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Digital innovation & business transformation > 2. Digital marketing > Flashcards

2. Digital marketing Flashcards

1
Q

DEFINITION: WHAT IS
MARKETING?

A

Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.

Marketing (Management) …”is the art and
science of choosing target markets and
getting, keeping and growing customers
through creating, delivering and
communicating superior customer value.”
(Philip Kotler)

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2
Q

WHAT IS MARKETING?

A

Marketing (Management) =
* the art and science of choosing
target markets…

  • and getting, keeping and growing
    customers…
  • through creating, delivering and
    communicating superior customer
    value.” (Philip Kotler)

Marketing = market-oriented management

Who are my customers?
What do they need/want?
What are they doing/where are they?

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3
Q

WHAT IS DIGITAL
MARKETING?

A

”Achieving marketing
objectives through applying
digital media, data and
technology.”

APPLYING…
Digital technologies which form online
channels…

TO…
Contribute to marketing activities aimed at
achieving profitable acquisition and retention of
customers…

THROUGH…
Improving customer knowledge, then delivering
integrated targeted communications and online
services that match their individual needs.

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4
Q

What is digital marketing strategy framework?

A

Source: Kannan & Li 2017

  1. Environment
  2. Company
  3. Outcomes
  4. Market research
  5. Marketing strategy
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5
Q

WHAT IS DIGITAL MARKETING CAPABILITIES AND
FIRM PERFORMANCE?

A

Source: Homborg & Wielgos (2022)

Digital Marketing Capabilities (DCM) contribute to firm profitability beyond
the influence of Classical Marketing Capabilities (CMC).

  • There is an interaction effect between DCM and CMC – both can jointly hurt
    or benefit firm profitability, depending on moderating contingencies.
  • The simultaneous employment of DMCs and CMCs has a positive effect on
    firm profitability if customer orientation is high and a negative effect of
    customer orientation is low.
  • Competitor orientation lowers the deployment of DMCs and CMCs resulting
    in lower firm profitability
  • The simultaneous deployment of DMCs and CMCs is particularly valuable
    when firms face rapid changes in dynamic environments.
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6
Q

What is the marketing mix

A

4 P’s

  • Product
  • Price
  • Place
  • Promotion
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7
Q

What happens when products go to platforms?

A
  • Products produce a single revenue stream, while
    platforms can generate many.
  • Great platform starts with a great product (critical
    mass of customers and provides enough value to
    keep them from defecting to competitors).
  • The product must also attract enough frequent
    users to make the potential platform appealing to
    third parties.
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8
Q

What are the 6 steps in traditional price setting?

A
  1. Selecting the pricing objective
  2. Determining demand
  3. Estimating costs
  4. Analyzing competitor’s costs, prices, offers
  5. Selecting a pricing method
  6. Selecting the final price
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9
Q

What is price policy?

A

Price Transparency
Price Framing
Showrooming

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10
Q

What are the price models?

A
  1. “For free”
  2. Freemium
  3. Subscription
  4. Dynamic pricing
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11
Q

What is the price model - “For free” ?

A
  • activate latent demand for attracting new
    consumers
  • attract more customers to generate
    network effects
  • charge third parties and earn from
    generated dataèreconsider value
    proposition of your product
  • There are no free online products, you pay
    with your data
  • Risk: if it is for free, it is not worth anything,
    data privacy?
  • If it is free online, you are the product (data)
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12
Q

What is the price model - Freemium?

A
  • Combination between for “free“ and
    „premium“
  • Users who are just interested in a basic
    product or service receive it for free, if a
    service with higher quality is preferred, the
    user can opt for a subscription fee
  • Target more consumer segments, generate
    cash-flow that finances the other segment
  • attract new customers, no costly advertising
    campaigns are necessary
  • Also not paying users generate data
    (understand the customer better and
    improve product, monetarize data)

Example: Spotify

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13
Q

What is the price model - Subscription?

A
  • Includes yearly or monthly
    payment, not a completely new
    form of pricing
  • Safety of capacity consumption
    and/or product use, offers price
    security
  • efficient for building customer
    loyalty and especially interesting
    for heavy users
  • entrance hurdle

Examples: Netflix, Disney+, HBO, HelloFresh

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14
Q

What is the price model - Dynamic pricing?

A
  • firms charge varying prices for the same product
    where the difference is based on customer, location
    or product, these firms are said to practice the
    strategy of dynamic pricing
  • prices can vary due to specific factors is not openly
    communicated to consumers
  • Not primarily for new customer acquisition
  • Typical examples: dynamic prices over time (e.g.,
    airlines, hotels, car rentals, gas station), companies try
    to improve their capacity utilization
  • More extreme example: personalized pricing, based
    on individual browsing behavior,use the willingness
    to pay of the consumer
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15
Q

What does “Place” mean in marketing?

A

Marketing channels:
Set of interdependent organizations participating
in the process of making a product or service
available for use or consumption

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16
Q

What is the omnichannel distribution policy?

A

Multi-channel management=
The design, development,
coordination, and evaluation of
channels to enhance customer
value through effecive customer
acquisition, retention, and
development (Verhoef et al. 2015).

Omni-channel management=
the synergetic management of the
numerous available channels and
customer touchpoints, in such a
way that the customer experience
across channels and the
performance over channels is
optimized (Verhoef et al. 2015).

17
Q

What does “Promotion” mean in marketing?

A
  • Promotion policy refers to how marketing
    communications are used to inform
    customers and other stakeholders about
    an organisation and its products
  • Includes selection of the target markets
    and positioning and integration of different
    communication tools
18
Q

What is communication policy?

A

You can either use traditional or digital communication

19
Q

What are the different media types?

A

Paid media: Advertising

Owned media: Digital properties

Earned media: Partner networks

20
Q

What is owned media?

A

=different forms of media controlled by a
company, central core of the digital
marketing strategy
Examples:
§ Websites/Webshop
§ Social Media Profiles
§ Corporate Blogs
§ Other media channels (e.g., video
channel,s, podcasts)
§ E-Mail Lists (e.g., clients, potential clients)
§ Newsletter

21
Q

What is paid media?

A

= also known as bought media. A direct
payment occurs to a site owner or an ad
network when they serve an ad, a
sponsorhsip or pay for a click, lead or sale
generated

Examples:
* Social Media Ads
* Paid Search
* Banner Ads

22
Q

What is the STP process?

A

Segmentation
- Identify and profile distinct groups of buyers who differ in their
needs and preferences.

Targeting
- Select one or more market segments to enter.

Positioning
- For each target segment, establish and communicate the
distinctive benefits of the market offering.

”A company discovers different needs and groups in the marketplace, it selects
those targets it can satisfy in a competitive way, and then positions its offering so
the target group recognises the company´s distinctive offering and image”

23
Q

What is persona?

A
  • Semi-fictional representations of your
    ideal customers based on data and
    research. They help a company to focus
    on value propositions, guide product
    development and align all work across
    your organization
  • Focus on a specific customer segment,
    identifying key aspects of that segment’s
    typical customer’s needs and
    experiences (Lemon and Verhoef 2016)

*User personas are often used in UX
design teams

24
Q

What is PIU data and what are the 2 types?

A

Not only your online behavior can inform companies,
also sensors embedded in products (e.g. connected IoT
products, APPs) produce data in real-time

  1. Product view: How well is the product performing?
    Important for improving the product
  2. Consumer view: How is the user experiencing the
    product?
25
Q

What is ecosystem persona?

A

§ Connected world presents the opportunity of a
paradigm shift in customer relationships

§ Products as platforms: Most important touchpoint is
the product itself (or the point of service
consumption)

§ Understanding how the consumer is using the
product, helps companies to design a more relvant
product

§ Customer Relationship Management will improve if
the companys understand how the people really
use the products (experience)

§ Need to move towards the ultrapersonal persona
„Persona for One“

26
Q

DEFINITION: WHAT IS CUSTOMER
EXPERIENCE?

A

“Customer experience is a
multidimensional construct
focusing on a customer’s
cognitive, emotional, behavioral,
sensorial, and social responses to
a firm’s offerings during the
customer’s entire purchase
journey.”

27
Q

WHY FOCUS ON COSTUMER EXPERIENCE IN
DIGITAL MARKETING?

A
  • Customers now interact with firms through myriad touch points in multiple channels and media, resulting in more complex customer journeys.
  • Omnichannel-management because customers interact through myriad
    touchpoints
  • More social: Customer-to-customer interactions through social media ècustomer
    experiences are more social in nature, and peer customers are influencing
    experiences as well
  • Integrate Business Functions: Explosion in potential customer touch points and the
    reduced control of the experience require firms to integrate multiple business
    functions, including information technology (IT), service operations, logistics,
    marketing, human resources, and external partners, in creating and delivering
    positive customer experiences
28
Q

What is customer journey?

A

Customer Journey = the process a customer goes through, across all stages and touch points, that makes up the customer experience

Source: Lemon & Verhoef 2016

29
Q

What are the customer journey touchpoints?

A

Brand owned = customer interactions that are designed and managed by the firm and under the firm‘s control

Partner owned = customer interactions during the experience that are jointly designed, managed , or controlled by the firm and one or more of its partners

Customer owned = customer actions that are part of the overall customer experience but that the firm and ist partners cannot control

Social/external = customer interactions during the experience that are influenced by social and external touchpoints

30
Q

What is customer experience management (CXM) ?

A

Customer Experience Management (CXM): is the
cultural mindsets toward customer experiences,
strategic directions for designing customer
experiences, and firm capabilities for continually
renewing customer experiences, with the goals of
achieving and sustaining long-term customer
loyalty”(Homburg et al. 2015)
CXM:

  • Customer Journey and Touch Point Design
  • Partner and Network Management
  • Internal Firm Perspective
31
Q

What are 3 important trends in marketing?

A
  1. Decentralized marketing
  2. Metamodern customer experience
  3. Marketing automation
32
Q

ETHICAL IMPLICATIONS AND ALGORITHMIC
BIASES

A
  1. The lack of diversity in programming communities may be
    reflected in how algorithms are written and deployed
  2. Algorithms may be trained with data sets that themselves
    reflect existing biases
  3. Algorithms that involve real-time data processing might pick
    up on biased individual actions
33
Q

What is dezentralized marketing?

A
  • Driven by Web 3.0 technologies such as
    blockchain
  • More democratized brands will center
    on sustainability and innovative digital
    products
  • Feedback of community (= customers)
    gets more important
  • Firms are forced to rethink how, when
    and why they engage with customers,
    because Web 3.0 technologies offer a
    wide array of information sharing
    options
  • More brand transparency
  • More data privacy
  • Exciting digital offering (NFT)
34
Q

What is metamodern customer experience?

A
  • Augmented (AR), virtual (VR), and extended (XR)
    combined with recent innovations in the metaverse,
    provide grounds for metamodern customer
    experiences, or hyperrealistic immersive brand
    narratives that account for customer diversity
  • Bridging the gap between physical and digital
  • Designing customer experiences across different
    realities

Digital innovation & business transformation (11 decks)

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