E Marketing Ch1 Convergence

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Strauss E-marketing Chapter 1 Convergence

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E Marketing Ch1 Convergence

  1. 1. E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 1: Convergence
  2. 2. Chapter 1 Objectives <ul><li>After reading Chapter 1 you will be able to: </li></ul><ul><ul><li>Explain how the Internet and information technology offers benefits and challenges to consumers, businesses, marketers, and society. </li></ul></ul><ul><ul><li>Distinguish between e-business and e-marketing. </li></ul></ul><ul><ul><li>Describe the Internet and the use of intranets, extranets and the Web. </li></ul></ul>
  3. 3. Chapter 1 Objectives, cont. <ul><ul><li>Explain how increasing buyer control is changing the marketing landscape. </li></ul></ul><ul><ul><li>Understand the distinction between information or entertainment as data, and the information receiving appliance used to view or hear it. </li></ul></ul>
  4. 4. The Music Industry <ul><li>File sharing programs, such as KaZaA, enable consumers to illegally download music. </li></ul><ul><li>The Recording Industry Association of America has sued over 400 consumers for piracy. </li></ul><ul><li>14% U.S. consumers still download illegal files </li></ul><ul><li>CD sales plunged to $13 million in 1999; $10.6 billion in 2003 </li></ul><ul><li>Apple Computer introduced iTunes at .99 each. </li></ul>
  5. 5. What will happen to the music industry? <ul><li>The actual cost of producing a CD is $10.17. </li></ul><ul><li>Only $1.29 goes to the artist. </li></ul><ul><li>Online distribution makes sense. </li></ul><ul><li>What do you think will happen to the music industry? </li></ul><ul><li>What do you think will happen to the movie industry? </li></ul>
  6. 6. E-marketing Defined <ul><li>The use of information technology </li></ul><ul><ul><li>to create, communicate, and deliver value to customers. </li></ul></ul><ul><ul><li>for managing customer relationships to benefit the organization. </li></ul></ul><ul><li>The result of information technology applied to traditional marketing. </li></ul>
  7. 7. E-Business, E-Commerce, and E-Marketing <ul><li>E-business is the continuous optimization of a firm’s business activities through digital technology. </li></ul><ul><li>E-commerce is the subset of e-business focused on transactions. </li></ul><ul><li>E-marketing is one part of an organization’s e-business activities. </li></ul>
  8. 8. The Internet <ul><li>A global network of interconnected networks. </li></ul><ul><li>E-mail and data files move over phone lines, cables and satellites. </li></ul><ul><li>Three types of networks form part of the Internet: </li></ul><ul><ul><li>Intranet: network that runs internally in an organization. </li></ul></ul><ul><ul><li>Extranet: two joined networks that share information. </li></ul></ul><ul><ul><li>Web: how most people refer to the Internet. </li></ul></ul>
  9. 9. The Web Is One Aspect of E-Marketing E-mail Internet UPC Scanner PDA Cell Phone Web PC Television Refrigerator Database Automobile
  10. 10. Past, Present, and Future <ul><li>The first generation of e-business was like a gold rush. </li></ul><ul><li>From 2000-2002, over 500 Internet firms shut down in the U.S. </li></ul><ul><li>Almost 60% of dot-coms were profitable in the fourth quarter of 2003. </li></ul><ul><li>Today, the Internet is mainstream in industrialized nations. </li></ul><ul><ul><li>20 nations comprise 90% of all Internet users. </li></ul></ul>
  11. 11. E-Business Recovery Is Sweet
  12. 12. E-Marketing Today <ul><li>Power shift from sellers to buyers </li></ul><ul><li>Marketing fragmentation: mass market to one customer </li></ul><ul><li>Death of distance </li></ul><ul><li>Time compression </li></ul><ul><li>Knowledge/database management is key </li></ul><ul><li>Marketing and technology: an interdisciplinary focus </li></ul><ul><li>Intellectual capital is important resource </li></ul>
  13. 13. Consumer Control <ul><li>New technologies such as personal video recorders (PVRs) and Akimo will increase consumer control. </li></ul><ul><ul><li>Convergence of television, radio, print, etc. </li></ul></ul><ul><ul><li>Customer-controlled entertainment, and shopping on demand. </li></ul></ul>
  14. 14. Improved Internet Strategy Integration <ul><li>Organizations will integrate information technology seamlessly into marketing strategy. </li></ul><ul><ul><li>Multichannel marketing: Web site, retail store, and catalog </li></ul></ul><ul><ul><li>Integration of inventory databases </li></ul></ul><ul><ul><li>Integration of customer service across channels </li></ul></ul>
  15. 15. Refined Metrics <ul><li>Internet provides great deal of data, not all of which is very useful. </li></ul><ul><li>Tracking customer acquisition cost (CAC) and other key metrics is a critical marketing function still in its infancy. </li></ul><ul><li>Future metrics will provide better measures of performance, return on investment, etc. </li></ul>
  16. 16. Wireless Networking Increases <ul><li>Cell phones, PDAs and laptops connect to the Internet via wireless modem worldwide. </li></ul><ul><ul><li>Starbucks </li></ul></ul><ul><ul><li>Hotels and airports </li></ul></ul><ul><ul><li>Queen Mary II luxury liner </li></ul></ul><ul><ul><li>Amtrak train stations </li></ul></ul><ul><li>Customers will have information, entertainment and communication when, where and how they want it. </li></ul>
  17. 17. WiFi at Train Station in France
  18. 18. Appliance Convergence <ul><li>The receiving appliance is separate from the media type. </li></ul><ul><ul><li>Computers can receive digital radio and TV. </li></ul></ul><ul><ul><li>TV sets can receive the Web. </li></ul></ul><ul><li>New types of “smart” receiving appliances will emerge. </li></ul><ul><ul><li>Internet refrigerator is many digital appliances in one. </li></ul></ul><ul><ul><li>Global position systems (GPS) allow in-car communication and entertainment. </li></ul></ul>
  19. 19. Semantic Web <ul><li>The Semantic Web will utilize a standard definition protocol that will allow users to find information based on its type, such as: </li></ul><ul><ul><li>The next available appointment for a doctor </li></ul></ul><ul><ul><li>Details about an upcoming concert </li></ul></ul><ul><ul><li>Menu at the local restaurant </li></ul></ul><ul><li>Represents the next huge advance: providing worldwide access to data on demand without effort. </li></ul>
  20. 20. Internet-Time Analogy 1949 Atomic 1929 Quartz Crystal 1600’s Mechanical 1583 AD Pendulum 3500 BC Sundial Web is here in 2004

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