EMarketing, 3rd edition Nicole Howatt

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E-Marketing, 3rd editionNicole Howatt

• Chapter 4 Leveraging Technology

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The Marriage of Marketing and Technology

• Marketing managers need to understand the
  capabilities of new media to develop and
  implement an effective marketing plan.

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Building a Web Site

• HyperText Markup Language (HTML)
• Today other languages have been added to support
  interactive Web pages.

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Exhibit 9 - 1 HTML Code and How It Displays in
Browser
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(No Transcript)
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Java

• A general-purpose computer language developed
  by Sun Microsystems that can be used to develop
  interactive Web sites.
• Flexible

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Dynamic HTML (DHTML)

• DHTML encompasses a range of enhancements to the
  HTML standard to make it
• more interactive,
• more capable of multimedia,
• better suited to professional page layout.

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JavaScript

• Origin It was developed by Netscape and then
  became an industry standard.
• Use

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ActiveX

• A competitor to Java but has not achieved
  nearly the same market share.
• It works only with the Windows operating system

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Plug-Ins

• Small programs that must be downloaded and
  installed on the users computer.
• Use
• Play multimedia content encoded in a specific
  format,
• RealPlayer
• Acrobat
• Flash

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XML

• Consumers can request online account information,
  product availability, which are sent from
  database to Web page instantaneously on demand,
• Businesses can easily exchange data with their
  supply chain partners, gaining a significant
  competitive advantage.

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Multimedia

• Challenge Deliver multimedia content over the
  Web requiring high bandwidth to slow home
  connections.
• Solutions

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Database Marketing

• Utilize relational databases to store tables of
  information
• Can be mined for information about clients.
• Can be used to generate promotional campaigns.
• A collection of tables containing information
  about a common subject.

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Computer Viruses

• Intrusive pieces of computer code that secretly
  attach to existing software, reproducing
  themselves and wreaking havoc with data.
• 4 common types of viruses are
• Macro viruses
• Worms
• Trojan Horses
• Boot viruses
• What can e-marketers do?

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Denial of Service Attacks

• Occurs when a hacker floods a computer system
  with millions of requests for information and
  effectively exceeds its ability to respond.
• Remedies
• Distribute multiple copies of a Web site around
  the country in the hope that all sites will not
  be attacked simultaneously,
• Infrastructure companies are also working
  together to develop procedures for early
  detection and neutralization of attacks.

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Price Technologies

• Shopping agents are a key technology that
  e-marketers need to understand when planning
  pricing strategies.
• A shopping agent
• Parallel pull
• For whom is the agent really working?
• The buyer
• The vendors

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Bandwidth

• The carrying capacity of an information channel
  (telephone or cable TV wire).
• Greater bandwidth results in greater information
  delivery speed (less download waiting time).
• Measured in bits per second.
• Modems are used to pump information over a
  telephone line. The fastest modems operate at
  about 50,000 bits per second. 1,000 words sent
  from person A to person B in 1 second.

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Bandwidth

• Just how fast does transmission need to be to
  support various media types?

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Digital Subscriber Line (DSL)

• DSL-up to 8 Mbps
• Cable-Speed500 Kbps - 2.5 Mbps.
• Wireless-low bandwidth

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Other Broadband Options Wireless

• One of the most important standards Wi-Fi
• Operate at 10 Mbps within a range of about 300
  feet,
• Must connect back to a wired network To reach the
  Internet.
• Wireless ISPs (WISPs)
• Offer connectivity to Wi-Fi networks for a small
  daily fee,
• Major issue

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Content Filtering

• Growing segment of Web users children under 18.
• Major concern exposition to pornography,
  violence, or other unwanted material online.
• Solution Curb exposure through education and/or
  legislation

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Content Filtering

• The home user installs software on computer to
  filter content
• Some products operate with a can go and cant
  go lists. Each time the child attempts to access
  a site, the software can
• Make a silent record of the access for the parent
  to see later but do nothing else.
• Mask out objectionable words or images from the
  accessed site.
• Block any access to the banned site.
• Shut down the browser completely.

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Transaction Security

• The number-one concern of all users online.

Is this a legitimate concern? Transactions are
probably much more secure on the Internet than in
the brick-and-mortar world.
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Credit Card Number Theft

• Places where a credit card number could
  potentially be stolen on the Internet
• Stolen from the users computer Very unlikely
  most users do not store credit card numbers on
  their computers,
• Stolen in transit Almost impossible encryption
  algorithms make this impossible,
• Stolen at the merchants site Probably the most
  legitimate user concern.
• The merchant may be
• Fraudulent,
• Honest but have a dishonest employee,
• Honest but fail to protect its database of credit
  card numbers from hackers.

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Encryption Algorithms

• Encryption algorithms are designed to protect
  transaction information in transit.
• The messages are encrypted in both directions.
• But how does the user get the merchants key?
• Merchants give out a public key can encrypt the
  message but cannot decrypt it,
• Only a complementary private key can.
• A lock indicates encrypted communication with the
  merchant.

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Encryption Algorithms

• Solution
• Professionals are able to recognize flaws in the
  security system of the merchants computer and
  suggest remedies to make it more secure,
• Programs such as Smurfand Satan Scan attack their
  own sites,
• Intrusion detection systems, such as Real Secure
  and Entrust, notify the merchant of an actual
  attack by recognizing the digital signatures of
  these attack programs.

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IMC Technologies

• E-marketers use a variety of technologies for
  integrated marketing communication
• Proxy servers,
• Search-engine listings,
• Log files and cookies,
• Rotating and targeted ad banners.

