marketing: T2 - ch.10
characteristics of e-marketing: [digital marketing] is distinct from traditional marketing channels in 5 key ways, they are ...?
1) addressability 2) interactivity 3) accessibility 4) connectivity 5) control
Types of Consumer Generated Marketing and Digital Media: A. Digital media are more consumer-driven than traditional media and are changing marketing. B. Two major trends have caused consumer-generated media to gain in importance. C. Understanding where online users are likely to express their thoughts and opinions can help marketers use these forums to interact with consumers, address problems, and promote their firms. D. Types of digital media in which Internet users are likely to participate include blogs, wikis, video sharing sites, podcasts, social networking sites, virtual reality sites, mobile applications, and more.
1. The increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or digital media. As a result, the environment has become more interactive. 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.
___ are web-based journals through which authors can editorialize and interact with other Internet users. (1) Two-thirds of Internet users read blogs, and over half of bloggers say that they will blog about products they strongly like or dislike. (2) Blogs give consumers power over companies because companies cannot control what bloggers write. (3) Blogs represent a marketing opportunity, as they give firms an opportunity to address consumer concerns or to defend their corporate reputations.
Blogs (web-logs)
A. Consumers now expect to have access to more information and receive it faster than before. B. Deal websites give consumers the power to comparison shop. C. Consumers can connect with each other more than ever before; can get the "real story" on products and companies. D. Marketers can adapt and use digital media to their advantage—it takes work to constantly adapt to new technologies and changing consumption patterns.
Changing Digital Media Behaviors of Consumers
___ involves using communities of interested consumers to gather input and feedback for marketing purposes.
Crowdsourcing
___ offers many benefits and opportunities, along with challenges. To evaluate the success of a campaign, a marketer should ask the following questions. 1. Did the online promotional campaign generate more business for the company? 2. Did the campaign create more interest in the company? 3. Is this increase in demand significant? The company should set a goal of how much it wants demand to increase. 4. Are there any extraneous variables that could account for an increase in sales? Just because sales or web traffic increased after the launch of a digital online media campaign does not mean the campaign was successful.
Digital media
1. The Internet is a new distribution channel that helps businesses increase efficiency. 2. Processing orders electronically reduces inefficiencies, costs, and redundancies while increasing speed. 3. Shipping times and costs are an important element in attracting customers. 4. Walmart and other retailers now offer "site to store" services that allow customers to eliminate paying for shipping and pick up orders in the nearest store. 5. Distribution involves a push-pull dynamic, with companies pushing to get products to consumers and channel members pulling to find one another.
Distribution Considerations
1. Basic Internet literacy is rising all over the world, making it a good way to reach global consumers. 2. Most businesses now find it necessary to use digital marketing to grab and maintain market share. 3. Digital media can help businesses streamline their organizations and offer new benefits and convenience to consumers
E-Marketing Strategy
A. How marketers use technology to gather information can raise many ethical and legal questions. B. The rapid spread of the Internet and digital technologies means that regulation has not kept pace.
Ethical and Legal Issues
(1) Became the largest social networking site in the world in 2008, with a third of all Internet users having visited the site. (2) Appeals to a broad demographic, making it a great resource for marketers. (3) The fastest growing demographic on Facebook is women over 55. (4) Users can become a "fan" of products and companies they like. (5) Encourages consumer interaction with companies. (6) Good resource for small companies because it is an economical way to advertise.
1. Can be ideas and creative materials, songs, movies, books, electronics, etc. that is developed to solve problems, carry out applications, and educate and entertain others. 2. Is generally protected by patents and copyrights, but these can be hard to enforce in a global marketplace. a) IP theft is a problem that has grown in the digital age with sites like YouTube and illegal software downloads on the rise. 3. The software industry is particularly hard-hit by IP violations and illegal file sharing 4. Many consumers rationalize the illegal sharing of digital content. 5. All users of digital media must make an effort to abide by ethical practices.
