Many firms have an uphill battle in terms of one of the goals of marketing, establishing trust. Legitimacy is a huge issue with direct e-mail because many legitimate campaigns, even those opted into by consumers, are mistaken for the hundreds of other spam messages received daily by consumers. Although the response rate with direct email is much quicker than direct mail, most ads don’t make it past the junk mail folder. The issue develops further because spammers design their messages to look very similar to that of the legitimate firms including HTML text and graphics. In response to this, a lot of firms have created double opt-in tools to be sure that users indeed have requested the subscription.

A report issued by the e-mail services company Return Path states, “as of mid-2008 e-mail deliverability is still an issue for legitimate marketers. According to the report, legitimate e-mail servers averaged a delivery rate of 56%; twenty percent of the messages were rejected, and eight percent were filtered.”  http://wholesalecatalogsfree.com/2009/11/e-mail-marketing-and-its-advantages-and-disadvantages/

Marketers considering the use of a direct e-mail program must be aware of the anti-spam laws and regulations (CAN-SPAM)  in all countries as well. At the same time it is reported that even though a company follows these regulations they can still be black listed if internet e-mail administrators decide that the company is sending spam. Being black listed can mean 11,000 dollar fines per violation for spamming EACH individual. http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus61.shtm

When realizing  how difficult constructing a successful direct e-mail campaign is and the negative outcomes of not differentiating, all of a sudden mail-outs don’t seem so expensive after all.

Most of the time users will carry on until something stops them dead in their tracks. All of a sudden out of the blue, Hotmail.com has posted a vertical banner ad on Facebook.com that declares the following, “Thank- you Fred! Because of you Hotmail …” (see picture below). Almost instantly, a wave of shock at this invasion of privacy is followed by resentment  against the firm that believes that this strategy will gain an individual’s business.

With a little research consumers begin to realize that when they thought they were just clicking around aimlessly going unnoticed,  a number of companies were tracking  their IP address, sites visited, and how long was spent there. From there that information is cross referenced with demographic and geographic data and voila, a detailed user profile is created.  This of course is typically then sold to multiple other firms so they too can benefit from these user profiles. http://www.youtube.com/watch?v=26FSZ6RRJRE

It is pretty easy to see why so many consumers are offended by this strategy.  Many studies have since been conducted to educate, inform, and hopefully alter consumer’s negative perception of behavioral tracking. The common result? The majority of the studies conducted by marketing firms like ChoiceStream and  Q Interactive suggest that consumers don’t mind it so much. However, in vast contradiction to these findings the independant studies done by major University Research teams such as the University of Pennsylvania  state that the large majority of US internet users reject behavioral tracking altogether. http://www.s-m-a-r-t.com/Exp_AAU.htm

What’s interesting about this as shown in the Anneberg/Berkley study is that up to 50 percent of the consumers would accept targeted ads if some sort of incentive or discount were offered. This applies to the age old marketing concept of creating value. Consumers are and will always be much more positive and responsive to advertisements regardless of the delivery channel if they perceive them to be valuable. Marketing will always be about creating value for the consumer and this approach should be applied by all firms to ensure their messages are being received  and valuable marketing dollars aren’t wasted. http://lunchpail.knotice.com/2009/10/28/behavioral-targeting%E2%80%99s-evolving-perception/

There have been many successful campaigns of different styles and approaches that have aided in getting people talking.An example of this would be the buzz created in the months leading up to the release of the new Batman movie, “The Dark Knight.” It was quoted by the Los Angeles Times as being, “one of the most interactive movie-marketing campaigns every hatched by Hollywood,” and it most certainly boosted anticipation for the movies launch. http://www.youtube.com/watch?v=VpuC7HhCPWA

Although firms should be aware that for as many successful viral ads, there are just as many that have either crossed the line from entertainment to offensive or just simply not funny. This can have the opposite effect and cause confusion or seriously harm a firm’s reputation and image.

For example, the MSI laptop brand’s video where a teen is shot catching several of the laptops in a  number of different positions with his butt poses the following question. Granted catching a laptop with body parts other than hands and feet is a feat but is it useful and does it need to be? There will probably be a small number of people  around the age range of the kids in the video that find the video funny but will they go and buy the laptop? http://www.youtube.com/watch?v=oiNaadVOQEM&feature=PlayList&p=2F68C380F9AF371C&playnext=1&playnext_from=PL&index=62

The MSI video probably confused and irritated some people but it didn’t damage the firm’s brand image too much, but some cases such as the virtual  Monopoly City Streets game produced by Hasbro has. When the game’s demand grew far beyond what its servers initially predicted they were overwhelmed and the game became riddled with problems. Gamers who were spending countless hours developing their portfolios were dismayed to be beaten by other gamers who’d taken advantage of the games problems and cheated. The forums were plagued with people’s disappointments, complaints, and the companies apologies. http://www.mobinode.com/2009/09/15/did-viral-marketing-damage-the-hasbro-brand/

This in turn declined Hasbro’s game sales as well as sales of the real Monopoly game as people were determined to boycott the brand.

There are many examples of when a firm has crossed the line into being offensive. The National Health Center (NHS)  in Britain  launched a video of a young teen giving birth in the middle of a high school field surrounded by teenagers. The video was so graphic it was banned from YouTube and later taken off NHS’s website. Because of the extremely graphic content of the viral video the firm’s intended message (it is assumed in all good graces that there was one) was completely lost. Not only were people massively offended, and grossed out but they were also left wondering what the point was. The anger only increased when rumor got around that the video was a fake. It was an all round failed attempt by the NHS to spread a health message.

It is key that firms who are looking at creating a viral message to increase their brand awareness learn from other firms who have had to suffer the consequences of a failed ad attempt.

