chapter 6 : E-commerce marketing and advertising

transaction log

records user activity at a website

cookie

is a small text file placed on the user’s client computer that can contain any kind of information about the customer, such as customer ID, campaign ID, or purchases at the site.

Hadoop

a software framework for working with various big data sets

bundling

offers consumers two or more goods for a reduced price

versioning

creating multiple versions of information goods and selling essentially the same product to different market segments at different prices

behavioral targeting

involves using online and offline behavior of consumers to adjust the advertising messages delivered to them online

interest-based advertising (IBA) another name for behavioral targeting

another name for behavioral targeting

CAN-SPAM Act

mechanism for civil and regulatory lawsuits against spammers, creates several new criminal offenses intended to address situations in which the perpetrator has taken steps to hide his or her identity or the source of the spam from recipients, ISPs, or law enforcement agencies. Also contains criminal sanctions for sending sexually explicit e-mail without designating it as such.

five main elements of a comprehensive multi-channel marketing plan are:

website, traditional online marketing, social marketing, mobile marketing, and offline marketing.

Website

platform : Traditional website

example: Ford.com

function: Anchor site

Traditional Online Marketing

platform: Search engine marketing

example: Google; Bing; Yahoo

function: Query-based intention marketing

impressions

number of times an ad is served

click-through rate (CTR)

percentage of people exposed to an online advertisement who actually click on the banner

view-through rate (VTR)

measures the 30-day response rate to an ad

hits

number of HTTP requests received by a firm’s server

stickiness (duration)

average length of time visitors remain at a site

Web beacons

tiny (1-pixel) graphic files embedded in e-mail messages and on websites, automatically transmit information about the user and the page being viewed to a monitoring server in order to collect personal browsing behavior and other personal information.

structured query language (SQL)

industry-standard database query language used in relational databases

customer relationship management (CRM) system

a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to “know the customer”

marginal costs

the incremental cost of producing the next unit