YOUNG ENTREPRENEUR0:

Marketing is about selling, and it's about delivering quality and value to the customer. If a business wants to succeed at marketing a product or service, they have to know the customer. That's why businesses do market research. Traditionally, companies have done market research by conducting focus groups, surveys, field tests, and observations. But we live in the age of technology, and as you might imagine, businesses have found that the internet can be a very useful tool for conducting research about their customers.

Marketing is about selling, and it's about delivering quality and value to the customer. If a business wants to succeed at marketing a product or service, they have to know the customer. That's why businesses do market research. Traditionally, companies have done market research by conducting focus groups, surveys, field tests, and observations. But we live in the age of technology, and as you might imagine, businesses have found that the internet can be a very useful tool for conducting research about their customers.
YOUNG ENTREPRENEUR1:

In fact, businesses who don't use the internet as a tool for market research could find themselves left behind. However, customers are very sensitive about their privacy. Businesses can and should use the internet to conduct market research, but they should also be aware that customers don't like people spying on them; they don't like it when companies know too much. A business has to be responsible when using the internet to do market research .... otherwise, they could lose customers. It's becoming more and more common for companies to examine their customers'' 'Click Behavior'.

In fact, businesses who don't use the internet as a tool for market research could find themselves left behind. However, customers are very sensitive about their privacy. Businesses can and should use the internet to conduct market research, but they should also be aware that customers don't like people spying on them; they don't like it when companies know too much. A business has to be responsible when using the internet to do market research ... otherwise, they could lose customers. It's becoming more and more common for companies to examine their customers' 'Click Behavior'.
YOUNG ENTREPRENEUR2:

This is when they use software to keep track of the websites a customer visits. Businesses can use this information to determine how many people have looked at a particular advertising campaign. They can also sell this information to other companies who are interested. More often than not though, they use this information to determine which ads they should target at a particular customer. Google does this .... if you search for information about hotels in Beijing, the ads you're presented with in the sidebar will certainly be ads for hotels in Beijing!

This is when they use software to keep track of the websites a customer visits. Businesses can use this information to determine how many people have looked at a particular advertising campaign. They can also sell this information to other companies who are interested. More often than not though, they use this information to determine which ads they should target at a particular customer. Google does this ... if you search for information about hotels in Beijing, the ads you're presented with in the sidebar will certainly be ads for hotels in Beijing!
YOUNG ENTREPRENEUR3:

But the fact that companies can keep track of what you're looking at on the internet bothers some people. Sure, this kind of tracking can make sure that coffee drinkers only get ads about coffee, and cigarette ads only get sent to those who smoke .... but what if a company provides information to insurance companies about people that have researched the term 'cancer'? That companies could share their information with anyone scares a lot of people and some politicians are even recommending laws be put in place to make sure the privacy rights of internet users are protected. Many companies also keep track of the purchases customers make. Amazon uses this information to help them recommend other items a customer may want to buy.

But the fact that companies can keep track of what you're looking at on the internet bothers some people. Sure, this kind of tracking can make sure that coffee drinkers only get ads about coffee, and cigarette ads only get sent to those who smoke ... but what if a company provides information to insurance companies about people that have researched the term 'cancer'? That companies could share their information with anyone scares a lot of people and some politicians are even recommending laws be put in place to make sure the privacy rights of internet users are protected. Many companies also keep track of the purchases customers make. Amazon uses this information to help them recommend other items a customer may want to buy.
YOUNG ENTREPRENEUR4:

There can be problems with this strategy, though. Customer Erik Jensen explains:

There can be problems with this strategy, though. Customer Erik Jensen explains:
ERIK JENSEN:

I know Amazon keeps track of the stuff I buyI don't mind that. But a few months ago, I bought a book about flower gardening for my grandma, for her birthday. I'm not interested in gardening no way. But now, every time I go on Amazon, they recommend me books about flowers and planting gardens and stuff like that .... I'm a twenty two year old guy. Why would I wanna know how to plant a vegetable garden?

I know Amazon keeps track of the stuff I buy.I don't mind that. But a few months ago, I bought a book about flower gardening for my grandma, for her birthday. I'm not interested in gardening no way. But now, every time I go on Amazon, they recommend me books about flowers and planting gardens and stuff like that ... I'm a twenty two year old guy. Why would I wanna know how to plant a vegetable garden?
YOUNG ENTREPRENEUR0:

Fortunately, the technology is improving. By combining keyword search information with information about the customer demographic (such as age, sex, occupation), Amazon will be able to be more precise in the recommendations they make to their customers. Social networking sites like Facebook and Myspace also use technology like this. On these sites, users actually fill out profiles about themselves .... they voluntarily enter information into the site! And of course, Facebook and Myspace can use this information about the customer to target specific ads at them.

Fortunately, the technology is improving. By combining keyword search information with information about the customer demographic (such as age, sex, occupation), Amazon will be able to be more precise in the recommendations they make to their customers. Social networking sites like Facebook and Myspace also use technology like this. On these sites, users actually fill out profiles about themselves ... they voluntarily enter information into the site! And of course, Facebook and Myspace can use this information about the customer to target specific ads at them.
YOUNG ENTREPRENEUR1:

Becky Johns explains her experience:

Becky Johns explains her experience:
BECKY JOHNS0:

My facebook page called me fat! I guess they use my profile to determine which ads I see .... well, I kept getting ads about losing weight. Is it because of my age? Is it because I'm engaged?

My facebook page called me fat! I guess they use my profile to determine which ads I see ... well, I kept getting ads about losing weight. Is it because of my age? Is it because I'm engaged?
BECKY JOHNS1:

I logged into my profile and there's a big ad on the sidebar that says "Do you wanna be a fat bride"" And a picture of a chubby tummy! I don't want to be feeling bad about myself right now .... I mean, I just got engaged! Do they think insulting me is going to get me to buy their product?

I logged into my profile and there's a big ad on the sidebar that says "Do you wanna be a fat bride?" And a picture of a chubby tummy! I don't want to be feeling bad about myself right now ... I mean, I just got engaged! Do they think insulting me is going to get me to buy their product?
YOUNG ENTREPRENEUR0:

Clearly, this ad did not make Becky happy. Sure, doing market research and knowing about the customer can help businesses figure out how to advertise to them. And advertising experts have always known that by making customers feel like they are inadequate or that they are missing something from their life is one way to get them to buy a product. But when we have technology as advanced as this that can directly target an individual according to their demographic and personal information .... well, then we run the risk of knowing too much .... or making them feel like we know too much.

Clearly, this ad did not make Becky happy. Sure, doing market research and knowing about the customer can help businesses figure out how to advertise to them. And advertising experts have always known that by making customers feel like they are inadequate or that they are missing something from their life is one way to get them to buy a product. But when we have technology as advanced as this that can directly target an individual according to their demographic and personal information ... well, then we run the risk of knowing too much ... or making them feel like we know too much.
YOUNG ENTREPRENEUR1:

The technology is advanced .... it's intelligent even, but so is the customer. If a business knows too much .... the customer will probably catch on. It's good to know who your customer is. But remember, every customer values their privacy.

The technology is advanced ... it's intelligent even, but so is the customer. If a business knows too much ... the customer will probably catch on. It's good to know who your customer is. But remember, every customer values their privacy.