Intellectual Property
(1) A social networking site for professionals. (2) Is the fifth-largest social networking site. (3) A profile resembles a résumé. (4) Facilitates job searches and recruiting. (5) Companies use the site to familiarize users with their business.
(1) Predates Facebook. (2) Was once the largest social networking site until Facebook surpassed it. (3) Has a reputation for being more of a dating network than Facebook. (4) Is available in many different languages.
MySpace
1. Marketers must constantly adapt to new technologies and changing consumption patterns. 2. Digital media channels have a high attrition rate; hard to stay on top of the latest technologies. 3. Marketers may find new digital media daunting, but it is essential to learn how consumers interact with them and how digital media are changing their behaviors. 4. Charlene Li and Josh Bernoff of Forrester Research developed a classification system to help marketers understand what kind of technology users their target markets are.
Online Consumer Behavior
___ includes any attempt to conduct fraudulent activities online, such as by deceiving consumers into releasing personal information. 1. Cybercriminals are increasingly using online social networking sites and other digital media to commit fraud—either to damage a company's reputation or to gather private information from consumers. a) Criminals may seek out ways to damage a company's reputation or to extract money from customers. b) Criminals even used social networking sites to pose as charities in the wake of the 2010 earthquake in Haiti in order to siphon off donations. c) Organizations and social networking sites are seeking to develop ways to combat fraudulent online activity. d) Consumers must always be careful what information they give when online and only give out credit card numbers on trusted and secure sites.
Online fraud
a) Flickr is the most popular photo sharing website, but there are many. b) Photo sharing provides an opportunity for companies by enabling them to display snapshots of company events, staff, and products. c) Photo sharing sites allow users to upload, edit, and share photos. d) Helps to add a "personal touch" to businesses
Photo Sharing
a) Podcasts are audio or video files that can be downloaded from the Internet via a subscription that delivers content to listening devices or personal computers. b) Podcasts are convenient because the user can listen to the podcast on his/her Mp3 player at his/her convenience. c) Podcasts are a good tool for reaching the 18-29 year old demographic. d) Television networks, as well as companies, are all creating podcasts in order to benefit from this trend.
Podcasting
1. ___ is the most flexible element of the marketing mix. 2. Digital marketing can enhance products' value by providing extra benefits like service, information, and convenience. 3. Discounts and promotions can be quickly communicated using digital media. 4. Deal websites allow consumers to compare prices of products and find the best deals.
Pricing Considerations
1. One of the most significant privacy issues involves the personal information that companies collect from website visitors. a) Concerns that collecting users' information violates their privacy rights. b) Some fear that hackers might gain information stored by companies. 2. The U.S. Federal Trade Commission is considering enacting legislation that limits the information companies can gather online. Trade groups such as the American Association of Advertising Agencies, the Association of National Advertisers, the Direct Marketing Association, and the Interactive Advertising Bureau are trying to implement new policies that give consumers more control over how their online information will be used by companies.
Privacy
1. Connectivity of digital media creates opportunities for businesses to add services and to enhance product benefits. 2. Some companies use advertising campaigns and contests to develop better products; some products are only available via digital media. 3. The Internet can make it easier to anticipate consumer needs—but competition makes quality products and service offerings more important than ever.
Product Considerations
1. ___ is one of the best applications for digital media 2. Consumer consumption patterns are changing and marketers must adapt. 3. Most traditional promotions can be enhanced by using digital media.
Promotion Considerations
1. ___ evolved quickly over a short period of time. They began in the 1970s with bulletin board systems, but did not really start to take off until the early 2000s. a) They are valuable to marketers as a means of building relationships with customers, providing product information, and learning about consumer needs. b) As online ___ expands in popularity, marketers are using the venue to contact new target markets—especially the difficult-to-reach teen and young adult market. c) Online ___ are popular around the globe.
Social Networks
___ and the Internet can be a means for firms to gather free insights from consumers on how to improve products and services.
