This chapter discusses the past, present, and future of e-marketing. It distinguishes between e-business, e-commerce, and e-marketing. E-business optimizes a company's activities using digital technology, while e-commerce focuses on online transactions. E-marketing applies information technology to traditional marketing. The chapter also identifies trends that may shape the future of e-marketing, such as increasing transparency and the development of the semantic web.

1. E-Marketing/8E
Chapter 1
Past, Present, and Future
Modified by: Usman Tariq

2. Chapter 1 Objectives
– Explain how the advances in internet and information
technology 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 and the information-receiving
appliance used to view or hear it.
– Identify several trends that may shape the future of e-
marketing, including the semantic Web.
1-2©2018

3. 3
• If ‘transparency 1.0’ was all about the
excitement at being able to see exactly what
other (real!) people thought about products or
services; ‘transparency 2.0’ saw this become
just a default element of decision-making; now
‘transparency 3.0’ will be about making almost
all aspects of the transaction and experience
transparent: manufacturing, pricing, reviews,
popularity, and even personal relevance.
trend
• February 2012 saw KLM roll out its Meet & Seat
initiative. The optional service allows
passengers to link their booking to their
Facebook or LinkedIn profile and select a seat
next to the individuals they find most
interesting
impact

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5. 5

6. E-business, E-commerce, E-marketing
• E-business is the optimization of a company’s
business activities using digital technology.
• E-commerce is the subset of e-business focused
on transactions.
• E-marketing is the result of information
technology applied to traditional marketing.
1-6©2018

7. 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.
• Electronic marketing reaches far beyond the
Web.
1-7©2018

8. Internet Landscape
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19. 19
Property Marketing Implications
Bits, not Atoms
Information, products, and communication in
digital form can be stored, sent, and received
nearly instantaneously. Text, audio, video,
graphics, and photos can all be digitized, but
digital products cannot be touched, tasted, or
smelled.
Mediating
Technology
Peer-to-peer relationships, such as auctions,
social networks, and business partnerships,
can be formed regardless of geographic
location. Technology allows timely
communication and data sharing, as with
businesses in a supply chain.

20. 20
Property Marketing Implications
Global Reach Opens new markets and allows for
worldwide partnerships, employee
collaboration, and salesperson
telecommuting.
Network
Externality
Businesses can reach more of their markets
with automated communication, and
consumers can disseminate brand opinions
worldwide in an instant.

21. 21
Property Marketing Implications
Time
Moderator
Consumers hold higher expectations about
communication with companies and faster
work processes within companies.
Information
Equalizer
Companies employ mass customization of
communication, and consumers have more
access to product information and pricing.
Scalable
Capacity
Companies pay for only as much data storage
or server space as needed for profitable
operations and can store huge amounts of
data.

22. 22
Property Marketing Implications
Open Standard Companies can access each other’s databases for
smooth supply chain and customer relationship
management, which connects large and small
firms.
Market
Deconstruction
Many distribution channel functions are
performed by nontraditional firms (e.g.,
Edmunds.com and online travel agents) and new
industries emerged (e.g., ISPs).
Task
Automation
Self-service online lowers costs and makes
automated transactions, payment, and fulfillment
possible.

23. Timeline
• 1969 ARAPNET commissioned by U.S. Department
of Defense for academic and military use.
• 1975 First mailing list created to use the new
computer network.
• 1979 USENET established to host discussions. First
post in 1981. Later managed by Google Groups (800
million archived messages).
• 1984 Number of connected computer hosts
reaches 1,000.
• 1987 Number of connected computer hosts
reaches 10,000. First e-mail connection with China.
• 1988 First virus, affects 10% of the 60,000 hosts.
1-23©2018

24. Timeline
• 1993 Early Web sites appear and business and
media take notice.
• 1994 First banner ads, “Jerry and David's Guide to
the World Wide,” appear on hotwired.com (later named
Yahoo!).
• 1995 eBay opens its doors and disrupts the
classified advertising business.
• 2000 Napster.com shows the world that peer-to-
peer networking can work. Businesses show that e-
commerce doesn’t always work (the dot-com crash).
• 2002 Running your own blog is now considered
hip.
1-24©2018

25. Timeline
• 2003 Recording Industry Association of America (RIAA)
sues 261 people for illegal music downloading.
• 2004 16% of the world’s population uses the internet.
Businesses figure out how to be profitable with e-business
models.
• 2012 34.3% of the world’s population is online.
Internet usage in industrialized nations reaches maturity.
Social media use moves the balance of power from
organizations to internet users.
• 2017 51.7% of the world’s population is online.
Internet usage in developing nations grows increasingly
popular. Corporate social media use becomes an accepted
business practice among companies and consumers.
1-25©2018

26. 2001 Gartner Hype Cycle
1-26©2018

27. The E Drops from
E-Marketing
• Gartner predicted that the e would drop, making
e-business just business and e-marketing just
marketing.
• Nevertheless, e-business will always have its unique
models, concepts, and practices.
• The e-marketing landscape is changing rapidly due
to consumer-generated content, mobile internet
access, social media and disruptive technologies.
1-27©2018

28. Percentage of U.S. Internet Users Who
Use the Top Social Networks2016
1-28©2018
Facebook users
79%
Twitter users
24%
Pinterest users
31%
LinkedIn users
29%
Instagram users
32%

29. Let’s Get Technical Themes
• Superior content beats out a superior delivery
platform.
• Over time, the inferior delivery platform will catch up
in quality
• Younger users drive these trends in two ways
1. Younger users tend to be more price sensitive
2. Younger users value constant connectivity
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30. Stepping Stones to Web 3.0
• Higher bandwidth
• Faster connection speeds
• Artificial intelligence
• Seamless social networking
• Modular Web applications
1-30©2018

31. 31

32. The Future: Web 3.0
• SirTim Berners-Lee, coinventor of the World
Wide Web, has been working on technology to
organize online data for greater user convenience,
i.e., the semantic Web.
– Users can easily find information based on its
type.
• The value of the semantic Web is information on
demand.
• Experts believe the semantic Web will become a
reality over the next decade.
1-32©2018

33. Semantic Web
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The Semantic Web is a mesh of data that are associated in
such a way that they can easily be processed by machines
instead of human operators. It can be conceived as an
extended version of the existing World Wide Web, and it
represents an effective means of data representation in the
form of a globally linked database.