Marketing Scope

Marketing Scope

1. Understanding
2. Concept Marketing
3. Evaluation Management
4. Differences Fundamental Concepts Sales With Marketing Concepts

A. Understanding Marketing

In general, marketing tends to be defined as the process of distribution of goods or services produced by a company or koorporat to consumers.

Note the following definitions-definitions:

1. Understanding Marketing According to H. Nystrom
2. Marketing is an activity distribution of goods or services from the hands of producer to consumer.
3. Definition of Marketing by Philip and Duncan
4. Marketing is something that covers all the steps needed to put used or tangible goods into the hands of consumers.
5. Understanding Marketing The Marketing Association of the United States of America / American Association Merketing
6. Marketing is the execution of trading activities which are directed to the flow of goods and services from producers to consumers.

source: http://organisasi.org

If we look at the above sense, then marketing is defined as an activity only distribute products from producers to consumers. With such understanding to be no difference between marketing and sales.

Until now many people, including some executives, have not understood the real difference two terms are different concepts.

In the concept sale, a company launching a new product. After that, the company has used any method of sale to woo consumers to buy the product. Having persuaded consumers, it is expected they will buy these products so the company makes a profit. So, in the sales concept, directing the company in accordance with consumer demand for its products. This is different to the concept of marketing. In the marketing concept, companies step begins with the assessment to find out what consumers want or need. Later, the company is developing a product that can meet the desires or needs of consumers, from here the company a profit. Here, companies adapt their products to meet demands

or consumer needs.

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Social Marketing

Social marketing is the systematic application of marketing, along with other concepts and techniques, to achieve specific behavioral goals for a social good.[1] Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole. For example, this may include asking people not to smoke in public areas, asking them to use seat belts, or prompting to make them follow speed limits.

Although "social marketing" is sometimes seen only as using standard commercial marketing practices to achieve non-commercial goals, this is an over-simplification.

The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial". This does not mean that commercial marketers can not contribute to achievement of social good.

Increasingly, social marketing is being described as having "two parents"—a "social parent" = social sciences and social policy, and a "marketing parent" = commercial and public sector marketing approaches.

Beginning in the 1970s, it has in the last decade matured into a much more integrative and inclusive discipline that draws on the full range of social sciences and social policy approaches as well as marketing.

Social marketing must not be confused with social media marketing.


Applications of social marketing

Health promotion campaigns in the late 1980s began applying social marketing in practice. Notable early developments took place in Australia. These included the Victoria Cancer Council developing its anti-tobacco campaign "Quit" (1988), and "SunSmart" (1988), its campaign against skin cancer which had the slogan Slip! Slop! Slap!.[2]

WorkSafe Victoria, a state-run Occupational Health and Safety organization in Australia has used social marketing as a driver in its attempts to reduce the social and human impact of workplace safety failings. In 2006, it ran "Homecomings", a popular campaign that was later adopted in New South Wales, Queensland and Western Australia, and named the 2007 Australian Marketing Institute Marketing Program of the Year[3]

DanceSafe followed the ideas of social marketing in its communication practices.[citation needed]

On a wider front, by 2007, Government in the United Kingdom announced the development of its first social marketing strategy for all aspects of health.[4]

Two other public health applications include the CDC's CDCynergy training and software application,[5] and SMART (Social Marketing and Assessment Response Tool).[6]

Social marketing theory and practice has been progressed in several countries such as the US, Canada, Australia, New Zealand and the UK, and in the latter a number of key Government policy papers have adopted a strategic social marketing approach. Publications such as "Choosing Health" in 2004,[4] "It's our health!" in 2006; and "Health Challenge England" in 2006, all represent steps to achieve both a strategic and operational use of social marketing. In India, especially in Kerala, AIDS controlling programs are largely using social marketing and social workers are largely working for it. Most of the social workers are professionally trained for this particular task.[citation needed]

A variation of social marketing has emerged as a systematic way to foster more sustainable behavior. Referred to as Community-Based Social Marketing (CBSM) by Canadian environmental psychologist Doug McKenzie-Mohr, CBSM strives to change the behavior of communities to reduce their impact on the environment [7] Realizing that simply providing information is usually not sufficient to initiate behavior change, CBSM uses tools and findings from social psychology to discover the perceived barriers to behavior change and ways of overcoming these barriers. Among the tools and techniques used by CBSM are focus groups and surveys (to discover barriers) and commitments, prompts, social norms, social diffusion, feedback and incentives (to change behavior). The tools of CBSM have been used to foster sustainable behavior in many areas, including energy conservation [8], environmental regulation [9] and recycling [10]
[edit] Types of social marketing

Social marketing uses the benefits and of doing social good to secure and maintain customer engagement. In social marketing the distinguishing feature is therefore its "primary focus on social good, and it is not a secondary outcome. Not all public sector and not-for-profit marketing is social marketing.

