Introduction to Internet Marketing

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Introduction to Internet Marketing

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This Class..

• Basics of the Internet
• E-Business Strategy

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Basics of the Internet

• What is the Internet?
• The Federal Networking Council (FNC) agrees that
  the following language reflects our definition of
  the term "Internet".
• "Internet" refers to the global information
  system that --
• (i) is logically linked together by a globally
  unique address space based on the Internet
  Protocol (IP) or its subsequent
  extensions/follow-ons
• (ii) is able to support communications using the
  Transmission Control Protocol/Internet Protocol
  (TCP/IP) suite or its subsequent
  extensions/follow-ons, and/or other IP-compatible
  protocols and
• (iii) provides, uses or makes accessible, either
  publicly or privately, high level services
  layered on the communications and related
  infrastructure described herein.
• http//library.albany.edu/internet/internet.html

Source Federal Networking Council (FNC) October
24, 1995
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Basics of the Internet

• What is the Internet?
• The Internet is the sum total of devices
  interconnected using the Internet Protocol
• We use the Internet with applications such as
• Instant messaging
• Email
• World Wide Web
• FTP

Source Hofacker, 2001
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Basics of the Internet

• What is the Internet?
• What is Internet marketing?
• The use of diverse applications of the Internet
  such as Email, Chat, FTP, Usenet, World Wide Web
  to conduct marketing activities.which facilitate
  exchange.
• How do you conduct marketing activities?
• Remember the four Ps?

Source Hofacker, 2001
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Basics of the Internet

• How has it evolved?http//www.zakon.org/robert/in
  ternet/timeline/
• 1957 Soviets Launch Sputnik
• 1958 In response, U.S. establishes ARPA
• The Purpose of the Internet is to allow
  communication in the event of nuclear war.
• Do you think it would ? Why?

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Basics of the Internet

• How has it evolved?
• 1969 First message sent! (UCLA SRI)
• 1971 15 nodes
• 1976 Queen Elizabeth II sends an Email
• 1984 Domain Name System Introduced
• 1986 Backbone Speed is 56K

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Basics of the Internet

• How has it evolved?
• 1988 Backbone 1.54Mbps (now OCS 2.5-14Gbps)
• 1991 WWW Developed (speed T3 44.73Mbps)
• 1993 Mosaic Introduced
• 1994 First Banner ads appear on HotWired
• First spam!!
• 1996 Browser War
• 1999 The WWW is DOT.COM
• 2000 DOT.COMs are accountable
• DoS Attacks
• 2001 Napster
• 2003 Survives August black out
• Swiss hold elections online
• 2004 Google 1.5 Billion IPO
• 100Year registration available
• 2005 Blogs, eHarmony The Facebook
• 2006 Google logs,privacy and MySpace?

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What do people do online?

• What do you do daily online? List 3 things that
  you do daily online.

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What do people do online?

• What did you do online yesterday?
• Use the internet 66 US (97 million)
• Send e-mail   53
• Use a search engine 38
• News 31 
• http//www.pewinternet.org/

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What do people do online?

• Go on a Roller Coaster!
• Discovery Roller Coasters

• http//kids.discovery.com/games/rollercoasters/coa
  stervideos/wood/wood.html

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Basics of the Internet

• How does it work?
• Packet Switching http//www.pbs.org/
• http//www.pbs.org/opb/nerds2.0.1/geek_glossary/pa
  cket_switching_flash.html

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Basics of the Internet

• Terminology
• HTML - Hypertext Markup Language
• Browser - Interface Platform
• URL - Uniform Resource Locator
• What about Intranets and Extranets? Are they the
  same as the Internet?http//e-comm.webopedia.com/
  
• http//www.marketingterms.com/

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Agenda

• Basics of the Internet
• E-Business Strategy

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E-Business Strategy

• 1. What should I be concerned about?
• 2. How will the Internet affect me?

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E-Business Strategy

• 1. What should I be concerned about?
• Infrastructure capability
• Brand considerations
• Rising customer expectations
• Performance expectations
• Customer information

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E-Business Strategy What is your
Bandwidth?http//reviews.cnet.com/Bandwidth_meter
/7004-7254_7-0.html

• Broadband crosses 50 penetration in US 8/04
• What about elsewhere?

