INTERNET MARKETING (QUIZ 2 PREP)

Business Ecosystem

- An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world. The economic community produces goods and services of value to customers, who are themselves members of the ecosystem. The member organisms also include suppliers, lead producers, competitors, and other stakeholders. Over time, they coevolve their capabilities and roles, and tend to align themselves with the directions set by one or more central companies. Those companies holding leadership roles may change over time, but the function of ecosystem leader is valued by the community because it enables members to move toward shared visions to align their investments, and to find mutually supportive roles.

crowd-poration

-Bottom-up, crowd based organizing. -Peer and personal production. -Collaborative, open licensing. -Open systems -Transparent -Plentitude creates wealth.

to match current economic models businesses must be:

-Collaborative-tap into varied capabilities of networked intelligence and innovation -Flat, Choardic -Co-creation -Open and Transparent -Disclosure; Communication of information to all stakeholders -Share -Placement of valuable information and things in the commons -Build Interdependency -Emergence of eco-systems instead of simply competitors Responsible -Honesty, consideration and accountability among a firm's various stakeholders to create trust

corporation

-Command-control, top down management, -Firm based production. -Copyright and IP define revenue rights. -Proprietary/closed systems. -Opaque -Scarcity creates wealth.

waze

-Waze depended on their user base to report real time traffic information -With a massive user base this allowed their app users to have a live update on accidents, traffic jams, and even nearby cops

digital networked technology

-cloud computing, spatial computing -mobile/sensors -big data and small data -virtual, augmented, mixed reality -AI -robotics, 3D printing -IoT

adaptation in cognitive ability

-inversion point in human history -moving from a period in which most of the details of our lives could be forgotten to one in which most of them will be captured

IoT challenges

-security -privacy -interoperability and standards -legal, regulatory, and rights -emerging economies and development

sharing economy drivers

-the economic incentive -an urge to reduce the socioenvironmental impact of consumption and a belief in "the commons" -desires to satisfy altruistic needs and feelings of communal belonging -shift from ownership to access -ICT developments = convenience

technology and market trends driving IoT

-ubiquitous connectivity -widespread adoption of IP-based networking -computing economics -miniaturization -advances in data analytics -rise of cloud computing

4 principles of collaborative consumption

1. a critical mass of users 2. idling or excess capacity of unused goods 3. belief in the common good 4. social trust

heart and wallet paradox

1. a logic of economic market mediated exchange with aspects of profit-maximization, negative reciprocity, independence between parties who have self-interested motivations 2. a logic of non-market exchange with elements of solidarity, mutuality, generalized reciprocity, and communal norms establishing interdependence between participants

P2P foundation identifies 2 main societal drivers for collaborative consumption

1. community dynamics in conducting business and the combined effect of digital reproduction 2. the increasingly "socialized" production of value

two broad types of AI

1. human-style intelligence (general or strong) the desire for people to create human=like consciousness in a machine, enabling it to apply common sense, work out varied problems and even have emotional intelligence 2. task-orientated (narrow or weak) the ability to do a limited range of tasks very well. ex. google driving a car, siri answering questions. "machine learning"

three primary robotics applications for retailers

1. in-store customer service 2. using robots to manage stores like warehouses 3. bringing the store to the customer

13 ways AI can be used in marketing

1. new customer experiences 2. new product launches 3. insight from data 4. pre-emptive marketing 5. problem solving 6. market research 7. programmatic advertising 8. greater engagement 9. content production 10. greater creativity 11. designing websites 12. globalization 13. consultancy

Commons based outcome: Collaborate versus Compete

20% of the human genome was already under private ownership including the genes for diabetes, owners of these patents influence who does research and how much it costs them. Merck decided to help make sequences inputs rather than end products.Merck did not want to pay excess license fee to biotechnology firm pursued a commons based outcome. Merck Gene Index Merck created a public database of gene sequences (Merck and Washington University) Unrestricted access enhances the possibility of discovery

Decentralized/Collaborative Organizational Structure

Chaordic Organization Self-governing, self-organizing, adaptive, non-linear, complex organization that survives by harmoniously blending chaos and order

Commons Based (Collaborative) Production

Commons-based Egalitarian communities of individuals who come together voluntarily to produce a shared outcome Mixes elements of hierarchy and self-organization Self-selection based on expertise or interest Meritocratic Jury determines what is integrated, weak contributions eliminated most experienced members provide leadership and integration

IP: GPL

Conditions inclusions and restrictions General Public license (GPL) a widely used license which guarantees individuals, organizations, and companies the right to freely use, share, and modify the software. The concept of General Public License was pioneered by Richard Stallman and is considered copyleft license. Copyleft makes a program or work free and requires most modifications and extensions of the work to be free. Creative Commons founded by Lawrence Lessig offers a license structure inspired by the ShareAlike, that allows for assets to be placed in the digital commons. ShareAlike allows creators to specify whether: the work can be used commercially, derivatives of the work are allowed, and new work may be made available under the same license terms.

Cooperatives

Cooperation rather that competition and broad commitments Ace Hardware Welch's grape juice Credit unions *producer cooperatives

Porous Information

Employees Partners/Competitors (Environment of Mutual Trust) eBay (sellers rate buyers) Researchers share insights and techniques P&G receives specific real-time data from Wal-Mart for restocking Shareholders Half of US households invested in stocks or mutual funds Customers Communities NGO

Network Decline

Fitness refers to the fact that some networks are "better" than others so at some point we go to the more fit network, Friendster was overwhelm by MySpace which was overwhelmed by Facebook who will be overtaken by.....

Key VR terms

Frames per second (FPS) - frequency at which a system can display consecutive images, or frames field of view - the angle of the observable world that can be seen degrees of freedom (DoF) - the number of directions that an object can move or rotate. the six degrees of freedom are pitch, roll, yaw, left and right, forward and backward, up and down. latency - the amount of time it takes a system to react/respond to movements or commands

Commons Based ProductionOwnership (IP) and Distribution

Linux All the source code of Linux can be used freely, modified, and redistributed, both commercially and non-commercially, by anyone. Improvements and developments are constantly being made by the community of users. Monetize through additional services on top of the tool.

Pursue Commons

Management protocols Self policing Sanctions and punishments Elinor Ostrom's 8 Principles of Managing a Commons also called Design principles for Common Pool Resource (CPR) institutions Ostrom's work focused on how humans interact with ecosystems to maintain long-term sustainable resource yields. Common pool resources include many forests, fisheries, oil fields, grazing lands, and irrigation systems. Define clear group boundaries. Match rules governing use of common goods to local needs and conditions. Ensure that those affected by the rules can participate in modifying the rules. Make sure the rule-making rights of community members are respected by outside authorities. Develop a system, carried out by community members, for monitoring members' behavior. Use graduated sanctions for rule violators. Provide accessible, low-cost means for dispute resolution. Build responsibility for governing the common resource in nested tiers from the lowest level up to the entire interconnected system.

Employment

Market sector includes traditional and alternative employment arrangement Non-profit Social Enterprise Jobbing/micro tasks

Marketers as Agents of the Customer as Opposed to Agents of the Firm

Market sensing-deep ability to understand customers, technology Forecast technology change and how customer needs and market structures evolve in response Understand Context Lifestyle, Consumption and Product Related information Sensor/tracking technology Market responding Just-in-time marketing replace just-in-case marketing Relevant, Personal, Timely Optimizing:The task of influencing the level, timing, and composition of demand in a way that will help organization or individual achieve objects -connect supply and demand -filter Marketrelating, Marketconnecting, Marketsharing -ability to maintain and enhance customer relationships and support collaborative and cooperative customer/partners dynamics -building community, support self-expression and ego-gratification -share rewards

Commercial Service and Access Systems

Multiple product owned by a company to shared Laundrymats Car Offer the benefit not the product Illumination Carpeting Transportation Fashion

