Ivey Publishing

Internet Marketing: Integrating Online and Offline Strategies

Roberts, M.L.,2/e (United States, Cengage Learning, 2008)
Prepared By Fabrizio Di Muro, Ph.D. Candidate (Marketing)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Internet Marketing Enters the Mainstream

CHARTWELL TECHNOLOGIES: UPPING THE ANTE WITH INTERNET POKER
Michael J. Rouse, David Maslach

Product Number: 9B08M055
Publication Date: 12/9/2008
Length: 12 pages

On March 12, 2005, the founder and chief executive officer (CEO) of Chartwell Technologies (Chartwell), a company that specialized in Internet gaming development, noticed something interesting. The CNN headline news ticker on his television read: "Online Poker Industry Expected to Grow by Billions within the Year." The CEO and his partner, the vice-president of business development, were about to decide whether to acquire MicroPower Inc. (MicroPower), an online poker company, for US$2.6 million in cash. The industry certainly had the potential for explosive growth. The CEO had to decide whether Chartwell should upgrade its current technology or purchase MicroPower to gain instant access to its C++ platform to take advantage of the growth on the online poker industry.

Teaching Note: 8B08M55 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services, Arts, Entertainment, Sports and Recreation, Manufacturing
Issues: Human Resources Management; Integration; Technological Growth; Acquisitions
Difficulty: 4 - Undergraduate/MBA



LULULEMON ATHLETICA: CHIP WILSON'S NEW VENTURE (A)
Eric Morse, Ken Mark

Product Number: 9B06M036
Publication Date: 5/12/2006
Revision Date: 9/7/2012
Length: 6 pages

Chip Wilson is trying to decide if he should pursue his current venture, a yoga wear retailing concept or return to being chief executive officer of Westbeach Snowboard, a firm he found two decades ago. This case is the first in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M037, 9B06M038, 9B06M039, 9B06M040, 9B06M041 and 9B06M042.

Teaching Note: 8B06M36 (20 pages)
Industry: Manufacturing
Issues: Decision Support Systems; Decision Theory; Decision Analysis
Difficulty: 4 - Undergraduate/MBA



JEWELLWORLD.COM - ONLINE JEWELRY SHOPPING IN CHINA
Shige Makino, Anthony Fong

Product Number: 9B05A009
Publication Date: 9/23/2005
Revision Date: 9/24/2009
Length: 19 pages

The marketing manager of Jewellworld.com was faced with the problem of a saturated Hong Kong market, and has to consider ways in which to expand the business. In a meeting with the marketing director, who was responsible for the development of the Hong Kong and Chinese Jewelry markets, one of the main topics was the expansion of the online shopping strategy into the B2C area in China; however, the staff of the marketing department held different views. The immediate question was whether Jewellworld.com should move into the B2C area at full speed or wait and see how other competitors fared in the China online market. The other issue was the segmentation that Jewellworld should employ if they decide to enter the B2C market in China. A competitor had established retail stores across China. The question was whether Jewellworld should aim to cover all market segments and product lines, or target young people who tend to use the Internet more frequently.

Teaching Note: 8B05A09 (6 pages)
Industry: Retail Trade
Issues: International Marketing; Internet; Retail Marketing; International Business
Difficulty: 4 - Undergraduate/MBA



PACIFICLINK IMEDIA: DESIGNING AN INTERNET BUSINESS
Andrew Karl Delios

Product Number: 9B00M024
Publication Date: 8/11/2000
Revision Date: 1/11/2010
Length: 15 pages

PacificLink iMedia was a Hong Kong based Internet marketing company that specialized in Web design using Flash technology. The company had grown six-fold since its inception 18 months ago. The directors of the company anticipated that the company would double in size in the next six months, and they were considering moving into three new markets, as well as into new business areas. The concepts of competitive advantage in the Internet industry, and the structure of this industry are introduced from the perspective of a company that provides business services. See also the second and third cases in the three-part series, 9B09M023 and 9B16M202.

