online marketing of electronic items

Upload: geoffrey-sserwanga

Post on 07-Apr-2018

218 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/6/2019 Online Marketing of Electronic Items

    1/34

    Online marketing /selling of second hand electronic items

    1.0 Introduction

    1.1 Background

    Marketing is a business term referring to the promotion of products, advertising,

    pricing, distribution channels, andbranding. The term developed from the original

    meaning which referred literally to going to market, as in shopping, or going to a

    market to sell goods or services. The American Marketing Association (AMA)

    states, "Marketing is an organizational function and a set of processes for

    creating, communicating and delivering value to customers and for managing

    customer relationships in ways that benefit the organization and its stakeholders."

    American Marketing Association (2008)

    Marketing practice tends to be seen as a creative industry, which includes

    advertising, distribution and selling. It is also concerned with anticipating the

    customers' future needs and wants, which are often discovered through market

    research. Marketing is influenced by many of the social sciences, particularly

    psychology,sociology, and economics.Anthropology is also a small, but growing

    influence. Market research underpins these activities. Through advertising, it isalso related to many of the creative arts. The marketing literature is also infamous

    for re-inventing itself and its vocabulary according to the times and the culture.

    Louise and comScore (2007)

    Direct marketing is a sub-discipline and type of marketing. There are two main

    definitional characteristics which distinguish it from other types of marketing.

    The first is that it attempts to send its messages directly to consumers, without the

    use of intervening media. This involves commercial communication (direct mail,

    e-mail, telemarketing) with consumers or businesses, usually unsolicited. The

    second characteristic is that it is focused on driving purchases that can be

    attributed to a specific "call-to-action." This aspect of direct marketing involves

    an emphasis on trackable, measurable positive (but not negative) responses from

    consumers (known simply as "response" in the industry) regardless of medium. If

    http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Creativityhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Creativityhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Advertising
  • 8/6/2019 Online Marketing of Electronic Items

    2/34

    the advertisement asks the prospect to take a specific action, for instance call a

    free phone number or visit a website, then the effort is considered to be direct

    response advertising. Ian Mohr (2006)

    The Internet is a global system of interconnected computer networks that

    interchange data by packet switching using the standardized Internet Protocol

    Suite (TCP/IP). It is a "network of networks" that consists of millions of private

    and public, academic, business, and government networks of local to global scope

    that are linked by copperwires, fiber-optic cables, wirelessconnections, and other

    technologies. The Internet carries various information resources and services,

    such as electronic mail, online chat,file transferand file sharing, online gaming,

    and the inter-linkedhypertext documents and other resources of the World Wide

    Web (WWW). David (2008)

    Affiliate marketing is an Internet-based marketing practice in which a business

    rewards one or more affiliatesfor each visitor or customer brought about by the

    affiliate's marketing efforts. Affiliate marketing is also the name of the industry

    where a number of different types of companies and individuals are performing

    this form ofInternet marketing, including affiliate networks, affiliate management

    companies, and in-houseaffiliate managers, specialized third partyvendors, and

    various types of affiliates/publishers who promote the products and services of

    their partners. (Lone morea 2006)

    The Internet has brought many unique benefits to marketing, one of which being

    lower costs for the distribution of information and media to a global audience.

    The interactive nature of Internet marketing, both in terms of providing instant

    response and eliciting responses, is a unique quality of the medium. Internet

    marketing is sometimes considered to have a broader scope because it refers to

    digital media such as the Internet, e-mail, and wireless media; however, Internet

    marketing also includes management of digital customer data and electronic

    customer relationship management (ECRM) systems. Louise (2008)

    http://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Data_(computing)http://en.wikipedia.org/wiki/Data_(computing)http://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Online_chathttp://en.wikipedia.org/wiki/File_transferhttp://en.wikipedia.org/wiki/File_transferhttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Online_gaminghttp://en.wikipedia.org/wiki/Hypertexthttp://en.wikipedia.org/wiki/Hypertexthttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Affiliateshttp://en.wikipedia.org/wiki/Affiliateshttp://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Affiliate_networkshttp://en.wikipedia.org/wiki/Affiliate_managerhttp://en.wikipedia.org/wiki/Affiliate_managerhttp://en.wikipedia.org/wiki/Vendor_(supply_chain)http://en.wikipedia.org/wiki/Vendor_(supply_chain)http://en.wikipedia.org/wiki/ECRMhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Data_(computing)http://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Online_chathttp://en.wikipedia.org/wiki/File_transferhttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Online_gaminghttp://en.wikipedia.org/wiki/Hypertexthttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Affiliateshttp://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Affiliate_networkshttp://en.wikipedia.org/wiki/Affiliate_managerhttp://en.wikipedia.org/wiki/Vendor_(supply_chain)http://en.wikipedia.org/wiki/ECRMhttp://en.wikipedia.org/wiki/2008
  • 8/6/2019 Online Marketing of Electronic Items

    3/34

    1.2 Statement of the problem

    Tradition marketing/ selling has its own limitation including limited market

    scope, cost of maintaining physical stoke and the problem of coordinating

    suppliers and customer. When it comes to second hand items marketing is

    normally done by brokers which increases the cost.

    The project intends to implement a C2C (consumer to consumer) e-commerce

    model that will link customers who have second hand electronic items to

    customers who want the items thus eliminating intermediaries

    1.3 General objective

    To build a web site that will facilitate buying and selling of second hand

    electronic items

    1.4 Specific objectives

    To design a well linked attractive website

    To build a website that takes convenient time to load and serve the customers

    To build an electronic database that will be used to store system data

    1.5 Scope

    The project will be base on Copper Electronics it is to specifically deal with

    registration of items, categories, linking customer who have items to customers

    who want them, retrieval and generation of financial reports.

    1.6 Significance

    The new system will reduce cost of operation

    It will provide ready market for second hand items

    It will also generate income to the hosting company

  • 8/6/2019 Online Marketing of Electronic Items

    4/34

    Literature review

    2.0 Introduction

    2.1 Marketing

    Marketing is a business term referring to the promotion of products, advertising,

    pricing, distribution channels, andbranding. The term developed from the original

    meaning which referred literally to going to market, as in shopping, or going to a

    market to sell goods or services. The American Marketing Association (AMA)

    states, "Marketing is an organizational function and a set of processes for

    creating, communicating and delivering value to customers and for managing

    customer relationships in ways that benefit the organization and its stakeholders.

    Marketing practice tends to be seen as a creative industry, which includes

    advertising, distribution and selling. It is also concerned with anticipating the

    customers' future needs and wants, which are often discovered through market

    research. Marketing is influenced by many of the social sciences, particularly

    psychology, sociology, and economics. Anthropology is also a small, but growing

    influence. Market research underpins these activities. Through advertising, it is

    also related to many of the creative arts. The marketing literature is also infamous

    for re-inventing itself and its vocabulary according to the times and the culture

    Louise and comScore (2008).