Crowdsourcing Customer Service and Support Innovation

Netflix leveraged crowdsourcing techniques by holding a public contest Whoever could create a software that better predicted what shows/movies consumers prefered (in comparison to their current software) was awarded $1 million

crowdsourcing

Networking and pooling of money to support initiatives, efforts, concepts based on: -a rich story/narrative that is authentic -a goal with real value, impact or appeal to the market -influence achieved in the community of interest begin with close ties and then natural ties (affinity and influence) -preselling/pre-etailing and Rewards -Transparency and building trust

collaborative finance

P2P banking and crowd-driven investment models that decentralize finance

network growth

Preferential Attachment: When deciding where to link new nodes prefer to attach to more connected nodes, today I am more likely to connect to Facebook/Instagram or Snapchat because that is where everybody is connected Lock-in: To further exacerbate the issue, it is not worth incurring switching costs wants I am comfortable with

Private Access Systems

Privately owned then shared or rented Car Tools Parking Homes

Moore's Law

Refers to the falling size or cost of technology over time -Moore observed that the separation between the transistors and other circuit elements could be shrunk by about 30% each 18 months -Surface area needed for the same components 70% x 70%= 49 %--packing the same number of elements in half the space His observation leads to the insight that when we replace atoms with bits, say in the marketing process over time the real costs of marketing decline. We do not observe this because we continue to increase our budgets but today my email campaign is much richer, has greater reach, and costs less than my snail mail campaign.

AI and the retail industry

Sales and CRM Applications Customer Recommendations Manufacturing Logistics and Delivery Payments and Payment Services

crowdsourcing product

Similar to Netflix, Lays also leveraged crowdsourcing techniques by holding a public contest Contestants entered ideas for potato chip flavors People voted for their favorite flavor and the winner was awarded $1 million

peer and personal production

Tasks traditionally performed by an employee now provided by any willing participant or by an individual disassociated from a firm

collaborative economy

Views Earth's biosphere and energy resources as part of a holistic system, and the economy as a part of the whole Accessibility over ownership Prosumers (production by consumers) Driven by zero marginal cost It costs virtual nothing to create an additional copy of something digital Network driven and abundance creates wealth Prosumers banding together in lateral networks, producing and sharing information goods, renewable energy, 3D printed products, and an array of services on a global Collaborative Commons at near zero marginal costs.

market economy

Views Earth's biosphere as mere externalities to economic activity Ownership driven-sellers and buyers Production is managed by the firm Profit is made at the margins Marginal cost- it is the cost of producing one more unit of a good Materials based, hyperconsumptive-scarcity creates wealth

IoT transformation potential

a "hyperconnected world" interaction with the internet comes from passive engagement with connected objects rather than active engagement with content.

digital

all of its properties and information are stored as a string of zeroes and ones allows for: -Rapid creation and modification/error correction -Compression -Commingle multimedia effortlessly -Bits-about-bits (meta-data) The ability to mark content—the more specifically tagged content the more it can be modified and manipulated

AR or VR technology

almost 90% of companies with annual revenues of 100 million to 1 billion are now leveraging AR or VR technology smaller firms: 10% of marketers utilize AR, and 72% are planning to in the coming year. AR can do way more than simply entertain

collaborative economy

an economy built on decentralized networks and marketplaces that unlocks the value of underused assets by matching needs and haves, in ways that bypass traditional middlemen and disrupt centralized institutions

memes

an idea, behavior, or style that spreads from person to person within a culture

gig

describes a single project or task for which a worker is hired, often through a digital marketplace, to work on demand

collaborative production

design, production, and distribution of goods through collaborative networks

IoT connectivity models

device-to-device device-to-cloud device-to-gateway back-end data-sharing

system hookup collaboration

different places but at the same time

segregated collaboration

different time and places

wisdom of crowds

diverse collection of independently-deciding individuals is likely to make certain types of decisions and predictions better than individuals or even -diversity of opinion and independence: individual interpretation facts and formation of opinion -decentralization and specialization: draw on own local knowledge -ability to aggregation

limits to connection to network connection

dunbar number: limit to the number of people with whom one can maintain stable social relationships (150)

secondary markets (redistribution)

ebay craigslist poshmark freecycle

quantified self

example: fitbit.

proliferation of personas

extensions of self -actual -ideal -experimental other -projected fantasy ex. avatar - from the sanscrit for the incarnation of Godhead, an avatar is the body you wear in a virtual community. an animated articulated representation of a human which represents you, the user, in any virtual environment.

produces and consumes

from cognitive loss: 200 billion hours per year in the US and 100 million hours a weekend watching ads to cognitive surplus (creation/collaboration): 100 million hours of human thought into the production of wikipedia

augmented reality marketing

in augmented reality marketing, the AR element must: - provide a meaningful and branded interaction -play an authentic role in the communications -be a gateway to a new reality of brand engagement needs to be substance to the experience. it has to provide value.

hyper consumption

me, own, ownership, buy, material goods, $$, known brands

sharing economy

millennials are driving force behind it. uber, lyft, airbnb. efficiency and trust. most successful businesses of the future will be based on the idea of sharing and collaboration.

