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

Slide 3.1

Chapter 3The Internet macro-environment


Slide 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 macro-economic factors, such as economics, taxation and legal constraints.


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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?


Slide 3.4

Figure 2.3 The Internet marketing environment


Slide 3.5

Figure 3.1 ‘Waves of change’ – different timescales for change in the environment


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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?


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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


Slide 3.8

Figure 3.2 Information flows that need to be understood for compliance with data protection legislation


Slide 3.9

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 communications4 Does not apply to existing customers when marketing similar products5 Requires that contact details must be provided6 Requires clear ‘from identification of the sender’7 Applies to direct marketing communications8 Restricts the use of cookies


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E-commerce legislation areas

1 Marketing business:domain names, meta tag

2 Electronic contracts3 Making payments4 Authenticating contracts5 E-mail risks6 Protecting intellectual properties7 Advertising 8 Data protection


Slide 3.11

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?


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Managers’ choices

1. ‘Wait and see’2. Early adopter3. Intermediate

What are the benefits of each for mobile phone companies introducing these technologies?


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Diffusion of innovation curve

Figure 3.4 Diffusion–adoption curve


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Figure 3.5 Example of a Gartner hype cycleSource: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005


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Figure 3.6 Alternative responses to changes in technology


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Mobile/wireless propositionElement 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.


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Figure 3.7 Number of text messages sent monthly in the UK, 2001 to 2005Source: Mobile data association


Slide 3.18

Mobile technology standards

Figure 3.8 Mobile access technology standards


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Interactive digital TV proposition

Element of proposition

Evaluation

Instant access/ convenience

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.


Slide 3.20

Figure 3.9 Relative use of the Internet and interactive TV


Slide 3.21

Interactive digital TV (Continued)

Figure 3.10 Components of an interactive digital TV system


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. 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 is not corrupted.

• Non-repudiability – ensures sender cannot deny sending message.

• Availability – how can threats to the continuity and performance of the system be eliminated?


Slide 3.23

Encryption

Figure 3.11 Public-key or asymmetric encryption


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Leaders and laggards

Figure 3.12 Leaders and contenders in e-commerceSource: Adapted from the Economist Intelligence Unit/Pyramid Research e-readiness ranking (www.eiu.com)

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