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E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 4: Leveraging Technology © Prentice Hall 2003.

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Presentation on theme: "E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 4: Leveraging Technology © Prentice Hall 2003."— Presentation transcript:

1 E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 4: Leveraging Technology © Prentice Hall 2003

2 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

3 The Marriage of Marketing and Technology Marketing managers need to understand the capabilities of new media to develop and implement an effective marketing plan. E.g. AutoTrader.comAutoTrader.com

4 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

5 Product Technologies E-marketers can use a wide variety of technologies to support their product strategies.

6 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

7 Building a Web Site Building and publishing Web pages = greatly simplified. HyperText Markup Language (HTML): language originally used to construct all Web pages. Today other languages have been added to support interactive Web pages. These languages creates a computer program that runs On the Web server = slow response times, On the user's browser = instantaneous response.

8 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

9 HTML Forms = Text boxes, check boxes, radio buttons, drop-down lists.  When completing a survey or ordering online, the customer fills out an HTML form. Creating the form is easy. Processing the information is more difficult.  The processing is performed on the server by a separate program:  Common Gateway Interface (CGI) scripts for Unix operating system,  Active Server Pages (ASP) for servers running Microsoft.

10 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

11 Java = A general-purpose computer language developed by Sun Microsystems that can be used to develop interactive Web sites. Fast: Programs run very quickly on the user’s computer system. Flexible: Programs support animation, streaming media, 3D visualization, or almost any other task.

12 Java Safe: Programs run in a protected memory space where they cannot infect or otherwise damage the user’s computer system. Difficult to program: A Java Development Kit (JDK) can simplify the process but Java is a language for professional programmers. Dynamic HTML: Enhanced form of HTML providing many of the interactive functions of java without the heavy-duty programming.

13 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

14 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. These enhancements include: JavaScript, Cascading style sheets (CSS), plug-ins, ActiveX.

15 JavaScript Name: has nothing to do with Java+ was chosen because of the cachet of the Java language. Origin: It was developed by Netscape and then became an industry standard. Use: Create the fancy buttons and rollover effects, Check user input for errors and issue warning messages, Detect the user’s browser version and monitor size and send a version of the Web page optimized for the user’s machine, Create calculators, clocks, games, and many other applications.

16 ActiveX = A competitor to Java but has not achieved nearly the same market share. It works only with the Windows operating system: Developers programming in ActiveX risk alienating a portion of the user base, ActiveX programs can access the file system on the user’s computer = opens up the possibility of privacy abuse.

17 Plug-Ins = Small programs that must be downloaded and installed on the user’s computer. Use: Play multimedia content encoded in a specific format, Create content with relatively little effort. Safety: For fear of viruses, users are disinclined to download and install software, Some plug-ins are so prevalent that they have a large installed base of users and are safe.

18 Plug-Ins The best known plug-ins:  RealPlayer: Plays streaming audio and video over low- bandwidth connections,  Acrobat: Allows professional page layouts to be saved with the possibility lock the document so it cannot be altered,  Flash: Plays animations including charts, graphics, sounds, scrolling lists, tickers, and movie clips.

19 Cascading Style Sheets (CSS) Assist with precise formatting of text and graphics on the Web page. Enable relatively painless sitewide updates. Allow the separation of a document’s content from its presentation in separate files. Have to be used with caution because some older browser versions cannot support them:  Solution: create multiple versions of each page, then send the appropriate one to the user.

20 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

21 XHTML Goals: Bring more uniformity to the HTML language by requiring every tag to have a matching end tag, Increase the separation between document content and presentation (CSS). XHTML can be seen as an intermediate step toward the real direction that the Web may be heading = XML.

22 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

23 XML XML completes the separation of document content and presentation opening up a significant business application:  Web enabling business databases + the exchange of information from those databases:  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.

24 XML Drawbacks: Lack of support for the standard by Netscape (pages have unpredictable displays on a Netscape browser), It is relatively difficult to program and only accessible to professional programmers. Developers have three options: 1. Learn XML and become professional programmers, 2. Use an XML authoring tool such as Microsoft Word to automatically generate XML, 3. Ignore the standard in the same way that many developers ignored Java.

