Advantages of marketing intranet:
- Reduced product life cycles – as information on product development and marketing campaigns is reationalised we can get products to market faster
- reduced costs through higher productivity, and savings on hard copy
- better customer service – responsive and personalised support with staff accessing customers over the web
- distribution of information through remote offices nationally of globally
Extranet: If you have bought a book or CD online and have been issued with a username and password to access your account, then you have used an extranet.
Extranets are also used to provide online services which are restricted to business customers. The usage of the term ‘extranet’ reffering to electionic business-to-business communciations, is most typical.
Any network connected to another network for the purpose of sharing information and data. An extranet is created when two businesses connect their respective intranets for business communication and transactions.
Advantages extranet:
1. Information sharing in secure environment 2. Cost reduction
3. Order processing and distribution 4. Customer service
Chapter 4
SLEPT factors who have influence on internet marketing practices: - social factors
- legal and ethical factors - economic factors - political
- technological
Technological and legal factors are most important to managing e-commerce.
Environmental scanning: the process of continuously monitoring the environment and events and responding according.
Significant laws which control digital marketing: 1. Data protection and privacy law
6. Online advertising law 7. Social media
Behavioural ad targeting: advertisers target ads at a visitor as they move within or between sites dependent on their viewing particular sites or types of content that indicate their preferences.
Malware: malicious software or toolbar, typically downloaded via the internet, which acts as a ‘trojan horse’ by executing unwanted activities such as keylogging of user passwords or viruses which may collect email addresses.
It is useful for digital business managers to understand the different factors that affect how many people actively use the Internet, so that action can be taken to overcome some of these barriers. For example, marketing communication can be used to reduce fears about the value proposition, ease of use and security. The fallowing factors are important in governing adoption of any e-commerce service:
1. Cost of access. This is certainly a barrier for those wo do not already own a home computer. The other main costs are the cost of using an ISP to connect to the internet and the cost of using the media to connect. Free access would certainly increase adoption and usage.
2. Value proposition. Customers need to perceive a need to be online – what can the internet offer that other media cannot? Examples of value propositions include access to more supplier information and possibly lower prices.
3. Ease of use. This includes the ease of first connecting to the internet using the ISP and the ease of using the web once connected.
4. Security. While this is only, in reality, a problem for those who shop online, the perception may be that if you are connected to the internet then your personal details may not be secure. It will probably take many years for this fear to diminish.
5. Fear of the unknown. Many will simply have a general fear of the technology and the new media, which is not surprising since much of the news about the internet will concern pornography, fraud and privacy infringements.
Social exclusion some sectors of soecity have lower levels of access and opportunity
To fully understand onlne customer propensity to use online service we also need to consider the user’ s access location, access device and ‘webographics’. Webographis is a term which includes:
- usage location (from home or work)
- access device (browser and computer platform including mobile devices - connection speed
- ISP
- usage type - usage level
To help develop effective online services, we need to understand customers’ online buyer behaviour and motivation. Sending e-mails and looking for information online are the most important activities.
Online buyer behaviour:
An assessment of how consumers and business people use the internet in combination with other communications channels when selecting and buying products and services.
(complexity of products and the price have much influence on behaviour online) Motivation for use of online services
Psychographic segmentation: a breakdown of customers according to different characteristics.
The four motives for using the web, which cut actross cultures are: research (information acquisition), communication (socialisation), surfing (entertainment) and shopping.
To estimate online revenue contribution to determine the amount of investement in digital business we need to research the number of connected customers, the percentage whose offline purchase is influenced online and the number who buy online.
Four clusters of digital business adoption
1. Devleopers, which were actively developing services, but were limited at the time of reaesarch
2. communicators, which use email to communicate internally and with customers and suppliers
3. web presence 4. transactors.
Lack of relevance or need for e-ecommerce is the largest barrier. No sufficient resources to focus on planning and implement an internet strategy is likely why small businesses are not enthusiastic for adopting digital businesses.
Ethical standards: personal or business practices or behaviour generally considered acceptable by society (privacy of consumer is main issue).
Privacy: a moral right of individuals to avoid intrusion into their personal affairs. However information about these consumers is very useful to marketers. assist in communicating ads etc. more personalised.
Identitity theft: the misappropriation of the idetntity of antoher person without their knowledge or consent.
1. Contact information (name, address etc) 2. Profile information
3. Platform usage information (type computer, or browser) 4. Bheavioural information (on a single site)
5. Behavioural information (across multiple sites)
Ethical issues concerned with personal information ownership have been summarised by mason 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? Fletcher provides an alternative perspective, raising these issues of concern for both the individual and the marketer:
- Transaprancy – who is collecting what information and how do they discole the collection of data and how it will be used?
- security – how is information protected once it has been collected by a company? - libailibility – who is responsible if data are abused?
Notification: the process whereby companies register with the data protection registrar to inform about their data holdings.
Personal data: any information about an individual stored by companies concerning their customer or employees.
Data controller: each company must have a defined person responsible for data protection Data subject: the legal term to refer to the individual whose data are held.
Subject access request: a request by a data subject to view personal data from an organisation.
Spam: unsolicited email (usually bulk-mailed and untargeted) E-mail marketing is based on permission or opt-in by customers and the option to unsubscribe. Customers have to give permission to send them emails.
Cold list: data about individuals that are rented or sold by a third party
House list: data about existing customers used to market products to encourage future purchase.
Permission marketing: customers agree (opt-in) to be involved in an organisations marketing activities, usually as a result of an incentive).
Cookies: small text files stored on and end-user’s computer to enable websites to identify them.
4 types of cookies:
Persistent cookies: cookies that remain on the computer after a visitor session has ended. Used to recognise returning visitors.
session cookies: cookies used to manage a single visitor session
first-party cookies: served by the site you are currently using – typical for e-commerce sites third-party cookies: served by another site to the one you are viewing – typical for portals where an ad network will track remotely or where the web analytics software places a cookie.
Wat are cookies used for?
- personalising a site for an individual cookies are used to identify individual users and retrieve their preferences from a database (for example remembering your login code) - online ordering systems enables a site such as Tesco.com to track what it is in your basket as you order different products
