America Online
Christina Flynn
Principles of Marketing
February 26, 2002
Mission Statement
"To become the world's most respected and valued company by connecting, informing and entertaining people everywhere in innovative ways that will enrich their lives."
Introduction
America On-line (AOL), the largest commercial on-line service provider in the US, has been presented with a daunting task. Remaining a viable competitor in an increasingly crowded, fast- changing and competitive market. . Consumer services are entering a highly contested market that is expected to be even more competitive with the arrival of telephone and cable television giants in the months to come. For example, AT&T dealt a devastating blow for AOL as well as hundreds of other Internet providers by offering five hours per month free Internet usage to its approximately 90 million customers, 20 million of whom already have personal computers.
AOL, the largest commercial on-line service, offers their customers more than access to the Internet. AOL features include chat rooms, electronic magazines, software and entertainment services. Analysts believe that such content makes these services less vulnerable in the short run to AT&T's offerings. A value-added feature of AOL is its proprietary system that it provides users access to proprietary content. For AOL, that which makes them unique (proprietary system), also makes them most vulnerable.
AOL has aggressively marketed to the mass media of on-line users. Marketing efforts have focused on selling the idea of AOL as an easy-to-use, fun, interactive, "community" with a lot of content exclusively provided to its members. AOL distributes their software via direct mailings, inserts o ...