25 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

26 Multimedia Challenge: Deliver multimedia content over the Web requiring high bandwidth to slow home connections. Solutions: Speed up the home Internet connection using a high-bandwidth wired or wireless connection, Compress the multimedia content into smaller packets of information, RealNetworks: compression audio (RealAudio) and video (RealVideo), MP3: compression technology for music (1/10 th of original size, Stream the multimedia so that the user can play a piece of it while the rest downloads, Distribute multiple copies of the multimedia content around the Internet so that it is closer to the end users and delays are avoided.

27 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

28 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. Relational databases such as Oracle and DB2 utilize a very powerful query language called SQL.

29 Database Marketing E-marketers use the client and interest files to target by demographics or psychographics. Structured Query Language (SQL): used to extract information from large databases. How does the user data get into the database? Explicit method: User fills out a short survey during the registration process at a Web site, Implicit method: Study of the user’s pattern of frequenting pages on a site.

30 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

31 Computer Viruses = Intrusive pieces of computer code that secretly attach to existing software, reproducing themselves and wreaking havoc with data. They can spread throughout a computer network. Problem: Reinforce consumer perceptions that the Internet is not secure.

32 Computer Viruses 4 common types of viruses are: Macro viruses: attached to data files and infect Microsoft Word or Excel when users open the infected data file, Worms: replicate rapidly, eating up memory, Trojan Horses: are activated at a certain date or event, Boot viruses: reside on floppy disks and destroy operating systems when users mistakenly boot the computer with a disk inserted.

33 Computer Viruses What can e-marketers do? The best place to stop a computer virus is before it reaches the end user. All e-mail messages pass through a mail server that stores the messages on a disk drive in users’ mailboxes: Software installed on the mail server can scan all incoming messages for known viruses and destroy them. Anti-viral software can also be installed on each individual computer such as McAfee Anti-Virus, or the Symantec's Norton AntiVirus.McAfee Anti-VirusSymantec's Norton AntiVirus

34 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

35 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.

36 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

37 Price Technologies Shopping agents are a key technology that e-marketers need to understand when planning pricing strategies. A shopping agent: Helps consumers shop by compiling all the information they need to complete a purchase, Knows which stores to visit, provides accurate product and price information, Helps buyers compare product features and prices, negotiates specials on their behalf, Completes the transaction with the click of a button, Uses a technology called parallel pull.

38 Price Technologies The merchants’ benefits: The agents attract customers to their sites. The agents’ benefits: Sell preferred placement and advertising inventory as well as by collecting referral fees. Easy price-shop + little product or merchant differentiation perception  Commodity markets with all prices reaching similar levels. BUT most consumers are brand sensitive about their merchants:  Look at the price sorted results for a familiar merchant name.

39 Price Technologies For whom is the agent really working? The buyer: the agents do not charge vendors a fee for listing such as PriceSCAN. The vendors: certain agents may charge a fee for listing and additional fees for preferred placement in the listings but the consumer is usually able to sort the listings by price. One weakness: vendor ‘s selectivity is not prominently mentioned on the site.

40 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

41 Bandwidth and Market Opportunities Complex infrastructure systems bring a variety of utilities to the consumer’s home. The consumer is interested by the benefits and not how the systems works. BUT to provide these additional services major infrastructure improvements behind the scenes are required.

42 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.

43 Bandwidth: Just how fast does transmission need to be to support various media types?

44 Bandwidth: Developing low-involvement brands requires high-quality multimedia on the Web but this is only available for high-bandwidth users. High-bandwidth means:  Personal selling and customer service,  Phone calls delivered over the Internet,  Delivery of music CDs over the Web,  Delivery of movies over the Web,  Real-time virtual reality. DIFFICULTY: The telephone line to the consumer’s home was never designed to carry voice communications.  Need major infrastructure changes.

45 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

46 Digital Subscriber Line (DSL) Methods for transmitting at speeds up to 8 Mbps over a standard phone line. Uses the phone line already installed in consumer homes. Allows users to simultaneously make phone calls + surf the Web because the data travels outside of the audible voice band. Users must install a DSL modem + phone companies have to deploy the infrastructure to support DSL technology (some technical issues remain).

47 Cable Modems Allow transmission of Internet traffic over the cable TV wire connected to the home. Speed:500 Kbps - 2.5 Mbps. Problem: having too many subscribers! (cable neighborhood share bandwidth).

48 Cable Modems The advantages: Early market penetration = the cable modems were the first available, Diffusion via word of mouth, The cable companies solved their infrastructure issues early and are able focus on establishing value-added services (CD-quality audio) = barriers to entry for the phone companies.

49 Other Broadband Options: Wireless Relies on towers to relay signals. Personal data assistants (PDAs), notebook computers and other wireless devices are best served by wireless communication. Constraint: Users want access anytime from anywhere.

50 Other Broadband Options: Wireless A natural outgrowth: Cell phone towers already in place + network very reliable + most of the communication already digital. Problem: bandwidth, network designed to handle low bandwidth voice communications. Data communications is slow. Solution: Third generation (3G) cell phone networks = transfer data up to 10 times faster.

51 Wireless Local Area Networks (WLANs): Major players such as Hewlett Packard are investing in the infrastructure to provide WLANs to hotels and airports, The major issues are ease of connectivity and the number of different devices that can be interconnected. Other Broadband Options: Wireless

52 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: how to recover revenues when their subscribers roam to other WISP networks. Other Broadband Options: Wireless

53 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

54 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:  Educate children not to pursue offensive online material.  Ban offensive material through legislative means.  Require to put age warnings & run an age verification system  Require to rate their material using industry-standard ratings.

55 Content Filtering Solution: Limit exposure by use of technology:  Ask the Internet service provider to filter the content.  Filter the content on the user’s own computer. Software filter content on any computer along the path from the user’s computer to the Internet. Proxy server: All communication to and from any corporate computer to the Internet passes through this server.

56 Content Filtering The home user installs software on computer to filter content (NetNanny, CyberSitter). Some products operate with a “can go” and “can’t 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.

57 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

58 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.

59 Credit Card Number Theft Places where a credit card number could potentially be stolen on the Internet: Stolen from the user’s 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 merchant’s 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.

60 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 merchant’s 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.

61 Encryption Algorithms

62 After the user has chosen to enter secure mode, Amazon continues to reassure the user even on the secure mode screen!

63 Encryption Algorithms Sometimes the retailer does not adequately protect the records stored on its computer. Hackers: Begin by obtaining access to an account with very limited access to protected computer resources, Work their way up from account to account until they have sufficient access to compromise the system.

64 Encryption Algorithms Solution: Professionals are able to recognize flaws in the security system of the merchant’s 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.

65 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

66 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.

67 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

68 Proxy Servers Proxy server: technology that copies entire Web sites and then lets users view the copies—a 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.

69 Proxy Server

70 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. Solution: The MatchLogic goes straight to the heart of the problem: how many eyeballs see an ad.

71 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

72 How Search Engines Work The Web contains billions of pages.  Impossible to search the entire Web every time someone types in a search term. Search engines do the searching up to a month in advance + store the results in a huge database. They send automatic programs called spiders 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.

73 How Search Engines Work

74 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.

75 But how does the search engine define relevance? Relying on user behavior to form its rankings. Google ranks sites according to how many links point to the site from other Web sites. Challenge: Get sites to appear high in the search engine rankings. Solution: Specialized companies study the search engines algorithms for ranking pages.

76 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

77 Log Files Visitors on the Web leave footprints wherever they go on the computer visited and on the user’s 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.

78 Cookies Files stored on the user’s 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.

79 Cookies

80 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

81 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.

82 DoubleClick = Ad networks Tracks and target users as they move from site to site. Stores a cookie on the user’s 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 user’s 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!

83 DoubleClick

84 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.

