Internet Marketing Technologies

Question 1

Unique features of e-commerce technology on marketing

Answer 1

Ubiquity
Global reach
Universal standards
Richness
Interactivity
Information density
Personalization/customization
Social technology

Question 2

Ubiquity

Answer 2

Marketing communications have been extended to the home, work, and mobile platforms; geographic limits on marketing have been reduced. The marketplace has been replaced by “marketspace” and is removed from a temporal and geographic location

Question 3

Global reach

Answer 3

Worldwide customer service and marketing communications have been enabled

Question 4

Universal standards

Answer 4

The cost of delivering marketing messages and receiving feedback from users is reduced because of shared, global standards of the Internet

Question 5

Richness

Answer 5

Video, audio, and text marketing messages can be integrated into a single marketing message and consuming experience

Question 6

Interactivity

Answer 6

Consumers can be engaged in a dialogue, dynamically adjusting the experience to the consumer and making the consumer a co-producer of the goods and services being sold

Question 7

Information density

Answer 7

Fine-grained, highly detailed information on consumers’ real-time behavior can be gathered and analyzed for the first time. “Data mining” Internet technology permits the analysis of
terabytes of consumer data every day for marketing purposes.

Question 8

Personalization/customization

Answer 8

This feature potentially enables product and service differentiation down to the level of the individual, thus strengthening the ability of marketers to create brands

Question 9

Social technology

Answer 9

User-generated content and social networks, along with blogs, have created large, new audiences online, where the content is provided by users. These audiences have greatly expanded the opportunity for marketers to reach new potential customers in a nontraditional media format

Question 10

Transaction log

Answer 10

Records users activity on a website

Question 11

Registration form

Answer 11

Gathers personal data on users (addresses, emails, etc)

Question 12

Shopping cart database

Answer 12

Captures all item, selection, purchase, and payment data

Question 13

Cookie

Answer 13

Small text file that websites place on visitors’ computers that allows the website to store data about the visitor on the computer and later retrieve it

Question 14

First-party cookie

Answer 14

Placed on the user’s company by the same domain name as the page the user is visiting

Question 15

Third-party cookie

Answer 15

Operates similarly to first-party cookies but enables advertising platforms to track user behavior across websites and devices

Question 16

Web beacon

Answer 16

Tracking method that uses a tiny (1-pixel) graphic file embedded in e-mail messages and on websites

Question 17

Profiling

Answer 17

Uses a variety of tools to create a digital image for each consumer

Question 18

Database

Answer 18

A software application that stores data in the form of fields, records, and files

Question 19

Relational database

Answer 19

Represents data as a two-dimensional table organized in columns and rows; data within different tables can be flexibly related as long as the tables share a common data element

Question 20

Database management system (DBMS)

Answer 20

A software application used by organizations to create, maintain, and access databases

Question 21

Structured query language (SQL)

Answer 21

Industry-standard database query language used in relational databases

Question 22

Nonrelational (NoSQL) database

Answer 22

Uses a more flexible data model; designed for managing large sets of structured and unstructured data that are difficult to analyze with traditional SQL-based tools

Question 23

Data warehouse

Answer 23

A database that collects a firm’s transactional and customer data in a single location for offline analysis

Question 24

Data mart

Answer 24

A subset of a data warehouse in which a summarized or highly focused portion of the organization’s data is placed in a separate database for a specific population of users

Question 25

Data lake

Answer 25

A repository of raw, unstructured data or structured data

Question 26

Data mining

Answer 26

A set of analytical techniques that look for patterns in the data of a database or a data warehouse or that seek to model the behavior of customers

Question 27

Customer profile

Answer 27

A description of the typical behavior of a customer or a group of customers at a website

Question 28

Big data

Answer 28

Huge data sets, often from different sources, in the petabyte, exabyte, and even terabyte range

Question 29

Hadoop

Answer 29

A software framework for working with various big data sets

Question 30

Marketing automation systems

Answer 30

Software tools that marketers use to track all the steps in the lead generation part of the marketing process

Question 31

Customer relationship management systems (CRM)

Answer 31

A repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm who has a need to “know the customer” REVIEW DIAGRAM IN NOTES SESSION 18

Question 32

Customer touch points

Answer 32

The ways in which customers interact with the firm

Question 33

Customer retention strategies

Answer 33

One-to-one marketing (personalization) Behavioural targeting (internet based advertising) Retargeting (cookie ads)

Question 34

Pricing strategies

Answer 34

Piggyback Price discrimination Freemium

Question 35

Piggyback strategy (pricing)

Answer 35

Free products in the short term to attract customers, then charge customers who are piggybacked by the early birds to consume the product

Question 36

Price discrimination (pricing)

Answer 36

Selling products to different people & groups at different prices based on their WTP

Question 37

Freemium (pricing)

Answer 37

Cross-subsidy online marketing strategy where users are offered a basic service for free, but must pay for premium or add-on services (Ex: Spotify)

Question 38

Versioning (pricing)

Answer 38

Create multiple versions of the goods and selling essentially the same product to different market segments at different prices. Price depends on value to customer - customers will segment themselves into groups that are willing to pay different amounts for various versions

Question 39

Bundling (pricing)

Answer 39

Offer two or more goods for a price that is less than the goods would cost when purchases individually.

Question 40

Dynamic pricing (pricing)

Answer 40

Price of the product varies depending on the demand characteristics of the consumer and the supply situation of the seller eg: auctions

Question 41

Yield management

Answer 41

Managers set prices in different markets, appealing to different segments, in order to sell excess capacity eg: airlines change ticket prices hourly to ensure some of their empty seats are sold at reasonable prices

Question 42

Surge pricing

Answer 42

When there are peaks in demand - increase prices. Ex: Uber

Question 43

Flash marketing

Answer 43

Offer goods/services at low prices for a limited time to loyal customers. Proven to be efficient for travel services, luxury clothing goods Ex: JetBlue offered $14 flights between NY and LA

Question 44

Longtail marketing

Answer 44

Internet allows for obscure products with little demand to be sold. Unlike brick and mortar, e-commerce allows merchants to pay no inventory costs for these deeply hidden items. No marketing costs are needed for these items, instead, consumers can find them through specific search