Internet Marketing & e-Commerce

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Oct 21, 2013 (3 years and 8 months ago)

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©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation


Internet Marketing & e
-
Commerce


Ward Hanson

Kirthi Kalyanam







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PERMISSIONS DEPARTMENT

THOMSON BUSINESS and ECONOMICS

5109 Natorp Boulevard

Mason, OH 45040

Phone: (800) 423
-
0563



©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Part One: Chapter Three

Networks


“The science of networks has taught us that distance is
deceiving. That two individuals can be connected through a
short chain of network ties


through only six degrees


is a
claim about the social world that has fascinated generation after
generation.”


Duncan Watts,
Six Degrees: The Science of a Connected Age

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

The Evolving Internet


A decade of rapid growth ends with the
transition to a more mature market


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

The Evolving Internet


A decade of rapid growth ends with the
transition to a more mature market


Experienced users more likely to engage
in online commerce and upgrade to
faster connection services


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

The Evolving Internet


A decade of rapid growth ends with the
transition to a more mature market


Experienced users more likely to engage
in online commerce and upgrade to
faster connection services


The seasoned user also moves away
from exploratory “surfing the Net”

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

The Evolving Internet


A decade of rapid growth ends with the
transition to a more mature market


Experienced users more likely to engage in
online commerce and upgrade to faster
connection services


The seasoned user also moves away from
exploratory “surfing the Net”


A shift to deeper connections

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Changing Patterns in Global Net Use


The declining share of U.S. Internet users

Source
: World Bank, U.S. Census

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

An Information Explosion, On the Go


Music, books, x
-
rays and home videos all
contribute to a sea of information



©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

An Information Explosion, On the Go


Music, books, x
-
rays and home videos all
contribute to a sea of information


Internet users increasingly obtain
information from mobile devices


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

An Information Explosion, On the Go


Music, books, x
-
rays and home videos all
contribute to a sea of information


Internet users increasingly obtain
information from mobile devices


Instant messaging and text messaging
create new frontier for marketers

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

An Information Explosion, On the Go


Music, books, x
-
rays and home videos all
contribute to a sea of information


Internet users increasingly obtain
information from mobile devices


Instant messaging and text messaging
create new frontier for marketers


Blogs, podcasts and beyond create new
challenges for reaching audience


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Age Gap: Email vs. Instant Messaging

Internet users
who use IM

Users who use
IM more than
email

Users who email

more than IM

Gen Y

62%

57%

19%

Gen X

37

16

24

Trailing
Boomers

33

18

24

Leading
Boomers

29

7

16

Matures

25

<1

7

Source
: Pew Internet & American Life Project Training Survey, February 2004

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Second Generation Internet


The early Internet served basic
documents to anonymous users,
helping drive widespread use but
limiting its performance and security

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Second Generation Internet


The early Internet served basic
documents to anonymous users, helping
drive widespread use but limiting its
performance and security


Second Generation Internet focuses on
more descriptive content


the semantic
web



and ways to reliably authenticate
users

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Understanding Social Networks


Network connections grow faster than the
number of participants


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Understanding Social Networks


Network connections grow faster than the
number of participants


Extensive local clustering: friends tend to have
the same group of friends

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Understanding Social Networks


Network connections grow faster than the
number of participants


Extensive local clustering: friends tend to have
the same group of friends


Small worlds: connecting any two people on a
network with limited steps

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Understanding Social Networks


Network connections grow faster than the
number of participants


Extensive local clustering: friends tend to have
the same group of friends


Small worlds: connecting any two people on a
network with limited steps


Hubs and Connectors spread information more
quickly than other members

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Understanding Social Networks


Network connections grow faster than the
number of participants


Extensive local clustering: friends tend to have
the same group of friends


Small worlds: connecting any two people on a
network with limited steps


Hubs and Connectors spread information more
quickly than other members


OK to lose members randomly, but networks
vulnerable to deliberate attack


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Metcalfe’s Law


Growth of a communications network
strongly enhances its value



Assuming equal value among network members, if
v
=
1, full value of a conversation is $2



In networks with changing communication value, value
rises at a slower rate

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

The value of a complete network rises rapidly, but
not every link shares the same value

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Clusters and Connections


Within clusters, connections made even
more rapidly


Any two members can usually be
connected with only a few links


Kevin Bacon and Six (or fewer) Degrees of
Separation

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Marketing Value in Networks


Networks are most valuable when they are
ubiquitious: the power of the ever present

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Marketing Value in Networks


Networks are most valuable when they are
ubiquitious: the power of the ever present


Increased speed can transform business

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Marketing Value in Networks


Networks are most valuable when they are
ubiquitious: the power of the ever present


Increased speed can transform business


Participants expectations are important and can
be shaped by publicity and hype


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Marketing Value in Networks


Networks are most valuable when they are
ubiquitious: the power of the ever present


Increased speed can transform business


Participants expectations are important and can
be shaped by publicity and hype



Resource sharing benefits knowledge

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Marketing Value in Networks


Networks are most valuable when they are
ubiquitious: the power of the ever present


Increased speed can transform business


Participants expectations are important and can
be shaped by publicity and hype



Resource sharing benefits knowledge


Greater opportunity for specialization and
challenges in branding

©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Virtual Value Activities


Creating value from reams of available
information is a key skill in online marketing



First step:
Gathering


Low cost


Using creativity, resource and technology


Second step:
Selecting
and
Organizing


Well organized and intuitively structured


Balance goals and objectives


©
Copyright 2006, Thomson South
-
Western, a division of the Thomson Corporation

Virtual Value Activities


Third step: Synthesizing


Synthesis of information is tied with
personalization


Collect most relevant material



Fourth step: Distributing


Relies on network capabilities


Pages should be fast loading and easy to
access


Automatic data collection