chapter technology applications for marketing · there is a computer application for just about...

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196 UNIT 4 — SKILLS FOR MARKETING

C H A P T E R 9

Chapter ObjectivesAfter reading this chapter, you should be able to:

• Identify eight types of computer applications and explain how these are used in business and marketing

• Describe the types of computer software that are infl uencing and reshaping marketing

• Explain how the Internet and the World Wide Web can increasebusiness productivity

Market Talk Continuing advances in

technology have brought about the most

productive period in U.S. and world history.

Technology has also hastened the arrival of the

global economy.

Quick Think The widespread use of

computers has made it easy to communicate

with people all over the world. Name a

few advantages of fast, around-the-globe

communication. Name a few disadvantages.

Technology Applications for Marketing

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Chapter 9 — Technology Applications for Marketing 197glencoe.com

ROLE PLAY Check your understanding of DECA performance indicators with the DECA activity in this chapter’s review. For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.

DECA Events These acronyms represent DECA com-petitive events that involve concepts in this chapter:AAM* ASM

BMDM* BSM

FMALRMS

Performance Indicators The performance indicators represent key skills and knowledge. Relating them to the concepts explained in this chapter is your key to success in DECA competitive events. Keep this in mind as you read, and write notes when you fi nd mate-rial that helps you master a key skill. In these DECA competitive events, you should follow these perfor-mance indicators:• Identify ways that technology impacts business• Demonstrate basic e-mail functions• Demonstrate basic Web-search skills• Demonstrate basic word processing skills• Demonstrate basic presentation applications• Demonstrate basic database applications• Demonstrate basic spreadsheet applicationsThe events with an asterisk also include:• Describe the role of technology in risk managementSome events include these performance indicators:AAM Analyze the impact of technology on retailingADC Demonstrate use of audiovisual aidsASM Describe the impact of technology on vehicle

and petroleum marketingBSM Explain ways that technology impacts busi-

ness servicesHMDM Explain technological services that lodging

facilities provide to improve serviceRFSM Explain ways that technology impacts the

food and beverage industryTMDM Explain ways that technology impacts the

travel and tourism industry

http://www.glencoe.com


Computer Program Uses

Word processing program Letters and memos


Types of ApplicationsThere is a computer application for just about every purpose

you can imagine. For personal use, daily planner and calen-dar applications manage time, and financial software manages money. Some applications serve as address books, while others help manage photos. Virtually all businesses use computer appli-cations. Medical practices use programs to schedule patients and

SECTION 9.1

READING GUIDE

THE MAIN IDEAYour career will probably require an understanding and skillful use of computers and key software.

GRAPHIC ORGANIZERDraw a chart such as this one to note the eight types of software discussed in the section.

OBJECT IVE• Identify eight types of

computer applications and explain how these are used in business and marketing

KEY TERMS• word processing programs

• database programs

• spreadsheet programs

• desktop publishing programs

• graphics and design programs

• presentation software

• home page

• hypertext markup language (HTML)

• communications programs

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• analyze

• edit

Predict Are computers necessary for a marketing project to succeed?

BEFORE YOU READ

Computer Applications

ACADEMIC STANDARDSEnglish Language ArtsNCTE 1 Read texts to acquire new information.

ScienceNSTA Content Standard E Science and Technology: abilities of technological design

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

Connect Name three

computer applications

you use often.


Chapter 9 — Technology Applications for Marketing 199

track billing. Hotels use applications to manage room assignments and generate bills.

Software is constantly being written, tested, and marketed to meet business needs.

Word Processing ProgramsWord processing programs are software

applications designed to create documents that are primarily text but that may contain a few graphics. The benefits of a word process-ing program include being able to determine the format of a document and see on screen exactly how the document will look when printed out. This is called WYSIWYG, for “What You See Is What You Get.” Word pro-cessing programs also help correct and edit mistakes in spelling and grammar, give accu-rate word counts, and add design elements, among dozens of other features. The most common word processing program is Micro-soft Word. Others include WordPerfect, Nisus Writer Express, and Mariner Write. Businesses use word processing programs to:

• Write letters and memos • Produce research papers and reports • Develop business and marketing plans • Write contracts • Take notes and record meeting minutes • Create announcements • Create product manuals

Database ProgramsDatabase programs are applications that

store and organize information. They are like filing cabinets, but with much greater flexibil-ity. Database programs allow users to sort, find, choose (or filter), and organize information. A single database can hold information about the products a company sells, the orders the com-pany has received, shipments of those prod-ucts, and its customers. The power of a database is its ability to link that information together. Database software ranks among the most pop-ular business applications. Common database software includes Filemaker Pro, Microsoft Access, 4D, and Oracle. Marketers use database programs to:

• Maintain customer lists for automated mass mailings

• Keep information about guests and vendors for parties and events

• Catalog furniture and assets for insurance records

• Manage time and track billable hours • Catalog personnel records • Scan the Internet to find suppliers and

customers • Track the searches and purchases of

clients visiting Web sites

Suppose you are using a database of your company’s mailing list. That mailing list contains the names and addresses of more than 3,000 customers. With one keystroke, the database can alphabetize the list by last name, group the addresses by zip code, or display only those customers who use post office boxes. Including purchase histories in the database would allow you to quickly pull up a list of all customers who made purchases during a certain month or who purchased a certain dollar amount of merchandise.

