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Glossary
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z Above the fold A term, derived from printed media, which is used to indicate whether a banner advertisement or other content is displayed on a web page without the need to scroll. This is likely to give higher clickthrough, but note that the location of the ‘fold’ within the web browser is dependent on the screen resolution of a user’s personal computer. Access platform A method for customers to access digital media. Access provider A company providing services to enable a company or individual to access the Internet. Access providers are divided into Internet service providers (ISPs) and online service providers (OSPs). Acquisition See Customer acquisition. Active Server Page (ASP) A type of HTML page (denoted by an .asp file name) that includes scripts (small programs) that are processed on a web server before the web page is served to the user’s web browser. ASP is a Microsoft technology that usually runs on a Microsoft Internet Information Server (usually on Windows NT). The main use of such programs is to process information supplied by the user in an online form. A query may then be run to provide specific information to the customer such as delivery status on an order, or a personalised web page. ActiveX A programming language standard developed by Microsoft, which permits complex and graphical customer applications to be written and then accessed from a web browser. ActiveX components are standard controls that can be incorporated into web sites and are then automatically downloaded for users. Examples are graphics and animation or a calculator form for calculating interest on a loan or a control for graphing stock prices. A competitor to Java. Ad creative The design and content of an ad. Ad impression Similar in concept to a page impression; describes one viewing of an advertisement by a single member of its audience. The same as ad view, a term that is less commonly used. Ad inventory The total number of ad impressions that a web site can sell over time (usually specified per month). Ad rotation When advertisements are changed on a web site for different user sessions. This may be in response to ad targeting or simply displaying different advertisements from those on a list. Ad serving The term for displaying an advertisement on a web site. Often the advertisement will be served from a different web server from the site on which it is placed. For example, the URL for displaying the advertisement is http://ad.doubleclick.net. Ad space The area of a web page that is set aside for banner advertising. Ad view Similar in concept to a page impression; describes one viewing of an advertisement by a single member of its audience. The same as ad impression, the term that is more commonly used. Advertisement Advertisements on web sites are usually banner advertisements positioned as a masthead on the page. Advertising broker See Media broker. Advertising networks A collection of independent web sites of different companies and media networks, each of which has an arrangement with a single advertising broker (see Media broker) to place banner advertisements. Affiliate networks A reciprocal arrangement between a company and third-party sites where traffic is directed to the company from third-party sites through banner advertisements and links and incentives. In return for linking to the destination site the third-party site will typically receive a proportion of any resulting sale. Agents Software programs that can assist people to perform tasks such as finding particular information such as the best price for a product. Aggregated buying A form of customer union where buyers collectively purchase a number of items at the same price and receive a volume discount. Analysis phase The identification of the requirements of a web site. Techniques to achieve this may include focus groups, questionnaires sent with existing customers or interviews with key accounts. Animated banner advertisements (animated GIFs) Early banner advertisements featured only a single advertisement, but today they will typically involve several different images, which are displayed in sequence to help to attract attention to the banner and build up a theme, often ending with a call to action and the injunction to click on the banner. These advertisements are achieved through supplying the ad creative as an animated GIF file with different layers or frames, usually a rectangle of 468 by 60 pixels. Animated banner advertisements are an example of rich media advertisements. Announcements See Site announcements. Archie A database containing information on what documents and programs are located on FTP servers. It would not be used in a marketing context unless one were looking for a specific piece of software or document name. Asymmetric encryption Both parties use a related but different key to encode and decode messages. Attrition rate Percentage of site visitors that are lost at each stage in making a purchase. Audit (external) Consideration of the business and economic environment in which the company operates. This includes the economic, political, fiscal, legal, social, cultural and technological factors (usually referred to by the acronym STEP). Audit (internal) A review of web site effectiveness. Auditors See Site auditors. Authentication See Security methods. Autoresponders Software tools or agents running on web servers, which automatically send a standard reply to the sender of an e-mail message. This may provide information to a standard request sent to, say, price_list@company_name.com, or it could simply state that the message or order has been forwarded to the relevant person and will be answered within two days. (Also known as mailbots.) Availability See Security methods; Site availability. Avatar A term used in computer-mediated environments to mean a ‘virtual person’. Derived from the word’s original meaning: ‘n. the descendant of a Hindu deity in a visible form; incarnation; supreme glorification of any principle’. Backbones High-speed communications links used to enable Internet communications across a country and internationally. Bandwidth Indicates the speed at which data are transferred using a particular network medium. It is measured in bits per second (bps). kbps (one kilobit per second or 1000 bps; a modem operates at up to 56.6 kbps). Mbps (one megabit per second or 1 000 000 bps; company networks operate at 10 or more Mbps). Gbps (one gigabit per second or 1 000 000 000 bps; fibre-optic or satellite links operate at Gbps). Banner advertisement A typically rectangular graphic displayed on a web page for purposes of brand building or driving traffic to a site. It is normally possible to perform a clickthrough to access further information from another web site. Banners may be static or animated (see Animated banner advertisements). Behavioural traits of web users Web users can be broadly divided into directed and undirected information seekers. Bid A commitment by a trader to purchase under certain conditions. Brand The sum of the characteristics of a product or service perceived by a user. Brand equity The brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a service. Brand identity The totality of brand associations including name and symbols that must be communicated. Branding The process of creating and evolving successful brands. Bricks and mortar A traditional organisation with limited online presence. Broadband technology A term referring to methods of delivering information across the Internet at a higher rate by increasing bandwidth. Brochureware A web site in which a company has simply transferred (‘migrated’) its existing paper-based promotional literature on to the Internet without recognising the differences required by this medium. Broker See Media broker. Browser See Web browser. Business model A summary of how a company will generate revenue, identifying its product offering, value-added services, revenue sources and target customers. Business-to-business (B2B) Commercial transactions between an organisation and other organisations (inter-organisational marketing). Business-to-business exchanges or marketplaces Virtual intermediaries with facilities to enable trading between buyers and sellers. Business-to-consumer (B2C) Commercial transactions between an organisation and consumers. Buy-side e-commerce E-commerce transactions between a purchasing organisation and its suppliers.
Call centre A location for inbound and outbound telemarketing. Callback service A direct response facility available on a web site to enable a company to contact a customer by phone at a later time as specified by the customer. Catalogue
Catalogues provide
a structured listing of registered
web sites in different categories. They are
similar to an electronic version of Yellow Pages. Yahoo! and Excite
are the best known examples of catalogues. (Also known as directories.)
Certificate A valid copy of a public key of an individual or organisation together with identification information. It is issued by a trusted third party (TTP) or certification authority (CA). Certification authority (CA) An organisation issuing and managing certificates or public keys and private keys to individuals or organisations together with identification information. Channel behaviour Describes which content is visited and the time and duration. Channel conflicts A significant threat arising from the introduction of an Internet channel is that while disintermediation gives the opportunity for a company to sell direct and increase the profitability of products it can also threaten existing distribution arrangements with existing partners. Channel outcomes Records customer actions taken as a consequence of a visit to a site. Channel profitability The profitability of the web site, taking into account revenue and cost and discounted cash flow. Channel promotion Measures assess why customers visit a site – which adverts have they seen, which sites have they been referred from. Channel satisfaction Evaluation of the customer’s opinion of the service quality on the site and supporting services such as e-mail. ‘Clicks and mortar’ A business combining online and offline presence. Clicks-only or Internet pureplay An organisation with principally an online presence. Click-stream A record of the path a user takes through a web site. Click-streams enable web site designers to assess how their site is being used. Clickthrough A clickthrough (ad click) occurs each time a user clicks on a banner advertisement with the mouse to direct them to a web page that contains further information. Clickthrough rate Expressed as a percentage of total ad impressions, and refers to the proportion of users viewing an advertisement who click on it. It is calculated as the number of clickthroughs divided by the number of ad impressions. Click-tracking Java technology can be used to track movements of individual users to a web site. Client–server The client–server architecture consists of client computers such as PCs sharing resources such as a database stored on a more powerful server computer. Co-branding An arrangement between two or more companies where they agree to jointly display content and perform joint promotion using brand logos or banner advertisements. The aim is that the brands are strengthened if they are seen as complementary. This is a reciprocal arrangement, which can occur without payment. Collaborative filtering Profiling of customer interest coupled with delivery of specific information and offers, often based on the interests of similar customers. Commoditisation The process whereby product selection becomes more dependent on price than differentiating features, benefits and value-added services. Common Gateway Interface (CGI) A method of processing information on a web server in response to a customer’s request. Typically a user will fill in a Web-based form and the results will be processed by a CGI script (application). Active Server Pages (ASP) are an alternative to a CGI script. Competitive intelligence (CI) A process that transforms disaggregated information into relevant, accurate and usable strategic knowledge about competitors, position, performance, capabilities and intentions. Competitor analysis Review of Internet marketing services offered by existing and new competitors and adoption by their customers. Computer telephony integration The integration of telephony and computing to provide a platform for applications that streamline or enhance business processes. Confidentiality See Security methods. Consumer-to-business (C2B) Consumers approach the business with an offer. Consumer-to-consumer (C2C) Informational or financial transactions between consumers, but usually mediated through a business site. Content Content is the design, text and graphical information that forms a web page. Good content is the key to attracting customers to a web site and retaining their interest or achieving repeat visits. Content management Software tools for managing additions and amendments to web site content. Convergence A trend in which different hardware devices such as televisions, computers and telephones merge and have similar functions. Conversion marketing Using marketing communications to maximise conversion of potential customers to actual customers. Conversion rate Proportion of visitors to a site, or viewers