    In the early 1960s, Professor Neil Borden at Harvard Business School identified a

    number of company performance actions that can influence the consumer decision

    to purchase goods or services. Borden suggested that all those actions of the

    company represented a Marketing Mix. ProfessorE. Jerome McCarthy, also at

    the Harvard Business School in the early 1960s, suggested that the Marketing Mix

    contained 4 elements: product, price, place and promotion.

    Product: The product aspects of marketing deal with the specifications of the

    actual goods or services, and how it relates to the end-user's needs and wants. The

    scope of a product generally includes supporting elements such as warranties,

    guarantees, and support.

    http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Creativityhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/E._Jerome_McCarthyhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Creativityhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/E._Jerome_McCarthyhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/End-user
  • 8/6/2019 Online Marketing of Electronic Items

    5/34

    Pricing: This refers to the process of setting a price for a product, including

    discounts. The price need not be monetary - it can simply be what is exchanged

    for the product or services, e.g. time, energy, or attention.

    Promotion: This includes advertising, sales promotion, publicity, and personal

    selling, branding and refers to the various methods of promoting the product,

    brand, or company.

    Placement (ordistribution): refers to how the product gets to the customer; for

    example, point-of-sale placement or retailing. This fourth P has also sometimes

    been calledPlace, referring to the channel by which a product or service is sold

    (e.g. online vs. retail), which geographic region or industry, to which segment

    (young adults, families, business people), etc. also referring to how the

    environment in which the product is sold in can affect sales.

    2.1.0 Direct marketing

    is a sub-discipline and type of marketing. There are two main definitional

    characteristics which distinguish it from other types of marketing. The first is that

    it attempts to send its messages directly to consumers, without the use of

    intervening media. This involves commercial communication (direct mail, e-mail,

    telemarketing) with consumers or businesses, usually unsolicited. The second

    characteristic is that it is focused on driving purchases that can be attributed to a

    specific "call-to-action." This aspect of direct marketing involves an emphasis on

    trackable, measurable positive (but not negative) responses from consumers

    (known simply as "response" in the industry) regardless of medium. If the

    advertisement asks the prospect to take a specific action, for instance call a free

    phone number or visit a website, then the effort is considered to be direct response

    advertising. Spartan Internet Consulting (2006)

    The term direct marketingis believed to have been first used in 1961 in a speech

    by Lester Wunderman, who pioneered direct marketing techniques with brands

    such as American Express and Columbia Records.The term junk mail, referring

    to unsolicited commercial ads delivered via post office or directly deposited in

    consumers' mail boxes, can be traced back to 1954. The term spam, meaning

    http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Brandinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://spartaninternet.com/2008/news.asp?id=9http://en.wikipedia.org/wiki/Lester_Wundermanhttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/Columbia_Recordshttp://en.wikipedia.org/wiki/Spamhttp://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Brandinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://spartaninternet.com/2008/news.asp?id=9http://en.wikipedia.org/wiki/Lester_Wundermanhttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/Columbia_Recordshttp://en.wikipedia.org/wiki/Spam
  • 8/6/2019 Online Marketing of Electronic Items

    6/34

    "unsolicited commercial email", can be traced back to March 31, 1993, although

    in its first few months it merely referred to inadvertently posting a message so

    many times on UseNet that the repetitions effectively drowned out the normal

    flow of conversation.

    Although Wunderman may have been the first to use the term direct marketing,

    the practice of mail order selling (direct marketing via mail) essentially began in

    the U.S. upon invention of the typewriterin 1867.

    The first modern mail-order catalog was produced by Aaron Montgomery Ward

    in 1872.The Direct Mail Advertising Association, predecessor of the present-day

    Direct Marketing Association, was first established in 1917.Third classbulk mail

    postage rates were established in 1928.

    2.1.1 Direct Marketing Benefits and drawbacks

    Direct marketing is attractive to many marketers, because in many cases its

    positive effect (but not negative results) can be measured directly. For example, if

    a marketer sends out one million solicitations by mail, and ten thousand

    customers can be tracked as having responded to the promotion, the marketer can

    say with some confidence that the campaign led directly to the responses. The

    number of recipients who are offended by the junk mail/spam, however, is not

    easily measured. By contrast, measurement of other media must often be indirect,

    since there is no direct response from a consumer. Measurement of results, a

    fundamental element in successful direct marketing, is explored in greater detail

    elsewhere in this article. Yet since the start of the Internet-age the challenges of

    Chief Marketing Executives (CMOs) are tracking direct marketing responses and

    measuring results. Center For Responsive Politives (2008)

    While many marketers like this form of marketing, some direct marketing efforts

    using particular media have been criticized for generating unwanted solicitations.

    For example, direct mail that is irrelevant to the recipient is considered junk mail,

    and unwanted email messages are considered spam. Some consumers are

    demanding an end to direct marketing for privacy and environmental reasons,

    http://en.wikipedia.org/wiki/UseNethttp://en.wikipedia.org/wiki/Typewriterhttp://en.wikipedia.org/wiki/Aaron_Montgomery_Wardhttp://en.wikipedia.org/wiki/Direct_Marketing_Associationhttp://en.wikipedia.org/wiki/Bulk_mailhttp://www.opensecrets.org/pres08/summary.php?id=N00009638http://en.wikipedia.org/wiki/UseNethttp://en.wikipedia.org/wiki/Typewriterhttp://en.wikipedia.org/wiki/Aaron_Montgomery_Wardhttp://en.wikipedia.org/wiki/Direct_Marketing_Associationhttp://en.wikipedia.org/wiki/Bulk_mailhttp://www.opensecrets.org/pres08/summary.php?id=N00009638
  • 8/6/2019 Online Marketing of Electronic Items

    7/34

    which direct marketers are able to provide by using "opt out" lists, variable

    printing and more targeted mailing lists. David James(2006)

    2.1.2 Channels

    Some direct marketers also use media such as door hangers, package inserts,

    magazines, newspapers, radio, television, email, internetbanner ads,pay-per-click

    ads, billboards, transit ads. And according to Ad Age, "In 2005, U.S. agencies

    generated more revenue from marketing services (which include direct marketing)

    than from traditional advertising and media.

    Direct mail

    The most common form of direct marketing is direct mail,sometimes calledjunk

    mail, used by advertisers who send paper mail to all postal customers in an area

    or to all customers on a list.

    Typical junkmail.

    Any low-budget medium that can be used to deliver a communication to a

    customer can be employed in direct marketing. Probably the most commonly used

    medium for direct marketing is mail, in which marketing communications are sent

    to customers using the postal service. The term direct mail is used in the direct

    marketing industry to refer to communication deliveries by the Post Office, which

    may also be referred to as "junk mail" or "admail" and may involve bulk mail.

    Junk mail includes advertising circulars, catalogs, free trial CDs, pre-approved

    credit card applications, and other unsolicited merchandising invitations delivered

    by mail or to homes and businesses, or delivered to consumers' mailboxes by

    delivery services other than the Post Office. Bulk mailings are a particularly

    popular method of promotion for businesses operating in the financial services,

    home computer, and travel and tourism industries. Ian Mohr (2006)

    In many developed countries, direct mail represents such a significant amount of

    the total volume of mail that special rate classes have been established. In the

    http://en.wikipedia.org/wiki/Insert_(print_advertising)http://en.wikipedia.org/wiki/Emailhttp://en.wikipedia.org/wiki/Banner_adshttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Billboardshttp://en.wikipedia.org/wiki/Bulk_mailhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Compact_Dischttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Merchandisinghttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Insert_(print_advertising)http://en.wikipedia.org/wiki/Emailhttp://en.wikipedia.org/wiki/Banner_adshttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Billboardshttp://en.wikipedia.org/wiki/Bulk_mailhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Compact_Dischttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Merchandisinghttp://en.wikipedia.org/wiki/Mail
  • 8/6/2019 Online Marketing of Electronic Items

    8/34

    United States and United Kingdom, for example, there are bulk mail rates that

    enable marketers to send mail at rates that are substantially lower than regular

    first-class rates. In order to qualify for these rates, marketers must format and sort

    the mail in particular ways - which reduces the handling (and therefore costs)

    required by the postal service.

    Advertisers often refine direct mail practices into targeted mailing, in which mail

    is sent out following database analysis to select recipients considered most likely

    to respond positively. For example a person who has demonstrated an interest in

    golfmay receive direct mail for golf related products or perhaps for goods and

    services that are appropriate for golfers. This use of database analysis is a type of

    database marketing. The United States Postal Service calls this form of mail"advertising mail" (admailfor short).

    Telemarketing

    The second most common form of direct marketing is telemarketing, in which

    marketers contact consumers by phone. The unpopularity of cold call

    telemarketing (in which the consumer does not expect or invite the sales call) has

    led some US states and the US federal government to create "no-call lists" andlegislation including heavy fines. This process may be outsourced to specialist

    call centres. Louise ( 2008).

    In the US, a national do-not-call list went into effect on October 1, 2003. Under

    the law, it is illegal for telemarketers to call anyone who has registered themselves

    on the list. After the list had operated for one year, over 62 million people had

    signed up. The telemarketing industry opposed the creation of the list, but most

    telemarketers have complied with the law and refrained from calling people who

    are on the list.

    Email Marketing

    Email Marketing may have passed telemarketing in frequency at this point, and is

    a third type of direct marketing. A major concern is spam, which actually predates

    http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Database_marketinghttp://en.wikipedia.org/wiki/United_States_Postal_Servicehttp://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Cold_callhttp://en.wikipedia.org/wiki/United_States_National_Do_Not_Call_Registryhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/United_States_National_Do_Not_Call_Registryhttp://en.wikipedia.org/wiki/Email_Marketinghttp://en.wikipedia.org/wiki/Spam_(electronic)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Database_marketinghttp://en.wikipedia.org/wiki/United_States_Postal_Servicehttp://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Cold_callhttp://en.wikipedia.org/wiki/United_States_National_Do_Not_Call_Registryhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/United_States_National_Do_Not_Call_Registryhttp://en.wikipedia.org/wiki/Email_Marketinghttp://en.wikipedia.org/wiki/Spam_(electronic)
  • 8/6/2019 Online Marketing of Electronic Items

    9/34

    legitimate email marketing. As a result of the proliferation of mass spamming,

    ISPs and email service providers have developed increasingly effective E-Mail

    Filtering programs. These filters can interfere with the delivery of email

    marketing campaigns, even if the person has subscribed to receive them, as

    legitimate email marketing can possess the same hallmarks as spam. Mediapost

    (2007)

    Voicemail Marketing

    Another type of direct marketing has emerged out of the market prevalence of

    personal voice mailboxes, and business voicemail systems. Due to the ubiquity of

    email marketing, and the expense of direct mail and telemarketing, voicemail

    marketing presented a cost effective means by which to reach people with the

    warmth of a human voice. Abuse of consumer marketing applications of

    voicemail marketing resulted in an abundance of "voice-spam", and prompted

    many jurisdictions to pass laws regulating consumer voicemail marketing.

    More recently, businesses have utilized guided voicemail (an application where

    pre-recorded voicemails are guided by live callers) to accomplish personalized

    business-to-business marketing formerly reserved for telemarketing. Becauseguided voicemail is used to contact only businesses, it is exempt from Do Not

    Call regulations in place for other forms of voicemail marketing. Businessweek

    (2006)

    Couponing

    Couponing is used in print media to elicit a response from the reader. An example

    is a coupon which the reader cuts out and presents to a super-store check-out

    counter to avail of a discount. Coupons in newspapers and magazines cannot be

    considered direct marketing, since the marketer incurs the cost of supporting a

    third-party medium (the newspaper or magazine); direct marketing aims to

    circumvent that balance, paring the costs down to solely delivering their

    unsolicited sales message to the consumer, without supporting the newspaper that

    the consumer seeks and welcomes. The Register(2006)

    http://en.wikipedia.org/w/index.php?title=E-Mail_Filtering&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=E-Mail_Filtering&action=edit&redlink=1http://blogs.mediapost.com/omd_commentary/?p=692http://blogs.mediapost.com/omd_commentary/?p=692http://www.businessweek.com/technology/content/dec2006/tc20061207_485162.htmhttp://www.theregister.co.uk/2006/09/29/internet_advertising_booms/http://en.wikipedia.org/w/index.php?title=E-Mail_Filtering&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=E-Mail_Filtering&action=edit&redlink=1http://blogs.mediapost.com/omd_commentary/?p=692http://blogs.mediapost.com/omd_commentary/?p=692http://www.businessweek.com/technology/content/dec2006/tc20061207_485162.htmhttp://www.theregister.co.uk/2006/09/29/internet_advertising_booms/
  • 8/6/2019 Online Marketing of Electronic Items

    10/34

    Television marketing

    Direct marketing on TV (commonly referred to as DRTV) has two basic forms:

    long form (usually half-hour or hour-long segments that explain a product in

    detail and are commonly referred to as infomercials) and short form which refers

    to typical 0:30 second or 0:60 second commercials that ask viewers for an

    immediate response (typically to call a phone number on screen or go to a

    website).