Spreadsheet ProgramsSpreadsheet programs are used to

organize, calculate, and analyze numeri-cal data. With spreadsheets, you can perform financial and scientific calculations, organize numeric information, illustrate data with charts and graphs, and create professional-looking reports. Spreadsheets also graphically display the relationship of data in the form of charts and graphs that are often easier for people to understand than tables of raw data. Microsoft Excel is one of the most popular spreadsheet programs. Others include Quat-tro Pro and XESS. Businesspeople use spread-sheets for many purposes:

• Develop a budget • Analyze financial performance • Track loans or mortgages • Track stock and bond performance • Schedule projects • Manage business assets


• Produce profit and loss statements • Calculate and produce a payroll • Track client/customer responses • Build relationship marketing • Track sales and service • Conduct marketing research

A spreadsheet consists of a grid of rows and columns. Users enter data and formulas into cells on the grid, and the program performs calculations with speed and accuracy not pos-sible by hand or with a calculator. When you change one piece of information, the spread-sheet automatically updates all related num-bers. For example, you can see how adjusting the price of a product would affect sales, taxes, and the overall budget.

Small businesses most commonly use finan-cial software such as Quickbooks or Peachtree software. Larger businesses might use ERP sys-tems, discussed later in the chapter.

Desktop Publishing ProgramsThe invention and rapid development of

desktop publishing programs illustrate

both the com puter’s creative potential and its usefulness for business. Part word processor and part graphics application, desktop publishing programs enable users to edit and manipu-late both text and graphics in one document. Desktop publishing software can produce documents that are creative, attractive, profes-sional, and easy to read. The two most popu-lar commercial programs are Adobe InDesign and QuarkXPress. Marketing uses desktop publishing to:

• Create layouts for newsletters, books, brochures, and advertisements

• Create professional-looking forms, such as invoices and project planning sheets

• Create product manuals

Businesses can save money using desktop pub-lishing programs for printed materials.

Graphics and Design ProgramsGraphics and design programs are soft-

ware applications for creating and modifyingimages, including drawings, designs, and

• FAST RESULTS This ad is for one of many software applications for business. It makes financial management easier and faster.

Why would a travel planning site like Expedia.com need such software?


photographs. Designers can create all graphic elements themselves with the drawing tools provided by the software, or they can use photosand ready-made artwork, often called clip art. These images are usually grouped together in categories like business, food, sports, people, places, animals, cartoons, and holidays.

There are thousands of graphics programs, with some of the most common being Adobe Photoshop, Adobe Illustrator, CorelDRAW, Flash, and Macromedia Freehand. Graphicsprograms can be used by marketers and businesses to:

• Design marketing promotion materials • Create logos and letterheads • Illustrate floor plans and furniture

arrangements

• Create professional-looking illustrations and photographic prints

• Create images for presentations or for Web pages and Internet ads

Presentation SoftwarePresentation software produces slide

shows or multimedia presentations. This software helps users organize ideas and con-cepts to be presented in a meeting. Presenta-tion software can be used by businesses and marketers to:

• Prepare verbal and visual copy for meetings

• Present and discuss ideas interactively via the Internet with clients in other cities or countries

• SHOW and TELL Presentation software has become an indispensable tool in many business meetings.

How could you use such software in your schoolwork?

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202 UNIT 4 — SKILLS FOR MARKETING glencoe.com

• Create slide shows using pictures or Web pages

• Add voice narration to accompany visual material

Presentation software can incorporate a series of slides, film clips, and streaming video. Presentations can include text, bulleted lists, graphs, photos, screen shots from the com-pany Web page, and even interactive problem and decision situations. Colorful graphics andconcise text can be used in marketing promo-tions and sales presentations to persuade clientsand close sales. Voice narration can create the feeling of attending a conference, even when participants are thousands of miles apart.

As global interaction in the business world increases, programs like this simplify communication and cut down on travel

time. Some examples of presentation soft-ware programs are Microsoft PowerPoint and Apple Keynote.

Web-Page EditorsThe Web has become an integral part of

our world. Many businesses use their Web sites to promote their companies and prod-ucts and to stay connected to their custom-ers. Web sites generally contain an initial home page which is the entry point for a Web site. It gives general information to introduce the company, person, or prod-uct. The home page has links to other pages containing additional information, such as product details and contact information. The home page can also link to an online store or other interactive resources such as online questionnaires.

Meeting Olympic StandardsThe road to the Beijing 2008 Olympic Games began in July of 2001 when the capital city of China was awarded the right to host the global event. Soon after, a marketing plan began to take shape featuring three concepts: Green Olympic Games, the People’s Olympic Games, and High-Tech Olympic Games. The city then began a long-range plan to clean the air and water. The Beijing Organizing Committee (BOCOG) encouraged participation from both Chinese and foreign enterprises. To meet the world’s highest technological standards, development began on state-of-the-art staging systems, media centers, and security measures.

Wireless Overload With over 20,000 members of the media and hundreds of thousands of athletes, coaches, staff, and spectators taking part in the 2008 Games, the BOCOG became concerned about the large number of radio devices used for wireless technology. A radio-frequency regulation office was set up and applications taken to assign radio frequencies during the Games. The goal of the program was to guarantee reliability and minimize sources of interference among broadcasters, wireless Internet and cell phone users, and other wireless devices. Users of this equipment would not be allowed to enter Olympic areas without proper authorization and a temporary radio frequency license.

What are some advantages and dis-advantages of the rapid development of technology?

Go to the Marketing Essentials OLC through glencoe.com for an activity on international marketing and computer technology.



glencoe.com CHAPTER 9 — Technology Applications for Marketing 203

At first, creating a Web page meant writ-ing very specific, detailed, and complicated code, called hypertext markup language (HTML). Today Web-editing programs enable people to create Web pages as if they were using a word processor or a desktop publishing program. Some of the most popular of these

applications are Macromedia Dreamweaver, Adobe GoLive, and Microsoft FrontPage.

Communications ProgramsCommunications programs enable

users to electronically communicate with other users around the world through their

Online Radio

Radioparadise is an online radio station run out of the home of Bill and Rebecca Goldsmith. A 35-year veteran of FM radio, Bill Goldsmith loves his new career. He uses a laptop computer to program the station to play an eclectic mix of musical styles. There is no advertising, but satisfied listeners contributed $120,000 in 2003, enough to cover all the station’s costs and still give the Goldsmiths a comfortable lifestyle. As sound and Internet technology continue to become more powerful and less expensive, opportunities for online radio entrepreneurs are expanding.

A New Trend

Internet radio is gaining in popularity. Not long ago, online sound quality was poor and it often dropped out due to connection problems. But digital audio file quality has improved, and broadband technology makes connections more stable. Most new computers have built-in sound capability, so no new equipment is required. You can sit at your computer, do your homework, and listen to your favorite band. Online listening is growing at an average rate of 43 percent a year. Yahoo’s music site and radio network, LAUNCHcast, gets more than two million listeners a week. In the United States, 23 million people tune in to Internet radio each week.

Like other broadcasters, Internet radio stations must pay music companies for the copyrighted music they play.

Global Reach

More than 6,500 stations are available online from more than 130 countries. They are aneasy and inexpensive way for immigrants to stay in touch with their home countries. Theycan also help students learn the language and music of the cultures they are studying.

If you were the owner of an online radio station, how would you plan to earn money from your site?

Go to the Marketing Essentials OLC through glencoe.com to find an activity about online technology and marketing.

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Problem Solving: Multi-Step Problems Solving some problems requires more than one opera-tion used in a logical order. 1. To solve this problem, multiply the

monthly fee of each plan by 12 to find what the annual fee for each plan would cost for a year.

2. Add the installation or equipment charge to each plan respectively to determine the total cost for the service.

3. Find the difference by subtracting the lesser amount from the larger amount.

For help, go to the Math Appendix located at the back of this book.

glencoe.com204 UNIT 4 — SKILLS FOR MARKETING

computers. The key to using any communica-tion software is connecting to some kind of network.

Broadband TechnologyBroadband technology is a high-speed

connection that transmits information through special phone or TV cable lines. It dramatically reduces the time it takes for a computer to send and receive data over a network. This extra bandwidth can be used to send files attached to e-mails and can turn text-based instant messaging sessions into audio chats or even video conference calls where participants use small cameras and can see and hear each other in real time.

VideoconferencingVideoconferencing has many practical

advantages. Perhaps the greatest professional advantage to videoconferencing is that it can reduce the need for expensive business travel. Travel time and expenses can be dramatically reduced by holding videoconferences rather than meeting in person.

