Overview of The E-Marketing Planning Process

Overview of the E-
Marketing Planning
3-54
Process
 The e-marketing plan is a blueprint for e-
marketing strategy formulation and
implementation.
 The plan serves as a road map to guide the
firm, allocate resources, and make
decisions.
Ex 3.1
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Two Common Types of Plans
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 Napkin plan
 Entrepreneurs may jot down ideas on a napkin.
 Large companies might create a just-do-it, activity-
based, bottom-up plan.
 The Venture Capital E-Marketing Plan is a

more comprehensive plan for
entrepreneurs seeking start- up capital.
Sources of Funding
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 Bank loans
 Private funds
 Angel investors
 Venture capitalists (VCs)
Angel investors
• Angel investors invest in
small startups or entrepreneurs. Often, angel
investors are among an entrepreneur's family
and friends. The capital angel investors
provide may be a one-time investment to help
the business propel or an ongoing injection of
money to support and carry the company
through its difficult early stages.
Venture capitalists (VCs)
• Venture capital (VC) is a type of private equity,

a form of financing that is provided by firms or
funds to small, early-stage, emerging firms
that are deemed to have high growth
potential, or which have demonstrated high
growth (in terms of number of employees,
annual revenue, or both).
Seven-Step E-Marketing Plan
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1. Situation analysis
2. E-Marketing strategic
planning
3. Objectives
4. E-Marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan
Step 1: Situation Analysis
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 Review the firm’s environmental and SWOT

analyses.
 Review the existing marketing plan and any
other information that can be obtained
about the company and its brands.
 Review the firm’s e-business objectives,
strategies, and performance metrics.
SWOT Analysis Leading
to E-Marketing
3-11 Objective
Opportunities Threats
1.Hispanic markets growing and 1.Pending security law means costly

untapped in our industry. software upgrades.
2.Save postage costs through e-mail 2.Competitor X is aggressively using
marketing. e-commerce.
Strengths Weaknesses
1.Strong customer service department. 1.Low-tech corporate culture.

2.Excellent Web site and database 2.Seasonal business: Peak is summer
system. months.
E-Marketing Objective: $500,000 in revenues from e-commerce in one year.

Step 2: E-Marketing Strategic Planning
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 Market and product strategies, called Tier 1

tasks or strategies, are outcomes of
strategic planning.
 Segmentation
 Targeting
 Differentiation
 Positioning
 Marketers conduct analysis to determine
strategies.
 Market opportunity analysis
 Demand analysis
 Segment analysis
 Supply analysis
Step 3: Objectives
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 An objective in an e-marketing plan

may include the following aspects:
 Task (what is to be accomplished)
 Measurable quantity (how much)
 Time frame (by when)
Step 3: Objectives, cont.
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 Most e-marketing plans aim to accomplish

objectives such as the following:
 Increase market share
 Increase the number of comments on a blog
 Increase sales revenue
 Reduce costs
 Achieve branding goals
 Increase database size
 Achieve customer relationship management
goals
 Improve supply chain management
Step 4: E-Marketing Strategies
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 Tier 2 strategies include strategies related to

the 4 P’s and relationship management to
achieve plan objectives.
 Product strategies
 Pricing strategies
 Dynamic pricing
 Online bidding
Step 4: E-Marketing Strategies, cont.
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 Distribution strategies
 Direct marketing
 Agent e-business models
 Marketing communication strategies
 Relationship management strategies
 Some firms use CRM (customer relationship
management) or PRM (partner relationship
management) software to integrate customer
communication and purchase behavior into a
database.
Steps 2, 3, and 4 of
the E-Marketing Plan
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Step 5: Implementation Plan
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 Tactics are used to achieve plan objectives

 Marketing mix (4 Ps)tactics
 Relationship management tactics
 Marketing organization tactics

 Staff
 Department structure
 Information-gathering tactics
 Web site log analysis
 Business intelligence and secondary research
Step 6: Budget
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 The plan must identify the expected

returns from marketing investments,
including:
 Cost/benefit analysis
 ROI calculation
 Internal rate of return (IRR) calculation
 Return on marketing investment (ROMI)
Revenues and Costs
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 Revenue forecast
 Intangible benefits, such as brand

equity
 Cost savings
 E-Marketing costs
 Technology
 Site design
 Salaries
 Other site development expenses
 Marketing communication
 Miscellaneous
Step 7: Evaluation Plan
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 Marketing plan success depends on

continuous evaluation.
 E-marketers must have tracking systems in
place to measure results.
 Various metrics relate to specific plan goals.
 Today’s firms are ROI driven.

