Transcript E-Marketing, 3rd edition Judy Strauss, Raymond Frost, and Adel I. El

E-Marketing, 3rd edition
Judy Strauss, Adel I. El-Ansary, and Raymond Frost
Chapter 4: Leveraging Technology
© Prentice Hall 2003
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
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.com
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
Product Technologies
E-marketers can use a wide variety of
technologies to support their product
strategies.
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
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.
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
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.
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
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.
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.
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
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.
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.
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.
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.
Plug-Ins

The best known plug-ins:



RealPlayer: Plays streaming audio and video over lowbandwidth 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.
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.
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
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.
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
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.
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.
2.
3.
Learn XML and become professional programmers,
Use an XML authoring tool such as Microsoft Word to
automatically generate XML,
Ignore the standard in the same way that many developers
ignored Java.
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
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 (1/10th 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.
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
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.
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.
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
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.
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.
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.
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
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.
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
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.
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.
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.
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
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.
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.
Bandwidth:

Just how fast does transmission need to be to support
various media types?
Media Type
Text
Graphics (pictures)
Sound
Video
Speed
25 Kbps
50 Kbps
100 Kbps
1 Mbps
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.
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
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).
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).
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.
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.
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.

Other Broadband Options: Wireless

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


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.
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
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.
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.
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.
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
Transaction Security

The number-one concern of all users online.
Issue
Extremely Concerned or
Very Concerned
Security of credit card transactions
86%
Protecting privacy
75%
Censorship
72%
Hate group Web sites
47%
Depiction of violence
38%
Pornography
30%
Exhibit 4 - 1 Top Issues for Online Users
Is this a legitimate concern? Transactions are probably much more secure on
the Internet than in the brick-and-mortar world.
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.
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.
Encryption Algorithms

E x h i b i t 4 - 1 A m a z o n G u a r a n t e e s S a f e t y o f O n l i n e
T r a n s a c t i o n s
Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United
States and/or other countries. © 2000 by Amazon.com. All rights reserved.
Encryption Algorithms

After the user has chosen to enter secure mode, Amazon continues to
reassure the user even on the secure mode screen!
The user is in secure mode. Would you have noticed
the little lock?

E x h i b i t 4 - 1 U s e r E n t e r s S e c u r e M o d e
Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United
States and/or other countries. © 2000 by Amazon.com. All rights reserved
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.
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.
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
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.
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
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.
Proxy Server
1
User requests
Web Page
Y ahoo
Next user
requesting same
page is given copy
from proxy server.
2
Proxy server
intercepts and forwards
request on behalf of user.
Copy of returned page
saved on proxy server
3
Web page makes
4 a noncachable request
to ad server
Exhibit 4 - 1 Circumventing the Proxy Server
MatchLogic
Undercounting?

76% = a tremendous loss of revenue for companies selling ads.

Most proxy servers are in corporations:



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.


the demographics of users advertisers try to reach.
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
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.
How Search Engines Work
Search Engine
User enters
Search En gine
3 search term
user
Web site
Spider
Spider
Spiders crawl
Web sites up to
1 a month in advance
gathering keywords
W eb site
Search engine
4 scans database to
find the search term
Keywords are
indexed noting
2 their location on
the page and
frequency of
appearance
Database

Exhibit 4 - 1 How Search Engines Work
Spider
Web site
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.
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.
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
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.
Date
1/10/2003
1/10/2003
1/10/2003
1/10/2003
Time
10:30am
10:31am
10:32am
10:40am
Visitor address
FrostR.ohiou.edu
FrostR.ohiou.edu
FrostR.ohiou.edu
FrostR.ohiou.edu
Page viewed
Baking recipes
Cookies
Chocolate chip
Sign off
• The analysis also forms the basis for site redesign as
marketers learn which pages are most popular.
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.
Cookies
1
User visits W eb site
3
Yahoo, userid(154)
Excite, userid(273)
AltaVista, userid(924)

Exhibit 4 - 1 How Cookies Are Stored

Site records userid
on her computer
in a cookie to identify
user in future visits
1/25/01, home page
Site assigns
2 user a userid AND
records the page visited
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
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.
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!
DoubleClick
1 User visits Travelocity
Travelocity sends page AND
silently instructs user's computer to
3 a) Request DoubleClick ad
b) Tell DoubleClick which section
of Travelocity was visited
c) Write Travelocity cookie on user's computer
DoubleClick records
6 userid on user's computer
www.travelocity .c om 3 875930236
.doublec lick .net
485720434 6
7
in a cookie to identify
user in future visits
Us erid(3875930 236), Raym ond Frost
2 Travelocity assigns
DoubleClick
places ad on
Web page
for user
user a userid AND
records user's name
so as to greet user by
name on the next visit
Userid(485720434 6), Travelocity H om e Page 1/25/ 01
Computer requests
DoubleClick assigns
4 ad from DoubleClick
5 user a userid AND
AND identifies site
that user visited
records the site visited
DoubleClick