Communications ProgramsCommunications programs include e-mail

software such as Microsoft Outlook and Qual-comm Eudora; instant messaging software such as AOL Instant Messenger; and video-conference software, including Apple iChat, Skype, and Microsoft NetMeeting.

Key Terms and Concepts 1. List eight types of software applications commonly used by businesses. 2. What is a database program? What advantage does such a program

offer a business that gathers a large quantity of data? 3. When might a business use presentation software?

Name two examples of this type of software.

Check your answers at the Marketing Essentials OLC through glencoe.com.

Academic SkillsMath

4. You are comparing the cost of two high-speed Internet services. The cable company charges a $59.95 one-time connection fee, plus $34.95 per month. It provides free connection hardware if you keep the service for one year. The phone company charges $89.95 for the connection fee and hardware, plus $29.95 per month. What is the difference in the cost of the two plans for a 12-month period?

Social Studies/Geography

5. Using the Internet or reference materials in a library, research the geography and culture of a country you know little about but would like to visit. Then use word processing software to write a tourism advertisement describing the points of interest that a visitor should not miss.



Point -of-Sale(POS) System

ComputerTechnology for

Marketing


Interactive Technology for MarketingMany computer and software applications are shaping the

way marketers conduct business. These include point-of-sale systems, interactive touch-screen computers, interactive TV, just-in-time schedulers, customer relationship manage ment and enterprise resource planning systems, and the Internet.

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

Analyze Think of the

ways you have used

the Internet.

READING GUIDE

THE MAIN IDEAWith the increased use of the Internet and technological innovations, businesses are finding new marketing opportunities to offer better service to customers.

GRAPHIC ORGANIZERDraw a chart like this one, and write in the five types of specialized computer technology that marketers use.

OBJECT IVES• Describe the types of computer

software that are influencing and reshaping marketing

• Explain how the Internet and the World Wide Web can increase business productivity

KEY TERMS• enterprise resource planning

(ERP)

• Internet

• Internet service providers (ISPs)

• Wi-Fi

• World Wide Web

• hypertext transfer protocol

(HTTP)

• uniform resource locator (URL)

• firewall

• site map

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• consist

• link

Connect How might computer technology change marketing and business in the future?

SECTION 9.2

BEFORE YOU READ

Computer Technology and Marketing

ACADEMIC STANDARDSEnglish Language ArtsNCTE 3 Apply strategies to interpret texts.

ScienceNSTA Content Standard E Science and Technology: abilities of technological design



Point-of-Sale SystemsA common use of computers in retailing

is the point-of-sale (POS) system. This system consists of cash registers and peripherals, such as scanners, touch screens, handheld checkout devices, printers, and electronic kiosks. Scanners feed information directly from merchandise tags or labels into a com-puter to update inventory. See Chapter 16 for more information on POS systems.

Integrated Marketing SoftwareCapturing customer information, viewing

customers’ sales histories, and customizing pro-motions are the core of customer relationship management (CRM). New CRM applications are Internet-enabled, fully integrated Web ser-vice applications. A customer can place an order online and check the progress of the order on the Web or by telephone. In addition to track-ing the business the customer is doing with the firm, CRM can also track the customer’s satis-faction level at each step in the sales process.

Enterprise Resource Planning (ERP) Enterprise resource planning (ERP)

software is even more sophisticated. Using new ERP software, all parts of a company’s business management are integrated, includ-ing planning, manufacturing, sales, market-ing, invoicing, and payroll. Applications are now available to help management with such activities as inventory control, order track-ing, customer service, finance, and human resources. ERP vendors are now integrating CRM software into their ERP suites. Both CRM and ERP applications can help generate mar-keting reports and solve marketing problems.

InteractiveTouch-Screen Computers

A touch screen is a computer display screen that responds to human touch. This allows the user to interact with the computer bytouching words or pic tures on the screen.(See Figure 9.1.) In retail marketing, there is a strong move toward the greater use of this kind of interactive technology. Interactive computers are on shelves in retail stores and

in stand-alone kiosks at malls and airports. The customer reads and responds to questions on the touch-sensitive screen. In this way, the “computerized salesperson” directs the cus-tomer to the correct product.

Customers like touch screens, and the main-tenance costs to business are very low. How-ever, it would be a mistake to think all sales can be made via touch-screen technology. The computer-assisted transactions discussed here are used for products, goods, and services that are fairly standard and receptive to program-mable decision making. Costly or complex products need a degree of personal contact that is not possible without a real person.

Interactive TVInteractive TV marries television with

Internet-style interactivity. Such systems com-bine satellite dishes, DVD players, and televi-sion set-top boxes equipped with modems, microprocessors, hard drives, operating sys-tems, and software, including browsers to make the TV behave more like a computer.

