INTERNET BUSINESS AND ELECTRONIC MARKETING · E-MARKETING 5/E JUDY STRAUSS AND RAYMOND FROST Part...
Transcript of INTERNET BUSINESS AND ELECTRONIC MARKETING · E-MARKETING 5/E JUDY STRAUSS AND RAYMOND FROST Part...
INTERNET BUSINESS AND ELECTRONIC
MARKETING
Part I: E-Marketing in Context
Chapter 1: Past, Present, and Future
Facilitator: Dr. Richard Boateng
Class Website: www.vivauniversity.wordpress.com
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E-MARKETING 5/EJUDY STRAUSS AND RAYMOND FROST
Part I: E-Marketing in Context
Chapter 1: Past, Present, and Future
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Chapter 1 Objectives
After reading Chapter 1, you will be able to:
Explain how the internet and information technology
advances offer benefits and challenges to consumers,
businesses, marketers, and society.
Distinguish between e-business and e-marketing.
Explain how increasing buyer control is changing the
marketing landscape.
Understand the distinction between information or
entertainment as data.
Identify several trends that may shape the future of e-
marketing.
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Dell Starts Listening
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In 2004, Dell held 28.2% of U.S. computer market
share.
To reduce costs, Dell Computer began outsourcing
customer service to a firm in India.
Market share increased to 28.8% but complaints
and consumer dissatisfaction rose.
Dell digital media manager initiated blogs in
several languages to improve communication.
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Dell Starts Listening, cont.
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Dell’s blogs became mechanisms for handling
consumer complaints and ideas.
Blog usage resulted in over 20 changes to the
company.
What are the opportunities and risks in utilizing
blogs for improving customer service?
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Internet 101
The internet is a global network of interconnected
networks.
E-mail and data files move over phone lines, cables,
and satellites from sender to receiver.
There are two special uses of the internet:
Intranet: network that runs internally in an organization.
Extranet: two joined networks that share information.
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Internet 101, cont.
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E-business is the continuous optimization of a firm’s
business activities through digital technology.
E-commerce is the subset of e-business focused on
transactions.
E-marketing is one part of an organization’s e-
business activities.
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E-Marketing is Bigger than the Web
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The Web is the portion of the internet that supports
a graphical user interface for hypertext navigation
with a browser.
The Web is what most people think about when they
think of the Internet.
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The Web Is One Aspect of E-Marketing
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Exhibit 1.1
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E-Marketing is Bigger than Technology
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The internet provides individual users with
convenient and continuous access to information,
entertainment, and communication.
Communities form around shared photos, videos,
and online profiles.
The digital environment enhances processes and
activities for businesses.
Societies are enhanced through more efficient
markets, more jobs, and information access.
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Global Internet Users
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Exhibit 1.3
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E-Marketing’s Past: Web 1.0
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The Internet started in 1969 as the ARPANET, a
network for academic and military use.
Web pages and browsers appeared in 1993.
The first generation of e-business was like a gold
rush.
Between 2000 and 2002, more than 500 internet firms
shut down in the U.S.
By Q4 2003, almost 60% of public dot-coms were
profitable.
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E-Marketing Today: Web 2.0
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Web 1.0 connected people to networks.
Web 2.0 connected people with machines and each
other.
Web 2.0 is the second generation of internet
technology and includes:
Blogs
Social networking
Photo, video, and bookmark sharing
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The Future: Web 3.0
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The newest technologies allow marketers to focus on
user:
Engagement
Participation
Co-creation
Online gaming represented over $1 billion in
revenue and 15 million players in 2006.
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Consumers Have More Control
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The internet provides a communication platform for
individual comments, both positive and negative.
Comments can spread quickly and rapidly.
New technologies such as digital video recorders
(DVRs) will increase consumer control.
New service Akimbo maintains a library of over
10,000 programs with access via the internet,
television, or other appliance.
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Power Shift from Companies to Individuals
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Exhibit 1.7
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Wireless Networking Increases
Cell phones, PDAs, and laptops connect to the
internet via wireless modem worldwide.
Starbucks
Hotels and airports
Queen Mary II luxury liner
Amtrak train stations
Customers will have information, entertainment, and
communication when, where, and how they want it.
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WiFi at Train Station in France1-20
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Appliance Convergence
The receiving appliance is separate from the media
type.
Computers can receive digital radio and TV.
TV sets can receive the Web.
New types of “smart” receiving appliances will
emerge.
Internet refrigerator is many digital appliances in one.
Global positioning systems (GPS) allow in-car
communication and entertainment.
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Semantic Web
The Semantic Web will utilize a standard definition
protocol that will allow users to find information
based on its type, such as:
The next available appointment for a doctor.
Details about an upcoming concert.
Menu at the local restaurant.
Represents the next huge advance: providing
worldwide access to data on demand without
effort.
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