1. E-MARKETING 5/E JUDY STRAUSS AND RAYMOND FROST Part I: E-Marketing in Context Chapter 1: Past, Present, and Future ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-1

2. Chapter 1 Objectives  After reading Chapter 1, 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. 1-2 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Dell Starts Listening ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-3  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.

4. Dell Starts Listening, cont. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-4  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?

5. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 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. 1-5

6. Internet 101, cont. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-6  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.

7. E-Marketing is Bigger than the Web ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-7  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.

8. The Web Is One Aspect of E-Marketing ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-8  Exhibit 1.1

9. E-Marketing is Bigger than Technology ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-9  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.

10. Global Internet Users ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-10  Exhibit 1.3

11. E-Marketing’s Past: Web 1.0 ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-11  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.

12. E-Business to Just Business ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-12  Exhibit 1.5

13. E-Marketing Today: Web 2.0 ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-13  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

14. The Future: Web 3.0 ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-14  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.

15. Consumers Have More Control ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-15  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.  New service Akimbo maintains a library of over 10,000 programs with access via the internet, television, or other appliance.

16. Power Shift from Companies to Individuals ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1-16  Exhibit 1.7

17. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 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. 1-17

18. ©2009 Pearson Education, Inc. Publishing as Prentice Hall WiFi at Train Station in France 1-18

19. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 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. 1-19

20. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 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. 1-20

21. ©2009 Pearson Education, Inc. Publishing as Prentice Hall Internet-Time Analogy Ex.1.9 1-21

22. ©2009 Pearson Education, Inc. Publishing as Prentice Hall 22