2. Learning Objectives
To develop a conceptual foundation for comparing
(Similarities and differences) between traditional and
Internet marketing
To examine how human advances in communication,
numeracy and computing contributed to the creation
of the internet (Important links to the Internet’s past)
To identify the immediate precursors to today’s
commercial Internet
To consider the state of the Internet economy and
theorize about its future
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3. Internet
The internet is a global network of interconnected
computer networks, built on common standards
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.
(china) China's Great Firewall impedes foreign trade
Extranet: two joined networks that share information.
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4. Origins of the Internet
The Internet started in 1969 as the ARPANET, a
network for academic and military use. (Initial ARPA
and DARPA research)
Two key early adopters: Rogers model for the adoption and diffusion of innovations
University instructors and researchers
The United States military
5. Origins of the Internet
Researchers began work in 1960s
Four peer computer nodes connected in 1969
Development of TCP/IP protocols
6. Origins of the Internet
Governed initially by the National Science Foundation,
which prohibited all commercial transactions
Services include the Web, e-mail, file transfers, etc.
Email propelled the Internet off campus and outside the
military
7. The World Wide Web
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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8. The Internet Goes Mainstream
E-Marketing’s Past: Web 1.0
Government regulation dissolved in early 1990s
By 1994, the Internet had gone commercial
Tim Berners-Lee
Talks: Tim Berners-Lee on the next Web
Web 1.0 connected people to networks.
9. The Web
Most popular service on the Internet, the release of the
World Wide Web
Developed in early 1990s
Provides access to Web pages (HTML documents)
Can include text, graphics, animations, music, videos
Web content has grown exponentially, from around 2
billion Web pages in 2000 to around 40 - 50 billion today
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10. Booms and Busts
Fascination with the web also led to an infusion of
investment capital
The first generation of e-business was like a gold rush
Aggressive, expensive battle for customers doomed many
start-ups
Greater discipline and more cost-effective marketing plans
allowed the dot-com era to take root
Between 2000 and 2002, more than 500 internet firms shut
down in the U.S. (dot-com bubble)
11. Web 2.0
The “new” Web
Web 2.0 connected people with machines and each other
Web 2.0 is the second generation of internet technology
and includes:
Applications and technologies that allow users to:
create, edit, and distribute content
share preferences, bookmarks, and online personas
participate in virtual lives
Build online communities
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12. Web 2.0
The “new” Web
Blogs
Social networking
Photo, video, and bookmark sharing
Examples
YouTube, Photobucket, Flickr
MySpace, Facebook, LinkedIn
Second Life
Wikipedia
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13. The Future: Web 3.0
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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15. Defining Marketing in the
Internet Age
Marketing
Is a collection of activities
Brings buyers and sellers together
Facilitates satisfying exchanges
Adds value
Occurs online, offline, and collaboratively in both
environments
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16. Defining Marketing in the
Internet Age
Internet marketing or Emarketing is marketing in
electronic environments, primarily on the Internet
Like, traditional marketing, the goal of Internet
marketing is to facilitate exchange, build long-
term customer relationship and create value,
which is the benefits received from marketing
exchange
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17. Defining Marketing in the
Internet Age
Customer satisfaction is at the heart of marketing
The Internet adds to the customer satisfaction by
delivering time, place and form utility
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18. Defining Marketing in the
Internet Age
Time utility happens because web storefronts
never close
Information is available nonstop and searches can
be conducted and purchases made whenever the
visitor is connected
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19. Defining Marketing in the
Internet Age
The Internet is an always on 24/7/365 environment
24 hours a day
7 days a week
365 days a year
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20. Defining Marketing in the
Internet Age
Place utility is provided by entertainment,
news, weather, software and other virtual
products that can be delivered directly from
the Internet to the visitor’s computer screen
or wireless device
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21. Defining Marketing in the
Internet Age
Form utility when products are customized
or made available in the desired assortment
or quantities
The Internet facilitates product
customization on a scale that cannot be
achieved offline
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22. Dot-com
Originally, the term dot-com referred to
businesses that were solely online without
an offline store, production facility, or office
Today the term more broadly means the
online operation of a clicks-only or brick-
and-clicks enterprise
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23. Why Study E-marketing?
Technology is different and more powerful than other
technologies
Has challenged much traditional marketing thinking
Has a number of unique features that help explain why
we have so much interest in e-marketing
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24. Unique Features of
E-marketing Technology
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
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25. Links to the Internet’s Past
It’s wise to look to the future and learn from
the past
Connections to past events, discoveries,
innovations paved the way for the Internet
Why is it so important that
Ancient people developed written language
Literacy spread
Industrialization occurred
Production became mobile
Computers were created
Computing power increased; prices fell
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28. What Lies Ahead
Just 15 percent of the world’s 6.3 billion
population is online
And the dominance of American users is
steadily shrinking
29. New Technologies,
New Opportunity
Advanced Connection Devices – from cell
phones to home wireless systems – increase
the potential online consumer audience
Faster Internet Connections bring marketing
messages to the audience more swiftly
30. A Shift for Marketing
From “Selling the Brand” – The old model emphasized
on mass production and a promoting a distinct brand
To “Managing the Consumer” – Online marketing
puts focus on the customer’s individualized
interests and demands
31. Static websites provide basic information and game
broadcasts
Dynamic websites allow greater fan interaction and
facilitate ecommerce
Personalized websites respond to individualized fan
interaction
Keyword Advertising links fans to potential travel and
tourism sites
32. Rethinking Marketing Strategy
Three General Purposes Technologies form the
foundation of Internet marketing and pave the
way for greater innovation:
The Digital Revolution
Networking
Individualization
33. E-marketing Trends: 2010
New marketing models based on social technologies
and user-generated content
Search engine marketing challenges traditional
marketing
More and more people/businesses use Internet to
conduct marketing
Broadband and wireless Internet access growing
Continued conflict over copyrights, content regulation,
taxation, privacy, Internet fraud and abuse.
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34. Potential Limitations on the Growth
of E-marketing
Expensive technology
Sophisticated skill set
Persistent cultural attraction of physical markets and
traditional shopping experiences
Persistent global inequality limiting access to telephones
and computers
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35. Consumers Have More Control
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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