Advertisers like the idea of interactive tele-vision because consumers can instantly get more information about products through their TVs. Viewers can actually interact with the programming. For example, when a viewer sees an ad for pizza and decides he is hungry he can click a link to have that com-pany’s pizza delivered right to the door.

The Click Stream Interactive TV also benefits marketers

because of the click stream. Every click of the remote control goes into a database for later analysis. From this data, a picture of individual viewers and what motivates them emerges. TV programmers can use this data to check viewers’ reaction to content and use that information in deciding what to show in the future. Over time, psychological profiles of individual viewers can be developed, pro-viding an enormous amount of information. Today companies are developing and testing ways in which interactive television can be used for advertising and promotion.

glencoe.com Chapter 9 — Technology Applications for Marketing 207

9.1 Marketing with Interactive Technology

Go to the Marketing Essentials OLC through glencoe.com to find a research project on marketing with technology.

Touch-Screen Computers, Computerized SalespeopleTouch-screen computers allow customers to locate

product information without the help of salespeople.

The computers can check inventory and prices,

suggest other merchandise a customer might like,

and even connect to a wedding gift registry created

in another state.

Interactive TVWith interactive TV, viewers can vote for their

favorite TV character, access information related

to a program, download reality show contestant

biographies, or link to an online store. Sports

fans can use interactive TV to get up-to-the-minute

results for their favorite teams or athletes.

E-CommerceE-commerce allows customers to view products,

compare prices, and order—all at the click of a

mouse. This young man can compare prices and

styles at hundreds of hip-hop “stores” in a matter

of minutes without leaving his home. Information

he supplies when placing his order is captured in

a database and used by a marketer to generate

future sales.

• Conversing with a Computer Interactive technology, in which a customer interacts with a computer to get a

desired result, is dramatically changing the way products and services are marketed. Applications of this technology

are making sales and ordering more streamlined and efficient. They allow market research to capture an enormous

amount of data, and, by using these data, advertisers are able to more effectively reach their markets. Let’s look at

some of the ways interactive technology is being put to use in marketing.

What’s the importance of interactive technology to marketers?

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Internet ConnectivityThe Internet appears to be the world’s

biggest computer network, but it is actually a network of networks, across which informa-tion flows freely.

The Internet began life as a research proj-ect for the U.S. Defense Department. Over time, it became popular among researchers at universi ties. Then it took on a life of its own, growing slowly at first and then exploding in popularity in the 1990s. Telephone com-panies provided connectivity to the first commercial Internet service providers. Dur-ing this time, most people connected to the Internet using a dial-up modem connected to telephone lines. The first modems were slow, but improved technology brought faster modems and better service.

Broadband ConnectionIn the 1990s, high-speed connectivity

became affordable for home users. This service,called “broadband,” uses technology that moves much more data per second along a phoneline. Two types of broadband technology wereintroduced: the digital subscriber line (DSL)and Internet access via cable TV. Both are pro-vided by Internet service providers (ISPs),which are companies that provide Internetaccess for businesses, organizations, and individ-uals. Estimates in 2006 showed that 60 millionAmericans used broadband at home.

Yet another technology has been devel-oped for faster Internet access. Modems trans-mit data across the power grid. Introduced in 2004 by the publicly owned electric power utility in Manassas, Virginia, this service is known as broadband-over-power-lines (BPL). To connect, plug in to any electric outlet. Because the power lines are already in place, the cost of BPL connection can be lower than DSL or cable connections. With people still using dial-up connections, there may be a siz-able market for BPL service.

Wireless Connectivity Wireless routers provide Internet connectiv-

ity without a physical connection. This tech -nology, called Wi-Fi, (short for wireless fidel-ity) establishes a wireless Internet connection using radio frequencies.

Hundreds of millions of people around the world are expected to join the online commu-nity over the next few years. As of 2007, more than one billion people used the Internet, according to the Internet World Stats. That fig-ure is expected to increase to more than 211 million by 2011.

The World Wide WebAlthough the terms are often used synony-

mously, the World Wide Web and the Inter-net are actually two different things. The Webis a subset of the Internet and is a collection ofinterlinked electronic documents. These pagesare viewed with a browser. A browser is any piece of software that tells the computer whatWeb content to display. Web pages contain linksthat prompt the browser to load a new page.

Researcher Tim Berners-Lee invented the technology behind the Web. He developed the hypertext transfer protocol (HTTP)that links documents together and the uniform resource locator (URL), which is the protocol used to identify and locate Web pages on the Internet. It is also known as a Web address.

Today there are billions of pages on the Web. Hundreds of thousands of new Web pages are added every week. Because the World Wide Web does not have a system for locating or categorizing content, companies have developed an assortment of Web directo-ries and search engines to help users find what they are looking for.

