Digital marketing system

A digital marketing system (DMS) is a method of centralized channel distribution used primarily by SaaS products. It combines a content management system (CMS) with data centralization and syndication across the web, mobile, scannable surface, and social channels.

Web

A DMS publishes to web channels, usually in the form of a stand-alone website. It can manage any part of the web process, including web design, web hosting, domain registering, marketing, content creation and other standard methods of web promotion. The goal of web publication is to give the user a digital 'home' on the web, where clients, guests, fans and other web browsers arrive as a destination. Other methods of digital marketing often work to drive traffic to the web channel.

An example of a SaaS DMS services is HubSpot.

Social

A DMS publishes to popular social channels, including Facebook, Twitter and Instagram in orer to drive traffic to the user's website. The publication can be in the form of text, images, or videos.

Privacy issues

Digital marketing is considered a challenge for privacy[1] because consumers' information is searched, collected, and used in the process of digital marketing without consumers' awareness.[2] The privacy of customers is important because that it is related to customers' perceived value, satisfaction, loyalty,[3] their trust in a company and the performance of a company.[4]

Types of information

Basic information：

In the traditional sense, private information mainly includes gender, age, educational background, marital status and other basic information.[5]

In the network society, private information also includes personalized digital information such as account passwords.[6]

Activity information：

Private information refers to browsing history, purchasing records, location, social activities and so on [5]

Illegal use of information

At present, the discussion on the consequences of privacy issues caused by digital marketing technology is increasingly focused on the possibility of illegal use of information.[7] The information of consumers may become commodities, which will be exchanged or traded without the consumer's awareness and authorization.[8]

The consumers' information is mainly exchanged or transacted in two forms. One is that the related merchants share those data. The other is that those data are sold by certain recommenders to a third party.[5] For example, the data that can identify the financial status of consumers is very attractive to credit agencies. All of these above increases the risk of consumer privacy.

Customer attitude

Some customers tend to choose the latter between a right to privacy and other favourable conditions. Pieces of evidence show that some customers are willing to allow merchants to use their personal information if they can have something to gain in return, even just small rewards, even though they do worry about their privacy may be invaded.[9] In addition, digital marketing provide convenience to people.[2] In the minds of some customers, this convenience is more important than their privacy, especially for teens.[10] Nevertheless, most people are very concerned about whether their privacy is protected.[2]

Supervision and administration

Permission marketing is a system where consumers can grant licenses only to a few merchants which are chosen from a large number of merchants.[7] Merchants can also post privacy logs to promote transparency and accountability.[11]

The General Data Protection Regulation (GDPR) is an example which meets the above requirements. It stipulates that merchants can collect customers' information only for specific, clear and legitimate purposes and deal with them only in a fair, transparent, and legal manner and merchants must protect this data.[12] Customers should be informed that how will their data be used, what will be the effects and other relevant information in a concise, easy-to-understand and freeway so that they can determine whether it is necessary to grant authorization or not.[13] Except the right to be informed, the GDPR also provide customers with seven other rights such as the right of access, the right to erasure, the right to restrict processing, the right to object and establishes corresponding accountability system.[14]

References
  1. Weber, R (2015). "The digital future – A challenge for privacy?". Computer Law & Security Review. 31 (2): 234–242. doi:10.1016/j.clsr.2015.01.003.
  2. "Online personal data: the consumer perspective" (PDF). communicationsconsumerpanel.org.uk.
  3. Leppäniemi, M.; Karjaluoto, H.; Saarijärvi, H. (2016). "Customer perceived value, satisfaction, and loyalty: the role of willingness to share information". The International Review of Retail, Distribution and Consumer Research. 27 (2): 164–188. doi:10.1080/09593969.2016.1251482. S2CID 168563207.
  4. Martin, K.; Borah, A.; Palmatier, R. (2017). "Data Privacy: Effects on Customer and Firm Performance". Journal of Marketing. 81: 36–58. doi:10.1509/jm.15.0497. hdl:10072/337604. S2CID 168320495.
  5. Wang, C.; Zheng, Y.; Jiang, J.; Ren, K. (2018). "Toward Privacy-Preserving Personalized Recommendation Services". Engineering. 4: 21–28. doi:10.1016/j.eng.2018.02.005. S2CID 115584664.
  6. Mamonov, S.; Benbunan-Fich, R. (2018). "The impact of information security threat awareness on privacy-protective behaviours". Computers in Human Behavior. 83: 32–44. doi:10.1016/j.chb.2018.01.028. S2CID 4160484.
  7. Krafft, M.; Arden, C.; Verhoef, P. (2017). "Permission Marketing and Privacy Concerns — Why Do Customers (Not) Grant Permissions?". Journal of Interactive Marketing. 39: 39–54. doi:10.1016/j.intmar.2017.03.001. S2CID 20625163.
  8. Taylor, C. (2004). "Consumer Privacy and the Market for Customer Information" (PDF). The RAND Journal of Economics. 35 (4): 631–650. doi:10.2307/1593765. hdl:10161/2627. JSTOR 1593765. S2CID 18068229. Archived from the original (PDF) on 16 March 2018.
  9. Kokolakis, S. (2017). "Privacy attitudes and privacy behaviour: A review of current research on the privacy paradox phenomenon". Computers & Security. 64: 122–134. doi:10.1016/j.cose.2015.07.002. S2CID 422308.
  10. "2017 Consumer Digital Usage and Behavior Study" (PDF). adestra.com.
  11. Samavi, R.; Consens, M. (2018). "Publishing privacy logs to facilitate transparency and accountability". Journal of Web Semantics. 50: 1–20. doi:10.1016/j.websem.2018.02.001.
  12. "Principles". ico.org.uk. 21 November 2017.
  13. "Right to be informed". ico.org.uk. 20 March 2018.
  14. "Individual rights". ico.org.uk. 20 March 2018.
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