This document defines various terms related to internet marketing and e-commerce. It discusses the evolution of online marketing from early Web 1.0 technologies which focused on one-way communication, to today's Web 2.0 which enables social media and user-generated content. Web 2.0 has shifted power to consumers and created new opportunities for customer acquisition through social media. The future Web 3.0 is predicted to be driven by semantic applications across mobile and smart devices.

1. 10/4/2013Internet Marketing and E-Commerce

2. Some definitions/terminology
10/4/2013Internet Marketing and E-Commerce
 Brick-and-Mortar company
 Mouse-and-click company
 Dot-com Bubble (2000) – Bust (2001)
 Advertising Online
 Any online paid activity showing/displaying a profit/non-profit making
company/firm/organization’s name/logo.
 Search Engine Marketing
 The act of marketing a website via search engines, whether through
improving rank in listing, purchasing paid listing, or a combination of both.
 Advergame
 A combination of online advertising and gaming, where the user sees the
products and services in the game itself.
 Affiliate program
 A link to an e-tailor’s website, put in by firms to make a commission on all
purchases by referred customers.

3. Some definitions/terminology
10/4/2013Internet Marketing and E-Commerce
 AIDA Model
 Behavioral Targeting
 Occurs when software tracks a users’ movement through a website
and then sends appropriate web content at a moment’s notice.
 Content filtering
 A process by which user may block unwanted materials.
 Cyber squatting
 A type of trademark violation that involves the registration of
domains that resemble or duplicate the names of existing
corporations or other entities.
 Dis-intermediation
 The process of eliminating traditional intermediaries.
 GPRS
 General packet radio services

4. Some definitions/terminology
10/4/2013Internet Marketing and E-Commerce
 Interstitial Ad
 Advertisement that appear while the publishers’ content is loading.
 iPOS terminals
 Small customer-facing machines near the brick-and-mortar cash
register, used to record a buyer’s signature for a credit card
transaction.
 Permission Marketing
 When users voluntarily agree to receive commercial e-mail about
topics that might be interested to them.
 Pareto Principle
 80-20 principle
 RFID
 Radio frequency identification
 Spoofing
 Phishing activities

5. Some definitions/terminology
10/4/2013Internet Marketing and E-Commerce
 User Generated Content
 Online reviews, consumer rating, post/comments on
company wall, online forum/complaint by consumers
 Online Aggregators
 Flipcart, Amazon, eBay, etc.
 Advergame
 A combination of online advertising and gaming, where the
user sees the products and services in the game itself.
 Affiliate program
 A link to an e-tailor’s website, put in by firms to make a
commission on all purchases by referred customers.

6. E-Marketing’s Past: Web 1.0
 The Internet started in 1969 as the ARPANET, a network for
academic and military use.
 Web pages and browsers appeared in 1993.
 Only at organizational level.
 One way communication.
 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. (dot-com bust)
 By Q4 2003, almost 60% of public dot-coms were
profitable.
10/4/2013Internet Marketing and E-Commerce

7. E-Marketing Today: Web 2.0
 Web 2.0 technologies connect people with each
other through social media, which have created
opportunities and challenges for marketers.
 Power shift from sellers to buyers.
 Consumers trust each other more than
companies.
 Market and media fragmentation.
 Online connections are critical
10/4/2013Internet Marketing and E-Commerce

8. POWER SHIFT FROM COMPANIES TO
INDIVIDUALS
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9. Marketing 2.0
10/4/2013Internet Marketing and E-Commerce
 Anyplace
 Brand
 Communication
 Discovery
 Experience

10. Acquiring a Customer from Social
Media
10/4/2013Internet Marketing and E-Commerce

11. OTHER OPPORTUNITIES AND
CHALLENGES IN WEB 2.0
 Internet adoption
matures.
 Online retail sales reach
4% of all sales.
 Search engines are now
reputation engines.
 Content is still king.
 Improved online and
offline strategy
integration
 Intellectual capital rules
 60% broadband
adoption at home
 The long tail
Challenges Opportunities
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12. The Future: Web 3.0
 Lines between traditional and new media are blurring.
 Appliances are converging and becoming “smart.”
 Wireless networking is increasing.
 Semantic web will provide worldwide access to data on
demand without effort.
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13. 10/4/2013Internet Marketing and E-Commerce
How do experts characterize Web
3.0?
 Semantic web will be achieved and the mobile
device will be the primary Internet connection
tool by 2020 (Pew study).
 Interactive media will cannibalize traditional
media (Forrester Research).
 Web 3.0 will ultimately be seen as applications
which are pieced together…run on any
device…are very fast…are distributed virtually
(Eric Schmidt of Google).

14. 10/4/2013
Internet Marketing and E-Commerce

15. QUESTIONS?

16. Pure
Play
Enterprise
Business Process
Activity
Pure dot-com
(Amazon)
Click and Mortar
(eSchwab, most retailers)
Customer
Relationship
Management
Brochureware
E-mail
Levelofbusinessimpact
Business transformation
(competitive advantage,
industry redefinition)
Effectiveness
(customer
retention)
Efficiency
(cost
reduction)
Exhibit 2 - 1 Level of Commitment to E-business
Source: Adapted from www.mohansawhney.com