Internet Marketing The Digital World

Digital Benefits Moore’s Law – bits become cheaper Digital environments Convergence Separation between products is breaking down What separates a PC from a TV?

Moore’s Law Definition – each new generation of chip has twice the power of its predecessor Doesn’t apply to mass storage – reduction is even more dramatic

Using Moore’s Law Using more computer resources as costs drop relative to other marketing inputs Examples – customer service using the net, software distribution and intranets Easier to communicate in different languages – TMI and instant translation

Future of Moore’s Law Con - Laws of physics and economic cost Pro – Andy Grove sees no limits

Digital Environment Janet Murray’s theories on environment creation Procedural Participatory Spatial Encyclopedic

Procedural Logical - can handle complex problems Internet – how should machine and consumer interact Connection speed and the info displayed Verifying available browser features “Digital Actors” – Wal-Mart’s Cyber greeter

Participatory Ease of use Set of rules for deciding what to show Interactivity = rules + user participation Skills – explaining what you want to accomplish online

Encyclopedic Low storage cost allows for the storage of huge amounts of information Don’t have to choose between saving money and offering multiple versions Placing multiple formats on a CD Savings Lower production costs Fewer shelving requirements No need to worry about wrong format

Digital Convergence Computing, communications and media content – melding technology and technique Computing Computers, software and computer services Communications Telephone, cable, satellite and wireless Content Entertainment, publishing and information providers

Money Trillions traded this way each day Consumer transactions done electronically – deposits & withdrawals Problem – security systems may be too expensive and sophisticated for SME’s Scale and diversity is challenge Small transactions with different skill levels

Business Process Identifying marketing processes Understand markets and customers Break down into smaller steps, eg package handling Digital substitution Online marketing research Redesign marketing for digital capabilities E-tickets by airlines – overcame need for physical evidence