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Conceptual paper
Abstract
The nature of the Internet as a medium of information has created opportunities for a
global market place of ideas. As part of this new wave of idea driven commerce, there
has been a rapid increase in the number of niche orientated products being developed by
who are using the Internet as their sole distribution mechanism. This paper offers an
examination of idea driven microbusiness, and examine Internet marketing strategies for
the microbusiness entrepreneurs. In particular, the paper focuses on the use of the intra-
niche focused street level marketing concept for microbusinesses to assist in the
Introduction
This paper looks at the role of the Internet in facilitating global microbusiness success,
for idea products such as art, music or entertainment. It also examines the value of the
business to microbusiness market from both the perspective of the microbusiness for
channel control, and the commercial opportunities for the facilitator businesses.
Microbusinesses Defined
less, employees (Baldwin, 1999). For the most part, the microbusiness sector remains a
roughly equivalent nature. However, with the rise in the number of SOHO (small
office, home office) businesses, and the increasing focus on small operator e-commerce
For the purpose of this paper, a global e-microbusiness is defined as an Internet based,
globally focused business organisation consisting of less than five employees. In order
to qualify as globally focused, the microbusiness must either directly ship products to
allows for global access to their products (Dann and Dann, 2001a). For example, a
microbusiness based in Los Angeles that only serves the L.A. market through the
Internet would not qualify as a global e-microbusiness. Simply using a global medium
does not automatically give the microbusiness a global focus - they must make their
product available to buyers beyond the borders of their native land in order to qualify as
global microbusiness, given that is the distribution of the product outside the country of
origin of the microbusiness. However, this would exist as a technicality - for the
purpose of this paper, the global microbusiness must have a distribution strategy that
Given the nature of the Internet as a medium of idea exchanges, one of the most
Idea driven commerce has been used to describe those categories of products that are
based on eliciting emotional responses from consumers – for example, art, graphics,
audiovisual and interactive experiences. For this paper, IDE will be limited to those
products which are distributed through the Internet, and which are designed to elicit a
cognitive-emotive response from an end consumer, eg art, music and graphics design.
So what then are the most common forms of cognitive-emotive idea products that are
distributed on the Internet? There are four main types of products that are best suited to
the current conditions of the Internet which are digitised art, music, interactive software
and web sites. Digitised art includes any artist or design work that can be viewed
digitally, and is available for sale commercially as either a printed work or permanent
assignment of digital reproduction rights. This limitation to the product removes any
Similarly, the on-line distribution of music requires that the music be available for sale
public licence that does not exclude commercial revenue from the sale of the product.
Finally, the microbusiness web sites are those web sites that provide content for the
intent of commercial gain, either through the sale of support merchandises, direct
subscription or advertising revenue. For the purpose of this paper, digitised art and
music will be examined, as these products have the greatest need for facilitator
companies.
Despite such a variance in the type and nature of the global microbusiness, there are a
series of common factors that increase the likelihood of success for these operations.
Initially, as with businesses of any size, an e-microbusiness must have a business focus
including the need for the use of marketing. In addition, global e-microbusinesses need
to consider their distribution strategies for accessing their global target markets, eg for
those based inside America, they need distriubtion strategies for reaching non-US
markets, whereas those based outside America can use the Internet for entering the US
market. Finally, the e-microbusiness operator needs to examine whether to use their
distribution channel. The authors have chosen to use the street level marketing paradigm
enterprise marketing that represents those entrepreneurial marketers servicing the needs
within their community (Dann and Dann 2001b). It is a technique especially suited to
(e-mail client) to meet a specific niche need (multiple e-mail account handling) after the
programmer could not find an existing product. The personal success of the program
can lead to a commercial opportunity to service the market of others who had similar
needs to those of the programmer. In the broader microbusiness sense, SLM represents
a movement away from the established belief that all marketing must be based on a top-
down “research and discover target needs, then develop products to match the needs”
approach used by larger organisations. Instead, this approach validates the marketing
their own needs first, and then expands the application of this product to people with
SLM Expanded
SLM expands into a series of sub-elements which operationalise the concept, which are
TAKE IN FIGURE 1
The central tenet of SLM is the need to use the principles of marketing in the operation
recognise that the product was developed to solve a personal need, has a wider
application in the community, and can be tailored to best suit the needs of the niche.
The four elements of the marketing orientation include the need for the microbusiness to
intelligence and engage in some forms of marketing research (Doyle and Wong 1998;
Gray et al 1998). For a business that consists of five or less people, these tasks are
usually handled as an informal part of the daily operations, in that a client focus can be
microbusiness are developing their product for their own needs. Similarly, marketing
research in this context is both quantitative where necessary, but primarily reliant on
organisations is usually directed straight to the person responsible for implementing the
suggested changes.
