Transcript Slide 1

Internet Marketing
and Web Design
Marketing Stream
ESCEM, Poitiers – September 22-26, 2003
Guest Professors:
Marty Huisman <Markety> Tom Leuchtner <InMentors>
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Internet Marketing - Poitiers 2003
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Session 1:
Introduction, Course Methodology,
Internet Backgrounder
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Who are we?
• Marty Huisman
– Marketing / CRM / E-commerce and change management
– 10+ years experience in pan-European high-tech marketing
(Symantec, Netscape, Archos)
– 4 years experience as a consultant on the crossroads of
marketing and technology
– Today independent consultant for high-tech companies
– www.markety.com
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Who are we?
• Tom Leuchtner
– Marketing/Executive
– 20 + years experience in software/high tech, in US and
Europe:
• Lotus/IBM, Netscape, AOL, founder/executive of 3
startups (US, Pays Bas, France)
• Today specialize in helping starting companies develop
clear go-to-market strategies, financing and developing
young companies
• www.inmentors.com
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Course Methodology and
sequence …
Structure
Analysis
Strategy
Organisation
Concept People
IT
= methodology for site development also!
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Course Methodology
•
•
•
Theory: explanation, planning and review (TEST!)
Practice:
1. Apply the information to the project plan for the “client”
website
2. Build website (TEST!)
Results expected for Students:
– Week 1:
• Project plan, plus first website concept, ‘maquette’,
reviews
– Week 2:
• Update, review and finish website(s), Alumni
presentations, further reading/research for exam
– Week X: Find a job!
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How you will be graded
• Knowledge (50%)
– Written exam: questions to test knowledge, essay questions
to test ‘synthesis’ of knowledge (40%)
– In-class participation (10%)
• Project (50%)
– Planning and strategy (20%)
– Quality, competitiveness, vision and functionality of Website
(30%)
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But first, a bit of background…
• How did the Internet ‘happen’ so fast??
– Answer: it took over 30 years for it to ‘happen’!
• Arpanet, ethernet.. -> Internet
– Are there historical comparisons?
• Yes! Radio… TV… Mobile phones..
– So why is the Internet so… Revolutionary?
• ‘Convergence’ defined
– What is this hype all about ??
• Tulips?
• Desktop Computers ?
• A new economy ?
• A new … social ‘Paradigm’ ?
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History of the Internet…
The First Wireless… Radio
• It’s 1922
• Radio suddenly transitions from a
technology used primarily by the military and
the shipping industry to a consumer and
business phenomenon
• At the end of 1921, there are 5 radio stations
• A year later, there are 575
• Starting radio stations is the height of
entrepreneurship
• Listening to radio is a runaway consumer fad
• “Combing the ether” is the hit of the day
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Radio: The Original WWW
• Radio’s impact on 1920s society
– It changes the way people think about
distance and time
– Simultaneity no longer requires proximity
– Global events are experienced as they
happen
– Performances in different cities can be heard
in the neighbor’s living room
– Fast-breaking world stories and even the
local weather are available at the flip of a
switch and the turn of the dial
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Radio: The Original WWW
• Radio changed business, especially marketing
– It accelerated the economy’s transition to a
mass market
– It facilitated the creation of national brands
– Firms could launch national marketing
campaigns simultaneously
– New product store introductions could be
synchronized with ad campaigns to build
consumer interest
– Product positioning became more flexible
• Businesses learned to use this new, powerful
method of reaching customers
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Radio: The Original WWW
• As an industry, radio struggled with
generating a self-sustaining revenue base
– In 1926, radio stations were failing at a
rate of 15% per month
– Consumers still rushed to buy radios
– Ultimately, national networks of stations
emerged
– A combination of national and local
advertising made radio profitable
• Internet marketing shows many of these
same uncertainties
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Today’s Internet:
The World Wide Web
• The Internet changes the way companies connect to their
customers
• It expands the opportunities for branding, innovation, pricing,
and selling
• It leads to new ways of thinking about time and distance
• It opens up new distribution channels and markets
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Consumer Access
50
40
46% growth in 1998
30
20
10
99
1/
98
1/
97
1/
96
1/
95
1/
94
1/
1/
93
0
92
•
Growth of World Wide Web Domains
1/
•
The past five years have seen
rapid growth in
– Network size
– Users on networks
– Network activity
Between January 1994 and
January 1999, Internet hosts
grew from 2.2 million to over 43
million
A 46% growth rate in 1998
Millions
•
Online Access Growth in Net Hosts
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Consumer Access
•
•
•
•
•
The Internet user base has grown
rapidly as well
Worldwide, the number of users was
estimated to be > 160 million in
March, 1999
Over 90% of the users on the Net
have joined in the last 5 years
More growth is possible, as < 4% of
the world’s adult population is online
50% of users think the Net is a
“necessity”
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HOW MANY ONLINE?
The art of estimating the
number of people online
throughout the world is
inexact. An “educated
guess” as of May 1999 is
165 million.
