1. Internet Marketing An Introduction Copyright, Angela D’Auria Stanton, Ph.D., 2008-09. All Rights Reserved

2. Usage of the Internet 1.4 billion users worldwide (almost 22% of the world’s population) Source: http://www.internetworldstats.com/stats.htmhttp://www.internetworldstats.com/stats.htm

4. Top Web Sites http://www.alexa.com/site/ds/top_sites?ts_m ode=global&lang=none http://www.alexa.com/site/ds/top_sites?ts_m ode=global&lang=none http://www.quantcast.com/top-sites-1

5. What do Users in the U.S. do on the Internet? http://www.pewinternet.org/trends/Daily_Int ernet_Activities_7.22.08.htm http://www.pewinternet.org/trends/Daily_Int ernet_Activities_7.22.08.htm What are the Demographics of U.S. Internet Users? http://www.pewinternet.org/trends/User_De mo_7.22.08.htm http://www.pewinternet.org/trends/User_De mo_7.22.08.htm

6. Active Digital Media Universe: People that have used a computer capable of connecting to the Internet AND visited a Web site and/or launched any computer file tracked by Nielsen//NetRatings' applications metering module. Current Digital Media Universe Estimate: People over the age of 2 that have access to the Internet from a personal computer at home; includes active and non-active persons in the household. Source: http://www.netratings.com/press.jsp?section=pr_netv&nav=3http://www.netratings.com/press.jsp?section=pr_netv&nav=3 Global Index Chart Month of October 2008, Panel Type: Home October 2008 September 2008 % Growth Sessions/Visits per Person per Month 3735+5.43 Domains Visited per Person per Month 7268+5.77 Web Pages per Person per Month 1,6001,489+7.41 Page Views per Surfing Session 42 +0.89 PC Time Spent per Month 38:07:3333:21:30+14.29 Time Spent During Surfing Session 1:02:360:57:45+8.40 Duration of a Web Page Viewed 0:00:500:00:47+6.08 Active Digital Media Universe 366,579,976369,939,966-0.91 Current Digital Media Universe Estimate 544,618,961555,535,420-1.97

7. The Digital Divide The digital divide refers to the gap between people with effective access to computers and the internet and those without access. Stages include: – The Economic Divide – some people can’t afford a computer and/or internet access. – The Usability Divide – technology is too difficult for many to understand (e.g. low literacy, seniors, etc.) – The Empowerment Divide – not making full use of the opportunities technology affords

8. Where Are We? Technology Peak of Trough of Slope of Plateau of Trigger Inflated Disillusion Enlightenment Profitability Expectation 1990-1996 1999 2000 2001 2002 2003 2004 2005 2006 Equity times Debt Times Positive Cash Flow Visibility Dot-com peak U.S. Recession E-Business becomes “just business” Source: Gartner Research

9. The Evolution of the Web Web 1.0: The movement that took place in the early days of commercialization of the WWW. Back then the primary use of the Internet was taking print media and posting it online. – This movement is still going on and will probably never stop. This is because as new data becomes available it needs to be made available online.

10. The Evolution of the Web Web 2.0: After all this data was posted online with the Web 1.0 movement, the online community began to look for ways to share all of this data. The main question that drove this movement, “How can I take this data and share it with other people?” – Uses the concept of social networking to create a community – Types of popular applications include blogs, sharing sites (e.g. YouTube, Flickr), wikis, social networking sites, etc.YouTubeFlickr

11. The Evolution of the Web Web 2.0 (continued) – Really Simple Syndication (RSS) is a primary distribution method of Web 2.0 technologies It is a way for people to receive information from blogs, news sites, podcasts, etc. at self-selected intervals eliminating the need to visit sites individually. By sending the info wherever and whenever you want it, RSS is the ultimate push-marketing tool. Web 2.0: The Machine is Using Us (YouTube video) Web 2.0: The Machine is Using Us

12. The Evolution of the Web Web 3.0: Still to come but visualized to be the integration of data and applying it in innovative ways – Imagine taking things from Amazon, integrating it with data from Google and then building a site that would define your shopping experience based on a combination of Google Trends and New Products.

