Social, global and local marketing & Pricing information Flashcards
What is an Online Social Network?
- Group of people
- Shared social interaction
- Common ties
- Sharing area of period of time
What five types Business models of Social Networks are there?
- General communities
- Practice networks
- Interest based social networks
- Affinity communities
- Sponsored communities
What are general communities?
- Offer opportunities to interact with general audience organized into general topics (facebook)
What are practice networks?
- Offer focused discussion groups, help, and knowledge related to area of shared practice (linkedIn)
What are interest-based social networks?
Offer focused discussion groups based on shared interest in some specific subject (debating)
What are affinity communities?
Offer focused discussion and interaction with other people who share same affinity (self or group identification) (health boards)
What are sponsored communities?
Created by government, nonprofit, or for-profit organizations for purpose of pursuing organizational goals (Cisco, Nike)
What are the goals of social marketing?
- Encourage consumers to become fans and engage and enter conversations
- Strengthen brand by increasing share of online conversation
What is the downside of Social Marketing?
- Loss of control
- Where ads appear in terms of other content
- What people say
- Posts
- Comments
- Inaccurate or embarrassing material
What is said about cost and information?
- Information is costly to produce.
- Cheap to reproduce
- Has low marginal costs
What is “Sunk cost”?
The bulk of fixed costs than cannot be recovered If the product is discontinued.
What is economies of scale?
Cost per unit decreasing with increasing scale.
How can you use differentiation to put a price on information?
- Through timely release.
E.g. first expensive hardcover book then cheap pocket, first expensive movie ticket then cheap online - Extra value in relation to basic version
How can you protect ownership?
- By patents, copyrights, trademarks.
What does Herbert Simon say about attention?
- “Wealth of information creates poverty of awareness.”
There is a problem of information overload.
How can companies use cooperation in the information economy?
By creating opportunities for each other’s products, they keep competitors away (intel & Microsoft)
What are Network effects?
When a product’s value is determined by how many others that are using the system, the system is said to have network effects
Why is it important to reach critical mass?
When critical mass is reached in any information technology, the market begins to grow by itself
How can you reach critical mass?
One way to reach critical mass is by entering into close cooperation with customers, partners or competitors
Why is Timing important in the information industry?
- Launching prematurely involves the risk of choosing a track that will not be a leading one
- Late launch may mean that customers are already locked-in to other technology and companies
What three types of dynamic pricing are mentioned?
- Auctions
- Yield management
◦ price adjustment to sell surplus capacity (e.g., ad space by programmatics) - Flash marketing
◦ is aimed at a selected customer group with special offers
