Marketing 3343 Chapter 9

One of the most significant privacy issues relates to marketers' use of _____________.

b. personal information

Pricing Considerations

Online retailers can capture customers with strong value propositions through sales, reward programs, discount codes, and other promotional opportunities.

Online Fraud 2

Phishing is a type of fraud that occurs when cybercriminals trick users into providing their personal information by pretending to be a legitimate web entity. Cybercriminals then use this information to pose as the user online.

What two major trends have caused consumer-generated information to gain importance:

1. The increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or other digital media. 2. Consumers' tendencies to trust other consumers over corporations. Consumers often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions.

Small businesses don't:

Despite the extensive use of online promotion from all types of industries, small businesses do not engage in paid Internet advertising as much due to smaller budgets. Facebook and other digital companies are studying ways to communicate to smaller businesses how paid advertising can create value for their companies.

Google Analytics

The Google Analytics dashboard is broken into five sections: Real-Time, Audience, Acquisition, Behavior, and Conversions. Using this tool allows you to identify your website's strengths and weaknesses and uncover opportunities for growth. is arguably the most robust web analytics tool available For example, PBS uses Google Analytics to monitor the web performance for multiple properties and track key events like user registrations and video views.

Promotion Considerations

The majority of this chapter has discussed ways that marketers use digital media to promote products, from creating profiles on social networks to connecting with consumers to inserting brands into virtual social games. Online advertising includes many types of display advertising, including the use of text, logos, animation, video, photographs, or any other type of graphic display. Currently, Internet advertising revenues surpass $50 billion and continue to grow. A major advantage of Internet advertising is being able to track advertising statistics. High-impact digital advertisements featuring large and interactive formats drive higher response ratios. Marketers are tracking and maximizing Internet advertising to improve the value of their products.

Distribution Considerations

The role of distribution is to make products available at the right time, at the right place, and in the right quantities. Digital marketing can be viewed as a new distribution channel that helps businesses increase efficiency. The ability to process orders electronically and increase the speed of communications via the Internet reduces inefficiencies, costs, and redundancies while increasing speed throughout the marketing channel. Shipping times and costs have become an important consideration in attracting consumers, prompting many companies to offer consumers low shipping costs or next-day delivery.

Electronic Marketing

The strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing. Our definition of e-marketing goes beyond the Internet and includes mobile phones, banner ads, digital outdoor marketing, and social networks.

Digital Marketing

Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers Digital marketing is also creating new distribution methods for common products. For instance, Amazon.com has expanded into door-to-door deliveries of groceries. Green Amazon Fresh trucks can be found delivering groceries in Seattle, parts of California, New York, Boston, London, and more.

Social Network

a website where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication.

Which of the following is NOT a way that consumers rationalize pirating software, games, and movies online?

a. They worry about getting arrested.

Any attempt to conduct dishonest activities online would be described as ______________.

a. online fraud

Podcasts

are audio or video files that can be downloaded from the Internet with a subscription that automatically delivers new content to listening devices or personal computers. Podcasts offer the benefit of convenience, giving users the ability to listen to or view content when and where they choose. They have also shown to be influential over consumer buying habits. For instance, listening to nutrition podcasts while in the grocery store increases the likelihood that shoppers will purchase healthier items.

Digital Media

are electronic media that function using digital codes—when we refer to digital media, we are referring to media available via computers, mobile devices, and other digital devices that have been released in recent years.

Key performance indicators (KPIs)

are embedded at the onset of a social media strategy that can allow almost real-time measurement and evaluation. This provides a foundation for making iterative changes to implementation and tactical execution.

Widgets

are small bits of software on a website, desktop, or mobile device that performs a simple purpose, such as providing stock quotes or blog updates. Marketers might use widgets to display news headlines, clocks, or games on their webpages. For example, CNBC uses widgets to send alerts and financial news to subscribers.

Blogs (short for "weblogs")

are web-based journals in which writers can editorialize and interact with other Internet users. More than three-fourths of Internet users read blogs.

ACME Corp. is developing a software program that can run on mobile devices so that customers can interact with the firm, view product information, and order status. This is best described as a(n) ___________.

b. app

The "bricks-and-clicks" model involves maintaining _____________.

b. physical stores and an online shopping site

Several marketers also use

buying incentives like online coupons or free samples to generate consumer demand for their product offerings.

Which of the following is the percentage of consumers that clicked on a link of a site?

c. Click-through rate

Which of the following is NOT true about digital marketing as a new distribution channel?

c. It increases inefficiencies throughout the marketing channel.

Which of the following is a website (or app) where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication?

c. social network

Digital connections can help the customer

find the price of the product available from various competitors in an instant.

Two trends have elevated the importance of consumer-generated information: 1) The growing tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions; and (2) ______________.

d. consumers' tendencies to trust other consumers over corporations

The Internet is viewed as a ____ medium because users determine which material they are going to view.

d. pull

click-through rate (CTR)

determines the percentage of consumers that clicked on a link on a site as a quantitative measure. In addition, a qualitative metric could reveal how consumers feel about a product.

Mobile Applications

software programs that run on mobile devices and give users access to certain content.

Online Fraud

includes any attempt to purposely deceive online. Online fraud includes, among other things, attempts to deceive consumers into releasing personal information. Hacking has also become a major problem in the digital realm. Hackers break into websites and steal users' personal information.

Digital Promotions all attempt to:

increase brand awareness and market to consumers. As a result of online promotion, consumers are more informed, reading user-generated content before making purchasing decisions and increasingly shopping at Internet stores. Consumer consumption patterns are changing radically, and marketers must adapt their promotional efforts to meet these new patterns.

Wiki

is a type of software that creates an interface that enables users to add or edit the content of some types of websites. One of the best known is Wikipedia, an online encyclopedia with nearly 40 million article entries in 293 languages on nearly every subject imaginable.

Google's AdWords

is the dominant player in the online advertising market, and the company wants to take its success into the mobile realm as well. To achieve its goals, Google launched an initiative called Enhanced Campaigns and required users of its AdWords service to participate. Enhanced Campaigns requires advertisers to bid on advertisements across a number of devices, including mobile and tablets.

Without digital media monitoring and evaluation...

it will not be possible to maximize resources and minimize costs in social media marketing. The strength of measurement relates to the ability to have online analytics and metrics. Social media monitoring involves activities to track, measure, and evaluate a firm's digital marketing initiatives.

More than ______ of the world's population uses the Internet, and this number is growing at a high rate

one-third

Digital media marketing facilitates both

price and nonprice competition, because Internet marketing gives consumers access to more information about products and prices.

Websites provide

price information, and mobile applications can help the customer find the lowest price. Consumers can even bargain with retailers in the store by using a smartphone to show the lowest price available during a transaction. While this new access to price information benefits the consumer, it also places new pressures on the seller to be competitive and to differentiate products so that customers focus on attributes and benefits rather than price.

Pricing

relates to perceptions of value and is the most flexible element of the marketing mix.

Omni-Channel retailing

retailing where retailers offer a seamless experience on mobile, desktop, or traditional retail spaces. For example, many retailers aim to offer consistent product assortments and pricing on all channels as well as streamline the return process. A customer may research a purchase online, shop in-store, browse an in-store digital catalog, and then use a coupon from the retailer's app at checkout. Seventy-three percent of shoppers use multiple channels while shopping, making a seamless shopping experience a way to differentiate a retailer from its competitors. The survey revealed customers researching online before in-store shopping led to 13 percent more in sales among omni-channel shoppers. Blue Nile's shops, called a "Webroom," are showrooms only, meaning customers can touch and feel the products, but all orders are placed online, saving the company money in distribution costs and real estate costs associated with large storefronts.

One of the most important benefits of e-marketing is the ability of marketers and customers to __________.

share information

As consumers become more informed about their options

the demand for low-priced products has grown, leading to the creation of daily deal sites.

Which of the following is one of the biggest mistakes a marketer can make when engaging in digital marketing?

to treat it like a traditional marketing channel