"NOwners"

mobile and connected generation millennials mid-high income high level of education living in urban areas unique personality like to experiment new things innovative, playful and creative participation is rather a choice than a necessity

cooperative business structure

multi stakeholder model that includes providers, customers, founders, investors, geographic communities, and nature most P2P platforms rely on the supply side of the network for their revenue stream, so these users should own and control the platforms

Reed's law

network effect of group participation can scale exponentially; number of possible pair connections

collaborative education

open education and person-to-person learning models that democratize education

considerations of marketing

product, price, distribution, promotion, environmental analysis, market analysis and research, segmentation, targeting, and positioning

read/write culture

public is free to add, change, influence, and interact with their culture

one of advertising's most sought goal

relevance at scale

automation of consumer activity

relinquishing control of certain activities ex. wells fargo paying bills

access

rental, outsourcing, or leasing services offer the benefits of ownership, but without ownership -paradigm shift from ownership and acquisition models to access-based consumption. -firms offer access-based services to customers -product utilization is increased -temporal solutions to customer needs ex. zipcar

direct contact collaboration

same place at the same time

long tail / niche goods

selling a large number of unique items with relatively small quantities sold of each ex. netflix, amazon

passive consumer

sense is direct/based on physical

active consumer

sense of the world is mediated rather than direct

read only culture

small professional group produces all the culture and the public can only absorb and take in the culture

peer to peer / consumer to consumer

technology has enabled people to get what they need from each other, rather than from traditional companies selling goods and services. -paradigm shift from B2C to C2C(P2P) -online platforms. ex. airbnb hosts via the website.

Internet of Things (IoT)

the connection of all things to a network or the Internet. scenarios where network connectivity and computing capability extends to objects, sensors, and everyday items not normally considered computers, allowing these devices to generate, exchange, and consume data with minimal human intervention. seen today in cars, home appliances, buildings, etc. an endless stream of touchpoints. allows: -manufacturers to have visibility into how, when, and where customers are interacting with their products -marketers can see what is impacting a sale -data is real usage. marketers can get a much more sophisticated understanding of people using their products

declarative memory

the kind of remembering that allows you to learn a fact, then later retrieve it and apply it to a new situation

haptics

the science and physiology of the sense of touch. computer scientists have had difficulty transferring basic understanding of touch into VR.

ouishare

think-tank and global community (10,000 members) since 2011, developing a framework that explains and brings together different phenomena into one coherent vision: build a society based on openness, collaboration, and sharing projects and activities include community building, producing knowledge and incubating projects, offering support to individuals, public institutions, and companies through professional services and education

#1 barrier to sharing

trust. 67% express trust concerns as the primary barrier to join a collaborative consumption service. 30% fear that their goods will be stolen or broken. 23% express a basic mistrust of strangers 14% express privacy concerns sharing platforms use peer-review and reputation-based systems to create trust and alleviate the problem of "free-riders" who do not contribute.

Metcalfe's Law

value of networks will grow exponentially states that the value of a network increases with the square of the number of participants -specifically the usefulness of network increases at an accelerating rate as you add participants

pre-commits to consumption

votes, pays, commits to a consumption outcome before acquisition is guaranteed

perceived anonymity

we do not experience the same physiological signals in the absence of face to face interaction

collaborative consumption

we, share, access, redistribute, rent, experiences, wants/needs, endorsements, reputation products and services are swapped, redistributed, shared, rented, or gifted. consumers access to more resources, more convenience, and at lower costs.

traditional firm production

where a centralized decision process decides what has to be done and by whom