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E-MARKETING/6E
CHAPTER 1
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2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
CHAPTER 1 OBJECTIVES
After reading Chapter 1, you will be able to:
Explain how advances in Internet and information
technology 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.
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1-3THE BARACK OBAMA
CAMPAIGN STORY
Barack Obamas Internet strategy
targeted 18-29 year-old voters
because 93% are online and used the
Internet to get information and
connect with friends.
Facebook displayed over 8 million
Obama friends.
Two-thirds of all campaign funds came
from Obamas online channel.
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1-4 INTERNET 101
The internet is a global network ofinterconnected networks.
E-mail and data files move over phone
lines, cables and satellites. There are three types of access to the
Internet: Public internet
Intranet: network that runsinternally in an organization.
Extranet: two joined networks thatshare information.
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1-5E-BUSINESS, E-COMMERCE,
E-MARKETING
E-business is the continuous
optimization of a firms business
activities through digital technology.
E-commerce is the subset of e-
business focused on transactions.
E-marketing is the result of
information technology applied to
traditional marketing.
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E-BUSINESS, E-COMMERCE,
E-MARKETING
Effects traditional marketing in 2 ways:
Increases effficiency and effectiveness in
traditional marketing functions
Transformation of many marketing strategies
through the use of technology
Results in new business models, examplethrough the use of Facebook, Twitter etc.
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HALL
1-7E-MARKETING IS BIGGER
THANTHE WEB
The web is the portion of the Internet thatsupports a graphical user interface forhypertext navigation with a browser
The web is what most people think aboutwhen they think of the Internet.
Electronic marketing reaches far beyond theweb sofware and hadware used for CRM,
SCM and EDI dont rely on the internet.
Non-web communications are also effectivefor marketing puposes- text messaging,email, internet telephony.
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1-8THE WEB IS ONLY ONE
ASPECTOF E-MARKETING
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1-9E-MARKETING IS BIGGER
THAN TECHNOLOGY
The Internet provides individual users with
convenient and continuous access to information (product reviews, search engines etc.)
entertainment (music, movies etc), and
communication (chat, e-mails etc).
Communities form around shared photos (Flickr),
videos (YouTube), and
individual or company profiles (Facebook).
Auctions in consumer and business markets Filesharing Google Docs, Dropbox.
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E-MARKETING IS BIGGER
THAN TECHNOLOGY
The digital environment enhances processes
and activities for businesses.
Cross-functional teams from around the world
Human resource recruitment and financial
information flow
Societies and economies are enhanced
through more efficient markets, more jobs,
and information access.
Remote societies accessing to legal ,health advice
Work at home convenience2012 PEARSON EDUCATION, INC.
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1-11 GLOBAL INTERNET USERS
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INTERNETUSERSINTHE WORLD
1995-2010
2009 Pearson Education, Inc. Publishing as Prentice Hall
12
Jun, 2011
2,110 millions
30.4 %
Internet World Stats
http://www.internetworldstats.com/stats.htmhttp://www.internetworldstats.com/stats.htm7/31/2019 Strauss Emktg6 Ppt01 Mod
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WORLDS TOP 20 INTERNET
USERS(2010)
2009 Pearson Education, Inc. Publishing as
Prentice Hall
13
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1-14E-MARKETINGS 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 goldrush.
Between 2000 and 2002, more than 500 Internetfirms shut down in the U.S.
By Q4 2003, almost 60% of public dot-coms wereprofitable.
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1-15
INTERNET TIMELINE
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1-16THEEDROPSFROM
E-MARKETING
Gartner predicted that the e would drop,
making e-business just business and e-
marketing just marketing.
Nevertheless, e-business will always have
its unique models, concepts, and practices.
Online search
Online data collection
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1-17 E-BUSINESS JUST BUSINESS?
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WEB 2.0
Netlingo The components of Web 2.0 sites (the
popularity of blogs and social networking sites)
exist because of the ability to offer mini home
pages, a gig of storage, your own email, music
player and photo, video and bookmark
sharing all of which are initially first
generation technologies.
Marketers create products that capitalize on the
Web 2.0 technologies
Web 1.0 connected people to computers
Web 2.0 connected people to computers and
other people in social networks2012 PEARSON EDUCATION, INC.
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1-19E-MARKETING TODAY:
WEB 2.0
Web 2.0 technologies connect people with each
other through social media, which have created
opportunities and challenges for marketers.
Power shift from sellers to buyers. Consumers trust each other more than
companies.
Market and media fragmentation cable tv,
special interest magazines. Now addressingneeds of smaller groups.
Online connections are critical
Customers now more sophisticated and
thus more demanding
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1-20POWER SHIFT FROM
COMPANIES TO INDIVIDUALS
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INBOUND MARKETING
Customers have moved. No longer reachable in
significant numbers through traditional media.
Customers fed up with interruptions to their daily
activities. Television commercial skipping ever
growing.
Inbound marketing customers found online;
mainly from social websites. Growth through
referrals via social media websites.
Customer engagementcustomer participation
in activities and making customers more
attentive and be for favorable towards the brand.2012 PEARSON EDUCATION, INC.
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1-22ACQUIRINGA CUSTOMER
FROM SOCIAL MEDIA
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2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 23
OTHER OPPORTUNITIES AND
CHALLENGES IN WEB 2.0
Internet adoption maturesneed to find new ways to get thecustomers attention
Online retail sales reach 4% of allsalesthus competition very
keen for online buyers.
Search engines are nowreputation enginesnow a keypart of the online marketersbudget.
Content is still kingagile and
flexible in responding toconsumer generated media.Essential to have relevant andinteresting content.
Improved online and offlinestrategy integrationwebsite,outlets, catalogue
Intellectual capital rulesmorecritical than financial capital
60% broadband adoption athomeentertainment ondemand; self uploading ofpreferred videos and movies
The long tailselling smallquantities of large no. of
products
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1-24WI-FIAT TRAIN STATION
IN FRANCE AND EVERYWHERE
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1-25 THE FUTURE: WEB 3.0
Lines between traditional and new media are
blurring.
Appliances are converging and becoming
smart.
Wireless networking is increasing.
Semantic web will provide worldwide access
to data on demand without effort.
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WEB 3.0
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.
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1-27HOWDOEXPERTS
CHARACTERIZE WEB 3.0?
Semantic web will be achieved and the mobile
device will be the primary Internet connection tool
by 2020 (Pew study).
Interactive media will cannibalize traditional media(Forrester Research).
Web 3.0 will ultimately be seen as applications
which are pieced togetherrun on any deviceare
very fastare distributed virtually (Eric Schmidt ofGoogle).
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1-28 INTERNET-TIME ANALOGY