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E-Marketing/7E
Chapter 1
Past, Present, and Future
The Barack Obama
Campaign Story
• President Obama made history by his use of emarketing to win the 2008 election.
• Obama’s internet strategies targeted 18-29- year-old
voters because 93% are online.
• His 2012 efforts added higher levels of sophistication,
including the use of social media and mobile
marketing.
– Facebook displayed over 33 million “likes.”
– The Obama YouTube channel had over 286,000
subscribers and 288 million upload views.
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Q. 1. Define Internet.
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Internet
• The internet is a global network of interconnected
networks.
• Data move over phone lines, cables and satellites.
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History of the Internet
1957 – ARPA/DARPA
1970 – ALOHANet
1980 – HOSTS CREATED
1962 – ARPANET
1971 – EMAIL
1990 – HOSTS >100,000
1969 –
UCLA & STANFORD
1973 –
UCLA-LONDON-NORWAY
1991 – HTML
Q. 2. Define E-business.
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E-business
• E-business is the continuous optimization of a
company’s business activities using digital
technology.
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Q. 3. Define E-commerce.
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E-commerce
• E-commerce is the subset of e-business focused
on transactions.
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Q. 4. Define E-marketing.
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E-marketing
• E-marketing is the result of information
technology applied to traditional marketing.
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Q. 5. What are the features of today’s
Internet Climate?
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Today’s Internet Climate (1 of 2)
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E-commerce
Advertising online
Search Engine Marketing (SEM)
User-generated content
Single common platform
Global in scope
Level playing field
Online communities
Personalization
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Today’s Internet Climate (2 of 2)
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Internet communications
Mobile internet access
Local marketing
Marketer transparency
Infrastructure processing
Metrics rule
Always-on
Many-to-many communications network
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E-Marketing Is Bigger than the 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.
• Electronic marketing reaches far beyond the
Web.
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The Web Is Only One Aspect of EMarketing
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E-Marketing Is Bigger than Technology
• Individuals: The internet provides individual users
with convenient and continuous access to
information, entertainment, networking, and
communication.
• Communities form around shared photos (Flickr),
videos (YouTube), and individual or company
profiles (Facebook).
• Businesses: The digital environment enhances
processes and activities for businesses.
• Societies and economies are enhanced through
more efficient markets, more jobs, information
access, communication globalization, and more.
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Global Internet Users
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Internet Communities in 2012
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Q. 6. Discuss the internet infrastructure
stack.
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Infrastructure Stack
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Telecommunications
Website hosting
Internet hardware and software
Website operations
Managed/Applications service providers
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Q. 7. What are the three types of access
to the internet?
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Access to the Internet
– Public internet
– Intranet: network that runs internally in an
organization
– Extranet: two or more joined networks that
share information
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Q. 8. Describe the age of E-marketing.
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E-Marketing’s 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 gold
rush.
– Companies quickly attracted sales and market
share, but negative profits.
– 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-Marketing’s Past:
Web 1.0
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Lower costs
Measurable results
Global reach
Personalization
One-to-ne marketing
Better conversion rates
Twenty-four-hour marketing
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Internet Timeline
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2001 Garner Hype Cycle
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The E Drops from
E-Marketing
• Gartner predicted that the e would drop, making ebusiness just business and e-marketing just
marketing.
• Nevertheless, e-business will always have its unique
models, concepts, and practices.
• The e-marketing landscape is changing rapidly due
to consumer-generated content, mobile internet
access, social media and disruptive technologies.
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E-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.
– Inbound Marketing.
– Customer engagement
– Social media metrics
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Power Shift From Companies To Individuals
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New Technologies
• Wireless networking
and mobile computing.
– 4G is a fourth-generation
high speed wireless
technology.
• Appliance convergence.
– LG internet refrigerator
is many digital
appliances in one.
• Voice navigation.
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The Future: Web 3.0
• Sir Tim Berners-Lee, coinventor of the World Wide
Web, has been working on technology to organize
online data for greater user convenience, i.e., the
semantic Web.
– Users can easily find information based on its
type.
• The value of the semantic Web is information on
demand.
• Experts believe the semantic Web will become a
reality over the next decade.
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The Future: Web 3.0
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Appliance convergence
Loss of distinction
Increase of wireless networking
Semantic web
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Q. 9. What are the opportunities and
challenges of Web 2.0?
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Other Opportunities And Challenges
In Web 2.0
• Internet adoption
matures.
• Online retail sales
matures.
• Search engines are now
reputation engines.
• Content is still King.
• Improved online and
offline strategy
integration.
• Intellectual capital rules.
• High broadband
adoption at home
• The long tail.
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Evolution from Web 1.0 to Web 3.0
Web 1.0
Content creator (cc)
Consumer (c)
cc & c
Web 2.0
cc & c
cc & c
cc & c
cc & c
Web 3.0
Semantic Web
@
agent
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cc & c
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Internet-time Analogy
3500 BC Sundial
1583 AD
Pendulum
1600’s
Mechanical
1929 Quartz
Crystal
1949 Atomic
Internet is
here in 2013
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Stepping Stones to Web 3.0
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Higher bandwidth
Faster connection speeds
Artificial intelligence
Seamless social networking
Modular Web applications
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Q. 10. What are the 10 driving principles
of the new internet economy?
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Driving principles (1 of 2)
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Information equals value
Distance no longer matters
Speed is the essence of internet business
People are the key assets of internet businesses
Growth rates are based on network nature of businesses
Value in a network rises exponentially with market share
Market power is determined by skill in managing
information
• Dramatic shift in the direction of customers
• Customization
• Era of instant gratification is upon us.
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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.
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