CHAPTER THIS IS THE PPT SUPPORT FOR INTERNET

MARKETING, CHAPTER 1.

1 THE FULL TEXTBOOK AND INDIVIDUAL

C H A P T E R S A R E N OT AVA I L A B L E F O R
UPLOAD. THE AUTHORS ARE NOT THE
COPYRIGHT HOLDERS AND THIS IS THE
O N LY T H I N G W E A R E A U T H O R I Z E D T O
MAKE PUBLIC.
HOWEVER, WE WILL DO OUR BEST TO
G E T E X A M I N AT I O N C O P I E S T O
INDIVIDUAL ACADEMICS.

C O N TA C T F O R A C A D E M I C S :
ROBERTS.MARYLOU001@GMAIL.COM
LINK FOR PURCHASE OF EBOOK AND
:INDIVIDUAL CHAPTERS
H T T P : / /B I T . LY / K C N 5 K T

Cengage Learning. All Rights Reserved. May 2013©

not be scanned, copied or duplicated, or posted to a
.publicly accessible website, in whole or in part
 CHAPTER

1 INTERNET MARKETING
AS PART OF THE
MARKETING
COMMUNICATIONS MIX
Cengage Learning. All Rights Reserved. May 2013©
not be scanned, copied or duplicated, or posted to a
.publicly accessible website, in whole or in part
 How Has the Internet
Changed the Way You
Live
Work
Communicate

ARE YOU OLD ENOUGH

TO REMEMBER
BEING WITHOUT
?INTERNET ACCESS
 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

4
 EVOLUTION OF THE INTERNET
1990s Through Present: Boom, Bust, Stable Growth

Gopher and HTML :1991 •

Mosiac :1993 •
!Yahoo :1995 •
Throughout the 1990s: Venture Capital Dollars •
Chasing Untried Business Models
through 2002: Business Failures and 2000 •
Disappearance of Venture Capital
On: Rapid Growth in Users, Content, and Sales 2004 •
(B2C and B2B); Emergence of New Players Like Google,
Facebook, Foursquare, Groupon
5
Internet Timeline

6
Sabre Holdings
From an Internal Network
To a
Commercial Product
To an Enterprise
with a
Portfolio of Brands
WHAT DOES BUST/RETURN TO

GROWTH SAY ABOUT

?INTERNET BUSINESS MODELS

 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

9
 ?Web 3.0

Real Time •
Semantic •
Open Communication/Data Transfer •
Mobile and Geolocation •

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
Project collaboration and Number of emails sent
productivity
Ideas generated inside the firm Time needed for meetings
New business win rate Need for travel

11
Global brands – combination of
Online and Offline
Internet marketing paradigm
 Elements of paradigm
Objectives Inputs Actions

Customer Internet Business Advertising and

Acquisition Models Promotion
- Direct Response
Customer Interactive Channels - Brand Development
Conversion

Customer Offline Channels Ecommerce

Retention

Customer Value Social and Regulatory Customer Service and

Growth Issues Support
Internet infrastructure stack
 ’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
’Client services ‘in the cloud
 Consumers benefit from cloud

•Web-based Email
•Store Photos or Videos Online
•Use Apps Like Google Docs, Photoshop
Express
•Store or Backup Files Online

18
 PROFILE OF
THE INTERNET
AND ITS USERS
 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
Size of internet by global region

21
Mobile driving growth worldwide
Demographics
U.S. internet users
Search, email still most popular
’social networks ‘Trending
Usage segments
Search outstrips social
for product info
’Marketers ‘follow the eyeballs
Digital’s proportion of total budget
continues to grow

True for B2C as Well as B2B

 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
charity:water – best practices
online and offline
 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
 summary
Internet Integral Part of•
Daily Lives of People Around the Globe
Business Communications and Operations (SMB/Local)
Marketing > Communications, Transactions Channels
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•
33
Internet Best Practices Evolving•