of an advert, who take an action. Cookies Cookies are small text files stored on an end-user’s computer to enable web sites to identify the user. They enable a company to identify a previous visitor to a site, and build up a profile of that visitor’s behaviour. Core product The fundamental features of the product that meet the users’ needs. Core tenants A shopping centre or mall is usually a centrally owned managed facility. In the physical world, the management will aim to include in the mall stores that sell a different but complementary range of merchandise and include a variety of smaller and larger stores. The core tenants or ‘anchor stores’ as they are often called are the dominant large-scale store operators that are expected to draw customers to the centre. Cost models for Internet advertising These include per-exposure, per-response and per-action costs. Cost per mille (CPM) Cost per 1000 ad impressions. Cost per targeted mille (CPTM) Cost per targeted thousand for an advertisement. (See also Targeting.) Countermediation Creation of a new intermediary by an established company. Customer acquisition Techniques used to gain new customers. Customer extension Techniques to encourage customers to increase their involvement with an organisation. Customer lifecycle The stages each customer will pass through in a long-term relationship through acquisition, retention and extension. Customer orientation Providing content and services on a web site consistent with the different characteristics of the audience of the site. Customer profiling Using the web site to find out customers’ specific interests and characteristics. Customer relationship management (CRM) A marketing-led approach to building and sustaining long-term business with customers. Customer retention Techniques to maintain relationships with existing customers. Customer selection Identifying key customer segments and targeting them for relationship building. Cybermediaries Intermediaries who bring together buyers and sellers or those with particular information or service needs. Cyberspace and cybermarketing These terms were preferred by science-fiction writers and tabloid writers to indicate the futuristic nature of using the Internet, the prefix ‘cyber’ indicating a blurring between humans, machines and communications. The terms are not frequently used today since the terms Internet, intranet and World Wide Web are more specific and widely used.
Data fusion The combining of data from different complementary sources (usually geodemographic and lifestyle or market research and lifestyle) to ‘build a picture of someone’s life’ (M. Evans (1998) From 1086 to 1984: direct marketing into the millennium, Marketing Intelligence and Planning, 16(1), 56–67). Data warehousing and data mining Extracting data from legacy systems and other resources; cleaning, scrubbing and preparing data for decision support; maintaining data in appropriate data stores; accessing and analysing data using a variety of end-user tools; and mining data for significant relationships. The primary purpose of these efforts is to provide easy access to specially prepared data that can be used with decision support applications such as management reports, queries, decision support systems, executive information systems and data mining. Database marketing The process of systematically collecting, in electronic or optical form, data about past, current and/or potential customers, maintaining the integrity of the data by continually monitoring customer purchases, by enquiring about changing status, and by using the data to formulate marketing strategy and foster personalised relationships with customers. Decryption The process of decoding (unscrambling) a message that has been encrypted using defined mathematical rules. Deep linking Jakob Nielsen’s term for a user arriving at a site deep within its structure or where search engines index a mirrored copy of content normally inaccessible by search engine spiders. Demand analysis for e-commerce Assessment of the demand for e-commerce services amongst existing and potential customer segments using the ratio Access : Choose : Buy online. Demographic characteristics Variations in attributes of the populations such as age, sex and social class. Design phase (of site construction) The design phase defines how the site will work in the key areas of web site structure, navigation and security. Destination site Frequently used to refer to the site that is visited following a clickthrough on a banner advertisement. Could also apply to any site visited following a click on a hyperlink. Destination store A retail store in which the merchandise, selection, presentation, pricing or other unique features act as a magnet for the customer. Development phase (of site construction) ‘Development’ is the term used to describe the creation of a web site by programmers. It involves writing the HTML content, creating graphics, writing any necessary software code such as JavaScript or ActiveX (programming). Differential advantage A desirable attribute of a product offering that is not currently matched by competitor offerings. Differential pricing Identical products are priced differently for different types of customers, markets or buying situations. Digital brand A digital brand is a brand identity used for a product or company online that differs from the traditional brand. (Also known as an online brand.) Digital cash An electronic version of cash in which the buyer of an item is typically anonymous to the seller. (Also referred to as virtual or electronic cash or e-cash.) Digital certificates (keys) A method of ensuring privacy on the Internet. Certificates consist of keys made up of large numbers that are used to uniquely identify individuals. See also Public key. Digital signatures The electronic equivalent of written signatures which are used as an online method of identifying individuals or companies using public-key encryption. Digital television Information is received and displayed on a digital television using binary information (0s and 1s), giving options for better picture and sound quality and providing additional information services based on interactivity. See also Interactive digital TV. Direct marketing Marketing to customers using one or more advertising media aimed at achieving measurable response and/or transaction. Direct response Usually achieved in an Internet marketing context by callback services. Directed information seeker Someone who knows what information he or she is looking for. Directories Directory web sites provide a structured listing of registered web sites in different categories. They are similar to an electronic version of Yellow Pages. Yahoo! and Excite are the best known examples of directories. (Also known as catalogues.) Disintermediation The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers. In particular, disintermediation enables a company to sell direct to the customer by cutting out the middleman. Disruptive technologies New technologies that prompt businesses to reappraise their strategic approaches. Domain name The web address that identifies a web server. See Domain name system. Domain name registration The process of reserving a unique web address that can be used to refer to the company web site. Domain name system The domain name system (DNS) provides a method of representing Internet Protocol (IP) addresses as text-based names. These are used as web addresses. For example, www.microsoft.com is the representation of site 207.68.156.58. Domain names are divided into the following categories:
