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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

Chapter 1 Objectives
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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.

2009 Pearson Education, Inc. Publishing as Prentice Hall

Dell Starts Listening

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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Dell Starts Listening, cont.

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Dells 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?

2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet 101
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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet 101, cont.

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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 one part of an organizations e-business activities.

2009 Pearson Education, Inc. Publishing as Prentice Hall

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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.

2009 Pearson Education, Inc. Publishing as Prentice Hall

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The Web Is One Aspect of EMarketing

Exhibit 1.1

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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Global Internet Users

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Exhibit 1.3

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E-Marketings Past: Web 1.0

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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Business to Just Business

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Exhibit 1.5

2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Marketing Today: Web 2.0

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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

2009 Pearson Education, Inc. Publishing as Prentice Hall

The Future: Web 3.0

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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.

2009 Pearson Education, Inc. Publishing as Prentice Hall

Consumers Have More Control

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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Power Shift from Companies to Individuals

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Exhibit 1.7

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Wireless Networking Increases

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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

WiFi at Train Station in France

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Appliance Convergence
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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Semantic Web
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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.
2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet-Time Analogy Ex.1.9

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

2009 Pearson Education, Inc. Publishing as Prentice Hall