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internet marketing strategy

internet marketing strategy Search Produced 25 Matching Articles
Cyber-democracy or cyber-hegemony? Exploring the political and economic structures of the Internet as an alternative source of information
Cyber-democracy or cyber-hegemony? Exploring the political and economic structures of the Internet as an alternative source of information
Library Trends

ABSTRACT

Although government regulation of the Internet has been decried as undercutting free speech, the control of Internet content through capitalist gateways--namely, profit-driven software companies--has gone largely uncriticized. The author argues that this discursive trend manufactures consent through a hegemonic force neglecting to confront the invasion of online advertising or marketing strategies directed at children. This study suggests that "inappropriate content" (that is, nudity, pornography, obscenities) constitutes a cultural currency through which concerns and responses to the Internet have been articulated within the mainstream. By examining the rhetorical and financial investments of the telecommunications business sector, the author contends that the rhetorical elements creating "cyber-safety" concerns within the mainstream attempt to reach the consent of parents and educators by asking them to see some Internet content as value laden (sexuality, trigger words, or adult content), while disguising the interests and authority of profitable computer software and hardware industries (advertising and marketing). Although most online "safety measures" neglect to confront the emerging invasion of advertising/marketing directed at children and youth, the author argues that media literacy in cyberspace demands such scrutiny. Unlike measures to block or filter online information, students need an empowerment approach that will enable them to analyze, evaluate, and judge the information they receive.

**********

According to figures provided by the U.S. Census Bureau (2001), more than half of school-age children (6 to 17 years) had access to computers both in school and at home in the year 2000 (57 percent). With some 17 million children using the Internet in some capacity, including email, the Web, chat rooms, and instant messaging (Silver and Garland, 2004, p. 158), the Census Bureau estimates that 21 percent use the Internet to perform school-related tasks, such as research for assignments or taking courses online.

While these statistics underscore the growth and popularity of the Internet, particularly in schools and educational institutions, concerns have grown about the "safety" of using computer-mediated communication technology. Since the Internet became a mass medium in 1995, parents and schools have approached online content with reservation. As such, politicians, educators, child advocacy groups, and, most importantly, the computer industry, have been vocal advocates for patrolling the Internet and censoring certain kinds of illicit or objectionable content. Beginning in the late 1990s, Federal Trade Commission member Christine Varney summarized the emerging concerns about online safety:

All of us agree that children's online safety concerns are real and
pressing and that we must support the involvement of parents
raising children in this new, digital age. We understand that we
must all work together--industry, law enforcement, educators,
advocates--if American families are to realize the potential of this
new medium for enriching the lives of our children and fostering
their future success. (Rubin and Lamb, 1997)
Starting in 1997, an Internet/Online Summit was held in Washington, D.C., to enhance the safety and benefits of cyberspace for children and families. Key political figures, such as former vice president Al Gore and former attorney general Janet Reno, joined parents, as well as politicians, law enforcement officials, and educational administrators, to launch a national public education campaign, "America Links Up: An Internet Teach-In," designed to help Americans understand how to guide kids online (Rubin & Lamb, 1997).

On October 21, 1998, former president Bill Clinton signed into law the "Children's Online Privacy Protection Act" (COPPA). This measure was enacted by Congress on April 21, 2000, to "prohibit unfair or deceptive acts or practices in connection with the collection, use, or disclosure of personally identifiable information from and about children on the Internet" under the age of thirteen (Grossman, 2000). Along this trajectory, Congress passed the Children's Internet Protection Act (CIPA) and the Neighborhood Internet Protection Act (NCIPA) in December 2000, which required schools and libraries that receive federal money for Internet connections to adopt Internet safety policies in 2001. The proposed safety measures include usage agreements for proper student use of this medium, audit-tracking devices to supervise student Internet perusal, and software filtration devices designed to block inappropriate sites in schools (Trotter, 2001).

In 2002 the Bush administration proposed a "National Strategy to Secure Cyber Space," offering security recommendations for U.S. citizens, businesses, and organizations using computers (Carlson, 2002). Since then the Federal Trade Commission has offered testimony before special committees and the House of Representatives about online pornography through a series of "law enforcement actions against fraud artists whose deceptive or unfair practices involve exposing consumers, including children, to unwanted pornography on the Internet" (Federal Trade Commission, 2004, p. 1).

In addition to these federal initiatives, many states have measures designed to protect children from online predators. In Texas, Attorney General Greg Abbott added more investigators to the Texas Internet Bureau to keep kids safe from those who use online means to prey on children. As Assistant Attorney General Sparks explained, "The Attorney General wants the public to know that he's tasking people with patrolling the Internet and trying to make it safe for kids; the down side is that more and more children on a daily basis are getting online and on the Internet and as every additional child gets on, that's one more potential target" (quoted in Ochoa, 2003).

Likewise, educators have expressed concerns about online information overload. According to one school administrator, accessing the Internet in schools is less predictable: "If you used to bring your class to the school library, you pretty much had a sense of what was available for the children to research; now you have no idea ... they are going to hit sites that are appropriate and sites that are inappropriate" (quoted in Shyles, 2003, p. 176).

Despite a commitment to online "security" in schools, libraries, and homes from so many constituents, few recommendations have materialized into solid strategies or funding initiatives. Almost all of the proposed solutions and policies ignore the more relevant question of how private computer companies, Internet service providers, corporations, and governments stand to gain financially and politically by deciding what kind of information will be "censored" and what kind will be promoted. In fact, it could be argued that the Internet content "crisis" dominating public policy and mainstream media coverage has produced a cultural climate ripe for the commercial exploitation of parents and educators. In this article I argue that such a discursive trend manufactures consent through a hegemonic force that overlooks the invasion of advertising or marketing strategies targeted at young people online. By examining the rhetorical and financial investments of the telecommunications business sector, I contend that the mainstream articulation of "Internet safety" invites parents and educators to regard some Internet content as value-laden (sexuality, obscene language), while disguising the interests and authority of profit-minded commercial enterprise (advertising and marketing).

What is more, the democratic potential of the Internet as a means to accessing alternative information and perspectives otherwise absent from the mainstream media continues to be threatened by the consolidation of increasingly powerful global media giants, such as Time Warner and Microsoft, which have much to gain from controlling the content Internet users access at home or at school. Consequently, an examination of the political and economic forces on the Internet is necessary for librarians and educators interested in understanding the benefits and limits of the Internet as a means of alternative communication.

EXPLORING THE MEANS TO FILTERING ONLINE CONTENT

Parental Guidance

As a result of this discourse, a number of solutions have been advanced to ward off illicit content appearing on the computer screens of young Internet users, beginning with parental guidance. CyberTipLine grew out of the 1997 Internet/Online Summit and is currently in operation today. Run by the U.S. government and the National Center for Missing and Exploited Children, parents can notify authorities of incidents of online child pornography and child predation. Another derivative of the summit's "America Links Up" project is the industry-sponsored "GetNetWise" Web site, which was launched in 1999. The "user empowerment" service, which involves a coalition of numerous Internet industry partners and advocacy organizations, (1) offers parental advice, including information about filters to block sexually explicit material, as well as a variety of tools to help parents and caregivers monitor a child's online activities and find browsers for kid-friendly sites. As one sponsor, AT&T, notes in its promotional material, "Our involvement with GetNetWise reflects our commitment to help users have the best possible online experience" (GetNetWise, 2004).

A more well-known parental guidance initiative, passed in April 2000, was the Children's Online Privacy Protection Act (COPPA). In accordance with COPPA, the Federal Bureau of Investigation offers "A Parent's Guide to Internet Safety," which advises parents to "utilize parental controls provided by your service provider and/or blocking software" and "Monitor your child's access to all types of live electronic communications (chat rooms, instant messages, Internet Relay Chat, etc.), and monitor your child's email" (Federal Bureau of Investigation, 2004).

Other parental guidance measures have been created to address online advertising and marketing as well as issues of privacy. Parent advocacy groups, such as Commercial Alert, Consumer Action, the Center for Media Education, and Computer Professionals for Social Responsibility, have taken up the cause of parents concerned about online marketing measures targeted at children. For example, Commercial Alert has made requests to the Federal Communications Commission and the Federal Trade Commission to require disclosure of embedded advertising in a variety of media and has created a "Parent's Bill of Rights" seeking to empower parents in the face of an aggressive commercial culture (Commercial Alert, 2003).

Proof-of-Age/Shielding Systems

In addition to parental guidance, many online providers and Webmasters have adopted proof-of-age/shielding systems that use credit card access as another means of content filtering. While COPPA sought to protect children thirteen and under, those located in the fourteen to eighteen year range were not covered by legislation. Providing proof of age before being allowed to access the content of a desired online site emerged as a means to address this gap. This system works in the same way that fraud-screening technology works: merchants collect user information at their Web sites for instant age or identity verification. Once online users submit their name, zip code, date of birth, and age, they are checked through an international electronic database of government-issued identifications. This allows site providers or merchants to determine the consumer's identity within seconds. Sometimes additional measures, such as online name signature, are required so that user signatures are bound to a public record.

Proprietary Environments

Another reaction to the discourse of online safety has been the advocacy of proprietary environments, where content is screened by editors into specific categories. For example, the leading Internet service provider, America Online (AOL), provides a blocking service that allows users (ostensibly parents) to limit a child's selected screen name to either a "Kids Only" area, which is recommended for children under twelve, or to a preteen/teen environment, with restricted use of chat rooms or newsgroups. According to the site, "Kids Only" is a collection of educational resources and entertainment areas as well as a preselected collection of child-oriented Internet sites, with AOL staff monitoring of message boards and chat rooms. AOL also promotes the company's "Parental Phone Line" for instructions and advice on choosing and maintaining the settings of this product (the premise here is that the settings are likely to be tampered with by savvy teens and preteens).

In addition to "Kids Only," AOL has aggressively marketed its AOL@School service, which had been adopted by more than 14,000 schools by 2004 (Williams, 2003). AOL@School offers six online learning portals for grades K-5, middle school, and high school so that students can access Web sites that have been preselected by educators as content and age appropriate. The software needed to access the portals comes with AOL's "parental controls" designed to "help ensure a safe, secure, age-appropriate experience" that can include school-controlled email, chat, and instant messaging (AOL, 2004). The popularity of "child safe" proprietary environments has not waned as Web browsers and popular search engines have created their own directories in an attempt to create safe havens for (and develop customer loyalty from) younger online users. Yahooligans' "Web Guide for Kids" is a collection of predominantly commercial links to online games, music, TV, science, news, jokes, "cool pages," arts and entertainment, and sports. Like most commercial proprietary environments, Yahooligans is riddled with advertisements and synergistic ties to commercial media products.