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Proxy Servers

• Proxy server technology that copies entire Web
  sites and then lets users view the copiesa
  technology that makes the Web seem faster for
  users.
• Problem for Banner ads
• Sold on a basis of cost per thousand (CPM)
  impressions,
• Cost varies by site and even by page within site,
  
• Accurate counting of the number of impressions is
  critical.
• BUT Undercounting impressions robs the content
  provider of revenue.
• Solutions count the number of times that a proxy
  server serves out a copy.

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Undercounting?

• 76 a tremendous loss of revenue for companies
  selling ads.
• Most proxy servers are in corporations
• the demographics of users advertisers try to
  reach.
• undercounting biases user demographic
  descriptions.
• Other problems
• The Web site records less impression to charge
  the advertiser.
• The Web site records less page view to report to
  its investors.
• the ads never rotate on the page.

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How Search Engines Work

• Searching up to a month in advance store the
  results in a huge database.
• spiders sent out on the Web to build up a massive
  index or database of all the words found, where
  they were found, how many times they appear on
  each page, and so on.
• When users type in a search term, this is the
  database that is actually queried.

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How Search Engines Work
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But how does the search engine define relevance?

• The spider
• Counts words,
• Looks for the location of those words on the
  page,
• Avoids sites that attempt to trick them by
  repeating words many times in a row.
• Challenge Get sites to appear high in the search
  engine rankings.
• Solution Specialized companies study the search
  engines algorithms for ranking pages.

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Log Files

• Visitors on the Web leave footprints wherever
  they go on the computer visited and on the users
  own computer.
• The computer visited maintains a log of all
  computers that visit the site and exactly which
  pages they see.

• The analysis also forms the basis for site
  redesign as marketers learn which pages are most
  popular.

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Cookies

• Files stored on the users computer.
• Each site a user visits may write a cookie on the
  computer.
• Suppose a user is a repeat visitor to a site that
  requires a password
• The site could authenticate this user by looking
  up her password in a cookie from a previous
  session,
• It could also use the cookie to store her
  purchase choices in an electronic shopping basket
  prior to checkout,
• Raises a question about the ethics of gathering
  information about people without their knowledge
  and explicit consent.

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Cookies
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Rotating and Targeted Ad Banners

• Using the reload button on Yahoo!s Web site
• In a change in the banner ad displayed.
• Yahoo! sells its inventory of banner slots on a
  rotating basis number of impressions over a
  period of time guaranted, but other ads will be
  interspersed with theirs.
• Targeted ads
• Change or rotate based on the search words that a
  user types into the search engine,
• Targeted ads cost more per impression because
  advertisers are more effectively able to reach
  their target based on psychographics.

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DoubleClick Ad networks

• Tracks and target users as they move from site to
  site.
• Stores a cookie on the users computer to
  identify each user by number.
• Whenever the user visits a site in the
  DoubleClick network, DoubleClick reads the
  cookie, looks up and/or modifies the users
  profile, and then targets an appropriate ad.
• The process is very effective from a direct
  marketing point of view and extremely successful.
  DoubleClick delivers billions of ads each day!

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DoubleClick
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DoubleClick

• The user has two cookies on her computer
• One from Travelocity allow personalized
  greeting.
• One from DoubleClick used to track the user
  around the Internet.
• The next time that the user visits a site on the
  DoubleClick network, DoubleClick will be able to
  target an ad to that user for a travel-related
  service closed loop marketing.

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DoubleClick

• Users who do not wish to be tracked have three
  options
• Disable cookies in their browser. In practice
  this option is not effective since many Web sites
  will not provide content if cookies are disabled,
• Delete the cookie files at the end of each
  session,
• Purchase a product such as Intermute blocks all
  requests to the ad server. If the users computer
  never contacts the ad server, the ad server
  cannot write a cookie (tracking is not possible).

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The Platform for Privacy Preferences (P3P)

• A technical solution giving sites needed
  information to serve customers without
  compromising user privacy.
• The idea.
• When the user visits a participating site

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Relationship Marketing Technologies

• Personalization (greeting by name)
• Customization (changing a site's content to
  match a user's preferences) relying on database
  driven Web sites.
• When the user requests a Web page, a program
  extracts content from the database and creates
  the page in a fraction of a second.
• Change the content in the database and the Web
  page is automatically updated the next time it is
  accessed.

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Relationship Marketing Technologies

• Relationship marketing in action Amazon uses a
  database driven Web site that incorporates
  personalization and customization. The process
  begins when the user first registers with Amazon.
  
• Amazon records information about the user in its
  user database file

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Relationship Marketing Technologies

• Amazon then stores the users Userid in a cookie
  file on the users computer.

• On a return trip to the Amazon site, the users
  computer sends the Userid value (12345). Amazons
  server uses the number to look up the users
  record in its database.
• The server merges the users name with its home
  page, inserting the personalized greeting.

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How did Amazon identify the authors preferences?

• It maintains a separate file containing all the
  orders for its users.
• The same file contains books that other users
  have ordered. There are thousands of users
  following the same pattern determine the
  recommendation list.

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To Review the Process Once Again

• First Purchase
• The user makes a purchase,
• Users full information stored in its user file,
• Purchase record stored in its orders file,
• Users Userid stored in a cookie file on the
  users computer.

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To Review the Process Once Again

• Subsequent Visits
• Record pulled from the users computer to find
  the Userid,
• The Userid is used to look up the users record,
• The name is extracted from the users record and
  merged with the Web page to produce a personal
  greeting,
• The Userid is used to look up the users order
  history from the orders file,
• Collaborative filtering software is used to find
  patterns among other users orders, which can
  help to recommend book titles.