METHOD AND SYSTEM FOR DEFINING A PROMOTION

Abstract: A system for defining an item promotion over a network includes a promotion server system and a commercial server system selectively coupleable to the promotion server system. The promotional server system includes promotion defining code for prompting the commercial server system to input terms of the item promotion and electronic coupon generating code for generating an electronic coupon representative of the item promotion based on the promotion terms input by the commercial server system.

Description: METHOD AND SYSTEM FOR DEFINING A PROMOTION FIELD OF THE INVENTION This invention relates to method of and system for defining a promotion for a purchase transaction over a network and more particularly to a method and system that enables a manufacturer or retailer to remotely set up promotions for items offered for sale at online retail outlets. BACKGROUND OF THE INVENTION In order to increase the number of new customers who buy a particular product, many retail outlets, and grocery stores in particular, set up a database of certain items that they sell and link each of these primary items to a secondary item that is different from the item to which it is linked for the purpose of promoting the secondary item. As a customer is checking out and each item is scanned at the checkout, the items are monitored and simultaneously compared to the items in the database to determine whether any of the items are associated with a secondary item. If an item is associated with a secondary item, a coupon for the secondary item is printed out for the customer to use at a later date. This system enables the store to provide to a customer, who may not normally purchase the secondary item, an incentive for purchasing the secondary item, simply because the customer purchased the particular item that was linked to the secondary item. The system thus potentially creates a new customer for the secondary item. While this system is in use in the so-called "brick and mortar" outlets, there is no such system that enables an online retail store to provide coupons to customers for items in this manner. Furthermore, in the above-described system, the promotions are available only within each store or store chain where the promotion has been set up. A promotion cannot be set up by a manufacturer or wholesaler for an item at a central location that is available to a large number of retail outlets for access to the promotions and for redemption of the coupons. Accordingly, it is an object of this invention to provide a method of and system for defining item promotions that create electronic coupons over a network, wherein the promotions that create the electronic coupons for promotional items are remotely defined by the manufacturer, wholesaler or retailer on a promotional server that is accessible to e-tail sites that offer the promotional items for sale. SUMMARY OF THE INVENTION The invention is directed to a method of and system for defining a promotion for an item for sale on e-tail server systems, in which the manufacturer, wholesaler or retailer accesses a promotion server system over a communications network and defines the terms of the promotion. The promotional server system prompts the user to input promotion terms such as the item to be promoted, the financial terms of the promotion, the rule defining the promotion and the duration of the promotion. The promotional server then constructs the promotion for the item and makes the promotion available to e-tail servers that access the promotional server. This method and system allow a promotion to be set up once on the promotional server, while enabling an unlimited number of unrelated e-tail servers to access the promotional server to offer the promotion to their customers. A system for defining a promotion for a transaction over a network according to a first embodiment of the invention includes a promotion server system having a computer processor and associated memory, a commercial server system selectively coupleable to the promotion server over a network and at least one client system selectively coupleable to the commercial server system over the network. The promotion server system includes promotion defining code responsive to requests from the commercial server system to interactively define the terms of a promotion, promotion display code responsive to signals from the client system to transmit data representative of the terms of the promotion to the client and pointer code that points the client system to data representative of the terms of the promotion. The promotion defining code may include code for generating and transmitting to the commercial server system, in response to successive signals from the commercial server system, display screen data representative of requests for the identity of one or more items to be promoted in the promotion and requests for the terms of the promotion. The terms of the promotion may include one or more of the duration of the promotion, the type of the promotion and financial terms of the promotion. The promotion display code may include code for generating and transmitting screen data further representative of information related to the promoted item. The item related information may include one or more of static images, dynamic images, audio clips, and links to related web sites. A system for creating an item promotion over a network according to another aspect of the invention includes a promotion server system and a commercial server system selectively coupleable to the promotion server system. The promotional server system includes promotion defining code for prompting the commercial server system to input terms of the item promotion and electronic coupon creating code for creating an electronic coupon representative of the item promotion based on the promotion terms input by the commercial server system. The promotion defining code may include code for transmitting screen display data to the commercial server system, the screen display data including requests for the promotion terms. The promotion terms may include the identity of the promotional item, the type of promotion, dates of the promotion, the quantity of promotions available and the value of the promotion. The electronic coupon creating code may include code for incorporating one or more of static images, dynamic images, audio clips and links to related web sites into the electronic coupon. The electronic coupon creating code may further include linking code that links the electronic coupon to data representative of the promotion terms. The commercial server system may be selected form the group consisting of e-tail server systems, item manufacturer server systems and item distributor server systems. A method of creating an item promotion over a network according to the invention includes the steps of establishing a connection over the network between a promotion server system and a commercial server system, transmitting screen display code from the promotion server system to the commercial server system, the screen display code prompting the commercial server system to input promotion-defining terms to the promotion server system, the commercial server system inputting the promotion-defining terms to the promotion server system and the promotion server system creating an electronic coupon representative of the item promotion based on the promotion-defining terms. The method may further comprise the step of linking the electronic coupon to data representative of the promotion-defining terms. The promotion terms include the identity of the promotional item, the type of promotion, dates of the promotion, the quantity of promotions available and the value of the promotion. In the electronic coupon creating step, the promotion server system may incorporate one or more of static images, dynamic images, audio clips and links to related web sites into the electronic coupon. A system for creating an electronic coupon for an item over a network according to yet another aspect of the invention includes a promotion server system and a commercial server system selectively coupleable to the promotion server system. The promotion server system includes code for generating the electronic coupon for the item based on promotion parameters input to the promotion server system by the commercial server system. The promotion server may further include screen display code for prompting the commercial server system to input the promotion parameters. The promotion parameters may include the identity of the item, the type of promotion, dates of the promotion, the quantity of promotions available and the value of the promotion. The electronic coupon creating code may include code for incorporating one or more of static images, dynamic images, audio clips and links to related web sites into the electronic coupon. The electronic coupon creating code may further include linking code that links the electronic coupon to data representative of the promotion parameters. BRIEF DESCRIPTION OF THE DRAWINGS The foregoing and other objects of this invention, the various features thereof, as well as the invention itself may be more fully understood from the following description when read together with the accompanying drawings in which: FIG. 1 is a diagrammatic view of a system for defining promotions in accordance with the present invention; FIG. 2 is a flow diagram of a method of defining promotions in accordance with the present invention; and FIGS. 3A-3E are diagrams of the screen displays for each of the steps involved in the method in accordance with the present invention. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS The present invention is directed to a method of and system for defining promotions for items offered for sale on a communication network such as the internet. A promotion server system includes screen display code that prompts a commercial server system to input the terms of a promotion for an item, including the duration of the promotion, the value of the promotion, the quantity of promotions and the requirement for taking advantage of the promotion. Once all of the promotional terms are input by the commercial server system, the promotion server creates an electronic coupon representative of the promotion. The electronic coupon is stored in a database in the promotion server, and is available to e-tail servers offering the item for sale. FIG. 1 shows a diagram of a system 100 for defining promotions in accordance with a preferred embodiment of the present invention. The system 100 includes commercial