Internet Ratings Systems

For those seeking additional regulatory measures, Internet rating systems offer another approach. Unlike the rating system for television content that is uniformly and centrally organized by the television industry, Internet ratings are not assigned consistently by a centralized group of online content providers. The goal is the same, however: industry self-regulation over government regulation. According to ratings system advocates, many of whom work in the software and computer industry, Internet ratings are designed to make it "safe" for schools and parents to let their children access nonpornographic material without government directives. According to Paul Resnick, chairman of the World Wide Web Consortium group at the MIT Laboratory for Computer Science, which includes AT&T Laboratories and Microsoft, the Platform for Internet Content Selection (PICS) was originally created to allow parents, teachers, and librarians to review questionable materials that they would not want their children to come across on the Internet (Resnick, 1997).

Resnick explains, "prior to PICS there was no standard format for labels, so companies that wished to provide access control had to both develop the software and provide the labels. PICS provides a common format for labels, so that any PICS-compliant selection software can process any PICS-compliant label" (Resnick, 1997, p. 107). Yet unlike uniform rating labels,

a single site or document may have many labels, provided by
different organizations. Consumers choose their selection software
and their label sources (called rating services) independently.
This separation allows both markets to flourish: companies that
prefer to remain value-neutral can offer selection software
without providing any labels; values-oriented organizations,
without writing software, can create rating services that provide
labels. (Resnick, 1997, p. 107)

One of the leading Internet rating systems that uses PICS is SafeSurf, a group that offers ratings along with other tools to help parents and "net citizens" filter online information. One means to achieving its goal is to encourage online content providers to fill out a questionnaire using content descriptors to rate their Web sites. Unlike government- or industry-wide regulatory labeling efforts that may "brand" content, SafeSurf is interested in maintaining First Amendment rights by offering content providers greater latitude to self-rate their Web material. For example, rather than branding content that includes nudity as pornographic, users can distinguish their inclusion of nudity as scientific, sociocultural, artistic, titillating, graphic, or illegal. Once content providers rate their Web sites or directories, they can download the SafeSurf rated logo of their choice. A SafeSurf staff member verifies the rating and sets up the chosen ratings label. Parents and educators can then use PICS compliant software/browsers to read the settings and to use the ratings to filter content that is not desired. As the SafeSurf group explains, "PICS allows content providers to rate their pages and parents to set passwords and levels for their children. Then, PICS compliant software/browsers will read the settings and use the ratings to filter content that is not desired" (SafeSurf, 2004a).

The Internet Content Rating Association (ICRA) is another international, independent, nonprofit organization that seeks to "empower the public, especially parents, to make informed decisions about electronic media by means of the open and objective labeling of content" (ICRA, 2004). ICRA's dual aims are to "protect children from potentially harmful material and to protect free speech on the internet." Like SafeSurf, Web authors complete an online questionnaire describing the content of their site, upon which ICRA generates a content label using PICS computer coding, which the author adds to his/her site. Parents and Internet users can then set their Internet browser to accept or decline access to Web sites based on the labels and user preferences. PICS is now a standard feature included in Internet software and browsers such as Microsoft Explorer.

Third-Party Rating Systems

While ratings systems are designed to allow content providers to voluntarily label the content they create and distribute, third-party rating systems "enable multiple, independent labeling services to associate additional labels with content created and distributed by others. Services may devise their own labeling systems, and the same content may receive different labels from different services" (ICRA, 2004). In other words, online watchdog groups interested in protecting children from online predators or illicit material can offer their own set of restrictive control tools for material that they deem to be objectionable. One such group is WiredSafety, formerly known as CyberAngels, led by Parry Aftab, an experienced international attorney and author of The Parent's Guide to Protecting Your Children In Cyberspace and A Parent's Guide to the Internet. Lauded as "one of Internet safety's most influential players," (Hill, 2000), Aftab has emerged as a nonprofit leader who has created coalitions with many governmental and nongovernmental agencies, including the FBI's Innocent Images anti-child pornography and exploitation task force. She was appointed the founding American director of UNESCO's global Child Safeline project and currently heads WiredSafety, "the largest online safety, education and help group in the world" (WiredSafety, 2004). With more than 9,000 volunteers worldwide, the group is a coalition of various Internet safety groups, such as WiredKids.org, WiredTeens, Teenangels, and CyberMoms and CyberDads, and their affiliate, WiredCops.org, all of whom patrol the Internet for child pornography, child molesters, and cyberstalkers. Additionally, WiredSafety offers a variety of educational and help services for online users. Some of its volunteers access and review family friendly Web sites, filter software products and Internet services, and post their findings on the Web. The group even has a "Cyber911 help line" that offers net users access to help when they need it online. SurfWatch is another online ratings system designed for parental supervision. It too prevents access to Web, gopher, and FTP sites that SurfWatch's team of "net-surfers" have found objectionable. They maintain an updated list of "not-for-children" Web sites that can be subscribed to electronically.

Commercial Filtering Software and Databases

A more intensive effort to censor "inappropriate" online content has come from commercial filtering software companies (often working in conjunction with powerful Internet content providers and third-party ratings systems). Also known as "censorware," these filtering products, which include Net Nanny, CyberPatrol, Cyber Sitter and N2H2, range in cost from $25.99 to $80 and are heavily marketed to parents, educational administrators, and libraries. Designed to be installed on home or school computers or to work with network routers or firewall, cache, or proxy devices, these products claim to offer safety measures for youth using computers for online research and recreation. Essentially, most of these programs work by using a combination of filtering and blocking strategies, such as the blocking of Web sites denoted through keywords and databases and the blocking of individual Web sites by specific URLs.

One of the first filtering programs--and most commercially lucrative--is Net Nanny. According to its promotional Web site, Net Nanny[R] 5 is "the world's leading parental control software, [and] provides customers with the broadest set of Internet safety tools available today. Our award-winning software gives customers control over what comes into and goes out of their home through their Internet connection, while respecting their personal values and beliefs" (Net Nanny, 2004). Launched in 1998, Net Nanny is a tool allowing parents, teachers, administrators, and librarians to screen incoming and outgoing Internet information, particularly pornographic material. By identifying and blocking various sites and subjects considered inappropriate, the program blocks the Web addresses of known pornographic and illicit sites. Parents can add to the collection of forbidden "code words" used to detect and flag sites. The program works with all major online providers and in email. It can also prevent children from accessing specific files on a PC's hard drive, floppy drive, or CD-ROM. Like audit-tracking software programs, Net Nanny keeps a record of a child or student's Internet perusal, meaning that parents and teachers can check up on the sites that a child has perused.

With all of these features, it is no surprise that Net Nanny's popularity and financial success has led it to offer additional blocking software such as Net Nanny's Pop-Up Scrubber, which blocks pop-up ads, Net Nanny's AdFree, which blocks a range of Internet ads, spyware, and profiling cookies, and Net Nanny's Chat Monitor, which monitors and filters Instant Messaging and other online chat.

Another commercial service, CyberPatrol, works in the same way as Net Nanny by filtering harmful Web sites, newsgroups, and Web-based email. Also commercially successful, CyberPatrol licenses its "CyberLIST" database of site ratings to several additional vendors. Among its ratings categories are violence/profanity, partial nudity, full nudity, sexual acts, gross depictions, intolerance, satanic or cult, drugs and drug culture, militant/extremist, sex education, questionable/illegal and gambling, and alcohol and tobacco. Likewise, Cybersitter blocks sites and subjects deemed unacceptable by Internet users. It offers site lists for automatic blocking and allows parents to have added input in restricting programs, files, and games. According to PC Magazine, Cybersitter offers the strongest filtering and monitoring features, blocking content related to violence, hate, sex, and drugs (Munro, 2004). It also allows parents to choose from thirty-two content categories, such as free email sites, file sharing, wrestling, cults, and gambling, for those interested in added blocking categories. As with other similar products, it lets parents filter and monitor their children's activities without their knowledge and can record both sides of Instant Messaging sessions.

Joining in the mix of filtering software providers is N2H2 (acquired by Secure Computing in 2003), a company endorsed by eTesting Labs and the Kaiser Foundation as "the most effective and accurate" filtering program and extensive database of objectionable Internet sites (N2H2, 2004). It offers two product lines: Sentian, which is geared toward helping businesses manage their employee Internet access, and Bess, a popular program and database adopted by many schools and endorsed by the American Library Association to help schools and libraries meet CIPA rules for young Internet users.

With so many companies vying to be the best provider of filtering software, it is not surprising that Microsoft would venture into this area by offering its own industry standard Internet filter aimed at regulating youth-directed online content. AS part of its monopoly on the Internet browser software Internet Explorer (which accompanies its Windows platform), Microsoft has also implemented a filtering system that can be configured to block or log all data transfers, including World Wide Web pages, newsgroups, types of messages within any newsgroup, Internet Relay Chat, or Internet hosts known to have objectionable material for children.

QUESTIONING THE VIABILITY OF ONLINE "SAFETY" INITIATIVES

Although some of these Internet resources and restrictions make sense for certain schools depending upon the age group and grade level of Internet users, there are some problematic areas within each method that should be cause for concern. The main underlying difficulty raised by these "quasi-solutions" is that they narrowly define what is "inappropriate," relegating most objections to issues of nudity, sexuality, trigger words, or adult content. This focus neglects to confront the invasion of advertising or marketing strategies directed at children. In many respects, Internet commercialism seems to be a more serious concern, but one would never guess this considering the ad-strewn and content-compromised "solutions" to appropriate Internet content.

First, although child-directed advertising might not be as blatantly offensive, it certainly fosters "values" that, at present, are not considered objectionable to most governmental, parental, and commercial watchdog groups. Although the first tenet of media literacy explains that all media are constructions, the problem with advertising and marketing strategies is that they are so much a part of our social landscape and our everyday life that they appear to be natural. Subsequently, the conceptualization of what is inappropriate for children or students only helps to sustain the interests of a commercial system through the omission of advertising; advertising is omitted and thereby deemed appropriate. Just as parents, educators, and anticommercial groups, such as Commercial Alert, have protested the commercial imperatives of satellite-delivered school programs such as Channel One, a company that offers schools free satellite equipment in exchange for a captive audience of students forced to watch its daily, advertisement-driven programming, and the computer equivalent ZapMe!, which tried to turn "the schools and the compulsory schooling laws into a means of gaining access to a captive audience of children in order to extract market research from them and to advertise to them" (Commercial Alert, 2000), we need to be equally circumspect about the amount of advertising and marketing proliferating on "Kids Only" sites and via kid-safe filtering software (Schiffman, 2000).