Doorway pages Specially constructed pages which feature keywords for particular product searches. These often redirect visitors to a home page. Download The process of retrieving electronic information such as a web page or e-mail from another remote location such as a web server. Drip irrigation Collecting information about customer needs through their lifetime. Dynamic pricing Prices can be updated in real time according to the type of customer or current market conditions. Dynamic web page A page that is created in real time, often with reference to a database query, in response to a user request. Early adopters Companies or departments that invest in new marketing techniques and technologies when they first become available in an attempt to gain a competitive advantage despite the higher risk entailed than that involved in a more cautious approach. Early (first) mover advantage An early entrant into the marketplace has this advantage. E-business See Electronic business. E-cash See Digital cash. E-commerce See Electronic commerce. Effective frequency The number of exposures or ad impressions (frequency) required for an advertisement to become effective. E-government The use of Internet technologies to provide government services to citizens. Electronic business (e-business) All electronically mediated information exchanges, both within an organisation and with external stakeholders supporting the range of business processes. Electronic cash See Digital cash. Electronic commerce (e-commerce) All financial and informational electronically mediated exchanges between an organisation and its external stakeholders. (See Buy-side e-commerce and Sell-side e-commerce.) Electronic commerce transactions Transactions in the trading of goods and services conducted using the Internet and other digital media. Electronic data interchange (EDI) The exchange, using digital media, of standardised business documents such as purchase orders and invoices between buyers and sellers. Electronic mail (e-mail) Sending messages or documents, such as news about a new product or sales promotion between individuals. A primitive form of push channel. E-mail may be inbound or outbound. Electronic mail advertising Advertisements contained within e-mail such as newsletters. Electronic mall See Virtual mall. Electronic marketing Achieving marketing objectives through use of electronic communications technology. Electronic marketspace A virtual marketplace such as the Internet in which no direct contact occurs between buyers and sellers. Electronic Shopping or ES test This test was developed by de Kare-Silver to assess the extent to which consumers are likely to purchase a particular retail product using the Internet. (See EShock.) Electronic tokens Units of digital currency that are in a standard electronic format. E-marketing See Electronic marketing. Emergent strategy Strategic analysis, strategic development and strategy implementation are interrelated and are developed together. Encryption The scrambling of information into a form that cannot be interpreted. Decryption is used to make the information readable. Enterprise application integration The middleware technology that is used to connect together different software applications and their underlying databases is now known as ‘enterprise application integration (EAI)’ (Internet World, 1999). Entry page The page at which a visitor enters a web site. It is identified by a log file analyser. See also Exit page and Referring site. Environmental scanning and analysis The process of continuously monitoring the environment and events and responding accordingly. EShock Michael de Kare-Silver speculates in his 1998 book of this name (Basingstoke, UK: Macmillan) that by 2005–7 consumers using the Internet as their preferred method of making purchases will account for 15–20 per cent of total purchases. This will lead to ever-decreasing margins for retailers, who will be forced to close substantial parts of their retail networks. Evaluating a web site See Web site measurement. Exchange See Business-to-business exchanges or marketplaces. Exit page The page from which a visitor exits a web site. It is identified by a log file analyser. Exposure-based payment Advertisers pay according to the number of times the ad is viewed. Extended product Additional features and benefits beyond the core product. Extension See Customer extension. Extranet An extranet is formed by extending the intranet beyond a company to customers, suppliers, collaborators or even competitors. This is password-protected to prevent access by general Internet users. File Transfer Protocol (FTP) A standard method for moving files across the Internet. FTP is available as a feature of web browsers that is sometimes used for marketing applications such as downloading files such as product price lists or specifications. Standalone FTP packages such as WSFTP are commonly used to update HTML files on web servers when uploading revisions to the web server. Firewall A specialised software application mounted on a server at the point where the company is connected to the Internet. Its purpose is to prevent unauthorised access into the company by outsiders. Firewalls are essential for all companies hosting their own web server. Flow Describes a state in which users have a positive experience from readily controlling their navigation and interaction on a web site. Focus groups Online focus groups have been conducted by w3focus.com. These follow a bulletin board or discussion group form where different members of the focus group respond to prompts from the focus group leaders. Form A method on a web page of entering information such as order details. Forward auctions Item purchased by highest bid made in bidding period. Frame A technique used to divide a web page into different parts such as a menu and separate content.
