Internet marketing

Stockholm university

Technology Acceptance Model (TAM)

• Explains why people choose to adopt technology or not

• Relies on two fundamental variables to explain resultant behaviour:

  • “Perceived usefulness”

  • “Perceived ease of use”

Social contagion

• Explains social influence on decision making

• If an increasing number of people start using a particular technology, it will be harder for those not using the technology to resist adopting it

• Two main types:

  • Social contact - having close friendships with other individuals/groups

  • Vicarious learning - individuals learn from observation

Uses and gratifications theory (UGT)

• Individuals actively seek out media to satisfy needs or desires

  • Someone looking for entertainment will choose media platforms that deliver that experience

• Classifies gratification into four categories:

  • Diversion: seeking entertainment, escape or emotional release

  • Personal relationships: seeking information useful for the maintenance of personal relationship

  • Personal identity: watching similar others and seeking validation through this

  • Surveillance: satisfying curiosity about what happens around them

Social information processing theory (SIP)

• Explains how individuals make decisions and form attitudes in social context

• Online relationships can become as strong or stronger than face-to-face ones: called this term “hyperpersonal communication”, and is the result of four effects:

  • Information exchanged is of shared interest; receiver develops a sense of similarity with sender

  • Receiver controls the image he wishes to portray; disclosing socially desirable traits

  • Communication is time-delayed; sender can reflect upon and edit messages

  • Pre-existing impressions; if A has the impression that B is friendly, A is likely to send a friendly message

In-game advertising (IGA) and Advergaming

• Placing products or brands within the context of a game

  • Ads on side of the football pitch

• Advergaming is a hybrid between advertising and gaming

  • Aim to entertain and engage players to create emotional connection between the brand and the player

  • Games are frequently played many times - allows the player to be exposed and interact with the brand for a long time

  • Has strong positive effect on WOM

Theoretical models: Advergaming & IGA

• Social cognitive theory

  • Learning by observing others

• Limited-capacity model of motivated mediated message processing

  • Once an individual is oversaturated with stimuli, information can no longer be successfully processed or recalled

  • Attention is divided into primary task (playing the game) and secondary task (paying attention to the commercial message)

  • If the game is perceived difficult then all cognitive resources go to the primary task, leaving not enough resources available for the secondary task

• Flow

  • A mental stage where an individual i fully immersed in a task, feeling in complete control

  • Flow distract from brands in the game, leading to low brand recall

Gamification

• A process of applying game-like elements to non-game activites to make it more engaging, fun and motivating

  • Duolingo

• Relies on two strategies:

  • Include rewards for completing tasks

  • Competition with friends to get users engaged and motivated

Mobile device-based websites

• Ease of use is more important for mobile devices in relation to traditional websites

CCT stages

1. Pre-consumption stage

2. Purchasing stage

3. Core consumption stage

4. Remembered consumption stage

Online purchasing decision (steps)

Five stages

1. Awareness of need

2. Search for more information

3. Evaluation of alternatives

4. Actual purchase decision

5. Post-purchase contact with firm

Consumer behavior online

Once firms have an understanding of who is online, they need to focus on how consumers behave online

• Clickstream behavior

  • Refers to the path a user takes while clicking through a website/app, until a final decision to purchase - or not

Attention and shelf space in e-commerce

• In e-commerce, shelf space is an “unlimited” resource

• Shelf space disappears as a limiting factor

• But “attention costs” remain in e-commerce

Subcultures of consumption

• Groups with a communal commitment to a particular brand, product or other consumption activity

Tribes or brand communities

• Brand community

  • A community based on a structures set of social relations amongst admirers of a brand

• Tribes

  • A community based on a structured set of social relations and shared behaviors, also expressed or experienced through the consumption of shared products of symbolic meaning

  • Tribes are broader

• Bound together through social connectedness

Service dominant logic

• Theory argues that modern consumption i no longer focused on tangible resources and goods.

