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E-Marketing/7E Chapter 1

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1 E-Marketing/7E Chapter 1
Past, Present, and Future

2 Heidelberg Declaration of 1543
That I with body and soul, both in life and death, am not my own, but belong unto my faithful Savior Jesus Christ; who, with his precious blood, has fully satisfied for all my sins, and delivered me from all the power of the devil; and so preserves me that without the will of my heavenly Father, not a hair can fall from my head; yea, that all things must be subservient to my salvation, and therefore, by his Holy Spirit, He also assures me of eternal life, and makes me sincerely willing and ready, henceforth, to live unto him.

3 The Barack Obama Campaign Story
President Obama made history by his use of e-marketing to win the 2008 election. Obama’s internet strategies targeted year-old voters because 93% are online. His 2012 efforts added higher levels of sophistication, including the use of social media and mobile marketing. Facebook displayed over 33 million “likes.” The Obama YouTube channel had over 286,000 subscribers and 288 million upload views. ©2014 Pearson Education, Inc. publishing as Prentice Hall

4 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Q. 1. Define Internet. ©2014 Pearson Education, Inc. publishing as Prentice Hall

5 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Internet The internet is a global network of interconnected networks. Data move over phone lines, cables and satellites. ©2014 Pearson Education, Inc. publishing as Prentice Hall

6 History of the Internet
1957 – ARPA/DARPA 1970 – ALOHANet 1980 – HOSTS CREATED 1962 – ARPANET 1971 – 1990 – HOSTS >100,000 1969 – UCLA & STANFORD 1973 – UCLA-LONDON-NORWAY 1991 – HTML

7 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Q. 2. Define E-business. ©2014 Pearson Education, Inc. publishing as Prentice Hall

8 ©2014 Pearson Education, Inc. publishing as Prentice Hall
E-business E-business is the continuous optimization of a company’s business activities using digital technology. ©2014 Pearson Education, Inc. publishing as Prentice Hall

9 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Q. 3. Define E-commerce. ©2014 Pearson Education, Inc. publishing as Prentice Hall

10 ©2014 Pearson Education, Inc. publishing as Prentice Hall
E-commerce E-commerce is the subset of e-business focused on transactions. ©2014 Pearson Education, Inc. publishing as Prentice Hall

11 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Q. 4. Define E-marketing. ©2014 Pearson Education, Inc. publishing as Prentice Hall

12 ©2014 Pearson Education, Inc. publishing as Prentice Hall
E-marketing E-marketing is the result of information technology applied to traditional marketing. ©2014 Pearson Education, Inc. publishing as Prentice Hall

13 Q. 5. What are the features of today’s Internet Climate?
©2014 Pearson Education, Inc. publishing as Prentice Hall

14 Today’s Internet Climate (1 of 2)
E-commerce Advertising online Search Engine Marketing (SEM) User-generated content Single common platform Global in scope Level playing field Online communities Personalization ©2014 Pearson Education, Inc. publishing as Prentice Hall

15 Today’s Internet Climate (2 of 2)
Internet communications Mobile internet access Local marketing Marketer transparency Infrastructure processing Metrics rule Always-on Many-to-many communications network ©2014 Pearson Education, Inc. publishing as Prentice Hall

16 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. Electronic marketing reaches far beyond the Web. ©2014 Pearson Education, Inc. publishing as Prentice Hall

17 The Web Is Only One Aspect of E-Marketing
©2014 Pearson Education, Inc. publishing as Prentice Hall

18 E-Marketing Is Bigger than Technology
Individuals: The internet provides individual users with convenient and continuous access to information, entertainment, networking, and communication. Communities form around shared photos (Flickr), videos (YouTube), and individual or company profiles (Facebook). Businesses: The digital environment enhances processes and activities for businesses. Societies and economies are enhanced through more efficient markets, more jobs, information access, communication globalization, and more. ©2014 Pearson Education, Inc. publishing as Prentice Hall

19 Global Internet Users ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

20 Internet Communities in 2012
©2014 Pearson Education, Inc. publishing as Prentice Hall

21 Q. 6. Discuss the internet infrastructure stack.
©2014 Pearson Education, Inc. publishing as Prentice Hall

22 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Infrastructure Stack Telecommunications Website hosting Internet hardware and software Website operations Managed/Applications service providers ©2014 Pearson Education, Inc. publishing as Prentice Hall

23 Infrastructure Stack - Example
COMCAST TNU HD DAILY RUNNING McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc. All rights reserved.

24 Q. 7. What are the three types of access to the internet?
©2014 Pearson Education, Inc. publishing as Prentice Hall

25 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Access to the Internet Public internet Intranet: network that runs internally in an organization Extranet: two or more joined networks that share information ©2014 Pearson Education, Inc. publishing as Prentice Hall

26 Q. 8. Describe the age of E-marketing.
©2014 Pearson Education, Inc. publishing as Prentice Hall

27 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. Companies quickly attracted sales and market share, but negative profits. 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. ©2014 Pearson Education, Inc. publishing as Prentice Hall

28 E-Marketing’s Past: Web 1.0
Lower costs Measurable results Global reach Personalization One-to-ne marketing Better conversion rates Twenty-four-hour marketing ©2014 Pearson Education, Inc. publishing as Prentice Hall

29 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Internet Timeline ©2014 Pearson Education, Inc. publishing as Prentice Hall

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2001 Garner Hype Cycle ©2014 Pearson Education, Inc. publishing as Prentice Hall

31 The E Drops from 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. The e-marketing landscape is changing rapidly due to consumer-generated content, mobile internet access, social media and disruptive technologies. ©2014 Pearson Education, Inc. publishing as Prentice Hall

32 E-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. Inbound Marketing. Customer engagement Social media metrics ©2014 Pearson Education, Inc. publishing as Prentice Hall

33 Power Shift From Companies To Individuals
©2014 Pearson Education, Inc. publishing as Prentice Hall

34 ©2014 Pearson Education, Inc. publishing as Prentice Hall
New Technologies Wireless networking and mobile computing. 4G is a fourth-generation high speed wireless technology. Appliance convergence. LG internet refrigerator is many digital appliances in one. Voice navigation. ©2014 Pearson Education, Inc. publishing as Prentice Hall

35 ©2014 Pearson Education, Inc. publishing as Prentice Hall
The Future: Web 3.0 Sir Tim Berners-Lee, coinventor of the World Wide Web, has been working on technology to organize online data for greater user convenience, i.e., the semantic Web. Users can easily find information based on its type. The value of the semantic Web is information on demand. Experts believe the semantic Web will become a reality over the next decade. ©2014 Pearson Education, Inc. publishing as Prentice Hall

36 ©2014 Pearson Education, Inc. publishing as Prentice Hall
The Future: Web 3.0 Appliance convergence Loss of distinction Increase of wireless networking Semantic web ©2014 Pearson Education, Inc. publishing as Prentice Hall

37 Evolution from Web 1.0 to Web 3.0
Semantic Web agent @ Content creator (cc) Consumer (c) cc & c ©2014 Pearson Education, Inc. publishing as Prentice Hall

38 Q. 9. What are the opportunities and challenges of Web 2.0?
©2014 Pearson Education, Inc. publishing as Prentice Hall

39 Other Opportunities And Challenges In Web 2.0
Internet adoption matures. Online retail sales matures. Search engines are now reputation engines. Content is still King. Improved online and offline strategy integration. Intellectual capital rules. High broadband adoption at home The long tail. ©2014 Pearson Education, Inc. publishing as Prentice Hall

40 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Stepping Stones to Web 3.0 Higher bandwidth Faster connection speeds Artificial intelligence Seamless social networking Modular Web applications ©2014 Pearson Education, Inc. publishing as Prentice Hall

41 Q. 10. What are the 10 driving principles of the new internet economy?
©2014 Pearson Education, Inc. publishing as Prentice Hall

42 ©2014 Pearson Education, Inc. publishing as Prentice Hall
Driving principles Information equals value Distance no longer matters Speed is the essence of internet business People are the key assets of internet businesses Growth rates are based on network nature of businesses Value in a network rises exponentially with market share Market power is determined by skill in managing information Dramatic shift in the direction of customers Customization Era of instant gratification is upon us. ©2014 Pearson Education, Inc. publishing as Prentice Hall


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