Global (or generic) top-level domain names (gLTD) The part of the domain name that refers to the category of site. The gLTD is usually the rightmost part of the domain name such as .co.uk or .com. Globalisation The increase of international trading and shared social and cultural values. Gopher Gopher is a directory-based structure containing information in certain categories. Graphic design All factors that govern the physical appearance of a web page. Graphics Interchange Format (GIF) GIF is a graphic format used to display images within web pages. An interlaced GIF is displayed gradually on the screen, building up an image in several passes.
Hit A hit is recorded for each graphic or block of text requested from a web server. It is not a reliable measure for the number of people viewing a page. A page impression is a more reliable measure denoting one person viewing one page. Home page The index page of a web site with menu options or links to other resources on the site. Usually denoted by <web address>/index.htm. House list A list of prospect and customer names, e-mail addresses and profile information owned by an organisation. HTML (Hypertext Markup Language) A standard format used to define the text and layout of web pages. HTML files usually have the extension .HTML or .HTM. HTTP (Hypertext Transfer Protocol) A standard that defines the way information is transmitted across the Internet. Hyperlink A method of moving between one web site page and another, indicated to the user by text highlighted by underlining and/or a different colour. Hyperlinks can also be achieved by clicking on a graphic image such as a banner advertisement that is linked to another web site. Inbound e-mail E-mail arriving at a company. Inbound customer contact strategies Approaches to managing the cost and quality of service related to management of customer enquiries. Incidental offline advertising Driving traffic to the web site is not a primary objective of the advert. Infomediary An intermediary business whose main source of revenue derives from capturing consumer information and developing detailed profiles of individual customers for use by third parties. Information organisation schemes The structure chosen to group and categorise information. Initiation of web site project This phase of the project should involve a structured review of the costs and benefits of developing a web site (or making a major revision to an existing web site). A successful outcome to initiation will be a decision to proceed with the site development phase, with an agreed budget and target completion date. Insertion order A printed order to run an advertisement campaign. It defines the campaign name, the web site receiving the order and the planner or buyer giving the order, the individual advertisements to be run (or who will provide them), the sizes of the advertisements, the campaign beginning and end dates, the CPM, the total cost, discounts to be applied, and reporting requirements and possible penalties or stipulations relative to the failure to deliver the impressions. Integrity See Security methods. Interactive banner advertisement A banner advertisement that enables the user to enter information. Interactive digital TV (iDTV) Television displayed using a digital signal delivered by a range of media – cable, satellite, terrestrial (aerial). Interactions can be provided through phone line or cable service. Interactivity The medium enables a dialogue between company and customer. Intermediaries Online sites that help bring together different parties such as buyers and sellers. Interruption marketing Marketing communications that disrupt customers’ activities. Internet The physical network that links computers across the globe. It consists of the infrastructure of network servers and communication links between them, which are used to hold and transport the vast amount of information on the Internet. The Internet enables transfer of messages and transactions between connected computers worldwide. Internet contribution An assessment of the extent to which the Internet contributes to sales is a key measure of the importance of the Internet to a company. Internet EDI Use of electronic data interchange standards delivered across non-proprietary Internet Protocol networks. Internet governance Control of the operation and use of the Internet. Internet marketing The application of the Internet and related digital technologies to achieve marketing objectives. Internet marketing metrics See Metrics for Internet marketing. Internet marketing strategy Definition of the approach by which Internet marketing will support marketing and business objectives. Internet pureplay An organisation with the majority of its customer-facing operations online, e.g. Egg. Internet Relay Chat (IRC) A communications tool that allows a text-based ‘chat’ between different users who are logged on at the same time. Of limited use for marketing purposes except for special-interest or youth products. Internet service providers (ISPs) Companies that provide home or business users with a connection to access the Internet. They can also host web sites or provide a link from web servers to enable other companies and consumers access to a corporate web site. Interstitial ads Ads that appear between one page and the next. Intranet A network within a single company that enables access to company information using the familiar tools of the Internet such as web browsers and e-mail. Only staff within a company can access the intranet, which will be password-protected. Java A programming language standard supported by Sun Microsystems, which permits complex and graphical customer applications to be written and then accessed from a web browser. An example might be a form for calculating interest on a loan. A competitor to ActiveX. Joint Photographic Experts Group (JPEG) A compressed graphics standard specified by the JPEG. Used for graphic images typically requiring use of many colours, such as product photographs where some loss of quality is acceptable. The format allows for some degradation in image quality to enable more rapid download.