• Focus has been replaced by the on the co-creation of value through service

  • The interaction between producer and consumer

Linking value

• The “social links” a product or brand creates between individual tribe members at a communal level

Commercial co-creation

• Collaborating

  • Customers regulate the production of value

  • Contributor have the power to make change to the basic structure of the product

• Tinkering

  • Allows consumers to use products in a fairly open way and customise the core product, but the organisation still remains in close control of the core product

  • Google maps

• Co-designing

  • Allows a group of customers to contribute to products, with the final contribution being selected again in an open fashion by all customers

• Submitting

  • Design contests where the organisation decides on the final winner

Co-creation

• When a company and its customers work together to create value

• Leads to increased brand loyalty and more fulfilling consumer-brand relationships

• Customers achieve psychological satisfaction through being creatively engaged in the creation process

Anti-consumption

• Anti-consumption society

  • Groups who try to remove themselves from a consumption society by actively reducing consumption to only essential consumption

  • Can also be expressed through actively consumption of competing brands

• Selective consumption

  • Consuming certain products linked with causes they support, not consuming products that oppose their personal values

• Conservation

  • Members reduce consumption often of specific products based on personal values

• Rejection of brand hegemony

  • Groups create a community resulting from frustration from major brands

  • Creating their own brand or boycott

Critiques of co-creation

• Asking consumers to create products: double exploitation of consumers

• Asking consumers to provide free labour to create the products

Brand personality

• Aakers framework consists of five dimensions

  • Sincerity

  • Excitement

  • Competence

  • Sophistication

  • Ruggedness

• Brands with strong personality = increasing consumer brand loyalty

• The more a consumer perceive a brand to be “person-like”, the more they are likely to remain loyal

• Easier and cheaper to create brand personality through social media

Brand relationships

• People relate to brands in similar ways as to other humans

• Soft-sell appeals are focused on building positive affects towards the product and brand, and therefore more likely to create positive attitudes towards the ad

  • Associating them with higher purchase intention

• When a brand is perceived as “human-like” the brand is seen as anthropomorphic - has a positive effect on brand relationships

Anthropomorphic marketing

• Brand or product assume human-like characteristics

  • The characters in ToyStory are personifications of toys

• A technique that attempts to connect emotional feelings to products or brands

  • Desired outcome is that the audience transfers perceived attributes to the brand

Elaboration likelihood model (ELM)

• Explains how people are persuaded - how peoples attitudes can be changed

• Two main ways:

  • Peripheral route: understated cues to subtly shift or associate attitudes towards a product/brand

    • A popular influencer uses a certain product - viewers may feel more positively towards it

  • Central route: persuaded by carefully thinking about the message’s content

    • Someone watches a detailed YouTube review of a laptop, thinking hard about the features and value before deciding if they like it

• Used to research persuasiveness in social media

Cultivation theory

• Perspective to why influencers and exposure to social media messages may be effective as a persuasive tool

• Long-term, repeated exposure to media (social media or influencers) can shape how people see reality (first-order effects) and even influence their values and beliefs (second-order effects)

E-commerce & E-business

Related but not interchangeable terms

• E-commerce:

  • Involves an external change of value

  • Is about who the company does business with

  • Example: selling products online or buying supplies from a vendor

• E-business:

  • An internal digital process within a firm

  • Is about how a company runs

  • Example: a company tracking its inventory or managing payroll online

Eight unique features of e-commerce technology

• Ubiquity: its available everywhere and at all times

• Global reach

• Universal standards: shared by all nations around the world

• Social technology: user-generated content, creators, and social networks

• Personalization & customization: can target their marketing message to a specific individual by adjusting message to a persons name, and changing the delivered product or service based on a users preference or prior behavior

• Information density: information is more plentiful, less expensive and of higher quality

• Interactivity

• Richness: offer more information richness than traditional media

The internet key technology concepts

• Internet defined as network that:

  • Uses IP addressing

  • Supports TCP/IP

• Three important concepts:

  • Packet switching

  • TCP/IP communications protocol

  • Client/server computing

Packet switching

• A method of slicing digital messages comprised of bits into packet, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destination

