Chapter_01 Flashcards
What is digital marketing?
Achieving marketing objectives through applying digital technologies
Customer-centric digital marketing involves:
- Applying digital technologies which form online channels… (Web, e-mail, databases, mobile, iPTV)
- to Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process
and customer lifecycle) - through Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability
How do digital technologies support marketing?
- Identifying – the Internet can be used for marketing research to find out customersʼ needs and wants
- Anticipating – the Internet provides an additional channel by which customers can access information and make purchases
- Satisfying – a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched?
What are the Applications of digital marketing?
- advertising medium
- direct-response medium
- platform for sales transactions
- lead-generation method
- distribution channel
- customer service mechanism
- relationship-building medium
Give a summary and examples of transaction alternatives between businesses, consumers and governmental organisations
What are the challenges of managing a digital marketing strategy?
- Unclear responsibilities for digital
- Setting objectives
- Lack of budget
- Budget wasted through experiments/duplication
- Developing new propositions and campaigns to compete
- Lack of measurement u i.e. No plan!
Why is a digital strategy needed?
- To set clear goals for digital channels
- To align with business strategy (avoid ad-hoc
- approaches)
- Create a specific online value proposition (OVP) u Specify communications tools to drive visitors
- Integrate digital and traditional channels
- Manage customer lifecycle (e.g. through email marketing)
What does a generic digital marketing strategy development process look like?
What do the communication models for traditional media and new media look like?
traditional media:
new media:
(unique messages and more information exchange between customers)
(same message to every customer)
What are two fundamental digital marketing concepts?
Customer engagement:
- Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand” cScape
- the level of involvement, interaction, intimacy, and in;uence an individual has with a brand over time” Forrester
Permission marketing:
- A value exchange in return for communications and profiling, e.g. Email opt-in, Like of brand on Facebook
What does The Internet marketing environment look like?
What are the issues for digital marketers in the micro-environment?
Evaluating demand levels
Level of Internet access
Includes type of access – broadband and mobile
Consumers influenced by using online channel
Includes understanding type of sites which have influence
Transact online
Includes different types of transactions, not just sales, e.g. support, forum comments, etc.
What are the different Information / experience seeking consumer behavior models?
Directed information-seekers. These users will be looking for product, market or leisure information such as details of their
football clubʼs fixtures. They are not typically planning to buy online.
Undirected information-seekers. These are the users, usually referred to as ʻsurfersʼ, who like to browse and change sites by following hyperlinks. Members of this group tend to be novice users (but not exclusively so) and they may be more likely to click on banner advertisements.
Directed buyers. These buyers are online to purchase specific products online. For such users, brokers or cybermediaries that compare product features and prices will be important locations to visit.
Bargain hunters. These users (sometimes known as ʻcompersʼ) want to find the offers available from sales promotions such as free samples or competitions. For example, the MyOffers site (www.myoffers.co.uk) is used by many brands to generate awareness and interest from consumers.
Entertainment seekers. These are users looking to interact with the Web for enjoyment through entering contests such as quizzes, puzzles or interactive multi-player games.
Hierarchy of response buying process models
In what categories can competitors be benchmarked?
What are the different types of portals and their characteristics?
Disintermediation of a consumer distribution channel
What are the five forces of Porter?
Competitive Rivalry. This looks at the number and strength of your competitors. How many rivals do you have? Who are they, and how does the quality of their products and services compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts and high-impact marketing campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go elsewhere if they feel that they’re not getting a good deal from you.
On the other hand, where competitive rivalry is minimal, and no one else is doing what you do, then you’ll likely have tremendous strength and healthy profits.
Supplier Power. This is determined by how easy it is for your suppliers to increase their prices. How many potential suppliers do you have? How unique is the product or service that they provide, and how expensive would it be to switch from one supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper alternative. But the fewer suppliers there are, and the more you need their help, the stronger their position and their ability to charge you more. That can impact your profit.
Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down. How many buyers are there, and how big are their orders? How much would it cost them to switch from your products and services to those of a rival? Are your buyers strong enough to dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your power increases if you have many customers.
Threat of Substitution. This refers to the likelihood of your customers finding a different way of doing what you do. For example, if you supply a unique software product that automates an important process, people may substitute it by doing the process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken your position and threaten your profitability.