Lead Details about a potential customer (prospect). (See Qualified lead.) Lead generation offers Offered in return for customers providing their contact details and characteristics. Commonly used in B2B marketing where free information such as a report or a seminar will be offered. List broker Will cource the appropriate e-mail list(s) from the list owner. List owner Has collected e-mail addresses which are offered for sale. Live web site Current site accessible to customers, as distinct from test web site. Localisation Designing the content of the web site in such a way that it is appropriate to different audiences in different countries. Log file A file stored on a web server that records every item downloaded by users. Log file analysers Tools that are used to build a picture of the amount of usage of different parts of a web site based on the information contained in the log file. Loyalty techniques Customers sign up to an incentive scheme where they receive points for repeat purchases, which can be converted into offers such as discounts, free products or cash. (Also known as online incentive schemes.) Mailbots See Autoresponders. Maintenance process The work involved in running a live web site such as updating pages and checking the performance of the site. Marketing mix The series of seven key variables (Product, Price, Place, Promotion, People, Process and Physical evidence) that are varied by marketers as part of the customer offering. Marketplace See Business-to-business exchanges or marketplaces. Marketspace A virtual marketplace such as the Internet in which no direct contact occurs between buyers and sellers. (Also known as electronic marketspace.) Markup language See HTML, XML. Mass customisation The ability to create tailored marketing messages or products for individual customers or a group of similar customers (a bespoke service), yet retain the economies of scale and the capacity of mass marketing or production. Mass marketing One-to-many communication between a company and potential customers with limited tailoring of the message. Measurement See Web site measurement. Media broker A company that places advertisements for companies wishing to advertise by contacting the media owners. Media buyer The person within a company wishing to advertise who places the advertisement, usually via a media broker. Media owners The owners of web sites (or other media such as newspapers) that accept advertisements. Metadata Literally, data about data – a format describing the structure and content of data. Meta search engines Meta search engines submit keywords typed by users to a range of search engines in order to increase the number of relevant pages since different search engines may have indexed different sites. An example is the metacrawler search engine or www.mamma.com. Meta tags Text within an HTML file summarising the content of the site (content meta tag) and relevant keywords (keyword meta tag), which are matched against the keywords typed into search engines. Metrics for Internet marketing Measures that indicate the effectiveness of Internet marketing activities in meeting customer, business and marketing objectives. Micropayments (microtransactions) Digital cash systems that allow very small sums of money (fractions of 1p) to be transferred, but with lower security. Such small sums do not warrant a credit card payment, because processing is too costly. Microsite Specialised content that is part of a web site that is not necessarily owned by the organisation. If owned by the company it may be as part of an extranet. (See also Nested ad content.) Microsoft Internet Information Server (IIS) Microsoft IIS is a web server developed by Microsoft that runs on Windows NT. Mixed-mode buying The process by which a customer changes between online and offline channels during the buying process. Navigation The method of finding and moving between different information and pages on a web site. It is governed by menu arrangements, site structure and the layout of individual pages. Nested ad content This refers to the situation when the person undertaking the clickthrough is not redirected to a corporate or brand site, but is instead taken to a related page on the same site as that on which the advertisement is placed. (Sometimes referred to as microsite.) Non-repudiability See Security methods.
