Electronic Marketing

Electronic Marketing Chapter 20The Future of Electronic Marketing Resources 2004 Joel Reedy and Shauna Schullo

What the Future Holds • In the context of marketing technology, convergence is the coming together of two or more disparate disciplines or technologies to provide systems of greater benefit • The fax revolution was produced by a convergence of telecommunications technology, optical scanning technology, and printing technology • NGI technology will provide technology for transmission of video components, videoconferencing, video storage, video broadcasting, video delivery of satellite or cable television programming over broadband networks, and video signal switching from Asynchronous Transfer Mode (ATM) to other types of networks such as ATM-to-Ethernet, the Internet system wired into many college dormitories throughout the nation 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI • The Internet using a modem and telephone line is a simple, analog conversation occurring between two digitally minded machines • Telephones have traditionally used analog technology, which refers to electronic transmission accomplished by adding signals of varying frequency to carrier waves of a fixed frequency of alternating electromagnetic current 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI Modulation • A modem is used to convert the digital information in the computer to analog phone signals for the phone line and to convert analog phone signals to digital information for the computer • Basically, the modem is the translator of the digital to the analog technology and herein lies the problem • Traditionally, telecommunications technology had leveraged the highly predictable nature of voice data and delivered this data efficiently by using dedicated circuits operating at a fixed bandwidth 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI Modulation continued… • The mode of delivery is through what is known as circuit switching technology, which is the foundation of the telephone network • Telecommunications companies are now embracing networks capable of high-speed transmission of images – broadcast television and cable • The networks to support the new technology have remained in a separate domain 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI • The method of transmitting this data uses what are called packet switching techniques, where small parcels of data are transmitted individually across digital communications networks, typically known as Local Area Networks (LANs) or Wide Area Networks (WANs) • There is now an increasing recognition that technology is required that is capable of meeting both styles of operation 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI • The strengths of the telecommunication approach in network management and control have become extremely attractive to the computing community, where network problems, even outages, result from the use of protocols, or standards of transmitting data that are not ideally suited to such situations • A variety of new standards are being created to address the current deficiencies • A new network protocol known as Asynchronous Transfer Mode (ATM) 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI ATM • Provides for a signal network service capable of supporting video, voice, and data transmission needs in a flexible and responsive way, and incorporates the following capabilities: • Much higher transmission capabilities • Flexibility and versatility • Universality and adaptability • The ability to meet the needs of each segment of the corporate network 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI ATM continued… • Implies far-reaching institutional as well as technological changes • Standards development continues • The order of implementation of ATM technology will be the Metropolitan Area Network (MAN) level in the institutional/educational campus context, followed by the Wide Area Network (WAN) level, then the corporate Local Area Network (LAN), then finally the work group and desktop level implementations 2004 Joel Reedy and Shauna Schullo

Overview of ATM in the Context of NGI ATM continued… • Represents a major component of NGI since it brings inter-networking potential of the Internet together with the management capabilities of high-capacity transmission within the traditional telecommunications industry 2004 Joel Reedy and Shauna Schullo

NGI in the Context of Marketing to Consumers • Internet had placed great strains on the ability of companies to deliver what their marketing promised • Internet bottleneck problem • Quality of service has thus become the problem with today’s Internet 2004 Joel Reedy and Shauna Schullo

Internet2 Project • Internet2 is a part of the NGI to rededicate a communications network linking research universities as the original Internet was purposed • The Internet2 project is bringing focus, energy, and resources to the development of a new family of advanced applications to meet emerging academic requirements in research, teaching, and learning 2004 Joel Reedy and Shauna Schullo

Internet2 Project • Internet2 universities, working with industry, government, and other research and education networking organizations, are addressing the major challenges facing the next generation of university networks by: • Creating and sustaining a leading edge network capability for the national research community • Directing network development efforts to enable a new generation of applications to fully exploit the capabilities of broadband networks • Working to rapidly transfer new network services and applications to all levels of educational use and to the broader Internet community, both nationally and internationally 2004 Joel Reedy and Shauna Schullo

Internet2 Project • The goals of the Internet2 project include the following: • Enable a new generation of applications • Recreate a leading edge research and education network capability • Transfer new capabilities to the global production Internet • Demonstrate new application that can dramatically enhance researchers’ abilities to collaborate and conduct experiments • Demonstrate enhanced delivery of education and other services by taking advantages of “virtual proximity” created by an advanced communications infrastructure 2004 Joel Reedy and Shauna Schullo

Internet2 Project • Goals continued… • Support development and adoption of advanced applications by providing middleware and development tools • Facilities development, deployment, and operation of an affordable communications infrastructure, capable of supporting differentiated Quality of Service (QOS) based on applications requirements of the research and education community • Promote experimentation with the next generation of communications technologies 2004 Joel Reedy and Shauna Schullo

Internet2 Project • Goals continued… • Coordinate adoption of agreed working standards and common practices among participating institutions to ensure end-to-end quality of service and interoperability • Catalyze partnerships with governmental and private sector organizations • Encourage transfer of technology from Internet2 to the rest of the Internet • Study impact of new infrastructure, services, and applications on higher education and the Internet community 2004 Joel Reedy and Shauna Schullo

Internet2 Project • Perhaps the Internet2 will bring resources of communications technology and networking delivery technology 2004 Joel Reedy and Shauna Schullo

The Evolution of Technology • If the NGI will provide much relief to the problems of bandwidth, thus speeding up data transmission and reducing download time, what technology would interest the e-marketer? • The hardware developers are pursuing compact, mobile, hand-held devices containing wireless transmission similar to a cellular telephone in function and a Palm Pilot-like computer size 2004 Joel Reedy and Shauna Schullo

