Ch 9: E-Marketing

Digital Marketing
Electronic media that function using digital codes
E-Marketing
Refers to strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media
Internet and Digital Communication Technologies
-Allows marketers to..
-forge interactive relationships with consumers
-reach new markets
-target markets more precisely
Internet and Digital Communication Technologies
-It is important to…
-use multiple digital media in marketing strategies
-be aware of rapid changes in technology
E-Marketing
The most important benefit is the ability to share information
-between marketers and consumers
-among employees
-with supplies
Characteristics of E-Marketing
Digital Marketing differs from traditional marketing in five key ways(AIACC)
-Addressability
-Interactivity
-Accessibility
-Connectivity
-Control
Addressability
The ability of a marketer to identify customers before they make a purchase
-Social network: web-based meeting place that allows users to create a profile and connect with other users for many different purposes
-Addressability facilitates relationship marketing by enabling customer engagement to create product innovation
Interactivity
Allows customers to express their needs and wants directly to the firm in response to marketing communications
-Contrasts with the one-way communications of traditional marketing media
-Many digital media allow for ongoing, real-time conversations between marketers and consumers
Accessibility
The ability to obtain digital information on competing products, prices, reviews, and details on firms
– mobile marketing allows marketers to offer promotions and incentives via customers’ mobile devices
Connectivity
the use of digital networks to provide linkages between information providers and users
Control
consumers’ ability to regulate the information they view and the rate and sequence of their exposure
-the internet is a pull medium because users control what information they view
-more power is in the hands of consumers
Top Objectives for Mobile Marketing
-Increase customer engagement
-improve customer satisfaction
-appear as innovative
-build loyalty
Trends In Digital Marketing
-Consumers increasingly tend to publish their thoughts, opinions, reviews, and product discussion on blogs and other digital media
-more interactive than traditional marketing media
-Consumers trust other consumers over corporations
-they rely on the recommendations of family, friends, and fellow consumers when making purchases
Social Networks
-Most Consumers have visited online social networking sites
-There are many different sites, and the number is growing
-Facebook
-Twitter
-LinkedIn
Facebook
-The most popular social networking site
-Appeals to a broad demographic
-fastest-growing segment is women over 55
-Encourages consumer interaction with companies and products
-Good Resource for marketers
-Low-Cost advertising
-Reaches new markets
LinkedIn
-A social network for professionals
-a profile resembles a resume
-Facilitates professional networking, job searches, and recruiting
-Companies uses the site to familiarize people with their businesses
Twitter
-A hybrid social networking and micro-blogging site
-Companies announce sales, promotions, and product updates via tweets
-Can help (re)build customer relationships
Blogs
Web-based journals through which authors can editorialize and interact with other internet users
-2/3 of Internet users have read blogs
-give consumers power over companies because they cannot control what bloggers write
Wikis
Type of software that creates an interface that enables users to add or edit the content of some types of websites
-Monitoring wiki sites can give firms ideas about how consumers feel about their company or products
-Some companies use wikis as internal tools for project teams
Photo Sharing
Sites allow uses to upload, edit, and share photos
-Businesses use photo sharing to display images of products
Video Sharing
Lets users upload videos to the internet
-companies increasingly use consumer-generated content from amateur filmmakers rather than professional ad agencies
Podcasting
podcasts are audio video files that can be downloaded from the internet via a program that delivers content to listening devices or personal computers
-convenient
-popular with the 18-29 demographic
Virtual Realities
Computer-based, online, simulated environments where users create three-dimensional worlds with their own economies, lands, and residents
– can involve many thousands of players
Many real businesses have set up virtual stores to take advantage of popularity
Creators
Create their own media outlets
Critics
comment on blogs or post ratings and reviews
Collectors
Collect and organize content generated by creators and critics
Joiners
Anyone who becomes a user of social networking sites or other online communities to connect and network
Spectators
Read online information but do not produce any themselves
Inactives
do not participate in online digital media; numbers are dwindling
Consumers (Digital Media Behavior)
-Want more and faster access to information
-are empowered to comparison shop for the best deals
-can connect with each other
-marketers must adapt to and use the new media to their advantage
– examine how consumers are using the internet to create better marketing mixes
Online Consumer Behavior
-requires constant effort to stay on top of technological change
-customers’ habits and consumption patterns change
-learning how to use new media can be daunting for many marketers
The Pepsi Refresh Project
-launched in 2008
-provides funding for worthy non-profits and community organizations in the U.S.
-consumers vote on their favorite Pepsi Refresh website
-encourages online interaction between consumers and Pepsi
-Improves goodwill and positive image of the company
Product Considerations
-The connectivity of digital media creates opportunities for businesses to add services and to enhance product benefits
– some products are now only available digitally
-some companies use advertising campaigns and contest to develop better products
-the internet can make it easier to anticipate consumer needs
Distribution Considerations
-digital marketing is a new distribution channel
-reduces inefficiencies, costs, redundancies, and increases speed
-shipping times and costs are an important element in attracting customers
-distribution involves a push-pull dynamic
-companies push to get products to consumers, and channel members pull to find one another
Promotion Considerations
-promotion is one of the best applications for digital media
-discounts and other promotions can be quickly communicated
-consumer consumption patterns are changing rapidly and marketers must adapt
-almost any traditional promotion can be enhanced or replaced by digital media
Pricing Considerations
-price is the most flexible element of the marketing mix
-increased consumer demand for low prices
-broad access to pricing information puts pressures in marketers to differentiate products
-customers will focus more on attributes than on price
Using Digital Media in Marketing Research
-digital media can be a useful resource for marketing research
-many online research services are cheaper than traditional counterparts
-digital media help level the playing field between large and small firms
Crowdsouricing
outsourcing marketing tasks to a large group of people
Ethical and Legal Issues
-how marketers and others use digital technology to gather information can raise ethical questions
-regulation has not kept pace with technological advances
-major issues
-privacy
-online fraud
-intellectual property protection
Privacy
A significant privacy issue is the use of personal information that companies collect from website visitors
-concerns that this violates privacy rights
-some fear that hackers can gain information stored by companies