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Electronic Marketing
Chapter 20
The Future of Electronic Marketing
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Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
What the Future Holds
• In the context of marketing technology, convergence is the
coming together of two or more disparate disciplines or
technologies to provide systems of greater benefit
– The fax revolution was produced by a convergence of
telecommunications technology, optical scanning technology, and
printing technology
– NGI technology will provide technology for transmission of video
components, videoconferencing, video storage, video
broadcasting, video delivery of satellite or cable television
programming over broadband networks, and video signal
switching from Asynchronous Transfer Mode (ATM) to other types
of networks such as ATM-to-Ethernet, the Internet system wired
into many college dormitories throughout the nation
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
• The Internet using a modem and telephone line is a simple,
analog conversation occurring between two digitally minded
machines
• Telephones have traditionally used analog technology,
which refers to electronic transmission accomplished by
adding signals of varying frequency to carrier waves of a
fixed frequency of alternating electromagnetic current
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
Modulation
– A modem is used to convert the digital information in the
computer to analog phone signals for the phone line and to
convert analog phone signals to digital information for the
computer
– Basically, the modem is the translator of the digital to the
analog technology and herein lies the problem
– Traditionally, telecommunications technology had leveraged
the highly predictable nature of voice data and delivered this
data efficiently by using dedicated circuits operating at a fixed
bandwidth
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
Modulation continued…
– The mode of delivery is through what is known as circuit
switching technology, which is the foundation of the telephone
network
– Telecommunications companies are now embracing networks
capable of high-speed transmission of images – broadcast
television and cable
– The networks to support the new technology have remained in
a separate domain
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
• The method of transmitting this data uses what are called
packet switching techniques, where small parcels of data
are transmitted individually across digital communications
networks, typically known as Local Area Networks (LANs) or
Wide Area Networks (WANs)
• There is now an increasing recognition that technology is
required that is capable of meeting both styles of operation
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
• The strengths of the telecommunication approach in
network management and control have become extremely
attractive to the computing community, where network
problems, even outages, result from the use of protocols, or
standards of transmitting data that are not ideally suited to
such situations
• A variety of new standards are being created to address the
current deficiencies
• A new network protocol known as Asynchronous Transfer
Mode (ATM)
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
ATM
• Provides for a signal network service capable of supporting
video, voice, and data transmission needs in a flexible and
responsive way, and incorporates the following capabilities:
– Much higher transmission capabilities
– Flexibility and versatility
– Universality and adaptability
• The ability to meet the needs of each segment of the
corporate network
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
ATM continued…
• Implies far-reaching institutional as well as technological
changes
– Standards development continues
– The order of implementation of ATM technology will be the
Metropolitan Area Network (MAN) level in the
institutional/educational campus context, followed by the Wide
Area Network (WAN) level, then the corporate Local Area
Network (LAN), then finally the work group and desktop level
implementations
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Overview of ATM in the Context of
NGI
ATM continued…
• Represents a major component of NGI since it brings internetworking potential of the Internet together with the
management capabilities of high-capacity transmission
within the traditional telecommunications industry
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
NGI in the Context of Marketing to
Consumers
• Internet had placed great strains on the ability of companies
to deliver what their marketing promised
– Internet bottleneck problem
– Quality of service has thus become the problem with today’s
Internet
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• Internet2 is a part of the NGI to rededicate a
communications network linking research universities as
the original Internet was purposed
• The Internet2 project is bringing focus, energy, and
resources to the development of a new family of advanced
applications to meet emerging academic requirements in
research, teaching, and learning
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• Internet2 universities, working with industry, government, and
other research and education networking organizations, are
addressing the major challenges facing the next generation of
university networks by:
– Creating and sustaining a leading edge network capability for the
national research community
– Directing network development efforts to enable a new generation
of applications to fully exploit the capabilities of broadband
networks
– Working to rapidly transfer new network services and applications
to all levels of educational use and to the broader Internet
community, both nationally and internationally
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• The goals of the Internet2 project include the following:
– Enable a new generation of applications
– Recreate a leading edge research and education network
capability
– Transfer new capabilities to the global production Internet
– Demonstrate new application that can dramatically enhance
researchers’ abilities to collaborate and conduct experiments
– Demonstrate enhanced delivery of education and other
services by taking advantages of “virtual proximity” created by
an advanced communications infrastructure
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• Goals continued…
– Support development and adoption of advanced applications
by providing middleware and development tools
– Facilities development, deployment, and operation of an
affordable communications infrastructure, capable of
supporting differentiated Quality of Service (QOS) based on
applications requirements of the research and education
community
– Promote experimentation with the next generation of
communications technologies
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• Goals continued…
– Coordinate adoption of agreed working standards and common
practices among participating institutions to ensure end-to-end
quality of service and interoperability
– Catalyze partnerships with governmental and private sector
organizations
– Encourage transfer of technology from Internet2 to the rest of
the Internet
– Study impact of new infrastructure, services, and applications
on higher education and the Internet community
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet2 Project
• Perhaps the Internet2 will bring resources of
communications technology and networking delivery
technology
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Evolution of Technology
• If the NGI will provide much relief to the problems of
bandwidth, thus speeding up data transmission and
reducing download time, what technology would interest the
e-marketer?
