|
Chapter 1: Past, Present, and Future Learning Objectives e-marketing Landscape
|
| bet | 8/10 | | Sana | 24.03.2021 | | Hajmi | 72 Kb. | | #13432 |
II. E-Marketing’s Past: Web 1.0
Arpanet started in 1969 by the US Department of Defense. The first webpages and browsers appeared in 1993. The boom and bust of the first generation of e-businesses was similar to a gold rush. Companies saw large sales and gained market share, but only a few showed any profits. A majority of firms had explosive sales growths, but very few had any success in the bottom line. In just under two years between 2000 and 2002, over 500 Internet firms shut down in the United States alone. Online companies have changed the structure of several industries, but marketers have returned to relying on well-grounded strategies and sound marketing practices.
.
The “E” Drops From E-Marketing
Contradicting views
Some say that E-business has become just business. E-commerce has become just commerce. The new economy had become just the economy.
Others argue that E-business will always have its own models, concepts and practices.
Most marketing processes remain the same, but technology has given them a new twist.
What will happen to marketing when most consumers are able to fast forward through television commercials and block online advertising?
It is interesting to note the story about the battle of the online Schwab and the offline Schwab. The online company was allowed to cannibalize the offline company simply because it was more profitable. The online company, e.Schwab.com, produced lower prices, incorporated successful e-marketing strategies, and produced faster growing accounts and assets. For Schwab, e-business is just business.
Marketing Implications of Internet technologies – there are basic properties that give Internet technology the ability to transform marketing activities.
Bits not atoms
Mediating technology
Global reach
Network externality
Time moderator
Information equalizer
Scalable capacity
Open standard
Market deconstruction
Task automation
Opportunities abound because of:
Lower costs
Trackable measurable results
Global reach
Personalization
One-to-one marketing
More interesting campaigns
Better conversion rates (increased purchases)
24-hour marketing
E-Marketing Today: Web 2.0
Web 2.0 now connects people to people
Social media
User generated media (IGM)
Information technology has brought about profound changes in traditional marketing.
Power shift from sellers to buyers – the Internet has created a one-world market in which global competition is only one mouse click away.
Market fragmentation – cable television, special interest magazines, and most significantly, the Internet have forced marketers to create products and communication to very small target groups.
Death of distance – geographic location is no longer a factor for buyers or sellers.
Time compression – time is no longer a factor as online stores are available 24/7.
Knowledge management is key – Information is readily available and relatively inexpensive. However, transforming this information into useful data can be quite daunting.
Interdisciplinary focus – successful marketing managers must understand technology to harness its power.
Intellectual capital rules – imagination, creativity, and entrepreneurship are more important than money.
“Information overload” is a term made more popular by the advent of the Internet. The fact that anyone with Internet capabilities can access thousands of pages of marketing and product information has created a Good News/Bad News situation for marketers. The good news is that customers have access to virtually unlimited amounts of information; the bad news is that this plethora of information can cause extensive confusion on the part of the customer.
|
| |
