Transparent customers. Direct marketing online



This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.

Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.

One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.

However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.

The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.

There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.

A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.

A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.

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0 - 1400 A.D.

150
A smoke signals network covers the Roman Empire

The Roman smoke signals network consisted of towers within a visible range of each other and had a total length of about 4500 kilometers. It was used for military signaling.
For a similar telegraph network in ancient Greece see Aeneas Tacitus' optical communication system.

About 750
In Japan block printing is used for the first time.

868
In China the world's first dated book, the Diamond Sutra, is printed.

1041-1048
In China moveable types made from clay are invented.

1088
First European medieval university is established in Bologna.

The first of the great medieval universities was established in Bologna. At the beginning universities predominantly offered a kind of do-it-yourself publishing service.

Books still had to be copied by hand and were so rare that a copy of a widely desired book qualified for being invited to a university. Holding a lecture equaled to reading a book aloud, like a priest read from the Bible during services. Attending a lecture equaled to copy a lecture word by word, so that you had your own copy of a book, thus enabling you to hold a lecture, too.

For further details see History of the Idea of a University, http://quarles.unbc.edu/ideas/net/history/history.html

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Timeline BC

~ 1900 BC: Egyptian writers use non-standard Hieroglyphs in inscriptions of a royal tomb; supposedly this is not the first but the first documented example of written cryptography

1500 an enciphered formula for the production of pottery is done in Mesopotamia

parts of the Hebrew writing of Jeremiah's words are written down in "atbash", which is nothing else than a reverse alphabet and one of the first famous methods of enciphering

4th century Aeneas Tacticus invents a form of beacons, by introducing a sort of water-clock

487 the Spartans introduce the so called "skytale" for sending short secret messages to and from the battle field

170 Polybius develops a system to convert letters into numerical characters, an invention called the Polybius Chequerboard.

50-60 Julius Caesar develops an enciphering method, later called the Caesar Cipher, shifting each letter of the alphabet an amount which is fixed before. Like atbash this is a monoalphabetic substitution.

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Who owns the Internet and who is in charge?

The Internet/Matrix still depends heavily on public infrastructure and there is no dedicated owner of the whole Internet/Matrix, but the networks it consists of are run and owned by corporations and institutions. Access to the Internet is usually provided by Internet Service Providers (ISPs) for a monthly fee. Each network is owned by someone and has a network operation center from where it is centrally controlled, but the Internet/Matrix is not owned by any single authority and has no network operation center of its own. No legal authority determines how and where networks can be connected together, this is something the managers of networks have to agree about. So there is no way to ever gain ultimate control of the Matrix/Internet.
The in some respects decentralized Matrix/Internet architecture and administration do not imply that there are no authorities for oversight and common standards for sustaining basic operations, for administration: There are authorities for IP number and domain name registrations, e.g.
Ever since the organizational structures for Internet administration have changed according to the needs to be addressed. Up to now, administration of the Internet is a collaborative undertaking of several loose cooperative bodies with no strict hierarchy of authority. These bodies make decisions on common guidelines, as communication protocols, e.g., cooperatively, so that compatibility of software is guaranteed. But they have no binding legal authority, nor can they enforce the standards they have agreed upon, nor are they wholly representative for the community of Internet users. The Internet has no official governing body or organization; most parts are still administered by volunteers.
Amazingly, there seems to be an unspoken and uncodified consent of what is allowed and what is forbidden on the Internet that is widely accepted. Codifications, as the so-called Netiquette, are due to individual efforts and mostly just expressively stating the prevailing consent. Violations of accepted standards are fiercely rejected, as reactions to misbehavior in mailing lists and newsgroups prove daily.
Sometimes violations not already subject to law become part of governmental regulations, as it was the case with spamming, the unsolicited sending of advertising mail messages. But engineers proved to be quicker and developed software against spamming. So, in some respects, the Internet is self-regulating, indeed.
For a detailed report on Internet governance, click here.

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Invention

According to the WIPO an invention is a "... novel idea which permits in practice the solution of a specific problem in the field of technology." Concerning its protection by law the idea "... must be new in the sense that is has not already been published or publicly used; it must be non-obvious in the sense that it would not have occurred to any specialist in the particular industrial field, had such a specialist been asked to find a solution to the particular problem; and it must be capable of industrial application in the sense that it can be industrially manufactured or used." Protection can be obtained through a patent (granted by a government office) and typically is limited to 20 years.

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William Frederick Friedman

Friedman is considered the father of U.S.-American cryptoanalysis - he also was the one to start using this term.

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COMECON

The Council for Mutual Economic Aid (COMECON) was set up in 1949 consisting of six East European countries: Bulgaria, Czechoslovakia, Hungary, Poland, Romania, and the USSR, followed later by the German Democratic Republic (1950), Mongolia (1962), Cuba (1972), and Vietnam (1978). Its aim was, to develop the member countries' economies on a complementary basis for the purpose of achieving self-sufficiency. In 1991, Comecon was replaced by the Organization for International Economic Cooperation.

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