Source: NUA
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Consumer Access
Size in millions of distinct static pages
•
•
•
•
Spring 1998, the size of the Web
was estimated at 300 million pages
Growth rates in content exceed
growth rates in Web access and the
number of users
From June 1997 to March 1998,
Web content grew at 120%
More importantly, the types and
creativity of Web site content have
blossomed
0
Pages found in all 4
engines
50
100
150
200
250
300
1
2
2
Infoseek
16
25
35
Excite
28
30
33
1997
1998
1999
42
80
HotBot
100
35
Alta Vista
Pages found in at least
one of the four engines
100
110
90
160
195
125
Size of static web
200
275
Rapid Growth in Web Content
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Recent Stats: France
Internet users with ADSL connection differ in their internet
usage pattern from users with slower connections for the
following categories of information:
• download music (39% of ADSL users versus 18% of
slower connections)
• listen to radio online (37% versus 17%)
• download video (22% versus 7%)
• watch online video (20% versus 10%)
• play more games online (20% versus 10% normal)
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Recent Stats: France
Top 10 of most popular sites in France in April 2003:
• Amazon.fr 3.455.000 unique visitors = 25% coverage
• Voyages-sncf.com 2.360.000 and 17%
• Fnac.com 2.090.000 and 15%
• Ebay.fr 1.976.000 and 14,3%
• Kelkoo.com 1.772.000 and 12,8%
• Cdiscount.com 1.407.000 and 10,2%
• Alapage.com 1.305.000 and 9,4%
• Rueducommerce.com 1.030.000 and 7,5%
• Laredoute.fr 940.000 and 6,8%
• Priceminister.com 863.000 and 6,2%
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Definitions and Models
•
•
•
•
eCommerce
Terminology
Business Functional Model
Application of Internet Technologies inside and
outside the company
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eCommerce (EC) Definition
• Ecommerce is any form of business transaction in which the
parties interact electronically rather than by physical
exchanges or direct physical contact
• It is one of those rare cases where changing needs and new
technologies come together to revolutionise the way in which
business is conducted
European Commission (1997)
http://www.ispo.cec/be/Ecommerce/whatis.htm
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Ecommerce Terminology
E-Business
Business
Partners
EProcurement
E-Commerce
Enterprise
Extranet
Business-to-Business
Intranet
Internet
Customers
Business-to-Consumer
Consumer-to-Consumer
workers
Associations
E-Government
Citizens
• ECommerce
– Using Information Technology to support external business
processes (eg marketing/selling products &/or services)
• EBusiness
Internet
Marketing
- Poitiers 2003
– Supporting both internal
and
external
business processes
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It includes at least the following
• The exchange of goods & services across an
interactive digital network
• A computer-mediated & virtual market with new
relationships among businesses and consumers
• A digital means of exchange (digital money,
ecash, secure credit card transactions)
• The increasing importance of digital information
as a commodity
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eBusiness model
• Covers the support of the processes & relations between
business partners, co-workers and customers by electronic
media
Business Partners
Extranet
Enterprise
Internet
Customers
Intranet
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eCommerce
• Is that part of the eBusiness which is aligned to the
negotiation and settlement of obligatory business
transactions.
Information
Agreement
Knowledge
Informing
Settlement
Intention
Goal Definition
Negotiating
Execution
Example: http://www.amazon.com/
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Further e-terms
• E-Procurement
– the electronic support of the procurement
processes (purchase) of an enterprise
• E-Marketing
– the electronic support of the sales & marketing
(and services) processes of an enterprise
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Exercise
• The group’s favourite websites
• Compare, discuss
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End Session 1
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Session 2:
Strategic Business Analysis
Review
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Strategic Business Analysis Review
Please contact Marty Huisman ([email protected]) if you
want
more detail about this topic
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Further Reading/Research
• Treacy and Wiersema, The discipline of market leaders (1995)
• Subscribe for free to Mc Kinsey Newsletter at
http://www.mckinseyquarterly.com .
Good strategical research, easy to read.
• Watch articles on the site of Bain and Company, re: strategy and
IT and business at http://www.bain.com
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End Session 2:
Strategic Business Analysis
Review
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Session 3:
Strategic Input- Determining
Internet Readiness
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Strategic Input – Determining Internet
Readiness
Please contact Marty Huisman ([email protected]) if you
want
more detail about this topic
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Further Reading/Research
• Hamel and Prahalad: Competing for the future (1994)
• Pine and Gilmore: The experience economy (1999)
• Evans and Würster: Blown to Bits – How the New Economics of
Information transform Strategy
• Gulati and Garino: Get the right mix of bricks and clicks (Harvard
Business Review, May 2000)
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End Session 3:
Strategic Input – Determining
Internet Readiness
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Session 4:
Determining Internet Strategy
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Determining Internet Strategy
Please contact Marty Huisman ([email protected]) if you
want
more detail about this topic
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End Session 4:
Determining Internet Strategy
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