Unit 1: Digital Fundamentals Flashcards
How has the evolution of digital marketing been linked to the development of digital technology?
The evolution of digital marketing is closely tied to the advancement of digital technology. With the creation of the internet in the early 1990s, followed by the emergence of web browsers like Netscape, the internet became more accessible to people. As technology progressed, email, mobile phones, and internet access technologies emerged, making online communication and access more widespread. Search engines, particularly Google, revolutionized how users interacted with the internet, providing easy access to vast amounts of information.
What are the two key elements that have driven digital marketing the most?
The two key elements driving digital marketing are “Big Data” and the creation of smartphones. “Big Data” refers to vast amounts of information about individuals and groups, allowing marketers to understand customer behavior and preferences on an individual level. Smartphones, especially with the introduction of Apple’s iPhone in 2007, have become central to everyday life, providing multiple functionalities, including shopping, organizing, and communication. People now spend over 300 minutes a day engaging with digital technology.
How did digital marketing platforms evolve from their primitive beginnings to more interactive and social media-driven environments?
Digital marketing platforms initially were basic and allowed limited interaction between browsers and marketers. Banner ads were one of the early forms of interaction. The introduction of search engines provided opportunities for companies to promote their products and encourage customer visits. The growth of social media in the early 21st century, like Facebook and Twitter, changed the landscape of digital marketing, enabling new ways of interacting with customers. Technologies like cookies helped track browser history and paved the way for “Big Data” analytics.
How has the growth of online transactions been driven by e-commerce, and what are some examples of e-commerce models?
The growth of online transactions is primarily driven by e-commerce or “electronic commerce,” which involves buying and selling products and services over the internet. Initially, dedicated sites like Amazon and eBay dominated e-commerce, but now there are numerous such sites. Traditional retailers have also adopted e-commerce models, such as “Click and Collect” or “Click and Brick,” where customers can buy products online and collect them from physical stores. Some producers have moved to direct marketing, selling products through their own websites, bypassing traditional retailers.
What are some statistics related to the growth of e-commerce in different regions?
E-commerce activities in the Asia-Pacific region represent over 70% of global e-commerce, with China accounting for a significant portion of that revenue. China’s e-commerce sales are estimated to reach $1,086 billion by 2023. The US is also a major player, with an estimated $735 billion in e-commerce sales by 2023. The growth of e-commerce has transformed industries like travel, insurance, airlines, and banking, with many of them predominantly existing online, without a strong high-street presence.
How have smart phones contributed to the growth of e-commerce?
Smartphones have significantly increased the use of mobile phones for e-commerce due to their increased technology and functionality, along with faster internet connection speeds like 4G and 5G. Dedicated apps for e-commerce platforms provide a seamless shopping experience for users on their smartphones.
How has big data impacted e-commerce growth, especially in the Business to Consumer (B2C) model?
Big data plays a crucial role in e-commerce growth, especially in the B2C model. E-commerce businesses track consumer preferences and behavior through statistical observations. This data is then used to deduce likely future behavior and is integrated into market strategies to provide personalized and targeted shopping experiences for consumers.
What are the factors contributing to an improved user experience in e-commerce?
The user experience in e-commerce has improved due to various factors. Firstly, the development of greater content and the availability of fast download and connectivity options like ADSL-Fibre have enhanced website performance and user satisfaction. Websites are tailored to fit the specific needs of consumers, offering a more user-friendly and personalized shopping experience.
How do low costs benefit both retailers and consumers in e-commerce?
E-commerce sites are advantageous for retailers because they are low-cost with minimal fixed expenses. This makes it easier for businesses to set up online stores and reach a wider audience. For consumers, e-commerce often offers lower prices compared to traditional retail stores, and the option for free delivery has become the norm, making online shopping more appealing.
How has COVID-19 impacted the growth of e-commerce?
The COVID-19 pandemic has created a crisis for many physical retailers. However, it has accelerated the migration of customers to online shopping platforms. As people turned to e-commerce for their purchases during lockdowns and social distancing measures, the shift to online shopping is likely to remain a part of people’s shopping habits even after the pandemic subsides.
How has the growth of social media contributed to the expansion of e-commerce?
Social media has played a significant role in the expansion of e-commerce. As social media platforms have developed over the last few decades, they have become powerful channels for marketing and promoting products. Businesses use social media to engage with their target audience, build brand awareness, and drive traffic to their e-commerce websites. Consumers are also influenced by social media content and recommendations, which can lead to increased online purchases.
What are the different types of websites that marketers use for various purposes?
E-commerce site: These websites directly sell products and services to customers, allowing marketers to improve market position, increase the customer base, enhance brand popularity, and boost profits.
Landing Page: A landing page is where users are directed via a link on another website, like a banner ad. Its purpose is to retain customer interest and encourage further exploration of the website.
Corporate Website: Corporate sites provide comprehensive information about the company, its activities, products, and services. Their goals include finding new customers and partners, building the corporate image, attracting new employees, and establishing efficient communication with customers and partners.
Crowdsourcing and Crowdfunding Systems: These activities are associated with start-ups and small businesses seeking growth. Crowdfunding focuses on procuring funds for projects or ventures, while crowdsourcing leverages community collaboration to develop ideas, skills, or services.
Online Auctions and Third-Party Websites: Online auctions like eBay allow buyers to bid on products, while third-party websites like Amazon and Etsy offer various products from different suppliers, similar to online department stores or specialized marketplaces for craft products from individual artisans.
How has digital technology changed customer behavior, and what are some specific examples of these changes?
Customers’ Online Power: Online review platforms like Yelp have empowered customers to rely on the opinions of strangers when making purchasing decisions. Positive reviews can significantly impact a business’s reputation and trustworthiness, leading to increased sales and customer loyalty.
Second Screening and Digital Behavioral Changes: Second screening, where consumers use their smartphones or tablets while watching TV, has become prevalent. This behavior has implications for TV advertising effectiveness, as viewers’ attention is divided between different screens and content.
Online Customer Journey: The online customer journey describes how consumers move through different stages, from becoming aware of a need to making a purchase and experiencing post-purchase interactions. Companies must understand and optimize this journey to ensure customer satisfaction and loyalty.
Online Communities: Online communities have emerged as spaces where people interact, share ideas, and work towards common goals. Marketers now use social media platforms to create communities around products or causes, fostering word-of-mouth marketing and customer engagement.
Overall, digital technology has granted customers greater access to information, enhanced their ability to research products and services, and provided platforms to express their opinions and connect with like-minded individuals. These changes have forced businesses to adapt their marketing strategies and engage with customers in new ways.
Overall, digital technology has granted customers greater access to information, enhanced their ability to research products and services, and provided platforms to express their opinions and connect with like-minded individuals. These changes have forced businesses to adapt their marketing strategies and engage with customers in new ways.
What is an online community?
An online community is a group of people who interact, share ideas, and work towards common goals on the internet using platforms like social networks, forums, and blogs.