85 DoubleClick Users who do not wish to be tracked have three options: 1. Disable cookies in their browser. In practice this option is not effective since many Web sites will not provide content if cookies are disabled, 2. Delete the cookie files at the end of each session, 3. Purchase a product such as Intermute blocks all requests to the ad server. If the user’s computer never contacts the ad server, the ad server cannot write a cookie (tracking is not possible).Intermute

86 The Platform for Privacy Preferences (P3P) A technical solution giving sites needed information to serve customers without compromising user privacy. The idea: users specify in advance how much information they are willing to reveal to a Web site and under what conditions. Information is stored on each user’s computer. When the user visits a participating site: the user’s browser reviews the P3P policies of that site and compares them against the stored policies on the user’s computer, If this is acceptable to the browser, then it loads the page, This saves the user from having to read the privacy policy of each site—something that users very seldom do.

87 Overview The Marriage of Marketing &Technology Product Technologies Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks Price Technologies Distribution Technologies Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad Banners Relationship Marketing Technologies

88 = P ersonalization (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.

89 Relationship Marketing Technologies

90 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:

91 Relationship Marketing Technologies Amazon then stores the user’s Userid in a cookie file on the user’s computer. On a return trip to the Amazon site, the user’s computer sends the Userid value (12345). Amazon’s server uses the number to look up the user’s record in its database. The server merges the user’s name with its home page, inserting the personalized greeting.

92 “We have recommendations for you in books. ” Clicking on this link brings up this exhibit showing a recommendation in an area in which the author has recently ordered books—romance set in Southeast Asia.

93 How did Amazon identify the author’s 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.

94 To Review the Process Once Again First Purchase: The user makes a purchase, User’s full information stored in its user file, Purchase record stored in its orders file, User’s Userid stored in a cookie file on the user’s computer.

95 To Review the Process Once Again Subsequent Visits: Record pulled from the user’s computer to find the Userid, The Userid is used to look up the user’s record, The name is extracted from the user’s record and merged with the Web page to produce a personal greeting, The Userid is used to look up the user’s 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.

96 Companies specializing in CRM software solutions: Siebel Systems ( www.siebel.com ) www.siebel.com E.piphany ( www.epiphany.com ) www.epiphany.com Oracle ( www.oracle.com ) www.oracle.com PeopleSoft ( www.peoplesoft.com ) www.peoplesoft.com SAP ( www.sap.com ) www.sap.com SAS ( www.sas.com ) www.sas.com Net Perceptions ( www.netperceptions.com ) www.netperceptions.com In many cases a company interested in CRM will hire a consulting firm such as Accenture to both choose the software vendor and install and tune the software.

97 Key Terms 3G cell phone ActiveX ASP Bandwidth Cable modem Cache CGI Closed loop marketing Content filtering Cookie CSS DoS attack DSL Dynamic HTML Encryption FTP HTML java

98 Key Terms JavaScript JDK Log file MP3 Multimedia P3P Parallel pull Plug-In Private key Proxy server Public key RDBMS RealAudio RealVideo Relevance ranking Shopping agent Spider SQL Wi-Fi Wireless XHTML XML

99 Review Questions 1..What are the advantages of using java, dynamic HTML, JavaScript, plug-ins, and XHTML? 2..How and why do e-marketers use database marketing technologies? 3..What are the four types of computer viruses? 4..How do consumers and e-marketers use shopping agents? 5..What is bandwidth and how does it affect the delivery of multimedia content over the Web? 6..What is content filtering and why is it important to some Internet users? 7..How are e-marketers addressing concerns about transaction security? 8. What are some advantages and limitations of using proxy servers and cookies as technologies for online advertising?

100 Discussion Questions 1..Both CSS and XML separate a document's content from its presentation. Why is this an important goal? 2..Which solution(s) would you recommend for content filtering to a local elementary school? Why? 3..Why would a company pay a hacker to break into its site? What ethical issues are involved in this type of decision? 4..Many Internet users are concerned about privacy issues. Should sites that are in the DoubleClick network be required to publicly disclose this to visitors? Support your position. 5..Why is customization more difficult to implement than personalization? 6. As a rule of thumb a company should use off the shelf CRM solutions. Yet, Amazon wrote most of its own software. Why did Amazon break the rule?


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