* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download 9-Marketing and Internet
Bayesian inference in marketing wikipedia , lookup
Social media marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Target audience wikipedia , lookup
Multi-level marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Ambush marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Marketing research wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Digital marketing wikipedia , lookup
Target market wikipedia , lookup
Youth marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Advertising campaign wikipedia , lookup
Green marketing wikipedia , lookup
Viral marketing wikipedia , lookup
CSc 375 SOCIAL ISSUES IN COMPUTING Department of Computer Science City College of New York Spring 2006 Copyright © 2006 by Abbe Mowshowitz TOPIC 9. MARKETING AND THE INTERNET A. Introduction 1. Simple ‘old style’ direct marketing campaign for product X - obtain list of consumers who have purchased or used something like X - prepare advertising copy - stuff envelopes, stamp and ship TOPIC 9. MARKETING AND THE INTERNET A.2. Needs of advertising & marketing a. Information about potential customers b. Methods for analyzing consumer behavior c. Means to reach or interact with potential consumers d. Advertising/marketing techniques * Look at each in turn. TOPIC 9. MARKETING AND THE INTERNET B. Information about potential customers 1. Commercial sources of consumer data (e.g., Dunn & Bradstreet’s database on 60 m. American households) 2. Registration on company Website 3. Transaction data from sales records 4. Data from tracking browsing behavior 5. Interest expressed in chat rooms TOPIC 9. MARKETING AND THE INTERNET C. Analytic methods 1. Segment consumers into groups according to demographic and other data 2. Construct profiles of likely buyers 3. Identify target groups for specific marketing campaign 4. Estimate likely outcome of campaign from pilot studies TOPIC 9. MARKETING AND THE INTERNET C. Analytic methods (cont.) Origins in studies of voting behavior - segmentation: blocs of voters based on demographic and other data - profiles: voters likely to support a candidate or issue - target groups: for specific election campaign - predict outcome of election using exit poll data TOPIC 9. MARKETING AND THE INTERNET C.5. Segmentation, profiling & targeting in practice: “Data warehouses” -details of past customer transactions - credit scores - demographics - motor vehicle records Identify subsets of population likely to respond to promotions TOPIC 9. MARKETING AND THE INTERNET C.6. Customer profiles & feature construction: data analysis problems - massive numbers of records - sparseness of data on consumers and products - heterogeneity: large variation in purchasing behavior TOPIC 9. MARKETING AND THE INTERNET D. Distribution channels for marketing 1. Broadcast - TV, radio, newspaper, magazine - mass email - Website publication 2. Direct advertising - targeted email - chat rooms (product users) - recommender systems TOPIC 9. MARKETING AND THE INTERNET E. Internet marketing 1. Facilities - ease of getting feedback from customers - interactive capabilities between company and customer - enhanced support from product users - new ways of obtaining data on customer behavior TOPIC 9. MARKETING AND THE INTERNET E.1. Facilities (cont.) - large, global audience - enhanced possibilities for design of advertising material -- static multimedia -- streaming video - aggressive/unavoidable ads (e.g., popup) TOPIC 9. MARKETING AND THE INTERNET E.2. Influences on online buying behavior (Observations of Chau, et al., 2002) a. Demographics alone not good predictor - “wired lifestyle”(Internet experience) is key - product information search is most important predictor b. Cultural differences - US: Internet used for information search - Hong Kong: used for social communication TOPIC 9. MARKETING AND THE INTERNET F. Marketing and privacy 1. Specific problems and threats - cookies - tracking of mouse clicks - mining of transaction data - monitoring chat rooms - availability of marketing data for use by intelligence and law enforcement TOPIC 9. MARKETING AND THE INTERNET F.2. Countermeasures - activate cookie alert - check/delete cookie file regularyly - note Website privacy policies - surf anonymously (anonymizer.com) - give information sparingly (bugmenot.co) - stay away from the Internet IS GOVERNMENT OR BUSINESS THE GREATER THREAT? TOPIC 9. MARKETING AND THE INTERNET F.3. Consumer privacy (observations of Earp & Bauer, 2003) a. Protection weak - FCC has statutory authority to prohibit “unfair and deceptive” trade practices - lacks resources to regulate Internet TOPIC 9. MARKETING AND THE INTERNET F.3.b. Consumers willingness to give personal information online - highest on gender & age - lowest on Social Security numbers - type of Website important (e.g., more open to health than retail sites) - well-known sites command more confidence in general - opt out provisions important; privacy policy and 3rd part seals less so TOPIC 9. MARKETING AND THE INTERNET G. Fair Information Practice in Cyberspace 1. Data quality principle - relevant to purpose - accurate, complete and current 2. Use limitation principle - specified purpose only - changes by law or permission TOPIC 9. MARKETING AND THE INTERNET G. FIP in Cyberspace (cont.) 3. Openness principle - pointers to personal data must be provided - indications of intended use - designation of data controller 4. Individual participation principle - right to discover and inspect data - right to challenge and rectify data TOPIC 9. MARKETING AND THE INTERNET H. Privacy as economic good 1. Product/service enhancement: competitive ploy 2. Saleable commodity: like loyalty in retail store card programs 3. Royalty payments for personal data - create countervailing power for the consumer - feasible with micropayment systems TOPIC 9. MARKETING AND THE INTERNET I. Trade offs - How much do you care about your privacy? - enough to forego the convenience of a credit card or give up possible bargains in the grocery store? TOPIC 9. MARKETING AND THE INTERNET J. Intensified surveillance in the Internet marketplace 1. FBI’s Carnivore system - FBI hardware placed at ISP site - monitors traffic/email addresses of ‘suspects’ 2. User logs kept by online companies TOPIC 9. MARKETING AND THE INTERNET J. Intensified surveillance (cont.) 3. Regulation of encryption: to provide ‘backdoor’ to intelligence agencies 4. Echelon - highly secret NSA data mining system - existence confirmed by European Parliament (concerned with its potential use for industrial espionage) TOPIC 9. MARKETING AND THE INTERNET J. Intensified surveillance (cont.) 5. Proposed Total Information Awareness system - existence of vast arrays of data is seemingly irresistible to officials - Congress has yet to authorize it but may in the future TOPIC 9. MARKETING AND THE INTERNET K. Marketing as form of social control 1. Reinforcing ‘desired’ behavior - targeted advertising - group pressure in chat rooms 2. Defining norms of behavior - create affinity or user groups - introduce/cultivate norms - inject propaganda in discussions - manipulate group pressure TOPIC 9. MARKETING AND THE INTERNET K.3. Operative mechanisms - desire to belong to group is powerful motivator - attitudes and beliefs can be modified by exercise of group pressure TOPIC 9. MARKETING AND THE INTERNET INDIVIDUALISM vs. SOCIAL CONTROL TOPIC 9. MARKETING AND THE INTERNET K.4. The New Individualism “… So increasingly narrow and accurate will be the target that each individual will feel himself all the more an individual through the direct mail he gets. What he receives will be so likely to be of interest to him and to be slanted to his particular needs that, even if he does not buy, he will feel that someone has gone to the trouble of knowing what he might want.” - Isaac Asimov, 1973 (NYT Supplement) TOPIC 9. MARKETING AND THE INTERNET K.5. Asimov updates Socrates “Know thyself” becomes “Know thy consumer profile” Are we indeed just what we consume?