Chapter 10 (?) Marketing Mix

Question 1

• Why has the rapid penetration of smart phones been a game changer in terms of globalization?

Answer 1

o Has made it extremely easy for people to connect across the world  opened the doors for global commerce on a personal level. Consumers have a mini computer in their hand at all times

Question 2

• Which region of the world contributed most to the growth of smartphones?

Answer 2

o Asia Pacific was a huge driver of the global smartphone market (market has exploded from 2010 onwards)

Question 3

• What is meant by digital vortex?

Answer 3

o Metaphor that means that digitalization is creating a vortex that is pulling more and more industries and technologies into it

Question 4

• Which of these technologies is likely to have the largest business impact on your industry?

Answer 4

o Robotics  large impact on production and manual-labor intensive industries
o Drones  huge impacts for delivery, agriculture, security, …
o Self-Driving cars  deliveries, transport
o 3D Printing  manufacturing industry, prototyping, medical devices industry
o Holograms  knowledge work, entertainment, hospitality, tourism, …

Question 5

• Which companies are refered to as FAANGs?

Answer 5

o Facebook, Amazon, Apple, Netflix, Google

Question 6

• Which companies are BATs?

Answer 6

o Baidu, Alibaba, Tencent

Question 7

• What has made these companies so powerful?

Answer 7

o Giant economies of scale and network effects based on your existing portfolio

Question 8

• What has driven the strong growth of e-commerce and e-payment in China?

Answer 8

o Nobody really knows (Chinese people were more open to new ways of buying and paying). E-commerce was a large driver of e-payment. E-commerce in China works really well because last-mile problem is not such a big problem (high density cities + lower labor costs for delivery). Speculation: Lots of counterfeit cash in circulation  solved with e-payment

Question 9

• Will there be only online shopping the future?

Answer 9

o Most likely not, hybrid formats are starting to emerge (Amazon Go markets, JD unattended convenience store) – online shopping will most likely become the dominant form of commerce
+ Physically going to a store is an entertainment

Question 10

• What distinguishes today’s digital consumer from brick-and-mortar shoppers?

Answer 10

o They prefer to shop online, often using their smartphones. Relatively large differences here between countries and age groups. Increasing engagement with brands and retailers through social media, especially in emerging markets. Strong adoption of mobile payments and focus on internet privacy

Question 11

• How do new interfaces (touch, voice, wearables) impact consumers?

Answer 11

o New interfaces are increasingly replacing cumbersome keyboards. Internet of everything allows consumers to be constantly connected. Smart fridges allow to automatically re-order items when they run out.

Question 12

• How do voice searches impact branding and pricing of FMCGs?

Answer 12

o Provider of voice search will list by preference, listing their own products first, making branding more important
o Voice search increases price from time to time, making us pay for the convenience of ordering through this interface

Question 13

• How is the role of TV changing in the digital economy?

Answer 13

o Video is quickly eating into TV share; millennials watch less and less TV
o TV is still a key method of content discovery

Question 14

• Why does digitalization lead to a shift from ownership to sharing?

Answer 14

o It makes sharing more convenient and easy. Increases flexibility of consumers

Question 15

• What are the key components of digital marketing strategy?

Answer 15

o Website Design
o SEO
o Pay per click (only charged if the user clicks on an ad)
o Banner Ads (going out of fashion, adblocks)
o Social Media Marketing
o Content Marketing

Question 16

• What is the difference between free and paid listings?

Answer 16

o Paid listings are seen at the very top but are classified as sponsored (and you must pay for them)

Question 17

• What is the difference between owned, paid and earned media?

Answer 17

o Owned: You own and control and pay for  absolute control, but harder to scale and lack of trust in corporate communication
o Paid: Brand pays to leverage a channel  sponsorships, paid search  immediate and easily scalable but poor response rates
o Earned: Users share your media  going viral  most credible and cost efficient but you give up all control

Question 18

• What is content marketing?

Answer 18

o Marketing that involves the creation and sharing of media and publisihing content in order to acquire and retain customers (news, video, white papers, e-books, infographics, email newsletters, podcasts, …)
o Hard to find the right tone, if it’s too much advertising, people will not like it, if there is too little, people won’t know that it is yours
o It is time consuming and can backfire
o Binds user attention and can be beneficial for SEO due to inbound links

Question 19

• What is meant by big data?

Answer 19

o The collection and analysis of extremely vast amounts of data mainly through the internet

Question 20

• How does big data impact the way we can target consumers?

Answer 20

o We are trying to analyze a lot of data on consumers in order to segment them into smaller and smaller groups, allowing us to target consumers more effectively  some targeting is working an individual level already (Amazon recommendations, google searches, …)
o Heavily based on knowledge of personal information and consumption patterns