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E-Marketing 5/E Judy Strauss and Raymond Frost

E-Marketing 5/E Judy Strauss and Raymond Frost. Part I: E-Marketing in Context Chapter 1: Past, Present, and Future. Chapter 1 Objectives. After reading Chapter 1, you will be able to:

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E-Marketing 5/E Judy Strauss and Raymond Frost

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  1. E-Marketing 5/EJudy Strauss and Raymond Frost Part I: E-Marketing in Context Chapter 1: Past, Present, and Future

  2. Chapter 1 Objectives • After reading Chapter 1, you will be able to: • Explain how the internet and information technology advances 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.

  3. Dell Starts Listening • In 2004, Dell held 28.2% of U.S. computer market share. • To reduce costs, Dell Computer began outsourcing customer service to a firm in India. • Market share increased to 28.8% but complaints and consumer dissatisfaction rose. • Dell digital media manager initiated blogs in several languages to improve communication.

  4. Dell Starts Listening, cont. • Dell’s blogs became mechanisms for handling consumer complaints and ideas. • Blog usage resulted in over 20 changes to the company. • What are the opportunities and risks in utilizing blogs for improving customer service?

  5. Internet 101 • The internet is a global network of interconnected networks. • E-mail and data files move over phone lines, cables, and satellites from sender to receiver. • There are two special uses of the internet: • Intranet: network that runs internally in an organization. • Extranet: two joined networks that share information.

  6. Internet 101, cont. • 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 one part of an organization’s e-business activities.

  7. 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.

  8. The Web Is One Aspect of E-Marketing • Exhibit 1.1

  9. E-Marketing is Bigger than Technology • The internet provides individual users with convenient and continuous access to information, entertainment, and communication. • Communities form around shared photos, videos, and online profiles. • The digital environment enhances processes and activities for businesses. • Societies are enhanced through more efficient markets, more jobs, and information access.

  10. Global Internet Users • Exhibit 1.3

  11. 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.

  12. E-Business to Just Business • Exhibit 1.5

  13. E-Marketing Today: Web 2.0 • Web 1.0 connected people to networks. • Web 2.0 connected people with machines and each other. • Web 2.0 is the second generation of internet technology and includes: • Blogs • Social networking • Photo, video, and bookmark sharing

  14. The Future: Web 3.0 • The newest technologies allow marketers to focus on user: • Engagement • Participation • Co-creation • Online gaming represented over $1 billion in revenue and 15 million players in 2006.

  15. Consumers Have More Control • The internet provides a communication platform for individual comments, both positive and negative. • Comments can spread quickly and rapidly. • New technologies such as digital video recorders (DVRs) will increase consumer control. • New service Akimbo maintains a library of over 10,000 programs with access via the internet, television, or other appliance.

  16. Power Shift from Companies to Individuals • Exhibit 1.7

  17. Wireless Networking Increases • Cell phones, PDAs, and laptops connect to the internet via wireless modem worldwide. • Starbucks • Hotels and airports • Queen Mary II luxury liner • Amtrak train stations • Customers will have information, entertainment, and communication when, where, and how they want it.

  18. WiFi at Train Station in France

  19. Appliance Convergence • The receiving appliance is separate from the media type. • Computers can receive digital radio and TV. • TV sets can receive the Web. • New types of “smart” receiving appliances will emerge. • Internet refrigerator is many digital appliances in one. • Global positioning systems (GPS) allow in-car communication and entertainment.

  20. Semantic Web 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.

  21. Internet-Time Analogy Ex.1.9

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