Download Ch03

OHT 3.1
Chapter 3
The Internet macro-environment
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.2
Learning objectives
• Identify the different elements of the Internet
macro-environment that impact on an
organisation’s Internet marketing strategy
and execution;
• assess the impact of legal, moral and ethical
constraints and opportunities on an
organisation and devise solutions to
accommodate them;
• evaluate the significance of other macroeconomic factors such as economics,
taxation and legal constraints.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.3
Questions for marketers
• Which factors affect the environment
for online trading in a country?
• How do I make sure my online
marketing is consistent with evolving
online culture and ethics?
• How do I assess new technological
innovations?
• Which laws am I subject to when
trading online?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.4
What is the macro-environment?
Figure 2.1 The Internet marketing environment
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.5
Example - Oxfam
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.6
Ethical issues
• Ethical issues concerned with personal
information ownership have been usefully
summarised by Mason (1986) into four areas:
• Privacy – what information is held about the
individual?
• Accuracy – is it correct?
• Property – who owns it and how can ownership
be transferred?
• Accessibility – who is allowed to access this
information, and under which conditions?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.7
Ethics – Fletcher’s view
• Fletcher (2001) provides an alternative
perspective, raising these issues of concern for
both the individual and the marketer:
• Transparency – who is collecting what
information?
• Security – how is information protected once
collected by a company?
• Liability – who is responsible if data is abused?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.8
Types of information needed
• Contact info
• Profile info
• Behavioural info
– Single site
– Multiple sites
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.9
Company best practice 1 (see p.88)
1 Inform the user, before asking for information:
• Who the company is
• What personal data is collected, processed and
stored
• Purpose of collection
2 Ask for consent for collecting sensitive personal data and
good practice to ask before collecting any type of data.
3 Provide a statement of privacy policy. ‘A privacy
statement helps individuals to decide whether or not to
visit a site and, when they do visit, whether or not to
provide any personal information to the data controller.’
4 Always let individuals know when 'Cookies' or other
covert software are used to collect information about
them.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.10
Company best practice 2 (see p88)
5 Never collect or retain personal data unless it is strictly
necessary for the organisation’s purposes. For example,
a person’s name and full address should not be required
to provide an online quotation. If extra information is
required for marketing purposes this should be made
clear and the provision of such information should be
optional.
6 Amend incorrect data when informed and tell others.
Enable correction on-site.
7 Only use data for marketing (by the company, or third
parties) when a user has been informed this is the case
and has agreed to this (this is opt-in).
8 Provide the option for customers to stop receiving
information (this is opt-out).
9 Use technology to protect the customer information on
your site.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.11
A summary of actions
1. Reassure customers by providing clear
and effective privacy statements and
explaining the purpose of data collection
2. Follow privacy and consumer protection
guidelines and laws in all local markets
3. Make security of customer data a priority
4. Use independent certification bodies
5. Emphasise the excellence of service
quality in all marketing communications
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.12
Technology
• Think of new mobile technologies
introduced in past 2-3 years. Examples:
– WAP
– 3G
– MMS (multimedia messaging)
• What issues do these raise for managers?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.13
Managers’ choices
1. ‘Wait and see’
2. Early adopter
3. Intermediate
What are the benefits of each for mobile
phone companies introducing these
technologies?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.14
Diffusion of innovation curve
Figure 3.5 Diffusion–adoption curve
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.15
Mobile/wireless proposition
Element of
proposition
Evaluation
Not fixed location
The user is freed from the need to access via the desktop making access
possible when commuting, for example.
Location-based
services
Mobiles can be used to give geographically-based services, e.g. an offer in
a particular shopping centre. Future mobiles will have global positioning
services integrated.
Instant access /
convenience
The latest GPRS and 3G services are always on, avoiding the need for
lengthy connection.
Privacy
Mobiles are more private than desktop access, making them more suitable
for social use or for certain activities such as an alert service for looking
for a new job.
Personalisation
As with PC access personal information and services can be requested by
the user, although these often need to be set up via PC access.
Security
In the future mobile may become a form of wallet, but thefts of mobile
make this a source of concern.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.16
WAP infrastructure
Figure 3.8 Hardware and software infrastructure for a WAP system
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.17
Mobile technology standards
Figure 3.9 Mobile access technology standards
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.18
Example 3G device
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.19
Element of
proposition
Instant access/
convenience
iDTV proposition
Evaluation
Interactive services are available quite rapidly, but
return path connections using phone lines for
purchase are slower.
Personalisation This is less practical for PC and mobile since there
are usually several viewers.
Security
Credit card details can be held by the iDTV
provider making it theoretically unnecessary to
repeatedly enter personal details.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.20
Interactive digital TV
Figure 3.12 Components of an interactive digital TV system
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.21
•
•
•
•
•
Security requirements
Authentication – are parties to the transaction who
they claim to be?
Privacy and confidentiality – is transaction data
protected? The consumer may want to make an
anonymous purchase. Are all non-essential traces of a
transaction removed from the public network and all
intermediary records eliminated?
Integrity – checks that the message sent is complete
i.e. that it isn’t corrupted.
Non-repudiability – ensures sender cannot deny
sending message.
Availability – how can threats to the continuity and
performance of the system be eliminated?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.22
Encryption
Figure 3.13 Public-key or asymmetric encryption
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.23
SET standard
Figure 3.14 An example of the Secure Electronic Transaction (SET) standard
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.24
Open Buying
on the Internet
Figure 3.15 The Open Buying on the Internet model for business-to-business
e-commerce
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 3.25
Leaders and laggards
Figure 3.16 Leaders and contenders in e-commerce
Source: Adapted from the Economist Intelligence Unit/Pyramid Research e-readiness ranking (www.eiu.com)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003