Marketing & Technology
Topic introduction
Overview and history
Course approach
Why is the Internet
important?
Fast growth in influence
Accessed by marketers
Expected by consumers
Rapid and wide diffusion
In domains
In hosts
Lots of money involved
Spending money to make money
Spending money on goods and services
A brief history
Marketing and technology are linked
The Industrial Revolution
Mass communications
Radio
Television
The Information Revolution
A digital economy
Rise of interactive media
Just another technology
Internet is the most recent technology
A timeline
Effects of technology on marketing action
Affects types of products
Affects types of communications
A Timeline of Marketing and Technology
Marketing Events
First full-service Internet bank
Technology Developments
1999
1998
.com hosts outnumber others
First online shopping mall
1995
Online dial-up services provide Internet access
1992
Number of hosts exceeds 1,000,000
1994
First commercial interest in Internet
1991
CERN releases WWW
1989
Number of hosts exceeds 100,000
1987
Number of hosts exceeds 10,000
1984
Number of Internet hosts exceeds 1000
Domain Name System introduced
1975
First Internet mailing list
Early digital computing technologies
First television ad: Bulova Watch
1960
Widespread color TV capability
1939
First all-electronic TV: RCA
1926
First radio network: RCA
1921
First radio station
1890
Majority of production
moves to factories
1941
1935
1880
c. 1450
Industrial Revolution under
way (mechanization and
mass production)
Printing press invented
One-third of radio shows have
commercial sponsors
History in perspective...
Rates of diffusion: Time to reach 50
million U.S. homes (Morgan Stanley Tech. Res.)
40
30
20
10
0
Internet
Cable TV Televis ion
Radio
What is the Internet?
A means of communication
From one-to-many
To all sorts of forms…
Technological characteristics
History
Purpose
Growth
How many hosts?
Tracking Internet growth
Number, in millions
Estimated Numbers of Internet Hosts in the
Domain Name System
50
40
30
20
10
0
1993
1994
1995
1996
1997
1998
1999
Source: Internet Software Consortium (http://www.isc.org)
Commercial implications
of Internet growth
Dollars, In Billions
Predicted Increase in U.S. Online Sales
120
100
80
60
40
20
0
1998
1999
2000
2001
2002
Source: Forrester Research
2003
More implications
Dollars in Millions
Estimated Increases Over Time in Advertising Revenue
8000
7000
6000
5000
4000
3000
2000
1000
0
Forrester
Jupiter
Yankee
Group
1996
1997
1998
1999
2000
2001
Source: As Compiled by Nua Analysis (http://www.nua.ie)
2002
Implications in action
Host Count of Top Level Domain Names
In Millions
20
15
10
5
0
.com
.edu
.gov
.mil
.net
Source: Internet Software Consortium
(http://www.isc.org)
.org
The Net and e-commerce
E-commerce definition
 ...activities undertaken by organizations to enable and facilitate the
buying and selling of stuff with paperless, information systems
technologies..
Broader than just buying and selling
online
Encompasses marketing activities
Includes different types of transactions
Revenue generating
Revenue supporting
The Net and marketing
A marketing review
Marketing definition
“The process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives.”
Marketing activities
Strategic planning
Marketing management
Internet opportunities
Environmental scanning
Marketing research
Mix implications