Teaching Note: 8B00M24 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Internet; Strategy Development; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
The Internet Value Chain

NASEEB NETWORKS, INC.: ONLINE NETWORKING FOR MUSLIMS
Fareena Sultan, David T.A. Wesley

Product Number: 9B07E004
Publication Date: 4/2/2007
Revision Date: 2/24/2010
Length: 21 pages

The case describes Naseeb Networks (Naseeb), a social networking site that seeks to offer Muslims an online forum that conforms to Islamic cultural traditions. Using a product platform strategy, the company has been able to expand to other online services to Muslims, including greeting cards and job search. As a company, Naseeb has a number of advantages that distinguish it from other Islamic Internet companies. The case looks at the conditions under which a company can seek to enter a mature market by offering highly specialized niche services and raises questions about how to monetize a niche service with limited expansion options. From an information systems perspective, it provides an example of how a technology platform can be used to expand into other service areas with minimal development costs. Lastly, the case considers how companies that host online communities attempt to balance user-generated content and company-sponsored content and activities.

Teaching Note: 8B07E04 (9 pages)
Industry: Other Services
Issues: Market Entry; Internet Culture; Networks; Outsourcing; Northeastern
Difficulty: 4 - Undergraduate/MBA



GLOBAL HEALTHCARE EXCHANGE CANADA: TRADE EXCHANGE ADOPTION
Terry H. Deutscher, Dana Gruber

Product Number: 9B02A023
Publication Date: 12/9/2002
Revision Date: 10/28/2009
Length: 14 pages

Global Healthcare Exchange Canada is a business-to-business exchange that connects hospitals and their major suppliers through an electronic procurement process. Founded as a subsidiary of its global parent, the exchange has become the leading health-care exchange in the country, but it is still far short of break-even. It must develop a compelling value proposition if it is going to drive adoption among hospitals and suppliers to the target levels. To do so, it must overcome considerable inertia among hospitals that are often very reluctant to change from frequently inefficient purchasing processes. Although there are major benefits to be realized from automating supply chain operations in the industry, the adoption decision process among hospitals is highly complex, but very idiosyncratic. In confronting these challenges, the exchange must also re-examine its own business model, in particular its pricing strategy for both suppliers and hospitals.

Teaching Note: 8B02A23 (15 pages)
Industry: Health Care Services
Issues: E-Business; Market Strategy; Purchasing; Marketing Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Business Models and Strategies

WORKOPOLISCAMPUS.COM
Michael J. Rouse, Natalie Takach

Product Number: 9B08M008
Publication Date: 1/31/2008
Revision Date: 9/4/2008
Length: 18 pages

The company, workopolisCampus.com, was an online job site for students and new graduates of Canadian colleges and universities. The website was established by several Toronto universities in the late 1990s and was acquired soon after by Workopolis to complement the company's primary job site, workopoliscom. After several years of steady but slow growth, workopolisCampus.com's future prospects appeared limited in 2007. The provides an opportunity to explore options for organizational change.

Teaching Note: 8B08M08 (18 pages)
Industry: Other Services
Issues: E-Business; Internet; Business Development
Difficulty: 4 - Undergraduate/MBA



UNDERGROUNDHIPHOP.COM
Michael H. Zack, Ben Compaine, David T.A. Wesley

Product Number: 9B07M064
Publication Date: 10/4/2007
Revision Date: 2/26/2010
Length: 20 pages

Undergroundhiphop.com (UGHH) was the leading source of independent hip-hop on the Internet. Although company revenues remained small compared to major online music retailers, the opening of a storefront in 2005 helped create new opportunities within the music industry, but also proved to be a drain on company resources. As the founder tried to expand the company, he faced a number of choices. However, his conservative financial strategy was limiting the company's potential. UGHH desperately needed to hire programmers, designers and managers to keep up with new technological developments and social trends, such as music downloads, blogs and online social networking. Yet the cost of running a bricks and mortar retail store left little to invest in other areas of the business. The case provides a classic example of entrepreneurship that can be used in introductory and intermediate level entrepreneurship classes. It can be used as a platform to illustrate an entrepreneur who fails to make the transition to a manager. The discussion will provide an opportunity to introduce or review the concept of franchising.

Teaching Note: 8B07M64 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Franchising; E-Business; Growth Strategy; Northeastern
Difficulty: 4 - Undergraduate/MBA



ADVANCED BOOK EXCHANGE: GEOGRAPHIC GROWTH OF AN INTERNET-BASED BUSINESS
Anthony Goerzen, Travis Cramb

Product Number: 9B04M024
Publication Date: 8/10/2004
Revision Date: 10/13/2009
Length: 16 pages

Advanced Book Exchange is an Internet-based used book marketer. It has been very successful, but larger firms such as Amazon and Barnes & Noble were looking into this market. The chief operating officer must decide whether to grow through geographic diversification or consolidate and stay focused on its current markets.

