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Part One: Chapter One Introduction

Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH 45040 Phone: (800) 423-0563. Part One: Chapter One Introduction.

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Part One: Chapter One Introduction

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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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