Search Engines Two of the most popular search engines

are Google and Yahoo!. Each has a data-base of more than four billion Web pages. Many of the most useful and common Web pages are known to all search engines,

Recall In which government agency did the Internet get its start?


Intranets and Extranets An intranet is a private, secure network,

usually within a company or organization, that contains proprietary company data and can be accessed only by internal users. Some businesses have developed networks for their customers, employees, partners, and suppli-ers. These networks, called extranets, enable customers to access data stored on an inter-nal server. A firewall protects the security of sensi tive information. A firewall is a hard-ware and software checkpoint for all requests for or inputs of data, incoming and outgoing. The firewall reviews the message to make sure that the data content is safe and acceptable for others to view.

Protecting Digital DataAnyone who has used a computer for a

while knows that digital data is not always safe. Sometimes hard disks crash, and the data stored on them cannot be retrieved. Sometimes files are corrupted and cannot be read. Sometimes files are accidentally deleted. The longest-lasting media for backup files are CDs and

but there are also many sites and pages iden-tified only by one or two search engines. That means it can be useful to check search engine sites like Ask.com and Vivísimo to find sites that elude Google and Yahoo!.

Search engines try to return results that relate well to your search terms. But they are also designed to make money for the com-pany. To do that, search engines will place paid advertisers near or high up in the search results listings.

Electronic Mail E-mail represents another revolutionary

change prompted by the development of the Internet. The popularity of e-mail is attributable to its instant delivery and to the fact that the sender and receiver do not have to be available at the same time.

For example, an appliance store employee can e-mail an order for new merchandise to a shipper in a different time zone. The shipper can acknowledge the order when she arrives at work, and the merchandise can be prepared for shipment almost immediately.

From Server to Web Portal?

AOL (America Online) was the first major commercial Internet service provider (ISP). In the late 1990s, AOL had more than half the market. As Internet users became more sophisti-cated, other providers offered more transparent access to the Internet with less advertising to sift through. They also offered faster broadband connections. At the end of 2003, AOL had 24 million subscribers, down from a high of 35 million.

One way AOL is fighting this trend is by focusing more attention on its Web site, AOL.com. The site has some public areas, but its main purpose is to provide subscrib-ers with services such as e-mail access away from their dial-up location. In 2006, AOL announced that it would no longer charge for e-mail accounts and software but charges for special features. By mak-ing services free, AOL hoped to draw more users to their ad-supported Web sites.

How could a free public Web portal be more profitable for AOL than a system with subscribers paying monthly fees?

Go to the Marketing Essentials OLC through glencoe.com to find an activity about Internet marketing.




DVDs. Many people use removable, external hard drives because they can be stored off-site, yet are quick and easy to retrieve and access. External drives back up your data with the push of a single button.

Computer files are also vulnerable to viruses, worms, and spyware. Viruses and worms can destroy your data, and spyware can track wherever you go on the Web. It can force you to visit certain Web sites, and it can collect personal information. Viruses, worms, and spyware can sneak into your system in an attachment to an innocent-looking e-mail message. The best way to pro-tect your data is to use reputable anti-virus and anti-spyware software.

Spam In 2003, Congress passed the CAN-SPAM

law, which bans certain spamming techniques and requires senders to include a valid address. Although the law has made it easier to install filters to block spam, unwanted e-mail is still a problem. The law has merely driven major spammers offshore, beyond the reach of U.S. anti-spam laws.

Web-Site Development A business develops a Web site to inform

consumers about the company and its prod-ucts, enable the business to sell its products, provide related resources, and handle ser-vices and inquiries after the sale.

Any Web site’s domain name comes from the Internet Corporation for Assigned Names and Numbers (ICANN). The domain name is the part of a URL that identifies a server or service provider. Top-level domains are three-letter extensions, which follow the dot in a Web address. Examples of top-level generic domains include .com and .biz for businesses and .org for nonprofit organizations.

Companies should plan to incur several costs to develop Web sites, including domain name registration, development and mainte-nance of the Web site, and subscription to a server (if one is not available in-house).

Most business Web sites have similar com-ponents that include a branding logo, con-tent, a shopping cart for electronic purchases, a secured payment system for purchases, and general policies related to privacy, shipping, returns, and collection of sales taxes.

• SECURITY While computers have become indispensable, they are also vulnerable to virus attacks and data theft.

Name several reasons that the user of a home computer would want to purchase an Internet security software package.

Numbers and Operations:Ratios A ratio compares two numbers. Ratios can be expressed as fractions. When the comparison is a part to its whole, the numerator of the fraction usually represents the part, and the de-nominator represents the whole.1. To solve this problem, divide the nu-

merator by the denominator of each ratio to get a decimal number.

