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Ethical e-Marketing


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Presentation to the Chartered Institute of Marketing - November 2005

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Ethical e-Marketing

  1. 1. ethical e-marketing Thom Poole
  2. 2. ethical e-marketing exploring the ethics of marketing practice in the electronic world Thom Poole – Head of Portal Customer Interaction
  3. 3. course outline <ul><li>introduction </li></ul><ul><li>e-media & marketing </li></ul><ul><li>abuse & control </li></ul><ul><li>what are ethics? </li></ul><ul><li>the marketing art of the opt-in </li></ul><ul><li>competitive advantage </li></ul><ul><li>exploitation </li></ul>
  4. 4. Thom Poole <ul><li>involved in e-marketing & the internet since 1992 </li></ul><ul><li>teaching e-marketing for 6 years </li></ul><ul><ul><li>e-commerce </li></ul></ul><ul><ul><li>web design for marketers </li></ul></ul><ul><ul><li>CRM </li></ul></ul><ul><li>written paper on ‘data privacy & the marketing art of the opt-in’ </li></ul><ul><li>writing a book on ‘ethical e-marketing’ </li></ul><ul><li>work for O 2 as Head of Portal Customer Interaction – customer centricity and ethics </li></ul>INTRODUCTION
  5. 5. commercial environment <ul><li>O 2 lives ethical e-marketing </li></ul><ul><li>customer centricity is the goal of all projects within the company </li></ul><ul><li>complex mix online and offline issues </li></ul><ul><li>a leading advocate in the recent code of conduct in text marketing </li></ul><ul><li>a leading voice in the issue of marketing to, and protecting children in the ‘electronic’ environment </li></ul>INTRODUCTION
  6. 6. e-media & e-marketing <ul><li>defining the media, now and in the future </li></ul>1
  7. 7. defining moments <ul><li>electronic communications </li></ul><ul><ul><li>internet </li></ul></ul><ul><ul><li>e-mail </li></ul></ul><ul><ul><li>WAP </li></ul></ul><ul><ul><li>SMS </li></ul></ul><ul><ul><li>MMS </li></ul></ul><ul><ul><li>fax </li></ul></ul><ul><ul><li>iDTV </li></ul></ul><ul><li>interactivity implied </li></ul><ul><li>… up close and personal! </li></ul>E-MEDIA & E-MARKETING
  8. 8. speed kings E-MEDIA & E-MARKETING interactive personal very fast moving medium 2-way communication
  9. 9. e-branding separate e-brand brand extension E-MEDIA & E-MARKETING
  10. 10. communications in theory a linear model of communication (based on Schramm (1995) and Shannon & Weaver (1962) – from Fill (1999)) E-MEDIA & E-MARKETING
  11. 11. from here i can see for miles and miles … E-MEDIA & E-MARKETING
  12. 12. abuse & control <ul><li>abuse of something can lead to its destruction. e-media could become a victim. </li></ul>2
  13. 13. SPAM, SPAM, SPAM, SPAM … <ul><li>unsolicited </li></ul><ul><li>unwanted </li></ul><ul><li>disgusting </li></ul><ul><li>irrelevant </li></ul><ul><li>illegal </li></ul><ul><li>costly </li></ul>ABUSE & CONTROL
  14. 14. why is SPAM dangerous? ABUSE & CONTROL server capacities NOISE! trojans & viruses
  15. 15. what are we going to do now? otherwise … ABUSE & CONTROL legislation/regulation anti-spam software education fines & prison filtering/ white lists e-Mail meltdown
  16. 16. data protection act <ul><li>european directive </li></ul><ul><li>active opt-in </li></ul><ul><li>data transfers only within ‘secure’ networks </li></ul><ul><li>safe harbour </li></ul><ul><ul><li>notice </li></ul></ul><ul><ul><li>choice </li></ul></ul><ul><ul><li>onward transfer </li></ul></ul><ul><ul><li>access </li></ul></ul><ul><ul><li>security </li></ul></ul><ul><ul><li>data Integrity </li></ul></ul><ul><ul><li>enforcement </li></ul></ul>ABUSE & CONTROL
  17. 17. distance selling <ul><li>soft opt-in </li></ul><ul><li>data management </li></ul><ul><ul><li>recency </li></ul></ul><ul><ul><li>frequency </li></ul></ul><ul><ul><li>monetary value </li></ul></ul><ul><li>data protection </li></ul>ABUSE & CONTROL
  18. 18. we don’t need no education… WRONG! ABUSE & CONTROL invited into white lists reduced fraud customer power!
  19. 19. what are ethics? <ul><li>exploring ethics to understand what they mean, how they are formed and who polices them. </li></ul>3
  20. 20. ethics & netiquette <ul><li>social ethics </li></ul><ul><li>business ethics </li></ul><ul><li>cultural ethics </li></ul><ul><ul><li>religious ethics </li></ul></ul><ul><ul><li>environmental ethics </li></ul></ul><ul><li>inferred ethics </li></ul><ul><li>netiquette </li></ul>WHAT ARE ETHICS?
  21. 21. how are ethics shaped? <ul><li>religion </li></ul><ul><ul><li>control </li></ul></ul><ul><ul><li>obedience </li></ul></ul><ul><li>legislation </li></ul><ul><ul><li>marital age </li></ul></ul><ul><li>socio-economic necessity </li></ul><ul><ul><li>war </li></ul></ul><ul><ul><li>famine </li></ul></ul><ul><ul><li>… </li></ul></ul>WHAT ARE ETHICS?
  22. 22. policing ethics WHAT ARE ETHICS? Legislation Religion Education Communication
  23. 23. the marketing art of the opt-in <ul><li>marketing is an art (or maybe a science?), so why not be creative to encourage opt-in? </li></ul>4
  24. 24. opt-in – hard or soft? THE MARKETING ART OF THE OPT-IN Understanding Mission Control
  25. 25. trust in me, my little one … <ul><li>abuse demonstrates untrustworthiness, but to demonstrate trustworthiness is more difficult </li></ul><ul><li>trust = firm reliance on the integrity, ability or character of a person or thing </li></ul>THE MARKETING ART OF THE OPT-IN the trust does not lie in the owner of the large hand … Kaa in Jungle Book
  26. 26. trust in marketing <ul><li>there is no easy formula to gain trust </li></ul><ul><li>but it is, or should be the goal of every company – trustworthiness is profitable </li></ul><ul><li>“ trust means having the customer comfortable with handing over personal information and engaging in ongoing commercial transactions at a company’s website” (Senia, 2000). </li></ul><ul><li>trust is under attack in our society. consumers have so much choice these days, which makes it difficult for brands to rise above the incredible number of messages clamouring for the attention of the consumer. </li></ul><ul><li>“ you can have all the facts and figures, all the supporting evidence, all the endorsement that you want, but if - at the end of the day - you don't command trust, you won't get anywhere&quot; </li></ul>Niall FitzGerald, Chairman of Unilever in an address to the Advertising Association, May 2001 THE MARKETING ART OF THE OPT-IN
  27. 27. friendship = trust <ul><li>‘ people buy from their friends’ </li></ul><ul><li>trust builds loyalty </li></ul><ul><li>trust will drive profit </li></ul>THE MARKETING ART OF THE OPT-IN Profit Trust-focused value chain (adapted from Porter, 1998)
  28. 28. list management relevancy?? frequency action THE MARKETING ART OF THE OPT-IN
  29. 29. dos and don’ts THE MARKETING ART OF THE OPT-IN opt-in respect privacy relevancy complaint handling
  30. 30. the marketing ‘art’ THE MARKETING ART OF THE OPT-IN creative approach trustworthy partnerships control ownership
  31. 31. competitive advantage <ul><li>being trustworthy is profitable, and can be a competitive differentiator. </li></ul>5
  32. 32. getting your nose in front … COMPETITIVE ADVANTAGE Profit Trust-focused value chain (adapted from Porter, 1998)
  33. 33. … but so is everyone else! COMPETITIVE ADVANTAGE
  34. 34. local advantage COMPETITIVE ADVANTAGE local customers workers local competitors
  35. 35. work quality COMPETITIVE ADVANTAGE
  36. 36. national/regional advantage COMPETITIVE ADVANTAGE educate the market positive PR
  37. 37. international advantage COMPETITIVE ADVANTAGE legislative ‘extra mile’ strictest rules positive PR
  38. 38. ethical SWOT <ul><li>checklist is ever evolving </li></ul><ul><li>block the weaknesses </li></ul><ul><li>constant improvement </li></ul><ul><ul><li>block the threats </li></ul></ul><ul><ul><li>create/maintain a competitive advantage </li></ul></ul><ul><li>exploit the strengths and grow the opportunities </li></ul>COMPETITIVE ADVANTAGE
  39. 39. ethical SWOT checklist <ul><li>trust </li></ul><ul><li>satisfaction </li></ul><ul><li>complaints </li></ul><ul><li>active education </li></ul><ul><li>customers </li></ul><ul><li>workers </li></ul><ul><li>authorities (standards) </li></ul><ul><li>legislation compliance </li></ul><ul><li>international </li></ul><ul><li>empowerment </li></ul><ul><li>customers </li></ul><ul><li>care agents (complaints) </li></ul><ul><li>opt-in </li></ul><ul><li>competitors </li></ul><ul><li>spam blocking/clarity of policy </li></ul><ul><li>privacy policy in general </li></ul>S W O T COMPETITIVE ADVANTAGE
  40. 40. exploitation <ul><li>marketing is all about exploitation. we learn everything about the customer, their motivations and lifestyle, the market and our competitors, products and technology, etc … and we then exploit it to produce/sell the products the customer wants, thinks they want, or can be persuaded that they want. </li></ul><ul><li>(Poole. 1998) </li></ul>6
  41. 41. educate your customer <ul><li>use PR to highlight your ethical stance </li></ul><ul><li>privacy policy </li></ul><ul><ul><li>in plain, understandable English (and/or other languages, as appropriate) </li></ul></ul><ul><li>lobby authorities </li></ul><ul><ul><li>local </li></ul></ul><ul><ul><li>national </li></ul></ul><ul><ul><li>international </li></ul></ul>EXPLOITATION
  42. 42. position Lead the Way EXPLOITATION
  43. 43. stand & deliver quality & service EXPLOITATION
  44. 44. improve EXPLOITATION
  45. 45. set the standards EXPLOITATION reactive police proactive
  46. 46. summary 7
  47. 47. summary <ul><li>lead the way with ethical behaviour </li></ul><ul><li>be trustworthy </li></ul><ul><li>keep up-to-date with technology, but don’t be led by it </li></ul><ul><li>stay legal </li></ul><ul><li>manage you competitive advantage </li></ul><ul><li>marketing can be creative – use that creativity! </li></ul>SUMMARY
  48. 48. thank you <ul><li>Thom Poole – Head of Portal Customer Interaction </li></ul><ul><li>thom . poole </li></ul>