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E-MARKETING 5/E
JUDY STRAUSS AND RAYMOND FROST

Part I: E-Marketing in Context

Chapter 1: Past, Present, and Future

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 Chapter 1 Objectives
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 After reading Chapter 1, you will be able to:

 Explain how the internet and information technology
advances 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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 Dell Starts Listening
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 In 2004, Dell held 28.2% of U.S. computer market

share.
 To reduce costs, Dell Computer began outsourcing
customer service to a firm in India.
 Market share increased to 28.8% but complaints
and consumer dissatisfaction rose.
 Dell digital media manager initiated blogs in
several languages to improve communication.

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 Dell Starts Listening, cont.
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 Dell’s blogs became mechanisms for handling

consumer complaints and ideas.
 Blog usage resulted in over 20 changes to the
company.
 What are the opportunities and risks in utilizing
blogs for improving customer service?

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 Internet 101
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 The internet is a global network of interconnected

networks.
 E-mail and data files move over phone lines,
cables, and satellites from sender to receiver.
 There are two special uses of the internet:
 Intranet: network that runs internally in an
organization.
 Extranet: two joined networks that share information.

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 Internet 101, cont.
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 E-business is the continuous optimization of a

firm’s business activities through digital
technology.
 E-commerce is the subset of e-business focused on
transactions.
 E-marketing is one part of an organization’s e-
business activities.

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 E-Marketing is Bigger than the
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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.

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 The Web Is One Aspect of E-
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Marketing
 Exhibit 1.1

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 E-Marketing is Bigger than
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Technology
 The internet provides individual users with
convenient and continuous access to information,
entertainment, and communication.
 Communities form around shared photos, videos,
and online profiles.
 The digital environment enhances processes and
activities for businesses.
 Societies are enhanced through more efficient
markets, more jobs, and information access.
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 Global Internet Users
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 Exhibit 1.3

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 E-Marketing’s Past: Web 1.0
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 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 gold
rush.
 Between 2000 and 2002, more than 500 internet firms
shut down in the U.S.
 By Q4 2003, almost 60% of public dot-coms were
profitable.

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 E-Business to Just Business
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 Exhibit 1.5

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 E-Marketing Today: Web 2.0
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 Web 1.0 connected people to networks.

 Web 2.0 connected people with machines and each
other.
 Web 2.0 is the second generation of internet
technology and includes:
 Blogs
 Social networking
 Photo, video, and bookmark sharing

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 The Future: Web 3.0
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 The newest technologies allow marketers to focus

on user:
 Engagement
 Participation
 Co-creation
 Online gaming represented over $1 billion in
revenue and 15 million players in 2006.

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 Consumers Have More Control
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 The internet provides a communication platform

for individual comments, both positive and
negative.
 Comments can spread quickly and rapidly.
 New technologies such as digital video recorders
(DVRs) will increase consumer control.
 New service Akimbo maintains a library of over
10,000 programs with access via the internet,
television, or other appliance.
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 Power Shift from Companies to
Individuals
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 Exhibit 1.7

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 Wireless Networking Increases
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 Cell phones, PDAs, and laptops connect to the

internet via wireless modem worldwide.
 Starbucks
 Hotels and airports
 Queen Mary II luxury liner
 Amtrak train stations
 Customers will have information, entertainment,
and communication when, where, and how they
want it.
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 WiFi at Train Station in France
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 Appliance Convergence
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 The receiving appliance is separate from the media

type.
 Computers can receive digital radio and TV.
 TV sets can receive the Web.
 New types of “smart” receiving appliances will
emerge.
 Internet refrigerator is many digital appliances in one.
 Global positioning systems (GPS) allow in-car
communication and entertainment.

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 Semantic Web
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The Semantic Web will utilize a standard definition

protocol that will allow users to find information
based on its type, such as:
 The next available appointment for a doctor.
 Details about an upcoming concert.
 Menu at the local restaurant.
 Represents the next huge advance: providing
worldwide access to data on demand without effort.

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 Internet-Time Analogy Ex.1.9
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Copyright © 2009 Pearson Education, Inc.

Publishing as Prentice Hall

©2009 Pearson Education, Inc.

Publishing as Prentice Hall