MKTG 303 Chapter 3

may limit exposure if ad is very successful.

A disadvantage for companies using a "daily budget" such as that offered by Facebook to its advertisers is that it

conversion rate

A measure that indicates what percentage of visitors or potential customers act as the marketer hopes, whether by clicking, buying, or donating. Not only does it measure how well the site is achieving its goals, it can also signal a serious problem

thought-sharing sites

consists of different types of blogs: corporate, professional, personal and micro -*effective for creating a sense of community* -4E framework, this *engages* -ex: blogs, Microblogs, Twitter

information effect

the outcome of social media in which relevant information is spread by firms or individuals to other members of its social network -information is the key to turning the wheel -ex: BMW and China

social network sites

websites that allow users to meet, communicate, and share information online -4E framework, this creates *excitement* -ex: FB, LinkedIn, Google+

hits

total requests for a page

three step process to engage customers through social media

-*listening* to what customers have to say -*analyzing* the information available through various touch-points -implementing (or *doing*) social media tactics to excite customers.

dynamic effect

-Information is exchanged to network participants through back-and-forth communications -Examines how people flow in and out of networked communities as their interests change. -ex: At the Sol Wave House hotel, located on the beautiful island of Majorca, Spain, a Twitter concierge stays in constant contact with its guests. If a guest has a problem or question, the answer is just a hashtag away.

Primary needs an app delivers

-the need to find "me" time -socialize -shop -accomplish -prepare -discover -self-express

4E Framework for Social Media

1. *Excite* the Customer with relevant offers 2. *Educate* the Customer about the offerings 3. *Experience* the Product or Service whether directly or indirectly 4. *Engage* the Customer EX-ED-EX-EN

steps in digital marketing campaign

1. Identify strategy & goals 2. Identify target audience 3. Campaign: experiment & engage 4. Develop budget 5. Monitor and change

freemium app

Apps that are free to download, but include in-app purchases -best pricing model is the freemium app.

paid app

Apps that charge the customer an upfront price to download the app ($0.99 is the most common), but offer full functionality once downloaded.

timeliness effect

Concerned with the firm being able to engage with the customer at the right place/time—their ability to do so 24/7 from any location.

multiple channels

Customers thus demand that firms offer them a range of options, consistently and constantly, so that they can pick and choose the channel from which to purchase at any specific time. -*most loyal customers use it*

microblog

Differs from a traditional blog in size. Consists of short sentences, short videos, or individual images. -Twitter is an example of a microblog.

reviewing and giving product and service recommendations

From a marketing perspective, what role is played by professional bloggers?

network effect

The outcome of social media *engagement* in which every time a firm or *person posts information, it is transferred to the poster's vast connections across social media*, causing the information to *spread instantaneously* -ex: Katy Perry sharing a pic about covergirl mascara

corporate blogs

These blogs can *educate customers as they discuss their products or services*, and create *excitement when they promote special offers.* -they do not have control over customers' posts, and sometimes the customers' posts are negative, this two-way dialog with end users is very engaging -*typically provides the highest level of digital marketing control for companies.*

media-sharing sites

Web sites that allow users to upload and distribute multimedia content like videos and photos -4E framework, this *experiences* -ex: YouTube, Flickr

digital

What type of marketing pertains to all online marketing activities?

call-to-action buttons

Which of the following encourages visitors to delve deeper into a website, to explore other pages and, in general, spend more time on the site?

keyword analysis

an evaluation of what keywords people use to search on the internet for their products and services

connected effect

an outcome of social media that *satisfies humans' innate need to connect with other people* -connection is *bidirectional* (people learn what their friends are interested in, but they also broadcast their own interests and opinions to those friends. -*Individuals achieve this connection by checking in, posting a picture to Instagram, uploading a video to YouTube, or sharing a link to an article they have liked on Facebook.*

social networking sites, media-sharing sites, thought-sharing sites

categories of social media

contextual elements

color, font

paid app with in-app purchases

consumer pays initially to download it and then offer the ability to buy additional functionality

educate

educate the customer about offerings -ex: While waiting in line to make a purchase at Best Buy, Janice sees signs reminding her to visit the company's website for online specials and to sign up on her smartphone for the Best Buy Loyalty Rewards Program. Other signs remind her that Best Buy will match competitors' prices on any item they sell.

excite

exciting customers with relevant offers -ex: A Groupon offer for discounted theater tickets was sent to targeted customers who had previously purchased movie or theater tickets. -ex2: While waiting to be seated at a restaurant, Jason receives a customer loyalty coupon through an app on his mobile phone for half off a dessert with the purchase of an entrée. -ex3: When the Minnesota Timberwolves encouraged Facebook fans to post a great shot of a dunk onto its Pinterest page for a chance to win tickets to a game

engagement

involving customers directly in the development of a brand in hope to build a strong two-way relationship with customers and win long-term loyalty -*aimed at action, the potential for a relationship, and possibly even loyalty and commitment* -ex: Dustin posting an entry in his blog with videos he took with it talking about how happy he is with his new GoPro camera. -ex2: Andrew's Complete Cameras offers its customers an interactive website to help them choose the best camera for their lifestyle. But the site's most-used feature is its user blog in which customers—both satisfied and unsatisfied—talk about products they have purchased and the service received at Andrew's. The user blog is ___

blogs

online journals where people post their thoughts, usually on a narrowly defined topic -good for *educate* in 4E framework

beacon technology

technology that allows companies to detect where customers (who have enabled the feature) are at each moment, through their smartphones.

informational content

text, graphics, video, and audio

social media

the online and mobile technologies that distribute content to facilitate interpersonal interactions

bounce rate

the percentage of times a visitor leaves the website almost immediately, such as after viewing only one page

showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Wheel of social media engagement

Information Connected Network Dynamic Timeliness

experience

experience the product or service whether is it directly or indirectly -ex: Jose *tries on a suit virtually*. It even offers an interactive "custom fit" feature. After checking out his options, Jose takes his measurements and orders a suit without ever leaving his office. -ex2:It is not unusual to see firms offering free product samples in grocery stores to let customers try the product before buying it. Similarly, in today's world of digital marketing, one can read a chapter of a book before buying it, or watch YouTube videos on different ways to use a product. -ex3: firms offering free product samples in grocery stores to let customers try the product before buying it. Similarly, in today's world of digital marketing, one can read a chapter of a book before buying it, or watch YouTube videos on different ways to use a product.

ad-supported

free to download but appear as ads on the screen. They generate revenues as users interact with the app.

sentimental analysis

a technique that allows marketers to *analyze data from social media sites* to *collect consumer comments* about companies and their products -ex: Suppose that Burger King wanted to evaluate social media content to find out how well its most recent advertising campaign was being received by consumers.* -*Marketers analyze the content found on sites like Facebook, Twitter, online blogs, and online reviews to assess the favorability or unfavorability of the sentiments.*