Public sector bodies can use standard marketing approaches to improve the promotion of their relevant services and organizational aims. This can be very important, but should not be confused with social marketing where the focus is on achieving specific behavioral goals with specific audiences in relation to different topics relevant to social good (e.g.: health, sustainability, recycling, etc.). For example, a 3-month marketing campaign to encourage people to get a H1N1 vaccine is more tactical in nature and should not be considered social marketing. Whereas a campaign that promotes and reminds people to get regular check-ups and all of their vaccinations when they're supposed to encourages a long-term behavior change that benefits society. It can therefore be considered social marketing.

As the dividing lines are rarely clear it is important not to confuse social marketing with commercial marketing.

A commercial marketer selling a product may only seek to influence a buyer to make a product purchase.

Social marketers, dealing with goals such as reducing cigarette smoking or encouraging condom use, have more difficult goals: to make potentially difficult and long-term behavioral change in target populations.

It is sometimes felt that social marketing is restricted to a particular spectrum of client—the non-profit organization, the health services group, the government agency.

These often are the clients of social marketing agencies, but the goal of inducing social change is not restricted to governmental or non-profit charitable organizations; it may be argued that corporate public relations efforts such as funding for the arts are an example of social marketing.

Social marketing should not be confused with the Societal Marketing Concept which was a forerunner of sustainable marketing in integrating issues of social responsibility into commercial marketing strategies. In contrast to that, social marketing uses commercial marketing theories, tools and techniques to social issues.

Social marketing applies a "customer oriented" approach and uses the concepts and tools used by commercial marketers in pursuit of social goals like Anti-Smoking-Campaigns or fund raising for NGOs.
[edit] Social marketing confusion

In 2006, Jupitermedia announced its "Social Marketing" service,[11] with which it aims to enable website owners to profit from social media. Despite protests from the social marketing communities over the hijacking of the term, Jupiter decided to stick with the name.[12] However, Jupiter's approach is more correctly (and commonly) referred to as social media optimization. Another similar, but different marketing approach is Holistic Marketing which also aims to benefit society, but through aligning the values and ethics of employees and owners of a company with their marketing goals, regardless of the product being marketed.
[edit] History of social marketing

Social marketing began as a formal discipline in 1971, with the publication of "Social Marketing: An Approach to Planned Social Change" in the Journal of Marketing by marketing experts Philip Kotler and Gerald Zaltman.[13] However, earlier, social marketing had already been used as a tool for birth control in India, where a persuasion based approach was favored over a legislative approach.[14]

Craig Lefebvre and June Flora introduced[verification needed] social marketing to the public health community in 1988,[15] where it has been most widely used and explored. They noted that there was a need for "large scale, broad-based, behavior change focused programs" to improve public health (the community wide prevention of cardiovascular diseases in their respective projects), and outlined eight essential components of social marketing that still hold today. They are:

1. A consumer orientation to realize organizational (social) goals
2. An emphasis on the voluntary exchanges of goods and services between providers and consumers
3. Research in audience analysis and segmentation strategies
4. The use of formative research in product and message design and the pretesting of these materials
5. An analysis of distribution (or communication) channels
6. Use of the marketing mix—utilizing and blending product, price, place and promotion characteristics in intervention planning and implementation
7. A process tracking system with both integrative and control functions
8. A management process that involves problem analysis, planning, implementation and feedback functions[16]

Speaking of what they termed "social change campaigns", Kotler and Ned Roberto introduced the subject by writing, "A social change campaign is an organized effort conducted by one group (the change agent) which attempts to persuade others (the target adopters) to accept, modify, or abandon certain ideas, attitudes, practices or behavior." Their 1989 text was updated in 2002 by Philip Kotler, Ned Roberto and Nancy Lee.[17] In 2005, University of Stirling was the first university to open a dedicated research institute to Social Marketing,[18] while in 2007, Middlesex University became the first university to offer a specialized postgraduate programme in Health & Social Marketing.[19]

In recent years there has been an important development to distinguish between "strategic social marketing" and "operational social marketing".

Much of the literature and case examples focus on operational social marketing, using it to achieve specific behavioral goals in relation to different audiences and topics. However there has been increasing efforts to ensure social marketing goes "upstream" and is used much more strategically to inform both "policy formulation" and "strategy development".

