Online strategies

Question 1

How did digital technologies change marketing?

Answer 1

Digital technologies have a major impact on price, product, place, and promotion.

Question 2

What is the difference between multi and Omni-channeling?

Answer 2

Multi-channel: the design, deployment, coordination, and evaluation of channels to enhance customer value through effective customer acquisition, retention, and development.
Omni-channel: the synergetic management of the numerous available channels and customer touch points, in such a way that the customer experience across channels and the performance over channels is optimized.

So, omni-channeling integrates cross-function of all channels whereas multi-channeling looks at every channel separately.

Question 3

What is the impact of digital technologies on the promotion mix: Product?

Answer 3

Products/Services themselves are becoming digital: Spotify, Netflix, E-books, gaming, etc.
Unbundled content (tends to lower revenues, but helps consumers):
• But no fixed costs helps companies
• Allows for new strategies, e.g. Freemium
Lower perceived value and lower psychological ownership.
Mass customization: Nikes

Question 4

What is the impact of digital technologies on the promotion mix: Price?

Answer 4

 Dynamic Pricing: flexible prices for products or services based on current marketing demands.: Algorithms take into account competitor pricing, supply, demand, etc. Common in hotels, airlines, electricity, entertainment. Coming to retail.
 Price is generally the same online/offline
 Consumers are more price-sensitive online (Degeratu et al. 2000).

Question 5

What is the impact of digital technologies on the promotion mix: Place?

Answer 5

You generally want both online and offline purchasing options: Cross-channel effects of marketing actions.
Adding a brick-and-mortar store increases revenues 20%:
• Increase in purchase frequency
• Returns and exchanges increase

Question 6

What is the impact of digital technologies on the promotion mix: Promotion?

Answer 6

STP Model:
 Segmenting: Identifying meaningfully different groups of people
 Targeting: Selecting which segment to serve or influence
 Positioning: Talking about your offering in a way that resonates with your target segment

Question 7

What is behavioral targeting?

Answer 7

 AKA micro-targeting, micro-niche targeting
 Segment people based on their individual past behavior and preferences. Even their locations and personality.
 Algorithms to find the best individual people to target based on demographics, personality, friends, location and online behavior: clicks, searches, amazon wishlist, etc.
 Customized positioning
Again, based on any available information

Question 8

What is personality targeting?

Answer 8

 The targeting of people based on their underlying psychological profiles
 Data on behavior → personality profiles → STP
 New. Controversial.

Question 9

What are the 7 steps for using influencers?

Answer 9

1. Monitor conversation: put a social listing in place.
2. Identity influencers: Find influential individuals.
3. Identify the factors shared by influencers.
4. Locate Relevant Influencers: Interests need to be relevant to the campaign. Calculate stickiness index, how much they talk about relevant topics.
5. Recruit best influencers
6. Incentivize influencers: To spread WOM about your product. Tangible and intangible.
7. Reap Rewards: Make sure to measure the WOM, to see how it correlates with brand growth.