Chapter 9 Digital Marketing and Social Networking wecandGetty

Chapter 9 Digital Marketing and Social Networking ©wecand/Getty. Images © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Learning Objectives Describe the growths and benefits of digital marketing Learn how types of consumer-generated marketing and digital media can be used as effective marketing tools Understand the changing digital media behaviors of consumers © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Learning Objectives Understand identify how digital media can be used in an e-marketing strategy Identify legal and ethical considerations in digital media and electronic marketing © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Growth and Benefits of Digital Marketing Digital media: Electronic media that function using digital codes Digital marketing: Develops communication and exchanges with customers through all digital media Electronic marketing: Using digital media and digital marketing to: Distribute, promote, and price products Discover the desires of customers Help marketers to share information to the customers © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point Digital Marketing Marketers can use a number of digital media sites, including You. Tube, Facebook, Pinterest, and Flickr, to promote products and create company awareness.

©wecand/Getty. Images Growth and Benefits of Digital Marketing Marketers use technology to form relationships, coordinate, and communicate with stakeholders Small businesses - Use digital media to reach new markets and access inexpensive communication channels Large businesses - Use digital media to supplement their brick-and-mortar stores © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Characteristics of Online Media Characteristic Definition Addressability • Marketers’ ability to identify customers before they make a purchase Interactivity • Customers’ ability to express their needs and wants directly to the firm • In response to the firm’s marketing communications Accessibility • Marketers’ ability to obtain digital information Connectivity • Consumers’ ability to be connected with marketers along with other consumers Control • Customer’s ability to regulate the information they view and the rate and exposure to that information © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Consumer-Generated Marketing Trends that have caused consumer-generated information to gain importance Use of blogs or digital media by consumers to publish their thoughts, opinions, reviews, and product discussions Consumers’ tendencies to trust other consumers over corporations © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Types of Digital Media Social networking sites Blogs and wikis Media-sharing sites Virtual reality sites Mobile devices Applications and widgets © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Social Network Web-based meeting place that allows users to create a profile and connect with other users To get acquainted, keep in touch, or build a work related network Marketers use them to: Promote products Handle questions and complaints Assist customers in buying decisions © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Figure 9. 1 - Do You Use Social Networking Sites? © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Social Network Facebook • Used by marketers to: • Market products and interact with consumers • Take advantage of free publicity • Engage in e-commerce • Engage in relationship marketing, making consumers feel more connected to their products Twitter • Hybrid of a social networking site and a microblogging site • Used to enhance customer service, create publicity about products, and gain a competitive advantage © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Blogs and Wikis Blog Wiki • Web-based journal where writers can editorialize and interact with other Internet users • Gives consumers control and can affect the image of a company • Used by corporations to: • Answer consumer concerns • Defend their corporate reputations • Software that creates an interface enabling users to add or edit the content of some types of websites • Used as an internal tool for teams on projects requiring lots of documentation • Provides companies with a better idea of how consumers feel about the company brand © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point - The World’s Largest Wikipedia is an online encyclopedia that allows users to add or edit information in more than 250 languages.

©wecand/Getty. Images Media Sharing Sites Allows businesses to share their corporate messages in more visual ways Limited in scope in how companies interact with consumers More promotional than reactive Popularity of these sites provides wide reach © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Media Sharing Sites Photo-sharing sites • Allow users to upload and share their photos with the world • Companies can market themselves by displaying snapshots of their: • Corporate events • Staff and products Video sharing sites • Allow users to upload videos • Companies can upload ads and informational videos about their products Podcasts • Audio or video files that can be downloaded from the Internet with a subscription • Automatically delivers new content to listening devices or personal computers • Companies can create brand awareness, promote their products, and encourage customer loyalty © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point - Photo -Sharing Flickr is a very popular site that allows photo and video sharing.

©wecand/Getty. Images Virtual Sites User-created, three-dimensional worlds that have their own: Economies and currencies Lands and residents Offer opportunities for marketers to connect with consumers in unique ways Used by some firms for recruiting purposes © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Mobile Devices Allow customers to leave their desktops and access digital networks from anywhere Common mobile marketing tools SMS messages and multimedia messages Mobile advertisements Mobile websites Location-based networks Mobile applications: Software programs that run on mobile devices and give users access to certain content © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point • Companies have begun to embed advertising through the use of digital games played on smartphones. • These ads are targeting children 9 years old and younger. • Is it acceptable to market to children through mobile games?

©wecand/Getty. Images Applications and Widgets Applications • Offer convenience and cost savings to consumers • Companies use mobile marketing to offer additional incentives to consumers • Allow shoppers to compare prices or download electronic discounts • Small bits of software on a website, desktop, or mobile device • Enables users to interface with the application and operating system • Used to: • Personalize webpages • Alert users to company information • Spread product awareness © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Changing Digital Media Behaviors of Consumers are better abled to regulate the information that they view Result of digital media Marketers: Have limited control over the content to which users are exposed Adopt a different approach than traditional marketing Effectively target their messages to the audience Easily track the success of their online marketing campaign Enjoy free publicity by way of positive customer feedback © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Table 9. 2 - Social Technographics © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images E-Marketing Strategy Businesses use digital marketing to gain or maintain market share Product considerations Opportunity to: Add a service dimension to traditional products Create products accessible only on the Internet Ability to access product information for any product impacts buyer decision making Essential for continually upgrading products to meet consumer needs © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images E-Marketing Strategy Online advertising campaigns and contests can be used to help develop better products Distribution considerations Makes products available at the right time, place, and in right quantities Helps businesses increase efficiency Push-pull dynamic Push products through the marketing channel to consumers Enable customers to pull products through the marketing channel © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point - Distribution • The growth in popularity of e -readers had lead to a greater direct distribution of magazines, newspapers and books • Do you own an e-reader? • If so, do you access books, magazines or newspapers?

©wecand/Getty. Images E-Marketing Strategy Promotion considerations Allows marketers to approach promotion in new, creative ways Increases brand awareness and markets to consumers Traditional promotional events can be enhanced or replaced by digital media Pricing considerations Consumers gain access to more information about costs and prices Demand for low-priced products increases © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images E-Marketing Strategy Enables customers to compare prices of products Sellers are pressured to: Offer buying incentives to generate demand Differentiate products so that customers focus on attributes and benefits other than price © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Ethical and Legal Issues Privacy Online fraud Intellectual property © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Privacy Misuse of personal information collected from website visitors May violate user's privacy Hackers can steal personal information Scraping - Collecting personal information from social networking sites and other forums Counteractive measures Developing regulations to limit the amount of consumer information that can be gathered online Web advertisers are attempting self-regulation © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Discussion Point - Online Security Both firms and government agencies such as the Federal Trade Commission are working to protect consumer privacy and prevent unauthorized access to consumers’ information.

©wecand/Getty. Images Online Fraud Any attempt to conduct dishonest activities online Avenues for fraud Fraudulent profiles on social networking sites Mobile payments Counteractive measures Some firms monitor social networks for fraudulent accounts To avoid divulging personal information online © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©wecand/Getty. Images Intellectual Property Copyrighted or trademarked ideas and creative materials developed to solve problems, carry out applications, and educate and entertain others Consumers’ rationalizations for piracy No money to pay for what they want Peer influence to engage in piracy and swap digital content The thrill of getting away with it and the slim risk of consequence Allows them to show tech savvy they are © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.