    TV-response marketingi.e. infomercialscan be considered a form of direct

    marketing, since responses are in the form of calls to telephone numbers given on-

    air. This both allows marketers to reasonably conclude that the calls are due to a

    particular campaign, and allows the marketers to obtain customers' phone

    numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in

    the US, if the caller buys anything, the marketer would be exempt from Do-Not-

    Call List restrictions for a period of time due to having a prior business

    relationship with the caller. Major players are firms like QVC, Thane Direct, and

    Interwood Marketing Group then cross-sell, and up-sell to these respondents.

    David James (2007)

    2.2 The internet

    The Internet is a global system of interconnected computer networks that

    interchange data by packet switching using the standardized Internet Protocol

    Suite (TCP/IP). It is a "network of networks" that consists of millions of private

    and public, academic, business, and government networks of local to global scope

    that are linked by copperwires, fiber-optic cables, wireless connections, and other

    technologies. The Internet carries various information resources and services,

    such as electronic mail, online chat, file transferand file sharing, online gaming,

    and the inter-linked hypertext documents and other resources of the World Wide

    Web (WWW).

    The opening of the network to commercial interests began in 1988. The US

    Federal Networking Council approved the interconnection of the NSFNET to the

    http://en.wikipedia.org/wiki/Infomercialshttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Data_(computing)http://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Online_chathttp://en.wikipedia.org/wiki/File_transferhttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Online_gaminghttp://en.wikipedia.org/wiki/Hypertexthttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Infomercialshttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Data_(computing)http://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Internet_Protocol_Suitehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Online_chathttp://en.wikipedia.org/wiki/File_transferhttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Online_gaminghttp://en.wikipedia.org/wiki/Hypertexthttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Web
  • 8/6/2019 Online Marketing of Electronic Items

    11/34

    commercial MCI Mail system in that year and the link was made in the summer

    of 1989. Other commercial electronic e-mail services were soon connected,

    including OnTyme, Telemail and Compuserve. In that same year, three

    commercial Internet service providers (ISP) were created: UUNET, PSINET and

    CERFNET. Important, separate networks that offered gateways into, then later

    merged with, the Internet include Usenet and BITNET. Various other commercial

    and educational networks, such as Telenet, Tymnet, Compuserve and JANET

    were interconnected with the growing Internet. Telenet (later called Sprintnet)

    was a large privately funded national computer network with free dial-up access

    in cities throughout the U.S. that had been in operation since the 1970s. This

    network was eventually interconnected with the others in the 1980s as the TCP/IP

    protocol became increasingly popular. The ability of TCP/IP to work over

    virtually any pre-existing communication networks allowed for a great ease of

    growth, although the rapid growth of the Internet was due primarily to the

    availability of commercial routers from companies such as Cisco Systems,

    Proteon and Juniper, the availability of commercial Ethernet equipment for local-

    area networking and the widespread implementation of TCP/IP on the UNIX

    operating system. Spartan Internet Consulting (2006)

    An early popularweb browserwas ViolaWWW, patterned afterHyperCard and

    built using the X Window System. It was eventually replaced in popularity by the

    Mosaic web browser. In 1993, the National Center for Supercomputing

    Applications at the University of Illinois released version 1.0 of Mosaic, and by

    late 1994 there was growing public interest in the previously academic, technical

    Internet. By 1996 usage of the word Internet had become commonplace, and

    consequently, so had its use as a synecdoche in reference to the World Wide Web.

    Meanwhile, over the course of the decade, the Internet successfully

    accommodated the majority of previously existing public computer networks

    (although some networks, such as FidoNet, have remained separate). During the

    1990s, it was estimated that the Internet grew by 100% per year, with a brief

    period of explosive growth in 1996 and 1997. This growth is often attributed to

    the lack of central administration, which allows organic growth of the network, as

    http://en.wikipedia.org/wiki/MCI_Mailhttp://en.wikipedia.org/wiki/UUNEThttp://en.wikipedia.org/wiki/Usenethttp://en.wikipedia.org/wiki/BITNEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/Tymnethttp://en.wikipedia.org/wiki/Compuservehttp://en.wikipedia.org/wiki/JANEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Cisco_Systemshttp://en.wikipedia.org/wiki/Juniper_Networkshttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/UNIXhttp://spartaninternet.com/2008/news.asp?id=9http://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/ViolaWWWhttp://en.wikipedia.org/wiki/HyperCardhttp://en.wikipedia.org/wiki/X_Window_Systemhttp://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/University_of_Illinois_at_Urbana-Champaignhttp://en.wikipedia.org/wiki/Synecdochehttp://en.wikipedia.org/wiki/FidoNethttp://en.wikipedia.org/wiki/MCI_Mailhttp://en.wikipedia.org/wiki/UUNEThttp://en.wikipedia.org/wiki/Usenethttp://en.wikipedia.org/wiki/BITNEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/Tymnethttp://en.wikipedia.org/wiki/Compuservehttp://en.wikipedia.org/wiki/JANEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Cisco_Systemshttp://en.wikipedia.org/wiki/Juniper_Networkshttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/UNIXhttp://spartaninternet.com/2008/news.asp?id=9http://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/ViolaWWWhttp://en.wikipedia.org/wiki/HyperCardhttp://en.wikipedia.org/wiki/X_Window_Systemhttp://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/University_of_Illinois_at_Urbana-Champaignhttp://en.wikipedia.org/wiki/Synecdochehttp://en.wikipedia.org/wiki/FidoNet
  • 8/6/2019 Online Marketing of Electronic Items

    12/34

    well as the non-proprietary open nature of the Internet protocols, which

    encourages vendor interoperability and prevents any one company from exerting

    too much control over the network.Louise and comScore (2006)

    The World Wide Web.

    Many people use the terms Internet and World Wide Web (or just the Web)

    interchangeably, but, as discussed above, the two terms are not synonymous.

    The World Wide Web is a huge set of interlinked documents, images and other

    resources, linked by hyperlinks and URLs. These hyperlinks and URLs allow the

    web servers and other machines that store originals, and cached copies, of these

    resources to deliver them as required using HTTP (Hypertext Transfer Protocol).

    HTTP is only one of the communication protocols used on the Internet. Web

    services also use HTTP to allow software systems to communicate in order to

    share and exchange business logic and data. (Morgan 2004)

    Software products that can access the resources of the Web are correctly termed

    user agents. In normal use, web browsers, such as Internet Explorer, Firefox and

    Apple Safari, access web pages and allow users to navigate from one to another

    via hyperlinks. Web documents may contain almost any combination ofcomputer

    data including graphics, sounds, text, video, multimedia and interactive content

    including games, office applications and scientific demonstrations.

    Through keyword-driven Internet research using search engines like Yahoo! and

    Google, millions of people worldwide have easy, instant access to a vast and

    diverse amount of online information. Compared to encyclopedias and traditional

    libraries, the World Wide Web has enabled a sudden and extreme decentralizationof information and data.. Using the Web, it is also easier than ever before for

    individuals and organisations to publish ideas and information to an extremely

    large audience. Anyone can find ways to publish a web page, a blog or build a

    website for very little initial cost. Publishing and maintaining large, professional

    websites full of attractive, diverse and up-to-date information is still a difficult

    and expensive proposition, however.

    http://en.wikipedia.org/wiki/Synonymoushttp://en.wikipedia.org/wiki/Documentshttp://en.wikipedia.org/wiki/Computer_graphicshttp://en.wikipedia.org/wiki/Hyperlinkhttp://en.wikipedia.org/wiki/URLshttp://en.wikipedia.org/wiki/Web_servershttp://en.wikipedia.org/wiki/HTTPhttp://en.wikipedia.org/wiki/Web_servicehttp://en.wikipedia.org/wiki/Web_servicehttp://en.wikipedia.org/wiki/User_agenthttp://en.wikipedia.org/wiki/Web_browsershttp://en.wikipedia.org/wiki/Internet_Explorerhttp://en.wikipedia.org/wiki/Firefoxhttp://en.wikipedia.org/wiki/Apple_Safarihttp://en.wikipedia.org/wiki/Computer_datahttp://en.wikipedia.org/wiki/Computer_datahttp://en.wikipedia.org/wiki/Plain_texthttp://en.wikipedia.org/wiki/Web_videohttp://en.wikipedia.org/wiki/Multimediahttp://en.wikipedia.org/wiki/Web_gamehttp://en.wikipedia.org/wiki/Office_applicationshttp://en.wikipedia.org/wiki/Keyword_(Internet_search)http://en.wikipedia.org/wiki/Internet_researchhttp://en.wikipedia.org/wiki/Web_search_enginehttp://en.wikipedia.org/wiki/Yahoo!_Searchhttp://en.wikipedia.org/wiki/Google_(search_engine)http://en.wikipedia.org/wiki/Encyclopediahttp://en.wikipedia.org/wiki/Librarieshttp://en.wikipedia.org/wiki/Publishhttp://en.wikipedia.org/wiki/Ideahttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Audiencehttp://en.wikipedia.org/wiki/Bloghttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Synonymoushttp://en.wikipedia.org/wiki/Documentshttp://en.wikipedia.org/wiki/Computer_graphicshttp://en.wikipedia.org/wiki/Hyperlinkhttp://en.wikipedia.org/wiki/URLshttp://en.wikipedia.org/wiki/Web_servershttp://en.wikipedia.org/wiki/HTTPhttp://en.wikipedia.org/wiki/Web_servicehttp://en.wikipedia.org/wiki/Web_servicehttp://en.wikipedia.org/wiki/User_agenthttp://en.wikipedia.org/wiki/Web_browsershttp://en.wikipedia.org/wiki/Internet_Explorerhttp://en.wikipedia.org/wiki/Firefoxhttp://en.wikipedia.org/wiki/Apple_Safarihttp://en.wikipedia.org/wiki/Computer_datahttp://en.wikipedia.org/wiki/Computer_datahttp://en.wikipedia.org/wiki/Plain_texthttp://en.wikipedia.org/wiki/Web_videohttp://en.wikipedia.org/wiki/Multimediahttp://en.wikipedia.org/wiki/Web_gamehttp://en.wikipedia.org/wiki/Office_applicationshttp://en.wikipedia.org/wiki/Keyword_(Internet_search)http://en.wikipedia.org/wiki/Internet_researchhttp://en.wikipedia.org/wiki/Web_search_enginehttp://en.wikipedia.org/wiki/Yahoo!_Searchhttp://en.wikipedia.org/wiki/Google_(search_engine)http://en.wikipedia.org/wiki/Encyclopediahttp://en.wikipedia.org/wiki/Librarieshttp://en.wikipedia.org/wiki/Publishhttp://en.wikipedia.org/wiki/Ideahttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Audiencehttp://en.wikipedia.org/wiki/Bloghttp://en.wikipedia.org/wiki/Cost
  • 8/6/2019 Online Marketing of Electronic Items

    13/34

    Many individuals and some companies and groups use "web logs" orblogs, which

    are largely used as easily updatable online diaries. Some commercial

    organisations encourage staff to fill them with advice on their areas of

    specialization in the hope that visitors will be impressed by the expert knowledge

    and free information, and be attracted to the corporation as a result. One example

    of this practice is Microsoft, whose product developers publish their personal

    blogs in order to pique the public's interest in their work.

    Collections of personal web pages published by large service providers remain

    popular, and have become increasingly sophisticated. Whereas operations such as

    Angelfire and GeoCities have existed since the early days of the Web, newer

    offerings from, for example, Facebook and MySpace currently have largefollowings. These operations often brand themselves as social network services

    rather than simply as web page hosts. (Clarace 2005)

    Advertising on popular web pages can be lucrative, and e-commerce or the sale of

    products and services directly via the Web continues to grow.

    In the early days, web pages were usually created as sets of complete and isolated

    HTML text files stored on a web server. More recently, websites are more oftencreated using content management system (CMS) orwiki software with, initially,

    very little content. Contributors to these systems, who may be paid staff, members

    of a club or other organisation or members of the public, fill underlying databases

    with content using editing pages designed for that purpose, while casual visitors

    view and read this content in its final HTML form. There may or may not be

    editorial, approval and security systems built into the process of taking newly

    entered content and making it available to the target visitors.

    2.2.0 Internet marketing

    Internet marketing, also referred to as web marketing, online marketing, or

    eMarketing, is the marketing of products or services over the Internet.

    http://en.wikipedia.org/wiki/Bloghttp://en.wikipedia.org/wiki/Employeeshttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Angelfirehttp://en.wikipedia.org/wiki/GeoCitieshttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/MySpacehttp://en.wikipedia.org/wiki/Social_network_servicehttp://en.wikipedia.org/wiki/Online_advertisinghttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/HTMLhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Wikihttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Bloghttp://en.wikipedia.org/wiki/Employeeshttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Angelfirehttp://en.wikipedia.org/wiki/GeoCitieshttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/MySpacehttp://en.wikipedia.org/wiki/Social_network_servicehttp://en.wikipedia.org/wiki/Online_advertisinghttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/HTMLhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Wikihttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Internet
  • 8/6/2019 Online Marketing of Electronic Items

    14/34

    The Internet has brought many unique benefits to marketing, one of which being

    lower costs for the distribution of information and media to a global audience.

    The interactive nature of Internet marketing, both in terms of providing instant

    response and eliciting responses, is a unique quality of the medium. Internet

    marketing is sometimes considered to have a broader scope because it refers to

    digital media such as the Internet, e-mail, and wireless media; however, Internet

    marketing also includes management of digital customer data and electronic

    customer relationship management (ECRM) systems.

    Internet marketing ties together creative and technical aspects of the Internet,

    including design, development, advertising, and sales. Internet marketing does not

    simply entail building or promoting a website, nor does it mean placing a bannerad on another website. Effective Internet marketing requires a comprehensive

    strategy that synergizes a given company's business model and sales goals with its

    website function and appearance, focusing on its target market through proper

    choice of advertising type, media, and design.

    Internet marketing also refers to the placement of media along different stages of

    the customer engagement cycle through search engine marketing (SEM), search

    engine optimization (SEO), banner ads on specific websites, e-mail marketing,

    and Web 2.0 strategies. In 2008 The New York Times working with comScore

    published an initial estimate to quantify the user data collected by large Internet-

    based companies. Counting four types of interactions with company websites in

    addition to the hits from advertisements served from advertising networks, the

    authors found the potential for collecting data upward of 2,500 times on average

    per user per month

    Internet marketing and geo marketing places an emphasis on marketing that

    appeals to a specific behaviour or interest, rather than reaching out to a broadly-

    defined demographic. "On- and Off-line" marketers typically segment their

    markets according to age group, gender, geography, and other general factors.

    Marketers have the luxury of targeting by activity and geolocation. For example, a

    http://en.wikipedia.org/wiki/ECRMhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Customer_engagementhttp://en.wikipedia.org/wiki/Search_engine_marketinghttp://en.wikipedia.org/wiki/Search_engine_optimizationhttp://en.wikipedia.org/wiki/Search_engine_optimizationhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/Web_2.0http://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/ComScorehttp://en.wikipedia.org/wiki/Hit_(web_request)http://en.wikipedia.org/wiki/Geo_(marketing)http://en.wikipedia.org/wiki/Geolocationhttp://en.wikipedia.org/wiki/ECRMhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Customer_engagementhttp://en.wikipedia.org/wiki/Search_engine_marketinghttp://en.wikipedia.org/wiki/Search_engine_optimizationhttp://en.wikipedia.org/wiki/Search_engine_optimizationhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/Web_2.0http://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/ComScorehttp://en.wikipedia.org/wiki/Hit_(web_request)http://en.wikipedia.org/wiki/Geo_(marketing)http://en.wikipedia.org/wiki/Geolocation
  • 8/6/2019 Online Marketing of Electronic Items

    15/34

    kayak company can post advertisements on kayaking and canoing websites with

    the full knowledge that the audience has a related interest.

    Internet marketing differs from magazine advertisements, where the goal is to

    appeal to the projected demographic of the periodical. Because the advertiser has

    knowledge of the target audiencepeople who engage in certain activities (e.g.,

    uploading pictures, contributing to blogs) the company does not rely on the

    expectation that a certain group of people will be interested in its new product or

    service.

    Geo targeting (in internet marketing) geo marketing are the methods of

    determining the geolocation (the physical location) of a website visitor with

    geolocation software, and delivering different content to that visitor based on his

    or her location, such as country, region/state, city, metro code/zip code,

    organization, Internet Protocol (IP) address, ISP or other criteria.

    Advantages

    Internet marketing is relatively inexpensive when compared to the ratio of cost

    against the reach of the target audience. Companies can reach a wide audience for

    a small fraction of traditional advertising budgets. The nature of the medium

    allows consumers to research and purchase products and services at their own

    convenience. Therefore, businesses have the advantage of appealing to consumers

    in a medium that can bring results quickly. The strategy and overall effectiveness

    of marketing campaigns depend on business goals and cost-volume-profit (CVP)

    analysis.

    Internet marketers also have the advantage of measuring statistics easily andinexpensively. Nearly all aspects of an Internet marketing campaign can be

    traced, measured, and tested. The advertisers can use a variety of methods: pay

    per impression, pay per click, pay per play, or pay per action. Therefore,

    marketers can determine which messages or offerings are more appealing to the

    audience. The results of campaigns can be measured and tracked immediately

    because online marketing initiatives usually require users to click on an

    http://en.wikipedia.org/wiki/Blogshttp://en.wikipedia.org/wiki/Geo_targetinghttp://en.wikipedia.org/wiki/Geo_(marketing)http://en.wikipedia.org/wiki/Geolocationhttp://en.wikipedia.org/wiki/Geolocation_softwarehttp://en.wikipedia.org/wiki/Web_contenthttp://en.wikipedia.org/wiki/Zip_codehttp://en.wikipedia.org/wiki/Internet_Protocolhttp://en.wikipedia.org/wiki/ISPhttp://en.wikipedia.org/wiki/CVP_analysishttp://en.wikipedia.org/wiki/CVP_analysishttp://en.wikipedia.org/wiki/Pay_per_impressionhttp://en.wikipedia.org/wiki/Pay_per_impressionhttp://en.wikipedia.org/wiki/Pay_per_clickhttp://en.wikipedia.org/wiki/Pay_per_playhttp://en.wikipedia.org/wiki/Pay_per_actionhttp://en.wikipedia.org/wiki/Blogshttp://en.wikipedia.org/wiki/Geo_targetinghttp://en.wikipedia.org/wiki/Geo_(marketing)http://en.wikipedia.org/wiki/Geolocationhttp://en.wikipedia.org/wiki/Geolocation_softwarehttp://en.wikipedia.org/wiki/Web_contenthttp://en.wikipedia.org/wiki/Zip_codehttp://en.wikipedia.org/wiki/Internet_Protocolhttp://en.wikipedia.org/wiki/ISPhttp://en.wikipedia.org/wiki/CVP_analysishttp://en.wikipedia.org/wiki/CVP_analysishttp://en.wikipedia.org/wiki/Pay_per_impressionhttp://en.wikipedia.org/wiki/Pay_per_impressionhttp://en.wikipedia.org/wiki/Pay_per_clickhttp://en.wikipedia.org/wiki/Pay_per_playhttp://en.wikipedia.org/wiki/Pay_per_action
  • 8/6/2019 Online Marketing of Electronic Items

    16/34

    advertisement, visit a website, and perform a targeted action. Such measurement

    cannot be achieved through billboard advertising, where an individual will at best

    be interested, then decide to obtain more information at a later time.

    Internet marketing as of 2007 is growing faster than other types of media.Because

    exposure, response, and overall efficiency of Internet media are easier to track

    than traditional off-line mediathrough the use of web analytics for instance

    Internet marketing can offer a greater sense of accountability for advertisers.

    Marketers and their clients are becoming aware of the need to measure the

    collaborative effects of marketing (i.e., how the Internet affects in-store sales)

    rather than siloing each advertising medium. The effects of multichannel

    marketing can be difficult to determine, but are an important part of ascertainingthe value of media campaigns.

    Limitations

    Internet marketing requires customers to use newer technologies rather than

    traditional media. Low-speed Internet connections are another barrier: If

    companies build large or overly-complicated websites, individuals connected to

    the Internet via dial-up connections ormobile devices may experience significant

    delays in content delivery.

