Lecture Business (4/e): Chapter 13 - Ferrell, Hirt, Ferrell

Chapter 13 - Digital marketing and social networking. Define digital media and digital marketing and recognize their increasing value in strategic planning, demonstrate the role of digital marketing and social networking in today’s business environment, show how digital media affects the marketing mix,....

Part Marketing: Developing Relationships © 2015 McGraw­Hill Education 13-2   CHAPTER 11 Customer-Driven Marketing CHAPTER 12 Dimensions of Marketing Strategy CHAPTER 13 Digital Marketing and Social Networking 13-3 Learning Objectives LO 13-1 Define digital media and digital marketing and recognize their increasing value in strategic planning LO 13-2 Demonstrate the role of digital marketing and social networking in today’s business environment LO 13-3 Show how digital media affects the marketing mix LO 13-4 Define social networking and illustrate how businesses can use different types of social networking media LO 13-5 media Identify legal and ethical considerations in digital 13-4 Growth and Benefits of Digital Communication 13-5 Growth and Benefits of Digital Communication 13-6 Product & Promotion Considerations Digital media connectivity creates opportunities to add services and benefits to products • • • • Some products only available digitally Promotion is one of the best applications for digital media: • Increasing brand awareness • Connecting with consumers • Businesses can offer more items online than they could in a retail store Internet can make it easier to learn about and anticipate consumer needs • Fierce competition makes quality product and service offerings more important than ever • Taking advantage of social networks or virtual worlds to form relationships and generate positive publicity about products Online promotion allows consumers to read customer-generated content before making purchasing decisions Consumer consumption patterns are changing and marketers must adapt their promotional efforts to meet them 13-7 Social Networking v Two factors sparked the increase in consumer generated information: Increased tendency for consumers to publish their thoughts, opinions, reviews, and product discussion via blogs or digital media Consumers’ tendencies to trust other consumers over corporations o Consumers often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions 13-8 Blogs and Wikis 13-9 Media Sharing 13-10 Common Mobile Marketing Tools 13-11 Using Digital Media to Reach Consumers v v q Customer-generated communications and digital media take some of the professional marketer’s power to control and dispense information and place it in the hands of consumers Marketers can use digital media to get better and more targeted information about the consumer Essential that marketers focus on: ü The changing social behaviors of consumers ü The ways in which they gather and use information ü The way the Internet is enabling them to get involved in the marketing process q As in traditional marketing efforts, marketers need to know their target market 13-12 Using Digital Media to Learn about Consumers q Consumer feedback is an important part of the digital media equation ü 25% of the U.S online population reads consumergenerated ratings and reviews q Digital media forums allow businesses to closely monitor what their customers are saying ü Business can communicate with consumers to address problems or complaints much more easily than through traditional communication channels ü Many companies not yet take full advantage of the digital tools at their disposal 13-13 Legal and Social Issues in Internet Marketing q The extraordinary growth of information technology, the Internet, and social networks has generated many legal and social issues for consumers and businesses ü ü ü ü q Privacy concerns Risk of identity theft Risk of online fraud Need to protect intellectual property U.S Federal Trade Commission (FTC) compiles an annual list of consumer complaints related to the Internet and digital media 13-14 Privacy & Identity Theft q q Laws and regulations have difficulty keeping up with the rapidly-changing Internet Federal Trade Commission considering creating legislation that limits information companies can gather online, possibly: ü An online privacy “Bill of Rights” to protect consumers from having their information tracked without permission o Many web advertisers are attempting self-regulation 13-15 Online Fraud & Intellectual Property Ø Intellectual property can include songs, movies, books, and software Ø Ø Such intellectual property consists of the ideas and creative materials developed to solve problems, carry out applications, and educate and entertain others It is generally protected by patents and copyrights, but these can be difficult to enforce globally Ø Piracy and illegal sharing costs global industries billions annually Ø 90% of illegal software copying is done by businesses .. .1 3- 2   CHAPTER 11 Customer-Driven Marketing CHAPTER 12 Dimensions of Marketing Strategy CHAPTER 13 Digital Marketing and Social Networking 1 3- 3 Learning Objectives LO 1 3- 1 Define digital... making purchasing decisions 1 3- 8 Blogs and Wikis 1 3- 9 Media Sharing 1 3- 10 Common Mobile Marketing Tools 1 3- 11 Using Digital Media to Reach Consumers v v q Customer-generated communications and... illustrate how businesses can use different types of social networking media LO 1 3- 5 media Identify legal and ethical considerations in digital 1 3- 4 Growth and Benefits of Digital Communication 1 3- 5 Growth