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Chapter 3 The Internet macro-environment

Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007

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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, 3rd Edition © Pearson Education Limited 2007

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.Slide 3. 3rd Edition © Pearson Education Limited 2007 .

Slide 3. 3rd Edition © Pearson Education Limited 2007 . Internet Marketing.4 Figure 2.3 The Internet marketing environment Chaffey.

Internet Marketing. 3rd Edition © Pearson Education Limited 2007 .Slide 3.1 ‘Waves of change’ – different timescales for change in the environment Chaffey.5 Figure 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.Slide 3. 3rd Edition © Pearson Education Limited 2007 .

3rd Edition © Pearson Education Limited 2007 .7 Types of information needed • Contact info – forms data collection • Profile info – forms and cookies to link profile to visit • Behavioural info – Single site – who is clicking what – Multiple sites – Where are they clicking Chaffey. Internet Marketing.Slide 3.

2 Chaffey.Slide 3. 3rd Edition © Pearson Education Limited 2007 .8 Information flows that need to be understood for compliance with data protection legislation Figure 3. Internet Marketing.

3rd Edition © Pearson Education Limited 2007 .9 PECR legislation summary 1 Applies to consumer marketing using e-mail or SMS messages 2 Is an opt-in regime (consent required) 3 Requires an opt-out option for all communications 4 Does not apply to existing customers when marketing similar products 5 Requires that contact details must be provided 6 Requires clear ‘from identification of the sender’ 7 Applies to direct marketing communications 8 Restricts the use of cookies Chaffey. Internet Marketing.Slide 3.

Slide 3. Internet Marketing. 3rd Edition © Pearson Education Limited 2007 .10 E-commerce legislation areas 1 Marketing business: domain names. meta tag 2 Electronic contracts 3 Making payments 4 Authenticating contracts 5 E-mail risks 6 Protecting intellectual properties 7 Advertising 8 Data protection Chaffey.

3rd Edition © Pearson Education Limited 2007 .Slide 3. Internet Marketing.11 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.

12 Managers’ choices 1. ‘Wait and see’ 2. Internet Marketing. 3rd Edition © Pearson Education Limited 2007 . Early adopter 3. Intermediate What are the benefits of each for mobile phone companies introducing these technologies? Chaffey.Slide 3.

Slide 3. Internet Marketing. 3rd Edition © Pearson Education Limited 2007 .13 Diffusion of innovation curve Figure 3.4 Diffusion–adoption curve Chaffey.

14 Figure 3. 3rd Edition © Pearson Education Limited 2007 Source: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005 . Internet Marketing.5 Example of a Gartner hype cycle Chaffey.Slide 3.

15 Figure 3. 3rd Edition © Pearson Education Limited 2007 .6 Alternative responses to changes in technology Chaffey.Slide 3. Internet Marketing.

although these often need to be set up via PC access. an offer in a particular shopping centre.16 Mobile/wireless proposition Element of proposition Not fixed location Location-based services Instant access/ convenience Privacy Evaluation The user is freed from the need to access via the desktop making access possible when commuting.Slide 3. such as an alert service for looking for a new job. making them more suitable for social use or for certain activities. Future mobiles will have global positioning services integrated. As with PC access personal information and services can be requested by the user. Mobiles are more private than desktop access. Mobiles can be used to give geographically-based services. but thefts of mobile make this a source of concern. Chaffey. e. 3rd Edition © Pearson Education Limited 2007 Personalisation Security . In the future mobile may become a form of wallet. avoiding the need for lengthy connection. The latest GPRS and 3G services are always on. Internet Marketing.g. for example.

17 Figure 3.7 Number of text messages sent monthly in the UK. 3rd Edition © Pearson Education Limited 2007 Source: Mobile data association . Internet Marketing. 2001 to 2005 Chaffey.Slide 3.

Internet Marketing.8 Mobile access technology standards Chaffey.Slide 3. 3rd Edition © Pearson Education Limited 2007 .18 Mobile technology standards Figure 3.

Slide 3. but return path connections using phone lines for purchase are slower.19 Interactive digital TV proposition Element of proposition Instant access/ convenience Evaluation Interactive services are available quite rapidly. Chaffey. Security Credit card details can be held by the iDTV provider making it theoretically unnecessary to repeatedly enter personal details. Internet Marketing. 3rd Edition © Pearson Education Limited 2007 . Personalisation This is less practical for PC and mobile since there are usually several viewers.

9 Relative use of the Internet and interactive TV Chaffey.Slide 3. Internet Marketing. 3rd Edition © Pearson Education Limited 2007 .20 Figure 3.

10 Components of an interactive digital TV system Chaffey. Internet Marketing.Slide 3. 3rd Edition © Pearson Education Limited 2007 .21 Interactive digital TV (Continued) Figure 3.

that it is not corrupted. Internet Marketing. Availability – how can threats to the continuity and performance of the system be eliminated? Chaffey. 3rd Edition © Pearson Education Limited 2007 .e.Slide 3.22 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. Non-repudiability – ensures sender cannot deny sending message. 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.

Internet Marketing.11 Public-key or asymmetric encryption Chaffey. 3rd Edition © Pearson Education Limited 2007 .Slide 3.23 Encryption Figure 3.

24 Leaders and laggards Figure 3.eiu.Slide 3. 3rd Edition © Pearson Education Limited 2007 Source: Adapted from the Economist Intelligence Unit/Pyramid Research e-readiness ranking (www. Internet Marketing.com) .12 Leaders and contenders in e-commerce Chaffey.