Here the focus is less on specific audience and topic work but uses strong customer understanding and insight to inform and guide effective policy and strategy development.

http://en.wikipedia.org/wiki/Social_marketing

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Marketing Plan

A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.The marketing planning process
Marketing process can be realized by the marketing mix in step 4. The last step in the process is the marketing controlling. In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead.


To be most effective, the plan has to be formalized, usually in written form, as a formal "marketing plan." The essence of the process is that it moves from the general to the specific, from the vision to the mission to the goals to the corporate objectives of the organization, then down to the individual action plans for each part of the marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages, and is amended.


Marketing planning aims and objectives

Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the "corporate mission," which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing activities with corporate mission.


This "corporate mission" can be thought of as a definition of what the organization is, of what it does: "Our business is …". This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans.


Abell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be used [1]. Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology]."


Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy - indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Superordinate Goals." "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed." [2] If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture.


A "traditional" - albeit product-based - format for a "brand reference book" (or, indeed, a "marketing facts book") was suggested by Godley more than three decades ago:


1. Financial data—Facts for this section will come from management accounting, costing and finance sections.
2. Product data—From production, research and development.
3. Sales and distribution data - Sales, packaging, distribution sections.
4. Advertising, sales promotion, merchandising data - Information from these departments.
5. Market data and miscellany - From market research, who would in most cases act as a source for this information. His sources of data, however, assume the resources of a very large organization. In most organizations they would be obtained from a much smaller set of people (and not a few of them would be generated by the marketing manager alone).


It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to identify those existing (external and internal) factors which will have a significant impact on the future plans of the company." It is clear that the basic material to be input to the marketing audit should be comprehensive.
Accordingly, the best approach is to accumulate this material continuously, as and when it becomes available; since this avoids the otherwise heavy workload involved in collecting it as part of the regular, typically annual, planning process itself - when time is usually at a premium.
Even so, the first task of this annual process should be to check that the material held in the current facts book or facts files actually is comprehensive and accurate, and can form a sound basis for the marketing audit itself.
The structure of the facts book will be designed to match the specific needs of the organization, but one simple format - suggested by Malcolm McDonald - may be applicable in many cases. This splits the material into three groups:


1. Review of the marketing environment. A study of the organization's markets, customers, competitors and the overall economic, political, cultural and technical environment; covering developing trends, as well as the current situation.
2. Review of the detailed marketing activity. A study of the company's marketing mix; in terms of the 7 Ps - (see below)
3. Review of the marketing system. A study of the marketing organization, marketing research systems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and `garbage in, garbage out' applies with a vengeance.


+  Portfolio planning. In addition, the coordinated planning of the individual products and services can contribute towards the balanced portfolio.
+  80:20 rule. To achieve the maximum impact, the marketing plan must be clear, concise and simple. It needs to concentrate on the 20 percent of products or services, and on the 20 percent of customers, that will account for 80 percent of the volume and 80 percent of the profit.
+  7 Ps: Product, Place, Price and Promotion, Physical Environment, People, Process. The 7 Ps can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plans.


It is only at this stage (of deciding the marketing objectives) that the active part of the marketing planning process begins. This next stage in marketing planning is indeed the key to the whole marketing process.
The "marketing objectives" state just where the company intends to be at some specific time in the future.
James Quinn succinctly defined objectives in general as: Goals (or objectives) state what is to be achieved and when results are to be accomplished, but they do not state "how" the results are to be achieved.[3] They typically relate to what products (or services) will be where in what markets (and must be realistically based on customer behavior in those markets). They are essentially about the match between those "products" and "markets." Objectives for pricing, distribution, advertising and so on are at a lower level, and should not be confused with marketing objectives. They are part of the marketing strategy needed to achieve marketing objectives. To be most effective, objectives should be capable of measurement and therefore "quantifiable." This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. An example of such a measurable marketing objective might be "to enter the market with product Y and capture 10 percent of the market by value within one year." As it is quantified it can, within limits, be unequivocally monitored, and corrective action taken as necessary.


