PRIVACY FOR SALE

The recent Wikileaks scandal has proven that privacy online is a serious problem that matters to users, businesses and even the government, raising questions about our electronic footprints in cyberspace and the data we share without too much care. It is easy to wonder about our security in the web if even the US government with “the most protected database" and the best technology available is a victim of this, so how can you feel safe browsing and providing information, buying a book on Amazon, or making a payment online?....It seems that users should not be naive or "dumb f…" as said by Facebook CEO, Mark Zuckerberg some time ago:

Zuck: I have over 4,000 emails, pictures, addresses, SNS
[Redacted Friend's Name]: What? How'd you manage that one?
Zuck: People just submitted it.
Zuck: I don't know why.
Zuck: They "trust me"
Zuck: Dumb fucks.

If Facebook CEO, and founder of one the most popular social networks, where millions of people share their private information every day, has this attitude toward privacy, there is too much to be concerned about our safety and privacy rights when using the web.

Our information can be used for different purposes and we do not know the extent and the limits of it. For example, Google uses people’s search criteria to adapt advertisement based on web searches, interests, tastes and geographic locations. However the use of information can go beyond, as Google had to admit that it "screwed up" in collecting individuals' emails via WiFi networks, and the revelation that a Google engineer was fired for snooping on underage teenagers' messages.  It is scaring that users’ behaviors are been used for such purposes, invading individual’s confidentiality.

Even if the purpose is to use data for marketing strategies to help companies to track preferences in order to develop more attractive products, the access to this information should be approved by the users in some way. Otherwise this would be as giving personal information to a total stranger about likes and dislikes, and what is even worse, sometimes the most sensitive personal information.

Although the FTC is trying to regulate and protect the consumer, the current regulations are very unclear and cannot be properly enforced.  In the short run legislation will not provide the necessary actions needed to protect the consumer personal information, as it is stated by reporter Bianka Bosker in her article “Why The FTC's Online Privacy Plan Won't Stop The Information Free-For-All".

At the end the best advice for users would be to behave online as it would be in public, as well as thinking more than once when sharing information in the web because it does not make sense to close the door in your house if you open your personal information on a computer.

GROUPON: A TEMPTATION FOR BUSINESSES AND CUSTOMERS

Groupon, the most recognizable daily deal website, has become the web phenomenon and the temptation for most of the dominant giants in the web, easy to understand when you consider that in only 2 years, has become the leader in this trend, representing a new way of saving money and a marketing opportunity for local businesses. The company has successfully raised about $175 million in early investment money, $50 million a month in revenue and a valuable amount of approximately 35 million users in 30 countries.

The most recent bid has been proposed by Google, a considerable 5.3 billion offering (accordingly to other sources 6 billion) that centers the attention this week as it would give even more fuel for the search giant, which would access to a valuable customer data base divided in geographic segments, as well as access to merchants information around the world, allowing Google to improve its operations in a local perspective. At the same time Google wants to avoid that competitors like Microsoft, Yahoo and Facebook gain power by buying a company like Groupon. Other competitors are taking other approaches, like Amazon that is getting ready for the fight after acquiring Living Social, the most powerful Groupon’s rival.

Even though it seems a very good deal for Groupon to make business with Google, the option of going  alone is also a temptative one, since it has built in such a short amount of time a really successful company, as has been recognized by Forbes Magazine as “the fastest growing company ever“. Besides that, the giants in the web with all their power have tried to start similar businesses without positive outcomes.

 A recognized example is the Facebook case in which CEO Mark Zuckerberg decided not to sell to Yahoo for $1 billion four years ago, and now it is worth more than $20 billion. And the comparison gets more interesting considering that at the time of the offering Facebook had 100 millions in revenue, compared to Groupon’s 500 million revenue announced for this year.

Even tough competitors are rapidly increasing, it is not easy that a different company will grow at that rate, since in technology the first mover gets an extremely important advantage. The Groupon’s clones would need an important workforce to be able to compete and make agreements with merchants in order to get even better deals, it wouldn’t be easy to scale at such a frantic pace. Moreover its huge presence makes competition a challenge for those companies that want to get any of its market share.

If Groupon decides to remain in the market by itself has to considered some important strategies in order to maintain its dominant position, figuring out how to compete with creative startup businesses that can offer more attractive discounts, thus switching the crowd towards other substitutes, and becoming an obstacle on its road.

SOCIAL NETWORKS: BIG OPPORTUNITY FOR SMALL BUSINESSES

Let’s start for saying that social networks have revolutionized the way people communicate and share information with one another. Millions of people are using the social media to interact on a daily basis, and the audience will continue to grow….so should small business pay attention to this potential market to promote its products?

Social media is an excellent marketing opportunity that small businesses should use to enhance their competitive advantages by adding value to their business, improving their customer service and boosting their market awareness. Taking advantage of these powerful engines can allow companies to attract customers from different segments, competing at the same level with huge corporations for market share and brand recognition. Social media is a powerful market research tool that enables marketers to get the right information about the customer needs and wants in order to achieve customer satisfaction.

Even though the most important function of using social networks for business purpose is to interact with clients, companies are getting new customers through its use, according to a recent study that explore the role of social media in customer acquisition, indicates that almost one-half of small businesses are successfully connecting with prospects through social networks.

Zappos, the online retailer, is a great example of how a company can take advantage of this resource, the aggressive use of social media has been a key factor of its success, the amazing way in which it uses social media by talking to their customers and prioritizing customer service has turned this once small company into a billion dollar business.

However to succeed every company must applied its own strategy when using social media to promote its business. It is important to establish policies, rules and regulations in order to share the right information and handle specific situations to protect the company for brand damages. Moreover because the content cannot be fully controlled companies should be prepared to deal with negative feedback and its appropriate response. Finally every small business should adapt and personalize the use of these social interactions because the benefits definitely outweigh the risks.

MESSING WITH YOUR BRAIN

Have you ever bought something that you don’t really need it? Or have you ever been in a situation in which you convince yourself that it would be a waste of money to buy something and some days later you end up buying the same thing?...if the answer is yes, you have been driven by your subconscious, emotional part of your brain. The analysis of this behavior is studied for a new marketing trend called Neuromarketing, which examine the affective response to marketing stimuli in order to predict the consumer conduct while making a purchasing decision by analyzing pupil dilatation, heart rate, blood pressure, and body heat…

No, it is not a movie, even though it seems just like Minority report, where people walk and sensors detect their eyes in order to personalize marketing information adapted to the individual profile. It seems this time the subliminal marketing knows what goes inside of our minds, how our brain is influenced by different factors when taking decisions in the purchase of a product.

It is not a secret that human decisions and preferences have always been influenced in different ways, even since childhood, adults try to convince children to do specific tasks stimulating their brains in a way that they know will bring results. Companies are doing the same with their products, using modern analytical strategies to peer into the minds of their consumers in order to effectively market and sale. Companies are going beyond the normal marketing strategies, using colors, shapes, smells, and different strategies to touch the senses of their customers. Successful companies such as Apple are leading the use of Neuromarketing to attract the world attention, making products appealing to their customers’ eyes.

We cannot deny the importance in the incredible progress of science to get a better knowledge and understanding of our brain, it is clear that this type of market analysis will tend to keep growing, providing marketers with even more powerful tools to analyze the consumer behavior. Even though the advantages in this type of research, is easy to wonder if its use will also bring negative consequences, leading to a debate about the ethics to equilibrate the parts involved in order to avoid the manipulation in the consumer decision. We hope that the inversion of capital in this field will lead not just to increase companies’ revenues but also to maximize customer satisfaction and to develop strategies in order to influence people thinking in issues such us environmental awareness.