Transcript Chapter 2 Digital World

Internet Marketing
The Digital World
Digital Benefits
Moore’s Law – bits become cheaper
Digital environments
Convergence
Separation between products is breaking
down
 What separates a PC from a TV?

Moore’s Law
Definition – each new generation of chip
has twice the power of its predecessor
Doesn’t apply to mass storage –
reduction is even more dramatic
Using Moore’s Law
Using more computer resources as
costs drop relative to other marketing
inputs
Examples – customer service using the
net, software distribution and intranets
Easier to communicate in different
languages – TMI and instant translation
Future of Moore’s Law
Con - Laws of physics and economic
cost
Pro – Andy Grove sees no limits
Digital Environment
Janet Murray’s theories on environment
creation
Procedural
Participatory
Spatial
Encyclopedic
Procedural
Logical - can handle complex problems
Internet – how should machine and
consumer interact
Connection speed and the info displayed
 Verifying available browser features

“Digital Actors” – Wal-Mart’s Cyber
greeter
Participatory
Ease of use
Set of rules for deciding what to show
Interactivity = rules + user participation
Skills – explaining what you want to
accomplish online
Encyclopedic
Low storage cost allows for the storage
of huge amounts of information
Don’t have to choose between saving
money and offering multiple versions
Placing multiple formats on a CD
 Savings

Lower production costs
 Fewer shelving requirements
 No need to worry about wrong format

Digital Convergence
Computing, communications and media
content – melding technology and technique
Computing

Computers, software and computer services
Communications

Telephone, cable, satellite and wireless
Content

Entertainment, publishing and information
providers
Money
Trillions traded this way each day
Consumer transactions done
electronically – deposits & withdrawals
Problem – security systems may be too
expensive and sophisticated for SME’s
Scale and diversity is challenge

Small transactions with different skill levels
Business Process
Identifying marketing processes


Understand markets and customers
Break down into smaller steps, eg package
handling
Digital substitution

Online marketing research
Redesign marketing for digital capabilities

E-tickets by airlines – overcame need for physical
evidence