2. Multiply the decimal number by 100 to get the percent.



When developing a Web site, the designer creates a site map. A site map outlines what can be found on each page within the Web site. This concept in Web-site design is known as global navigation. The site map guides a viewer to the desired information and provides links to different parts of the Web site.

A Web-site designer prepares a layout grid for every page within a Web site. Layout grids identify all the Web-page elements, such as the title of the page, the branding logo, the placement of banner ads, the content, related links, and a navigation bar for movement within the site.

E-CommerceE-commerce is the process of conduct ing

business transactions on the Internet.

E-commerce sales figures have risen dra-matically over the years. In 2000, $28 billion was spent in online shopping in the UnitedStates. That translates to less than one percentof the total retail sales figures for the year. In 2006, that had risen to nearly $102 billion, representing seven percent of all retail sales.

As e-commerce grows, it is redefining the relationship between the seller and the buyer. E-commerce can exist B2B (business to business)or B2C (business to customer). Web marketsdiffer from traditional markets in that they areopen for business 24 hours a day, seven days aweek. They are also unencumbered by costly middlemen and distribution channels. Addi-tionally, suppliers all over the globe can competeif they can deliver the quality, price, quantity, and service demanded by the customer and aredeemed trustworthy financially and ethically.

Check your answers at the Marketing Essentials OLC through glencoe.com.

Key Terms and Concepts 1. Give four examples of specialized computer systems used for marketing. 2. What are five common uses of the Internet

in the workplace?3. What is the best way to protect digital data?

Academic SkillsMath

4. For four nations, the following ratios show the numbers of people in millions who have access to the Internet compared to the population in millions. Calculate the percent of the population that has access to the Internet for each country: United States, 185.9/290.34; Australia, 13.05/19.73; Japan, 77.95/127.21; China, 95.8/1,280.

English Language Arts/Writing

5. Do research using consumer magazines and the Internet to learn more about interactive TV. Go to a store to see the features demonstrated. Decide if you think the benefits of inter-active TV outweigh its potential for invasion of privacy. Write a paper persuading the reader of your point of view.



212212 UNIT 4 — SKILLS FOR MARKETING glencoe.com

ERIC MATHIASENSENIOR SOFTWAREANALYSTORBITZ.COM

What do you do at work?

My fi rst role is that of change or confi guration manager. It is my responsibility to make sure changes to the site software have been approved by our software testing team and then are prepared and made active on our Web site in as smooth and problem-free a process as possible.

My second function is to work on the installation and deployment of existing site software to new servers or new software to existing servers. My third function is to help track down problems with the Web site when they occur.

What skills are most important to you?

Investigation and tracking. Investigation is important for both fi nding problems and for fi nding solutions. Researching problems is a big part of what I do, and to be a good researcher you have to be curious, creative, and persistent. Tracking is important to most professional jobs to make sure you complete all tasks and also to make sure you don’t repeat past mistakes.

What is your key to success?

First, be persistent. Don’t give up just because things are harder than you expected. Second, stay aware of unexpected opportunities—you never know where a great idea may come from. Third, don’t be afraid of failure. Especially when you’re starting out, you can learn as much and often more from trying and failing than you can from easy success.

Go to the Marketing Essentials OLC through glencoe.com for an activity about careers in computer technology.

Why do you think it is harder now for someone to break into a Web-related career without a college degree?

Courses computer science, math, English

Degrees AA degree, BA degree

Entry-level positions might consist largely of routine Web site maintenance and management; these positions can lead to more robust, creative roles.

Growth to increase signifi cantly faster than average for the next ten years

Source: Occupational Outlook Handbook

Computer and technical skills, organization, strong research and reading skills




SECTION 9.1• Computer software applications satisfy business needs for communications, accounting

and record keeping, publishing, and graphic design.

SECTION 9.2• Computer technologies developed especially for marketing fulfi ll needs in the areas of

point-of-sale systems, integrated marketing programs, interactive touch-screen computers,

interactive TV, and the Internet.

Key Terms• word processing programs

(p. 199)• database programs (p. 199)• spreadsheet programs

(p. 199)• desktop publishing programs

(p. 200)• graphics and design programs

(p. 200)• presentation software

(p. 201)• home page (p. 202)

• hypertext markup language (HTML) (p. 203)

• communications programs (p. 203)

• enterprise resource planning (ERP) (p. 206)

• Internet (p. 208)• Internet service providers

(ISPs) (p. 208)• Wi-Fi (p. 208)• World Wide Web (p. 208)• hypertext transfer protocol

(HTTP) (p. 208)

• uniform resource locator (URL) (p. 208)

• fi rewall (p. 209)• site map (p. 211)

Academic Vocabulary• edit (p. 199)• analyze (p. 199)• consist (p. 206)• link (p. 206)

1. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence.

