Nikkhail digital study

flashcards for test

Define Digital Value Proposition (DVP)

Digital Value proposition (DVP) emphasizes the benefits of digital services, highlighting their ability to create value across business processes, channels, and products, resulting in cost reductions and innovative products.

State and define the 6 C’s

Content: The need for detailed info to support purchases for transactional or relationship-building sites

Customisation: Mass Customisation Data “Personalisation”, adjusted content like recommendation

Community: Internet allows Consumer's to discuss through chat-rooms & blog comments

Convenience: Ability to select, purchase, and use products at anytime

Choice: Web gives a wider choice of Products and Suppliers via conventional distribution channels

Cost Reduction: Digital World is perceived as Low-cost place of purchase; Customers expect goods to be low cost, so cost differentiation is key for encouraging usage of digital services

Explain the difference between Digital Business and E-commerce

A Digital Business conducts its operations on the internet, and how they can apply digital technology and media to improve their competitiveness.

E-commerce: The buying and Selling of goods and services digitally. Buy-side & Sell-side

Define Inbound and Outbound Marketing

Inbound Marketing: The consumer is proactive in actively seeking out information for their needs and interactions with brands are attracted through content, search and social media marketing.

Outbound Marketing: The organisation proactively push messages to potential customers through methods such as TV commercials, Direct mail, e-mail. To generate attention and interest.

What is the RACE Model

It guides businesses through the customer journey.
REACH - Increase Brand visibility and attract potential customers
ACT - Get customers to engage with your content
CONVERT - Process of turning potential customers into consumers
ENGAGE - Build customer loyalty and encourage repeat business

7D’s Model

Digital Goals: Brand’s goals, objectives. Through digital marketing and business to boost efficiency and changing revenue models.
Digital Audience - Understanding online audience characteristics to deliver content, increasing interactions, and meeting goals for digital businesses.
Digital Devices - Understanding Audience interactions with businesses using Internet of Things (IoT) devices like smartphones, tablets, laptops, etc, for effective buying and interprocessing.
Digital Platforms - The importance of digital interactions and communications on major FAMGA players, such as Facebook, Amazon, Microsoft, Google, and Apple, is assessed.
Digital Media - Use of various communication channels such as advertising, email, search engine, and social networks for reaching and engaging audiences
Digital Data - Applying insights that businesses collect such as audience profiles and their interactions now requite legal protection
Digital Technology - Selecting marketing technology/martech to create interactive experiences, support planning, insights, and reporting for digital marketing channels in marketing campaigns

Paid, Earned, Owned Media

Paid - Online, traditional media, TV, and direct mail, with investment in search, display, and affiliate marketing for reach.

Earned - publicity generated through PR, word of mouth, and online conversations. Includes Publishers, Bloggers, and influencers.

Owned - Brand-owned media including online and offline platforms, offer alternative investment opportunities and promote products. Emphasizing the need for multichannel publishers.

Digital Marketplace

Exchanges of information and commercial transaction between consumers, businesses, and governments. can be completed through use of many different forms of online presence such as social networks, comparison sites, and destination sites.

Traditional Physical Market

A Physical place where buyers and sellers come together to market.

Explain the concepts of disintermediation, reintermediation and countermediation

Disintermediation -The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers
Reintermediation - The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation
Countermediation - Creation of a new intermediary such as a publisher or comparison site by an established company.

Freemium Model

A revenue model where trial or low volume usage of a service is free with revenue generated from higher volume usage or use of more features

Subscription Model

A business strategy where customers pay a recurring fee for ongoing access to a product or service.

Marketplace Model

a Business structure that facilitates transactions between multiple buyers and sellers on a single platform.

Access-over-ownership Model

Where customers pay to use products and services temporarily instead of buying and owning them

What is Online Value Proposition

A statement of the benefits of e-commerce services that should not be available in competitor offerings or offline offereings

Macro Environement

consists of the external forces that affect a business, industry, or economy as a whole, and are largly beyond direct control

Micro Environment

Immediate external factors such as customers, suppliers, competitors, marketing intermediaries, and publics that directly influence a company’s operations and its ability to serve its customers.

Business Model Canvas

Framework that summarises strategy and business models for online businesses.

Digital Marketplace Map

a strategic tool used in digital marketing to visualize the customer’s online journey from awareness to purchase.

Traditional Linear Buying Process

a step by step model of consumer behaviour, moving predictably from problem recognition through to information search, evaluation of alternatives, and purchase decision to the final post-purchase evaluation.

Omnichannel

A business strategy that provides a seamless, integrated, and consistent customer experience across all sales and communication channels, such as physical stores, websites, and mobile app.

Digital Intermediaries

Websites or an online platform that help connect web users with content they are seeking, to facilitate transactions or interactions between two or more separate parties.

e.g. search engines, comparison sites, traditional brokers, directories and newspaper and magazine publishers with a digital presence

Direct-to-Customer (D2C)

A business sells its products directly to customers rather than through a store or wholesaler

Digital Revenue Models

CPC - Cost Per Click
CPM - Cost Per Mile
CPA - Cost Per Aquisition

Platform Economy

An economic model where digital platforms act as intermediaries that connect groups like service providers, consumers, and businesses.

Multichannel Strategy

How a business interacts with its customers using a combination of direct and indirect communications channels.

Headless E-commerce

Retailers who created a new e-commerce ventures that were acting in a silo and had no relationship with the main offline business.

Flexible, scalable, fast

More Complex, Higher initial cost

Monolithic Platform

A business that chooses an e-commerce platform and builds their proposition around that platform, All aspects of the technology would be embedded within the platform. It was seen as rigid and acts as a silo.

Simpler initial cost, faster onboarding

easy deployment, limited scalability, Poor reliability

Technical and Practical Choices

choice of payment system

clear product information

security measures

Zero Moment of Truth (ZMOT)

When there’s a feedback loop – customers now use the Internet to do pre-purchase research, to educate themselves and compare and contrast products and services.

Businesses can shape brand perception before a purchase is made.

General Data Protection Regulations (GDPR)

GDPR introduced across the EU in 2018 and enacted in the UK.
It’s a law introduced by the European Union in 2018 to protect people’s personal data and privacy. It sets strict rules on how organizations can collect, use, store, and share personal information.

SLEPT

Macro-environment Micro-environment (digital marketplace)

Social

Legal, ethical and taxation

Economic

Political

Technological

Competitive

Roger’s Diffusion Model

Innovators: The first to adopt, often risk-takers who are eager to try new ideas.

Early Adopters: Opinion leaders who are respected and adopt new ideas early to maintain a degree of influence.

Early Majority: Adopters who are more deliberate and will adopt new ideas before the average person but after being influenced by the early adopters.

Late Majority: A more skeptical group that adopts an innovation only after a majority of people have done so and the product is popular.

Laggards: The last to adopt, often characterized by their traditional views and resistance to change. 

Gartner's Hype Cycle

Innovation trigger – The first phase of a hype cycle is the ‘technology trigger’ or breakthrough, product launch or other event that generates significant press and interest.

Peak of inflated expectations – In the next phase, a frenzy of publicity typically generates over-enthusiasm and unrealistic expectations. There may be some successful applications of a technology, but there are typically more failures.

Trough of disillusionment – Technologies enter the ‘trough of disillusionment’ because they fail to meet expectations and quickly become unfashionable. Consequently, the press usually abandons the topic and the technology.

Slope of enlightenment – Although the press may have stopped covering the technology, some businesses continue through the ‘slope of enlightenment’ and experiment to understand the benefits and practical application of the technology.

Plateau of productivity – A technology reaches the ‘plateau of productivity’ as the benefits of it become widely demonstrated and accepted. The technology becomes increasingly stable and evolves in second and third generations. The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market.

Strategic Levels in a Business (5 Ellipses)

Corporate Strategy: Defines the overall mission, vision, goals, and business scope. Sets the direction for all other strategies — determines priorities, resource allocation, and performance expectations.

Digital Business Strategy: Integrates digital technologies and platforms into the core business model. Must align with corporate goals while enabling SCM, marketing, and IS strategies through technology and innovation.

Supply Chain Management (SCM) Strategy: Manages flow of goods, information, and resources.Relies on digital systems (ERP, IoT, analytics) from IS and digital strategy to ensure efficiency and responsiveness.

Marketing/CRM Strategy
Information Systems Strategy

Difference between Prescriptive strategy and Emergent strategy

Prescriptive strategic analysis is used to develop a strategy, and it is then implemented. In other words, the strategy is prescribed in advance. Structured - Annual or 6 month budgeting process

Emergent strategic analysis, strategic development and strategy implementation are interrelated. Shorter timescale to enable strategic agility to respond to marketplace dynamics

Strategic Process Model

a structured framework that guides organizations in defining their direction, making strategic decisions, and aligning operations with long-term goals

This model becomes dynamic when it views strategy as an ongoing, evolving system rather than a static, one-time plan, blending intended and emergent strategies in response to change

SWOT vs TOWS

TOWS - Used to develop strategies to counter the threats and take advantage of the opportunities and can then be built into the digital business strategy.

S - Strengths
W - Weaknesses

O - Opportunities
SO - Strengths + Opportunities (Attack)
WO - Weaknesses + Opportunities

T - Threats
ST - Strengths + Threats
WT - Weaknesses + Threats

SWOT - simple yet powerful tool that can help organisations analyse their internal resources in terms of strengths and weaknesses and match them against the external environment in terms of opportunities and threats.

VMOST

A simple model that can be used to outline key elements of the business and help determine strategy.

5 Levels:
Vision - For the future
Mission - Achievable in the next 12-18 Months
Objectives - Measure Progress
Strategy - Direction to take to reach Mission and Objectives
Tactics - Specific actions or tasks to reach everything above

Balance Scorecard Measurement Framework

A framework for setting and monitoring business performance. Metrics are structured according to customer issues, internal efficiency measures, financial measures and innovation.

SOSTAC

S – Situation Analysis → Where are we now?
O – Objectives → Where do we want to be?

S – Strategy → How do we get there?
T – Tactics → What tools and channels will we use?

A – Action → Who does what, and when?

C – Control → How do we measure and monitor performance?

Guides marketers through every stage of developing and managing a marketing (or digital marketing) plan. From understanding the current situation to controlling and improving results.

6 I’s

Interactivity

Intelligence

Individualization

Integration

Industry Structure

Independence of location