This chapter examines how the Internet affects the firm's marketing policies. It shows how the firm should choose its marketing strategies including pricing (distinguishing between the B to B and B to C markets) and advertising messages. In addition, it shows how the firm should coordinate its Internet advertising and sales force policies, including redesigning its sales force compensation plans. It discusss the effects of ownership structure (whether the advertising firm is privately or publicly held) on the firm's Internet advertising strategy. In addition, it analyzes a number of structural changes brought about by Internet advertising, including the purchase of advertising space via auctions, behavioral targeting, and conquest advertising.
Keywords: auctions, behavioral targeting, clickthrough fraud, conquest advertising, digital advertising, electronic exchanges, internet marketing, marketing-finance fusion, sales force compensation plans
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