 E-marketers must show how intangible goals
will lead to higher revenue.
 Accurate and timely metrics can help justify
expenditures.
The E-Marketing Environment
Overview of Global E-Marketing Issues
• One of the big changes online: users from other countries, speaking languages other
than English, will increasingly dominate the Internet.
• Worldwide Internet use is projected to increase at faster rate

• Local language internet users to jump to 400 million by 2020: Google
• 2 important effects of the increasing number of non-US Internet users on the Internet:
– Diversification of Web’s content & language,
– Acceleration of the convergence of styles, tastes, and products to create a more
homogenous, global marketplace.
• Internet use varies greatly from country to country.
• Country size and population have little bearing on Internet use:

– Russia = only 7.5 million Internet users (5% of the population).
– Singapore = 1.3 million Internet users (30% of all Singaporeans).
• As Internet access and use accelerates around the world, so, too, will e-
marketing opportunities.
• Where will the greatest challenges lie?

 In countries with emerging economies—countries such as Russia, India,
Nepal, the Czech Republic, and China, which present different & difficult
decisions for e-marketers.
Emerging Economies
Countries vary in their level of economic development:
• Developed countries = all of Western Europe, North America, Japan, Australia and
New Zealand.
– Highly industrialized countries + use technology to increase their production
efficiency, result = a high gross domestic product (GDP) per capita,
– high GDP = citizens have enough discretionary income to buy items that will make
their lives easier, richer, and fuller,
– Ideally suited for e-marketing activities.
• Emerging economies = those with low levels of gross domestic product (GDP) per
capita that are experiencing rapid growth:
– In North America, Mexico + Central and South American countries,
– In Europe, former Baltic States + Eastern Europe,
– Russia, Belarus, and the Ukraine,
– Africa, Central Asia, South Asia and Southeast Asia,
– China.
Importance of Information Technology
• To improve its level of economic development, a country can:

 Increase efficiencies in the production, distribution, and sale of goods and
services.
• For emerging economies, technology plays an especially important role.

 The application of information technology can open up new, exciting, global
markets.
• The Internet allows businesses in emerging economies to instantaneously tap

a global marketplace.
• Successful marketing on the Internet can leapfrog a company from nowhere

to somewhere overnight.
• E-marketers from countries with emerging economies face a double

challenge:
– All the marketing issues and decisions,
– Unique challenges related to the conditions of operating within a still
developing nation.
• Businesses operating in emerging economies must deal with:

– Fewer computer users,
– Limited credit card use,
– Lack of secure online payment methods,
– Unexpected power failures.
• Internet marketing differences between developed and developing countries

for the greatest obstacles to e-commerce:
U.S. and European list: Emerging economies list:
• Privacy concerns (31%), • Slow connection speeds (29%),

• Censorship (24%), • Costs of domestic phone calls (29%),
• Navigation difficulties (17%), • Internet Service Provider costs
• Taxes (9%). (19%),
• Lack of content in one’s own
language (10%),
•Lack of local content (10%).
Overview

Emerging Economies
Country and Market Opportunity Analysis
Market Similarity
Credit Card Conundrum
E-Commerce Payment in the Czech Republic
Technological Readiness Influences Marketing
Computers and telephones
Internet Connection Costs
Slow Connection Speeds And Web Site Design
Electricity Problems
Wireless Internet Access
The Digital Divide
• An e-marketing plan guides the marketer through the process of identifying

and analyzing potential markets.
• Global e-marketers must balance 2 different analytical approaches:
– Market similarity = If they are operating from a country with an emerging

economy and want to target markets in developed countries,
– Market differences
= If they are based in an emerging economy and want to market to their
home target market,
= If they are from a developed economy and want to target groups in an
emerging economy.
Emerging economy Emerging economy
Understand market differences
Understand Understand
market similarities market differences
Developed economy
Market Approaches Between Emerging and Developed Economies

Market Similarity
• Concept of market similarity = marketers choose foreign markets that have

characteristics similar to their home market for initial market entry.
 A United States-based company would target Canada, the United Kingdom, and
Australia before France, Japan, or Germany.
• Amazon.com has used this strategy as it expanded globally. It has international Web
sites in the UK, France, Germany, Austria, and Japan:
– Some similarities based on language,
– High literacy rates, high Internet usage rates, and clearly defined market segments
willing to shop for books (and other products) on-line,
– Credit cards are widely used for purchases,
– Secure, trusted online payment mechanisms,
– Efficient package delivery services.
• Market similarity not only reduces (without eliminating) the risk of entry into foreign
markets but also helps explain why it targeted these countries in the first place.
Market Similarity
• E-businesses in countries with emerging markets make parallel target market

decisions.
• www.munchahouse.com:
– Offers a wide range of products that Nepalis living overseas can send to
individuals back home.
– Customers pay on the sites by providing their credit card numbers using a secure
server.
 These are all crucial marketing decisions.
• If the Muncha House marketer had targeted a domestic home market, his
marketing situation would be completely different.
• One of the biggest differences between developed countries and emerging

economies = the limited use and acceptance of credit cards in
underdeveloped countries.
• Convenience & ease of transactions = 2 of the Internet’s greatest benefits.
• In developed countries: credit cards + secure online payment systems make

Web-based transactions easy.
• But in countries with emerging economies, things aren’t so easy.
• In Bolivia:
= Fewer than 200,000 credit cards are in circulation within a country with a
population of 8.3 million people.
 Limited credit card use can severely restrict a target market’s purchasing
ability.
Rita’s Pizza site in Vilnius, Lithuania:

– Web site for ordering pizza, sandwiches, snacks, and beverages online.
– The final screen for ordering indicates that Rita’s is strictly a cash business:
• Customers pay at the time of delivery (C.O.D.), or
• When they pick up the food at Rita’s.
 Limited use/availability of credit cards limits what an e-marketer can do.
• Marketers must also analyze relevant buyer behavior within a market:

– In Lithuania, local consumers are very reluctant to purchase products online.
– 37% said it was easier and more fun to buy goods and services in a store than
online.
– 21% said it was more secure to buy goods and services in a store.
• BUT, the business understood one important thing: its target market:
– 24% of all current Lithuanian Internet users are under 20 years old,
– 11% are between the ages of 20-25.
E-Commerce Payment
in the Czech Republic
• The Czech Republic face the same challenges of limited credit card use and consumer
skepticism of online purchasing.
• The Czech Republic is a relatively small country in central Europe

= 22% of the population are Internet users.
 Online purchasing has increased dramatically there in recent years.
• In 2000, most online purchases = airline tickets (28%), appliances (17%), books (12%),
consumer electronics (10%), videos (8%), music (6%), and computer hardware (6%).
= A mirror shopping interests in developed countries.
• The Czech Republic has many online retailing Web sites:www.obchodnidum.cz

(appliances, consumer electronics and mobile phones) and www.vltava.cz (music,
books, videos and software).
• The country also has specialized Web sites: airline ticket agents , wine, etc.
Average Monthly Sales
Year (in millions of Kronus)
Q1-99 5.9
Q2-99 9.9
Q3-99 18.2
Q4-99 25.6
Q1-00 28.0
Q2-00 30.0
Total Online Sales in the Czech Republic

Source: Adapted from American Chamber of Commerce… (2000)
E-Commerce Payment
• In the Czech Republic: People fear online shopping.

– 75% said that it was more secure buying goods/services in a store,
– 65% said it was easier & more fun to buy goods and/or services in a store,
– 61% said “you don’t know what you get when you shop online”,
– 42% said they didn’t trust online brands.
• Online marketers adapt their Web sites to the target market’s preferences:
• www.musicabona.cz posts the following in its About Security section:
– “Your personal data is transmitted via the secure SSL encoded transfer system.
– If you decide to become one of our registered customers, you needn’t fill in your
personal data and send it over the Internet at all upon subsequent purchases.
– If you do not think it is safe to send your personal data through the Internet, you
can send your order in writing, by fax or mail.
– If you don’t want to disclose to us the number of your payment card, you can pay
by cheque.”
E-Commerce Payment
• How do Czech consumers pay for their online purchases?

– 31% make bank transfers,
– 28% pay cash on delivery,
– 21% pay with a credit card,
– 9% make bank transfer through either a PC or mobile phone,
– 8% pay with postal orders.
• Czech citizens are reluctant to use online payment methods + only 35% of all Czech
adults have credit cards.
• Innovative solution = eBanka:

– The oldest purely Internet Bank in Central and Eastern Europe.
– The bank issues credit cards + handles secure and efficient online money transfer
accounts for purchases at many Czech Web sites.
– A customer opens an eBanka account, deposits money, uses it to make online
purchases.
– This is the Czech version of digital cash.
Overview

Emerging Economies
Market Similarity
The Digital Divide
• In emerging economies, e-marketers must also deal with daunting issues of

basic technology:
– Limited access to and use of computers and telephones,

– High Internet connection costs,
– Slow Internet connection speeds,
– Unpredictable power supplies.
• Customers must have access to a computer and an ISP to use the Internet:
– In developed countries, this is not a problem.

 Individuals can use computers at home, at work, at school, or at libraries and
other community institutions.
– In emerging economies, computer access is a big problem.
• Computer access is unevenly distributed throughout the world:

• Ukraine has less than 2 computers for every 100 individuals,
• Colombia has 3 1/2 computers per 100 citizens,
• The United Sates has about 58 computers for every 100 citizens.
• E-marketers should never underestimate the profound influence of limited computer

access on Internet marketing.
 It directly limits market size.
Estimated Total Number of Estimated Total Number of
Personal Computers in Country Personal Computers per 100
Country (in thousands) Inhabitants
Colombia 1,500 3.5
Ecuador 275 2.2
Guatemala 130 1.1
India 4,600 0.5
Mexico 5,000 5.1
Morocco 350 1.2
Nigeria 750 0.7
Pakistan 590 0.4
Philippines 1,480 1.9
South Africa 2,700 6.2
Thailand 1,471 2.4
Ukraine 890 1.8
United States 161,000 58.5
Computer ownership in Selected Countries Source: ITU, (2001a)

• Individuals & businesses need to be connected to the Internet though phones.
• In developed countries, telephones are a common and prevalent commodity:

– Most families have more than one telephone at home,
– Many have multiple telephone lines,
– Some even have several telephone numbers,
– Many may have both fixed and mobile phones.
• In countries with emerging economies, telephones are scarce and expensive.

– 1999, Indonesia = 2.9 phones/100 people, India = 2.7 phones/100 people,
– The Philippines = 4.0 phones/100 people, Mexico = 11.2 ph./100 people,
– In 2000, in Thailand, 91.5% of all Thais own a television, but only 27.7% own a
phone.
• In emerging economies, telephone access has a very different pattern than in

developed countries.
• Online firms can’t market to someone who has no computer or no means of
connecting to the Internet.
• Countries with emerging economies often have higher Internet-related business costs:
– Dial-up connection is the most common way of connecting to the Internet.
– Dial-up connections use telephone lines.
– Dial-up connection costs vary quite considerably in emerging economies.
• The total price for Internet service is quite large in many countries.
 Labor costs may be quite low, but technology and other business costs can be
quite high.
• Why?
– Government-owned telephone monopolies:
– The lack of competition among ISPs:
• When both of these constraints are loosened, Internet growth accelerates, creating a
rapidly expanding domestic market for e-marketers.
UAE
Egypt
ISP Charges
Kuwait
Oman Telephone Charges
Average
Saudi Arabia
Tunisia
Lebonan
Qatar
Jordan
Bahrain
Morocco
0 10 20 30 40 50 60 70 80
U.S. Dollars
Total Internet Connection Costs in Selected Arab Countries

Source: Adapted from Gray (2001)
Slow Connection Speeds
And Web Site Design
• Connection speed and Web site design = a issue in emerging economies:

