Case Study: Multiple Zones International

In addition to offering more product and better fulfillment, MZI pulled out all the stops on its e-mail and online marketing and revamped its catalog marketing. Until late 1998, banner advertising and affiliate marketing were cost-prohibitive. Lalji says the change to performance-based marketing, the increase in number of advertisers and the establishment of companies that manage online marketing, has made advertising on the Internet affordable and effective. E-mail marketing has become quite sophisticated, with audio, rich media and streaming video possible, as well as enhancements in tracking click-throughs, purchases and pass-alongs. MZI has pulled much of its online, and even e-mail marketing, in-house with the creation of its own e-marketing company, touchMarketing. Lower marketing costs caused MZI to increase electronic marketing from 3.9 million e-catalogs for the first six months of 1999 to 9.7 million in 2000.