Transcript Ch 2
Internet Marketing The Digital World Topics • • • • Being digital Digital environments Digital convergence Making marketing processes digital Being Digital What does it mean? • Something is digital when all of its properties and information are stored as a string of zeros and ones • Each zero and each one is called a bit – A bit is a single piece of information – “A bit has no color, size, or weight, and it can travel at the speed of light.” Nicholas Negroponte - MIT Media Lab Being Digital Digital Benefits for Marketing • Three factors make the translation from atoms to bits very powerful – Moore’s law – The ability to create digital environments – Convergence • Let’s take a closer look at each factor To Understand How Moore’s Law Plays Out, Let’s Take A Look At Some Recent Headlines Moore’s Law Each new generation of chips (released about every 18 months) packs 2x components into the same surface area to create 2x power Headline Name of publication - Date Insert excerpts from a current article out of the business press (e.g. Wall Street Journal, Wired News, Business 2.0, or Fast Company) that talks about increasing miniaturization. I usually take excerpts out of the lead paragraph, and highlight keywords. I’ve found articles in the business press on semiconductor innovation at major US research universities, for example, that nicely illustrate Moore’s law. Moore’s Law Makes it Cheap to Substitute Marketing Bits Newsprint for Marketing Atoms Sales Calls Energy Time Opportunities for Saving Corporate Intranets Software Distribution Online Customer Support Net Surveys User Manuals Where do the savings come from? Digital Environments • Digital environments are – – – – procedural participatory spatial encyclopedic • Each of these properties creates opportunities for marketers Digital Environments Are Procedural • Computers are logic engines - they follow rules • However, well-programmed computers can create wonderful illusions of intelligence, spontaneity, and attention to detail • For example: digital actors can create the illusion of social interaction – Imagine digital actors as hosts on a Wal-Mart Web site – Digital actors can make the online site feel “more like Wal-Mart Digital Environments Are Participatory • Digital environments encourage participation • Users input requests and other information • Software systems – retrieve relevant information – enable customized responses and experiences Digital Environments Are Spatial • Digital technologies enable the creation of virtual spaces • Current connection speeds and bandwidth limit widespread use of virtual spaces for marketing purposes • Spatial elements are being used to provide familiarity and comfort to users Digital Environments Are Encyclopedic • Digital information can be stored cheaply • So, it’s possible to archive huge amounts of information and make it available – movie databases – online technical help & solutions Digital Convergence Content Interactive Multimedia Computing Experience Communications Convergence Content Computing Interactive Multimedia Communications Adds Flexibility • Internet capabilities augment traditional power of mass market media • DTV means that Net marketing will grow dramatically Digital Technologies Fundamentally Change Everything Involve Customers in Design Process Understand Markets & Customers Market & Sell Products & Services Marketing Processes That Can Be Digitized Manage Customer Information Provide Customer Care Deliver Value Through Distribution