E-Commerce and Social Media Marketing Final

e-commerce

all digital (and electronic) mediated TRANSACTIONS between an organization and a third party

digital business

the transformation of key business processes through the USE OF digital technologies

digital goals (7Ds model)

the goal of the digital marketing plan (ex. brand goals and strategy, SMART objectives, always-on marketing communications)

digital audiences (7Ds model)

the target audience/market (ex. B2C, B2B, C2C, customer segments, customer personas)

digital devices (7Ds model)

the devices that the audience uses (ex. smartphones, tablets, laptops, Alexa, digital TVs)

digital platforms (7Ds model)

the platforms used to communicate digital marketing (ex. apps, Facebook, Amazon, Google)

digital media (7Ds model)

paid, owned, or earned media (ex. websites, apps, search/social/email marketing, content marketing, PR)

digital data (7Ds model)

the customer data gathered from the marketing communications (ex. profiles, behaviors, values, preferences)

digital technology (7Ds model)

the technology used to analyze and understand digital data (ex. marketing automations, Martech, AI)

7D model of digital marketing plans

the framework for developing a digital marketing plan that includes goals, audiences, devices, platforms, media, data, and technology

transactional e-commerce site

a site where the customer can purchase a product/service (ex. Zara)

service-oriented relationship-building website

a site that is intended to build relationships with customers and NOT intended for purchase (ex. Coca-Cola site)

brand-building site

a site intended to build and/or enhance a brand (ex. the USAL website)

portal or publisher or media site

a landing page that provides information, news, or entertainment about a range of topics that CANNOT be transactional

social network site (SNS)

a social media site

opportunities of digital business

reach, richness (amount of pages), affiliation (links with partners)

risks of digital business

too many customers, hacking, privacy issues, lack of control (ex. Amazon controls product visibility), communications not getting to the right person in the organization

drivers of digital business

cost, efficiency, and competition (improved range and quality of offerings)

elements of the micro-environment

customers, suppliers, intermediaries, and competitors (things in the same sector/business/industry)

elements/forces of the macro-environment

PESTLE; political, economic, social, technological, legal, environmental

political forces (examples)

internet governance, taxation, funding for digital initiatives in business

economic forces (examples)

market growth, employment, interest and exchange rates, tariffs

social forces (examples)

net neutrality, birth rates, cultural events

technological forces (examples)

CRM (Customer Relationship Management), CMS (Content Management System)

legal forces (examples)

data protection, privacy law, anti-spam legislation, intellectual property rights

permission marketing

when customers agree (opt-in) to be involved in an organization’s marketing activities

CPM display advertising on site

site owners charge a fee for advertising per the number of times an ad is viewed

CPC advertising on site

cost-per-click (site owners charge per click)

CPA (cost per acquisition)

cost-per-acquisition (AKA affiliate revenue), when the intermediary receives a commission

disintermediation

the process of removing intermediaries that formerly linked a company to its customers (ex. when airlines moved from booking flights through travel agents to letting customers book directly online)

reintermediation

the creation of new intermediaries between customers and suppliers who provide services like supplier search and product evaluation

countermediation

the process of making better use of online intermediaries (ex. partnering with/purchasing/creating an independent intermediary)

5 categories of the theory of diffusion of innovation

innovators, opinion leaders, early majority, late majority, laggards

market development

entering a new market with an existing product

diversification

entering a new market with a new product

market penetration

entering an existing market with an existing product

product development

entering an existing market with a new product

online revenue contribution

an assessment of the direct contribution of the internet to sales (usually a percentage of overall sales revenue)

allowable cost-per-acquisition

a target maximum cost for generating leads or new customers profitably

the marketing mix (4Ps)

product, promotion, price, place

product (in the marketing mix)

a good, service, or idea (quality, image, branding, features, support, customer service)

promotion (in the marketing mix)

activities used to inform, persuade, and initiate a desired response (sales, PR, branding, marketing communications)

price (in the marketing mix)

decisions and actions associated with pricing objectives and actual product prices (positioning, discounts, payment methods)

place (in the marketing mix)

where and when products are available to purchase (trade channels, sales support)

brand identity

the totality of brand associations (name, symbol/logo, product, service, advertising, customer service, reputation)

mass customization

when companies use economies of scale enabled by technology to offer product variants to individual customers/groups (ex. Netflix viewing suggestions or Spotify music recommendations)

bundling

combining several products or services into a package, typically at a discount price (ex. bundling Disney+ with Hulu)

inbound marketing

also called pull marketing; a communication approach where the consumer is proactive in seeking out information for their needs (the brand is the flame, the customer is the moth)

ZMOT (Zero Moment of Truth)

a model describing the process of customer decision-making; the moment when a customer makes up their minds about where to go to buy a product

paid media

a type of digital media that is paid for by the company (ex. advertising, Google ads, commercials, billboards)

owned media

a type of digital media that is owned and managed by the company (ex. company websites, blogs, and social media posts)

earned media

a type of digital media that is NOT paid for or owned by the company (ex. reposts, shares, customer reviews)

Sell (5S goal)

growing sales (including direct online transactions and sales from offline channels)

Speak (5S goal)

getting closer to customers and encouraging online interactions using inbound marketing techniques (ex. search and social media marketing)

Serve (5S goal)

adding value for customers by providing content/offers that encourage customer interactions and sales

Save (5S goal)

saving costs by reducing offline media spend and customer service through organic inbound marketing techniques and customer self-service

Sizzle (5S goal)

extending the brand online and improving the customer experience (ex. exclusive online offers, customer communities, forums)

demographic segmentation

a type of market segmentation that involves separating a target market by demographic characteristics (ex. age, gender, income, religion, occupation, marital status)

psychographic/sociographic segmentation

a type of market segmentation that involves grouping customers based on similar values, opinions, and beliefs (ex. personality, hobbies, goals, lifestyle)

behavioral segmentation

a type of market segmentation that involves grouping customers based on their behaviors (ex. spending habits, browsing habits, brand interactions, brand loyalty)

5 competitive forces in the micro-environment

bargaining power of buyers, bargaining power of suppliers, threat of substitute products and services, threat of new entrants, and rivalry between existing competitors

in the digital age, the bargaining power of buyers/customers is…

increased because customers have more choices, higher knowledge, and higher price transparency

in the digital age, the bargaining power of suppliers is….

decreased because businesses have more places to get supplies (including e-marketplaces and e-procurement)

in the digital age, the threat of substitute products and services is….

increased because introducing new digital/smart products is significantly easier

in the digital age, the threat of new entrants is….

increased because there is a reduced barrier of entry (making products is easier)

in the digital age, the rivalry between existing competitors is…

increased because it’s harder to differentiate products and new product development takes less time

CRM (Customer Relationship Management)

the strategic process that companies use to manage, analyze, and improve interactions with customers

lead generation

the offers or content that are used to generate potential customers (leads)

lead scoring

a technique to measure interest in a business’s services based on a lead’s behavior, typically based on scoring interactions with different content (5 is the highest interest, 1 is the lowest interest, points are taken away for inactivity)

lead grading

a technique to measure a customer’s “fit” with a business’s services based on profile information (ex. job title, company size, industry) and graded from A (best fit) to E (worst fit)

lead nurture

a communications process aimed at developing purchase intent in a potential customer by increasing brand favorability and familiarity

prototyping

a development task during web site/app design planning that involves creating several prototypes of a site and testing them

digital accessibility

the principle of allowing all users to interact with a site regardless of possible disabilities or choice of web browser/platform

Push marketing (e.g. TV and print ads, direct mail) is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Pull marketing (e.g. search engine marketing) is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

One-way communications (e.g. one-to-many marketing communications) is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Dialogue and interactivity through user-generated content (UGC), e.g. one-to-one or many-to-many marketing communications is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Targeting costs being constrained by media placements is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

micro-targeting and personalization through Search Engine Marketing, social media, and media placements on niche sites is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

limited customer-to-customer (C2C) interactions is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

participation through communities and social networks is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

static campaigns (because adjusting campaigns after they have been booked with a media agency is difficult) is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Dynamic campaigns where it’s possible to test alternative targeting and revise the campaign based on performance is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Burst campaigns that maximize ad impact over a short period is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Continuous “always-on” media where permanent real-time presence is required in online media is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Limited media-buying opportunities with a high degree of wastage is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Limitless paid media-buying opportunities with pay-per-performance options and owned and earned media is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Detailed response measurement that’s often limited to qualitative research is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Responses being measurable at a micro-level through web analytics and ad-tracking is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Pre-testing is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Being able to test and refine during a campaign is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

Communications reaching audiences mostly through media owners is a characteristic of _______.

A. traditional media

B. digital media

C. both

A. traditional media

Most communications reaching audiences through website and non-media-owned blogs/social networks is a characteristic of _______.

A. traditional media

B. digital media

C. both

B. digital media

integrated communications being vital is a characteristic of _______.

A. traditional media

B. digital media

C. both

C. both

not cheap, quick, or easy is a characteristic of _______.

A. traditional media

B. digital media

C. both

C. both

conversion or interaction goals

digital campaign goals that involve converting site visitors/social media interactions/newsletter subscribers/existing customers into something else, such as registered users, purchasers, repeat customers, or long-term site users (ex. achieve 20% conversion of new unique site visitors to the product information area on the site)

third-party site reach and branding goals

digital campaign goals that involve reaching, influencing, and engaging with prospective customers on third-party sites such as online news, magazine sites, portals, and social networks (ex. reach a targeted audience of 500,000 during the campaign)

if a company wanted to achieve a direct response and had a large media budget, they should use….

TV and print ads, direct mail, multiple Google Ads campaigns, affiliate networks, multiple landing pages, or full-funnel content marketing

if a company wanted to achieve a direct response and had a smaller media budget, they should use….

local and niche TV and print ads, limited direct mail, organic search, organic social media, limited paid social ads, brand PPC, limited affiliates, limited landing pages, top-of-funnel content marketing

if a company wanted to achieve brand-building and had a large media budget, they should use….

tv and print ads, out-of-home (OOH) ads, sponsorship and endorsement, or public relations