• The codes travel from computer to computer (router) until they reach their destination

  • Routing algorithm: to ensure the packets take the best available path

Transmission control protocol/Internet protocol (TCP/IP)

• Protocols were developed to ensure all devices follow so they can communicate properly

  • To provide high-speed communication network links

• TCP establishes connections among sending and receiving computers and handles assembly and reassembly of packets

• IP provides the internets addressing scheme and is responsible for delivery of packets

TCP/IP architecture and protocol suite

IP is divided into four separate layers:

• Network interface layer

• Internet layer

• Transport layer

• Application layer

IP addresses

• Every device connected to the internet has an address - otherwise it cannot send or receive TCP packets

• Can be expressed as 32-bit or 128-bit

• An IP address can be represented by a domain name, using a domain name system (DNS)

The web and hypertext

• Text formatted with embedded links

  • Links connect documents to one another, and to other objects such as sounds, video etc

• Uses hypertext transfer protocol (HTTP) and URLs to locate resources on the web

  • Example URL: https://cloud.timeedit.net/su/web 

• HTTP is the internet protocol used to transfer web pages

  • When opening a website, the browser sends an HTTP request to a server

Client/server computing

• A model of computing in which client devices are connected in a network together with one or more servers

• Without it, the web would not exist

• The internet is a giant example of client/server computing

Cloud computing

• Using the internet to access computing resources like storage, software, or processing power

• Three types of clouds:

  • Public cloud: shared with others, managed by big providers like Google or Microsoft, you only pay for what you use

  • Private cloud: used by just one organisation, more security and control

  • Hybrid cloud: a mix of both, often used by large firms

Internet infrastructure

The internet has four layers:

• Network technology substrate layer

  • Composed of telecommunications networks and protocols

• Transport service and representation standards layer

  • Houses the TCP/IP protocol

• Applications layer

  • Client applications such as web, e-mail, audio or video playback

• Middleware services layer

  • Glue that ties the applications layer to the others

  • Includes security, authentication, addresses, storage repositories

Eight key elements of a business model

1. Value proposition

2. Revenue model

3. Market opportunity

4. Competitive environment

5. Competitive advantage

6. Market strategy

7. Organizational development

8. Management team

Value proposition

• Defines how a companys products or service fulfills the needs of customers

  • “Why should the customer buy from you?”

• Successful e-commerce value proposition:

  • Personalization/customization

  • Reduction of product search, price discovery costs

  • Products get from the seller to buyer efficiently

Revenue model

• Describes how a business will earn revenue, generate profit

  • “How will you earn money?”

• Major types of revenue model:

  • Advertising revenue model

  • Subscription revenue model

  • Transaction fee revenue model

  • Sales revenue model

  • Affiliate revenue model

  • Freemium strategy

Market opportunity

• “What marketspace do you intend to serve and what is its size?”

• Realistic market opportunity:

  • Defines by revenue potential in each market niche in which company hopes to compete

  • Typically focuses on one or a few market segments

Competitive environment

• “Who else occupies your intended marketspace?”

  • Other companies selling similar products in the same marketspace

  • Both indirect (different industries but product can substitute for one another) and direct (sell very similar products in the same market) competitors

• Influenced by:

  • Number and size of active competitors

  • Each competitors market share

  • Competitors profitability

  • Competitors pricing

Competitive advantage

• When they can product a superior product and/or sell a lower price than competitors

• Important concepts:

  • Asymmetries: whenever one participant has more resources than others

  • First-mover advantage: being the first (pioneer), they sometimes lack complementary resources

  • Complementary resources: resources not directly involved in production but required for success - marketing, management, assets, reputation etc

  • Unfair competitive advantage: one develops an advantage that other businesses cannot purchase - built loyalty, trust, reliability etc

  • Leverage: a business uses its advantages to achieve more advantage in other markets

  • Perfect markets: no competitive advantages or asymmetries

Market strategy

• “How do you plan to promote your products or services to attract your target audience?”