Threat of New Entry. Your position can be affected by people’s ability to enter your market. So, think about how easily this could be done. How easy is it to get a foothold in your industry or market? How much would it cost, and how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete effectively, or if you have little protection for your key technologies, then rivals can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.
What impact does the Internet have on the five competitive forces
What are some Publisher revenue models?
- Revenue from subscription access to content.
- Revenue from Pay Per View access to documents.
- Revenue from CPM display advertising on site (e.g. banners ads, skyscrapers or rich media).
- CPM stands for ʻcost per thousandʼ where M denotes ʻMilleʼ. u Revenue from CPC advertising on site (pay per click text ads)
- CPC stands for ʻCost Per Clickʼ. Advertisers are charged not simply for the number of times their ads are displayed, but according to the number of times they are clicked.
- Revenue from Sponsorship of site sections or content types (typically fixed fee for a period) –
- Affiliate revenue (typically CPA, but could be CPC)
- Affiliate revenue is commission based, for example if you display links to Amazon books on your site, you can receive around 5% of the cover price as a fee from Amazon.
Why should one review the macro-environment
The main reason for keeping track of changes in the macro-environment is to be aware of how changes in social behaviour, new laws, technological innovation can create opportunities or threats. Organisations that monitor and respond effectively to their macro-environment can create differentiation and competitive advantages which enable the business to survive and prosper.
What are some Key macro-environment factors?
- Political forces
- Economic forces
- Social forces
- Technological forces
- Legal forces
- Environmental forces
What does the Information exchange between a web browser and a web server look like?
Explain the relationship between access to intranets, extranets and the Internet text editor
What is Public-key or asymmetric encryption?
Public key encryption, or public key cryptography, is a method of encrypting data with two different keys and making one of the keys, the public key, available for anyone to use. The other key is known as the private key. Data encrypted with the public key can only be decrypted with the private key, and data encrypted with the private key can only be decrypted with the public key. Public key encryption is also known as asymmetric encryption.
What are the different stages of the Gartner hype cycle?
Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications
- *Innovation Trigger**: A potential technology breakthrough kicks things off. Early proof-of-concept stories and media interest trigger significant publicity. Often no usable products exist and commercial viability is unproven.
- *Peak of Inflated Expectations**: Early publicity produces a number of success stories — often accompanied by scores of failures. Some companies take action; many do not.
- *Trough of Disillusionment**: Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters.
- *Slope of Enlightenment**: More instances of how the technology can benefit the enterprise start to crystallize and become more widely understood. Second- and third-generation products appear from technology providers. More enterprises fund pilots; conservative companies remain cautious.
- *Plateau of Productivity**: Mainstream adoption starts to take off. Criteria for assessing provider viability are more clearly defined. The technology’s broad market applicability and relevance are clearly paying off.
What are the four ares of ethical issues according to Mason?
- Privacy – what information is held about the individual ?
- Accuracy– is it correct?
- Property– who owns it and how can ownership be transferred?
- be transferred?
- Accessibility – who is allowed to access this information, and under which conditions?
https://www.gdrc.org/info-design/4-ethics.html
What are the Significant laws which control digital marketing?
What are the different Types of information collected online and the related technologies?
What are the Internal and external influences on digital marketing strategy?
Summary of typical focus for main types of e-commerce-related strategic initiatives
What does the dynamic e-business strategy model look like?
Give a summary of the approaches used to support emergent strategy
What are some typical opportunities and threats presented by digital media?
Name some different organisational growth strategies using the internet
What are the Stages in target marketing strategy development?
What does the Customer lifecycle segmentation look like?
What are the 3 positionings for online services?
Name all elements of marketing mix
What are the traditional and online measures of brand equity?
What are some Methods of managing inbound contacts?
What is the difference between raltional and transactional marketing?
Relationship marketing promotes customer loyalty and improving ways of doing business for long-term customer retention. … Transaction-oriented efforts focus on increasing the number of sales, whereas relationship-oriented actions focus on the customers
What are the four classic marketing activities of customer relationship management?
What are some customer touch points for collecting and updating customer e-mail contact and other profile information?
What are the different Options for mass customisation and personalisation using the Internet?
What are the Factors affecting customer satisfaction and loyalty?
What are some Alternative methods for reviewing customer feedback?
How can customers be categorized according to value?