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E-Business Strategy

• Brand Concerns
• Domain Names
• Typosquatters Cybersquattinghttp//www.icann.or
  g/udrp/proceedings-list-dec.htme-harmony
  fasebook?
• Overseas Names
• each country has a unique two letter code
• Tuvalu (.tv) Antigua (.ag)
• Micronesia (.fm) Turkmenistan (.tm)http//www.ian
  a.org/cctld/cctld-whois.htm
• New Extensions http//www.icann.org/tlds/

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E-Business Strategy

• What should I be concerned about?
• Increased customer expectations!

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E-Business Strategy

• Rising Performance expectations
• Product in stock http//www23.netrition.com/oos_pa
  ge.html
• Returns http//www.plumbingstore.com/returngoods.h
  tml
• Using Information
• Communication
• 24/7 http//www.visalaw.com/chatlive.htm

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E-Business Strategy

• Rising Performance expectations
• Email QUIZ!
• 1. Think of 2 product or service that you really
  like and enjoy (legal, G-rated). Send an email
  to the company and thank them for having the
  product/service.
• 2. Send me an email with the names of the
  companies that you sent the email to by August
  25, 5pm CST.

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E-Business Strategy

• How does the Internet change strategy?
• Power Information Power. Buyers can look at
  all competitors.
• Space- How much can you say in a newspaper ad?
  The Web?
• Time Open every day, all day
• Communication- Radio, TV and Newspaper are push
  media. The Web is pull--you choose what you look
  at..
• Distance you are world wide. http//www.sullivan
  soffice.com/
• Knowledge Management- Sellers can look at
  personal information. Track effectiveness.
• Niche Marketing- Fragmented small markets.
• MultiChannel Marketing Integration/Convergence
  http//kyw.com/special/local_story_221184047.html
  Sensations? http//www.sciencedaily.com/releases/
  2003/07/030701225412.htm

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E-Business Strategy

• Will it affect my Business Model?
• Subscription - http//online.wsj.com/
• Merchant - http//www.circuitcity.com
• Manufacturer - http//www.olcottplastics.com/
• Affiliate - http//www.cj.com/publishers/home.jsp
• Community - http//www.ivillage.com/
• Broker Brings buyer/seller together small fee
  http//www.ebay.com/
• Advertiser Supported - http//www.google.com/
• Government - http//akweathercams.faa.gov/
• Non Profits - http//www.redcross.org/
• Pure play - http//www.amazon.com/

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E-Business Strategy

• How will my business model change?
• Strategy Stages
• Stage 1 - convert existing sales brochures to
  HTML
• Is it effective?
• Stage 2 - different users get different
  information
• Is it secure?
• Stage 3 - change in the organization structure
• Is a new company forming?

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E-Business Strategy

• There are definite levels of E-Business
  commitment.
• Within the various levels of E-Business adoption,
  there are technical requirements associated with
  new operational capabilities.
• Not all the functions within an organization
  necessarily arrive at the same level at the same
  time.

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E-Business Strategy

• Evaluation- Performance Metrics
• Customer-i.e., build awareness
• Internal-i.e., optimize inventory
• Innovation- i.e., develop new products
• Financial increase market share

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E-Business Roadmap
While developing your E-Business presence, it
is important to know where you are now as well as
the appropriate destination for your business.
Level 5

• End-to-end
• Fulfillment
• Workflow

• Seamless connectivity to back-end system(s)
• Minimize/eliminate manual input on transactions.
• B2B automated processes

Level 4
Integrated

• Online orders, payments
• Order tracking, queries
• Funds transfer

Transactional
Level 3

• Registration
• Forms
• E-mail

• Secure transaction processing
• Online payment authorization
• Authentication and validation

Level 2
Interactive

• Advertising
• Marketing
• Information

• Web site connectivity to database application(s)
  and email accounts

Static
Level 1

• No company web site
• Can access other sites

• Web site
• Content development updates

Access

• Legend
• - Functions at Level
• - Requirements to achieve next level

No Capability

• Internet access through ISP
• Email accounts

Adapted from http//www.mepcenters.nist.gov/pub
lic/ecommerce-summit.nsf
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The Evil Internet(Source www.funwithpaint.com)