week 7

Question 1

multi lateral communication of digital marketing allows

Answer 1

Multi-way communication:
o Allows for consumer feedback on brand and products
o Generates stronger relationships between the brand and consumer
o Allows for one on one discussion to meet consumer needs
o Consumers can discuss brands with others (both good and bad)

Question 2

key differences with traditional marketing

Answer 2

1. Reach
2. Accessibility
3. Usability
4. Immediacy
5. Permanence

Question 3

differences between traditional - in depth

Answer 3

Reach – both have the ability for reaching global audiences but digital media can do so for significantly less cost but this also limits control and centralization (e.g. viral YouTube videos)

Accessibility – Depends on the country, but in general, digital and social media options are generally available to everyone at little to no costs or restrictions

Usability – Tv, radio, OOH, media typically require specialized skills but digital and
social media options can be operated relatively more easily

Immediacy – Relatively longer time lags for traditional media, whereas digital marketing can happen immediately

Performance – Traditional media is hard / impossible to alter, whereas online edits are possible. Commercials are seen at a single time whereas ads can be shared many times.

Question 4

advantages of digital marekting

Answer 4

o Individualized – e.g. specific search results and personalized newsfeeds “filter bubble”
o Interactivity – interact on a one to one level
o Targeting
o Accessibility – e.g. website information > yellow pages
o Cost effectiveness
o Sales conversion – track the effectiveness of ads and amount of traffic and sales they generate
o Behavioral tracking – ‘recommended for you’

Question 5

disadvantages of digital marketing

Answer 5

o Lack of control /Dealing with negative comments
o Increased risk or theft and fraud
o Clutter – both for consumers and firms
o Privacy and permanence concerns – both for consumers and firms

Question 6

define social media

Answer 6

Social media – Digital platforms (vehicles) that facilitate people engaging with the brand, brand communities, sharing information, images and videos

o People’s motivations to participate in social media can be classified as being either hedonistic e.g. pleasure, social, connection/status) or functional (e.g. seeking product information)

Question 7

reluctance of social media

Answer 7

Cost and time – Companies fear that social media may require too many creative staff and too much ongoing time

Knowledge risk – Senior managers are less familiar with new media, so they avoid it

Incentive structure – Advertising firms with traditional media expertise have strong incentives to maintain the current fee structure

Measurement – Gross rating points are click through rates are more comfortable measures than pages views or engagement

Loss of control – Marketers are accustomed to taking a top-down approach to brand positioning and fear losing control of their brands

Question 8

benefits of social media

Answer 8

o Increased reach and targeting via demographics, web visits, and posted
o preferences
o Consumer engagement with consumer-generated content
o Two-way dialogue: consumer feedback; new brand and product ideas; and
o pricing, location, and promotion modifications
o Integration and ability to drive traffic: an ad that is placed on a social media
o site (e.g. YouTube), if well done, can turn viral and drive traffic to other sites
o Improved metrics and research, flexibility, & cost effectiveness

o Learning about customers needs and opinions
o Building dialogue and engagement
o Talking with customers and enhancing advertising
o Achieving brand equity and relationships
o Utilizing viral marketing
o Increasing exposure

Question 9

why do we share information - depth

Answer 9

o We love to share information
o Emotions – in general we share more positive than negative information, however we also share highly arousing negative information – anger and anxiety
o Practical value – We share practically useful information (e.g. coupon codes) self enhancement, appear to knowledgeable, altruistic and reciprocity
o Priming and accessibility – we talk about things there are accessible in our minds
o Social currency – Things we want to share are things that make us look good – we share the things that will make us look good and don’t want to share things that make us look bad
o Make it public
o Tell a story

Typically we share positive information
o We have self presentation desires and we don’t want to be perceived as a downer
o We want to make others feel good
o We want others to learn about positive things (e.g. good song)

o Make people feel like insiders (scarcity
o Use game mechanics (social comparison)
o Find inner remarkability (break through the clutter

Question 10

why we share 6 reasons

Answer 10

Emotions
Practical Value
Priming and Accessibility
Social Currency
Make it Public
Tell a story

emotions - Emotions In general, we share more positive than negative information.However, we also share highly arousing negative information -anger and anxiety Can help increase social connection.

practical value - We share practically useful information (e.g. coupon codes)
•Altruistic / reciprocity
•To appear knowledgeable
•Self-enhancement (reviews)

priming + accessibility:
We talk about / do things that are accessible in our mind - e.g. “its friday” on played on fridays more than other day

social currency (i.e using instagram 
 Things we want to share are things that make us look good (self enhancement)
•We share the things that will make us look good and don’t want to share things that make us look ba