Internet Marketing The Digital World

Topics Being digital Digital environments Digital convergence Making marketing processes digital

Being Digital Something is digital when all of its properties and information are stored as a string of zeros and ones Each zero and each one is called a bit –A bit is a single piece of information –“A bit has no color, size, or weight, and it can travel at the speed of light.” Nicholas Negroponte - MIT Media Lab What does it mean?

Being Digital Digital Benefits for Marketing Three factors make the translation from atoms to bits very powerful –Moore’s law –The ability to create digital environments –Convergence Let’s take a closer look at each factor

To Understand How Moore’s Law Plays Out, Let’s Take A Look At Some Recent Headlines

Moore’s Law Each new generation of chips (released about every 18 months) packs 2x components into the same surface area to create 2x power

Headline Insert excerpts from a current article out of the business press (e.g. Wall Street Journal, Wired News, Business 2.0, or Fast Company) that talks about increasing miniaturization. I usually take excerpts out of the lead paragraph, and highlight keywords. I’ve found articles in the business press on semiconductor innovation at major US research universities, for example, that nicely illustrate Moore’s law. Name of publication - Date

Moore’s Law Makes it Cheap to Substitute Marketing Bits for Marketing Atoms Newsprint Energy Sales Calls Time

Opportunities for Saving Corporate Intranets Software Distribution Online Customer Support User Manuals Net Surveys Where do the savings come from?

Digital Environments Digital environments are –procedural –participatory –spatial –encyclopedic Each of these properties creates opportunities for marketers

Digital Environments Are Procedural Computers are logic engines - they follow rules However, well-programmed computers can create wonderful illusions of intelligence, spontaneity, and attention to detail For example: digital actors can create the illusion of social interaction –Imagine digital actors as hosts on a Wal-Mart Web site –Digital actors can make the online site feel “more like Wal-Mart

Digital Environments Are Participatory Digital environments encourage participation Users input requests and other information Software systems –retrieve relevant information –enable customized responses and experiences

Digital Environments Are Spatial Digital technologies enable the creation of virtual spaces Current connection speeds and bandwidth limit widespread use of virtual spaces for marketing purposes Spatial elements are being used to provide familiarity and comfort to users

Digital Environments Are Encyclopedic Digital information can be stored cheaply So, it’s possible to archive huge amounts of information and make it available –movie databases –online technical help & solutions

Digital Convergence Computing Content Communications Interactive Multimedia Experience

Convergence Computing Content Communi- cations Interactive Multimedia Internet capabilities augment traditional power of mass market media DTV means that Net marketing will grow dramatically Adds Flexibility

Digital Technologies Fundamentally Change Everything

Marketing Processes That Can Be Digitized Understand Markets & Customers Involve Customers in Design Process Market & Sell Products & Services Deliver Value Through Distribution Provide Customer Care Manage Customer Information