Marketing Chapter 1 Homework Html Other Standards Iii Extranet Two

Chapter 1:

Past, Present, and Future

Learning Objectives

E-Marketing Landscape

What works?

The rapid growth of the Web, the subsequent bursting of the dot-com

Internet 101

The Internet is a global network of interconnected networks. Three

important types of networks form part of the Internet: Public Internet,

Intranet, and Extranet.

E-Marketing is Bigger than the Web

E-Marketing’s Past: Web 1.0

In early years, new start-ups and well-established businesses created a Web

presence in hopes of attracting huge sales and market share, but very few were

successful. Between 2000 and 2002, more than 500 Internet firms shut down in

the United States alone. Despite this early failure, traditional brick-and-mortar

retailers noted that Internet technologies had fundamentally changed the structure

of theirs and several other industries. In the online world, marketers want to know

which specific technologies will result in top line sales and bottom line

profitability.

The “E” Drops from E-Marketing

Marketing Implications of Internet Technologies

E-Marketing Today: Web 2.0

The unique properties and strengths of Internet technologies provided a

springboard from the first to the second generation (Web 2.0), and will allow

marketers and their markets create the hot new products that capitalize on Web

2.0 technologies.

Information technology, the Internet in particular, has brought about profound

changes in today’s marketing practices. These changes have made traditional

The Future: Web 3.0

The combination of increased and renewed confidence in e-marketing strategies

and higher bandwidth connections have returned profitability in Internet

marketing and returned profitability. Because of this increased confidence and

return to profitability, many believe that other industries are ripe for restructuring.

Semantic Web

Invented by Tim Berners-Lee, the Semantic Web is an extension of the

Stepping Stones to Web 3.0

Chapter Summary

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 the marketing activity, set of institutions, and

processes for creating, communicating, delivering, and exchanging offerings that

have value for customers, clients, partners, and society at large. It is the

application of information technology to traditional marketing practices.

The dynamic e-marketing environment offers opportunities to develop

new products, new strategies and tactics, new markets, new media, and new

channels. Individual buyers have more power because of the television remote

The internet consists of computers with data, users who send and receive

the data files on a myriad of receiving appliances, and technology infrastructure to

move, create, and view or listen to the content. An intranet is a network that runs

internally in a corporation using internet standards. An extranet is an intranet to

which proprietary networks are joined for the purpose of sharing information. The

Web is the part of the internet that supports a graphical user interface for

hypertext navigation with a browser. The internet’s properties allow for a more

effective and efficient marketing strategy and tactical implementation and are

The internet has evolved from Web 1.0 (content creator makes a Web

page and the content consumer views it) to Web 2.0 (every user is both content

creator and consumer and they share with one another), and to the future Web 3.0

(individual data presented and shared as desired).

Web 3.0 will be a time of continued receiving-appliance convergence,

merging of traditional and social media, increased wireless networking, wearable

internet devices, big data, and cloud computing. As well, the semantic Web will

change the marketing landscape. It is essential for marketers to realize that

Chapter Outline

Opening Vignette: The Barack Obama Campaign Story

Have the class read the opening vignette on Barack Obama’s 2008 and 2012

presidential campaigns. Discuss with the class the impacts that online marketing

and SMS marketing have made on the political landscape and the business world

in general. Will e-marketing and SMS marketing continue to be used in the

political field? Why or why not?

Go to Google and simply search “SMS Marketing” and look at the number of

hits. What impact will SMS Marketing have on traditional (TV, print, radio)

advertising?

I. E-Marketing Landscape

The Marketing landscape has not changed. Companies must still meet customers’

needs, and face instant communication and feedback be it positive or negative.

A. What works?

2. Profitable strategy categories can include:

i. The customer is CEO

ii. E-Commerce

iii. Advertising online

iv. Search engine marketing

v. Owner, paid, and earned media

vi. Mobile marketing

B. Internet 101

1. The Internet is a worldwide connection of millions of

computers that use the Internet Protocol to communicate. This

data can be moved over phone lines, cables, and satellites. The

Internet has three technical roles:

i. Content providers create information, entertainment,

etc. that resides on computers with network access.

content (hardware and software)

2. Three types of networks form the Internet

i. Public Internet – accessible by anyone, anywhere,

anytime

3. E-business

i. Defined as the continuous optimization of a company’s

4. E-commerce

5. E-marketing

i. The use of information technology for marketing

activities

C. E-Marketing is Bigger than the Web

1. E-marketing technologies exist without the Web

i. Mobile apps

2. Non-web Internet communications are effective marketing

3. The Internet delivers information to more receiving items other

than PCs.

