search engines, Internet Service Providers (ISPs), commerce sites, transaction sites, content sites, and enabler sites. Search engines and portals such as Yahoo! And Alta Vista started as search engines and later added services such as news, weather, stock reports, entertainments, and storefronts hoping to become the user’s point of entry on the Internet. ISPs such as AOL and CompuServe provide Internet and e-mail connections for a fee. Commerce sites sell books, music, toys, insurance, stocks, clothes, financial services, and so on.

Among the most prominent ones are Amazon and ebay.com. Transaction sites such as auctions and brokerages like fabmart.com and others take a commission for transactions con-ducted on their sites. Content sites such as The Street, New York Times, and Encyclopedia Britannica provides financial, research, and other information. Enabler sites provide the hardware and software that enable Internet communication and commerce.

These sites compete using various strategies: automartindia, a leading website for car buying and related services; travelmartindia, the information leader in travel needs. Pure click companies on the web reached astronomical capitalization levels in the late 1990, in some cases for exceeding the capitalization of major companies such as United Airlines or Pepsi-Cola. They were considered a major threat to traditional businesses until the investing frenzy collapsed in 2000.

Dotcoms failed for a variety of reasons: Many rushed into the market without proper research or planning. They had poorly designed Web sites with problems of complexity, poor navigation, and downtime. They lacked adequate infrastructures for shipping on time and for answering customer inquiries. They believed that the first company entering a category would win category leadership. These companies wanted to exploit network economies, namely the fact that the value of a network to each of its members is proportional to the number of other users (Metacalfe’s Law). Some just rushed into the market in the hope of launching an initial public offering (IPO) while the market was hot.

Also Read  What is website performance? Tools to measure Website Performance

To acquire customers, dotcoms spent large amounts on mass marketing and offline advertising. They relied on spin and buzz instead of using target marketing and word-of-mouth marketing, and they devoted too much effort to acquiring customers instead of building loyal and more frequent users among their current customers. They did not understand customer behavior when it came to online surfing and purchasing.

Many dot-coms did not build a sound business model that would deliver eventual profits. The ease of entry of competitors and the ease of customers switching Web sites in search of batter prices forced dot-coms to accept margin-killing low prices. Webvan, the online grocer, illustrates how dot-coms failed to understand their marketplace.

At the same time, many pure-click dot-coms are surviving and even prospering. Others are showing losses today, but their business plans are fundamentally good.

Liked this post? Check out these detailed articles on Topic of Digital Marketing

Alternatively, check out theĀ Marketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies.

Marketing91 Academy

About Hitesh Bhasin

Hi, I am an MBA and the CEO of Marketing91. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. You will generally find me online at the Marketing91 Academy.

Related posts:

  1. BRICK AND CLICK COMPANIES
  2. 8 reasons having a website is important for business
  3. What is Website Conversion?
  4. Dedicated Hosting: Uses, Advantages & Examples of Dedicated hosting
  5. What Is Native Advertising? Native Advertising Examples
  6. Top 10 Influencer Marketing Tips Businesses should always Practice
  7. What is Growth Hacking? Beginners Guide to Growth Hacking
  8. Digital Asset Management: Meaning, Examples, and Key Benefit
  9. What is an online community? Best online communities to join
  10. Augmented Reality Vs Virtual Reality – Difference Between AR andVR

Join the Marketing91 Academy

Marketing Masterclass

Management Masterclass

Management Masterclass

Communication Course

Communication Masterclass

View All Courses
Economics Masterclass

Economics Masterclass

Sales Masterclass

Sales
Masterclass

Advertising Masterclass

Advertising Masterclass

View All Courses
Leadership Masterclass

Leadership Masterclass

Branding Masterclass

Branding
Masterclass

Strategy Masterclass

Strategy
Masterclass

View All Courses
Not found what you are looking for? Search this website.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement
Recent Posts
  • Informational Power: Definition, Sources and Importance
  • Reward Power in Leadership: Definition and Examples
  • Expert Power: Definition, Examples and Development
  • Legitimate Power: Definition, Examples, Advantages and Disadvantages
  • Nike, Adidas, Shein, and Temu Sent Letter From House China Committee About Forced Labor
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Marketing91 Team
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Editorial Policy
  • Advertise
  • Contact us
  • Sitemap

WE WRITE ON

  • Marketing
  • Business
  • Management
  • Brands
  • Digital Marketing
Search
[email protected]

Copyright Ā© 2023 Marketing91 All Rights Reserved