Social networking
a) Video sharing allows anyone who wishes to upload videos to the Internet to do so. b) YouTube is the most popular, but hundreds of other video sharing sites exist. c) Viral marketing is a marketing tool that utilizes the Internet, especially video sharing and social networking sites, to spread a message and create brand awareness. Campaigns that successfully go viral are transmitted rapidly around the Internet with no help from the marketer. d) Marketers increasingly use consumer-generated content for ad campaigns, rather than for hiring ad executives.
Video Sharing
a) Second Life is the most popular of virtual worlds, but there are many. b) Virtual worlds are simulated environments that can involve thousands of participants and allow users to select an avatar and live out an alternative life online. c) Some, like Second Life, allow users to buy and sell goods, services, and even real estate in the virtual realm. d) Businesses have set up virtual stores in order to take advantage of the trend.
Virtual Realities
___ are websites where users can add or edit content of posted articles. (1) Wikipedia is the most famous wiki (2) Monitoring wikis can give corporations a better idea of how consumers feel about their company or products. (3) As with other digital media, a negative representation in a wiki can damage the reputation of a company. (4) Some organizations use wikis as an internal tool for complex projects.
Wikis
5. Li and Bernioff group consumers into six groups:
a) Creators b) Critics c) Collectors d) Joiners e) Spectators f) Inactives
___ is the ability to obtain digital information. It allows consumers to find information about competing products, prices, and reviews and become more informed about a firm and the relative value of its products.
accessibility
___ (example): is when a social network is a web-based meeting place for friends, family, co-workers, and peers that allows users to create a profile and connect with other users for hte purposes that range from getting acquainted, to keeping in touch, to building a work-related network.
addressability
___ (example): on social networks comes from their ability to provide a meeting ground for individuals and groups with similar interests and consumption patterns
addressability
___ (example): inherent in digital media enhances the service dimension of products and facilitates relationship marketing through enabling customers to engage in feedback and product innovation.
addressability
___ (example): represents the ultimate expression of the marketing concept because it allows marketers to tailor marketing mixes more precisely to customers, to track online buying behavior, and to gather data on individual customers that enhance future marketing efforts.
addressability
___ is the ability for a business to identify consumers before they make a purchase
addressability
___ keeps customers and businesses connected with each other. a) ___ has improved because of digital media like Facebook and other social networking sites. b) Social networks often attract large and diverse audiences, which are appealing to marketers.
connectivity
___ refers to consumers' ability to regulate the information they receive via the Internet. a) The Internet is a "pull" medium because users can regulate the information to which they are exposed—putting the power in the hands of consumers, not marketers. b) Negative reviews can damage a company, but positive reviews represent free publicity.
control
___ is essential, for many businesses, in attaining and retaining a competitive advantage.
digital marketing
___ uses digital media to develop communications and exchanges with customers
digital marketing
___ are electronic media that function using digital codes
digital media
the most important benefit of ___ is the ability of marketers and consumers to share information. The ___ has changed how marketers communicate with consumers, suppliers, and employees.
e-marketing - internet
___ (example): -can help facilitate and enable ongoing conversations with customers, often in real-time, through the use of blogs and social networking sites.
interactivity
___ (example): -focuses on digital media that make interpersonal connections possible.
interactivity
___ allows customers to express their needs and wants directly to the firm in response to its communications, in contrast to the one-way communications of traditional marketing media.
interactivity
___ refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing.
electronic marketing
___ allows marketers to communicate with consumers, reach new markets, and target markets more precisely. 1) it is important that marketers incorporate multiple digital media into their marketing strategies. 2) it is a growing area that is quickly changing.
internet
___ such as smartphones and PDAs, utilize apps to help consumers access more information about businesses.
mobile devices
___ are meetings places where users connect with one another by creating profiles and searching networks for people to add as friends or followers.
social networks
(1) Is a hybrid social networking and micro-blogging site. (2) Companies use Twitter to announce sales, promotions, and updates on products and services. (3) Can help (re)build customer relationships. (4) Can give companies a competitive advantage.
