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E Marketing Ch1 Convergence


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Strauss E-marketing Chapter 1 Convergence

Strauss E-marketing Chapter 1 Convergence

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  • 1. E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 1: Convergence
  • 2. Chapter 1 Objectives
    • After reading Chapter 1 you will be able to:
      • Explain how the Internet and information technology offers benefits and challenges to consumers, businesses, marketers, and society.
      • Distinguish between e-business and e-marketing.
      • Describe the Internet and the use of intranets, extranets and the Web.
  • 3. Chapter 1 Objectives, cont.
      • Explain how increasing buyer control is changing the marketing landscape.
      • Understand the distinction between information or entertainment as data, and the information receiving appliance used to view or hear it.
  • 4. The Music Industry
    • File sharing programs, such as KaZaA, enable consumers to illegally download music.
    • The Recording Industry Association of America has sued over 400 consumers for piracy.
    • 14% U.S. consumers still download illegal files
    • CD sales plunged to $13 million in 1999; $10.6 billion in 2003
    • Apple Computer introduced iTunes at .99 each.
  • 5. What will happen to the music industry?
    • The actual cost of producing a CD is $10.17.
    • Only $1.29 goes to the artist.
    • Online distribution makes sense.
    • What do you think will happen to the music industry?
    • What do you think will happen to the movie industry?
  • 6. E-marketing Defined
    • The use of information technology
      • to create, communicate, and deliver value to customers.
      • for managing customer relationships to benefit the organization.
    • The result of information technology applied to traditional marketing.
  • 7. E-Business, E-Commerce, and E-Marketing
    • 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.
  • 8. The Internet
    • A global network of interconnected networks.
    • E-mail and data files move over phone lines, cables and satellites.
    • Three types of networks form part of the Internet:
      • Intranet: network that runs internally in an organization.
      • Extranet: two joined networks that share information.
      • Web: how most people refer to the Internet.
  • 9. The Web Is One Aspect of E-Marketing E-mail Internet UPC Scanner PDA Cell Phone Web PC Television Refrigerator Database Automobile
  • 10. Past, Present, and Future
    • The first generation of e-business was like a gold rush.
    • From 2000-2002, over 500 Internet firms shut down in the U.S.
    • Almost 60% of dot-coms were profitable in the fourth quarter of 2003.
    • Today, the Internet is mainstream in industrialized nations.
      • 20 nations comprise 90% of all Internet users.
  • 11. E-Business Recovery Is Sweet
  • 12. E-Marketing Today
    • Power shift from sellers to buyers
    • Marketing fragmentation: mass market to one customer
    • Death of distance
    • Time compression
    • Knowledge/database management is key
    • Marketing and technology: an interdisciplinary focus
    • Intellectual capital is important resource
  • 13. Consumer Control
    • New technologies such as personal video recorders (PVRs) and Akimo will increase consumer control.
      • Convergence of television, radio, print, etc.
      • Customer-controlled entertainment, and shopping on demand.
  • 14. Improved Internet Strategy Integration
    • Organizations will integrate information technology seamlessly into marketing strategy.
      • Multichannel marketing: Web site, retail store, and catalog
      • Integration of inventory databases
      • Integration of customer service across channels
  • 15. Refined Metrics
    • Internet provides great deal of data, not all of which is very useful.
    • Tracking customer acquisition cost (CAC) and other key metrics is a critical marketing function still in its infancy.
    • Future metrics will provide better measures of performance, return on investment, etc.
  • 16. 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.
  • 17. WiFi at Train Station in France
  • 18. 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 position systems (GPS) allow in-car communication and entertainment.
  • 19. 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.
  • 20. Internet-Time Analogy 1949 Atomic 1929 Quartz Crystal 1600’s Mechanical 1583 AD Pendulum 3500 BC Sundial Web is here in 2004