2. How are software applications used in

business? (9.1)

3. Give three examples of uses for database

programs. (9.1)

4. How can graphics programs be used in

marketing? (9.1)

5. What is presentation software? (9.1)

6. Why might businesses use

videoconferencing? (9.1)

7. Name two examples of interactive technology

that are relevant to marketing activities. (9.2)

8. Describe common uses of the Internet in

marketing. (9.2)

9. What are the essential components of a Web

site? (9.2)

10. List some expenses incurred by a Web site.

(9.2)

11. What are the advantages of e-commerce?

(9.2)

C H A P T E R 9 R E V I E W


12. Workplace Skills The Digital Workplace Work in a

group. First, pick a type of business to

open together. Then talk to computer

salespeople and use the Internet to fi nd

out what computer equipment and software

applications are necessary to run that

business and how much the technology costs.

Identify the main hardware components of a

computer. Also, fi nd out what communications

software is available, such as programs for

scanning and/or sending faxes. Make a three-

to fi ve-minute presentation of your results to

the class.

13. Technology ApplicationsWires Do some research on the Internet

about the different kinds of connectors

(such as wireless transmitters and USB,

serial, and Ethernet cables) used to

connect computers with monitors, printers,

broadband connections, and other computer

equipment. Using word processing software,

describe four different types of connectors

and the equipment with which they are most

often used.

14. Math Practice Faster than Fast A millisecond (ms) is

a unit of time used to describe how long it

takes a computer to complete an operation.

1 second = 1,000 ms. If a computer can

execute 25 operations per millisecond,

how many operations can it complete in

one minute? (60 seconds per minute)

Measurement: Computation

Understand measurable attributes of objects

and the units, systems, and processes of

measurement.


15. Science Technology and Mathematics Use

spreadsheet software to create different types

of graphs showing the results of scientifi c

experiments or data-gathering activities. For

example, graph the decrease in temperature

of a heated liquid in various environments

(warm oven, comfortable room, cold outdoors)

and compare the time it takes for the liquid to

reach equilibrium with its surroundings.

16. Technology and Success

Look in the business section of a newspaper

and fi nd an article about a large corporation

that is losing money and why it is failing.

Think about how computers and software

applications could help the company. Using

a word processing program, write a one-

page report outlining your recommendations

for technology that can help make the

corporation profi table again.

17. Data-Entry Procedures Using a spreadsheet program, create a

document to track monthly travel expenses

for a salesperson. Include columns for miles,

parking fees, meals, lodging, airfare, car

rentals, and miscellaneous. Enter data in

each column. Each entry should be dated.

Provide a total for each expense as well as a

total for the month.

Activity Save your electronic document on a

disk, memory card, or e-mail it to your teacher,

so it can be shared and discussed in class.


Chapter 9 — Technology Applications for Marketing 215glencoe.com

18. The Choice Is Yours Your boss has asked you to research

computer technology that is available for

persons with special needs. This is called

adaptive or assistive computer technology.

Prepare a memo to outlline your fi ndings.

1. Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.

If music stored on a computer takes up 27.5 gigabytes of a 110 gigabyte hard drive, what percentage of the hard drive is music?

A 25% B 27.5% C 55% D 35%

2. Directions Choose either True or False as the answer. Write the letter for the answer on a separate piece of paper.

Graphics and design programs are typically used to produce slide shows and multimedia presentations.

T F

Role PlayAnimal Shelter VolunteerSituation Assume the role of volunteer

at a privately operated animal shelter. The

shelter is a humane site that seeks homes

for abandoned cats and dogs. The shelter

operates on donations from the public, small

grants from local businesses, and volunteer

help. There is no pet adoption fee; however

contributions are accepted. The animal shelter

director (judge) wants the shelter to have a

Web site that would feature photos of the

pets available for adoption and information

about the shelter. The shelter director (judge)

has asked for your ideas about what should

be included on the proposed Web site.

Activity You are to make a list of your ideas

and recommendations for the Web site and

present them to the shelter director (judge).

Evaluation You will be evaluated on how well

you meet the following performance indicators:

• Explain the nature of the Internet.

• Create and post basic Web page.

• Describe tools

used in web-site

creation.

• Explain the

impact of the

Internet on

marketing.

• Make oral

presentations.

For more information and DECA Prep practice, go to the Marketing Essentials

OLC through glencoe.com.


First answers are often correct, but do not be afraid to change an answer if, after thinking about it, it seems wrong to you.

Test-Taking Tip



chapter technology applications for marketing · there is a computer application for just about...

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