M K T- 3 3 0

C TU R E-1 (PA ST, P R ESENT, AND FUTURE)

LE
AN (EHN)
PREPARED BY: EHFAZ NOWM
 LETS TAKE A STEP BACK …
THE FUNDAMENTAL MARKETING IDEOLOGIES HAVE NOT CHANGED. THE
GROWTH OF DIGITAL MEDIA HAS NOT COMPLETELY REDESIGNED THE CORE
CONCEPT OF MARKETING RATHER IT PRESENTS AN ADDITIONAL SCOPE OR A
VEHICLE FOR US TO KNOW AND REACH OUR CUSTOMERS BETTER.

CUSTOMERS
THE MARKETING PROCESS (FIGURE 1.3, KOTLER ET AL, 2009)
E-MARKETING - DEFINITION

• “E/DIGITAL-MARKETING IS THE USE OF INFORMATION TECHNOLOGY FOR THE MARKETING ACTIVITY, AND
THE PROCESS FOR CREATING, COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE
VALUE FOR CUSTOMERS/ CLIENTS / PARTNERS, AND SOCIETY AT LARGE.” (STRAUSS & FROST, 2012, P. 28)
STRATEGY AND THE INTERNET
REF: PORTER (2003). STRATEGY & INTERNET. HARVARD BUSINESS REVIEW.

• “THE INTERNET IS NO MORE THAN A TOOL – ALBEIT A POWERFUL ONE – THAT CAN SUPPORT OR DAMAGE YOUR
FIRM’S STRATEGIC POSITIONING” (PORTER, 2003, P.1)

• INTERNET DOES NOT RENDER ESTABLISHED RULE ABOUT STRATEGY OBSOLETE.

• CREATE NEW INDUSTRIES, RECONFIGURE EXISTING ONE (PORTER, 2003)

• SHOULD TRADITIONAL METHODS OR THE INTERNET BE USED TO COMPETE?

 GROUNDSWELL

SOCIAL STRATEGY DEVELOPMENT - “ DON'T JUMP INTO SOCIAL MEDIA JUST BECAUSE EVERYONE
ELSE SEEMS TO BE DOING IT ”

• PEOPLE
• OBJECTIVE P.O.S.T approach
• STRATEGY
• TECHNOLOGY

• HTTP://WWW.SLIDESHARE.NET/BNIXON/GROUNDSWELL-POST-PROCESS-PRESENTATION
P: STUDY YOUR PEOPLE

The social technographics ladder

O: WHY ARE YOU IN THE DIGITAL SPACE?

• O EQUALS OBJECTIVES, “DECIDE WHAT YOU WANT TO ACCOMPLISH -

“ARE YOU STARTING AN APPLICATION TO LISTEN TO YOUR CUSTOMERS,
OR TO TALK WITH THEM? TO SUPPORT THEM, OR TO ENERGIZE YOUR
BEST CUSTOMERS TO EVANGELIZE OTHERS? OR ARE YOU TRYING TO
COLLABORATE WITH THEM?”
Collaborate
Talk
Listen

Support
Energize
Evangalize
S: HOW RELATIONSHIPS WITH CUSTOMERS WILL
CHANGE

• IS YOUR BUSINESS COMPLETELY SHIFTING ONLINE OR PARTIALLY?

• WHAT ACTIVITIES CAN BE TRANSLATED TO ONLINE AND WHAT ARE THE
BENEFITS?

• FOOD FOR THOUGH: DOES ONLINE TO OFFLINE HAPPEN?

T:ECHNOLOGY
OPPORTUNITIES THAT INTERNET TECH HAS TO OFFER
• LOWER COST
• TRACKABLE, MEASURABLE RESULTS
• GLOBAL REACH
• PERSONALIZATION
• ONE TO ONE MARKETING
• MORE INTERESTING CAMPAIGN
• BETTER CONVERSION RATE
• 24HR MARKETING
WHAT FUNDAMENTAL CHANGES HAS
THE INTERNET BROUGHT TO
MARKETING?
HOW IMPORTANT IS THE INTERNET IN MARKETING?
• REF: BARWISE, ELBERSE & HAMMOND (2006). “MARKETING AND THE INTERNET” IN HANDBOOK OF MARKETING.

