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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Internet Marketing & e-Commerce
byProfessor Freddy Lee
Requests for permission to copy any part of the material should be addressed to:
PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS
5109 Natorp BoulevardMason, OH 45040
Phone: (800) 423-0563
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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Syllabus and Introduction
• Objectives• Grading• Schedule• Project
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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Part One: Chapter OneIntroduction
“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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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Origins of the Internet
• Researchers began work in 1960s
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© 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
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© 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
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© 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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© 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
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© 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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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
The Virtuous Cycle and The Internet Boom
Web Content
Popular
Fascination
Consumer
and Business
Internet Access
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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 cost-effective marketing plans allowed the dot-com era to take root
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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
What Lies Ahead
• Just 15 percent of the world’s 6.3 billion population is online
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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
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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© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
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
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© 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
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© 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
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© 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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© 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
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© 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
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© 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
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© 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:
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© 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
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© 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
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© 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