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    E-MARKETING/6E

    CHAPTER 1

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    CHAPTER 1 OBJECTIVES

    After reading Chapter 1, you will be able to:

    Explain how 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. Identify several trends that may shape the future of e-

    marketing.

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    1-3THE BARACK OBAMA

    CAMPAIGN STORY

    Barack Obamas Internet strategy

    targeted 18-29 year-old voters

    because 93% are online and used the

    Internet to get information and

    connect with friends.

    Facebook displayed over 8 million

    Obama friends.

    Two-thirds of all campaign funds came

    from Obamas online channel.

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    1-4 INTERNET 101

    The internet is a global network ofinterconnected networks.

    E-mail and data files move over phone

    lines, cables and satellites. There are three types of access to the

    Internet: Public internet

    Intranet: network that runsinternally in an organization.

    Extranet: two joined networks thatshare information.

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    1-5E-BUSINESS, E-COMMERCE,

    E-MARKETING

    E-business is the continuous

    optimization of a firms business

    activities through 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.

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    1-6E-MARKETING IS BIGGER

    THANTHE WEB

    The web is the portion of the Internetthat supports a graphical userinterface for hypertext navigation with

    a browser

    The web is what most people thinkabout when they think of the Internet.

    Electronic marketing reaches farbeyond the web.

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    1-7THE WEB IS ONLY ONE

    ASPECTOF E-MARKETING

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    1-8E-MARKETING IS BIGGER

    THAN TECHNOLOGY

    The Internet provides individual users with

    convenient and continuous access to

    information, entertainment, and

    communication. Communities form around shared photos

    (Flickr), videos (YouTube), and individual or

    company profiles (Facebook).

    The digital environment enhances processes

    and activities for businesses.

    Societies and economies are enhanced through

    more efficient markets, more jobs, and

    information access.

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    1-9 GLOBAL INTERNET USERS

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    1-10E-MARKETINGS 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.

    The first generation of e-business was like a goldrush.

    Between 2000 and 2002, more than 500 Internetfirms shut down in the U.S.

    By Q4 2003, almost 60% of public dot-coms wereprofitable.

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    INTERNET TIMELINE

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    1-12THEEDROPSFROM

    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.

    Online search

    Online data collection

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    1-13 E-BUSINESS JUST BUSINESS?

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    1-14E-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

    POWER SHIFT FROM

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    POWER SHIFT FROM

    COMPANIES TO

    INDIVIDUALS

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    1-16ACQUIRINGA CUSTOMER

    FROM SOCIAL MEDIA

    OTHER OPPORTUNITIES

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    OTHER OPPORTUNITIES

    AND CHALLENGES IN WEB

    2.0

    Internet adoption

    matures.

    Online retail salesreach 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

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    1-18 THE FUTURE: WEB 3.0

    Lines between traditional and new media are

    blurring.

    Appliances are converging and becomingsmart.

    Wireless networking is increasing.

    Semantic web will provide worldwide access

    to data on demand without effort.

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    1-19WI-FIAT TRAIN STATION

    IN FRANCE

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    1-20HOWDOEXPERTS

    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 togetherrun on any deviceare

    very fastare distributed virtually (Eric Schmidt ofGoogle).

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    1-21INTERNET-TIME

    ANALOGY

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    All rights reserved. No part of this publication may be reproduced, stored in a retrieval

    system, or transmitted, in any form or by any means, electronic, mechanical,

    photocopying, recording, or otherwise, without the prior written permission of the

    publisher. Printed in the United States of America.

    Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall