E-Marketing/6E Chapter 1 Past, Present, and Future

Chapter 1 Objectives After reading Chapter 1, you will be able to: Explain how advances in Internet and information technology 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. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

The Barack Obama Campaign Story Barack Obama’s Internet strategy targeted 18-29 year-old voters because 93% are online and used the Internet to get information and connect with friends. Facebook displayed over 8 million Obama friends. Two-thirds of all campaign funds came from Obama’s online channel. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Internet 101 The internet is a global network of interconnected networks. E-mail and data files move over phone lines, cables and satellites. There are three types of access to the Internet: Public internet Intranet: network that runs internally in an organization. Extranet: two joined networks that share information. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-business, E-commerce, E-marketing 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 the result of information technology applied to traditional marketing. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-business, E-commerce, E-marketing Effects traditional marketing in 2 ways: Increases effficiency and effectiveness in traditional marketing functions Transformation of many marketing strategies through the use of technology Results in new business models, example through the use of Facebook, Twitter etc. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-Marketing Is Bigger than the 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. Electronic marketing reaches far beyond the web – sofware and hadware used for CRM, SCM and EDI don’t rely on the internet. Non-web communications are also effective for marketing puposes- text messaging, email, internet telephony. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

The Web Is Only One Aspect of E-Marketing ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-Marketing Is Bigger than Technology The Internet provides individual users with convenient and continuous access to information (product reviews, search engines etc.) entertainment (music, movies etc), and communication (chat, e-mails etc). Communities form around shared photos (Flickr), videos (YouTube), and individual or company profiles (Facebook). Auctions in consumer and business markets Filesharing – Google Docs, Dropbox. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-Marketing Is Bigger than Technology The digital environment enhances processes and activities for businesses. Cross-functional teams from around the world Human resource recruitment and financial information flow Societies and economies are enhanced through more efficient markets, more jobs, and information access. Remote societies accessing to legal ,health advice Work at home convenience ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Global Internet Users ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Internet users in the World 1995-2010 Jun, 2011 2,110 millions 30.4 % Internet World Stats ©2009 Pearson Education, Inc. Publishing as Prentice Hall

World’s Top 20 internet users(2010) ©2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Marketing’s Past: Web 1.0 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. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Internet Timeline ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

The E Drops from E-Marketing Gartner predicted that the e would drop, making e-business just business and e- marketing just marketing. Nevertheless, e-business will always have its unique models, concepts, and practices. Online search Online data collection ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-BUSINESS JUST BUSINESS? ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Web 2.0 Netlingo – The components of Web 2.0 sites (the popularity of blogs and social networking sites) exist because of the ability to offer mini home pages, a gig of storage, your own email, music player and photo, video and bookmark sharing…… all of which are initially “first generation” technologies. Marketers create products that capitalize on the Web 2.0 technologies Web 1.0 – connected people to computers Web 2.0 – connected people to computers and other people in social networks ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

E-Marketing Today: Web 2.0 Web 2.0 technologies connect people with each other through social media, which have created opportunities and challenges for marketers. Power shift from sellers to buyers. Consumers trust each other more than companies. Market and media fragmentation – cable tv, special interest magazines. Now addressing needs of smaller groups. Online connections are critical Customers now more sophisticated and thus more demanding ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

POWER SHIFT FROM COMPANIES TO INDIVIDUALS ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Inbound Marketing Customers have moved. No longer reachable in significant numbers through traditional media. Customers fed up with interruptions to their daily activities. Television commercial skipping ever growing. Inbound marketing – customers found online; mainly from social websites. Growth through referrals via social media websites. Customer engagement – customer participation in activities and making customers more attentive and be for favorable towards the brand. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Acquiring a Customer from Social Media ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

OTHER OPPORTUNITIES AND CHALLENGES IN WEB 2.0 Internet adoption matures – need to find new ways to get the customers’ attention Online retail sales reach 4% of all sales – thus competition very keen for online buyers. Search engines are now reputation engines – now a key part of the online marketers budget. Content is still king – agile and flexible in responding to consumer generated media. Essential to have relevant and interesting content. Improved online and offline strategy integration –website, outlets, catalogue Intellectual capital rules – more critical than financial capital 60% broadband adoption at home – entertainment on demand; self uploading of preferred videos and movies The long tail – selling small quantities of large no. of products ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Wi-Fi at Train Station in France And Everywhere ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

The Future: Web 3.0 Lines between traditional and new media are blurring. Appliances are converging and becoming “smart.” Wireless networking is increasing. Semantic web will provide worldwide access to data on demand without effort. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

Web 3.0 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. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

How do experts characterize Web 3.0? Semantic web will be achieved and the mobile device will be the primary Internet connection tool by 2020 (Pew study). Interactive media will cannibalize traditional media (Forrester Research). Web 3.0 will ultimately be seen as applications which are pieced together…run on any device…are very fast…are distributed virtually (Eric Schmidt of Google). ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

INTERNET-TIME ANALOGY ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL