Internet Marketing & e-Commerce
Ward Hanson
Kirthi Kalyanam
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Part One: Chapter One
Introduction
“The goal is to move from the current situation of
complexity and frustration to one where technology serves
human needs invisibly, unobtrusively: the human-centered,
customer-centered way.”
Donald Norman, The Invisible Computer
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Origins of the Internet
• Researchers began work in 1960s
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Origins of the Internet
• Researchers began work in 1960s
• Two key early adopters:
– University instructors and researchers
– The United States military
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Origins of the Internet
• Researchers began work in 1960s
• Two key early adopters:
– University instructors and researchers
– The United States military
• Governed initially by the National
Science Foundation, which prohibited
all commercial transactions
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
The Internet Goes Mainstream
• Email propelled the Internet off campus
and outside the military
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The Internet Goes Mainstream
• Email propelled the Internet off campus
and outside the military
• Government regulation dissolved in
early 1990s
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
The Internet Goes Mainstream
• Email propelled the Internet off campus
and outside the military
• Government regulation dissolved in
early 1990s
• By 1994, the Internet had gone
commercial
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The Virtuous Cycle
and The Internet Boom
Consumer
and Business
Web Content
Internet Access
Popular
Fascination
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Booms and Busts
• Fascination with the web also led to an
infusion of investment capital
• Aggressive, expensive battle for
customers doomed many start-ups
• Greater discipline and more costeffective marketing plans allowed the
dot-com era to take root
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What Lies Ahead
• Just 15 percent of the world’s 6.3
billion population is online
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What Lies Ahead
• Just 15 percent of the world’s 6.3
billion population is online
• And the dominance of American
users is steadily shrinking
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Growth Potential in Developing Countries
Top countries for Internet use, 2004
*New to list in 2004
Source: CIA Factbook
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New Technologies,
New Opportunity
• Advanced Connection Devices – from cell
phones to home wireless systems – increase
the potential online consumer audience
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
New Technologies,
New Opportunity
• Advanced Connection Devices – from cell
phones to home wireless systems – increase
the potential online consumer audience
• Faster Internet Connections bring marketing
messages to the audience more swiftly
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
New Technologies,
New Opportunity
• Advanced Connection Devices – from cell
phones to home wireless systems – increase
the potential online consumer audience
• Faster Internet Connections bring marketing
messages to the audience more swiftly
• New Information Appliances, such as Apple’s
iPod, integrate technology advances with
specific consumer demands
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
A Shift for Marketing
• From “Selling the Brand” – The old
model emphasized on mass production
and a promoting a distinct brand
• To “Managing the Consumer” – Online
marketing puts focus on the customer’s
individualized interests and demands
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Marketing the World’s Game Online
• Static websites provide basic
information and game broadcasts
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Marketing the World’s Game Online
• Static websites provide basic
information and game broadcasts
• Dynamic websites allow greater fan
interaction and facilitate ecommerce
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Marketing the World’s Game Online
• Static websites provide basic
information and game broadcasts
• Dynamic websites allow greater fan
interaction and facilitate ecommerce
• Personalized websites respond to
individualized fan interaction
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Marketing the World’s Game Online
• Static websites provide basic
information and game broadcasts
• Dynamic websites allow greater fan
interaction and facilitate ecommerce
• Personalized websites respond to
individualized fan interaction
• Keyword Advertising links fans to
potential travel and tourism sites
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Rethinking Marketing Strategy
Three General Purposes Technologies form the
foundation of Internet marketing and pave the way
for greater innovation:
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Rethinking Marketing Strategy
Three General Purposes Technologies form the
foundation of Internet marketing and pave the way
for greater innovation:
• The Digital Revolution
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Rethinking Marketing Strategy
Three General Purposes Technologies form the
foundation of Internet marketing and pave the way
for greater innovation:
• The Digital Revolution
• Networking
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Rethinking Marketing Strategy
Three General Purposes Technologies form the
foundation of Internet marketing and pave the way
for greater innovation:
• The Digital Revolution
• Networking
• Individualization
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation