IV. The current strategies of Marketing and Advertising.A. MarkufacturingMarkufacturing

IV. The current strategies of Marketing and Advertising.A. MarkufacturingMarkufacturing could be defined as an interesting phenomenon. Originally, the market trends are influenced by supply-side; however, the purchasing power belongs to consumers. In order to shift the power back to supply-side, a company needs to have control over the demand trends. Constructing the demand is a new tool of marketers by creating the needs of product before launching products.  It is a so-called market-driven manufacturing.  This strategy convinces consumers to feel that they need the products. In the light of Prof. Feldman, Markufacturing has been used by pharmaceutical suppliers. The suppliers might inform the potential consumers about the advantages of the particular products, then the consumers are convinced that they need these products.  It could be suggested that maximizing the effectiveness of Markufacturing, the internet might be the best choice. The reasons are that the internet is a channel that allows people to connect worldwide. And the concept of Markufacturing could be imply to e-market. A company has started building the relationship with intelligent agent. Therefore, an advice will provide the specific product which was paid by a company to consumer when users search for products.  Another tool is customer reviews in the internet. No one can assert that those reviews are provided by the real users. Due to, the nature of customer reviews in the websites is anonymous, it led to transparency issue. Due to this phenomenon, the power of selecting the products has been shifted from consumers to suppliers. It can be argued that consumers are the victim in this marketing strategy.   Hence, there is no specific law to control the way of marketing; law usually concerns about consumers’ right, adverting which related to consumers directly. So, it led to the lack of transparency in electronic market.  B. Online behavioral advertising (OBA)Due to the progression of technology, advertising is more productive with targeted advertising.  Consequently, online behavioral advertising(OBA) has been used widely. This is more productive and effective mechanism which internet marketers use to maximize their sales.   With online behavioral advertising, a website will record user’s browsing pattern. This pattern will be analysed through a learning algorithm, which determines user’s interests. Later, user will be provided with more relevant advertisements on their next visit. There are two ways of practicing online behavioral advertising. Firstly, using “cookie”, a data that are stored on the user’s computer. To be more specific, cookies are stored by user’s internet browser (i.e. Internet Explorer, Google Chrome, Firefox, and Safari). These cookies held almost every important data that are required for processing user requests on the browser such as authentication information, password, shopping cart, as well as user preference and interest. Another way is the third-party service providers which using their own methods of data collection. For example, Facebook collect user’s data, user’s interests, and user’s browsing pattern. Facebook has been using this information to help them get better understand on user’s behaviors and create more relevant advertisements for each individual user. So, this can be suggested that OBA is one of the best ways for advertisers to understand the behaviors of their customers. Furthermore, some marketers stated that online behavioral advertising might be a crucial factor to make a more productive and effective marketing.Although online behavioral advertising brought numerous benefits to businesses that are relied on marketing and advertising. It also brought more issues regarding the consumers’ privacy as the majority of consumers have little or no awareness of this data collection. Conversely, Federal Trade Commission (FTC) and EU commission believed that profiling also provides benefits for consumers. Online profiling brings the better experience to users – they would only see interested advertisements; a company does not have to waste resources to advertise to untargeted consumers that.  Hence, online profiling provides benefits for both companies and consumers. It can be seen that there is a need for laws to intervene in balancing the interest of both parties.   The concerning issue of using Online behavioral advertising is that the consumers are lack of knowledge and awareness whether their activities in cyberspace are collected or not.  As we known, a consumer is considered as the weaker party in e-commerce transactions. So, consumers’ interests are required to be a priority. Although, the use of cookies can be refused by changing settings in the browser but it may be difficult for some consumers.   Additionally, personal data might be access by unauthorized parties or the data might be sold to others. For example, when consumers receive the false bills from their stolen information.   It might be deemed as an infringement – the data is collected and used for marketing objectives.However, laws have put the best effort to catch up on the current issue. Under the EU directive and CAP code , there are the guidelines to member states regarding users’ privacy in cyberspace. The website is required to ask for permission before using cookies . This rule granted users the right to refuse the use of cookies. So, it can be clearly seen that those rules were set out with the purpose of increasing confidentiality and awareness of users’ personal data collection. Moreover, there are information commissioner’s office (ICO) which monitor websites. If a webpage does not show the cookie consent, users can compliant to ICO. However, the empirical studies suggested that users normally accepted cookies without awareness that their data are collected.  C. YouTube YouTube is a website which provide a free online video hosting. The advantage of YouTube is the freedom of speech. Hence, it means there is no limitation on the content. Not surprisingly, YouTube have become the new community in e-world. The uploaded videos are composed of different types: beauty, food, new gadgets.    Youtubers are the person who created a channel on YouTube and uploaded a clip. The youtuber who has a lot of subscribers are considered to be influential person and usually called an influencer. Marketers seek an opportunity from these influencers to boost their sales. The youtubers will be requested to provide positive reviews on their products in order to receive a sponsor. Hence, Youtube has become a new platform of advertising and marketing. YouTube could be the most direct route to target purchasers; OBA provided users with relevant advertisement.The relationships between youtubers and sponsors can be categorised into three  types.  The first type is direct sponsorship. This type, a youtuber will collaborate with a company to create video content. Second, Affiliated links, the youtubers will put the link of product in a description box and they will get a percentage of the income made from purchasing products via the link.  Last, Free product sampling is the most ubiquitous of sponsorship . Sponsors will send the new products to youtubers. Then, the youtuber will create the video based on their opinion over the product.In this circumstance, there is four involved parties: youtubers, viewers, YouTube and businesses.  Balancing the interests of all parties are complicated. In commercial view, regulation of disclosure might be the obstacle of market growth; there is a need to disclose the relationship of advertisers and youtubers, in legal aspect. Without the requirement of disclosure, viewers might not able to distinguish between the honest review and the sponsored review.   There is no doubt that if the content of the video is deemed to be an advertisement, it must follow the advertising regulation. Direct sponsorship is considered as advertising. The youtubers create content with context requested by a company. It can be assumed that the content of video is controlled by advertisers. Similarly, affiliated links are deemed to be advertising. The reason is that the youtubers receive commission from advertisers. The activities which a company pay someone in order to disseminate the information of product is an advertisement under the CAP code.  However, there is the complexity to identify whether Free product sampling is advertising or not?  The problem is that there is an unclear relationship between companies and youtubers when youtubers   review only the products sponsoring by companies. This is a widespread method that has been used in the cosmetic industry. For instance, Tati is a beauty youtuber who has 3.6 million subscriptions. Normally, she got products from the cosmetic companies: Yves Saint Laurent , Lancôme and so on.  Undoubtedly, sending free product to youtubers is considered as marketing and PR activities. It is another way to introduce the new products to customers. It can be suggested that this kind of sponsorship will be beneficial to both companies and content creators. However, the CAP executive annotated that sending the product to vloggers is a kind of PR activities because the vloggers are not under the control of the companies. As mentioned above, direct sponsorship and affiliated links are considered to be advertising, so they must comply with the regulation concerning the disclosure. Under the CAP code, the direct sponsored videos are required to write “AD” in the title of a video.  The requirement of affiliated videos is similar to direct sponsored; content creators need to disclose that there are affiliated links and they receive the commission of sale. On the other hand, it is questionable that free product sampling is only PR activities as advising by the CAP Executive or it is an advertisement.  However, if it is PR activities, there is no disclosure requirement.  This could be the point to assert that marketing and advertising are beyond the current regulation. In addition, youtubers did not annotate that they have a commercial relationship with advertisers. It can be argued that at least the viewers have the rights to know that those products have been sent for free, even if the youtuber have no obligation to advertisers.  As the aim of advertising code, people should be able to know that ads are ads. However, the marketing and advertising have changed. They started using the reputation and trustworthiness of youtubers as the medium to promote their products. Unsurprisingly, people are not informed that the reviewed product is sponsored.  Hence, they believe that those products are reviewed honestly. The reviewed video typically reflects the viewer’s opinion. So, it can be suggested that Free product sampling need to be controlled in order to increase transparency owing to it is deemed endorsement. V. ConclusionIt is undeniable that the marketing and advertising go beyond the regulation. Businesses always introduce the new marketing strategy to stay competitive. The internet has become the new tool for businesses to convey the information to consumers. Though, companies do not only use the internet to disseminate, but also to create demands in the market. The concept of Markufacturing might drive the power of consumers to the traders. The consumers are convinced that they need this product and must have it as soon as it available. In this marketing strategy might gradually erode consumers’ self-decision in the long run. Hence, it needs to be controlled in consumer’s favor by law concerning the effect of Markufacturing.Cookies consent deemed to be the new mechanism of EU directives and the CAP code. However, this mechanism could not achieve its objective. Consumers are lack of knowledge concerning how cookies works and what it does to their data. Consumer’s data has its value, the business might collect the data and use it for marketing or other proposes. Thus, the lack of transparency concerns    the data collection and also an urgent need to increase consumers’ awareness.Moving to YouTube, the platform is meant to be an online community for ideas and experiences sharing. However, the YouTube has become the significant medium of advertising for promoting the new products and services. Although they are many types of sponsorship, law tries to catch up with this phenomenon. Unfortunately, the regulation usually follows footsteps of marketing and advertising. Generally, free product sampling may or may not be PR activities, but it is undeniable that review videos are influential. If youtubers reviewed a product positively in a specific period of time, it could lead to a significant increase in demand. In addition, normally, youtubers did not mention that the product was sent to them as a review unit for free. This suggested that free product sampling should be governed by the law in order to increase transparency.In conclusion, those strategies erode the principle of clarifying, transparency and confidentiality in e-market. The law should introduce the regulations which are more effective and benefit all parties equally. There is also a need to provoke the users of the awareness regarding the current issue. In addition, regulation must enforce youtubers to disclose sponsorship information. Hence, both individuals and government should cooperate to address this problem thoroughly.