Exhibit 4 - 1 Tracking Users Site to Site
DoubleClick
# Netscape HTTP Cookie File
# http://www.netscape.com/newsref/std/cookie_spec.html
# This is a generated file! Do not edit.
www.travelocity.com FALSE
/
FALSE
3875930236
.doubleclick.net
TRUE
/
FALSE
4857204346
Exhibit 4 - 1 Netscape Cookie File (cookie.txt)
grtng 1
id
A
• 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.
DoubleClick

Users who do not wish to be tracked have three options:
1.
2.
3.
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 user’s computer never contacts the ad
server, the ad server cannot write a cookie (tracking is not
possible).
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.
Overview
The Marriage of Marketing
Price Technologies
&Technology
Distribution Technologies
Product Technologies
Bandwidth and Market
Building a Web Site
Opportunities
HTML Forms
Content Filtering
Java
Transaction Security
Dynamic HTML (DHTML)
IMC Technologies
XHTML
Proxy Servers
XML
How Search Engines Work
Multimedia
Log Files and Cookies
Database Marketing
Rotating and Targeted Ad
Banners
Computer Viruses
Denial of Service Attacks Relationship Marketing Technologies
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.
Relationship Marketing Technologies
1.
Exhibit 4 - 1 Amazon Welcome Screen
Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United States
and/or other countries. © 2000 by Amazon.com. All rights reserved.
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:
Userid
Last
First
Street
City
Zip
12345
Frost
Raymond
Athens
45701
76543
Strauss
Judy
8 Web
Way
10 Net
Lane
Reno
89557
Exhibit 4 - 1 User Database File
Credit
Card #
4444 5555
6666 7777
3333 2222
9999 8888
Relationship Marketing Technologies

Amazon then stores the user’s Userid in a cookie file on the user’s
computer.
.amazon.com
Userid = 12345
my.yahoo.com Userid = 88875
.hotwired.com
Userid = 55235
Exhibit 4 - 1 Simplified Cookie File
• 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.
“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.

E x h i b i t
4
-
1
A m a z o n ’ s
C u s t o m i z e d
R e c o m m e n d a t i o n s
Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United
States and/or other countries. © 2000 by Amazon.com. All rights reserved .
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.

Userid
12345
12345
76543
76543
22233
22233
Exhibit 4 - 1 Amazon Orders File
Title
The Language of Threads
Night of Many Dreams
Cloud Mountain
The Language of Threads
Cloud Mountain
Night of Many Dreams
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.
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.






Companies specializing in CRM software
solutions:








Siebel Systems (www.siebel.com)
E.piphany (www.epiphany.com)
Oracle (www.oracle.com)
PeopleSoft (www.peoplesoft.com)
SAP (www.sap.com)
SAS (www.sas.com)
Net Perceptions (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.
Key Terms
•3G cell phone
•Cookie
•ActiveX
•CSS
•ASP
•DoS attack
•Bandwidth
•DSL
•Cable modem
•Dynamic HTML
•Cache
•Encryption
•CGI
•FTP
•Closed loop marketing
•HTML
•Content filtering
•java
Key Terms
•JavaScript
•RDBMS
•JDK
•RealAudio
•Log file
•RealVideo
•MP3
•Relevance ranking
•Multimedia
•Shopping agent
•P3P
•Spider
•Parallel pull
•SQL
•Plug-In
•Wi-Fi
•Private key
•Wireless
•Proxy server
•XHTML
•Public key
•XML
Review Questions
1.
2.
3.
4.
5.
6.
7.
8.
.What are the advantages of using java, dynamic HTML,
JavaScript, plug-ins, and XHTML?
.How and why do e-marketers use database marketing
technologies?
.What are the four types of computer viruses?
.How do consumers and e-marketers use shopping
agents?
.What is bandwidth and how does it affect the delivery of
multimedia content over the Web?
.What is content filtering and why is it important to some
Internet users?
.How are e-marketers addressing concerns about
transaction security?
What are some advantages and limitations of using proxy
servers and cookies as technologies for online advertising?
Discussion Questions
1.
2.
3.
4.
5.
6.
.Both CSS and XML separate a document's content from
its presentation. Why is this an important goal?
.Which solution(s) would you recommend for content
filtering to a local elementary school? Why?
.Why would a company pay a hacker to break into its site?
What ethical issues are involved in this type of decision?
.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.
.Why is customization more difficult to implement than
personalization?
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?