The costs of managing individual relationships in one-to-one marketing are very high and most companies apply COM by using approaches which automate the tailoring of services to develop relationships with customer segments rather than individuals. As such, the Internet becomes a cheaper and easier way of bringing about this automation. 2. Explain personalization' in an Internet marketing context.

Refers to customization of information requested by a site customer at an Individual level; delivering customized content for the individual through web pages, email or push technology. What is meant by 'customer profiling? A method of understanding individual consumers online by recording data such as age, sex, content preferences and interest () or size of company, industry and buyer making position (), through methods such as Installing cookies, collaborative filtering and monitoring content viewed. Online customer profiling can be used to target advertisements, personalize web sites and match services to a specific customer's needs. 4.Explain the concept and benefits of the 'sense and second' approach to customer communications.

Timely, relevant communications to customers as part of a contact strategy based on assessment of their position in the customer life cycle and monitoring specific interactions with a company's website, emails and staff. This involves use of web technologies by online marketers to track the past behaviors of customers in order to customize communications to encourage future purchases.A classic example would be the personalization facilities provided by Amazon where personal recommendations are provided. Benefits: - targeted communications (generating sales/encouraging transactions) - can be used to foster personalized relationships allows application of knowledge of the individual customer to product service and design 5. How can customer concerns about privacy be responded to when conducting one-to-one marketing using the Internet? Allowing consumers to opt in as well as opt out of receiving marketing communications (Permission Marketing).

Providing an online privacy agreement/policy that consumers can refer to in order to all their fears regarding how their data will be used Simply assuring the consumer that information that they are providing online will not be shared with a third party , digital signatures, SSL (Secure Sockets Layer protocol) and SET (Secure E 6. Explain the relationship between database marketing, direct marketing and relationship marketing. By creating a customer database that contains unique 1 marketing messages to the respective consumers through email and other push technologies, which represents the concept of direct marketing.By engaging in direct marketing and with the ability to provide personalized communications to the individual consumer, the marketer has the opportunity to 'nurture' the customer over their customer life cycle; as such this forms the fundamental requirement of building personalized customer relationships - relationship marketing.

7. Explain the concept and applications of analysis to different types of web presence. By using values representing regency of customer action (e. G. Purchase, visit, e-mail response), frequency (e. G.

Number of actions in a period) and monetary value (e. . Total annual purchase), marketers can manage customer activities. For instance, regency is a powerful predictor of the customer repeating an action and hence the need for additional information can be anticipated e. G. An email reminder of a new product release.