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CONTENTS
PART 1 A FRAMEWORK FORINTERNET MARKETING ... 1
CHIPTER 1 Introduction ... 2
The Original WWW ... 2
Commercial Beginnings of the Web ... 4
The Noncommercial Net : 1969-1...
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CONTENTS
PART 1 A FRAMEWORK FORINTERNET MARKETING ... 1
CHIPTER 1 Introduction ... 2
The Original WWW ... 2
Commercial Beginnings of the Web ... 4
The Noncommercial Net : 1969-1994 ... 4
The Web Takes Off ... 6
The Virtuous Web Cycle ... 6
A.Com World ... 8
Dramatic Growth ... 8
Innovative Applications ... 10
Consumer-to-Consumer Commerce ... 14
Customers as Partners ... 17
20th Century Marketing and Technology ... 17
An Internet Marketing Methodology ... 21
Our Approach ... 24
Book Material ... 24
Endnotes ... 26
CHAPTER 2 The Digital World ... 30
Better, Faster, Cheaper ... 30
Being Digital ... 32
Digital Technology ... 32
Digital Benefits for Marketing ... 33
Moore's Law and Digital Costs ... 33
What Is Moore's Law? ... 33
The Power of Exponential Changes ... 35
Using Moore's Law ... 36
Will Moore's Law Continue? ... 38
Digital Environments ... 39
The Folly of Business-as-Usual ... 39
Murray's Digital Storytelling Framework ... 39
Digital Convergence ... 46
Interactive Multimedia ... 46
How Digitizing Works ... 50
Digitizing Marketing Processes ... 54
Steps in Digitizing Marketing ... 54
Using the Business Process Point of View ... 55
Endnotes ... 58
CHAPTER 3 Neworks ... 60
The Global Matrix ... 60
Marketing with Networks ... 62
Networks Are a Social Technology ... 62
Ubiquity ... 63
Self-Fulfilling Expectations, Network Size, and Hype ... 68
Sharing ... 69
Specialization ... 7j
Virtual Value Activities ... 72
Why the Internet Works ... 74
In the Beginning : Reliability and Efficiency ... 74
A Key to Growth : Scalability Through Standards ... 78
When the Internet Stumbles ... 79
Breakdowns and Outages ... 79
Delay and Lags ... 80
Networks Inside Companies ... 85
Endnotes ... 88
CHAPTER 4 Individuals Online ... 92
The Dell Triangle ... 92
Online Marketing to Individuals ... 94
Interactivity and Customer Contacts ... 94
Direct Communication ... 95
Individual Choice ... 99
Friendly Technology ... 101
Online Consumer Behavior ... 104
The Media Equation ... 105
Social Cues ... 106
Quality Cues ... 108
Cognitive Difficulty ... 110
Flow ... 113
Web Users ... 114
Income and Internet Access ... 114
Other Important Demographic Variables ... 117
Language and Culture ... 119
Endnotes ... 121
CHAPTER 5 Web Business Models ... 124
Do You Yahoo? ... 124
Web Benefits to Firms ... 126
The Range of Web Benefits ... 126
Improvement-Based Benefits to Firms ... 126
Revenue-Based Business Models ... 131
Closed Loop Marketing ... 139
Marketing Actions and Responses ... 139
Web Chains ... 141
Evaluating Web Chains ... 144
Endnotes ... 149
PART 2 ONLINE MARKETING THEMES ... 151
CHAPTER 6 Customer Support and Online Quality ... 152
Solving Problems Online ... 152
Lower Costs ... 154
Online Publishing ... 154
Electronic Distribution ... 155
Virtual Problem Solving ... 156
Inexpensive Communications ... 157
Online Quality Enhancements ... 160
Quality and Virtual Value Activities ... 160
Customer Satisfaction and Online Support ... 163
Justifying Online Customer Support ... 167
Market Versus Customer Methods ... 167
The Cost-Quality Tradeoff ... 168
Closed Loop Web Enhancements ... 171
Profitable Web Enhancements ... 174
Co-Production ... 180
Endnotes ... 181
CHAPTER 7 Perseimaflzatlon ... 184
The Daily Me ... 184
Personalization and Marketing ... 186
Choice Assistance ... 186
Customization ... 187
Relationship Marketing ... 188
Personalization and the DNI Framework ... 189
Personalization and Consumer Benefits ... 190
The "Democracy of Goods" ... 190
Turning Experience Goods into Search Goods ... 191
Personalization and the Total Product ... 193
The Total Product in Banking ... 193
The Personalization Balance ... 195
Implementing Personalization ... 197
Online Mass Customization ... 198
Transparent Customization ... 201