• FASTER, CHEAPER, MORE PERSONALIZED INTERACTIONS (CUSTOMER TOUCHPOINTS)

• REDUCES CUSTOMER SEARCH COSTS (HIGH INVOLVEMENT / LOW INVOLVEMENT PRODUCT)
• SEAMLESS COMMUNICATION OVER ANY DISTANCE
• EVERYWHERE, ANYTIME 24/7!
• TRANSFORMS A PREDOMINANTLY ONE-WAY BROADCAST MODEL (ACTIVE NOT
PASSIVE/INBOUND VS OUTBOUND MARKETING)
CUSTOMER SEARCH COST
CUSTOMER RELATIONSHIP
Customer engagement is about encouraging
your customers to interact and share in the
experiences you create for them as a business
and a brand. When executed well, a strong
customer engagement strategy will foster brand
growth and loyalty.
Businesses that focus on customer engagement
are focused on value creation, not revenue
extraction. They give people something
meaningful beyond a sales pitch: a brilliant end-
to-end customer experience, great content, or
interactive, real-time customer support.
WAYS
•
TO BETTER ENGAGE
1 TREAT YOUR CUSTOMERS RIGHT

• 2. DON’T COME ON TOO STRONG – RESPECT YOUR CUSTOMERS

• 3. ALWAYS LISTEN – HEAR WHAT YOUR CUSTOMERS ARE SAYING (SURVEYS, FGD ETC)

• 4. CONTINUE TO SATISFY – OFFER ONGOING SUPPORT AND SPECIALS.

• 5. TREAT A CUSTOMER LIKE A VALUED PARTNER

• 6. BUILD TRUST – ALERT CUSTOMERS TO LARGE SCALE CHANGES, GOOD OR BAD

• 7. BE TRANSPARENT – HONESTY IS CRUCIAL WHEN IT COMES TO MISTAKES

• 8. FOLLOW THROUGH ON YOUR WORD – FOLLOW UP ON PROMISES

• 9. RECOGNIZE RESPONSIBILITY – THE CUSTOMER IS ALWAYS RIGHT

• 10. ALWAYS SAY “THANK YOU” – KINDNESS AND GRATITUDE WILL TAKE YOU FAR
WHAT FUNDAMENTAL CHANGES HAS THE INTERNET BROUGHT TO MARKETING?

(REF: TEXTBOOK)

• THE BALANCE OF POWER

• MARKET FRAGMENTATION-
• HTTP://WWW.DELL.COM/EN-US/SHOP/CATEGORY/LAPTOPS?~CK=MN

• DEATH OF DISTANCE

• TIME COMPRESSION

• CRITICAL KNOWLEDGE MANAGEMENT

• INTERDISCIPLINARY FOCUS
 E-MARKETING TODAY:
OPPORTUNITIES & CHALLENGES

• POWER SHIFT FROM SELLERS TO BUYERS.

• CONSUMERS TRUST EACH OTHER MORE THAN COMPANIES: HTTPS://WWW.TRIPADVISOR.COM/HOTEL_REVIEW-

G60022-D654141-REVIEWS-THE_RIDGE_HOTEL-LAKE_GENEVA_WISCONSIN.HTML#REVIEWS

• ENGAGEMENT, PARTICIPATION AND CO-CREATION

• IMPROVED ONLINE AND OFFLINE STRATEGY INTEGRATION : FOOD PANDA/ HUNGRY NAKI

• THE LONG TAIL

 E-MARKETING’S PAST: WEB 1.0
• 1969: THE INTERNET STARTED AS THE ARPANET(A DIVISION OF THE U.S. DEFENSE DEPARTMENT), A NETWORK FOR
ACADEMIC AND MILITARY USE.

• •1990’S: COMMERCIALIZATION OF THE WEB

COMMERCIALIZATION BEGAN WHEN TIM BERNERS-LEE’S INTRODUCED THE ABILITY FOR LINKS TO BE MADE BETWEEN
VARIOUS PIECES OF INFORMATION

• 1993: CONTINUED IN 1993 WITH RELEASE OF HTML

EARLY BROWSER WARS BETWEEN NETSCAPE AND INTERNET EXPLORER PUT IE IN DOMINANT POSITION
REF: PRINCIPLES OF INTERNET MARKETING: NEW TOOLS AND METHODS FOR WEB DEVELOPERS
 E-MARKETING’S PAST: WEB 1.0
• COMMERCIALIZATION OF THE WEB (1990’S) (CONTINUED)
• WEB GROWTH PROPELLED BY INCREASE IN COMPUTER OWNERSHIP, FALLING TECH PRICES AND LOW INTEREST RATES
• ONLY 19,000 SITES IN MID-1990’S, COMPARED TO 176M IN 2008

