WHY THIS BOOK?

The commercial explosion of the Internet is, in many ways, analogous to the start of a large footrace. Initially, when the gun goes off and throngs of people charge down the pavement, it is difficult to distinguish the competitive racers from the inexperienced enthusiasts. Soon, however, the excitement wears off as fatigue sets in and the pacesetters pull away from the pack, their legs fueled by years of preparation and hard work.

The early Internet industry was flush with investor capital to fund rapidly conceived and executed ventures. Back then, the mantra was simply, "If you build and market it, they will come." Many companies spent millions scrambling in a land grab to beat competitors to market with an online product. Millions more were subsequently spent on witty advertising campaigns to build awareness in the marketplace. Now, as the dust begins to settle and we get our first good look at these newly public companies, what do we find?

In most cases, the great savings and increased efficiency promised by e-business hasn't materialized. The high cost of labor and unforeseen difficulties of conducting business online have resulted in larger than expected expenses and require higher margins to attain profitability. Gone are the days when e-commerce sites sought to dominate the marketplace virtually. Now, in addition to designing Web pages, they need to construct huge warehouses and employ hundreds of workers. Realizing this, once pie-eyed investors have become more realistic. Astronomical company valuations have headed toward the land of reality, and raising funding for new ventures has grown increasingly difficult.

The long-anticipated shakedown is upon us. Citing increased competition, poor financials, and investor flight, Forester research predicted that the majority of online e-commerce sites will fold by 2001. Similar predictions that "the sky is falling" have been made in the past and proven false; but one simple fact remains: Unprofitable companies that can't raise additional capital will go bankrupt. Having spent exorbitant amounts on developing and marketing their sites, many companies are quickly running out of money and are suddenly faced with an unenviable situation.

Naysayers aside, has the time for developing new online products passed us by? Certainly not.

The Web is an incredibly dynamic and efficient medium for conducting global business. The visions of a digital future that once fueled a frenzy of investment are still possible. The proliferation of the Internet is astounding. Currently, half of all U.S. households have Net access, up from under 10 percent in 1995. Broadcast television grew at nearly the same rate, achieving near ubiquity within ten years. There is little reason to suspect that the Net will be much different. Like television and the telephone, the Internet will simply become too valuable to do without.

Projections for e-commerce are also astounding, rising from $63 billion in 1999 to $1.7 trillion in 2003. Undoubtedly, the opportunity to successfully develop and market well-conceived online products is alive and well. Dead (or dying) are all the half-baked, get-rich-quick schemes. The online industry is no longer a sprint to be first; it's a marathon that the most strategic and efficient companies will win.

Many factors will contribute to the success of those who survive the shakedown or launch new online products. Above all, these companies will have been able to:

1. Identify and quantify business opportunities.

2. Evaluate and satisfy the needs of customers.

3. Efficiently develop and market products.

These precursors to success are achieved through intuition, knowledge, and maybe a bit of luck. While we can't help you hone your intuition or improve your luck, we have written this book to help you increase your knowledge.

The purpose of this book is to provide the Internet business community with comprehensive information about understanding, using, acquiring, and conducting market and marketing research online. For many years, market and marketing research have been standard tools used in traditional industries to take much of the guesswork out of making critical business decisions. Without research, companies are, quite frankly, conducting their business like a game of "pin the tail on the donkey."

The advent of the Web has caused a revolution in the research community. Web technology has astronomically reduced the cost of conducting numerous types of research and simultaneously enabled the execution of more complicated and rigorous study designs. Businesses that operate entirely online, or have significant online components to their sales or marketing strategies, have a fantastic opportunity to reap the benefits of this revolution.

Unfortunately, Web companies are still stumbling around in the dark, because they lack the unique combination of research and technology skills to leverage these new opportunities. Doing so requires a thorough understanding of the types of online research currently available, and knowledge of when and how to apply each type. Additionally, not all research is created equal; users of research need to be sufficiently savvy to conduct some types of research on their own, and informed enough to select the best possible vendor to implement the remainder.

This book will remove the blindfold and provide the reader with a clear understanding of how to use online research to assist in each stage of an online venture.