©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Chapter 9 Digital Marketing and Social Networking

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Describe the growths and benefits of digital marketing  Learn how types of consumer-generated marketing and digital media can be used as effective marketing tools  Understand the changing digital media behaviors of consumers Learning Objectives

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Understand and identify how digital media can be used in an e-marketing strategy  Identify legal and ethical considerations in digital media and electronic marketing Learning Objectives

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Digital media: Electronic media that function using digital codes  Digital marketing: Develops communication and exchanges with customers through all digital media  Electronic marketing: Using digital media and digital marketing to:  Distribute, promote, and price products  Discover the desires of customers  Help marketers to share information to the customers Growth and Benefits of Digital Marketing

Discussion Point Digital Marketing Marketers can use a number of digital media sites, including YouTube, Facebook, Pinterest, and Flickr, to promote products and create company awareness.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Marketers use technology to form relationships, coordinate, and communicate with stakeholders  Small businesses - Use digital media to reach new markets and access inexpensive communication channels  Large businesses - Use digital media to supplement their brick-and-mortar stores Growth and Benefits of Digital Marketing

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Characteristics of Online Media CharacteristicDefinition Addressability Marketers’ ability to identify customers before they make a purchase Interactivity Customers’ ability to express their needs and wants directly to the firm In response to the firm’s marketing communications Accessibility Marketers’ ability to obtain digital information Connectivity Consumers’ ability to be connected with marketers along with other consumers Control Customer’s ability to regulate the information they view and the rate and exposure to that information

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Trends that have caused consumer-generated information to gain importance  Use of blogs or digital media by consumers to publish their thoughts, opinions, reviews, and product discussions  Consumers’ tendencies to trust other consumers over corporations Consumer-Generated Marketing

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Types of Digital Media Social networking sitesBlogs and wikisMedia-sharing sitesVirtual reality sitesMobile devicesApplications and widgets

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Web-based meeting place that allows users to create a profile and connect with other users  To get acquainted, keep in touch, or build a work related network  Marketers use them to:  Promote products  Handle questions and complaints  Assist customers in buying decisions Social Network

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Figure Do You Use Social Networking Sites?

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Social Network Used by marketers to: Market products and interact with consumers Take advantage of free publicity Engage in e-commerce Engage in relationship marketing, making consumers feel more connected to their products Facebook Hybrid of a social networking site and a micro- blogging site Used to enhance customer service, create publicity about products, and gain a competitive advantage Twitter

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Blogs and Wikis Blog Web-based journal where writers can editorialize and interact with other Internet users Gives consumers control and can affect the image of a company Used by corporations to: Answer consumer concerns Defend their corporate reputations Wiki Software that creates an interface enabling users to add or edit the content of some types of websites Used as an internal tool for teams on projects requiring lots of documentation Provides companies with a better idea of how consumers feel about the company brand

Discussion Point - The World’s Largest Wiki Wikipedia is an online encyclopedia that allows users to add or edit information in more than 250 languages.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Allows businesses to share their corporate messages in more visual ways  Limited in scope in how companies interact with consumers  More promotional than reactive  Popularity of these sites provides wide reach Media Sharing Sites

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Media Sharing Sites Allow users to upload and share their photos with the world Companies can market themselves by displaying snapshots of their: Corporate events Staff and products Photo-sharing sites Allow users to upload videos Companies can upload ads and informational videos about their products Video sharing sites Audio or video files that can be downloaded from the Internet with a subscription Automatically delivers new content to listening devices or personal computers Companies can create brand awareness, promote their products, and encourage customer loyalty Podcasts

Discussion Point - Photo-Sharing Flickr is a very popular site that allows photo and video sharing.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  User-created, three-dimensional worlds that have their own:  Economies and currencies  Lands and residents  Offer opportunities for marketers to connect with consumers in unique ways  Used by some firms for recruiting purposes Virtual Sites

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Allow customers to leave their desktops and access digital networks from anywhere  Common mobile marketing tools  SMS messages and multimedia messages  Mobile advertisements  Mobile websites  Location-based networks  Mobile applications: Software programs that run on mobile devices and give users access to certain content Mobile Devices

Discussion Point Companies have begun to embed advertising through the use of digital games played on smartphones. These ads are targeting children 9 years old and younger. Is it acceptable to market to children through mobile games?

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Applications and Widgets Applications Offer convenience and cost savings to consumers Companies use mobile marketing to offer additional incentives to consumers Allow shoppers to compare prices or download electronic discounts Widgets Small bits of software on a website, desktop, or mobile device Enables users to interface with the application and operating system Used to: Personalize webpages Alert users to company information Spread product awareness

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Changing Digital Media Behaviors of Consumers  Consumers are better abled to regulate the information that they view  Result of digital media  Marketers:  Have limited control over the content to which users are exposed  Adopt a different approach than traditional marketing  Effectively target their messages to the audience  Easily track the success of their online marketing campaign  Enjoy free publicity by way of positive customer feedback

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Table Social Technographics

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Businesses use digital marketing to gain or maintain market share  Product considerations  Opportunity to:  Add a service dimension to traditional products  Create products accessible only on the Internet  Ability to access product information for any product impacts buyer decision making  Essential for continually upgrading products to meet consumer needs E-Marketing Strategy

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Online advertising campaigns and contests can be used to help develop better products  Distribution considerations  Makes products available at the right time, place, and in right quantities  Helps businesses increase efficiency  Push-pull dynamic  Push products through the marketing channel to consumers  Enable customers to pull products through the marketing channel E-Marketing Strategy

Discussion Point - Distribution The growth in popularity of e-readers had lead to a greater direct distribution of magazines, newspapers and books Do you own an e-reader? If so, do you access books, magazines or newspapers?

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Promotion considerations  Allows marketers to approach promotion in new, creative ways  Increases brand awareness and markets to consumers  Traditional promotional events can be enhanced or replaced by digital media  Pricing considerations  Consumers gain access to more information about costs and prices  Demand for low-priced products increases E-Marketing Strategy

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Enables customers to compare prices of products  Sellers are pressured to:  Offer buying incentives to generate demand  Differentiate products so that customers focus on attributes and benefits other than price E-Marketing Strategy

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages Ethical and Legal Issues PrivacyOnline fraud Intellectual property

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Misuse of personal information collected from website visitors  May violate user's privacy  Hackers can steal personal information  Scraping - Collecting personal information from social networking sites and other forums  Counteractive measures  Developing regulations to limit the amount of consumer information that can be gathered online  Web advertisers are attempting self-regulation Privacy

Discussion Point - Online Security Both firms and government agencies such as the Federal Trade Commission are working to protect consumer privacy and prevent unauthorized access to consumers’ information.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Any attempt to conduct dishonest activities online  Avenues for fraud  Fraudulent profiles on social networking sites  Mobile payments  Counteractive measures  Some firms monitor social networks for fraudulent accounts  To avoid divulging personal information online Online Fraud

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©wecand/GettyImages  Copyrighted or trademarked ideas and creative materials developed to solve problems, carry out applications, and educate and entertain others  Consumers’ rationalizations for piracy  No money to pay for what they want  Peer influence to engage in piracy and swap digital content  The thrill of getting away with it and the slim risk of consequence  Allows them to show how tech savvy they are Intellectual Property