– A telephone line limits the speed at which data can be sent and received.
– Current maximum speed for a modem connection is 56 kbps.
– Emerging economies are seeking faster and better connections through
broadband and ISDN.
• Download speeds has significant implications for Web site design, especially the
extent to which graphics are used.
• The Web is a visual medium, and users expect to see pictures that move, swirl, and
morph into usual shapes + Web sites have sound.
 These elements slows the download rate.
• In countries with emerging economies, where connections speeds are slow and a user
may be paying by the minute, download speed is a major consideration:
– Need to understand how connection speeds influence download rates,
– Just because graphic designers can do something cutting edge on Web sites,
doesn’t mean they should.
Slow Connection Speeds
And Web Site Design
• E-marketers must see the world from their target market’s perspective =
understanding the target market’s total experience with a Web site.
• In developed countries, users experience extremely slow download times

only occasionally.
• In developing countries, slow downloads are an everyday occurrence.
• To avoid this problem, e-marketers need to :

– Understand the target market,
– Consider the country’s overall bandwidth,
– Keep graphics simple,
– Limit the number of pictures,
– Optimize the site for speedy and smooth downloads.
• Sporadic electricity = Another challenge for countries with emerging economies,
• Nepal:
– One of the poorest countries in the world, with an annual per capita income
<$250,
– Rich in many natural resources, including water,
– Has built a series of hydro electric dams throughout the country,
– 15% of all households in Nepal have electricity,
– Most people living in major cities have electricity (sometimes without electricity
during the summer months).
• In the summer of 2001, the Nepal Electrical Authority (NEA) could not generate
enough electricity for the entire country:
 Electricity loss affected every business, including Internet-dependent businesses.
 All locally-hosted Nepali Web sites went down when the electricity was cut.
Overview

Emerging Economies
Market Similarity
The Digital Divide
• Mobile phones and the supporting technology have the potential to dramatically
change the face of e-marketing around the world.
 Many countries have more mobile telephone subscribers than fixed-line
telephone subscribers.
 Cambodia, Chile, Ivory Coast, Morocco, Paraguay, Philippines, Senegal, Uganda,
and Venezuela are all countries with emerging economies.
Cambodia:
• In 1993, first country in the world to have more mobile telephone subscribers than
fixed-line telephone subscribers.
• Why?
– Cost = Cell phones and the accompanying technology for mobile networks were
less expensive than fixed-line telephones.
– History = “As a result of more than two decades of war…Cambodia has 4 to 6
million landmines in the ground” = digging up the ground to lay telephone cable is
simply too risky.
• This case reminds international e-marketers that understanding country history is an

important element in assessing foreign markets.
1993 1998 1999 2000 2001
Cambodia Finland Austria Bahrain Senegal
Hong Kong Belgium Singapore
SAR
Ivory Coast Botswana Slovenia
Israel Chile United
Kingdom
Italy Greece
Paraguay Iceland
Portugal Morocco
Uganda Philippines
Venezuela Rwanda
Selected countries that have more mobile telephones than fixed line telephone subscribers by year
Source: Adapted from Minges, (2001)
• Mobile phone technology is an effective and relatively inexpensive path to

telecommunications, countries with emerging economies can leap frog industrialized
countries in terms of usage.
• Challenges of wireless e-marketing:

– How to modify existing Web site content for the smaller screens on cell phone
displays,
– How to resolve potentially cumbersome text entry using tiny keypads
– How to develop new content that consumers will want
– How to price services,
– How to develop easy, secure payment methods,
– Understand that consumer behavior with the mobile Internet.
• Text messaging: On PCs, E-mail length is not a problem with PCs. It is a problem with
mobile phones.
 New content and new marketing strategies must be developed for wireless Internet
access.
Success story: How McDonald’s identified & capitalized on an e-marketing opportunity

by merging the anytime, anywhere capability of mobile phones with China's interest in
soccer and its rapidly growing consumer economy.
• During the 2002 World Cup Finals, McDonald’s developed a special SMS promotion
for the China market (world’s largest mobile telephone market).
• McDonald’s sent an SMS alert to selected mobile phone subscribers explaining how
to download coupons for free ice cream, how to get a special McSmilie icon for their
mobile phones, and how to download a McDonald’s theme song as a special phone
ringer.
• Results:
• Store sales increased
• Every mobile phone with a McDonald’s phone ringer promoted McDonald’s
every time the subscriber received an incoming phone call.
Overview

Emerging Economies
Market Similarity
The Digital Divide
The Digital Divide
• E-marketers have to consider the social environment in which their e-businesses

operate.
• Nations with emerging economies may be in different stages of economic

development, which affects their social climate.
• Least developed countries (LDCs) = countries with the world’s poorest economies:
– Economically underdeveloped,
– Share one other common characteristic: excruciating poverty,
– To describe the economic situation= the percentage of a country’s population
earning less than $2 per day.
• In these, the world’s poorest countries, life is literally a war waged for survival.
The Digital Divide
In the least developed countries:
• Meager incomes provide only the basic necessities.