The Evolution of Technology • An Internet appliance that would serve consumers and businesspeople alike will probably have most of the following features: • Internet-ready connections • Color screen for daylight viewing • Sufficient power for processing • Voice recognition capabilities with pen-touch stylus • Memory for storage of text and graphical documents • Cellular telephone for upload and replication capabilities • Ear and mouth piece, possibly a headset, to eliminate noise, static, and interference 2004 Joel Reedy and Shauna Schullo

The Evolution of Technology • IBM has made a pledge to eliminate the keyboard within five years to facilitate speech-activated technologies • The marketer will gain the capability of sending information to the consumer as the consumer logs on to his PC or Internet appliance via Internet push technology 2004 Joel Reedy and Shauna Schullo

The Expansion in Imaginative Software • E-commerce software of the future will be constructed for one of two purposes: • To provide knowledge and convenience to the individual consumer • To provide knowledge and competitive advantage for the company through business systems 2004 Joel Reedy and Shauna Schullo

The Expansion in Imaginative Software • To attract the consumer, creative and service-oriented Web sites will render information with several platforms: • Entertainment • Humor • Rational information • Factual comparison 2004 Joel Reedy and Shauna Schullo

The Expansion in Imaginative Software • Software applications, the primary building components of Web sites, are expected to be online virtual reality simulations including: • Virtual Reality Modeling Language (VRML) • Three-dimensional graphic tools • Web browsers that can display these “virtual spaces” 2004 Joel Reedy and Shauna Schullo

The Expansion in Imaginative Software • Cyberspace is proving to be a viable place for marketing venues such as industry conferences • Virtual reality technology (VRML) will become increasingly important as Internet-based content is available over cable modems and other inevitable high-speed delivery systems • Software systems for the business-to-business organization will stress interconnectivity, bringing people and functions together over the Internet 2004 Joel Reedy and Shauna Schullo

The Expansion in Imaginative Software • The VRML Web site will be the base for e-commerce • VRML programs will also assist the company in employee training and product sales demonstrations • Portal sites should continue to mature 2004 Joel Reedy and Shauna Schullo

The Success of Internet Acquisitions and Mergers • The late 1990s saw a flurry of interest in Internet properties by investors and Internet competitors that caused a merger and acquisition frenzy • These acquisitions totaled in the multi-billion dollar range, and many investors were uncertain of the true value of Internet business 2004 Joel Reedy and Shauna Schullo

The Persistence in Serving the Customer • Competition will drive marketers to search for competitive advantages • They will leverage the strength of the Internet medium – speed, accuracy, accessibility, personalization, and interactivity to the consumer and will serve marketers in ways unimaginable as they delve into information delivery and applying the same framework as they develop creative promotional programs as well as information dissemination • The marketer will need to be schooled in a new “science” of Internet media habits, a topic dating only from the mid-nineties 2004 Joel Reedy and Shauna Schullo

The Persistence in Serving the Customer • The marketer must give consideration to user-friendly marketing processes • Do things in as few ways as possible • Design systems for a hundred times the possible current load • Move quickly but cautiously on new technology, and don’t jump on the newest and coolest just because it’s new and cool (Investigate technology, but don’t forsake the customer’s best interest) • Put your best people closest to the money even those aren’t typically the highest-paying positions 2004 Joel Reedy and Shauna Schullo

The Persistence in Serving the Customer • Customer concerns will continue • Security remains one of the top reasons Web users report for not purchasing over the Web • Not trusting that my credit card number will be secure (46%) • Not being able to judge the quality of the product (39.3%) • Not trusting that personal information will be kept private (26.9%) • Being able to find the product faster/easier by shopping locally (22.6%) 2004 Joel Reedy and Shauna Schullo

The Persistence in Serving the Customer • Customer concerns continued… • Supporting the notion that the Web has become an important tool to access information • 84% of the users report that they consider access to the Web indispensable, nearly the same percentage as those who feel e-mail is indispensable 2004 Joel Reedy and Shauna Schullo

The Persistence in Serving the Customer • Commerce overconfidence • E-marketing is not the easy way out, only innovative strategy amid the hard work of marketing • E-marketing’s efforts must be integrated among traditional promotional and sales programs to enhance the synergy gained by attentive and sensitive marketing activities 2004 Joel Reedy and Shauna Schullo

Bill Gates’ Twelve New Rules • “The successful companies of the next decade will be the ones that use digital tools to reinvent the way they work.” To make digital information flow as an intrinsic part of your company, here are twelve key ways: • Insist that communication flow through e-mail • Study sales data online to share insights easily • Shift knowledge workers into high-level thinking • Use digital tool to create virtual teams • Convert every paper process into a digital process • Use digital tools to eliminate single-task jobs 2004 Joel Reedy and Shauna Schullo

Bill Gates’ Twelve New Rules • Key ways continued… • Create a digital feedback loop • Use digital systems to route customer complaints immediately • Focus on your most unhappy customer • Use technology to gather rich information on their unhappy experiences with your product and to find out what they want you to put into their product • Use technology to drive the new to the right people in a hurry 2004 Joel Reedy and Shauna Schullo

Bill Gates’ Twelve New Rules • Key ways continued… • Use digital communications to redefine the boundaries • Transform every business process into just-in-time delivery • Use digital delivery to eliminate the middle man • Use digital tools to help customers solve problems for themselves 2004 Joel Reedy and Shauna Schullo

Electronic Marketing