1 INTRODUCTION
The expectations for M-Commerce are very high. The mobile user seeks for facilitation of his daily habits and companies anticipate generating high revenue stream through new mobile applications. After telecommunication companies have paid high prices for the UMTS licenses in Europe M-Commerce has started to be the new hype. In those countries which did not have auctions but beauty contests M-Commerce has been also shifted into the spotlight. Although M-Commerce is still in its infancy, it predicts to have a huge impact on many ways of people’s lives. New buzz words like anywhere and anytime have evolved in order to describe the great potential of M-Commerce. Growth opportunities in terms of new arising mobile business models seem promising but only the future will be able to answer the question of success.
Mobile devices offer a broad range of opportunities from entertainment service e.g. music, games or video up to transactions e.g. banking, shopping, auctions. It is still unclear if all the emerging opportunities can be commercialized successfully. Nevertheless, many scenarios of how the world could be like in the future have been made. Below an excerpt of the daily routine of a future mobile user is presented: (For following paragraphs see Ovum 2000(b), p. 23-24)
“Nancy D`Amato prepares to leave her office just before five o’clock. She uses her mobile phone for a quick check of the local weather forecast, sees that fines conditions are expected for the evening, and decides to leave her umbrella by her desk. Nancy is due to meet her boyfriend Peter at seven o’ clock, so she has two hours in town to waste. As soon as the clock reaches five, she receives a text message telling her that the bar across the street has a ”happy hour“ when drinks are cheaper. Nancy deletes the message almost without reading it. She has given her mobile service provider permission to send her unsolicited local promotional messages after five – otherwise she would have to pay a higher subscription rates – but that does not mean she actually has to read the message, does it?
Five minutes later another message arrives, with a coupon offering a discount at the local branch of her favorite coffee bar. She shows the coffee-shop attendant the numbered message on her phone’s screen, and he keys in the number on the till when charging for the coffee.
[...]
Table of Contents
1. Introduction
1.1 Problem Statement / Relevance
1.2 Definitions in Mobile-Commerce
1.2.1 Mobile-Commerce
1.2.2 Mobile-Advertising
1.3 M-Commerce Market Overview
1.3.1 Mobile Markets
1.3.2 Mobile Value Chain/Web
1.3.3 Enabling Technologies
1.3.3.1 Network Technologies
1.3.3.2 Service Technologies
1.3.3.3 Localization Technologies
1.3.4 Mobile Devices
1.4 Attributes of M-Commerce
2. Permission Marketing
2.1 Permission in Customer Relationship Management
2.1.1 Definition of Permission Marketing
2.1.2 The Concept of Permission
2.1.3 Mobile Customer Relationship Management
2.2 “Opting” in M-Marketing
2.2.1 The Six-Step Opting Program
2.2.2 Spam and Clutter
2.3 Permission Intensity
2.3.1 Intravenous Permission Level
2.3.2 Points Permission Level
2.3.3 Personal Relationship Level
2.3.4 Brand Trust Level
2.3.5 Situational Level
2.4 Target Marketing through Personalized Advertising
2.4.1 Push & Pull Advertising
2.4.2 Advertising in the M-Commerce Context
2.5 Special Features of Permission Marketing in M-Commerce
2.5.1 Medium for Mobile Advertising
2.5.2 Pros and Cons compared to Traditional Media
2.6 Summary
3. M-Infomediary
3.1 Concept of Infomediaries as Advocates of Mobile Consumers
3.1.1 Definition of M-Infomediaries
3.1.2 Services to the Consumer
3.1.3 Services to the Vendors
3.2 M-Infomediary Types
3.2.1 Customer vs. Vendor Oriented Infomediaries
3.2.2 Open vs. Closed Relationship with Buyers and Sellers
3.3 Building Infomediaries in M-Commerce
3.3.1 Three Stages to Build an Infomediary
3.3.2 Potential Candidates for M-Infomediaries
3.4 Customer Profiling with the Enabling Technologies of M-Commerce
3.4.1 Customer Profiling for Personalization
3.4.2 Customer Data
3.4.3 Privacy Intrusion
3.5 Benefits and Challenges of M-Infomediaries
3.5.1 Benefits of M-Infomediaries
3.5.2 Challenges of M-Infomediaries
3.6 Summary
4. Permission Marketing Infomediation in M-Commerce
4.1 Permission Marketing Infomediary Business model
4.1.1 The Merged Model
4.1.2 Revenue Streams
4.2 Infomediary Types and Permission Intensity
4.2.1 Four Types of Permission Marketing Infomediaries
4.2.2 Permission-Based Infomediation in M-marketing
4.3 Permission Marketing Infomediaries vs. Direct Relationship Marketing
4.3.1 Re-Intermediation
4.3.2 Economics of Intermediation
4.4 Permission Marketing Infomediaries vs. Interruption Marketing
4.4.1 Weaknesses of Classical Marketing Approaches
4.4.2 Economics of Interruption
4.5 Permission-based and location-sensitive-advertising in M-Commerce
4.5.1 Typology of M-Commerce Advertising
4.5.2 Location-Specific-Advertising
4.5.3 Revenue Streams of Location-Based-Services
4.5.4 Finding the Right Balance
4.6 Summary
5. Empirical Survey
5.1 Set of Criteria
5.2 Case Examples
5.2.1 Mr.AdGood and MindMatics
5.2.2 LoopCityScout
5.2.3 Kompazz/Appollis Interactive AG
5.2.4 SMS-Rabatt
5.2.5 AdMox
5.3 Results
6. Conclusion
6.1 Possible Conclusions of Research
6.2 The Future of M-Commerce
Research Objectives and Key Topics
The core objective of this thesis is to examine how infomediaries can utilize permission marketing to create a successful, value-driven business model within the M-Commerce advertising sector, specifically addressing the balance between personalized customer targeting and privacy protection.