Market Immersion is the second element of the SLM technique. This formally
recognises the involvement in the market niche as a criterion for success as an SLM
Those microbusinesses that develop products under the conventional top down approach
to target market selection are not part of the SLM process, and must be examined under
microbusiness comes from inherent knowledge of the needs of the marketplace from
Credibility splits between the source credibility theories of advertising and promotion,
and the street credibility of the microbusiness (Garbino and Johnson 1999). Street
social network capital, market mavenism (Feick and Price 1987), target market empathy
(Andreasen 1994, Walker Langmeyer and Langmeyer 1992) and peer group respect.
The value of street credibility extends beyond the professional reputation of the
microbusiness through to the personal reputations of the staff of the business, and their
The final element of SLM for microbusinesses is the notion of aidmheil, which is the
notion of faith in the product and self belief and belief in the potential success of the
belief structure (although it can help when running a microbusiness). Instead, this is a
formal recognition of the need for a level of personal confidence in the product and a
self confidence in the microbusiness’s ability to deliver on their promises (Flores 1998).
operators who express an inherent faith in their product, or a belief in their eventual
success. The aidmheil of a microbusiness can also be represented through the owner-
operator’s willingness to undertake the higher risks of small business operation and
the Internet for servicing a global market niche, how can these businesses gain the
maximum effect from their on-line presence? Tetteh and Burn (2000) proposed a six
point structure for maximising on-line effectiveness for SME marketing. These are:
• Define clear goals for being on-line. For the e-microbusiness, an on-line presence
should be established with a series of goals and objectives in mind for two reasons.
First, clear goals are needed to plan the development of the microbusiness and its
on-line presence. Second, set goals allowing for calculated strategies in developing
restricted in the degree to which they can extend their organisational capacities
before moving into the SME category, or losing sight of their core business.
Microbusinesses are advised to only add those functions to the e-microbusiness that
result in an increase in value – for example, a microbusiness that uses the Internet to
conduct wholesale transactions with on-line retailers does not need to develop their
exchange amongst niche market members through a discussion forum. Above all,
the priority should be to create a network of value between all of the relevant
stakeholders, such as the end users and the product manufacturer’s support staff
• Use the virtual infrastructure to create virtual values of process, product and image.
Process values involve using the on-line infrastructure to give greater depth and
detail to the on-line product – for example, a microbusiness that creates specialist
wood souvenir carvings can contain additional information on the history of the art,
links to further information, and even a discussion forum for other artists. This
develops a sense of value for the customer in visiting the virtual infrastructure and
encourages repeat visits. It also serves to enhance the reputation of the product
through enhanced corporate image for the microbusiness. Virtual infrastructure can
also be used as the basis of cybercommunities, which can create a strong loyalty to
the product, web site and microbusiness (Dann and Dann 2001a)
• Cultivate a virtual culture for the microbusiness’s clientele. Given that an SLM
microbusiness will be dealing in a marketing niche in which it, or the member staff,
will have personal relationships and networks, this aspect is a valuable reminder to
encourage those members of the target market to continue their interaction with the
product users, who can also contribute to the ongoing development and refinement
culture that supports the microbusiness, it also serves to enhance and expand the
potential target audience from the initial niche, through the extended on-line social
networks of members of that niche. One significant advantage of the Internet over
classic distribution channels is the ease with which a niche product can expand its
market via a horizontal spread through informal social networks of the primary
• Continual response: The final and most essential element of the on-line existence of
the microbusiness is the need for continual monitoring and response to market
changes. A hallmark of the SLM process is the use and reliance on constant
feedback from fellow members of the market niche as they use and refine the
product to meet their needs. This is one area where the microbusiness has the
stimulus. This allows for much faster response times (particularly for solo operated
compared with slower requests for formal permission to expand the product line. In
comes to responses to environmental change and stimuli (Collinson and Shaw 2001)
Microbusinesses can benefit significantly from engaging in structured and deliberate use
of the Internet to maximise their exposure to their target niche, and to gain the
maximum outcome for their on-line efforts. Part of this, however, also requires an
important initial decision process of determining what role the Internet will play in the
In terms of this paper, market access is seen as the capacity to deliver goods to a
consumer within a specific target market (eg regional market such as the East Coast of
the market access to be gained through the Internet returns the discussion to the notion
of idea driven commerce, and how ideas can be moved across national boundaries
through e-commerce. It also poses the question of how the Internet can be used – will it
used by a global company (ie an organisation based outside of the USA) to reach an
The value of the Internet as a global export medium into the American target market is
emphased for two reasons. First, many of the idea commerce organisations that offer
Internet based product distribution services are located within the US, and that provides
considerable cost advantages for delivering into America. Second, the relatively large
percentage of Americans using the Internet, when compared to other national markets,
American idea commerce providers to be able to deliver into a lucrative market without
The first and most touted use of the Internet for global marketing has been its role as a
low cost, highly accessible global network of exchange (Javalgi and Ramsey 2001).