    From the buyer's perspective, the inability of shoppers to touch, smell, taste or

    "try on" tangible goods before making an online purchase can be limiting.

    However, there is an industry standard for e-commerce vendors to reassure

    customers by having liberal return policies as well as providing in-store pick-up

    services.

    A survey of 410 marketing executives listed the following barriers to entry for

    large companies looking to market online: insufficient ability to measure impact,

    lack of internal capability, and difficulty convincing senior management

    http://en.wikipedia.org/wiki/Web_analyticshttp://en.wikipedia.org/wiki/Information_silohttp://en.wikipedia.org/wiki/Multichannel_marketinghttp://en.wikipedia.org/wiki/Multichannel_marketinghttp://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/Mobile_deviceshttp://en.wikipedia.org/wiki/Barriers_to_entryhttp://en.wikipedia.org/wiki/Web_analyticshttp://en.wikipedia.org/wiki/Information_silohttp://en.wikipedia.org/wiki/Multichannel_marketinghttp://en.wikipedia.org/wiki/Multichannel_marketinghttp://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/Mobile_deviceshttp://en.wikipedia.org/wiki/Barriers_to_entry
  • 8/6/2019 Online Marketing of Electronic Items

    17/34

    Security concerns

    Information security is important both to companies and consumers that

    participate in online business. Many consumers are hesitant to purchase items

    over the Internet because they do not trust that their personal information will

    remain private. Encryption is the primary method for implementing privacy

    policies.

    Recently some companies that do business online have been caught giving away

    or selling information about their customers. Several of these companies provide

    guarantees on their websites, claiming that customer information will remain

    private. Some companies that purchase customer information offer the option for

    individuals to have their information removed from the database, also known as

    opting out. However, many customers are unaware if and when their information

    is being shared, and are unable to stop the transfer of their information between

    companies if such activity occurs.

    Another major security concern that consumers have with e-commerce merchants

    is whether or not they will receive exactly what they purchase. Online merchants

    have attempted to address this concern by investing in and building strong

    consumer brands (e.g., Amazon.com, eBay, Overstock.com), and by leveraging

    merchant/feedback rating systems and e-commerce bonding solutions. All of

    these solutions attempt to assure consumers that their transactions will be free of

    problems because the merchants can be trusted to provide reliable products and

    services. Additionally, the major online payment mechanisms (credit cards,

    PayPal, Google Checkout, etc.) have also provided back-end buyer protection

    systems to address problems if they actually do occur. (Sams web site

    02/10/2008 :12:40)

    http://en.wikipedia.org/wiki/Information_securityhttp://en.wikipedia.org/wiki/Encryptionhttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Opting_outhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Overstock.comhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/PayPalhttp://en.wikipedia.org/wiki/Google_Checkouthttp://en.wikipedia.org/wiki/Back-endhttp://en.wikipedia.org/wiki/Information_securityhttp://en.wikipedia.org/wiki/Encryptionhttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Opting_outhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Overstock.comhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/PayPalhttp://en.wikipedia.org/wiki/Google_Checkouthttp://en.wikipedia.org/wiki/Back-end
  • 8/6/2019 Online Marketing of Electronic Items

    18/34

    Chapter three

    Methodology

    3.0 Introduction

    This chapter covers tools used to gather data design and implement an online

    market mechanism proposed system

    3.1 Data collection tools

    This section covers the tools that were used to gather information required in

    implementing the system.

    3.1.0 Observation

    This involved techniques that were used to gathering information from objects

    and situations for example procedures and practices of the existing system.

    3.1.2 Interviews

    This involved a face to face interaction with sturdy population. Interviews were

    normally used in cases where detailed response was need. Using this approach

    questions were asked and answers recorded down. Information gathered using this

    approach included; the operation procedures of the system in use (procedures of

    exchange), information processing problems associated with the system as well as

    the advantages of the existing system.

    3.1.3 Questionnaire

    Questionnaires were mainly used to gather information from the illiterate and

    semi-illiterate. Here the researcher asked questions in the local language and

    recoded down the answers. Where the respondents were literate the researcher left

    behind the questionnaires and picked them after they were completed.

    Information gathered using this method also included problems of the system and

    way forward.

  • 8/6/2019 Online Marketing of Electronic Items

    19/34

    3.1.5 The internet

    This tool was used to gather information mainly about existing computerized

    records systems as well as other peoples views about the subject of online

    marketing

    3.2 Design tools

    These are tools used to design the proposed system. They aided the development

    of the structural design, function design and database design of the proposedsystem. They included the following:

    3.2.1 Data flow diagrams

    The data flow diagrams were used to develop a functional design (detailed design)

    of the system. The functional design is a detailed description of how the system

    performs its role.

    3.2.2 Entity relationship diagrams

    This tool was used to design the structure of the system database

    3.3 Implementation tools

    These are tools that were used in turning the system design into running software.

    These included:

    3.3.0 PHP

    A scripting language used to implement the processing engine of the online

    market (middle tire)

    3.3.1 MYSQL

    A query language used to implement the system database (back tire)

    3.3.2 HTML

    A mark up language used to design the user interface (front tire)

  • 8/6/2019 Online Marketing of Electronic Items

    20/34

    3.5 Study population

    The study population of this system included sales and buyers on second hand

    electronics in shauri yako maket.

    10 Sales and 15 customers were interviewed, sellers were selected purposively

    basing on the type of stoke they hard and customers were selected randomly by

    selecting one customer out of ten customers who bought some thing every after

    10 minutes.

    3.6 Limitations

    the research faced a couple of problems during the project process, these

    included; lark of cooperation from some respondents, Costs which were so high

    and time which was not enough. However with endurance and support from well

    wishers the research was able to maneuver.

  • 8/6/2019 Online Marketing of Electronic Items

    21/34

    Chapter four

    System analysis and design

    4.0 Introduction

    This chapter presents the existing situation and the design of the proposed system

    4.1 System analysis

    This section presents a detailed description of the existing situation.

    4.1.0 Existing situation

    The researcher found out that there are several outlets selling second hand

    electronic items. Most of these items are imported however; there are many local

    people who want to dispose off these items from their homesteads but the

    available outlets cant handle a big stoke due to a narrow market. There are also

    many people who want the second hand items but can not located them.

    4.1.2 Proposed system requirements

    This section presents the user, system, and function requirements of the proposed

    system

    4.1.2.0 User requirements

    This includes what the user want from the system and the essential characteristics

    that a user must posses to effectively work with the system. They include the

    following:

    The system shall trap user errors and report them appropriately

    The system shall present a user interface that is clear, easy to work with and easy

    to learn.