The marketing objectives must usually be based, above all, on the organization's financial objectives; converting these financial measurements into the related marketing measurements.He went on to explain his view of the role of "policies," with which strategy is most often confused: "Policies are rules or guidelines that express the 'limits' within which action should occur."Simplifying somewhat, marketing strategies can be seen as the means, or "game plan," by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 8 P's. Examples are:

1.  Price - The amount of money needed to buy products
2.  Product - The actual product
3.  Promotion (advertising)- Getting the product known
4.  Placement - Where the product is located
5.  People - Represent the business
6.  Physical environment - The ambiance, mood, or tone of the environment
7.  Process - How do people obtain your product
8.  Packaging - How the product will be protected

(Note: At GCSE the 4 Ps are Place, Promotion, Product and Price and the "secret" 5th P is Packaging, but which applies only to physical products, not services usually, and mostly those sold to individual consumers)

In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a useful framework for deciding how the company's resources will be manipulated (strategically) to achieve the objectives. However, they are not the only framework, and may divert attention from the real issues. The focus of the strategies must be the objectives to be achieved - not the process of planning itself. Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 7 Ps.
The strategy statement can take the form of a purely verbal description of the strategic options which have been chosen. Alternatively, and perhaps more positively, it might include a structured list of the major options chosen.


One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the best time for each element of the strategy to be implemented is often critical. Taking the right action at the wrong time can sometimes be almost as bad as taking the wrong action at the right time. Timing is, therefore, an essential part of any plan; and should normally appear as a schedule of planned activities.Having completed this crucial stage of the planning process, you will need to re-check the feasibility of your objectives and strategies in terms of the market share, sales, costs, profits and so on which these demand in practice. As in the rest of the marketing discipline, you will need to employ judgment, experience, market research or anything else which helps you to look at your conclusions from all possible angles.

Source : http://en.wikipedia.org/wiki/Marketing_plan

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Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Competitive advantage over traditional advertising

One major benefit of online advertising is the immediate publishing of information and content that is not limited by geography or time. To that end, the emerging area of interactive advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy.

Another benefit is the efficiency of advertiser's investment. Online advertising allows for the customization of advertisements, including content and posted websites. For example, AdWords, Yahoo! Search Marketing and Google AdSense enable ads to be shown on relevant web pages or alongside search results of related keywords. Revenue models 

The three most common ways in which online advertising is purchased are CPM, CPC, and CPA. 

• CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for exposure of their message to a specific audience. "Per mille" means per thousand impressions, or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user action.
• CPV (Cost Per Visitor) is where advertisers pay for the delivery of a Targeted Visitor to the advertisers website.
• CPV (Cost Per View) is when an advertiser pays for each unique user view of an advertisement or website (usually used with pop-ups, pop-unders and interstitial ads).
• CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market. Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.
• CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge.
• Similarly, CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.
• Also common, CPO (Cost Per Order) advertising is based on each time an order is transacted.
• CPE (Cost Per Engagement) is a form of Cost Per Action pricing first introduced in March 2008. Differing from cost-per-impression or cost-per-click models, a CPE model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. Engagement is defined as a user interacting with an ad in any number of ways.[1]
• Cost per conversion Describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. The definition of "Conversion" varies depending on the situation: it is sometimes considered to be a lead, a sale, or a purchase.

Source :  http://en.wikipedia.org/wiki/Online_advertising

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Affiliate Marketing

Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network, the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third parties vendors.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.

Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies. 


Origin

The concept of revenue sharing—paying commission for referred business—predates affiliate marketing and the Internet. The translation of the revenue share principles to mainstream e-commerce happened almost four years after the origination of the World Wide Web in November 1994.[citation needed]

The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million dollars per year on the Prodigy service. In 1989, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy network (Reference-Chicago Tribune-Oct, 4, 1995) (Ref The Sunsentinal 1991 and www.dankawaski.com). Mr. Tobin applied for a patent on tracking and affiliate marketing on January 22, 1996 and was issued U.S. Patent number 6,141,666 on Oct 31, 2000. Mr. Tobin also received Japanese Patent number 4021941 on Oct 5, 2007 and U.S. Patent number 7,505,913 on Mar 17, 2009 for affiliate marketing and tracking (Reference-Business Wire-Jan, 24, 2000).

Cybererotica was among the early innovators in affiliate marketing with a cost per click program.

During November 1994, CDNOW launched its BuyWeb program. CDNOW had the idea that music-oriented websites could review or list albums on their pages that their visitors may be interested in purchasing. These websites could also offer a link that would take the visitor directly to CDNOW to purchase the albums. The idea for remote purchasing originally arose because of conversations with music label Geffen Records in the fall of 1994. The management at Geffen wanted to sell its artists' CDs directly from its website, but did not want to implement this capability itself. Geffen asked CDNOW if it could design a program where CDNOW would handle the order fulfillment. Geffen realized that CDNOW could link directly from the artist on its website to Geffen's website, bypassing the CDNOW home page and going directly to an artist's music page.

Amazon.com (Amazon) launched its associate program in July 1996: Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page.[citation needed]

When visitors clicked from the associate's website through to Amazon and purchased a book, the associate received a commission. Amazon was not the first merchant to offer an affiliate program, but its program was the first to become widely known and serve as a model for subsequent programs.

In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.

Historic development

Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005. MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.

Currently the most active sectors for affiliate marketing are the adult, gambling, retail industries and file-sharing services. The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix.
Source : http://en.wikipedia.org/wiki/Affiliate_marketing

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Ad Serving

Ad serving describes the technology and service that places advertisements on web sites. Ad serving technology companies provide software to web sites and advertisers to serve ads, count them, choose the ads that will make the website or advertiser most money, and monitor progress of different advertising campaigns.

Overview

An ad server is a computer server, specifically a web server, that stores advertisements used in online marketing and delivers them to website visitors.

The content of the webserver is constantly updated so that the website or webpage on which the ads are displayed contains new advertisements -- e.g., banners (static images/animations) or text -- when the site or page is visited or refreshed by a user.

In addition, the ad server also performs various other tasks like counting the number of impressions/clicks for an ad campaign and report generation, which helps in determining the ROI for an advertiser on a particular website.[citation needed]
 Ad servers come in two flavors: local ad servers and third-party or remote ad servers. Local ad servers are typically run by a single publisher and serve ads to that publisher's domains, allowing fine-grained creative, formatting, and content control by that publisher. Remote ad servers can serve ads across domains owned by multiple publishers. They deliver the ads from one central source so that advertisers and publishers can track the distribution of their online advertisements, and have one location for controlling the rotation and distribution of their advertisements across the web.

The history of ad serving

The first local ad server was released by NetGravity in January 1996 for delivering online advertising at major publishing sites such as Yahoo and Pathfinder. The company was founded by Tom Shields and John Danner, and based in San Mateo, California. In 1998, the company went public on NASDAQ (NETG), and was purchased by DoubleClick in 1999. NetGravity AdServer was then renamed to DART Enterprise. In March 2008 Google acquired DoubleClick. Google has continued to improve and invest in DART Enterprise. DART Enterprise 7.5 shipped on October 25, 2010.

The first remote ad server was released by FocaLink Media Services in February 1996 for controlling the delivery of online advertising or banner ads. The company was founded by Dave Zinman and Jason Strober, and based in Palo Alto, California. In 1998, the company changed its name to AdKnowledge, and was purchased by CMGI in 1999.

Another remote ad server was introduced by David Stein at Burst! Media in January 1996 for controlling online advertising or banner ads. The company was founded by Jarvis Coffin, David Stein and Bob Hanna, and based in Katonah, New York. In 2006, the company went public on the London Stock Exchange's Alternative Investment Market (BRST).

Ad server functionality

The typical common functionality of ad servers includes:

* Uploading advertisements and rich media.
* Trafficking ads according to differing business rules.
* Targeting ads to different users, or content.
* Tuning and optimization based on results.
* Reporting impressions, clicks, post-click & post-impression activities, and interaction metrics.

Advanced functionality may include:

* Frequency capping so users only see messages a limited amount of time. (Advertisers can also limit ads by setting a frequency cap on money-spending)
* Sequencing ads so users see messages in a specific order (sometimes known as surround sessions).
* Excluding competition so users do not see competitors' ads directly next to one another. (Usually done by bidding on keywords)
* Displaying ads so an advertiser can own 100% of the inventory on a page (sometimes known as Roadblocks).
* Targeting ads to users based on their previous behavior (behavioral marketing or behavioral targeting).
* Targeting specific IP-adresses i.e. targeting specific individuals or companies

Ad targeting and optimization

One aspect of ad serving technology is automated and semi-automated means of optimizing bid prices, placement, targeting, or other characteristics. Significant methods include:

* Behavioral Targeting - Using a profile of prior behavior on the part of the viewer to determine which ad to show during a given visit. For example, targeting car ads on a portal to a viewer that was known to have visited the automotive section of a general media site.
* Contextual Targeting - Inferring the optimum ad placement from information contained on the page where the ad is being served. For example, placing Mountain Bike ads automatically on a page with a mountain biking article.
* Creative Optimization - Using experimental or predictive methods to explore the optimum creative for a given ad placement and exploiting that determination in further impressions.

Source : http://en.wikipedia.org/wiki/Ad_serving

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