The document outlines the evolution of the internet from its origins in the 1950s to its current role in business and communication, highlighting significant developments and shifts in user engagement and business models. It discusses the characteristics of Web 2.0 and anticipates Web 3.0, emphasizing the importance of real-time data and mobile access. Additionally, it identifies strategic drivers for internet marketing and best practices for effective consumer engagement in a rapidly evolving digital landscape.

1. 1
CHAPTER
INTERNET MARKETING
AS PART OF THE
MARKETING
COMMUNICATIONS MIX
©2013 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.

2. How Has the Internet
Changed the Way You
Live
Work
Communicate
ARE YOU OLD ENOUGH
TO REMEMBER
BEING WITHOUT
INTERNET ACCESS?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. EVOLUTION OF THE INTERNET
SLOW GROWTH FROM 1957 THROUGH 1990
• 1950s: The Cold War spawns the
ARPAnet
• 1960s and 70s: Slow growth—limited
to scientists and researchers around
the world
• 1980s: TCP/IP; National Science
Foundation operated the
backbone, banned commercial traffic
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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4. EVOLUTION OF THE INTERNET
1990S THROUGH PRESENT: BOOM, BUST, STABLE GROWTH
• 1991: Gopher and HTML
• 1993: Mosiac
• 1995: Yahoo!
• Throughout the 1990s: Venture Capital Dollars
Chasing Untried Business Models
• 2000 through 2002: Business Failures and
Disappearance of Venture Capital
• 2004 On: Rapid Growth in Users, Content, and Sales
(B2C and B2B); Emergence of New Players Like
Google, Facebook, Foursquare, Groupon
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5. INTERNET TIMELINE
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6. Sabre Holdings
From an Internal Network
To a
Commercial Product
To an Enterprise
with a
Portfolio of Brands
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. WHAT DOES BUST/RETURN TO
GROWTH SAY ABOUT
INTERNET BUSINESS MODELS?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. CHARACTERISTICS OF WEB 2.0
• Services, Not Packaged Software; Scalability
• Unique (Behavioral) Data
• Users as Co-Developers
• Harness Collective Intelligence
• Leverage the “Long Tail”
• Software Increasingly Device Agnostic
• “Lightweight” Interfaces, Development
and Business Models
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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9. WEB 3.0?
• Real Time
• Semantic
• Open Communication/Data Transfer
• Mobile and Geolocation
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10. ‘SOCIAL BUSINESS’ TECHNOLOGY
IMPROVES BUSINESS OUTCOMES
What Increased
What Decreased
Communication with customers Time to find information and
experts
Employee connectedness
Number of customer support
calls
Number of emails sent
Project collaboration and
productivity
Ideas generated inside the firm Time needed for meetings
New business win rate
Need for travel
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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11. GLOBAL BRANDS – COMBINATION OF
ONLINE AND OFFLINE
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12. INTERNET MARKETING PARADIGM
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13. ELEMENTS OF IM PARADIGM
Objectives
Inputs
Actions
Customer Acquisition
Internet Business Models
Customer Conversion
Interactive Channels
Customer Retention
Offline Channels
Ecommerce
Customer Value Growth
Social and Regulatory
Issues
Customer Service and
Support
Advertising and Promotion
- Direct Response
- Brand Development
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. INTERNET INFRASTRUCTURE STACK
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15. COMPUTING ‘IN THE CLOUD’
• Computing and Data Storage on ‘Public Clouds’
or ‘Private Clouds’
• Suppliers like Amazon, Salesforce.com or Private,
Custom Sites for Corporations, Government Agencies
• Fee for Services Instead of Investment
• Do not Have to Maintain Hardware
and Software
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. CLIENT SERVICES ‘IN THE CLOUD’
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. CONSUMERS BENEFIT FROM CLOUD
• Web-based Email
• Store Photos or Videos Online
• Use Apps Like Google Docs,
Photoshop Express
• Store or Backup Files Online
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18. PROFILE OF
THE INTERNET
AND ITS USERS
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19. ISSUES IN DEVELOPMENT OF INTERNET
• Approaching Saturation in Developed
Countries
• Growth Continues in Developing Countries
• Broadband and Mobile are Facilitators
• Speed of Access Important
• Cell Phone Penetration High
• Mobile Access to Exceed Desktop Access
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20. SIZE OF INTERNET BY GLOBAL REGION
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21. MOBILE DRIVING GROWTH WORLDWIDE
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22. DEMOGRAPHICS
U.S. INTERNET USERS
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23. SEARCH, EMAIL STILL MOST POPULAR
SOCIAL NETWORKS ‘TRENDING’
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24. USAGE SEGMENTS
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

25. SEARCH OUTSTRIPS SOCIAL
FOR PRODUCT INFO
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26. MARKETERS ‘FOLLOW THE EYEBALLS’
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27. DIGITAL’S PROPORTION OF TOTAL
BUDGET CONTINUES TO GROW
True for B2C as Well as B2B
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28. STRATEGIC DRIVERS - INTERNET MARKETING
Information Creates Greatest Value Added,-All Products, Services
Size and Distance Often Do Not Matter (availability of resources critical)
Speed and Flexibility Essential
People are the Key Assets
Growth in the Network Causes Exponential Increase in Value
Marketers Can Deal with Customers One-to-One
Demand Can Be Predicted with Greater Accuracy
Cost Patterns Change as Transaction, Coordination (B2B) and Switching (B2C) Costs
Decrease
Consumers Have Power in Information-Rich Channels
The Information Economy is Characterized by Choice, Abundance
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

29. CHARITY:WATER – BEST PRACTICES
ONLINE AND OFFLINE
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30. SOME BEST PRACTICES
• Personalization
• Effective-and Cost-Effective-Promotions
• Email, Search Advertising, Social Networks
• Can be Tracked, Effectiveness Measured
• Use of Rich Media
• Strategic Partnerships
• Consumer Involvement, Co-Creation
• Integration with Offline
• These and More Discussed Throughout Text
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

31. SUMMARY
• Internet Integral Part of
• Daily Lives of People Around the Globe
• Business Communications and Operations (SMB/Local)
• Marketing > Communications, Transactions Channels
o
Acquisition, Conversion, Retention, Value Growth
• Change, Innovation Continuing (Accelerating?)
• Technological Change is Marketing Facilitator
• We’re All Living In the Cloud
• Difficult to Keep Up
• Basic Rules of Business and Economics Apply
• Profit (Sustainability for Non-Profits)
• Sensible, Scalable Business Models
• Strategic Drivers of Online Economy Different from Offline
• Internet Best Practices Evolving
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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