Social, global and local marketing & Pricing information

Question 1

What is an Online Social Network?

Answer 1

• Group of people
• Shared social interaction
• Common ties
• Sharing area of period of time

Question 2

What five types Business models of Social Networks are there?

Answer 2

• General communities
• Practice networks
• Interest based social networks
• Affinity communities
• Sponsored communities

Question 3

What are general communities?

Answer 3

• Offer opportunities to interact with general audience organized into general topics (facebook)

Question 4

What are practice networks?

Answer 4

• Offer focused discussion groups, help, and knowledge related to area of shared practice (linkedIn)

Question 5

What are interest-based social networks?

Answer 5

Offer focused discussion groups based on shared interest in some specific subject (debating)

Question 6

What are affinity communities?

Answer 6

Offer focused discussion and interaction with other people who share same affinity (self or group identification) (health boards)

Question 7

What are sponsored communities?

Answer 7

Created by government, nonprofit, or for-profit organizations for purpose of pursuing organizational goals (Cisco, Nike)

Question 8

What are the goals of social marketing?

Answer 8

• Encourage consumers to become fans and engage and enter conversations
• Strengthen brand by increasing share of online conversation

Question 9

What is the downside of Social Marketing?

Answer 9

• Loss of control
• Where ads appear in terms of other content
• What people say
• Posts
• Comments
• Inaccurate or embarrassing material

Question 10

What is said about cost and information?

Answer 10

• Information is costly to produce.
• Cheap to reproduce
• Has low marginal costs

Question 11

What is “Sunk cost”?

Answer 11

The bulk of fixed costs than cannot be recovered If the product is discontinued.

Question 12

What is economies of scale?

Answer 12

Cost per unit decreasing with increasing scale.

Question 13

How can you use differentiation to put a price on information?

Answer 13

• 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

Question 14

How can you protect ownership?

Answer 14

• By patents, copyrights, trademarks.

Question 15

What does Herbert Simon say about attention?

Answer 15

• “Wealth of information creates poverty of awareness.”

There is a problem of information overload.

Question 16

How can companies use cooperation in the information economy?

Answer 16

By creating opportunities for each other’s products, they keep competitors away (intel & Microsoft)

Question 17

What are Network effects?

Answer 17

When a product’s value is determined by how many others that are using the system, the system is said to have network effects

Question 18

Why is it important to reach critical mass?

Answer 18

When critical mass is reached in any information technology, the market begins to grow by itself

Question 19

How can you reach critical mass?

Answer 19

One way to reach critical mass is by entering into close cooperation with customers, partners or competitors

Question 20

Why is Timing important in the information industry?

Answer 20

• 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

Question 21

What three types of dynamic pricing are mentioned?

Answer 21

• 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