Joel Reedy and Shauna Schullo

1
Electronic Marketing

• Chapter 20The Future of Electronic Marketing
  Resources

2
What the Future Holds

• In the context of marketing technology,
  convergence is the coming together of two or more
  disparate disciplines or technologies to provide
  systems of greater benefit
• The fax revolution was produced by a convergence
  of telecommunications technology, optical
  scanning technology, and printing technology
• NGI technology will provide technology for
  transmission of video components,
  videoconferencing, video storage, video
  broadcasting, video delivery of satellite or
  cable television programming over broadband
  networks, and video signal switching from
  Asynchronous Transfer Mode (ATM) to other types
  of networks such as ATM-to-Ethernet, the Internet
  system wired into many college dormitories
  throughout the nation

3
Overview of ATM in the Context of NGI

• The Internet using a modem and telephone line is
  a simple, analog conversation occurring between
  two digitally minded machines
• Telephones have traditionally used analog
  technology, which refers to electronic
  transmission accomplished by adding signals of
  varying frequency to carrier waves of a fixed
  frequency of alternating electromagnetic current

4
Overview of ATM in the Context of NGI

• Modulation
• A modem is used to convert the digital
  information in the computer to analog phone
  signals for the phone line and to convert analog
  phone signals to digital information for the
  computer
• Basically, the modem is the translator of the
  digital to the analog technology and herein lies
  the problem
• Traditionally, telecommunications technology had
  leveraged the highly predictable nature of voice
  data and delivered this data efficiently by using
  dedicated circuits operating at a fixed bandwidth

5
Overview of ATM in the Context of NGI

• Modulation continued
• The mode of delivery is through what is known as
  circuit switching technology, which is the
  foundation of the telephone network
• Telecommunications companies are now embracing
  networks capable of high-speed transmission of
  images broadcast television and cable
• The networks to support the new technology have
  remained in a separate domain

6
Overview of ATM in the Context of NGI

• The method of transmitting this data uses what
  are called packet switching techniques, where
  small parcels of data are transmitted
  individually across digital communications
  networks, typically known as Local Area Networks
  (LANs) or Wide Area Networks (WANs)
• There is now an increasing recognition that
  technology is required that is capable of meeting
  both styles of operation

7
Overview of ATM in the Context of NGI

• The strengths of the telecommunication approach
  in network management and control have become
  extremely attractive to the computing community,
  where network problems, even outages, result from
  the use of protocols, or standards of
  transmitting data that are not ideally suited to
  such situations
• A variety of new standards are being created to
  address the current deficiencies
• A new network protocol known as Asynchronous
  Transfer Mode (ATM)

8
Overview of ATM in the Context of NGI

• ATM
• Provides for a signal network service capable of
  supporting video, voice, and data transmission
  needs in a flexible and responsive way, and
  incorporates the following capabilities
• Much higher transmission capabilities
• Flexibility and versatility
• Universality and adaptability
• The ability to meet the needs of each segment of
  the corporate network

9
Overview of ATM in the Context of NGI

• ATM continued
• Implies far-reaching institutional as well as
  technological changes
• Standards development continues
• The order of implementation of ATM technology
  will be the Metropolitan Area Network (MAN) level
  in the institutional/educational campus context,
  followed by the Wide Area Network (WAN) level,
  then the corporate Local Area Network (LAN), then
  finally the work group and desktop level
  implementations

10
Overview of ATM in the Context of NGI

• ATM continued
• Represents a major component of NGI since it
  brings inter-networking potential of the Internet
  together with the management capabilities of
  high-capacity transmission within the traditional
  telecommunications industry

11
NGI in the Context of Marketing to Consumers

• Internet had placed great strains on the ability
  of companies to deliver what their marketing
  promised
• Internet bottleneck problem
• Quality of service has thus become the problem
  with todays Internet

12
Internet2 Project

• Internet2 is a part of the NGI to rededicate a
  communications network linking research
  universities as the original Internet was
  purposed
• The Internet2 project is bringing focus, energy,
  and resources to the development of a new family
  of advanced applications to meet emerging
  academic requirements in research, teaching, and
  learning

13
Internet2 Project

• Internet2 universities, working with industry,
  government, and other research and education
  networking organizations, are addressing the
  major challenges facing the next generation of
  university networks by
• Creating and sustaining a leading edge network
  capability for the national research community
• Directing network development efforts to enable a
  new generation of applications to fully exploit
  the capabilities of broadband networks
• Working to rapidly transfer new network services
  and applications to all levels of educational use
  and to the broader Internet community, both
  nationally and internationally

14
Internet2 Project

• The goals of the Internet2 project include the
  following
• Enable a new generation of applications
• Recreate a leading edge research and education
  network capability
• Transfer new capabilities to the global
  production Internet
• Demonstrate new application that can dramatically
  enhance researchers abilities to collaborate and
  conduct experiments
• Demonstrate enhanced delivery of education and
  other services by taking advantages of virtual
  proximity created by an advanced communications
  infrastructure

15
Internet2 Project

• Goals continued
• Support development and adoption of advanced
  applications by providing middleware and
  development tools
• Facilities development, deployment, and operation
  of an affordable communications infrastructure,
  capable of supporting differentiated Quality of
  Service (QOS) based on applications requirements
  of the research and education community
• Promote experimentation with the next generation
  of communications technologies

16
Internet2 Project

• Goals continued
• Coordinate adoption of agreed working standards
  and common practices among participating
  institutions to ensure end-to-end quality of
  service and interoperability
• Catalyze partnerships with governmental and
  private sector organizations
• Encourage transfer of technology from Internet2
  to the rest of the Internet
• Study impact of new infrastructure, services, and
  applications on higher education and the Internet
  community