Teaching Note: 8B04M24 (4 pages)
Industry: Other Services
Issues: Internet; Global Product; International Business; Internationalization
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Direct Response and Database Foundations of Internet Marketing

CANADIAN TIRE MULTIPLE CHANNEL RETAILING
Michael R. Pearce, Neal Costello, Michael Hall, Lindsay Nicholl

Product Number: 9B02A014
Publication Date: 7/22/2002
Revision Date: 10/28/2009
Length: 11 pages

Three years after launching a content-based Web site, a nationwide hard goods retailer invested in software to support Internet shopping. The online component was one element in a multiple channel retailing approach, which also included retail stores, a phone-order service and an annual catalog. Although the company is the country's most shopped retailer, the online retail segment has not turned a profit. The director of marketing must consider the effect of multiple channel retailing on the company's profitability.

Industry: Retail Trade
Issues: Distribution Channels; E-Business; Retailing; Internet Marketing
Difficulty: 4 - Undergraduate/MBA



NOTE ON MULTI-CHANNEL RETAILING
Michael R. Pearce, Yvette Mahieu

Product Number: 9B02A012
Publication Date: 4/29/2002
Revision Date: 10/28/2009
Length: 17 pages

The growing popularity of the Internet for shopping has launched the latest round of multiple retail channel integration as traditional stores, cataloguers, online stores and others all seek to provide customers with the choice of when and how to do business with them. Multi-channel retailing presents both significant opportunities and challenges. Success depends on how well a retailer addresses these opportunities by creating a seamless, fully integrated, multi-channel operation focused on providing high-quality, cost-effective service to consumers. Multi-channel integration is a complex strategy to undertake. This note discusses the major issues that retailers have to address.

Industry: Retail Trade
Issues: Retail Marketing; Retailing; E-Commerce; Internet
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Understanding the Internet Customer

ANDURO MARKETING: INTERNET SERVICES VS. SOFTWARE SALES
Malcolm Munro, Sid L. Huff

Product Number: 9B07A018
Publication Date: 10/1/2007
Length: 14 pages

Anduro Marketing is a Canadian company that sells technical services to companies wanting to improve their search engine website rankings. Though small, Anduro has attracted several major clients in both Canada and the United States, and expects steady profitability and growth. Anduro believes it can generate substantial additional profit by developing and selling a suite of software products that automate its technical service offerings. Anduro's managers must decide whether Anduro is better off staying with its current safe and profitable strategy or if Anduro should instead pursue a riskier but potentially more profitable software sales model. Several tough questions must be answered to determine whether the risk is worth the reward. The Anduro case provides an interesting description of an Internet technical/marketing services business and contrasts this with software sales.

Teaching Note: 8B07A18 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Search Engines; Internet Software; Internet Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



WALT DISNEY INTERNET GROUP JAPAN'S DIMO PROJECT
Philip Sugai

Product Number: 9B04A026
Publication Date: 11/23/2004
Revision Date: 10/7/2009
Length: 25 pages

The Walt Disney Internet Group Japan has recently launched an entirely new set of interactive mobile character/agents for the NTT DoCoMo iMode platform, called Dimo. Having built Japan's most successful mobile entertainment business using traditional Disney-branded characters and related content, these Dimo characters have been designed to go well beyond entertainment and become valuable guides, assistants and friends for users of the continuously evolving Mobile Internet and the increasingly complex tasks enabled by this platform. Although the Walt Disney Internet Group Japan team feels strongly that these types of character/agents will be the future of human-device interactions, subscription figures six months after Dimo's launch suggest that Japan's mobile consumers may not share this belief.

Teaching Note: 8B04A26 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: E-Business; Brand Management; Competitive Advantage; Consumer Behaviour
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Customer Acquisition: Brand Development and Online Advertising

MOLSON CANADA: SOCIAL MEDIA MARKETING
Deborah Compeau, Israr Qureshi

Product Number: 9B08A014
Publication Date: 10/23/2008
Revision Date: 5/4/2017
Length: 13 pages

This case describes Molson’s experiment with social media for creating brand awareness. In November 2007, Molson, part of the Molson Coors Brewing Company, ended a social media promotion after facing criticism that it promoted binge drinking. Molson was faced with the difficulty of how quickly the contents of social media could spread to various audiences. The case encourages readers to ponder whether Molson’s action was the only option available and to consider what its next steps might be.

Teaching Note: 8B08A14 (4 pages)
Industry: Manufacturing
Issues: Privacy Issues; Internet Culture; Management Information Systems; Social Media; Facebook; Breweries
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Customer Acquisition: Search E-mail and Other Marketing Tools

GUEST-TEK INTERACTIVE ENTERTAINMENT: INTERNATIONAL SALES
Laurie Milton, Nigel Goodwin

Product Number: 9B06M067
Publication Date: 7/27/2006
Revision Date: 9/21/2009
Length: 17 pages

The chief executive officer of Calgary-based Guest-Tek Interactive Entertainment Ltd., a leading provider of high-speed Internet access to the hotel industry, must consider whether and how his company should grow its business overseas. Ninety-seven per cent of Guest-Tek's fiscal year 2003 revenue was derived from North American hotels - a market he knew would eventually become saturated. Guest-Tek had listed publicly in January 2004. Both internal and external investors now demanded results. Other geographic markets held the promise of new growth and competitors were already pursuing those opportunities.

Teaching Note: 8B06M67 (9 pages)
Industry: Information, Media & Telecommunications
Issues: International Marketing; Industry Globalization; Telecommunication Technology; Decision Analysis
Difficulty: 4 - Undergraduate/MBA



LEO BURNETT INTERACTIVE
John S. Hulland, Robert J. Fisher, Ken Mark, Elizabeth O'Neil

Product Number: 9B00A005
Publication Date: 5/1/2000
Revision Date: 1/6/2010
Length: 16 pages

Leo Burnett Canada must decide how it should organize to provide Internet advertising services to current and potential clients. Treating the interactive group as a separate business entity has the advantages of maintaining a separate, entrepreneurial culture, to continue to develop technical and creative skills that are Internet specific, and to grow Leo Burnett's client base. Or, Leo Burnett can make the interactive group an integral part of the main agency, which provides an enhanced ability to develop and offer integrated marketing communication strategies for its clients. This strategy is most likely to lead to stronger relationships with existing clients, but is less likely to enable Leo Burnett to attract new business. The case is also an excellent platform for discussions related to the differences between full service and specialized advertising boutiques and tech shops that focus on Internet advertising. Students, if encouraged to visit several case-related Web sites, will develop a fuller understanding of the different types of agencies that exist and the services they offer. This focus naturally leads to a discussion of how the Internet is leading to changes in full-service agencies.

Teaching Note: 8B00A05 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Agency; Market Strategy; Advertising; Advertising Management
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Customer Relationship Development and Management

PLACE YOUR "BET" ON INTERNET GAMING
Michael R. Pearce, Kevin Dennis

Product Number: 9B02A024
Publication Date: 11/29/2002
Revision Date: 10/28/2009
Length: 14 pages

Casino gaming companies such as MGM Mirage, Harrah's and Park Place Entertainment, in addition to their traditional land-based casino properties, must consider the potential impact of Internet gambling on their existing operations. It appears that several Internet gaming companies have been quite successful and that the global market potential could be significant. Each of the United States gaming companies has taken very conservative approaches to Internet gaming in an effort to maintain their long-standing relationships with their respective state gaming authority. However, non-traditional casino companies have developed off-shore Internet gaming operations to circumvent traditional land-based gaming regulations. Going forward, traditional gaming companies will need to consider the possible legalization of Internet gaming on a large scale and how they would respond.

Teaching Note: 8B02A24 (19 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Gambling; E-Business; Internet Marketing; Retailing
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Customer Service and Support in Web Space

FLOWERS BY SEARS CANADA
Michael Parent, Erin Pond

Product Number: 9A99E012
Publication Date: 3/29/2000
Revision Date: 1/15/2010
Length: 9 pages

The entrepreneur who founded Flowers by Sears Canada faces pressure from management at Sears Canada to significantly increase sales. The case deals with the role of information technology in achieving this objective, specifically, the nature and extent of interactive voice response (IVR) systems in the organization. Flowers by Sears is a virtual company, and a forerunner to today's Internet businesses. Like FTD, it has no physical stores. It relies on a network of affiliated independent florists to fill and deliver orders. The IVR directs calls to the independent florists. As such, the nature of this system has a direct and significant impact on revenue streams in the channel. This case presents IVR technology and the issues surrounding its use by geographically-distributed firms.

Teaching Note: 8A99E12 (11 pages)
Industry: Retail Trade
Issues: Computer System Implementation; Information Systems; Corporate Strategy; Consumer Marketing
Difficulty: 3 - Undergraduate


Chapter 10 & :
Developing and Evaluating Web Marketing Programs & Measuring and Evaluating Web Marketing Programs

CRITICAL MASS: THE IT CREATIVITY CHALLENGE
Malcolm Munro, Sid L. Huff

Product Number: 9B08E010
Publication Date: 11/4/2008
Length: 10 pages

Critical Mass was a highly successful Internet marketing services firm with a blue chip client list. The rapidly changing Internet environment demanded continuous innovation and an exceptional level of creativity from the Technology Group. The company invested substantial resources in a creative-friendly physical environment and organized an array of activities intended to keep creativity bubbling. The company was ready to embark on a significant expansion in its customer base and management had decided to review and reassess these activities to determine if they were having the desired effect and if corrective changes were required.

Teaching Note: 8B08E10 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Management of Technology; Corporate Culture; Internet Marketing; Management Information Systems
Difficulty: 4 - Undergraduate/MBA



LIVING.DUPONT.CA: VIRTUAL BUSINESS, REAL MONEY
Kersi Antia, Ilia Frolov, Bharat Sud

Product Number: 9B03A018
Publication Date: 5/28/2003
Revision Date: 10/15/2009
Length: 14 pages

Dupont Canada manufactures and sells the raw materials that are used to produce brand name home renovation and home decorating products, including fabrics, carpets, countertops and paints. In order to develop relationships with consumers and acquire information on their purchasing needs and purchasing patterns, the company launched a Web site that offered decorating idea and product information through a Virtual Home. After 12 months, the company's project team must decide whether the project was a worthwhile investment and whether they should invest in the second phase. In making their decision, they need to identify the performance metrics to use in estimating the return on investments. They also need to determine whether to pursue revenue generation through the sale of advertising space or online sales through the Web site. Finally, the project team needs to assess whether their value chain partners would be willing to invest in the second phase of the project.

Teaching Note: 8B03A18 (6 pages)
Industry: Manufacturing
Issues: Internet; Return on Investment; Marketing Channels
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Social and Regulatory Issues – Consumer Data Privacy

DOUBLECLICK INC.: GATHERING CUSTOMER INTELLIGENCE
Scott L. Schneberger, Ken Mark

Product Number: 9B01E005
Publication Date: 3/5/2001
Length: 16 pages

DoubleClick Inc., with global headquarters in New York City and over 30 offices around the world, was a leading provider of comprehensive Internet advertising solutions for marketers and Web publishers. It combined technology, media and data expertise to centralize planning, execution, control, tracking and reporting for online media companies. DoubleClick was able to track Internet-users' surfing habits (but not the surfers' identities) allowing it to personalize ads for specific market groups. When DoubleClick announced it was merging with Abacus Direct, a direct marketing company with a database of consumer names, addresses and retail purchasing habits of 90 per cent of American households, it raised many privacy-related questions and concerns. Several Internet privacy activists had filed a formal complaint with the Federal Trade Commission after being informed by media sources that DoubleClick had the ability to divulge a person's identity by merging the databases of the two companies and matching the information in cookies with a surfer's profile. The president of DoubleClick was confident that its internal practices were sound, but he wondered if they would placate advertising clients afraid of consumer backlash, the concerns of Internet surfers and the company's investors.

Teaching Note: 8B01E05 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: High Technology Products; E-Commerce; Privacy Issues; Risk Management
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Leveraging the Marketing Knowledge Asset

ROGERS' CHOCOLATES (B): SEPTEMBER 2007
Charlene Zietsma

Product Number: 9B08M089
Publication Date: 12/4/2008
Length: 1 pages

The new president of Rogers' Chocolates has been hired to double or triple the size of Rogers' Chocolates, a high end chocolate producer and retailer in Victoria, British Columbia. The case allows a comprehensive analysis of marketing, manufacturing, human resource, financial and strategic positioning issues in a small company (sales of Cdn$12 million annually) with manufacturing, retailing, wholesaling and Internet operations. The B case presents a crisis situation, which must be resolved in a short term.

Teaching Note: 8B07M12 (10 pages)
Industry: Manufacturing
Issues: Strategic Positioning; Strategic Change; Strategy Implementation; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



ROGERS' CHOCOLATES (A)
Charlene Zietsma

Product Number: 9B07M012
Publication Date: 4/9/2008
Revision Date: 1/6/2009
Length: 22 pages

A new president has been hired to double or triple the size of Rogers' Chocolates, a high end chocolate producer and retailer in Victoria, British Columbia. The case allows a comprehensive analysis of marketing, manufacturing, human resource, financial and strategic positioning issues in a small company with manufacturing, retailing, wholesaling and Internet operations.

Teaching Note: 8B07M12 (10 pages)
Industry: Manufacturing
Issues: Growth Strategy; Strategic Positioning; Strategy Implementation; Strategic Change
Difficulty: 4 - Undergraduate/MBA



CONCENTRIC NETWORK CORPORATION
Frederik Lindkvist Karavoulias, Elliot Maltz

Product Number: 9B02A011
Publication Date: 6/21/2002
Revision Date: 10/28/2009
Length: 32 pages

Concentric Network Corporation provided a full range of Internet services to small- and medium- size businesses. This market was potentially very lucrative, and the demand for full Internet solutions was growing, but the uncertain rate of Internet adoption made the growth trajectory difficult to determine. Success in this market required three fundamentals: product, distribution and capital-intensive infrastructure. Concentric's strength was in the first two. Concentric faced a number of rivals that offered similar services at similar costs. Due to the competitive environment and the need for infrastructure, cooperation and partnerships were of great importance. Concentric's management team recognized that to complete - or even to survive - in the maturing industry, it needed to become more vertically integrated. Concentric announced a merger with Nextlink Communications Inc., a voice and high-speed Internet provider specializing in the business-to-business market. The issue facing the company's chief executive officer and the senior vice-president of marketing was how to compete in the small- and medium-size business market through leveraging the joint capabilities of the merger.

Teaching Note: 8B02A11 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Market Strategy; Value Analysis; Telecommunication Technology; Alliances; Monitor
Difficulty: 5 - MBA/Postgraduate


Chapter 14:
The Future – Wireless and Convergence

WAVERIDER COMMUNICATIONS INC.: SELLING WIRELESS INTERNET ACCESS EQUIPMENT
Donald W. Barclay, Ken Mark

Product Number: 9B01A003
Publication Date: 5/18/2001
Revision Date: 12/3/2009
Length: 16 pages

WaveRider Communications, a wireless Internet access equipment provider, had just completed the first installation of its latest system. The vice-president of marketing had to deal with two key sales issues that had recently surfaced. First, as compared to initial expectations, it had been taking at least twice as long for the company's salesforce to sell its new portfolio of products. Second, he noticed a sharp increase in the number of customers relying on WaveRider's post-sales support. He must examine the impact of the longer sales cycle on a number of company issues, such as type of salesforce and support needed, costs to serve, revenue generation, and share price. He also wanted to determine if more could be done to educate the customer during the selling period in order to facilitate smoother implementation.

Teaching Note: 8B01A03 (10 pages)
Industry: Manufacturing
Issues: Action Planning and Implementation; Sales Management; Sales Strategy; Product Management
Difficulty: 4 - Undergraduate/MBA



RESEARCH IN MOTION LTD. (A)
Adrian B. Ryans

Product Number: 9A99A036
Publication Date: 2/9/2000
Revision Date: 1/13/2010
Length: 17 pages

Top management at Research in Motion (RIM) were considering a significant change in strategic direction. RIM manufactured two-way pager, wireless PC card and OEM radio products. With the anticipated convergence of wireless and Internet e-mail, RIM saw an opportunity to sell end users a two-way, e-mail end-to-end solution, including both hardware and telecommunication service. Management had to assess whether this was an attractive opportunity. If they did enter the market, RIM would have to decide whether to target individual users or corporate information technology departments and select channels to reach its targeted customers. RIM also faced some challenging marketing communication issues, since about 50 per cent of potential users showed no interest in a mobile e-mail solution.

Teaching Note: 8A99A36 (12 pages)
Industry: Manufacturing
Issues: High Technology Products; Marketing Communication; Market Strategy; Marketing Channels
Difficulty: 4 - Undergraduate/MBA