    The system shall allow a user to resume from errors without losing any data

    The system shall respond to user events even during a long processing activity

  • 8/6/2019 Online Marketing of Electronic Items

    22/34

    4.1.2.1 Function requirements

    These are requirements which describe the services offered by this system. They

    include the following:

    The system shall allow members who have the items to register them online

    The system shall allow those who want to buy the items check them out online

    The system shall allow customers to offer a bid for the items of their choice

    The system shall allow the item owner to view a list of customers biding for the

    item.

    The system shall remove items that are taken from the list of items.

    The system shall allow the site admin to change system information

    4.1.2.2 System requirements

    The requirements describe the operation environment of the system. They include

    the following:

    The system shall run under the windows environment

    The system shall work with apache and mysql servers

    The minimum run shall be128 mb, process speed shall 3.0 ghz,

    The system shall run under any internet browser but preferably Netscape

    navigator or internet explorer

    The scripting engine shall be php 4.0 and above

    4.2 System design

    4.2.0 Application design

    This is an illustration of the design of user interface and application programs that

    use and process the data

  • 8/6/2019 Online Marketing of Electronic Items

    23/34

    4.2.1 User interface design

    This illustrates the user interface components and how they are linked to make the

    system work.

    Organisation chart illustrating user interface design

    Main interface

    Admin Item owners Customers

    Register items View bidders Submit bid View report

  • 8/6/2019 Online Marketing of Electronic Items

    24/34

    4.2.2 Transaction design

    This is an illustration of the flow of data and control through system processes /

    functions

    Bid DetailsItem details / bid

    request

    Bid report/confirmation

    Sales decision

    0.0

    Online marketItem owners

    Customers

    Site Admin

    Data updates/

    request for itemdata

    Item Data

    Level 0

    Item details 1.0

    Item

    registration

    1 item data

    Verified Item

    details

    Bid request 1.1

    Bid report

    generation

    2 Bid data

    Did details

    Level 1

  • 8/6/2019 Online Marketing of Electronic Items

    25/34

    Bid details 1.2

    Bid

    registration

    2 Bid data

    Verified Bid

    details

    DecisionDecisionrequest

    1.3

    Sales

    decision

    generator

    3 Decision data

    Decision

    DecisionDecision

    request 1.3

    Item Data

    update

    1 Item data

    Item dataUpdated Item

    data

  • 8/6/2019 Online Marketing of Electronic Items

    26/34

    4.2.3 Database design

    A database design enhances understanding of users perspective of the data;

    nature of the data itself, independent of its physical representations and use ofdata across user views.

    4.2.3.0 Conceptual database design

    It presents a model of the data used in the church, independent of all physical

    considerations. The model was built using the information in users requirements

    specification and it serves as a source of information for logical design phase.

    Entity relationship model illustrating conceptual database design

    4.2.3.1 Physical database design

    1.1

    1 .M

    M .1

    Bid forBid

    Item

    DecisionFor

    On

  • 8/6/2019 Online Marketing of Electronic Items

    27/34

    Its a description of the database implementation based on MYSQL DBMS

    system

    It describes base relations, file organizations, and indexes used to achieve

    efficient access to data. It also describes any associated integrity constraints and

    security measures.

    Item

    Field name Data type Constraint Description

    Item id (pk) int No duplicates

    Owner name Varchar(50) Not Null

    Contacts Varchar(80) Not Null

    Item Description

    Bid

    Field name Data type Constraint Description

    Rec id (pk) Auto_increament (int) No duplicates

    Client name Varchar(30) Not Null

    Contacts Varchar(80) Not Null

    Item id (fk) int Null

    Descision

    Field name Data type Constraint Description

    Rec id (pk) Auto_increament (int) No duplicates

    Bid id (fk) Int Not Null

    Item id (fk) Int Not Null

  • 8/6/2019 Online Marketing of Electronic Items

    28/34

    Chapter five

    Summary and recommendation

    5.0 Introduction

    The chapter presents a summary of the project it indicates what was achieved and

    what was not achieved it also recommend related areas that require further

    investigations.

    5.1 Summary/Conclusion

    The researcher managed to accomplish the project objectives as stated in chapter

    one. Using SQL the researcher was in position to implement an electronic

    database, this database supports data capturing storing and retrieval, it enforces

    data security and integrity. The database is maintained by Mysql database

    management system but it can import and export data to and from other database

    management system.

    Using HTML the research was able to implement a well linked site navigation

    system and the researcher guarantees that no user can get lost in the process of

    shopping.

    The researcher implemented a search engine which makes information retrieval

    much easier. Customers can use the search engine to look for different types of

    items as they make their selection. The search engine takes on an item category

    and returns all items under that category.

  • 8/6/2019 Online Marketing of Electronic Items

    29/34

    5.2 Limitations

    The researcher was a novice to the php language and this affected the quality of

    the product but if the researcher had ample time to perfect the php language

    quality would have been standard

    The researcher had no access to internet servers and there four tested the product

    using local network hence the product was not sufficiently tested to the

    researchers expectation.

    5.3 Recommendation

    Basing on the limitations above the researcher recommends further investigations

    in the following areas:

    Implementing an e-mail system to deliver feedback to customers

  • 8/6/2019 Online Marketing of Electronic Items

    30/34

    References

    1. Louis and Comscore 2007,forecasting customer future needs and demand

    new times magazine2. Lan morea 2002Direct marketing, a contemporary approach to medieval

    business systems

    3. David land 2008 Internet trends since development

    4. Lan Morea 2006Affiliate marketing an internet bases marketing practice

    Lincoln Press publishers

    5. Mark Louis 2008 Unique benefits of internet to marketing Acclaim

    publishers us borough

    6. The New York Times 2008 internet marketing a broad base strategy for

    international marketing

    7. Clarace 2005 the world wide web and the development of ecomerce,

    preintice press New York

    8. Business week2006 voice mailling as a form of direct marking, benefits

    and challenges. Lincon publishers

    9. David James 2006 critisim agains direct marketing machanism a

    contemporary anaysis of business stratagies New York publishers

    10. Spartan Internet Consulting 2006 un solisted commercial comunication

    with consumers and business, the New York times

    http://en.wikipedia.org/wiki/The_New_York_Timeshttp://www.businessweek.com/technology/content/dec2006/tc20061207_485162.htmhttp://spartaninternet.com/2008/news.asp?id=9http://en.wikipedia.org/wiki/The_New_York_Timeshttp://www.businessweek.com/technology/content/dec2006/tc20061207_485162.htmhttp://spartaninternet.com/2008/news.asp?id=9
  • 8/6/2019 Online Marketing of Electronic Items

    31/34

    Apendix a

  • 8/6/2019 Online Marketing of Electronic Items

    32/34

  • 8/6/2019 Online Marketing of Electronic Items

    33/34

  • 8/6/2019 Online Marketing of Electronic Items

    34/34