Sunday, December 12, 2010

Invasion of privacy or private marketing?

The delicate balance between individual privacy and marketing specifically garnered through information obtained through internet usage is an issue which invokes extreme support from differentiating opinions.  On one side of the argument are those individuals who feel that internet use is one of the most protected rights under the US Constitution; similar to the privacy of the US mail or the inalienable right against illegal search and seizure.  Capitalist marketing groups and other businesses state that internet usage and information obtained from emails is public information willingly acquiesced to review by the user, which may be gathered, analyzed, and reflected in targeted advertising.
Recent debate over FTC policy shows that a lot of the proposed implementations are not doing their job.  The FTC currently attempts to sanction those individual websites, which have privacy policies in place, but fail to enforce them.  On the other side of the coin, many companies feel that the best protection comes not from the government, but from the companies who compose internet commerce.  Microsoft is one of many online companies who recently implemented the proactive ability for the users to turn off cookies, which in turn prevent advertisers from gathering data about internet usage.

Advertising companies and other companies who benefit from online research and marketing are worried that changes in the mentality of the user and their collective rights will extremely limit the effectiveness of their business model.  Like various other sectors of the global economy, proponents of free trade (with limited government intervention) insist that the best public policy is to eliminate government intervention in the industry.
As a proponent of open markets (on most cases) and the limited intrusion of privacy that advertisers collect through internet usage, I feel that this is an issue left alone by the United States and other governments.  The new option provided by Microsoft and Mozilla allows the user to proactively turn-off their cookie tracking and this is sufficient protection of privacy. 

Wednesday, December 1, 2010

Groupons...Is it, really, a good idea?

When I first came into the term “Groupon” I had no idea what it really was, so I did a quick research educated myself on this new marketing 'fad'. Basically you sign up, and you get an email with the daily deal, you can proceed to purchase the ‘coupon’ and you are free to use it whenever.  It all seems like a great way to boost sales for any business.

Now, is this great deal, too good to be true??….. So I decided to do some quick research to see what I could find out. So far, groupons is gaining strength; it is rumored that the company will be acquired by Google, which that in itself has turned out to be a heated debate, whether or not this is a smart move for Google.  (Why Google Buying Groupon Is a Bad Idea). Regardless, groupons has expanded, “It is now in 300 cities internationally, 130 of them in the US, and 2,700 employees, just under 1,000 in the US. Its acquisitions have included similar sites in Berlin, Japan, Russia and Latin America.” (Groupon’s runaway success with coupons) and it seems to be getting stronger.

 But the question is, is this really profitable for businesses???  I would have to say, it is. But, it has to be treated carefully, all businesses have to make sure they can, first of all, be able to meet the demand in order to keep clients satisfied. Specifically small business, for example, “Charnell Griffin expected “a couple hundred” customers when she offered a discount through Groupon.com for the services of her three-and-half year-old company, Clean Corp. Nearly 3,800 people pounced on the $35 deal for two-hours of house cleaning. Griffin was — and still is — overwhelmed as she tries to honor the vouchers before they expire in a year. In this case, it really was too much of a good thing.”

Therefore if handled correctly, it can be a very powerful tool for businesses, big or small, it helps them get ‘noticed’, specially small businesses. These smaller bisness ventures also have to be careful when they do their math, they have to be sure that the discount they are offering covers their costs and allows them to make profit, because, if this “Groupon” tool is mishandled it can have a negative effect rather than positive, it can create loses for any company. Like with any new thing, it has to be monitored carefully to see what possible problems can arise with it.