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25. Marketplaces, marketspaces and metamarkets

In this lesson we distinguish between a marketplace and a marketspace. The marketplace is physical, as when one goes shopping in a store; marketspace is digital, as when one goes shopping on the Internet. 

E-commerce—business transactions conducted on-line—has many advantages for both consumers and businesses, including convenience, savings, selection, personalization, and information. 

For example, on-line shopping is so convenient that 30 percent of the orders generated by the Web site of REI, a recreational equipment retailer, is logged from 10 P.M. to 7 A.M., sparing REI theexpense of keeping its stores open late or hiring customer service representatives.

However, the e-commerce marketspace is also bringing pressure from consumers for lower prices and is threatening intermediaries such as travel agents, stockbrokers, insurance agents, and traditional retailers. To succeed in the on-line marketspace, marketers will need to reorganize and redefine themselves.

The metamarket, a concept proposed by Mohan Sawhney, describes a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries. 

The automobile metamarket consists of automobile manufacturers, new and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet. Car buyers can get involved in many parts of this metamarket. 

This has created an opportunity for metamediaries to assist buyers to move seamlessly through these groups. One example is Edmund’s (www.edmunds.com), a Web site where buyers can find prices for different cars and click to other sites to search for dealers, financing, and accessories. 

Metamediaries can serve various metamarkets, such as the home ownership market, the parenting and baby care market, and the wedding market.

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