• Most meals are the same, consisting of rice, wheat, or corn.
• Shelter is primitive.
• People share a small room (earthen floor and no sanitary facilities).
• Most of the population lives in rural areas, work is hard and time-consuming.
• Productivity is low, household plots are small and only the crudest of farm implements
are available.
• Farm output per person is barely sufficient to feed a farmer’s own family, with nothing
left to sell to others.
• School age children may receive some formal education, but illiteracy remains chronic
for you and old.
• Infant mortality runs 10 times higher than in the United States.
• Only one physician per 5,000 people.
Percentage of Population earning
Country below $2 a day
Bangladesh 77.8
Bolivia 38.6
Botswana 61.4
Central African Republic 84.0
China 53.7
Ecuador 52.3
El Salvador 51.9
Guatemala 64.3
Indonesia 86.2
Mali 90.6
Nepal 82.5
Nigeria 90.8
Zambia 64.2
International Poverty Lines for Selected Countries Source: Adapted from Table 4, World Bank, (2000)
The Digital Divide
• A dual economy:
– LDCs contain population segments with much higher income levels.
– This divides the country into haves and have nots.
– Wealth is concentrated in a country’s largest city, usually the capital.
• 2 completely different economies exist side-by-side, they are centuries apart in terms
of economic and technological development.
• Digital divide = “ between countries and between different groups of people within
countries, there is a wide division between those who have real access to information
and communications technology and are using it effectively, and those who don't.”
• “Industrialized countries, with only 15% of the world's population, are home to 88% of
all Internet users.
The Digital Divide
• The digital divide raises challenging questions for global policy makers, international
businesses, and local entrepreneurs.
• What responsibilities do these different groups have for narrowing the gap between
those that have and those that don’t have access to technology?
• Global policy makers at the United Nations, the World Bank, and the G8 believe the
answer is yes.
• Some e-marketers are successfully helping to close the digital divide.
• www.villageleap.com, the Robib village website (Cambodia):

– Women market traditional Cambodian silk weavings to overseas buyers,
– Money is reinvested in the local pig farm,
– Also allow villagers to send and receive medical information = reduce the number
of two hour road to the nearest hospital.
Ethical and Legal Issues
60
Overview of Ethics and Legal Issues
Ethics and law are closely related.
Ethics takes into account the concerns and values
of society as a whole.
Modern technology presents challenges to
marketing ethics. Critical issues include:
Ownership of intellectual property
The role of privacy in a virtual world
Freedom of expression
Use of data and its collection
Status of children and digital networks
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The Problem of Self-Regulation
Recent U.S. administrations have left the
development of the internet to the free operation
of the market.
Supporters of self-regulation stress the private
sector’s ability to identify and resolve problems.
Critics argue that incentives for self-regulation
are insufficiently compelling and true deterrence
will not be achieved.
Recent policy-making activities indicate that
governments are asserting themselves in areas
such as fraud prevention and children’s issues.
©2009 Pearson Education, Inc.
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Publishing as Prentice Hall
Software Infringement
• Copyright infringement occurs when people or
companies loan software to others for which
they have no licenses.
• Counterfeiting occurs when illegally copied
software is duplicated and distributed on a
large scale.
• Countries with weak software copyright
enforcement cost software owners billions of
dollars in lost revenue.
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Software Infringement, cont.
• Globally, over a third of the software sold is an
infringing version.
• Microsoft uses the following remedies:
– Proposes intellectual property legislation.
– Files civil lawsuits.
– Creates non infringement technologies.
• Microsoft believes that education is the best
weapon against piracy. Do you agree?
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Privacy
• The concept of privacy encompasses both
ethical and legal aspects.
• There is constant debate regarding privacy
and it has proved to be an elusive concept,
both ethically and legally.
• Within society, privacy interests compete with
concerns for safety, economics, and need for
association with others.

