Dr Ahmad Khraiwish

E-M ARKETING
C HAPTER 1
1-2 C HAPTER 1 O BJECTIVES
 After reading Chapter 1, you will be able to:
 Explain how technological and (I T) advances offer benefits
and challenges for customers, businesses, and society.
 Distinguish the differences between e-business and e-
marketing.
 Describe the composition of the internet, intranets,
extranets, and web.

 Explain how increasing buyer power affect marketing

practices.

 Identify the difference between information (content) and the

devices used to receive it.
1-3 I NTERNET 101

 Internet: is a global network of interconnected

sub-networks of organisations, governments,
and individuals.
 Each computer or device operating on this
network can be accessed by other computers
operating on the same network, and all facilities
can share data.
 Data can be shared and moved via phone lines,
cables, satellites.
1-4

 Consequently, we can conclude that the

internet has three roles:
 Content provider to create information and
entertainment that reside on computers
systems.
 Serving users/client computer who access the
content and send data over the network.
 Technological infrastructure to move, view, and
listen to the content.
1-5

 To understand the preceding roles we can

say content providers (marketer) can
create and send digital information
through infrastructures (systems & e-
applications that make the
communication possible ) to users who
receive it as information, entertainment
on many types of devices.
1-6

 Three types of networks:

 Intranet: mini internet restricted for the
internal use of a particular organisation.
 Extranet: two or more intranets that are
combined together (e.g. two firms or a
firm and its supplier link their intranets,
they would have an extranet).
 Public internet (global network).
1-7
E- BUSINESS , E- COMMERCE ,
E- MARKETING
 E-business is the continuous
optimisation of a firm’s business
activities through digital technology.
 E-commerce is the subset of e-
business focused on transactions.
 E-marketing is the result of
information technology applied to
traditional marketing.
1-8 W HAT IS E- MARKETING ?

 E-marketing is the use of information technology in

process of creating, communicating, and delivering
value to customers, and for managing customer
relationships in a way that benefits the
organisation and it’s stakeholders.
 E- marketing affects traditional marketing practices
in two ways:
1. Enhancing the efficiency and effectiveness of
current traditional marketing functions.
2. Transforming and creating new marketing
strategies, through creating new business models
and marketing applications (social media for
instance).
1-9
E-M ARKETING I S B IGGER
THAN THE W EB
 Web: is what most people think about when talking
about internet. A portion of internet that supports
the connection between internet user and a
browser.
 E-marketing goes far beyond the web, evidences are
as follows:
 Some e-marketing technologies that used in
marketing applications (CRM, electronic data
interchange arrangements) have emerged before
the web.
 Non-web communications are effective tools for
marketing. (TVs, radios, mobiles (calls & texts), and
electronic vending machines).
1-10

 Internet can deliver many types of

information (text, graphics, and audio) to
many information-receiving devices other
than PCs (TVs, Radio, Mobiles).
 Many offline data collection devices can send
and receive data about the company’s
customers & products over an intranet.
(barcodes scanners and databases).
1-11 E- MARKETING EFFECTS

 The union of technology and marketing has

created a significant impact on many levels:

A. Individuals: have became more powerful &

informative as the internet has provided with a
convenient and continues access for the needed
information.
B. Communities: creating new virtual
communities, as the internet brings together
business partners and consumers from far-away
geographical areas.
1-12

C. Businesses: the digital environment enhances

processes and activities for businesses (internet
can be used to recruit prospect employees).
D. Societies: digital information & I T have
contributed to enhancing societies welfare &
convenience. (e.g. more efficient markets,
easier job hunting, lower barriers to foreign
trade and increased information access)
 The internet connected all societies together
and made them as one global village.
1-13 G LOBAL I NTERNET U SERS
1-14 G LOBAL I NTERNET U SERS
1-15
E-M ARKETING ’ S PAST:
W EB 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.
 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.
 I NTERNET T IMELINE
1-16
1-17
M ARKETING I MPLICATIONS OF
I NTERNET T ECHNOLOGY

 Only marketers who grasps/understand

internet properties are in a better
position to accept the integration of IT
into marketing practices.
 What are these properties and what are
their marketing applications/benefits?
1-18
M ARKETING I MPLICATIONS OF
I NTERNET T ECHNOLOGY
1-19
M ARKETING I MPLICATIONS OF
I NTERNET T ECHNOLOGY
1-20
M ARKETING I MPLICATIONS OF
I NTERNET T ECHNOLOGY
1-21
M ARKETING I MPLICATIONS OF
I NTERNET T ECHNOLOGY
1-22
E-M ARKETING TODAY:
W EB 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.
 Consumers trust each other more than
companies.
 Market and media fragmentation.
 Online connections are critical (it’s
about whom you know online and what
they say about you).
 POWER SHIFT FROM COMPANIES
1-23
TO INDIVIDUALS
1-24
E-M ARKETING TODAY:
W EB 2.0
 The suggested strengths of internet are as
follow:
 Provides a research resource for buyer,
sellers, and learners.
 Elevates and extends strong existing
brands.
 Is a cost-effective for customers, self-
service & ongoing business form.
 Allows unprecedented one-one &
personalised communications.
1-25
A CQUIRING A C USTOMER
FROM S OCIAL M EDIA
 OTHER OPPORTUNITIES AND
1-26
CHALLENGES IN WEB 2.0

 Internet adoption  Improved online

matures. and offline strategy
integration
 Online retail sales
reach 4% of all sales  Intellectual capital
(is growing) rules
 Search engines are  60% broadband
now reputation adoption at home
engines.
 The long tail
 Content is still king.

26
1-27 T HE F UTURE : W EB 3.0

 Lines between traditional and new media are

blurring.
 Appliances are converging and becoming “smart.”
 Wireless networking is increasing.
 Semantic web will provide worldwide access to
data on demand without effort.
 It’s not a replacement of the web, but rather an
enhancing of it.
1-28
H OW DO EXPERTS
CHARACTERISE W EB 3.0?

 Mobile device will be the primary Internet

connection tool by 2020.
 Interactive media will cannibalise traditional
media.
 Web 3.0 will ultimately be seen as applications
which are pieced together…run on any
device…are very fast…are distributed virtually.
1-29
S TEPPING S TONES TO W EB
3.0
 Wearable computing will deliver data into goggles, wristbands, and
other devices.

 Mobile devices will someday be the primary device for internet

access.

 3D printing is already available and close to hitting the consumer

market.

 Distance online education will become dominant in the future.

 Big data / IoT

 Google wallet/ apple pay will become everywhere.

 Cloud computing will continue to grow .

 Augmented reality is a combination of computer and real word data.