E-Marketing with excerpts from Judy Strauss and Raymond Frost E-Marketing in Context Past, Present, and Future

Objectives After reading this slideshow, 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.

Social Media Revolution Movie http://www.youtube.com/watch?v=lFZ0z5Fm- Ng&feature=related Write down three points presented in the movie that surprised you the most!

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.

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?

Blogs... More harm than good? More good than harm?

Marketing Landscape ...has not changed; companies must still meet customers’ needs ...must be able to face instant communication and feedback – both negative and positive What works in an era of “e”... Integration of traditional and e-marketing creating seamless strategies and tactics E-commerce, Advertising online, Search engine advertising, User-generated content, Online communities, Personalization, Internet communications, Mobile Internet access, Local marketing, Online aggregators

Activity Please turn to the person beside you You want to buy a new home theatre (we’ll do this together) a new car, or want to make travel plans to tour a far- off country Suggest the online resources you may use to help you make a decision Points-of-purchase; Manufacturers; Advice; Reviews, Comparisons… Blogs? Communities? Something else?

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.

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.

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. Many eMarketing technologies exist that predate the Web eMail and newsgroups The Web is what most people think about when they think of the Internet.

The Web Is One Aspect of E-Marketing Exhibit 1

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.

Global Internet Users Exhibit 2

Consider... The Web was developed at the European Particle Physics Center (CERN) in Geneva. 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 program called “Mosaic”, which was a GUI allowing Web pages to use pictures and include links to audio and video. In 1994, Netscape was started by some of Mosaic’s developers and over the next few years became the most popular Web browser.

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.

E-Business to Just Business Exhibit 3 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Watch this http://www.youtube.com/watch?v=rcfNC_x0VvE Have you heard of any new, potential technologies that will enhance marketing and communication in the near or far future? What trends in what industries do you see as changing because of the web.

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

Watch this http://www.youtube.com/watch?v=ddO9idmax0o&e url=http://www.mindmuze.com/blog/2009/01/04 /looking-for-learning-in-strange- places/&feature=player_embedded What real-world phenomena does the movie see Twitter as facilitating? Is it the “real world”? Then this: http://www.youtube.com/watch?v=PN2HAroA12w&f eature=fvst

eMarketing Today Strengths Research resource for buyers, sellers and learners Elevates and extends strong brands Cost-effective for customer self-service Allows unprecedented one-to-one communications and dynamic personalization Opens the market to new groups of customers Unlimited real estate on the Web Allows for profitable strategic business alliances Offers unique ways to present information

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. What is a current estimate for the number of users playing World of Warcrack Warcraft? How much does each of them pay? What are recent trends in gaming?

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. Where else have users/consumers increased control? Do you think user control is a good thing?

Power Shift from Companies to Individuals Exhibit 4 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Additional changes... Fragmentation of markets Death of distance Time compression Knowledge management

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.

WiFi at Train Station in France

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. What is the buzz-word for all these devices and systems joining together?

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. Semantic = meaning (of information) Facilitated by metadata

Activity Turn to the person beside you... Can you remember a time when you had dial-up access in your home? What has high speed access in your home meant for marketers? Why?

What will characterize Web 3.0? My prediction would be that Web 3.0 will ultimately be seen as applications which are pieced together. There are a number of characteristics: the applications are relatively small, the data is in the cloud, the applications can run on any device, PC or mobile phone, the applications are very fast and they’re very customizable. Futhermore, the applications are distributed virtually: literally by social networks, by email. You won’t go the store and purchase them. That’s a very different application model than we’ve ever seen in computing. -Eric Schmidt, CEO Google

Summary What is the Internet? What is eMarketing? Why do we care about buyer control? Why should we be thinking of our refrigerator when we think of the Internet?