online marketing of electronic items
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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 -
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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)
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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
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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.
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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
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"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,
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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
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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
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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)
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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
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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
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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.
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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.
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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
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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
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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
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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)
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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.
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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)
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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 -
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Apendix a
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