INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES

2. INTERNET MARKETING:INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 1 Internet Marketing Enters the Mainstream ! Is

3. THE INTERNET IS CHANGING THE WAYWE LIVE AND WORK In What Ways?

4. INTERNET PERVASIVE

5. INTERNET PERVASIVE, NOT PREDICTIBLE http://www.pewinternet.org/Infographics/Generational-differences-in-online-activities.aspx

6. HUGE CHANGES http://www.online-publishers.org/

7. VARIETY OF CONTENT– B2B as well as B2C http://www-01.ibm.com/software/info/television/index.jsp

8. NON-PROFITS, GOVT. OFTEN LAG http://www.nature.org/activities/features/

9. MEDIA USE CHANGING

10. Newspaper Readership Declining Since 1990sTV Still Dominant News Source (Pew) Usage Patterns Differ by Age— Why? http://www.marketingcharts.com/television/internet-plays-larger-news-role-but-tv-still-dominates-5744/

11. EVOLUTION OF THE INTERNETSlow Growth from 1957 Through 1990 • 1950s: The Cold War spawns the ARPAnet • 1960s and 70s: Slow growth—limited to scientists and researchers around the world • 1980s: TCP/IP; National Science Foundation operated the backbone, banned commercial traffic

12. EVOLUTION OF THE INTERNET1990s Through Present: Boom to Bust to Stable Growth • 1991: Gopher and HTML • 1993: Mosiac • 1995: Yahoo! • Throughout the 1990s: Venture Capital Dollars Chasing Untried Business Models • 2000 and 2001: Business Failures and Disappearance of Market and Venture Capital • 2004 On: Rapid Growth in Users, Content, and Sales (B2C and B2B); Emergence of New Players Like Google

13. CONTINUED EVOLUTION – WEB 2.0 • The Web As Common Platform • Collaborative Knowledge Creation, Sharing • Links, Mashups, Blogs, Podcasts, Social Networks And Many Others • Rich User Experiences • New Segments Emerging • eg. , Age, BEHAVIORAL • Marketing As Conversation

14. SOCIAL MEDIA STRATEGY Recent Model – Sloan Center for IR, UCal Riverside LISTEN > EXPERIMENT > APPLY > DEVELOP Importance of Integrated Marketing

15. SOCIAL MEDIA – THE FUTURE http://www.destinationcrm.com/Articles/CRM-News/Daily-News/Social-Media-The-Five-Year-Forecast-53635.aspx

16. HOW ONCE-MIGHTY HAVE FALLEN

17. SABRE From An Efficient Internal System To A Successful Information Product • 1950s and 60s - Used to Support American Airlines Operations • 1970s - Deployed Into Travel Agencies • 1980s - Customers Allowed Network Access • 1990s - Travelocity and GetThere • 2000 - Spun Off As Independent Company

18. Consumers Use The Internet For Many Reasons. The Primary Ones Are Communication Information

19. HOW ARE TRADITIONAL BUSINESSES USING THE INTERNET?

20. MARKETERS TRY TO FOLLOW AUDIENCES

21. AND USE MOST EFFICIENT MEDIA IN ECONOMIC DOWNTURN http://www.marketingcharts.com/interactive/marketers-top-10-wish-list-for-agencies-of-the-future-5904/sapient-marketers-digital-channel-use-now-futurejpg/

22. INTERACTIVE, SOCIAL LEADING WAY • The 66% who used social media this year represents an increase over 2007 survey results, which revealed that only 20% of marketers were using social media and 25% were employing viral videos two years ago. • Despite the interest in blogs, mobile and social media, however, the newer media platforms that will get the most spending in 2009 are still the ones that are more established: • Own website (26%) • Search engine marketing (19%) • Online ads, including banners, etc. (17%) http://ana.blogs.com/liodice/ http://www.marketingcharts.com/interactive/new-media-hits-mainstream-tried-and-true-still-works-best-10087/

23. Internet Marketing Is Increasing Because It Can Be Precisely Targeted Cost is Low Relative To Other Channels It Is Measurable And Can Be Held Accountable For ROPI

24. Internet Marketing Is Only One Part Of The Marketing Communications Mix. It Rarely Works Well In Isolation From Other Communications Channels. The Question Is WHAT ROLE SHOULD THE INTERNET PLAY IN THE MARCOM STRATEGY?

25. UNIQUE CHARACTERISTICS/BENEFITS • Common Platform • Perfect Information • Global • Interactive • Distance Is No Longer Relevant • Size Is Relevant To Brand Strength and Resources • Always On • Many-to-Many • Location Is Becoming Irrelevant

26. EFFECT ON BUSINESS PROCESSES • Cost • Quality • Customer Access/Community • Choice • Collaboration

27. TRANSFORMATIONAL CHANGE The Overall Effect of the Unique Characteristics of the Internetis anImportant Shift of Power/ControlTO THE CUSTOMER.

28. THE INTERNET MARKETING PARADIGM

29. THE GENERIC OBJECTIVES • Customer Acquisition • Customer Conversion • Customer Retention • Customer Value Growth

30. THE MARKETING INPUTS • Internet Business Models • Interactive Channels • Websites, Email, Wireless, Misc. • Offline Channels • Mass Media, Events, Sponsorships, PR • Social and Regulatory Issues

31. THE MARKETING ACTIONS • Advertising and Promotion • Direct Response • Brand Development • E-Commerce • Customer Service and Support

32. INTERNET INFRASTRUCTURE STACK

33. INCREASED PRODUCTIVITY Power of the Network Increases Geometrically With Each New Connection Metcalfe’s Law Moore’sLaw Computing Power Doubles; Cost is Cut in Half

34. STRATEGIC DRIVERS OF THE INTERNET ECONOMY • Information Gives Greatest Value Added • Distance No Longer Matters • Speed Is Of The Essence • People Are The Key Assets • Growth Is Accelerated By The Network • Marketers Can Deal with Customers 1 to 1 • Demand Can Be Predicted More Accurately • Transaction & Coordination Costs Decrease • Customers Have Power • Information Economy Characterized by Choice, Abundance

35. SUMMARY • Growth and Innovation Continue • Businesses are Taking Advantage of the Unique Characteristics of the Internet • Key Marketing Objectives • Customer Acquisition, Conversion Retention, Value Growth • Complex Technological Infrastructure • Strategic Drivers Of The New Information-Driven Economy • Internet Has Re-Written Many Economic Rules-BUT • Good Business Processes Essential • Profitability/ROI Required • Integral Part of Marketing Activities • Traditional/New Economy • Large/Small • Global/National/and increasingly Local