- Theoretical development of a "Permission Marketing Infomediation" (PMI) business model.
- Analysis of mobile-specific consumer characteristics and data privacy challenges.
- Evaluation of customer profiling techniques and location-based advertising opportunities.
- Comparative analysis of permission-based approaches versus traditional interruption marketing.
- Empirical validation through case study examples of existing mobile marketing service providers.
Excerpt from the Book
1.1 PROBLEM STATEMENT / RELEVANCE
More than any other marketing medium, the mobile device makes one-to-one marketing reality. It gives marketers an unprecedented communication channel to deliver promotions, coupons, value-added information and other services that are uniquely personalized to the customers needs. But only if all marketing activities can incorporate the theme of permission marketing the future of Mobile-Commerce advertising will be prosperous. It will become of greater importance in M-Commerce to have a precise idea of customer’s needs and preferences. New Business Models that have the ability to capture information about mobile users and use this data for commercial purposes like M-Advertising are necessary. Information Intermediaries (Infomediaries) are such a business model. Collected customer profiles may then be used to the customer’s advantage so as to offer them exactly what they want. Advertisers have the opportunity to target their consumers with highly personalized and relevant services.
Mobile devices, used for business and pleasure, are accessible 24 hours and 7 days per week and are rarely shared with others. They are “like a personal extension of you” (Walton 2000, p. 1). However, with this great opportunity of highly targeted marketing comes a range of extraordinary responsibilities to ensure customer satisfaction and to avoid “spam” or abuse of personal customer information. Nevertheless, if this mobile opportunity is handled with sensitivity and intelligence the advertising industry can generate high revenues. In fact, in Germany over 1 mil. mobile users have already subscribed to permission-based advertising (Schwarz 2001, p. 290).
Summary of Chapters
1. Introduction: This chapter provides an overview of the M-Commerce market, defines core terminology, and establishes the research focus on permission marketing and infomediation.
2. Permission Marketing: This chapter explores the principles of permission marketing as a customer-centric strategy to replace intrusive advertising methods.
3. M-Infomediary: This chapter introduces the infomediary business model, detailing how agents can act as advocates for consumers by managing data and personal preferences.
4. Permission Marketing Infomediation in M-Commerce: This chapter merges the concepts of permission marketing and infomediation to develop a new, integrated business model for mobile advertising.
5. Empirical Survey: This chapter presents and evaluates five real-world case examples of mobile marketing companies to provide empirical insight into current industry practices.
6. Conclusion: This chapter summarizes the research findings and discusses the future trajectory of the M-Commerce advertising ecosystem.
Key Keywords
M-Commerce, Permission Marketing, M-Advertising, Infomediary, Personalization, Mobile Customer Relationship Management, Location-Based-Services, Contextual Marketing, Consumer Privacy, Business Models, Direct Relationship Marketing, Mobile Data, Opt-in, Opt-out, Targeted Advertising.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on defining a viable business model for M-Commerce advertising by converging the concepts of permission marketing and information intermediation (infomediaries) to ensure consumer privacy and effective targeting.
Which marketing challenges does this work address?
The work addresses the inefficiency and intrusive nature of traditional "interruption marketing" and examines how mobile devices enable a superior, personalized one-to-one marketing approach.
What is the primary objective of the proposed PMI model?
The primary objective is to create a win-win scenario where mobile users receive value-added, relevant content in exchange for their permission and data, while advertisers achieve higher conversion rates with lower dispersion losses.
Which scientific methodology is employed?
The study utilizes a mixed-method approach: a theoretical grounding based on extensive literature review followed by an empirical survey analyzing five distinct case examples of M-Commerce companies.
What is covered in the main body of the thesis?
The main body covers the M-Commerce market environment, the theory of permission marketing and infomediation, the development of the "Permission Marketing Infomediation" (PMI) business model, and an empirical analysis of its real-world application.
Which terms best characterize this work?
Key terms include M-Commerce, Permission Marketing, Infomediary, Personalization, Location-Based-Services, and Consumer Privacy.
How does the author define an 'infomediary' in this context?
An infomediary is defined as a trusted third party, acting as an agent or broker, that aggregates personalized consumer information to facilitate better matches between vendors and consumers while protecting privacy.
What role does 'location' play in the advertising model proposed?
Location acts as a critical dimension of contextual marketing, allowing marketers to provide highly relevant, timely services—such as localized coupons or navigation assistance—that are specifically tailored to the user's current physical environment.
- Quote paper
- Dipl. Kfm. Ali-Reza Moschtaghi (Author), 2002, Permission Marketing of Infomediaries in M-Commerce Advertising, Munich, GRIN Verlag, https://www.grin.com/document/3074