There is a line between what is funny and useful and offensive and harmful and it is the firm’s responsibility  to its consumers to know where that line is.

Well time to move on.  Social networking is now beyond intricate profiles with news feeds and photo albums to bring the internet world something called “micro blogging.” Best described as the collective mash-up of texting, instant messaging, and blogging. The point of this you ask? Well, for obvious reasons this appeals to the mass technologically-savvy internet generation  as the next trendy way to interact and follow just about anybody worldwide who also “tweets.”

But what does it do for businesses? Well, currently a wide array of companies have signed on to Twitter and have begun tweeting. Dell computers updates their Twitter status daily with new promotions, product launches, and exclusive deals for its followers to receive. http://www.dell.com/twitter There doesn’t really seem to be any certain type of company that will benefit most from being on micro blogging sites like Twitter. Even News media sites are staying up to date by  tweeting to reflect news stories as they develop. The forest fires of 2007 brought an increase in local use of Twitter where citizens, firemen, news media, and emergency services were tweeting their experiences while they were in the moment of what was occurring. Foreign Aid organizations have even realized the benefits, as an example of one young woman who speculated in the beginning until she  realized there were emergency services groups and other aid organizations following her Aid organization tweets. http://www.slideshare.net/ggrosseck/workshop-villach-2009-carga

The flip side of the coin is most trendy things don’t last. As Delta airlines illustrated when coming out of bankruptcy it had signed onto Twitter as part an aggressive new marketing plan. Initially the consistent, dynamic updates on Delta’s day to day status gained many followers, but as the airline regained its footing the tweets petered off until finally they stopped. Peter Kim, Senior Analyst of Forrester Research, says that its dangerous in any medium to do this. Once companies have a following whether in the physical or virtual world, it is bad publicity to let that following down.http://www.jenniferjones.com/MarketingVoices/4708/the-latest-uses-of-microblogging-for-marketers

As micro blogging continues to evolve, this issue may become more prevalent and companies may become more “tied to their tweets” as opposed to their word.

Let us set the privacy issues aside, and pose the question; what does a site like Facebook really offer in the ways of connections? At most Facebook and similar sites are a sophisticated form of social interaction. Everyone on your list is presumably your “friend” although that gets stretched to “so-and-so’s cousin’s sister from high school,” or the bag-girl at the grocery store,” because according to an article written by Molly Wood, “if you restrict your friends list to only the people you already know, well, then the boredom sets in. Why would you read their profiles over and over when you can just IM them, e-mail them, or meet at the baseball game?” http://www.cnet.com/4520-6033_1-6240543-1.html

So what use is social networking then besides something to pass time with because Wood says sites like Facebook leave us with,  “just a bunch of painful small talk and leering grins.”

Sites like LinkedIn coined as “the business version of Facebook”  http://www.youtube.com/watch?v=YOuKHJJe5-A helps to answer the ” But what do I DO there?” question by offering a place where companies can potentially make new business contacts. Users create a profile which consists of facts like company history, education, work experience etc. and are able to interact with other businesses or people in their industry. There are numerous bloggers that suggest that LinkedIn has been a helpful business tool but not to expect miracles from it.  As one blogger wrote,  “”it helps to have a clear purpose and some specific kind of people to search for, whether they are experts, potential clients or business partners.” http://hellomynameisscott.blogspot.com/2005/08/does-online-social-networking-actually.html

At the other side of the pendulum there are those that suggest that most professionals use these business network sites to either reconnect with old colleagues or solidify business relationships already created in real life.  In reality  sites like these present a problem for the newcomer looking to break in and he finds himself locked out by a conglomerate of businesses who will only add pre-existing connections to their networks. Sounds sort of like Facebook…

Japan has taken a different approach to dealing with privacy complaints by creating a cute animated video (Google Street Maps Animated Video for Japan) which attempts to demonstrate how the privacy of individuals is handled in a upbeat, colorful way.

The United States concerns are based on individuals being photographed “in the act” of doing inappropriate things such as entering massage parlors, engaging in prostitution, and sunbathers. (Caught in the act) Google maintains that all pictures posted have been taken from public property and things like sunbathers will not be removed. In response to this Google now automatically blurs the faces of all persons photographed in the images. (Funny Images caught on Google Street View )

The most interesting complaint that Canada has voiced is not one of concern for privacy oddly enough. Saskatoon in particular has a rather peculiar take on the presence of  Google Street View as the cameras took to its streets in March. Les MacPherson a columnist of the Saskatoon Star-Pheonix wrote in a March 28th 2009 article, “what worries me more than any loss of privacy is the prospect of presenting to the world a highly unflattering impression of Canadian cities.”

This makes sense since Canada’s eastern provinces are under a blanket of heavy snow until late in the Spring, which to most would present a rather unattractive place to visit.  This may lead to the impression that ALL of Canada is a cold snowy place ALL year round. Marketers of travel companies nation wide may all of a sudden find it difficult to overcome such visual “proof” of Canada’s climate and may see tourism start to decline. With the exception of parts of the West and East Coast, the majority of Canada is not its at its best at this time of year. Its like trying to sell Mexico if potential tourists are under the impression that typhoon season is all year round.

Macpherson describes the challenges marketers of Canadian tourism would be up against by writing, “for Google to record its images of the city at this most visually unappealing time of year is like photographing a beautiful woman who has just awakened from a six-month coma.”

At the other end of the spectrum Victoria is quite beautiful in the early spring, so local tourism marketers would quite possibly see an influx of foreign visitors.

Marketers will continue to speculate how this will effect Canadian tourism  for the time being, although the controversy surrounding Google Street Views invasion of privacy will continue as long as people are still in the streets.

So hopefully it will get easier with time  and I can benefit from this new outlet to organize and expand on marketing ideas  in this vast internet environment.

Stay Tuned~!