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The Evolution of Internet Marketing: Adaptation, Innovation, and Customer-Centric Strategies

This overview discussion traces the evolution of Internet marketing and its pivotal role in shaping modern e-commerce. Originating in the 1960s, the Internet's early adopters included university researchers and the U.S. military, but it became mainstream with the World Wide Web in the 1990s, leading to an influx of investment and digital marketing strategies. Today, with technological advancements and a global market, the focus has shifted from mass branding to managing individual consumer interests, enabling more personalized and effective marketing strategies.

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The Evolution of Internet Marketing: Adaptation, Innovation, and Customer-Centric Strategies

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  1. Internet Marketing & e-CommerceWard HansonKirthiKalyanamRequests for permission to copy any part of the material should be addressed to:PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS5109 Natorp BoulevardMason, OH 45040Phone: (800) 423-0563

  2. Part One: Chapter OneIntroduction “The goal is to move from the current situation of complexity and frustration to one where technology serves human needs invisibly, unobtrusively: the human-centered, customer-centered way.” Donald Norman, The Invisible Computer

  3. Origins of the Internet • Researchers began work in 1960s

  4. Origins of the Internet • Researchers began work in 1960s • Two key early adopters: • University instructors and researchers • The United States military

  5. Origins of the Internet • Researchers began work in 1960s • Two key early adopters: • University instructors and researchers • The United States military • Governed initially by the National Science Foundation, which prohibited all commercial transactions

  6. The Internet Goes Mainstream • Email propelled the Internet off campus and outside the military • Efficient means of communication • Internet was still slow and expensive

  7. The Internet Goes Mainstream • Government regulation dissolved in early 1990s • Fundamental break through was World Wide Web • It was possible to mix pictures, sound, video with text • By 1994, the Internet had gone commercial

  8. The Virtuous Cycle and The Internet Boom

  9. Booms and Busts • Fascination with the web also led to an infusion of investment capital • Aggressive, expensive battle for customers doomed many start-ups • Greater discipline and more cost-effective marketing plans allowed the dot-com era to take root

  10. What Lies Ahead • Just 15 percent of the world’s 6.3 billion population is online

  11. What Lies Ahead • Just 15 percent of the world’s 6.3 billion population is online • And the dominance of American users is steadily shrinking

  12. Growth Potential in Developing Countries Top countries for Internet use, 2004 *New to list in 2004 Source: CIA Factbook

  13. New Technologies, New Opportunity • Advanced Connection Devices – from cell phones to home wireless systems – increase the potential online consumer audience

  14. New Technologies, New Opportunity • Advanced Connection Devices – from cell phones to home wireless systems – increase the potential online consumer audience • Faster Internet Connections bring marketing messages to the audience more swiftly

  15. New Technologies, New Opportunity • Advanced Connection Devices – from cell phones to home wireless systems – increase the potential online consumer audience • Faster Internet Connections bring marketing messages to the audience more swiftly • New Information Appliances, such as Apple’s iPod, integrate technology advances with specific consumer demands

  16. A Shift for Marketing • From “Selling the Brand” – The old model emphasized on mass production and a promoting a distinct brand • To “Managing the Consumer” – Online marketing puts focus on the customer’s individualized interests and demands

  17. Marketing the World’s Game Online • Static websites provide basic information and game broadcasts

  18. Marketing the World’s Game Online • Static websites provide basic information and game broadcasts • Dynamic websites allow greater fan interaction and facilitate ecommerce

  19. Marketing the World’s Game Online • Static websites provide basic information and game broadcasts • Dynamic websites allow greater fan interaction and facilitate ecommerce • Personalized websites respond to individualized fan interaction

  20. Marketing the World’s Game Online • Static websites provide basic information and game broadcasts • Dynamic websites allow greater fan interaction and facilitate ecommerce • Personalized websites respond to individualized fan interaction • Keyword Advertising links fans to potential travel and tourism sites

  21. Rethinking Marketing StrategyThree General Purposes Technologies form the foundation of Internet marketing and pave the way for greater innovation:

  22. Rethinking Marketing StrategyThree General Purposes Technologies form the foundation of Internet marketing and pave the way for greater innovation: • The Digital Revolution • Digital computing • Digitization • Created new products, processes and economic activities • Cell phone, DVD, MP3 music

  23. Networking • Radio Network • Phone network • Video through Internet • From text to voice to video • Individualization • Ability to create messages, marketing campaigns and products geared towards individuals • Cookies to track online browsing • Secure web access

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