Online Good and Services Topic 4

Online Good and Services Topic 4

1. Internet Advertising

   • Personal techniques
     • they are used in target marketing by making advertising relevant to a particular customers using their personal information
     • they aim to persuade the customer to buy related products
     • for example, personalised emails such as special occasion reminders may be sent to your email address.
     • recommendations based on your browsing history and recently purchased items.
   • targeted marking
     • to avoid it you can opt out of sharing your personal information with organisations when creating an account, delete cookies and be careful with the personal information you add to online profiles.
     • its about concentrating online advertising on the groups of customers who are most likely to buy a product.
     • it works by organisations collecting and combining online data from cookies that are used to store your browsing history, transactional data, social networking sites and personal information's from online profiles.
     • the organisations then query that data to send adverts just to those users whose age, gender, interests or previous purchases suggest they might buy a particular product.
   • viral marketing
     • viral marketing is when an organisation creates interesting and entertaining content that makes people want to 'pass it on' to their friends using social networking, emails and texts.
     • it is used because the content 'goes viral' then it 'spreads' very quickly, it is also cheep because organisations do not have to pay and memorable content means people will remember the brand name.
   • advantages of internet advertising: it reaches a wide range of customers and does this much faster than traditional advertising, it is also cheaper than traditional advertising for example TV advertising, it can be targeted at particular customers and statistics can be gathered
   • internet advertising uses search engines as advertising is displayed when customers use keywords
     • for example Google adwords the advertising company only pays Google when people click on their adverts, this is called 'cost per click'
     • the key words have to be carefully chosen and the advert careful worded to make people want to click on it
   • social networking
     • many social networking sites use the information they know about users to target adverts at particular users.
     • organisations pay Facebook to display adverts on particular users pages
     • face book with more than 800 million users can select customers by location, age and interests.

2. How and why organisations operate online

   • a website or online shop is the way on which organisations operate online. customers should be able to find information as well as buy the goods or services.
   • there are benefits to both the customer and the organisation
   • advantages: no need to distribute goods to shops, easy to make changes to products and prices, customers only need a web browser, internet connection and a payment method. it is also an inexpensive way to reach new markets, minimal start up time and investment needed as it can be set up from home and can be located wherever it likes.
   • disadvantages: staff needed to develop and run an efficient website, ensuring online payment security is difficult, need a delivery service and the facilities to handle returns. Also customers are limited to those with internet access and those who can pay electronically and finally if the retailer ahs high street shops as well they may find there shops suffer and have to shut down because they can not compare with the online shop.

3. Online Gaming

   • online gaming enables players to connect via the internet and interact with each other.
   • a central server runs the game software and streams each players positions and actions over the internet
   • players need a high bandwidth low latency internet connection to avoid lag when gaming
   • players select a game a create an account then interact with each other or a computer opponent
   • some games store data graphics and sound locally on players computers.
   • streaming
     • users select entertainment, users presses play, program is continually sent over from a server and streamed over the internet, player buffers store some data in case of delays and the program plays. (eg iplayer) (internet connection needed)
   • downloading
     • users select entertainment, users download the entire file from a server to their computer (needs internet) user presses play and the program plays (doesn't need internet)

4. online education, news and banking.

   • online education
     • students creates online accounts and selects there subjects. teaching materials is provided on a website, assignments submitted and returned electronically
     • features include interactive teaching material, communities of students interacting, provides personal learning and students work from home.
   • information services (news)
     • News reports are written by newspapers, they are available online for users to access or select using RSS feeds.
     • features include that its easy to search through news, the news is up to date and available world wide. its also presented in text and has images, users can add comments and finally users can subscribe to content.
   • Banking
     • users create a secure online account, Money can be transferred electronically and payments can be made electronically.
     • features are that you can view all transactions, pay pills online and create new bank accounts. it also allows secure access provided, offers promotions to online customers and view up to date account details.