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ELC 310 DAY 2

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Agenda

• Questions

• Roll Call

• Textbook issues

• Student Contracts

• Assignment 1 posted in WebCT, due in two weeks due

• Introduction to eMarketing

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E-marketing Defined

• The use of information technology • to create, communicate, and deliver value to

customers.• for managing customer relationships to benefit the

organization.

• The result of information technology applied to traditional marketing.

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E-Business, E-Commerce, andE-Marketing

• 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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The Internet

• A global network of interconnected networks.

• E-mail and data files move over phone lines, cables and satellites.

• Three types of networks form part of the Internet:• Intranet: network that runs internally in an

organization.• Extranet: two joined networks that share

information.• Web: how most people refer to the Internet.

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The Web Is One Aspect of E-Marketing

E-mail

Internet

UPC Scanner

PDA

Cell Phone

Web

PC

Television Refrigerator

Database

Automobile

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Past, Present, and Future

• The first generation of e-business was like a gold rush.

• From 2000-2002, over 500 Internet firms shut down in the U.S.

• Almost 60% of dot-coms were profitable in the fourth quarter of 2003.

• Today, the Internet is mainstream in industrialized nations.• 20 nations comprise 90% of all Internet users.

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Technology Peak of Trough of Slope of Plateau of Trigger Inflated Disillusionment Enlightenment Profitability Expectation 1990-1996 1999 2000 2001 2002 2003 2004 2005 2006 Equity Times Debt Times Positive Cash Flow

Visibility

Dot-Com Peak

U.S. Recession

E-Business Becomes “Just

Business”

E-Business Recovery Is Sweet

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E-Marketing Today

• Power shift from sellers to buyers

• Marketing fragmentation: mass market to one customer

• Death of distance

• Time compression

• Knowledge/database management is key

• Marketing and technology: an interdisciplinary focus

• Intellectual capital is important resource

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Consumer Control

• New technologies such as personal video recorders (PVRs) and TiVo will increase consumer control. • Convergence of television, radio, print, etc. • Customer-controlled entertainment, and shopping

on demand.

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Improved Internet Strategy Integration

• Organizations will integrate information technology seamlessly into marketing strategy.• Multichannel marketing: Web site, retail store, and

catalog• Integration of inventory databases• Integration of customer service across channels

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Refined Metrics

• Internet provides great deal of data, not all of which is very useful.

• Tracking customer acquisition cost (CAC) and other key metrics is a critical marketing function still in its infancy.

• Future metrics will provide better measures of performance, return on investment, etc.

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Wireless Networking Increases

• 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

• 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 position systems (GPS) allow in-car

communication and entertainment.

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Semantic Web

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.

• http://www.w3.org/2001/sw/

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Internet-Time Analogy

1949 Atomic1929 Quartz Crystal 1600’s Mechanical1583 AD Pendulum3500 BC Sundial

Web is here in 2004