Collaborative Customization ... 202
The Critical Role of an Address ... 202
Personalization Methodologies ... 204
Endnotes ... 219
CHAPTER 8 New Product Development and the Net ... 222
High-Tech Battles and the Browser Wars ... 222
The Need for Speed ... 224
Internet Time ... 224
Business Implications of Internet Time ... 225
Rapid New Product Development ... 228
Traditional New Product Development ... 228
Rapid New Product Development ... 229
Early Feedback ... 233
Rapid Release ... 235
Standards Marketing ... 236
The Importance of Standards ... 236
The Two Types of Standards ... 237
Standards Strategy ... 241
Information Acceleration ... 245
Information Acceleration in Market Research ... 245
Does Information Acceleration Work? ... 246
Endnotes ... 248
CHAPTER 9 TraIls and Brand Building ... 252
Smart Browsing ... 252
The Battle for Web Traffic ... 254
Value and Scarcity ... 254
Elements of a Web Traffic Plan ... 256
Traffic Builders ... 260
Domain Names ... 261
Domain Name Goals ... 261
Defining Domain Names ... 262
The Brand-Domain Connection ... 263
Portal Presence ... 267
The Importance of Gateways ... 267
Portal Problems ... 267
Managing Portal Presence ... 267
The Emergence of Specialized Portals ... 270
Publicity and Word of Mouth ... 270
Electronic Word of Mouth and Diffusion ... 270
Opinion Leaders Online ... 273
URL Placement ... 274
Banners and Buttons ... 275
The Rise of Interactive Advertising ... 275
Online Advertising Effectiveness ... 278
Online Advertising May Not Fit All Companies ... 281
Evaluating Traffic Sources ... 283
Measuring the Returns of Traffic Sources ... 283
Online Traffic Tracking Capabilities ... 284
Endnotes ... 287
CHAPTER 10 Online Community ... 290
Your Family Tree ... 290
Community Goes Online ... 292
Net Gain or Silicon Snake Oil? ... 292
Defining Online Community ... 295
Fundamentals of Online Community ... 297
Online Tools ... 297
Rules ... 301
Collaboration ... 303
Repeat Use ... 308
Community, Private, and Public Goods ... 309
Launching Online Communities ... 311
Building Hybrid Communities ... 311
Mirror Existing Community Benefits ... 314
Emphasize Growth First ... 320
Endnotes ... 325
CHAPTER 11 Pricing in an Online World ... 328
The Power of Pricing ... 328
Price Sensitivity and the Internet ... 330
The Standard Pricing Answer ... 330
Price Sensitivity and Online Information ... 331
Real-Time Pricing ... 338
When Simple Pricing Approaches Fail ... 338
Lessons from Other High-Speed Markets ... 339
Auctions ... 339
Online Rental Markets ... 344
Yield Management ... 345
Bundling ... 348
Endnotes ... 352
CHAPTER 12 E-Commerce ... 356
Xmas.com ... 356
E-Commerce Takes Off ... 358
E-Commerce Influence, Ordering, and Buying ... 358
F-Commerce Impact on Web Sites ... 359
Expands Web-Site Scope ... 362
The Pace of E-Commerce ... 367
E-Commerce Buying ... 367
Price ... 368
Assortment and Convenience ... 372
Entertainment ... 374
E-Commerce and Distribution Strategy ... 376
Channel Choice with F-Commerce ... 376
Channel Conflict ... 377
E-Commerce and the Proper Distribution System ... 379
An E-Commerce Case Study ... 384
An E-Commerce Analysis ... 384
Salute.com ... 384
Competing Against the Net ... 390
Traditional Retailers ... 390
Transitioning to Virtual ... 393
Endnotes ... 394
PART 3 IMPLEMENTATION AND ORGANIZATION ... 397
CHAPTER 13 Internet Marketing Plans ... 398
The Strange Case of K-Tel ... 398
Internet Marketing Plans ... 400
Endnotes ... 401
CHAPTER 14 Organizing for the Net ... 402
E-Schwab to Schwab ... 402
Internet Marketing Matures ... 404
Aligning Structure and Strategy ... 404
Avoiding Legal Pitfalls ... 406
Internet Marketing Departments ... 408
Real-Time Marketing ... 408
Information Management ... 417
Potential Legal Problems ... 423
Online Marketing and the Law ... 423
Strategic Legal Issues for Marketers ... 424
Real-Time Legal Issues for Marketers ... 428
Looking Forward ... 433
Ending Centuries ... 433
Thirty More Years of Digital Power ... 435
Endnotes ... 438
GLOSSARY ... 441
INDEX ... 445
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