From the perspective of the e-microbusiness, the Internet offers global access to either
the microbusiness’s web site, or to a microbusiness facilitator’s web site (see below).
Issues of the removal of geographic and time constraints associated with physical store
a large number of the idea commerce facilitator companies. These organisation have
and taxes that restrict the movement of certain goods out of the USA. Rather than seeing
entering the American market. For example, a graphics designer working in Puerto
Rico designing products with an Hispanic focus can access US based print companies
through the Internet, and facilitate an entry into the American marketplace that would
musicians can distribute their work through American based music web sites without
requiring a work visa or permits that would be needed to tour America, or an importer
to bring the music content into the USA. Consequently, the Internet significantly
markets.
The ultimate value of the Internet for many microbusinesses has been access to a range
Internet has been the rise of the very intermediary channel that it was alleged to have
idea based commerce providers can create economies of scale in storing, processing and
dealing in idea products. One aspect of the rise of the idea product, and the growing
success of the business to microbusiness relationships, has been the ability of digital
processes (preset upload scripts where the microbusiness controls the input of the
also responsible for the product pricing and description. Compare this to a process
where the creator hands over their work to a printer, who produces the products for a
wholesaler, who then onsells to a retailer, who writes the product description and sets
the price, and this is then conveyed to the target market via public relations and
advertising. In niche products, particularly SLM based products where street credibility
and source credibility are important factors for success, it is important to have the
shortest viable chain from product producer to product user (preferably the product
producer should also endorse their product by being a product user as well). The
automation of these processes also works to the advantage of the consumers, who can
access the microbusiness’s product without needing to rely on the availability of the
microbusiness owner.
The final element of the paper examines a brief series of case studies of three different
• music distributors
Perhaps the most infamous use of the Internet as a distribution mechanism was the rise
in peer to peer file sharing during the late 1990s with services such as Napster and
Gnutella. Whilst the majority of public attention for these services was focused on the
illicit trade of copyright materials, these peer to peer services also presented new
delivery alternatives for copyright owners wishing to distribute samples of their work.
In addition, the proposed redevelopment of Napster into a fee paying content search
operating as microbusinesses to use the service as a sales and distribution outlet (IUMA
2002). Microbusinesses hosting content through IUMA can rely on the service to act as
The independent music industry is also strongly associated with SLM business and
microbusiness productions in that many musicians produce music products for their
own niche (eg surfers producing surf music, DJs developing turntable equipment), or to
production of short runs (include individual pressings) of mixed media audio and data
CDs for the microbusiness musicians using their site. Similarly, other microproduction
range of products (eg mugs, shirts, mousepads and hats), and also provides secure on-
line purchasing arrangements for the store. The microbusiness owner provides the
graphical content for the products in a non-exclusive licence arrangement, and the
Cafepress site provides the production, on-line store, and shipping for the
microbusiness.
The third aspect of business to microbusiness support is the manufacture of idea driven
commerce products by enterprises such as Zazzle.com. The Zazzle site provides on-line
hosting for high resolution graphics that can be purchased through the site as posters
printed to either high resolution paper or direct to canvas. One of the key points of the
service, which they highlight to potential customers and users, is that they see their role
shipping for digital content. Microbusinesses using this service can focus on the
production of the idea content (artistic work) without needing to develop extended
supply chains of printers, art exhibitors and distribution networks. The Zazzle service
also facilitates niche orientated art publishing by offering a key word (up to 9 per
image) search mechanism, and up to four genre locations (eg landscape, religion,
patriotic, college life) in order to unite similar art and artists, as both a convenience to
the consumers using the service, and the intra-niche focused microbusiness artists.
example, MP3.com can host an intra-niche market for producers of classical music. At
the same time, the producer-users of the intra-niche products are able to deal directly
with members of the same niche market. In general, systems such Zazzle and MP3.com
allow the microbusinesses to produce just-in-time idea products, for intra-niche markets,
without the expense of start up costs, or the need to sink large amounts of capital into
product stockpiles.
Conclusion
marketing opportunities for micro businesses. The global nature of the Internet brings
with it potential for global expansion, although in the past, the logistics of shipping
world wide were often beyond the scope of micro businesses. Having access to products
sales websites that could not deliver the products was more likely to cause frustration
for out of range potential customers than to make sales. Recognising that many micro
businesses are intra niche operators, traditional marketing models are of little relevance
facilitator organizations on line, barriers to entry for small businesses, particularly into
difficult to enter markets like the US, will continue to be substantially reduced. Further
the new business model of just in time off shore manufacturing opens up new
opportunities for a variety of creative micro businesses. This paper has outlined some of
the current developments in this field and provides a basis for future comparison as the
Marketing Market
Credibility Aidmheil
Orientation Immersion
Marketing Intelligence
Marketing Research
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Web sites
www.iuma.com
www.mp3.com
www.cafepress.com
www.zazzle.com/welcome/home/default.asp