• IMPORTANCE OF VENTURE CAPITALISTS

• INVESTED OVER $10 BILLION IN 1996, MOSTLY TO TECH COMPANIES

• MASSIVE ECONOMIC GROWTH

• WEB INVESTMENTS FUELED THE STOCK MARKET TO NEW PEAKS IN 2000
• TECH-RELATED GROWTH HELPED DRIVE UNEMPLOYMENT RATE TO 40 YEAR LOW OF 3.8%

• MASSIVE WEB GROWTH OF THE 1990’S KNOWN AS THE “WEB BUBBLE”

• REF: PRINCIPLES OF INTERNET MARKETING: NEW TOOLS AND METHODS FOR WEB
DEVELOPERS
THE BURSTING OF THE BUBBLE (DOT.COM BUST)
• THE BURSTING OF THE BUBBLE
• AROUND 2000, INVESTORS BECAME ANXIOUS FOR PROFITS FROM WEB COMPANIES

• HIGH PROFILE BANKRUPTCIES OF ETOYS AND WEBVAN CAUSED INVESTORS TO SELL, CAUSING STOCK MARKET
TO PLUMMET ENDING MANY WEB COMPANIES

• OTHER KEY FAILURES INCLUDED:

• PETS.COM
• KOZMO.COM (ORDER ABSOLUTELY ANYTHING FOR FREE DELIVERY)
• FLOOZ.COM (NEW, ONLINE CURRENCY)
• REF: PRINCIPLES OF INTERNET MARKETING: NEW TOOLS AND METHODS FOR WEB DEVELOPERS
 E-MARKETING’S PAST: WEB 1.0

• KEY POINTS IN WEB HISTORY, BETWEEN 1991 - 2001:

• 1993: CERN DECIDES TO MAKE WEB TECHNOLOGY AND CODES FREE FOR ALL TO USE
• 1995: AMAZON.COM IS LAUNCHED
• 1995: INTERNET EXPLORER INTRODUCED
• 1998: GOOGLE LAUNCHED
• 2000: DOW JONES AND NASDAQ MARKETS REACH THEIR PEAK
• 2001: WIKIPEDIA IS LAUNCHED
• 2001: ETOYS AND WEBVAN BANKRUPTCIES SPARK THE END OF THE WEB BUBBLE
 WEB GROWTH DESPITE BUBBLE BURSTING

•WEB GROWTH DESPITE BUBBLE BURSTING

•MARKET CRASHED DID NOT DIMINISH WEB’S IMPORTANCE;
IT SIMPLY WEEDED OUT BAD IDEAS

•E-COMMERCE GREW FROM $27M IN 2000 TO $139M IN

2008
 KEY POINTS IN WEB HISTORY, FROM 2002 FORWARD

• 2002: RELEASE OF FLASH PLAYER 6

• 2003: LAUNCH OF MYSPACE SOCIAL NETWORK
• 2004: AMAZON.COM ANNOUNCED FIRST ANNUAL PROFIT
• 2004: ?
• 2005: YOUTUBE

TRANSFORMATION OF WEB
• WEB 1.0: CONNECT PEOPLE TO COMPUTER NETWORKS
• WEB 2.0?
 E-MARKETING TODAY: WEB2.0

• WEB 2.0: “A SET OF APPLICATIONS AND TECHNOLOGIES THAT ALLOWS USERS TO CREATE, EDIT AND DISTRIBUTE
CONTENT; SHARE PREFERENCES, BOOKMARKS, AND ONLINE PERSONAS; PARTICIPATE IN VIRTUAL LIVES; AND BUILD
ONLINE COMMUNITIES.”
(LAUDON AND TRAVER, 2011, E-COMMERCE: BUSINESS, TECHNOLOGY, SOCIETY. 7TH ED., PEARSON)

• •EXAMPLES OF WEB2.0 APPLICATIONS & SITES

 E-MARKETING TODAY: WEB2.0

• WHAT DO ALL THESE WEB 2.0 APPLICATIONS AND SITES HAVE IN COMMON? (LAUDON AND TRAVER, 2011, E-
COMMERCE: BUSINESS, TECHNOLOGY, SOCIETY. 7TH ED., PEARSON)

• USER- AND CONSUMER-GENERATED CONTENT

• EASY SEARCH CAPABILITY
• HIGHLY INTERACTIVE
• RELY ON BROADBAND CONNECTIVITY
• ATTRACT LARGE AUDIENCES
AS A CONSUMER WHO IS IN CONTROL, WHAT
WOULD YOU LIKE TO SEE FOR THE FUTURE WEB
3.0?
WHAT’S NEXT - WEB 3.0 ?
 SEMANTIC WEB
http://www.w3.org/2001/sw/