4. Offline electronic data collection devices such as bar code

1. We are focusing on the union of marketing and technology, but

an overview of the big picture helps one understand e-

marketing’s impact.

i. Individuals – if information is power, individuals have

more power than ever before. Consumers use the

Internet to compare prices and products, watch movies

and download songs, and enables on-to-one

communication through several services.

iii. Businesses – Technology assists in every aspect of the

business world, from filing required government

statements to recruitment and training of new

employees.

iv. Societies – Digital information enhances economies

several different ways, but the impact is not evenly

distributed across the globe. The top 10 nations account

The Web was developed at the European Particle Physics Center (CERN) in

Geneva, Switzerland. The original purpose of the Web was to enable researchers

all over the world to collaborate on the same documents without needing to

travel. When the World Wide Web was released in 1991, it was purely text-based.

In 1993, the National Center for Supercomputer Applications (NCSA) released a

Spam is a term for unwanted messages posted to newsgroups or sent through

email. The term “spam” can be used as a verb or a noun. As of January of 2010,

II. E-Marketing’s Past: Web 1.0

Arpanet started in 1969 by the US Department of Defense. The first webpages and

browsers appeared in 1993. The boom and bust of the first generation of e-

businesses was similar to a gold rush. Companies saw large sales and gained

market share, but only a few showed any profits. A majority of firms had

explosive sales growths, but very few had any success in the bottom line. In just

under two years between 2000 and 2002, over 500 Internet firms shut down in the

United States alone. Online companies have changed the structure of several

industries, but marketers have returned to relying on well-grounded strategies

and sound marketing practices.

. A. The “E” Drops From E–Marketing

1. Contradicting views

a. Some say that E-business has become just business.

2. Most marketing processes remain the same, but technology has

given them a new twist.

It is interesting to note the story about the battle of the online Schwab and the

offline Schwab. The online company was allowed to cannibalize the offline

company simply because it was more profitable. The online company,

e.Schwab.com, produced lower prices, incorporated successful e-marketing

strategies, and produced faster growing accounts and assets. For Schwab, e-

business is just business.

B. Marketing Implications of Internet technologies – there are basic

properties that give Internet technology the ability to transform

marketing activities.

1. Bits not atoms

3. Global reach

5. Time moderator

7. Scalable capacity

9. Market deconstruction

10. Task automation

C. Opportunities abound because of:

1. Lower costs

3. Global reach

5. One-to-one marketing

7. Better conversion rates (increased purchases)

8. 24-hour marketing

“Information overload” is a term made more popular by the advent of the

Internet. The fact that anyone with Internet capabilities can access thousands of

III. E-Marketing Today: Web 2.0

Web 2.0 has moved from human-to-computer interaction to human-to-human

interaction. Social media are web pages allowing social networking and are

primarily authored by users.

A. Power Shift from Sellers to Buyers

2. Market and media fragmentation

4. Everyone is a content producer

6. Social commerce

B. Customer Engagement

2. Crowdsourcing is one way to engage online users

C. Content Marketing

2. Marketers are beginning to see themselves as publishers

D. Inbound Marketing

1. Getting “found” online rather than interrupting family activities

E. New Technologies

1. Wireless networking and mobile computing

F. Appliance Convergence

1. A receiving appliance is not the same as the media type.

a. Computers can receive digital radio and television

2. Appliances like the LG internet refrigerator are many

appliances in one:

a. Television

G. Exciting New Technology-Based Strategies

2. Voice navigation

H. Other Opportunities and Challenges in Web 2.0

1. Internet adoption matures

3. Search engines are now reputation engines

5. Improved online and offline strategy integration

7. Decline of print media

9. Location-based services

10. The long tail

III. The Future: Web 3.0

A. Semantic Web

2. Invented by WWW co-inventor Tim Berners-Lee

4. Examples: a person, contact information, next available

appointments, or restaurant menus

B. Stepping Stones to Web 3.0

1. Web 3.0 will probably feature higher bandwidth, faster connection

speeds, artificial intelligence, and seamless social networking

2. Predictions include wearable computing, 3D printing, big data,

Google Wallet, and cloud computing

3. Key technologies that affect marketing strategies include:

i. Any channel, any device, anywhere – Bring your own

everything

ii. Smarter things

iii. Big data and global scale computing at small prices