E-Commerce and Social Media Marketing Midterm

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

RACE model

Reach, Act, Convert, Engage: the process by which marketers interact with consumers

REACH step (of the RACE model)

the organization grows their audience using paid, owned, and earned media to get the attention of customers

ACT step (of the RACE model)

when the organization prompts customer interactions to encourage subscribers and leads

CONVERT step (of the RACE model)

the organization achieves sales online or offline

ENGAGE step (of the RACE model)

when the organization attempts to get customers to buy again and/or advocate for the business through reviews

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

site owners charge per click

sponsorship

a company pays to advertise a site channel or section, typically a fixed fee for a period

affiliate revenue/CPA (cost per acquisition)

the intermediary receives a commission, also called CPC

transaction fee revenue

the intermediary receives a fee for facilitating a transaction

subscription access

subscribers receive access to a range of documents for a fixed period

pay-per-view access

an intermediary charges for one-time access to a document/video/music clip

subscriber data access for email marketing

an intermediary sells the data that a site owner has on its customers

freemium

services or content are provided free of charge or for a trial period with the purchase of a more advanced feature

digital rights management (DRM)

the use of different technologies to protect the distribution of digital services or content (ex. software, music, movies)

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

innovators

the first adopters of a new technology who take risks, 2.5%

opinion leaders

the majority of first adopters of a new technology, 13.5%

early majority

the people who take advantage of a new technology just prior to the average person, 34%

late majority

the other half of consumers who were skeptical, but eventually adopt the technology, 34%

laggards

the consumers who still have not adopted the technology, 16%

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)

options for varying the core product

mass customization and bundling

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)