• The hardware developers are pursuing compact, mobile,
hand-held devices containing wireless transmission similar
to a cellular telephone in function and a Palm Pilot-like
computer size
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Evolution of Technology
• An Internet appliance that would serve consumers and
businesspeople alike will probably have most of the following
features:
– Internet-ready connections
– Color screen for daylight viewing
– Sufficient power for processing
– Voice recognition capabilities with pen-touch stylus
– Memory for storage of text and graphical documents
– Cellular telephone for upload and replication capabilities
– Ear and mouth piece, possibly a headset, to eliminate noise, static,
and interference
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Evolution of Technology
• IBM has made a pledge to eliminate the keyboard within five
years to facilitate speech-activated technologies
• The marketer will gain the capability of sending information
to the consumer as the consumer logs on to his PC or
Internet appliance via Internet push technology
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Expansion in Imaginative
Software
• E-commerce software of the future will be constructed for
one of two purposes:
– To provide knowledge and convenience to the individual
consumer
– To provide knowledge and competitive advantage for the
company through business systems
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Expansion in Imaginative
Software
• To attract the consumer, creative and service-oriented Web
sites will render information with several platforms:
– Entertainment
– Humor
– Rational information
– Factual comparison
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Expansion in Imaginative
Software
• Software applications, the primary building components of
Web sites, are expected to be online virtual reality
simulations including:
– Virtual Reality Modeling Language (VRML)
– Three-dimensional graphic tools
– Web browsers that can display these “virtual spaces”
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Expansion in Imaginative
Software
• Cyberspace is proving to be a viable place for marketing
venues such as industry conferences
• Virtual reality technology (VRML) will become increasingly
important as Internet-based content is available over cable
modems and other inevitable high-speed delivery systems
• Software systems for the business-to-business organization
will stress interconnectivity, bringing people and functions
together over the Internet
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Expansion in Imaginative
Software
• The VRML Web site will be the base for e-commerce
• VRML programs will also assist the company in employee
training and product sales demonstrations
• Portal sites should continue to mature
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Success of Internet
Acquisitions and Mergers
• The late 1990s saw a flurry of interest in Internet properties
by investors and Internet competitors that caused a merger
and acquisition frenzy
• These acquisitions totaled in the multi-billion dollar range,
and many investors were uncertain of the true value of
Internet business
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Persistence in Serving the
Customer
• Competition will drive marketers to search for competitive
advantages
• They will leverage the strength of the Internet medium –
speed, accuracy, accessibility, personalization, and
interactivity to the consumer and will serve marketers in
ways unimaginable as they delve into information delivery
and applying the same framework as they develop creative
promotional programs as well as information dissemination
• The marketer will need to be schooled in a new “science” of
Internet media habits, a topic dating only from the midnineties
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Persistence in Serving the
Customer
• The marketer must give consideration to user-friendly
marketing processes
– Do things in as few ways as possible
– Design systems for a hundred times the possible current load
– Move quickly but cautiously on new technology, and don’t
jump on the newest and coolest just because it’s new and cool
(Investigate technology, but don’t forsake the customer’s best
interest)
– Put your best people closest to the money even those aren’t
typically the highest-paying positions
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Persistence in Serving the
Customer
• Customer concerns will continue
– Security remains one of the top reasons Web users report for
not purchasing over the Web
• Not trusting that my credit card number will be secure (46%)
• Not being able to judge the quality of the product (39.3%)
• Not trusting that personal information will be kept private (26.9%)
• Being able to find the product faster/easier by shopping locally
(22.6%)
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Persistence in Serving the
Customer
• Customer concerns continued…
– Supporting the notion that the Web has become an important
tool to access information
– 84% of the users report that they consider access to the Web
indispensable, nearly the same percentage as those who feel email is indispensable
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Persistence in Serving the
Customer
• Commerce overconfidence
– E-marketing is not the easy way out, only innovative strategy
amid the hard work of marketing
– E-marketing’s efforts must be integrated among traditional
promotional and sales programs to enhance the synergy
gained by attentive and sensitive marketing activities
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Bill Gates’ Twelve New Rules
• “The successful companies of the next decade will be the
ones that use digital tools to reinvent the way they work.”
To make digital information flow as an intrinsic part of your
company, here are twelve key ways:
– Insist that communication flow through e-mail
– Study sales data online to share insights easily
– Shift knowledge workers into high-level thinking
– Use digital tool to create virtual teams
– Convert every paper process into a digital process
– Use digital tools to eliminate single-task jobs
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Bill Gates’ Twelve New Rules
• Key ways continued…
– Create a digital feedback loop
– Use digital systems to route customer complaints immediately
• Focus on your most unhappy customer
• Use technology to gather rich information on their unhappy
experiences with your product and to find out what they want you
to put into their product
• Use technology to drive the new to the right people in a hurry
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Bill Gates’ Twelve New Rules
• Key ways continued…
– Use digital communications to redefine the boundaries
– Transform every business process into just-in-time delivery
– Use digital delivery to eliminate the middle man
– Use digital tools to help customers solve problems for
themselves
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo