There are two main reasons for understanding the technological aspects. First, the exchange relationships between marketers and consumers are restrained by technology and being aware how the technology can help or obstruct marketing activities is very important. Second, understanding the factors that have influenced the development of the INternet can help anticipate future changes and develop proactive marketing strategy.

5.9. What are some advantages of Internet technologies for marketers? What are some disadvantages?

Internet technologies will increase the speed and cost-effectiveness of business processes. There are two aspects. For research purposes, Internet will greatly facilitate gathering research data from online chat groups, surveys. For secondary research data can be gathered from published data or online databases. Internet will also allow the marketer to easily provide information like having online catalogs designed for the individual or a specialized market segement.
The disadvantages of the Internet is that the fast change in technology may benefit the followers not the leaders. The followers will also benefit from the larger knowledge base, learning from the efforts and mistakes of the leaders.

6.1. What is the role of public policy in the Internet environment?

The role of the public policy is to protect consumers in the marketplace and to provide a fair environment for commercial activity among businesses. The public policy also encourage infrastructural development like high speed networks etc.

6.6. What is digital divide?

The notion that only high-income well educated people will have access to the benefits of the Internet and the society will be divided to ones who have and ones who have-not.

6.11. How are cookies used?

A cookie is a small piece of information sent to the web browser by the webserver. It is usually used to store information like user's registration. They are used by shopping carts to keep track of the user who ordered a particular item. Marketers use them to keep track of the visitors and follow their path on the website.

6.12 What approach has FTC taken in respect to privacy protection?
The FTC treats the Internet media as the traditional media using advertising, media, product, audience and method regulation. The US public policy restricts the collection of information only in the public sector or the government agencies and the government is not allowed to give the information it gathers to anyone else.

8.5. How might the Internet enable a company to develop a competitive advantage?
To gain competetive advantage the marketer can use the Internet to learn about consumers' needs and competitors' actions as well and the changes of the conditions that might affect his strategic actions. Through Internet marketers can directly and indirectly aquire information about consumers' desired product and services. Marketers can also assess trends and develop predictions about the market.

8.6 Describe three ways that the Internet can be used to identify strategic opportunities?

8.7. Describe three ways that the Internet can serve as a resource for achieving strategic objectives.

Marketers can use the Internet to increase brand loyalty by using a website to provide related information and cobranding. They can alos reudce costs associated with product purchase by using the Internet to reduce inventory costs and reduce delivery times. Third they can create benefits in product performance by using the Internet for customer suport, feedback and product customization.

8.13 Describe three types of Internet-based revenue models.
Three ways of obtaining revenue are: from affiliate relationships, from banner relationships and content sponsorship relationships. With the affiliate relationships the affiliate site places information about its partner. Affiliates make money when a visitor goes to the partners site and usually buys their product. With banner relationships is advertising revenue based on how many times the advertisers banner is placed on the site. And content sponsorship relationship is when one company sponsors part or all of the website content of another company.