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Internet Marketing Networks Critical Implications Ubiquity Accessibility by all Expectations What do users think equals success Sharing Efficiency through reciprocity Specialization Networks allow marketers to specialize Virtual value activities Delivering useful information Ubiquity

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Presentation Transcript

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Critical Implications

  • Ubiquity

    • Accessibility by all

  • Expectations

    • What do users think equals success

  • Sharing

    • Efficiency through reciprocity

  • Specialization

    • Networks allow marketers to specialize

  • Virtual value activities

    • Delivering useful information


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Ubiquity

  • Metcalfe’s Law

    • Value of a network increases with the square of the number of participants

  • Individual network value

    • Linear growth based on number of communications

  • Community value

    • Fast growth based on the sum of individual values

    • Main driver for business, governments and organizations


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Network Value

  • Different networks have different values to individuals

  • This value difference drives marketers


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Downside of Ubiquity

  • Presence of undesirable persons

    • Spam

  • Avoid being an “undesirable”

    • Restrictions on use

    • Opt-out provisions

    • Opt-in provisions

    • No sharing


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Self-Fulfilling Expectations

  • Hype and celebrity nature of marketers

    • Create illusion of rapid growth

  • Economic value

    • People want to associate with a winner

    • William Shatner

    • Endorsements must be convincing and believable


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Sharing

  • Low connection costs

    • What impact will MTS’s desire for higher rates have?

  • Network computing – The Mainframe Strikes Back (almost)

    • WebTV

  • Virtual hosting

    • Cost factors – size of site and volume of traffic

  • Sharing time zones

    • Hewlett-Packard and disk drive support


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Specialization

  • Alliances

    • Fast, cheap and easy to expand

  • Danger

    • Don’t let your brand get lost in the alliance


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Virtual Value Activities

  • Gathering

    • Bringing information from anywhere

  • Organizing

    • Information architecture

    • Form, function, theme of information

  • Selecting and Synthesizing

    • Segmentation and personalization

  • Distributing

    • Publishing on the web


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Why the Internet Works

  • Reliability

    • Redundancy and packet switching

  • Efficiency

  • Scalability

    • Ability to grow


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Why It Doesn’t

  • Breakdowns

    • The wind that blew down Churchill

  • Delays and lags

    • Access lags – limited transmission capacity

    • Transmission lags – ISP to ISP connections

    • Server lags – congestion and power

      • Deep Blue and Amazon


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Intranets

  • Internal sites separated from the public internet

  • Used for:

    • Proprietary information

    • Focuses on employee communication

    • Process oriented

    • Creates a learning organization


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Extranets

  • Core of business-to-business commerce

  • Allow for greater personalization and community features

  • Used in supply chains – GE’s Trading Process Network


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