17
Internet2 Project

• Perhaps the Internet2 will bring resources of
  communications technology and networking delivery
  technology

18
The Evolution of Technology

• If the NGI will provide much relief to the
  problems of bandwidth, thus speeding up data
  transmission and reducing download time, what
  technology would interest the e-marketer?
• The hardware developers are pursuing compact,
  mobile, hand-held devices containing wireless
  transmission similar to a cellular telephone in
  function and a Palm Pilot-like computer size

19
The Evolution of Technology

• An Internet appliance that would serve consumers
  and businesspeople alike will probably have most
  of the following features
• Internet-ready connections
• Color screen for daylight viewing
• Sufficient power for processing
• Voice recognition capabilities with pen-touch
  stylus
• Memory for storage of text and graphical
  documents
• Cellular telephone for upload and replication
  capabilities
• Ear and mouth piece, possibly a headset, to
  eliminate noise, static, and interference

20
The Evolution of Technology

• IBM has made a pledge to eliminate the keyboard
  within five years to facilitate speech-activated
  technologies
• The marketer will gain the capability of sending
  information to the consumer as the consumer logs
  on to his PC or Internet appliance via Internet
  push technology

21
The Expansion in Imaginative Software

• E-commerce software of the future will be
  constructed for one of two purposes
• To provide knowledge and convenience to the
  individual consumer
• To provide knowledge and competitive advantage
  for the company through business systems

22
The Expansion in Imaginative Software

• To attract the consumer, creative and
  service-oriented Web sites will render
  information with several platforms
• Entertainment
• Humor
• Rational information
• Factual comparison

23
The Expansion in Imaginative Software

• Software applications, the primary building
  components of Web sites, are expected to be
  online virtual reality simulations including
• Virtual Reality Modeling Language (VRML)
• Three-dimensional graphic tools
• Web browsers that can display these virtual
  spaces

24
The Expansion in Imaginative Software

• Cyberspace is proving to be a viable place for
  marketing venues such as industry conferences
• Virtual reality technology (VRML) will become
  increasingly important as Internet-based content
  is available over cable modems and other
  inevitable high-speed delivery systems
• Software systems for the business-to-business
  organization will stress interconnectivity,
  bringing people and functions together over the
  Internet

25
The Expansion in Imaginative Software

• The VRML Web site will be the base for e-commerce
• VRML programs will also assist the company in
  employee training and product sales
  demonstrations
• Portal sites should continue to mature

26
The Success of Internet Acquisitions and Mergers

• The late 1990s saw a flurry of interest in
  Internet properties by investors and Internet
  competitors that caused a merger and acquisition
  frenzy
• These acquisitions totaled in the multi-billion
  dollar range, and many investors were uncertain
  of the true value of Internet business

27
The Persistence in Serving the Customer

• Competition will drive marketers to search for
  competitive advantages
• They will leverage the strength of the Internet
  medium speed, accuracy, accessibility,
  personalization, and interactivity to the
  consumer and will serve marketers in ways
  unimaginable as they delve into information
  delivery and applying the same framework as they
  develop creative promotional programs as well as
  information dissemination
• The marketer will need to be schooled in a new
  science of Internet media habits, a topic
  dating only from the mid-nineties

28
The Persistence in Serving the Customer

• The marketer must give consideration to
  user-friendly marketing processes
• Do things in as few ways as possible
• Design systems for a hundred times the possible
  current load
• Move quickly but cautiously on new technology,
  and dont jump on the newest and coolest just
  because its new and cool (Investigate
  technology, but dont forsake the customers best
  interest)
• Put your best people closest to the money even
  those arent typically the highest-paying
  positions

29
The Persistence in Serving the Customer

• Customer concerns will continue
• Security remains one of the top reasons Web
  users report for not purchasing over the Web
• Not trusting that my credit card number will be
  secure (46)
• Not being able to judge the quality of the
  product (39.3)
• Not trusting that personal information will be
  kept private (26.9)
• Being able to find the product faster/easier by
  shopping locally (22.6)

30
The Persistence in Serving the Customer

• Customer concerns continued
• Supporting the notion that the Web has become an
  important tool to access information
• 84 of the users report that they consider access
  to the Web indispensable, nearly the same
  percentage as those who feel e-mail is
  indispensable

31
The Persistence in Serving the Customer

• Commerce overconfidence
• E-marketing is not the easy way out, only
  innovative strategy amid the hard work of
  marketing
• E-marketings efforts must be integrated among
  traditional promotional and sales programs to
  enhance the synergy gained by attentive and
  sensitive marketing activities

32
Bill Gates Twelve New Rules

• The successful companies of the next decade will
  be the ones that use digital tools to reinvent
  the way they work. To make digital information
  flow as an intrinsic part of your company, here
  are twelve key ways
• Insist that communication flow through e-mail
• Study sales data online to share insights easily
• Shift knowledge workers into high-level thinking
• Use digital tool to create virtual teams
• Convert every paper process into a digital
  process
• Use digital tools to eliminate single-task jobs

33
Bill Gates Twelve New Rules

• Key ways continued
• Create a digital feedback loop
• Use digital systems to route customer complaints
  immediately
• Focus on your most unhappy customer
• Use technology to gather rich information on
  their unhappy experiences with your product and
  to find out what they want you to put into their
  product
• Use technology to drive the new to the right
  people in a hurry

34
Bill Gates Twelve New Rules

• Key ways continued
• Use digital communications to redefine the
  boundaries
• Transform every business process into
  just-in-time delivery
• Use digital delivery to eliminate the middle man
• Use digital tools to help customers solve
  problems for themselves