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Privacy Within Digital Contexts
Information plays a pivotal role in the concept of
privacy.
AMA Code of Ethics for Marketing on the internet:
“information collected from customers should be
confidential and used only for expressed purposes.”
Online advertising firms such as DoubleClick have
traditionally recorded users’ clickstreams to form user
profiles for marketing purposes.
Controversy arose in 2000 when DoubleClick acquired
consumer names, addresses, and buying histories and
planned to combine the offline data with clickstream
data.

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Privacy Debates and Policy
 Privacy supporters advocate policies to inform consumers of
data collection and allow them to participate (opt-in) or
decline (opt-out).
Critics point out that many users do not understand how
computers operate and question whether consumers have the
expertise necessary to successfully opt-out.
Others argue that users wish to receive the benefits of targeted
advertising.
 Access to personal data is another important online privacy
issue.
 Although several bills are pending, no law exists to resolve the
privacy debate.
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Other Privacy Issues
• Technologies such as cookies, are omnipresent
applications that can function without the user’s
knowledge or control.
• The Children’s Online Privacy Protection Act (COPPA)
established policies for ethical collection of
information from children 12 or under.
• Privacy within electronic mail remains an unsettled
aspect of online interaction.

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International Privacy Issues
• The European Union (EU) and the U.S. reached
agreement in 2000 to protect EU citizen data.
• The Federal Trade Commission has identified the
following norms for the ethical use of consumer
information:
– Notice
– Consent
– Access
– Security
– Enforcement

5-69
Digital Property
• The law protects intangible or intellectual
property through 3 basic mechanisms:
– Patent law is centered on inventions.
– Copyright addresses issues of expression.
– Trademark is concerned with words or images
used in the market.

5-70
Patents
Applying patent law to computing is an uncertain
but developing field.
Creators of software are attempting to make use
of patent law protection.
Advocates argue that granting of patents for software
will encourage innovation.
Critics argue that patents will have stifling and
monopolistic effects.
The U.S. Patent Office recently decided to
increase the rigor of reviewing applications for
software-related protection.

5-71
Copyright
• Copyright is the primary means of protecting
most expression on the Internet.
• Chief protections include:
– Doctrine of Fair Use
• Ability to copy protected material for education and
news reporting.
– Doctrine of First Sale
• Limit the ability of copyright holder to obtain profit
after the initial time at which the material is sold.

5-72
Copyright, cont.
The No Electronic Theft (NET) Act was signed into
law in 1997.
Confers copyright protection for computer content and
imposes sanctions for infringement.
The 1998 Digital Millennium Copyright Act
(DMCA) contains several provisions.
Protects ISPs from acts of user infringement.
Criminalizes the circumvention of software
protections.
Complies with international standards for copyrighted
material.

5-73
Trademarks
Trademark law concerns the ownership of
intellectual property that identifies goods or
services.
Trademark law as been applied to the internet
naming system of domain names.
Similarities in names may result in trademark
infringement claims.
A trademark violation, cybersquatting, involves the
registration of domains that resemble or duplicate
existing ones.
5-74
Licenses
• Licenses are an increasingly popular method of
intellectual property protection.
– Licenses allow the buyer to use the product but
restrict duplication or distribution.
• Licenses may be two basic types:
– Shrinkwrap or break-the-seal licenses
– Clickwrap licenses where the user is required to click a
button to accept the terms
• Legal trend favors enforcement of software
licenses.
5-19
Online Expression
Freedom of expression is protected by the First
Amendment.
Internet technology has resulted in what many
consider inappropriate or untargeted types of
consumer contact.
Spam is the mass distribution of unsolicited electronic
mail.
CAN-SPAM Act creates a framework for ethical
email marketing.
Expression directed to children remains a highly
visible issue within online law and ethics.
5-76
Emerging Issues
• Online governance
– The Internet Corporation for Assigned Names and
Numbers (ICANN) was formed in 1998.
• Jurisdiction is the ability of a court or other
authority to gain control over a party.
– Traditionally based on physical presence.
– Treaties may provide for international resolution
and enforcement.