server system 120 and promotion server system 130 connected to a common communications network 160. A client system 150 may also be connected to the communications network 160. Preferably, the commercial server system 120, promotion server system 130 and client system 150 can each be a personal computer such as an IBM PC or IBM PC compatible system or an APPLE® MacINTOSH® system or a more advanced computer system such as an Alpha-based computer system available from Compaq Computer Corporation or SPARC® Station computer system available from SUN Microsystems Corporation, although a main frame computer system can also be used. Preferably, the communications network 160 is a TCP/IP- based network such as the Internet or an intranet, although almost any well known LAN, WAN or VPN technology can be used. In one preferred embodiment of the invention, the client system 150 is an IBM PC compatible system operating an operating system such as the Microsoft Windows® operating system, and commercial server system 120 and promotional server system 130 are configured as web servers providing access to information such as web pages in HTML format via a protocol such as the HyperText Transport Protocol (http). The client system 150 includes software to allow viewing of web pages, commonly referred to as a web browser, thus being capable of accessing web pages located on commercial server system 120 and promotional server system 130. Alternatively, client system 150 can be any wired or wireless device that can be connected to a communications network, such as an interactive television system, such as WEBTV, a personal digital assistant (PDA) or a cellular telephone. In this preferred embodiment, commercial server system 120 can be either an e-tail server offering a plurality of items for sale over the Internet, a distributor or a manufacturer or items and promotion server system 130 includes a database for storing the promotional terms that define electronic coupons and promotional linking code for linking items in the inventory to the promotional terms that define the electronic coupons. Promotional server system 130 also includes the sof ware necessary to authenticate electronic coupons prior to their redemption. The items offered for sale by the e-tail server 120 can be products and/or services. In one preferred embodiment, promotion server system 130 includes web server software that is adapted to produce an electronic coupon or a book of electronic coupons that is transferred to the client system 150 in the form of an electronic token, such as a cookie, that is stored in memory at the client system. Preferably, the electronic coupon is a data structure which can include any or all of the following information elements: data representative of an electronic coupon serial number or identification number; data representative of a unique key that can be used to validate or authenticate the coupon; data representative of the vendor that authorized the coupon and will redeem the coupon; and data representative of the nature of the discount or access provided by the coupon data representative of the server or entity that issued the coupon. In one preferred embodiment, the electronic coupon can be issued as part of an electronic coupon book. The coupon book can include data representative of a version number for the electronic coupon book and data representative of a serial number or identification number for the electronic coupon book. In one preferred embodiment, the electronic coupon contains all the information necessary to redeem the coupon. Specifically, the electronic coupon identifies the grantor (i.e., the party or vendor that will redeem the electronic coupon), the nature of the discount or benefit provided and a unique serial number or other data structure that permits the electronic coupon to be authenticated or validated. Thus, a server redeeming this type of electronic coupon can obtain all the information necessary to redeem from the electronic coupon. The server can even include the software necessary to authenticate or validate the electronic coupon. In an alternative embodiment, an electronic coupon book includes a unique serial number or identification number and data structure useful for authenticating or validating the electronic coupon book. The actual content of the electronic coupon book can be determined for example, by visiting a website which reads the coupon book serial number and provides the user with listings of the coupons available. A benefit to this configuration is the organization that issues the electronic coupon book can add vendors even after the electronic coupon book has been issued. Thus, if a vendor signs up with the organization that issues electronic coupon books after a particular coupon book has been issued to a client, the vendor can be added to the electronic coupon book at a later date. In order to redeem this type of electronic coupon, the server that intends to redeem the electronic coupon must connect to an authentication server which will authenticate or validate the coupon book and indicate the nature of the benefit of the electronic coupon to the server requesting authentication/validation. Another benefit of this configuration is that the coupons are relatively tamper-proof due to the authentication and validation facilities. In many prior art systems, coupons could be copied and/or altered by the user with relative ease; in the absence of validation/authentication schemes, few reliable methods for detection of such counterfeits exist. FIG. 2 shows a flow diagram 200 of a method of defining promotions in accordance with one preferred embodiment of the invention. In a primary step 202, the commercial server system 120, FIG. 1, establishes a connection with the promotion server system 130 over communications network 160. The commercial server system then initiates the creation of a promotion by logging on to the website hosted by the promotion server system, step 204. When logged on, promotion defining code on the promotion server system generates screen display data that prompts the commercial server system to input parameters to define the promotion. In step 206, the commercial server chooses the category of the item for which the promotion is to be created, step 206. Item categories include groceries, health and beauty aids, apparel, electronics, etc. Each category includes several subcategories that help to narrow the item down to a specific class of item. An example of the parameters input by the commercial server system is described below with reference to FIGS. 3A-3E. In step 208, the commercial server system chooses the type of promotion that is to be created. The types of promotions include a value discount promotion, a percentage discount promotion, a "buy X get Y" promotion and a gift promotion, in which a client receives the promotional item free without having to satisfy any other purchasing requirements. The commercial server system then inputs starting and expiration dates for the promotion, step 210, and the total number of promotions available for redemption, step 212. The commercial server system then defines the rule for the promotion, step 214. Defining the rule includes specifying the number of items that must be purchased to take advantage of the promotion and selecting specific item that must be purchased, step 216. In step 218, the value of the promotion is defined. In the case of a value discount promotion, the actual discount in dollars and cents is defined; in a percentage discount promotion, the discount as a percentage is defined; and in a "buy X get Y" promotion, the free item (Y) that is received if the promotional item (X) is purchased, is defined. In the case of a gift promotion, only the quantity and identity of the promotional item is defined. The retail category of the item is then selected, step 220. While this is typically the same category as that chosen in step 206, it can also be any retail category within which the item can be classified. Upon choosing a retail category, the commercial server system then selects one or more e-tail server systems on which the promotion will be available, step 222. Once all of the promotion parameters have been input, the promotion is given a title, for storage on the promotion server system, step 224. A static or dynamic image for the electronic coupon that will be created by the promotion server is then either selected from a database of images on the promotion server or input to the promotion server from an external input device, step 226. Alternatively, audio clips and links to related web sites may be incorporated into the promotion. Once the terms of the promotion have been confirmed by the commercial server system, step 228, the promotion is launched and an electronic coupon is generated by code within the promotion server system, step 230. The electronic coupon is stored on the promotion server and is available to be accessed by either an e-tail server system or a client system during the course of a purchase transaction between the client system and the e-tail server system. The purchase transaction is initiated when the client system 150 establishes a connection with the commercial server system 120, which in this example is preferably an e-tail server system. During the purchase transaction, the client system 150 can trigger a promotion in a number of ways. A promotion can be triggered simply by accessing the website hosted by the e-tail server system or by selecting or purchasing a promotional item. In the latter case, the e-tail server system 120 establishes a connection with the promotion server system 130 and transfers information about the selected or purchased item to the promotion server system 130. The promotion server system 130 searches its database to locate an electronic coupon that pertains to or is related to the selected or purchased item, as determined by the commercial server system that set up the promotion. The promotional server then transmits the electronic coupon to the client in the form of screen display data. The promotion server system 130 includes pointer code that points the client system to the promotion terms stored in the database of the promotion server system when the client system 150 accesses to electronic coupon. The purchase transaction is then modified based on the terms of the promotion that is represented by the electronic coupon. An example of the creation of a promotion will now be described with reference to FIGS. 3A-3E, which are screen displays generated by the promotion server. In this example, a promotion for a $0.20 discount for "DemoProductl" brand cola is created. FIG. 3 A shows a first screen display 300 that is presented to the commercial server system after logging on to the website hosted by the promotion server system, steps 202 and 204, Fig. 2. In window 302, the category of the promotional item is selected, step 206. As shown in FIG. 3 A, the subcategory "cola" is contained in subcategories "sodas" and "beverages", which are contained in general category "groceries". Window 304 prompts the commercial server to choose the type of promotion, step 208. Since this promotion will offer a twenty cent discount, the "value discount" promotion option is chosen. Windows 306 and 308 prompt the commercial server system to input the starting and expiration dates of the promotion, respectively, step 210, and window 310 prompts the commercial server system to input the total number of available promotions, step 212. In this example, 1,000 promotions will be created. The promotion server counts from this figure every time an electronic coupon is transmitted to a client system. In a second screen display 320, FIG. 3B, the commercial server system is prompted to define the rule for the promotion, step 214. This is done by inputting the quantity of the promotional item that must be purchased to take advantage of the promotion in window 322 and inputting the brand name of the promotional item into window 324, step 216. In this example, the quantity entered in window 322 is "1" and the brand name of the promotional item "DemoProductl" is input into window 324. When button 326 is "clicked" by the user of the commercial server system, a listing of all of the products in the promotion server systems database that are categorized in the category selected in step 206 are displayed. The user then selects the promotional item from the list and it is inserted into window 324. The amount of the discount, $0.20, is input into window 328, step 218. Fig. 3C shows a third screen display 330, including a window 332 which prompts the user to select the retail category of the promotional item, step 220. The retail category "Groceries" is selected from the pull-down window that opens when arrow 334 of window 332 is "clicked". Within each retail category stored on the database of the promotion server 130 is a listing of the e-tail server systems that offer the promotional item for sale and have access to the promotion server system. Once the retail category is selected, a list of the available e-tail server systems is displayed in window 336. Using selection buttons 338, the user then selects one or more of the e- tail server systems and adds them to window 340, step 222. In this example, e-tail server system "DemoSite" is selected and added to window 340. In the final defining step, screen display 350, FIG. 3D, prompts the user to input a title for the promotion into window 352, step 224. The title "Buy 1 DemoProductl get US$0.20 off is input into window 352 for the current promotion. If no image is available in the database of the promotion server system for the promotional item, a description of the promotional item is input into window 354. However, if an image is available for the promotional item, the image is selected from window 356, which lists available images for the promotional item. Alternatively, an image can be uploaded to the promotion server system through window 358. In this example, the image "DemoCola.gif ' is selected from window 356, step 226. Once all of the promotion parameters have been entered into the promotion server system, screen display 360, FIG. 3E, is displayed to the user. Screen display 360 includes all of the promotion parameters input to the promotion server system to define the promotion, including the resulting the image of the electronic coupon 362 that is presented to the client system during the course of a purchase transaction. The user then confirms the promotion parameters, step 228, by "clicking" launch button 364. Upon confirmation of the promotion parameters, the promotion server system generates the electronic coupon, step 230, which includes display code that is presented to the client system and pointer code that points the client system to the parameters associated with the promotion which are stored in the database on the promotion server system. Accordingly, the present invention provides a method of and system for defining a promotion for a purchase transaction over a communications network. The promotions are remotely defined by commercial server systems such as e-tailers, manufacturers and distributors. The promotions and the electronic coupons that are created as a result of the definition of the promotions are stored on the promotion server system and are accessible to client systems that initiate a purchase transaction with an associated e-tail server system. The invention may be embodied in other specific forms without departing from the spirit or essential characteristics thereof. The present embodiments are therefore to be considered in respects as illustrative and not restrictive, the scope of the invention being indicated by the appended claims rather than by the foregoing description, and all changes which come within the meaning and range of the equivalency of the claims are therefore intended to be embraced therein.

Claims: CLAIMS What is claimed is: 1. A system for defining a promotion for a transaction over a network comprising: A. a promotion server system including a computer processor and associated memory; B. a commercial server system selectively coupleable to said promotion server over said network; and C. at least one client system selectively coupleable to said commercial server system over said network; wherein said promotion server system includes: (i) promotion defining code responsive to requests from said commercial server system to interactively define the terms of a promotion; (ii) promotion display code responsive to signals from said client system to transmit data representative of the terms of said promotion to said client; and (iii) pointer code that points said client system to data representative of said terms of said promotion. 2. The system according to claim 1, wherein said network is the internet. 3. The system according to claim 2, wherein said promotion defining code includes code for generating and transmitting to said commercial server system, in response to successive signals from said commercial server system, display screen data representative of: (i) requests for the identity of one or more items to be promoted in said promotion; and (ii) requests for said terms of said promotion. 4. The system according to claim 3 wherein said terms of said promotion include one or more of the duration of said promotion, the type of said promotion and financial terms of said promotion. 5. The system according to claim 4 wherein said promotion display code includes code for generating and transmitting screen data further representative of information related to the promoted item. 6. The system according to claim 5 wherein said item related information includes one or more of static images, dynamic images, audio clips, and links to related web sites. 7. A system for creating an item promotion over a network comprising: a promotion server system; and a commercial server system selectively coupleable to said promotion server system; wherein said promotional server system includes promotion defining code for prompting said commercial server system to input terms of said item promotion and electronic coupon creating code for creating an electronic coupon representative of said item promotion based on said promotion terms input by said commercial server system. 8. The system of claim 7, wherein said network in the internet. 9. The system of claim 8, wherein said promotion defining code includes code for transmitting screen display data to said commercial server system, said screen display data including requests for said promotion terms. 10. The system of claim 9, wherein said promotion terms include the identity of said promotional item, the type of promotion, dates of said promotion, the quantity of promotions available and the value of the promotion. 11. The system of claim 9, wherein said electronic coupon creating code includes code for incorporating one or more of static images, dynamic images, audio clips and links to related web sites into said electronic coupon. 12. The system of claim 9, wherein said electronic coupon creating code includes linking code that links said electronic coupon to data representative of said promotion terms. 13. The system of claim 8, wherein said commercial server system is selected from the group consisting of e-tail server systems, item manufacturer server systems and item distributor server systems. 14. A method of creating an item promotion over a network, the method comprising the steps of: A. establishing a connection over said network between a promotion server system and a commercial server system; B. transmitting screen display code from said promotion server system to said commercial server system; C. said screen display code prompting said commercial server system to input promotion-defining terms to said promotion server system; D. said commercial server system inputting said promotion-defining terms to said promotion server system; and E. said promotion server system creating an electronic coupon representative of said item promotion based on said promotion-defining terms. 15. A method of creating an item promotion over a network according to claim 14, wherein said network is the internet. 16. The method of creating an item promotion over a network according to claim 15, further comprising the step of linking said electronic coupon to data representative of said promotion-defining terms. 17. The method of creating an item promotion over a network according to claim 15, wherein said promotion terms include the identity of said promotional item, the type of promotion, dates of said promotion, the quantity of promotions available and the value of the promotion. 18. The method of creating an item promotion over a network according to claim 15, wherein, in step E, said promotion server system incorporates one or more of static images, dynamic images, audio clips and links to related web sites into said electronic coupon. 19. The system of claim 15, wherein said commercial server system is selected from the group consisting of e-tail server systems, item manufacturer server systems arid item distributor server systems. 20. A system for defining an electronic coupon for an item over a network comprising: a promotion server system; and a commercial server system selectively coupleable to said promotion server system; said promotion server system including code for generating said electronic coupon for said item based on promotion terms input to the promotion server system by the commercial server system. 21. The system of claim 20, wherein said network is the internet. 22. The system of claim 21 , wherein said promotion server further includes screen display code for prompting said commercial server system to input said promotion terms. 23. The system of claim 22, wherein said promotion terms include the identity of said item, the type of promotion, dates of said promotion, the quantity of promotions available and the value of the promotion. 24. The system of claim 21, wherein said electronic coupon generating code includes code for incorporating one or more of static images, dynamic images, audio clips and links to related web sites into said electronic coupon. 25. The system of claim 24, wherein said electronic coupon generating code further includes linking code that links said electronic coupon to data representative of said promotion parameters. 26. The system of claim 22, wherein said commercial server system is selected from the group consisting of e-tail server systems, item manufacturer server systems and item distributor server systems.

Inventors: LAOR RAVIV, LAOR, RAVIV
Applicants: CATALINA MARKETING INT, CATALINA MARKETING INTERNATIONAL, INC.
Application year: 2001
Main classification: G06F17
IPC codes: G06Q30, G09F19