Offer An incentive in direct marketing or a product offering. Offline promotion See Promotion (online and offline). Offline web metric Offline measures are those that are collated by marketing staff recording particular marketing outcomes such as an enquiry or a sale. They are usually collated manually, but could be collated automatically. One-to-one marketing A unique dialogue that occurs directly between a company and individual customers (or less strictly with groups of customers with similar needs). The dialogue involves a company in listening to customer needs and responding with services to meet these needs. Online brand See Digital brand. Online incentive schemes See Loyalty techniques. Online promotion See Promotion (online and offline). Online promotion contribution An assessment of the proportion of customers (new or retained) who are reached by online communications and are influenced as a result. Online revenue contribution An assessment of the direct contribution of the Internet or other digital media to sales, usually expressed as a percentage of overall sales revenue. Online service providers (OSPs) An OSP is sometimes used to distinguish large Internet service providers (ISPs) from other access providers. In the UK, AOL, Freeserve, VirginNet and LineOne can be considered OSPs since they have a large amount of specially developed content available to their subscribers. Note that this term is not used as frequently as ISP, and the distinction between ISPs and OSPs is a blurred one since all OSPs are also ISPs and the distinction only occurs according to the amount of premium content (only available to customers) offered as part of the service. Online service quality gap The mismatch between what is expected and delivered by an online presence. Online value proposition (OVP) A statement of the benefits of e-commerce services that ideally should not be available in competitor offerings or offline offerings. Online web metrics Online measures are those that are collected automatically on the web server, often in a server log file. Operational effectiveness Performing similar activities better than rivals. This includes efficiency of processes. Opt-in e-mail The customer is only contacted when he or she has explicitly asked for information to be sent (usually when filling in an on-screen form). Opt-out e-mail The customer is not contacted subsequently if he or she has explicitly stated that he or she does not want to be contacted in future. Opt-out or unsubscribe options are usually available within the e-mail itself. Outbound e-mail E-mail sent from a company. Outsourcing Contracting an outside company to undertake part of the Internet marketing activities. Overt Typically an animated ad that moves around the page and is superimposed on the web site content.
Page impression One page impression occurs when a member of the audience views a web page. (See also Ad impression and Reach.) Page request The process of a user selecting a hyperlink or typing in a uniform resource locator (URL) to retrieve information on a specific web page. Equivalent to page impression. Page view See Page impression. People variable The element of the marketing mix that involves the delivery of service to customers during interactions with those customers. Perfect market An efficient market where there are an infinite number of suppliers and buyers and complete price transparency. Performance drivers Critical success factors that determine whether business and marketing objectives are achieved. Performance measurement system The process by which metrics are defined, collected, disseminated and actioned. Performance of web site Performance or quality of service is dependent on its availability and speed of access. Permission marketing Customers agree (opt in) to be involved in an organisation’s marketing activities, usually as a result of an incentive. Personalisation Web-based personalisation involves delivering customised content for the individual through web pages, e-mail or push technology. Phone-me A callback facility available on the web site for a company to contact a customer by phone at a later time, as specified by the customer. Physical evidence variable The element of the marketing mix that involves the tangible expression of a product and how it is purchased and used. Pixel The small dots on a computer screen that are used to represent images and text. Short for ‘picture element’. Used to indicate the size of banner advertisements. Place The element of the marketing mix that involves distributing products to customers in line with demand and minimising cost of inventory, transport and storage. Plug-in A program that must be downloaded to view particular content such as an animation. Portal A web site that acts as a gateway to the information on the Internet by providing search engines, directories and other services such as personalised news or free e-mail. Portfolio analysis Evaluation of value of current e-commerce services or applications. Positioning Customers’ perception of the product offer relative to competitors. Prescriptive strategy The three core areas of strategic analysis, strategic development and strategy implementation are linked together sequentially. Price transparency Customer knowledge about pricing increases due to increased availability of pricing information. Price variable The element of the marketing mix that involves defining product prices and pricing models. Pricing model Describes the form of payment such as outright purchase, auction, rental, volume purchases and credit terms. Privacy A moral right of individuals to avoid intrusion into their personal affairs. (See also Security methods.) Process variable The element of the marketing mix that involves the methods and procedures companies use to achieve all marketing functions. Product variable The element of the marketing mix that involves researching customers’ needs and developing appropriate products. (See Core product and Extended product.) Profiling See Customer profiling. Promotion (online and offline) Online promotion uses communication via the Internet itself to raise awareness about a site and drive traffic to it. This promotion may take the form of links from other sites, banner advertisements or targeted e-mail messages. Offline promotion uses traditional media such as television or newspaper advertising and word of mouth to promote a company’s web site. Promotion variable The element of the marketing mix that involves communication with customers and other stakeholders to inform them about the product and the organisation. Prosumer ‘Producer +consumer’. The customer is closely involved in specifying their requirements in a product. Prototypes and prototyping A prototype is a preliminary version of part (or a framework of all) of a web site that can be reviewed by its target audience, or the marketing team. Prototyping is an iterative process where web site users suggest modifications before further prototypes are made and the final version of the site is developed. Psychographic segmentation A breakdown of customers according