Marketing Management Fifteenth Edition Chapter 19 Managing Digital

Marketing Management Fifteenth Edition Chapter 19 Managing Digital Communications: Online, Social Media, and Mobile And Database Marketing Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Learning Objectives 21. 1 What are the pros and cons of online marketing? 21. 2 How can companies carry out effective social media campaigns? 21. 3 What are some tips for enjoying positive word of mouth? 21. 4 What are important guidelines for mobile marketing? Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Online Marketing (2 of 4) Advantages Disadvantages • Can offer or send tailored information/messages • Consumers can screen out most messages • Can trace effects by UVs clicks on a page/ad • Ads can be less effective than they appear (bogus clicks) • Contextual placement • Can place advertising based on search engine keywords • Lost control over online messages via hacking/vandalism Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Figure 21. 1 Major Media Time Spent Per Day Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Online Marketing (3 of 4) • Communication Options – – Web sites Search ads Display ads E-Mail Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Online Marketing (4 of 4) • Web sites – Ease of use – Physical attractiveness – Microsites • Search ads – Paid search or pay-perclick ads – Search engine optimization (SEO) Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Seven Key Design Elements of a Website Figure 21. 2 Seven Key Design Elements of an Effective Web Site • Context • Content • Community • Communication • Customization • Connection • Commerce Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Maximize the Marketing Value of e -mails • Give the customer a reason to respond • Personalize the content of your e-mails • Offer something instead of direct mail • Make it easy to opt and unsubscribe • Combine e-mail and social media Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Social Media (1 of 2) • Means for consumers to share text, images, audio, and video information with each other and with companies, and vice versa – Online communities/forums – Blogs – Social networks Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Social Media (2 of 2) • Social media are rarely the sole source of marketing communications for a brand – Only some consumers want to engage with some brands, and, even then, only some of the time Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Word of Mouth • Face-to-face and phone • Online – Viral marketing (“word of mouse”) Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Creating Word-of-Mouth Buzz • Identify and devote effort to influentials • Supply key people with product samples • Work through community influentials • Develop WOM referral channels • Provide compelling info to pass along Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Mobile Marketing (1 of 4) • Is uniquely tied to one user • Is virtually always “on” • Allows for immediate consumption • Is highly interactive Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Mobile Marketing (2 of 4) • Mobile apps – Bite-sized software programs that can be downloaded to smart phones Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Mobile Marketing (3 of 4) • Being concise is critical ‒ Copy should be only 50% of screen ‒ Brands should limit ads to a pair of phrases: offer and tagline ‒ Put brand logo in corner of ad frame ‒ Use only one or two bright colors ‒ Calls to action should be in a bright color Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Mobile Marketing (4 of 4) • Across markets – In developed Asian markets, mobile marketing is fast becoming a central component of customer experiences Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases and Database Marketing (1 of 5) • A customer database – An organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases and Database Marketing (2 of 5) • Database marketing – The process of building, maintaining, and using customer databases and other databases (of products, suppliers, or resellers) to contact, transact, and build customer relationships Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases Customer database Business database • Transactions • Past purchases • Registration information • Past volumes, prices, and profits • Telephone queries • Buyer teams’ names • Cookies • Contract status • Every customer contact • Supplier’s share of customer’s business • Past purchases • Demographics • Psychographics • Competitive suppliers • Competitive strengths and weaknesses • Mediagraphics Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases and Database Marketing (3 of 5) • Data warehouse – Captures, queries, and analyzes data to draw inferences about an individual customer’s needs and responses • Data mining – Uses sophisticated statistical and mathematical techniques on data to extract useful information about individuals, trends, and segments Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases and Database Marketing (4 of 5) • Companies can use their databases in five ways ‒ ‒ ‒ To identify prospects To decide which customers get an offer To deepen customer loyalty To reactivate customer purchases To avoid serious customer mistakes Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Customer Databases and Database Marketing (5 of 5) • The downside of database marketing – Some situations are just not conducive to database marketing (once in a lifetime purchase) – Building and maintaining a customer database require a large investment – Employees may resist becoming customer-oriented and using the available information – Not all customers want a relationship with the company (EU passed law to restrict database marketing) – The assumptions behind CRM may not always hold true Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved

Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved