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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 12 Social and Regulatory Issues: Data Privacy, Security and Intellectual Property

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 3 -What Are Your Concerns About The Privacy Of Your Personal Data? -What Concerns Do Your Family And Friends Have?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 4 ATTITUDES/ACTIONS VARY BY COUNTRY SEARCH “TRAFFIC CAMERAS IN AUSTRALIA”

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 5 CONSUMER TRUST

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 6 ALSO NGOs, HOW TO BUILD TRUST

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 7 CONSUMER ACTIONS 65% Have Deleted Cookies 43% Have Used Filters to Block 23% Have Used Software to Block Spyware 17% Have Used Software to Hide Identity

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 8 RECENT DATA – PEW ‘DIGITAL FOOTPRINT info-though-half-of-us-have-googled-ourselves-2777/pew-digital-footprint- what-we-know-about-our-online-infojpg/ Privacy Implications of Fast, Mobile Internet Access 2/14/2008 | Memo | Susannah FoxSusannah Fox

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 9 YOUR PERSONAL BRAND

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 10 BRAND REPUTATION MONITORING  Listen to Your Customers on Site  Solict Feedback/Ratings  Listen to Buzz in Webspace  Google Alerts  Blog Posts > Technorati  Blog Comments > BackType  Discussion Boards > BoardTracker  Twitter > search.twitter.com  Friendfeed (social aggregator)

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 11 A PR REPORT

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 12 “THE TRUST IMPERATIVE” Reduced Customer Acquisition Cost Higher Profit Margins Growth Long-Term Competitive Advantage

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 13 ACCENTURE’S TRUST DIMENSIONS Security of Personal Data Consumer Control over Data Consumer Has Personal Access Provide Benefit to Consumer

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 14 Data Protection and Privacy on the Internet

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 15 CONSUMERS ARE CONCERNED

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 16 HOW MUCH DO USERS KNOW? Many Users Believe Privacy Policy Means Sites Won’t Share Data Are Unclear About The Ways Sites Connect Data For Tracking  When Explained, Would Not Accept Practice, Even From A Trusted Site Few Take Action To Learn About Privacy Practices Or To Protect Their Data

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 17 RESEARCH SUMMARY Consumers Are Concerned BECOMING LESS SO AS MORE FAMILIAR WITY NET? But They Often Lack Accurate Knowledge.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 18 PRIVACY SEGMENTS Fundamentalists 26% Pragmatists 64% Marginally Concerned/Unconcerned 10%

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 19 BEHAVIORAL ADV CURRENT ISSUE well-aware-of-behavioral-tracking-targeting-dont-like- it-much-4048/truste-consumer-awareness-behavioral- targeting-consider-knowledgeable-of-privacy-risks- threats-onlinejpg/

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 20 BEHAVIORAL ADV CURRENT ISSUE The Harris Poll ® #40, April 10, 2008

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 21 GOOGLE DASHBOARD

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 22 U.S. PRIVACY REGULATION COPPA GLBA HIPPA

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 23 The United States Has A General Preference For Industry Self-Regulation In The Field Of Privacy

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 24 BUSINESS RESPONSE Privacy Policies Information Practices Statements

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 25 INFORMATION PRACTICES STATEMENTS “We Will Not Share Your Name With Anyone, Anytime.” “From Time To Time We Will Share Your Name With Partners Who Have Offers Of Interest.”

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 26 CONCERN ABOUT GOVERNMENT DATA

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 27 FAIR INFORMATION PRACTICES PRINCIPLES (U.S., E.U. and many others) Notice/Awareness Choice/Consent Access/Participation Integrity/Security Enforcement/Redress

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 28 SOME PRIVACY ORGANIZATIONS TRUSTe BBBOnline Online Privacy Alliance Electronic Privacy Information Center Electronic Frontier Foundation Privacy Rights Clearinghouse Privacy Pages Of The DMA/AIM Industry-Specific Recommendations and Templates

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 29 LIST OF DATA BREACHES

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 30 THE E.U. DIRECTIVE ON PROTECTION OF PERSONAL DATA Information for Both Consumers and Business at

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 31 RIGHTS UNDER EU DIRECTIVE Right of Access to Data Right to Knowledge about Where Data Originated Right to Have Inaccurate Data Corrected Right of Recourse in the Event of Ilegal Use Right to Withhold Permission to Use Data in Certain Circumstances Based on FIPP

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 32

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 33 SAFE HARBOR AGREEMENT Department of Commerce Monitors Compliance

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 34 CONSUMER DATA SECURITY

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 35 CONSUMERS ARE CONCERNED 51% Are More Concerned Than They Were a Year Ago 70% Have Installed Additional Security Software A Majority Say They Know What Adware and Spyware Are  53% Said They Had Adware or Spyware on Their Computers  80% Actually Had Adware or Spyware on Their Computers!

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 36

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 37 DEFINITIONS Spyware is Software That Gathers and Sends Data About Internet Activities  Often Without User’s Knowledge  Usually With Their Consent  Pop-ups (Based on Sites User is Visiting)  E.g., Anonymous Profiles for Behavioral Marketing Adware is Software That Allows Advertising to Be Displayed  Contextual Advertising (Based on Keywords Used)

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 38 FRAUDULENT ACTIVITIES Phishing Is The Use of Fraudulent s In An Attempt to Obtain Personal Information Pharming Is The Creation of Fake Sites That Resemble Legitimate Ones In An Attempt to Obtain Personal Information Spoofing Is Any Attempt to Use IP Addresses To Masquerade as Another Web Entity

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 39 HOW DOES IDENTITY THEFT HAPPEN?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 40 HOW TO PROTECT AGAINST IDENTITY THEFT

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 41 SECURITY THREATS AGAINST BUSINESS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 42 BUSINESS USES SECURITY TECHNOLOGIES TO STEM LOSSES The Greatest Dollar Losses Caused By  Viruses  Unauthorized Assess to Systems  Theft of Data Security Technologies Used  Firewalls  Anti-Virus Software  And Many others

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 43 Intellectual Property Presents Vexing Problems On the Internet

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 44 CONSUMERS SEEM CONFLICTED ABOUT MUSIC DOWNLOADING

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 45 SEEMS A BIT EXTREME...

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 46 TOYOTA EXPERIENCED TROUBLE

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 47 ATTEMPTS TO DEAL WITH IP IN THE DIGITAL AGE Digital Millennium Copyright Act - US  Prohibits Disabling Anti-Piracy Codes  Libraries Can Make Content Available  And much more... Directive to Protect Copyrights – EU  Forbids Unauthorized Copying  Allows Legitimate Online Distribution of Digital Products

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 48 IF YOU PRODUCE CONTENT

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 49 GREEN IS IN Huge Consumption of Energy Toxic Materials in Products Other?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 50

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 51 SUMMARY Trust Essential To Ecommerce Privacy, Security, Intellectual Property Are Issues Children’s, Health, and Financial Information Especially Sensitive Fair Information Practices Principles Generally Accepted Globally Self-Regulation (US) vs. Laws/Regulations (EU and other Countries) Spyware, Adware/Phishing, Pharming, Spoofing Protection Against Data and Identity Theft Regulate Downloading of Music and Other Intellectual Property