13. Using Web 2.0 Technologies at RU Check out RU’s Admissions site at: http://admissions.asp.radford.edu/default.aspx. The site, in its present form, is only employing web 1.0 technology. http://admissions.asp.radford.edu/default.aspx Get into some small groups and discuss some ways in which RU could employ some web 2.0 technologies for Admissions (a directory of various web 2.0 technologies can be found at http://www.listio.com) ? What would be the advantages of your suggestions? What are some potential problems? Please type up your suggested approaches (along with the advantages and problems you discussed for each) in a Powerpoint and e-mail this to me at astanton@radford.edu. Each group will be asked to present their ideas to the class.http://www.listio.comastanton@radford.edu

14. Strategic Drivers of the Internet Economy* 1.Information provides the greatest value added 2.Distance no longer matters 3.Speed is of the essence 4.People are the key assets 5.Growth rates are accelerated by the network 6.Market power is determined by skill in managing information 7.Marketplace power has shifted in the direction of customers 8.The Internet makes it possible to deal with customers on a one-to-one basis 9.The era of instant gratification is here * Internet Marketing: Integrating Online and Offline Strategies, Mary Lou Roberts, 2003, p. 15.

15. How Marketing has changed due to Technology Ubiquity (any time/any place) – the marketplace has been replaced by “marketspace” is removed from temporal and geographic location Global Reach Universal Standards – costs of delivering marketing messages and receiving user feedback have been reduced because of shared, global Internet standards Richness – video, audio and text can be integrated into a single marketing message and consuming experience

16. How Marketing has changed due to Technology Interactivity – consumers can be engaged in dialog, dynamically adjusting the experience to the consumer, and making the consumer a co-produce of goods/services sold Information Density – Highly detailed information on consumers’ real-time behavior can be gathered, analyzed and used for marketing purposes Personalization/Customization – Products and services can be differentiated to individuals Social Technology – user-genereated content, social networking sites and blogs have created new online audiences where the content is provided by users

17. What do you think about targeted advertising? Read the following article: http://www.washingtonpost.com/wp-dyn/content/article/2008/09/02/AR2008090202956.html http://www.washingtonpost.com/wp-dyn/content/article/2008/09/02/AR2008090202956.html Items for discussion: – What do you think about using information you provided for targeted ads? – Look at your Facebook and/or MySpace page. What ads are you seeing? Why do you think these ads were selected? Are they relevant? Why or why not?

18. eBusiness vs eCommerce vs eMarketing eBusiness: The process of using Web technology to help businesses streamline processes, improve productivity and increase efficiencies. Enables companies to easily communicate with partners, vendors and customers, connect back-end data systems and transact commerce in a secure manner. eCommerce: Any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. eMarketing: The process of facilitating the exchange of products (goods, services, ideas, experiences, people, places, properties, organizations, information, ideas) via computer- mediated networks and related digital technologies in conjunction with traditional communications to satisfy individual and organizational goals. eMarketing eCommerce eBusiness

19. Internet Marketing is Not New Traditional MarketingInternet Marketing  Broadcast Advertising Banner Ads  Direct Mail eMail  Press Releases Website pressroom  Promotions Online Events  Networking Chat Rooms/Listservs  Word of Mouth Viral Marketing

20. Comparison of Activities Internet Marketing Environmental scanning, needs assessment, and market research Segmenting, targeting, and positioning Online branding Developing the Marketing Mix – Product strategies (e.g., branding) – Pricing strategies – Distribution strategies (e.g., e-tailing) – Promotion (Adv., Personal Selling, Sales Promotion, etc.) Web Design? Yes and No E-Commerce Security Issues Electronic Payment Systems Firewalls Purchasing and Support Activities (order fulfillment, front-end and back-end systems) Internet Marketing Legal Issues Supply Chain Management Tax Issues Web server and software tools Web hardware, networking E-Commerce Strategy Development

21. 7 Top Online Marketing Trends for 2009 Increase customer retention efforts. Create more attractive content (especially video) because it cost-effectively engages consumers at many touch points during the purchase cycle, leverages internal resources, and aids search optimization. Develop more targeted and relevant communications to be disseminated across a variety of devices, including advertising, e-mail, smartphones, text messages, and instant messages. Better leverage communities. While social communities expanded and new niche sites evolved in 2008, companies must think more broadly about their prospects, customers, and other influencers this year. This means evolving beyond the engagement phase of dealing with customers to show them the love. Increase analytic sophistication to drive business decisions in a resource-constrained environment. Enhance search marketing advertising despite increased cost, because search engines are still the first place online users turn to find information. Continue to integrate distribution channels despite the internal corporate challenges and higher costs. Multichannel merchants will face increased complexity and thinner margins unless they become more efficient. Source: http://www.clickz.com/3632306 http://www.clickz.com/3632306