Moreover, sustaining an Internet-based market economy whereby consumer software programs and proprietary environments become the antidote to inappropriate material is directly at odds with democratic means of dealing with these issues through public discourse, political action, and critical media literacy skills. Most of the products previously analyzed are produced and distributed by profit-making and publicly traded enterprises, such as the media conglomerates Time Warner, Microsoft, and Yahoo!. Obviously, it is good business to create and sell blocking software products or to offer third-party rating systems that decide--for parents, educators, and librarians--what is in their (both children/students and the company's) best interest. In a self-fulfilling business transaction, reports of inappropriate content as well as media and political hype about the Internet as an "unsafe environment" lend credence to, or create a functionalist need for, such products. As stated earlier, advertising is overlooked as "inappropriate content" because it is part of everyday consumer culture, unlike pornographic and hate sites, which exist beyond the boundaries of what is deemed "good" for children and teenagers. As Marxist philosopher Antonio Gramsci (1971) has noted, hegemony works within the terrain of everyday life and requires the consent of audiences--or in this case, parents, educators, and librarians. Hence, the commonly employed rhetorical elements that create paranoia about Internet content within the mainstream attempt to reach the consent of parents and educators by inviting them to see some Internet content as value-laden or problematic while camouflaging the interests and authority of a profitable computer software and hardware industry.

Although serious discussion about government regulation goes beyond the purviews of this study, several concerns must be raised regarding commercial software programs. First, the decision to block some sites over others is a very subjective decision. The problem with this kind of regulation is that some groups and individuals might attempt to censor material (under the guise of concerns for "safety") that threaten their own political and/or religious agenda. Dependence upon commercial Internet service providers and related filtering products limits the democratic principle of the free flow of information and puts commercial enterprise at the helm of online navigation, a troubling fact given that corporate culture can often be extremely conservative and self-serving when it comes to making censorship decisions. In one instance, America Online was charged with using filters to block out several Web sites associated with "liberal" political organizations. One of the top stories featured in Censored 2001 was AOL's liberal blacklist, whereby sites for the Democratic National Committee, Ralph Nader's Green Party, Ross Perot's Reform Party, the Coalition to Stop Gun Violence, and Safer Guns Now were labeled as "not appropriate for children" (Phillips & Project Censored, 2001, p. 111). Ironically, the youth filters did not prevent access to nudity or to conservative groups, including the National Rifle Association. Designed for America Online by the Learning Company, an educational software company owned by Mattel, such filtering programs confirm suspicions about the process of labeling and omitting Web sites according to political and economic interests.

This kind of censorship raises flags about the capabilities of large media conglomerates to limit access to material deemed politically at odds with commercial interests. Inasmuch as Disney was in a position to rebuke the distribution of Fahrenheit 9/11, Michael Moore's political documentary produced through Disney's Miramax film division, large multimedia conglomerates are poised to censor content that is politically or economically damaging to their enterprise.

Second, some of the trigger words used to block Internet sites might be legitimate subjects for research. For example, the often-cited example of an Internet user not being able to access research on breast cancer or sex education (if these words were denoted as trigger words) is indeed troubling. As PC Magazine reviewers of Cybersitter 9.0 explain, "Cybersitter errs on the conservative side; by default it may block sites you would deem okay" (Munro, 2004). A telling example of this problem is offered in an article featured in Electronic School Online. Author Lars Kongshem writes,

CYBERsitter yanks offending words from web pages without providing
a clue to the reader that the text has been altered. The mangled
text that results from this intervention might change the meaning
and intent of a sentence dramatically. For example, because
"homosexual" is in the list of CYBERsitter's forbidden words, the
sentence, "The Catholic church is opposed to all homosexual
marriages" appears to the user as, "The Catholic church is opposed
to all marriages." (Kongshem, 1998)

Likewise, Karen Schneider, a librarian for the Environmental Protection Agency, has led a filtering software assessment project involving more than thirty librarians around the world. She has found that filters "are not reliable and they're hard to maintain" (cited in Gebeloff, 1999). In one example, recipes using "chicken breast" were blocked due to sensitive word triggers. Rob Gebeloff, author of Screening Zone: The Trouble with Net Filters and Ratings, continues to problematize the use of all types of "censorware" programs by pointing out numerous gray areas in judging content. He asks:

Do you want your kids going to Web sites that discuss birth
control? What about AIDS education? Or what about the
exploration of Mars? [A recent New York Times article pointed out
that one filtering program blocked out every Web site with the
word "sex" in it, including a site that had the word
"marsexploration" in it's title]. So clearly, if you're going to go
with filtering, be prepared to make tough calls. (Gebeloff, 1999)
Peacefire--a group critical of filtering software--explains, "We have always felt that filtering software is not only ineffective, but also a violation of the trust between students and staff... Unfortunately, most of the censorware companies block anything controversial, not just pornography. I find it very discouraging that this includes information like suicide prevention, safe sex, and gay youth resources" (g. Jenkins, quoted in Kongshem, 1998).

Third, students and computer hackers have already found flaws with such programs and have managed to acquire information from sites that have been blocked. When product evaluators at Consumer Reports tested over nine different Web content filters, including AOL's parental controls, they discovered that, although AOL offered the best protection, as much as 20 percent of easily located Web sites containing sexually explicit content, violently graphic images, or promotion of drugs, tobacco, crime, or bigotry slipped through the filters. In fact, "Net Nanny displayed parts of more than a dozen sites, often with forbidden words expunged but graphic images intact" (ConsumerReports.Org, 2001).

Fourth, there is an inherent conflict of interest when the main advocates challenging the government's attempts to protect children from online predation and pornography are the very same groups that seek to profit directly from a "free marketplace" of online smut. In its June 2004 press release, SafeSurf applauded the Supreme Court for its ruling in the Internet pornography case Ashcroft v. ACLU "because the High Court concluded that Internet filtering solutions, such as those originally proposed by SafeSurf over nine years ago, are a better way to proceed than the government restrictions imposed under the Child Online Protection Act" (Jules, 2004). As the chairman of SafeSurf, Ray Soular, exclaimed, "This decision has revealed that the High Court has seen the wisdom in protecting the Internet from governmental censorship and in enabling parental discretion through an intelligent filtering and labeling system. Maybe now, Congress will focus more attention on what has become known as the 'Safe Surfing' method of protecting children online" (Jules, 2004, emphasis added). Yet the court's wisdom is more the result of intense lobbying than constitutional insight. SafeSurf has been lobbying Congress about the constitutionality of the Child Online Protection Act since its implementation, arguing its case before the Congressional Commission on Child Online Protection (COPA) in July 2000,just a few months after COPA's passage.

Gebeloff addresses this conflict of interest in his critique of net filters and ratings for Money Talks:

I once had a chance to interview Gordon Ross, the fellow who
designed Net Nanny.... I asked Ross how he, with his background
in computer systems, comes up with the list of bad words and
unacceptable Web sites that his program blocks. Basically, he told
me, it started from a list he put together and then evolved over
time to reflect feedback from users. "And we have a disclaimer
saying we're not liable for the list." (Gebeloff, 1999)
This leads Gebeloff to deduce the ironic disposition of this practice: "We don't want the government to be our censor, so why should we turn the job over to a computer programmer from British Columbia? The answer, of course, is that we shouldn't, but that's what happens when a parent buys filtering software, installs it, and then walks away from their child's machine" (Gebeloff, 1999).

With laws mandating the use of various forms of censorware to meet government regulations like CIPA, and liability issues at school, the library, or work, it is no surprise that the marketplace of ideas has increasingly channeled its financial resources into for-profit filtering products. Companies easily win over school and library administrators by guaranteeing adherence to government legislation as well as liability protection and parental approval. For $14.95, SafeSurf markets Safe Eyes as an effective tool that "uses the N2H2 website database which has been proven time after time to be the most accurate database available ... In recent tests, both the U.S. Department of Justice and the Kaiser Family Foundation found N2H2 to be the best" (SafeSurf, 2004b). Official endorsements from prominent governmental, industrial, and educational groups are an added selling point, such as N2H2's official stamp of approval from the American Library Association for meeting CIPA rules.

As for the pervasiveness of filtering products, a poll conducted as early as 1998 at the Technology + Learning conference revealed that 51 percent of surveyed teachers, technology directors, school board members, and other educators had adopted some form of censorware for all or some students in their district (cited in Kongshem, 1998). Another poll conducted in 2000 by MSNBC.com found that "many users rely on an Internet service provider, or ISP, to do the filtering for them. The big names in this market are America Online, The Microsoft Network, Mayberry USA, Rating-G Online and Getnetwise.com. Filters that are popular with Christians and conservatives include Family.Net, Integrity Online and Hedgebuilders.com" (Nodell, 2000). With no centralized board or groups to review the practices of these filtering companies or ISPs for their effectiveness or appropriateness, it is easy to see how those seeking to meet the needs of their schools, libraries, work, or homes turn to various programs without clear indication of their validity and reliability, especially institutions pressured to have some "safety plan" to meet CIPA legislation or issues of liability.

Accordingly, it is no surprise that filtering producers and marketers stand to gain financially by lobbying for nongovernmental solutions to censorship, as well as a deregulatory media environment allowing telecommunications firms to continue to merge and expand their online assets and streamline Web content. MSNBC's interest in polling Internet user preferences for filtering is not purely for newsworthiness given its partnership with Microsoft. The same is true for AOL Time Warner. What is more, in addition to cornering the market for libraries, schools, and homes, many of these companies have ventured into the work environment. As MSNBC.com reporter Bobbi Nodell explains, "many filter companies are moving into the corporate market, which is booming because employers are concerned about workers 'wasting time' on the job and want to keep them from shopping, checking investments and playing games ... the corporate market is expected to grow from $60 million in 1999 to $500 million in 2004" (Nodell, 2000).

Confirmation of this trend can be found with Net Nanny. Looksmart, a leading business firm in online search technology, recently acquired Net Nanny for approximately $5 million in cash and stock in April 2004. Indeed, in their ability to promote and streamline commercial content (while limiting "inappropriate" sites), monitor Internet user habits, profile users for direct marketing purposes, and market products to users, filtering software products can be considered stepchildren of the highly lucrative commercial search engines, which became the most lucrative Web properties in 2003 due to their increasing ability to promote commercial Internet content. As LookSmart CEO Damian Smith stated in 2004:

This acquisition is both strategic and prudent for LookSmart ...
Strategic, because integrating our search technology into Net
Nanny provides a stronger product for their users, while also
providing LookSmart with a desktop platform froth which to launch
high margin search and paid listings applications. Prudent, because
Net Nanny is expected to produce positive margin contributions for
LookSmart in 2004. (LookSmart, 2004)
In other words, this partnership, along with MSN funding, will allow LookSmart to apply its tracking and marketing capabilities to Net Nanny's software and related proprietary environments. As the company explains to its shareholders, such a partnership "will enhance the leading online filtering software and provide high-quality proprietary search traffic for LookSmart."

While filtering technology continues to thrive in the Internet's "free market" system, and as Web content continues to grow exponentially, the profits for filtering technology continue to expand commercially. Net Nanny's acquisition by LookSmart makes clear that one of the leading "protectors" of illicit online content is poised to become a predator of tracking and marketing to today's Internet users as it shifts its mission to "high margin search and paid listings applications" (LookSmart, 2004). With substantial profit predictions for filtering companies expanding their business within the corporate market, the goals to protect Internet users, including children, are becoming further marginalized at a time when schools, libraries, and businesses are becoming increasingly dependent upon filtering technology.

To make matters worse, "the Internet's status as an open forum for ideas" has come under attack since 2002 with a Federal Communications Commission (FCC) ruling that shields cable companies from having to open their networks to smaller competitors and civil liberties and consumer advocacy groups (Wolverton, 2002). As Karen Charman (2002) explains, "without public policies mandating open access," cable will monopolize broadband width, denying access to other Internet Service Providers in order to capitalize off of hyper-commercialized services that make it easier to buy products. Troy Wolverton (2002) of ZDNet news explains that "lack of competition among cable Internet providers could be a form of censorship ... even if they don't completely block Web sites, cable companies could slow access to them to the point that they become all but impossible to reach ... while they could speed access to their own sites and those of preferred partners." Subsequently, if "the Internet content accessed by K-12 youth is patrolled by capitalist institutions, rather than by the government, educational institutions, public libraries or communitarian groups, it will inevitably become more difficult 'to turn the one-way system of commercial media into a two-way process of discussion, reflection, and action'" (Thoman, 1998, p. 3). As Resnick explains, no matter how well conceived or executed, any labeling or blocking system will tend to stifle noncommercial communication since the time and energy needed to label will inevitably lead to many unlabeled sites: "Because of safety concerns, some people will block access to materials that are unlabeled or whose labels are untrusted. For such people, the Internet will function more like broadcasting, providing access only to sites with sufficient mass-market appeal to merit the cost of labeling" (Resnick, 1997, p. 106). This form of censorship is a serious problem as the possibilities for a decentralized and openly available information network will once again be delimited by a top-down capitalist hierarchy where nondominant, noncommercial, or alternative sources of information will remain peripheral.

Finally, information filtering does not prepare students to learn how to analyze and evaluate information once they are no longer using the Internet within an educational setting. This point has gained momentum as media literacy educators, librarians, and scholars have been grappling with the need for solid media literacy curricula that include a critical and analytical approach to learning with and about online communications technology (Fabos, 2004; Frechette, 2002; Paxson, 2004; Tyner, 1998).

TESTING CONTENT CONTROLS FOR CYBER-CAPITALISM

The hegemonic impulse of online safety profiteers becomes clear when we take a look at some ratings organizations, online proprietary environments, ISPs, and databases recommended by parents, the government, educational institutions, and the industry. First is SafeSurf, a rating organization that claims to be "dedicated to making the Internet safe for your children without censorship." Through an information database of objectionable sites, a proprietary environment for children, and safety tools for parents, SafeSurf believes they "will enable software and hardware to be developed that will enable more effective use of the Internet for everyone" (SafeSurf, 2004a, emphasis added).

My skepticism about claims that "everyone" benefits through SafeSurf's methods developed when visiting the SafeSurf home page, where I reviewed their policies, claims, and method to create an environment that is child tested and parent approved. What first drew my attention to their Web site were the various advertisements centered on the page. One ad displayed a large colorful rectangle for Card Service Online, "the leader in online real time credit card processing," featuring Mastercard, Visa, Discover, and American Express. Directly under it was an ad for Child Magazine, on sale at the reduced price of $7.95; its pitch: "One year for the price of a bottle." Beneath this was a bold advertisement link to "Update Microsoft's Internet Explorer to support SafeSurf Ratings." Combined, these ads validated my forewarning about the interconnections between powerful computer firms, such as Microsoft, and blocking software products.

My findings led me to presume that more advertising would emerge on the SafeSurf Wave link, which offers Kid's Wave, a list of "top sites" purportedly "devoted to educating and entertaining children." On the Kid's Wave front page, I was informed "There are great places to take your children online." Below was a grid of partial listings of SafeSurf-approved sites by category. The first category was the "favorite site of the month," which was Squigly 's Playhouse. By clicking on the cartoon graphic, my hypothesis was reaffirmed: the unfolding visual displayed a large color advertisement for Disneyland with moving graphics and a photo of the Magic Kingdom. The flashing text read "[frame 1: photo and text depicted Disneyland Resort] To really enjoy yourself here; [frame 2: photo of Mickey Mouse described as 'the Disneyland Trip Wizard'] Pick up your custom schedule here."

In case the ad was overlooked, each separate clickable Kid's Wave link for an activity or game was infused with the Disney Resort campaign. For instance, the "Squigly's Games" page had another large, flashing, color ad for Disney at the top that read, "[frame 1: photo of Mickey Mouse] Are you the Ultimate Disney fan?; [frame 2: photo of Goofey] Click here--enter to win"; on the bottom, a three-frame flashing ad targeted at parents read, "[frame 1 ] You know what you put on your card; [frame 2] but do you know what he put on your card? [picture of a crowd with a man circled in red] ; [frame 3] Find out with your free credit report online." Other pages, like "Squigly's Writing Corner" or "Brainteasers," featured separate Disney ads as well as credit card ads (presumably targeted at parents, but also at a new generation of consumers).

Disney, it seems, is a frequent advertiser on filtering software products. In addition to selling nonsoftware products, such as $40 embroidered golf shirts, Net Nanny's Internet Web site had an advertisement for Disneyland featured on its front page. Most troubling, however, is that advertising clients are also the sponsors of Net Nanny content. Among its "safe-sites" for kids were "fun" links to Disney, Crayola, and Kids Channel. Under the category "Education" was a Colgate "Kidsworld" link with prominent product advertisements for Colgate toothpaste. Describing its mission in philanthropic terms, Colgate Palmolive Co. purportedly maintains the Internet site "as a service to the Internet community." A closer look at the page proves otherwise. First, I had to type in my first name and specified password of the day, "toothpaste," in order to enter the "No Cavities Clubhouse." There, I was greeted by "Dr. Rabbit" who appeared in his clubhouse holding a toothbrush and Colgate toothpaste. Although this Web site offered "interesting oral care facts, games, and stories aimed at raising children's awareness of oral health," I could not get away from Dr. Rabbit and his Colgate endorsement no matter what activity I clicked on. Moreover, in spite of its "intention" to adhere to the Children's Advertising Review Unit (CARU) Guidelines for advertising on the Internet and online services, my name and email were still requested so that the "Tooth Fairy" could send me an email message--no doubt carrying her Colgate toothpaste and brush in cyber-flight.

Although not nearly as plastered in advertising as SurfWatch or Net Nanny, CyberPatrol's Web site unquestionably catered to/partnered with commercial Web sites, including Disney's Internet empire of kid-targeted Web addresses. A recommended "safe" site was "Toy Story Games," a game developed by Disney based on its Toy Story movie. Not surprisingly, Disney's home page was saturated with child and adult-directed advertising. Although the advertising contained here was "2nd level," meaning that I had to click on the recommended sites before being inundated with ads, the sites contained on the page remained uncontested as child appropriate.

As evidenced within these kid-designated Web sites, the far-reaching clutches of advertisers are rendered invisible in the discourse or underlying rationale of Internet protectionism. While children are deemed to be impressionable when it comes to sex, pornography, adult content, and nefarious language, concerns about manipulative advertising campaigns go largely undetected within "kid-safe" Internet domains.

CONCLUSION

Media literacy scholar Len Masterman's explanation of critical autonomy, to "develop in pupils enough self-confidence and critical maturity to be able to apply critical judgments to media texts which they will encounter in their future" (1985, p. 24; emphasis added), does not fit within the logic of commercial filters and the self-regulated corporations attempting to control and streamline Internet content. As Elizabeth Thoman (1998) clarifies, "the media have become so ingrained in our cultural milieu that we should no longer view the task of media education as providing 'protection' against unwanted messages." Hence, a learning model of awareness, analysis, reflection, action, and experience leads to better comprehension, critical thinking, and informed judgments.

Contrary to filtering mechanisms designed to censor or reduce student exposure to "inappropriate" Web sites and online information, a much better approach toward new information technologies is to go beyond teaching students about how to use computers, email, Web browsers, etc. First and foremost, the goals of media literacy must go hand in hand with computer training and online access through the instruction of critical skills by which students learn to discriminate all types of information. While there are hazards to over-regulation and under-regulation of the Internet, educators and librarians have an important role to play in developing online media literacy initiatives so that students can become discerners of the types of information they need. The goals for taking media literacy to the Internet must go beyond the critical evaluation and use of information to include an analysis and understanding of the impact of political and economic forces that drive and control much of the Internet. Within a "media literacy in cyberspace" model, the issues of ownership, profit, control, and related effects are essential to helping students formulate constructive action ideas that will lead to their own Internet choices and surfing habits (Frechette, 2002). As PICS chairman Paul Resnick (1997) admits, "no labeling system is a full substitute for a thorough and thoughtful evaluation." In the end, if the power of Internet content labeling, ratings, and restrictions are left to a third party or profit-making companies, then educators, librarians, and parents need to lobby that they serve the public interest rather than private commercial interests.
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Article marketing is a concept that can greatly boost the capabilities of a website, but unfortunately getting started with it tends to feel tedious or overwhelming. Article marketing is not a difficult task, however, so if you are serious about utilizing this form of internet marketing, the following the steps outlined below will give you [...] Related posts:
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If you visit any online internet marketing forum, you are going to find a lot of people on there promoting article marketing and other forms of internet marketing for generating opt in signups, visitors to your website, and above all else, revenue generation through ads or affiliate marketing, or even selling your own products. Putting [...] Related posts:
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Ways to Make Money Online: Warrior Special Offers From The Top Internet Marketing Forum - Mar 28,2008
If you're looking to make money online we will be visiting out favorite internet marketing forum and looking at the Warrior Special Offer section. Hopefully we will have some people call in from the forum to discuss their WSO and you can ask questions of them and myself.

Ways to make money o | warrior special offe | internet marketing f | internet marketing i | internet marketing r | internet marketing d | marketing forum


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Timing the Market for Profitable Stock Investment

It is a fact that we can use the market's trend as an ally in the buying and selling of our stock positions. This is possible because the market signals when it is starting a new bullish trend or a new bearish trend. You can know whether or not the market will support you if you bet on a stock rising, or on a stock declining. Investors can learn to time the market profitably.

A few years ago, there were many news articles about "Market Timing" and the notion that it is illegal. In their ignorance, reporters blurred the difference between illegal and legal "timing." The illegal form of timing was in reference to the way some portfolio managers bought mutual funds. Legal fund investing involves making purchases before the market closes (when the closing price of the fund is not yet known). You purchase with the knowledge that the price of fund shares will be determined at the close of market. It is illegal to buy mutual fund shares after 4 p.m. at 4 p.m. prices. The illegal activity that was in the headlines involved "investors" doing just that. They were being granted yesterday's prices on securities known to have already moved up overseas. Rather than market-timing the correct term for the activity is late-trading. In describing this activity, then New York Attorney General Eliot Spitzer said "Late trading is unambiguously criminal." Actually, there is no real timing going on except that shares were bought late at earlier prices. For example, they lock in a 4 p.m. price of a U.S.-based fund (after 4 p.m.) that holds foreign shares whose prices are "stale"--that is, they were current at the time of the foreign market's prior close but were not yet marked up by the fund to reflect market gains after the foreign market re-opened. Then they sold those shares at the marked-up prices. It is illegal for funds to permit these "under-the-table" transactions. To do so is to cheat other investors.

However, true "market timing" is not illegal. In fact, it is highly regarded among some professional investors as an effective way of improving risk-adjusted returns in portfolios of mutual funds and stocks. I have used these techniques and have found them to be quite effective. Legitimate "market timing" involves the use of probability models and various algorithms to make investments when risk is low (or when the probability of continuance of a new up-move is high), and sell them when risk is high (or the probability of continuance of a new down-move is high). That is, market timing is a legitimate tool used for "timing" purchases and sales with a goal of optimizing risk-adjusted returns for a portfolio. Its roots are in models of momentum, probability, and statistical analysis. It is not the same thing as the procedures known as "fast-trading" or "rapid trading." Theoretically, positions could be held for many months or even years. This form of "timing" can be very profitable and of lower risk than buying and holding through a market's gyrations...and it is legal.

Most professionals warn investors against market timing. That's because most investors haven't got a clue about how to do it correctly. They feel the market is going up so they invest. They are afraid the market is going to fall so they sell everything. Most of the time, they sell when they should be buying or buy when they should be selling. For the vast majority of investors, market timing is a roadmap to disaster. This tendency to market time is also manifested even among some investors who hire professional advisors. They call their advisor and say "take me out of the market...I don't feel good about it." In doing this, they are overriding the advisor's disciplines and models and imposing on the investment process the rule of emotion (trading disciplines can be designed to make a profit whether the market is trending up or down). Stockdisciplines.com received calls like this when it was in the investment advisory business. Emotions are almost always out of sync with what should be done in the market. Those who act this way are attempting to time the market without the tools necessary to do the job right. Even though the advisor may have the tools and discipline to do the job right, the client says, "don't use them...we'll use my feelings instead." This kind of investor is like the pilot who finds himself flying in the fog. Rather than using his instruments (the best way to get to a destination under the circumstances), he decides to ignore his instruments and fly by the "seat of his pants." The outcome is almost certain to be disastrous. A pilot in the fog can feel that the airplane is rising when it is actually flying level. To compensate, he is likely to put the plane into a shallow dive, and end up smashed on the side of a hill. He may feel the plane is veering to the left when it is actually veering slightly to the right. To compensate, he may head out over the ocean rather than toward his destination. By the time he realizes he is over water, he may be too low on fuel to make it back. In the same way, people who invest by how they feel are not using the proper guidance instruments. They underestimate what it takes to move in and out of the market advantageously. Professionals use instruments (indicators) to guide their timing of purchases and sales. Advisors, traders, and investors with the most consistently profitable transaction record rarely base any market decision on their feeling about the market.

An example of a single indicator that might be used in concert with others involves two simple moving averages. More specifically it involves the 10-day and 20-day simple moving averages of a market index. A person would simply watch for the 20-day moving average to rise after the 10-day moving average has crossed it to the upside. The fact that the 10-day average is above the 20-day average tells you that the shorter-term trend is supporting that of the longer-term trend. That is, there is not currently a significant trend developing that is counter to that of the 20-day average and that might cause the direction of the 20-day average to reverse. A person could use the opposite configuration of these moving averages to signal that a bearish stance is appropriate. Of course, this moving average crossover system is an example of only one of the tools that might be employed. To determine whether the market will support a bullish or bearish stance on investments, a variety of tools could be used.

Once it is determined that the market's internal stability is sufficient to support individual stock trends, there remains the problem of knowing which stocks to select and when. Many of the same indicators (but not all of them) can be used for individual stocks that were used for monitoring the market in general. It is important to recognize that no single market-measuring or stock-measuring tool known to man is perfect. There is a certain amount of fuzziness in the meaning of all of them. That is why the expert market timer uses a variety of indicators. Each one paints a part of the picture. That is also why we track a variety of indicators. The indicators are the science part of market timing. However, in the final analysis, the human side of the equation is just as important. Individuals and their own particular interpretive acumen must meld with the instruments they use in order to make profitable trading decisions. The way individuals and their instruments "dance together" is what determines the success of the market-timing enterprise. The same thing is true with regard to the timing of purchases and sales of individual stocks. The more individuals use their instruments and study the relationship between their readings and what happens in the market, the better the two will "dance" together.

Copyright 2009, by Stock Disciplines, LLC. a.k.a. StockDisciplines.com


About the Author

Dr. Winton Felt has market reviews, stock alerts, and free tutorials at http://www.stockdisciplines.com Information and videos about stock alerts and pre-surge "setups" are at http://www.stockdisciplines.com/stock-alerts Information and videos about traditional as well as volatility based stop losses are also provided.

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Internet Marketing Strategies For Explosive Network Marketing Online- Part 3: Affiliate Marketing For Network Marketers
I’m an Online Marketing Consultant specializing in helping Network Marketers succeed in their business online. My goal is to show any network marketer, marketing any network marketing company, how to virtually ensure your success and allow you to climb to the top of whatever company or business you are marketing. This is the third part of [...]
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Quicken Loans Capital Markets Update - Markets Stay Choppy

Here is today's Economic Update from Quicken Loans Capital Markets Team - for Thursday, April 30, 2009.

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Frontier Markets: The Emerging Markets of Tomorrow

The commodities boom in Brazil and Russia and the competitive advantages enjoyed by China has led to strong capital inflows, as well as a healthy balance of payment surpluses. Amongst other things, this is reflected in the substantial increase of foreign currency reserves held by these countries with BRIC countries now accounting for around 38 per cent of the world's measurable foreign currency reserves.

The BRIC countries have also proved to be the key driver of global economic growth with the average real gross domestic product growth of these countries amounting to 7.5 per cent for the last five years. Official estimates from the IMF suggests the BRIC nations will account for 31 per cent of global economic growth in 2008.

Financial services providers and the international investment community acknowledge the strong growth in these countries. As a result, the allocation of resources to these countries has expanded significantly. While the BRIC countries accounted for just 4 per cent of global market capitalisation at the end of 2003, they now account for more than 14 per cent which matches their proportion of global GDP (14 per cent, up from 9 per cent in 2003).

However, the boom in emerging market investment has also led to an increase in valuations, and in 2007 the MSCI Emerging Markets Index finally eliminated the valuation discount to the MSCI World Index (as measured in terms of P/E ratios). Even though we are expecting real GDP growth of +6.5 per cent for the emerging markets in 2008 (compared to +1.5 per cent for the US and Europe), this attractive growth profile is for the most part already priced in to current equity valuations.

A consequence of the rapid economic growth and increased financial stability of emerging markets is not just seen in their economic profiles but also in their stock valuations which are converging with those of traditional developed economies.

Investors willing to continue their exposure to business and financial developments at the lower end of the development chain, as well as those wanting to maximise the global diversification of their portfolios, should now invest in frontier markets.

Frontier Markets on the Threshold of a Growth Spurt

Frontier markets are countries which are still in the very early stages of economic development. To be classified as a frontier market, the economic strength of the economy as measured by GDP per capita must be below $10,000. In addition, the markets in question must have a relatively low level of financial market penetration. This can be gauged by comparing national market capitalisation to national GDP. Whereas the figure in traditional emerging markets is already high, the BRIC average is 136 per cent, whereas many frontier markets have equivalent figures of less than 50 per cent.

But not all countries that fulfill these criteria are classified as attractive frontier markets with the potential to become the investment markets of tomorrow.

For a country to be selected as a frontier market, it needs to have the correct overall profile in terms of the following four other aspects: (i) macroeconomic potential, (ii) well-being and education of population, (iii) development of financial markets, (iv) political stability.

In terms of the indicators for "well-being and education" and "political stability", reference has been made to indices published by international organisations such as the UN and the World Bank. Examples of attractive frontier markets include Vietnam, Kazakhstan, and Peru.

These economies are characterised by low income per capita, high economic growth, highly developed legal frameworks, and geopolitical stability. At the same time, the financial markets of these countries are still in the early stages of development. As long as the geopolitical parameters continue to develop favourably, Credit Suisse believes these frontier market economies will continue to develop in an extremely dynamic manner, which will contribute to increase their appeal to the international investment community.

Tapping into Frontier Market Potential

Investors who gain exposure to frontier markets at an early stage are likely to reap greater rewards, as many of these markets have so far slipped under the radar of investors and financial intermediaries, or have simply been inaccessible.

The best way to tap into frontier market potential is through investments in listed companies that generate the majority of their earnings in frontier markets and are also headquartered in these markets.

These companies should either be listed on the local stock exchanges, or accessible via American Depository Receipts. The launch of the Credit Suisse Frontier Market Index allows simple access to the growth potential of these markets for all equity investors. The index methodology involves a regular rebalancing that ensures the index always contains stocks that are most exposed to frontier market growth. Once a given frontier market reaches the development level of the current BRIC nations, the stocks of this country are removed from the index and replaced by others as applicable.

All economies go through different phases of economic development as part of their natural evolution. At the start of economic development, basic needs such as food, clothing, accommodation, and communications are required.

The frontier markets are still at this stage. In the second development phase, the population accumulates assets, which in turn leads to a strong increase in demand for retail banking services.

Traditional emerging markets are either at this phase already or even at the next one, where a consumer society emerges on the back of rising per capita income.

The emergence of a consumer society involves increased demand for brand names and lifestyle products. Once an economy has reached this stage which is the latest in development, the companies that are domiciled in the country in question are removed from the universe of the Frontier Market Index.

In the final phase, once the middle class and the per capita income of a country has reached a critical mass, there is increased demand for luxury goods and services such as jewellery, expensive cars, and holidays. Throughout these stages of economic development, massive investment in infrastructure becomes necessary and the resource requirements of these countries is likely to increase dramatically.


About the Author

Tom Burroughes, Editor, WealthCareers.com Specialists in Wealth Management Jobs, Asset Management Jobs and Private Banking Jobs, http://www.wealthcareers.com

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The New Marketing Era - Internet Marketing
If you have an online store, then you have the advantage of being open every day of the year. Internet marketing gives you the chance to reach a greater number of people and at a lower cost when compared to conventional methods of advertising. Thanks to the internet, there has been no time throughout history [...] Related posts:
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Why Choose Wheatgrass?

Summary: Wheat grass juice is easy to absorb and is loaded with vitamins, minerals and amino acids. If can help with weight loss, cleansing your system and improve your skins complexion.


Wheatgrass is a cereal plant that is rich in nutrients.  Human beings can digest wheatgrass if it is juiced.  It is believed that the nutritional benefits of wheatgrass are at their optimum when the shoots are between 7-10 days old.

Generally hailed as a versatile superfood, it  workss on two levels: one as a tonic or pick-me-up when energy levels are flagging and two, as a superfood to help nourish and restore the body’s natural balance

Wheatgrass contains vitamins A, C and B in forms that are easily assimilated by the body.  It is also abundant in broad spectrum of naturally balanced minerals, particularly zinc, phosphorous calcium, magnesium and selenium and contains all eight essential amino acids and most non-essential amino acids and good levels of chlorophyll. - More -

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Site layout strategy for SEO

Well as you might have noticed, the site has changed a lot today. We have totally reorganized the layout of our site so that all the navigation is done on the right hand side. Why you ask? Well, aesthetically, we like how there is more room for the actual content of the site, which is why you have come here in the first place. But through some research, I discovered a great practical reason for doing this.

I am starting to realize how important SEO (Search Engine Optimization) really is in this business. We still have very little traffic, and this is because we only get rare hits from search engines. Sure, we are on the front page of certain searches, but only with very specific or obscure terms at best. Keywords, as I mentioned before, are of utmost importance. They define your site.

Now, this doesn't really answer the question of what the practicality of switching the site all around is, but it plays a key part. To generate the best search results, search engines routinely "crawl" every site listed in their databases to process their relevance for certain key terms. Of course, deciding which web pages are most relevant to search terms involves a very complex algorithm, but most people agree that keywords play a huge roll. So, when the search engine crawls a site, it reads in a very particular manner. It begins with the title and headers, and then proceeds from the left side to the right, top to bottom. This means that if all of your navigation links other features are on the left side, a crawler will see these first and make erroneous judgments about your site. This is not something you want; you want a crawler to see your keyword rich content first!

So, if we ever do restore a left sidebar, it would contain keyword rich material, something that you want crawlers to see as soon as possible. Our tag cloud would be a good example of this. Right now, we are doing a lot of research about SEO, keywords, and getting your site at the top of search results, and we should have some valuable information in the weeks to come. I have created a new forum for discussion on this topic, so come in and discuss it with us!

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marketing budgets move from offline marketing to internet marketing and search engine optimisation
Companies have and are increasingly moving their marketing budgets to internet marketing and search engine optimisation
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Philippine markets - Philippines fruits and vegetable markets
Photos from a typical Philippine mountain market. An island paradise like the Philippines would be no true paradise without its wealth in delicious sweet tropical fruits and the huge variety of tropical vegetables.
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Research and Markets: Essential Report for Anyone Involved in the U.S. Fish & Seafood Markets Industry

DUBLIN, Ireland-(Business Wire)-March 9, 2009 - Research and Markets (Full Article

Your Email List is One of Your Most Valuable Assets

Email marketing is good for business growth - when done properly. One of the best parts about email marketing is that it keeps you in regular contact with customers. It keeps you fresh in their minds. That is why your list is so important.

"Building your list is even more important in a tough economic environment," writes Gail Goodman of Entrepreneur.com. "Your list is your pre-qualified target audience. They know you and your products and services, and they've bought from you in the past."

"They're an easier sell and a source of referrals, she adds. "That's why email marketing is still the most effective tool in your marketing mix. For fractions of a penny per person, you can stay in touch with your best customers. So when they're ready to buy -- even in a down economy -- they'll think of your business first."

Last summer, it was noted that social networking was significantly impacting emailmarketing efforts. Eventually, a study found that social networks had actually become more popular than email. That is why it can pay to integrate your social media marketing with your email marketing.

Steve Adams of Campaigner"In order to increase sales, small businesses want to keep existing customers while creating more sales ops - email helps small businesses doing that," Steve Adams, VP of Marketing with email marketing company Campaigner told me in a recent interview for SmallBuzinessNewz.

"Although social media marketing is becoming more and more popular, recent studies are finding that people still like and want to receive emails," he said. "For example a study by Epsilon and ROI Research entitled “Beyond the Click: The Indirect Value of Email” found that 84 percent of recipients liked receiving email from companies with whom they’ve subscribed to their e-newsletters. Another stat to note is from an Aberdeen report, which states that email marketing is ranked the number one recessionary marketing tool. Although there are other marketing techniques gaining popularity, email marketing is here to stay, especially for small businesses."

Tips


- Track you campaigns. A recent study from eROI showed that 18% of email marketers in the US were not tracking their campaigns. Things that should be tracked include delivery rate, open rate, click-through rate, unsubscribe rate, and conversion rate. More on this here.

Not Tracking Campaigns - eROI

- Consider spam filters. Spam filters are a hurdle all email marketers have to clear, and this even includes legitimate ones. Just because you are a legitimate email marketer, this does not mean you will make it through the filters your audience and their service providers have set up. For some specific tips on dealing with this, refer to my SBN article from last year.

- Pay special attention to subject lines and from lines. These things are critical to your open rate. A clear and familiar from line is important simply for the trust factor. People want to know who they are getting mail from before they open it. The subject line is where it gets a little trickier. You have to create subject lines that make people care enough to open it. More on subject lines.

- Provide quality content. Keep your content interesting and relevant to your audience. Think about why they would have signed up to receive messages from you in the first place.

- Consider the timing of messages. Timing can be a factor in a successful campaign. Not only marketing based on events or holidays, but also the time of day. If you are targeting an audience in the UK, for example, but you are sending from the US, you need to take time zones into consideration, and depending on who you are hoping to reach, try to get your messages sent at the right time of day. Are you hoping to catch people at the office? Get your messages out early. Are you hoping to get them after work? Maybe later is fine.

It doesn't end with these tips. There are tons of tools and applications that can help you optimize your email marketing campaigns. A lot of it requires you to use your head though. Get to know your audience, and try to judge what will keep them engaged.


Full Article
In-store & Internet Marketing
In-store & Internet Marketing
Drug Store News

ATLANTA -- In many respects, the Internet has raised more questions than it has answered. This certainly is true in the retail channel, where many companies, both large and small, are struggling to develop winning Internet strategies by answering some basic operating questions.

Does the Internet represent an incremental growth opportunity? Will it change the way consumers get information and shop? Can it be a profitable business?

Those are just a few of the questions facing retailers today. To help find some answers, Drug Store News and the National Association of Chain Drug Stores co-sponsored the In-Store and Internet Marketing conference here last month. As part of the conference, a distinguished group of retailers addressed these issues and others during a panel discussion moderated by Drug Store News editor-in-chief and associate publisher Marie Griffin. Griffin led the panel of five retailers in a discussion of Internet retailing, electronic marketing and possible avenues of vendor participation in e-commerce.

The panelists included Larry Zigerelli, executive vice president of marketing for CVS; John Gleeson, vice president of corporate strategy for Walgreens; Tim Ziemke, senior vice president of marketing and merchandising at Drug Emporium; John Roehm, director of electronic marketing for the drug division of Albertson's; and Mike Concannon, director of manufacturer relations for drugstore.com.

Following is an edited report from that panel discussion.

Marie Griffin: How do you view the Internet?

Larry Zigerelli: Intuitively, we see e-retailing as a logical, natural channel extension of our overall convenience and value strategy.

Looking at our proposition of what CVS had to offer, it seemed clear from beginning that an integrated bricks and clicks model would be the best strategy. Our IT department has been integrating the CVS and cvs.com infrastructures so there will be one common business base, one centralized conduit to customers whether they shop in a CVS store or the CVS Web site.

Today, when a CVS customer buys a prescription and other items online, two-thirds of those shoppers elect to pick up their purchase in their neighbor CYS store rather than have it shipped to them.

Online shopping seems to be perceived as the same as phoning in a prescription refill to a store.

Online customers have a tendency to do more stock-up shopping. As a result, the online shopper buys in large quantities and generates a higher average ticket: the average front-end ring at CVS.com is $40 compared with $10 in the stores.

The model that has emerged is one we believed would happen from the beginning. It is a seamless shopping experience to the customer.

John Roehm: We had the same feelings as Larry. We wanted a platform that supported the whole organization. We have different name plates for our stores, so there were opportunities for our drug and food stores to take the expertise of both parts of our organization and to come together to provide more consumer value.

Mike Concannon: We are an Internet-centric business that has gone into partnership with Rite Aid. We use net technologies to build personal relationships with our customers so we can empower them to improve their health and well being. It was important for us to look for ways to work with partners like Rite Aid and with manufacturers to create added value for our customers.

Rite Aid has developed strong customer relationships over a long period of time. We think that's a competitive advantage for us.

We use our brick-and-mortar partner to create great service for our pharmacy-centric customers. It's worked out fantastically marrying those two things up.

We're the sole distributor of General Nutrition Center products on the Internet. Wellness is a very fragmented business. GNC with 5,000 stores is the biggest brand in wellness. Drugstore.com today has a GNC store within our online store. It's the same relationship we have with Rite Aid.

Tim Ziemke: Drug Emporium through its partnership with Vitamins.com and HealthCentral.com has the same kind of triangle base. For us to offer 10,000 to 12,000 SKUs of vitamins, nutraceuticals and related health products in our stores would be an inventory nightmare, but to have it sitting in a distribution center in Louisville, we're able to handle a global business. It's a pretty good deal.

Vitamins and pharmacy rank as No. 1 and No. 2 in what we are offering to our customers.

John Gleeson: Through our pharmacy, we have terrific relationships with customers. Over the past seven years, we built a large pharmacy database with over 45 million families, and leveraging that database has really extended over into our Internet business. Our big thing is not so much to have an Internet pharmacy per se, but to ensure that our customers are able to access our stores however they want, through a phone, a store, a fax. We want our customers to have all kinds of convenient access.

Griffin: Jupiter Communications projects that online consumer health commerce spending will climb from $200 million in 1999 to $9.8 billion by 2004. That estimate includes sales of prescription pharmaceuticals, over-the-counter drugs, nutraceuticals [vitamins and nutritional supplements], personal care products [health and beauty aids] and medical supplies. How realistic are such expectations? How big a role will e-retailing play in pharmacy?

Gleeson: I can't estimate how far e-pharmacy sales will develop as far as the general public goes, but it will grow.

But our hope is that it will become an excellent way to share information with our customers. I'm not sure I can call that a business you can quantify in dollars, but it is a way to create intimate sharing of information with customers about their health care.

It's very difficult in the retail environment to provide customers with that kind of relationship. The Internet will extend beyond what pharmacists can deliver today in terms of information.

Ziemke: Content will have a lot to do with growth. If the customers are not getting as much good content today as they should, then that becomes one more service we can offer them.

Concannon: Did anyone make the right prediction about personal computers, supercenters, drive-through pharmacies? You learn and progress from there. One projection is that health and beauty sales on the Internet are going to $18 billion by 2004 with 80 percent of that being from pharmacy sales. Does that come true? Does it come true in that time frame? I don't know. For consumers learning to shop online, it is almost like learning to use personal computers. It's still not easy enough for them. It's still too hard to shop. But what will happen when there is more marketing muscle behind the Internet? Today, it's still hard to predict.

Roehm: As content evolves and as it can be linked to patient medical conditions or disease states, people will be more receptive toward that.

We're beginning now to get the infrastructure in place. We're dealing with privacy concerns.

But if consumers understand the types of medications they are on, they could make better front-end purchasing decisions, particularly with respect to OTC and vitamin products and the way they can interact with prescription products.

Zigerelli: When we were contemplating launching an online presence by buying soma.com (which became CVS.com), the first question we asked was: Do we think this business will grow to be big enough to fundamentally change the business model?

If the answer is no, then whether it becomes 5 percent or 12 percent, doesn't matter.

We concluded the answer was no, and that's because the viability of Internet retailing has to be determined on a category by category basis.

If you're in the computer business, which entails heavy analysis of what to buy, you can really get that information over the Internet and then make a buying decision. That's a value proposition to consumers.

With us, the value proposition category is not acute prescriptions, it is mail order. Now the mail order business is about 12 percent of pharmacy sales, and the biggest share of that business on the Internet is Merck Medco and that's because Merck converted their mail order business to the Net. That is working because the Internet is a better value proposition for mail order consumers.

Vitamins are also high on the list of what sells on the Net. This is also a business with a strong mail order component. If you take a lot of vitamins, it's hard to keep up with trends. Shoppers have to go to more than one place to find what they need. If they find a good mail order business, they buy from it. So today, companies like Vitamin Shoppe are converting their mail order business to the Internet.

Look at the rest of our businesses, think about how much time it takes to get on a computer, go down a list, and order. For the time it takes, you could have already gone to CVS or Walgreens, gotten what you want, and you're home or at work.

How big a business will it get to be? For us, not big enough to stop building 400 brick-and-mortar stores a year.

Griffin: Today, the consumer is in the driver's seat more than ever and that's because, thanks to the Internet, they have more information than ever before. In relation to our channel, to what extent is there a revolution in customers; to what extent have they changed their shopping habits?

Ziemke: You can hear the distant hoof-beats, but can't see the horses yet. There have been all kinds of changes going on in the way people do business, club stores that didn't exist until recently, specialty stores, category killers, so I think this is another evolution.

We don't know how big it will be, but it will develop first primarily in areas where there is information and selection issues. As computer use gets better, and as people start to find the value in it, it will expand.

Concannon: If you look at our business, we had 1.2 million new customers coming into our third quarter.

Of course, you could say that since Wal Mart gets 100 million customers a week, what's so great about 1.2 million. But in a very short period of time and in a learning organization, we are showing good growth. And in our last quarter, 59 percent of our orders were from repeat customers.

So those are some underlying dynamics and fundamentals that are really solid. But we never believed that stores were going to be empty. For us to be a pretty big business in a relatively short period of time, there is a lot of growth and dynamics that will take place.

But you also will be doing more value added services on the Internet. You can counsel patients, provide personalized information, help them search and be very precise with purchases. But then the question is if CVS.com does a very good job on the Internet, what happens when that customer goes into a CVS store?

Does the store now have to deliver differently to match what the Internet offers? Does it mean better counseling by pharmacists in the stores? There are a lot if different ways to see what the influences will be, not just shopping online. The ripples will be from more than just transaction purchases on the Internet.

Multi-channel shopping

Griffin: Everyone is talking about customers who shop in stores and customers who shop online. What about the evolution of multi-channel marketing? Does it currently happen?

Roehm: Our challenge is to understand where it is today and service our customers in all our formats, whether physical or not. We have to provide services and figure out where our customers are going, then build the formats that will service consumer needs in ways that make sense for them and us. There will be higher expectations for our stores because of the Internet, and it's up to us to meet those challenges.

Zigerelli: In existing markets, the customer who is most likely to come back regularly to CVS.com is our key customer using us in a multi-channel way.

In markets with loyalty cards, the number of customers using their cards on the Internet is growing.

If you think about it, the average consumer today shops more multi-outets than ever before. Five or 10 years ago, a woman who shopped at Saks would never admit that she also shopped Marshalls. But today, it doesn't matter because you're a consummate shopper who might find something on the Internet as well as in the stores. This whole concept of shopping anywhere any time is true.

How hard is it to integrate?

Griffin: What does it take to create an integrated model where the consumer can seamlessly move from the store and back?

Gleeson: We made a $150 million investment in our pharmacy system and today that system lets people access us on the Internet, through the mail, through the phone, through the fax and through the stores.

Ultimately, we will also have to have the same type of integrated infrastructure for the front end.

Until we get to the point where we can provide loyalty aspects however, it will be difficult to tie them into stores through the front end.

We think the Internet is best for categories that are complicated or information intensive like cosmetics, computers, medicated shampoos. There are probably 80 products on our site that relate to that.

But they all relate to something that has to do with product ingredients, and when you get into that, you start to realize that consumers are looking more at solutions and less at brands. When a consumer can go in with a condition like dermatitis and look at brands across product ingredients, you've got a whole new approach at brand marketing.

Is one-to-one marketing working?

Griffin: How do you balance respect for the customer and their privacy without leaving on the table the opportunities to serve them better one to one?

Zigerelli: We are finding that when you ask people to opt in for health care, the results are much more positive when we say we are CVS. We have your prescription records, and we are keeping them to ourselves. We are managing the one-to-one relationship. We are not giving them to a third party. That's a big plus.

Gleeson: Our policy is not to share private information. We don't share this information with anyone. I don't know how many millions of dollars we've left on the table, all of us have.

It's part of the deal in pharmacy that privacy is way up on the top of the list. The issues being dealt with by people in more general merchandise categories on the Internet have been dealt with by us for many years.

It boils down to this: We share the information only with people within our company who have something to do with the actual services they are providing and nothing beyond that.

Concannon: Particularly as a new pharmacy building new trust and new reputations, we have to be that much more careful.

We separate the person's account from their credit card until they're at the end of their transaction. Even if they were intercepted, one wouldn't be any good without the other, and it wouldn't reveal anything.

And with the e-mail reminders, it looks a little unfriendly because it says: 'Dear so and so, prescription l23xyz is ready to be refilled.' There's no mention of what that drug is or what it's usage is for.

We saw from day one that the privacy issues on the prescription side and the privacy issues on the front of the store have a significantly disproportionate rank within the store. Anything you don't want to be asking your next door neighbor about does extremely well on the site. That's our currency. That's the one thing that can't be squandered.

Ziemke: We use target e-mail as a reminder so if it's a customer we haven't seen in a while, they'll get a reminder, a special offer, to come back.

Somebody who orders frequently, but with smaller orders, will get a targeted e-mail that will suggest that we will give a $20 discount on orders over $80 or more.

It's more of a targeted e-mail based on slicing and dicing of demographics and not so much product orientated.

Roehm: We tend to use the people who opt in for reminders and currently, about 97 percent have opted in for e-mail reminders for front of store products.

As time goes by, consumers will be more likely to log on and ask to consult with an online pharmacist in a secure environment rather than opt in to be sent e-mail.

The information relevant to pharmacy we keep close to our vest.

Zigerelli: In markets where we have in-store loyalty programs, we ask consumers when they sign up if they are interested in finding out more about certain information categories like stress or heart disease, and we found that service is tremendously popular.

If a consumer believes they are opting into something valuable to them that they chose, they are much more likely to see that as care-taking rather than going after them to sell more products.

Griffin: How are you changing the way you market and acquire customers?

Concannon: Because of the dictates of the market and because we're getting a little smarter, we've gone from a dozen affiliate or portal deals down to three or four.

One of our biggest deals is with our on-going partnership with Amazon.com. Amazon is a part owner in drugstore.com, and we bought the health and beauty tab at Amazon. And now we're part of the pervasive navigation at Amazon in each page of the store, and that has been a significant source of customers for us.

In today's tight capital marketplace, marketing is a matter of where we put focused resources to draw the most customers.

Rite Aid is currently marketing the drugstore.com brand in a half dozen ways, including weekly circulars, on register receipts, at the front end, in TV advertising and in pharmacies.

Gleeson: Because Walgreens stores have substantial traffic count, one of our major new marketing endeavors is to get e-mail addresses into our systems, and we are actively promoting that in our stores. That does create a good channel for customers to visit the Web site.

But the main thing is to use the site as a logical extension of the stores and people naturally gravitate there if they are Internet users for their prescription services and other things. So we have not really gone through a major promotional campaign outside of that.

It would be very expensive to do a major television campaign just for walgreens.com.

Zigerelli: In the past, CVS has done some special television commercials to build awareness for its Internet store.

Now instead of television, we market CVS.com by tagging the Web site in all of our circulars, and we sometimes do a special page in the circulars with offers unique for CVS.com, which drives a lot of traffic.

On the Internet, we have just a couple of select partnerships to drive traffic. WebMD drives traffic that converts into sales and they get a piece of revenues back for that, so we're not spending millions of dollars up front to create traffic. We give them a piece of the sale after it happens so that the traffic that is being driven is financially affordable, and we also give WebMD advertising in our stores.

I think that, like Walgreens, what's important to us is that we have 20 million people every week coming into our stores with e-mail addresses, and that's our best source of advertising.

Evaluating marketing strategies

Griffin: Which marketing vehicles have really worked and which haven't?

Ziemke: What hasn't worked for us are the AOLs of the world. It turns out that those types of things don't even come close to good affiliate programs and utilizing in-store opportunities. We've done selected e-mail, but we've never gone the TV route. Too expensive.

But banner advertising didn't seem to produce at all. They were extremely cost ineffective.

Concannon: We will work with the manufacturers to give the customer what they want and at the same time, the manufacturers can address strategic brand objectives. They can tell their brand story. They can provide consumers with the information they were seeking.

What we did is approach the manufacturers and say, listen, you know your brands, your categories and your consumers better than we ever will, and what we know is how to create a really great shopping experience and use the personal experience of the Internet to draw customers, so to merge these two is pretty potent, and we've been pleased at how successful it's been so far--a win for everyone.

Brands on the 'Net

Griffin: How are the branded manufacturers fitting in with what retailers are doing online?

Gleeson: We would all like to see a way for our customers and our store associates to have Internet access methods to get product information.

It's a terrific new avenue and it's a terrific opportunity to enhance not only the shopping experience, but the information content in the stores.

Beyond that, there are suppliers that have more direct involvement in this. There is digital photography. We will see deep involvement with suppliers on digital photography.

Roehm: We are in the process of developing brand strategies with manufacturers. We're looking forward to reaching the point where we can offer manufacturers an opportunity to market within our environment both within the stores and on the Internet.

Eventually, we want to slice and dice information, particularly on things like product ingredients, so consumers can make buying decisions not just on price and value, but on how product ingredients in different products might interact. We will see shopping evolve to include quadrants of different types of products to fit consumer needs in different areas of our environment.

Zigerelli: Marketing with manufacturers is an excellent way to further strengthen partnerships.

We're currently doing a brand marketing program with Kodak. We were the first, I think, with Kodak to combine what we are doing in the stores with what we are doing on the Internet.

So you can come into CVS stores and if you want to get two-day processing, you can get single prints. We give you a code, and if you come back two days later, we have already loaded the pictures onto CVS.com so you have pictures to send to family and friends, even if you don't have a digital camera.

We're doing similar things with the pharmaceutical companies. We have an allergy channel for Claritin on CVS.com. We put Claritin on the prescription bags in stores. We have an endcap for Claritin, so we're looking for ways to create an enhanced shopping experience for the consumer in an integrated way.

We tie in with the Web sites of our partners when we want to hype an event. If, for example, Coke is going to do a special celebrity event, then we will tie into that event on CVS.com by inviting consumers to enter the contest online much in the same way as we do in our circulars for the stores.

Griffin: Could a supplier become an Internet competitor?

Zigerelli: Most manufacturers that we do business with have concluded that trying to become a retailer is not exactly the expertise that manufacturers have.

But just as we have a right to sell store brands that compete with our manufacturer's brands, manufacturers have a right to sell on the Internet if they choose.

But the partnerships that I have with suppliers are very deep in terms of sharing information. With that deep a partnership, as a manufacturer, I would think twice about the death of the partnership because it becomes more complicated. I don't know of any supplier that we do business with today that I feel threatened with in terms of competing on the Internet. What consumer would want to go to Gillette.com to buy two razors or to Coke to buy a can of Coke? That's not the way the consumer shops. I just don't see it as an issue at this time.

Ziemke: I agree with Larry, They're not in the retail business. To try to get into a fulfillment process to take care of a limited number of people, it just runs contrary to their mission statements. I don't know of any manufacturer who is aggressively pursuing it.

Gleeson: It is difficult enough to sell convenience-oriented merchandise on the Internet, even as a retailer.

It is even more difficult to do that as a manufacturer without a full assortment, unless you're in a very specialized business with specialized products in which case, we are probably not carrying it anyway.

Opportunities ahead

Griffin: What is the biggest near-term opportunity on the horizon?

Ziemke: Providing a larger offering to a larger customer base, particularly with products that you cannot afford to put into your mix on a store-by-store basis.

You can take a category like vitamins and nutritionals, and you can have a huge offering. When you let people know it's there, it becomes a service issue. It lets you say to customers: Look what else we have for you.

Concannon: We're very fond of saying that our biggest competitor is not stores or other dot-coms. It's ingrained customer buying habits. They're use to driving to stores and picking the stuff up, so the opportunity to change customer behavior rests on us making it as easy, convenient and intuitive as possible.

We have the mechanisms to drive traffic to our site, so if we have what they want, and you're covering the four P's of retailing and making it easy to shop the store, I'm confident that we can win the customer. That's what it comes down to. It cuts into things like having the right items. That's how we're going to win the day by making it very easy and intuitive.

Roehm: You have to continue to evolve and redefine the site both on the drug and food side. There will be integrations with the distribution centers that are not commonplace today. We need further integration throughout our stores and service areas. We need expansion of product selection and more of an integration between food and drug operations.

Zigerelli: The key challenge is to continue to enhance the shopper experience and to grow, while at the same time making the economics work better and better.

We have integrated a lot. We still have room for integration. Photo is totally integrated. The same category manager handles the whole business for stores and the Internet.

We are getting tremendous success with incremental sales without incremental people. We expect to make money in the next year or so. To be able to accomplish that while keeping up with consumer demands on the Internet is our key challenge.

Gleeseon: Because of the pharmacy, drug store operators have a bond with our customer that doesn't exist in other types of convenience outlets, and a lot of that is because of the information that we store on their prescription history.


There's a very strong feeling on the part of consumers that those stores have my information. What we will experience on the Internet is the ability to extend that type of advantage with that customer relationship in other areas, as well.

I think as we go forward, the people who are able to leverage that customer technology to lock that bond in are going to be the real winners, and the Internet is the ideal medium to build these relationships. It is the No. 1 opportunity for the future.
Full Article
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What does "Timing the Market" or "Market Timing" Really Mean

"Timing the market" is considered by many to be a foolish exercise. Timing the market is indeed foolish if it is done the way many seem to think it is done. However, it is really a matter of having a good sell strategy or stop loss system coupled with a good buy strategy. Expert timers do not buy because they feel a stock is a "good" one to own, or sell because they feel it is "high." They buy because there has been a buy signal, and they sell because there has been a sell signal.

Some writers in the financial media color their articles with their own uninformed opinions rather than search out the facts. Let me give you an example of what I mean. In a recent well-known financial publication, a widely followed writer wrote about "market timing" and said that it has taken on a new meaning that differs markedly from the original meaning of the term. The term "market timing" has been used in reference to how some individuals trade mutual funds by illegally locking in an unfair price advantage and profiting on small pricing gaps between markets in different time zones. The writer mentioned above informed the reader that in the original definition, market timing involved shifting money into cash or bonds when the investor thinks stocks are overpriced and moving back into stocks when he or she thinks they are cheap. This author was correct with regard to the changing of the definition. However, he then went on to say what he thinks is wrong with the original timing concept.

The problem is that he leads his readers to assume timing decisions are based on what the timer "thinks" about the market and economy and what he believes "ought" to be the influence of such an environment on investments. This indeed appears to be the way most amateurs and some under-performing professionals practice "timing." Fund-provided data does show that there is more money flowing into funds at market highs and more withdrawals at market lows, reflecting how most people attempt to "time" their investments. This does show that, as a group, they are almost always wrong. In fact, that's why there is such a thing as a "contrary market indicator" based on what the small investor is doing. It is an odd-lot volume indicator based on the fact that the small investor tends to increase his buying at the highs and increase his selling at the lows. Therefore, when there is mounting odd-lot buying (individual investors are "feeling good" about the market), professionals view it as a warning signal of an impending market downturn.

However, it is a fallacy to use this data to claim that it proves timing doesn't work. There are many excellent timers. Most professional "timers," the people who do it successfully, do not base timing activities on how they "feel" about the market. For example, stockdisciplines.com traders generally do not say to themselves, "Interest rates are likely to rise, therefore I will avoid fixed-income investments because they will likely drop in value." While the idea is strategically sound in this case and the proposed course of action is correct, this thinking process does not resemble the way the most successful market timers make their buy and sell decisions. While there are some who base decisions on such things as their evaluation of the economy or the effect of war on oil prices, most of the highly successful timers use a variety of technical indicators and focus on the current status of the market (what IS) rather than on what they think the market is going to do next. "Do we have a current sell signal or not?" Opinions about whether stocks are too high or too low have little to do with such strategies. For them, quantitative data, technical indicators, and action signals are the bases for their decision-making.

Let me illustrate with a few simple timing models. Let us assume your goal is to capture the best returns you can by investing in any sector or market on the planet. To do this, you might decide to give your attention to ETFs. Therefore, you might rank all ETFs in the order of their strength. Assume that you have a way of measuring, as our model does, more persistent strength than that measured by the RSI. Your timing model might then be expressed as follows. You will buy the 10 top ranked ETFs. Then, you will sell any ETF that drops out of the top 30 and replace it with the highest ranked ETF in the top 10 that is not in your portfolio. Assuming your collection of ETFs represents a wide variety of sectors and markets both domestic and foreign (and includes U.S. index ETFs), and assuming you are always invested in the strongest of the strong, your portfolio should significantly outperform the U.S. stock market.

Another example of a simple timing system might be expressed as follows. You will buy an undervalued stock when it closes above its 150-day moving average but only after that average has begun to rise. You will sell if the stock closes below its 150-day moving average but only after that average has begun to decline. A 10-day moving average or some other moving average might be used instead of the closing price in order to reduce whipsaw effects, and other moving averages could be used instead of the 150-day average, depending on the individual's investment time-horizon. Here, the idea is to be invested in the stock during most of any up-trend and in cash during most of any downtrend.

There is no "feeling" involved in the decision process of either of these timing models. In actual practice, both of these models might be enhanced with other rules and supported by other indicators to reduce false signals. The "timer" is not interested in what the market "ought" to do next. He is interested only in what "is." The most consistently profitable timers simply obey the rules of their model. For example, either an ETF has fallen out of the top 30 ETFs or it has not. If it has, it must be replaced. There is no anxiety-ridden decision process here. The successful timer just does it. Why the ETF has fallen out of the top 30 is not important. There are forces at work in the marketplace that no single individual can know completely. Whenever an ETF falls out of the top 30, it is replaced by another ETF. For some reason, that other ETF has become supported by more consistent buying power. It is the flow of money that causes "strength." Top timers using this model would simply follow the money by going where the strength is.

After years of high volatility, it has become apparent to an increasing number of investors that some form of timing is a more credible approach to investing than the old buy-and-hold strategy. Many experts agree that increased volatility means active trading could be the best way to make money in coming years because trends will be shorter-lived. This is not to imply that investors should become day traders. The spectrum of traders is broad. Some traders may indeed hold an individual stock for a long time. The point is that having a well-defined sell strategy and implementing it will probably be the best way to make money in volatile markets. Though volatile markets can make it easier to make gains, volatile market also tend to take those gains away. It is not your tally of paper profits, but what you can keep in your account that counts. The concept that "buy and hold" is the safe way to invest has become very misleading to the public. People who bought and held LA Gear through a prolonged decline until it simply disappeared understand that. After the crash of 2000, investors seemed to appreciate the value of having a stop loss strategy, but a few years later they apparently forgot the lesson. Increasingly, people seen to be proud of the fact that they never trade their stocks because they are "long-term investors." What the term "long-term-investor" has come to mean is "I do not really have any sell strategy or use stop losses." While it is well to be a long-term investor in the general sense, being a long-term investor in any individual stock has the potential of becoming a painful and costly learning experience. Those who do not adhere to a set of rules for selling are begging the market to teach them the lesson again.

Copyright 2009, by Stock Disciplines, LLC. a.k.a. StockDisciplines.com


About the Author

Dr. Winton Felt has market reviews, stock alerts, free tutorials at http://www.stockdisciplines.com Information on Stop losses including volatility-adjusted stop losses, videos at http://www.stockdisciplines.com/stop-losses Stock alerts, pre-surge "setups," videos are also available.

Article Source: Content for Reprint


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