to different characteristics. Public key A unique identifier of a buyer or a seller that is available to other parties to enable secure e-commerce using encryption based on digital certificates. Public-key encryption An asymmetric form of encryption in which the keys or digital certificates used by the sender and receiver of information are different. The two keys are related, so only the pair of keys can be used together to encrypt and decrypt information. Public-key infrastructure (PKI) The organisations responsible for issuing and maintaining certificates for public-key security together form the PKI. Pull media The consumer is proactive in selection of the message through actively seeking out a web site. Push media Communications are broadcast from an advertiser to consumers of the message who are passive recipients. Push technology The delivery of Web-based content to the user’s desktop without the need for the user to visit a site to download information. E-mail can also be considered to be a push technology. A particular type of information is a push channel. Qualified lead Contact and profile information for a customer with an indication of the level of their interest in product categories. Reach The number of unique individuals who view an advertisement. RealNames A service for matching company names and brands with web addresses. Referrer The site that a visitor previously visited before following a link. Referring sites A log file may indicate which site a user visited immediately before visiting yours. (See also Clickthrough, Destination site and Exit page.) Registration (individuals) The process whereby an individual subscribes to a site or requests further information by filling in contact details and his or her needs using an electronic form. Registration (of domain name) The process of reserving a unique web address that can be used to refer to the company web site. Reintermediation The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation. Relationship marketing Consistent application of up-to-date knowledge of individual customers to product and service design, which is communicated interactively in order to develop a continuous, mutually beneficial and long-term relationship. Repeat visits If an organisation can encourage customers to return to the web site then the relationship can be maintained online. Repurposing Developing for a new access platform, such as the Web, content which was previously used for a different platform. Resource analysis Review of the technological, financial and human resources of an organisation and how they are utilised in business processes. Results-based payment Advertisers pay according to the number of times the ad is clicked on. Retail channel Retailers’ use of the Internet as both a communication and a transactional channel concurrently in business-to-consumer markets. Retail format This is the general nature of the retail mix in terms of range of products and services, pricing policy, promotional programmes, operating style or store design and visual merchandising; examples include mail-order retailers (non-storebased) and department-store retailers. Retention See Customer retention. Return on advertising spend (ROAS) This indicates amount of revenue generated from each referrer. ROAS =Total revenue generated from referrer / Amount spent on advertising with referrer. Return on investment (ROI) This indicates the profitability of any investment, or in an advertising context, for each referring site. ROI =Profit generated from investment / Cost of investment. ROI =Profit generated from referrers / Amount spent on advertising with referrer. Return path An interaction where the customer sends information to the iDTV provider using a phone line or cable. Revenue models Describe methods of generating income for an organisation. Reverse auctions Item purchased from lowest bidding supplier in bidding period. Rich-media advertisements Advertisements that are not static, but provide animation, sound or interactivity. An example of this would be a banner advertisement for a loan in which a customer can type in the amount of loan required, and the cost of the loan is calculated immediately. Robot A tool, also known as a spider, that is employed by search engines to index web pages of registered sites on a regular basis. Run of site A situation where a company pays for banner advertisements to promote its services across a web site.
Sales generation offers These are offers that encourage product trial. A coupon redeemed against a purchase is a classic example. Sales promotions The Internet offers tremendous potential for sales promotions of different types since it is more immediate than any other medium – it is always available for communication, and tactical variations in the details of the promotion can be made at short notice. Saturation of the Internet Access to the Internet will reach saturation as home PC ownership reaches a limit, unless other access devices become popular. Scenario-based analysis Models of the future environment are developed from different starting points. Scenario of use A particular path or flow of events or activities performed by a visitor to a web site. Scripts Scripts can run either on the user’s browser (client-side scripts) (see Web browser) or on the web server (server-side scripts). Search engines Specialised web sites that use automatic tools known as spiders or robots to index web pages of registered sites. Users can search the index by typing in keywords to specify their interest. Pages containing these keywords will be listed, and by clicking on a hyperlink the user will be taken to the site. Search engine listing The list of sites and descriptions returned by a search engine after a user types in keywords. Search engine ranking The position of a site on a particular search engine, e.g. 3rd. Secure Electronic Transaction (SET) A standard for public-key encryption intended to enable secure electronic commerce transactions lead-developed by Mastercard and Visa. Secure HTTP Encrypted HTTP. Secure Sockets Layer (SSL) A commonly used encryption technique for scrambling data such as credit card numbers as they are passed across the Internet from a web browser to a web server. Security methods When systems for electronic commerce are devised, or when existing solutions are selected, the following attributes must be present:
Seeding The viral campaign is started by sending an e-mail to a targeted group that are likely to propagate the virus. Segmentation Identification of different groups within a target market in order to develop different offerings for each group. Sell-side e-commerce E-commerce transactions between a supplier organisation and its customers. Server log file See Online web metrics. Service quality The level of service received on a web site. Dependent on reliability, responsiveness and availability of staff and the web site service. Serving Used to describe the process of displaying an advertisement on a web site (ad serving) or delivering a web page to a user’s web browser. (See Web server.) Short Message Service (SMS) |