5-77
Emerging Issues, cont.
• Fraud is the use of deception and false claims
to obtain profit.
– The internet provides opportunities for novel
deceptions.
– Spoofing is the use of e-mail or Web sites to
impersonate individuals or corporations.
• The FTC, FBI, and state agencies have
increased their efforts to track and prosecute
fraudulent conduct.
5-78
Cyber Crime
• Crime committed using a computer and the

internet to steal data or information.
 Illegal imports.
 Malicious programs.
• Types of cyber crime
• • Hacking
• • Denial of service attack
• • Virus Dissemination
• • Computer Vandalism
• • Cyber Terrorism
• • Software Piracy
79
Obscure Jamtara in Jharkhand has
become cyber crimes hub: Home Secy
• More than half of India's cyber crimes are
being committed by fraudsters from an
obscure place calledJamtara in Jharkhand,
Union Home Secretary Rajib Gauba said today.
Cyber Security
• Internet security is a branch of computer

security specifically related to the Internet.
• It's objective is to establish rules and measure to
use against attacks over the Internet.
Advantages of cyber security
• Defend us from critical attacks.
• Browse the safe website.
• Internet security process all the incoming and
outgoing data on our computer
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Overview of The E-Marketing Planning Process

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Overview of the E-

 The Venture Capital E-Marketing Plan is a

• Venture capital (VC) is a type of private equity,

 Review the firm’s environmental and SWOT

1.Hispanic markets growing and 1.Pending security law means costly

1.Strong customer service department. 1.Low-tech corporate culture.

E-Marketing Objective: $500,000 in revenues from e-commerce in one year.

 Market and product strategies, called Tier 1

 An objective in an e-marketing plan

 Most e-marketing plans aim to accomplish

 Tier 2 strategies include strategies related to

 Tactics are used to achieve plan objectives

 Marketing organization tactics

 The plan must identify the expected

 Intangible benefits, such as brand

 Marketing plan success depends on

 Today’s firms are ROI driven.

• Worldwide Internet use is projected to increase at faster rate

• Internet use varies greatly from country to country.

• Country size and population have little bearing on Internet use:

• Where will the greatest challenges lie?

Countries vary in their level of economic development:

• To improve its level of economic development, a country can:

• For emerging economies, technology plays an especially important role.

• The Internet allows businesses in emerging economies to instantaneously tap

• Successful marketing on the Internet can leapfrog a company from nowhere

• E-marketers from countries with emerging economies face a double

• Businesses operating in emerging economies must deal with:

• Internet marketing differences between developed and developing countries

U.S. and European list: Emerging economies list:

• Privacy concerns (31%), • Slow connection speeds (29%),

Overview of Global E-Marketing Issues

• An e-marketing plan guides the marketer through the process of identifying

• Global e-marketers must balance 2 different analytical approaches:

– Market similarity = If they are operating from a country with an emerging

Market Approaches Between Emerging and Developed Economies

• Concept of market similarity = marketers choose foreign markets that have

• E-businesses in countries with emerging markets make parallel target market

• One of the biggest differences between developed countries and emerging

• Convenience & ease of transactions = 2 of the Internet’s greatest benefits.

• In developed countries: credit cards + secure online payment systems make

• But in countries with emerging economies, things aren’t so easy.

Rita’s Pizza site in Vilnius, Lithuania:

• Marketers must also analyze relevant buyer behavior within a market:

• The Czech Republic is a relatively small country in central Europe

• The Czech Republic has many online retailing Web sites:www.obchodnidum.cz

Total Online Sales in the Czech Republic

• In the Czech Republic: People fear online shopping.

• How do Czech consumers pay for their online purchases?

• Innovative solution = eBanka:

Overview of Global E-Marketing Issues

• In emerging economies, e-marketers must also deal with daunting issues of

– Limited access to and use of computers and telephones,

– In developed countries, this is not a problem.

– In emerging economies, computer access is a big problem.

• Computer access is unevenly distributed throughout the world:

• E-marketers should never underestimate the profound influence of limited computer

Computer ownership in Selected Countries Source: ITU, (2001a)

• Individuals & businesses need to be connected to the Internet though phones.

• In developed countries, telephones are a common and prevalent commodity:

• In countries with emerging economies, telephones are scarce and expensive.

• In emerging economies, telephone access has a very different pattern than in

Total Internet Connection Costs in Selected Arab Countries