  • A plan that details how a company intends to enter market and attract customers

  • Need to be properly marketed to potential customers

Organizational development

• “What types of organizational structures within the firm are necessary to carry out the business plan?”

• How firms will organize the work that needs to be accomplished

• Divided into functional departments:

  • Production

  • Shipping

  • Marketing

  • Customer support

  • Finance

Management team

• Employees of the business responsible for making the business model work

• “What kind of backgrounds should the company leaders have?”

• A strong management team:

  • Can make the business model work

  • Can give credibility to outside investors

  • Has market-specific knowledge

  • Has experience in implementing business plans

B2C business models

Online business attempt to reach individual consumers

• E-tailer

• Community provider

• Content provider

• Portal

• Transaction broker

• Market creator

• Service provider

B2C models: E-tailor

• Online version of traditional retailer

• A business that enables customers to shop and purchase via a website and/or mobile app

• Revenue model: sales

• Variations:

  • Virtual merchant

  • “Bricks-and-clicks”

  • Catalog merchant

  • Manufacturer-direct

• Low barriers to enter - competitive sector

B2C models: Community provider

• Provide online environment (social network) where people with similar interests can transact, share content and communicate

  • Facebook, LinkedIn, Twitter etc

• Revenue models:

  • Hybrid: combining advertisement, subscription, sales, transaction fees etc

• Value proposition is to create fast, convenient, one-stop platform where users can communicate and share information

B2C models: Content provider

• Distributes digital content on the web such as news, information, music, photos and video

• Dominated by traditional publishers

• Revenue models:

  • Advertising, subscription, sales

  • Key to success: owning the content

B2C models: Portal

• Offers various services, “everything” in one place such as search tools, news e-mail etc

  • Yahoo, MSN, AOL

• Sells nothing themselves

• Revenue models:

  • Advertising, referral fees for steering customers to other sites, transaction fees, subscriptions

• Variations:

  • Horizontal/general: include all users of the internet

  • Vertical/specialized: focused on a particular subject matter or market segment

  • Search: focuses on offering search and advertising services, Google

B2C models: Transaction broker

• Process online transactions for consumers

  • Primary value proposition - saving time and money

• Revenue model: transaction fees

• Industries using this model:

  • Financial services

  • Travel services: generate commissions from travel bookings

  • Job placement services

B2C models: Market creator

• Builds a digital environment (market) where buyers and sellers can meet, display and search for products and services etc

• Does not execute the transaction for the customer (unlike transaction broker)

  • eBay

  • Uber

  • Airbnb

• Revenue model: transaction fees, fees to merchants for access

B2C models: Service provider

• Offers online services

  • Google, Google maps, Gmail

• Value proposition

  • Valuable, convenient, time-saving, low-cost alternatives to traditional services

• Revenue models:

  • sales, subscription fees, advertising

Virtual merchants

• Single-channel e-commerce firms that generate almost all revenue from online sales

  • Amazon

• No physical stores

• Challenges:

  • Building business and brand name quickly - to cover costs of operations

  • Low barriers to entry - invites many competitors

  • Costs to build and maintain e-commerce presence

  • Steep learning curve

Omni-channel merchants (Brick-and-Clicks)

• Network of physical stores as primary retail channel but also online operations

  • Walmart

• Advantages such as brand name, national customer base, warehouses and trained staff

• Acquiring customers is less expensive because of their brand names

• Challenges:

  • High cost of physical buildings and staff

  • Coordinate prices across channels

  • Building credible e-commerce presence

    • Hiring new skilled staff

Manufacturer-direct (DTC)

• Single or multi-channel manufacturers who sell directly to consumers online without invention of retailers

  • Apple, Dell, Sony

• Challenges:

  • Channel conflict

  • Switching from supply-push model (products made prior) to demand-pull model (products built when order)

Catalog merchants

• Established companies that primarily sell through printed catalogs but have also moved into online sells

• Challenges

  • High costs for printing and mailing catalogs

  • Adapting to the new technology

  • Has become less revelant

How e-commerce changes business

• E-commerce changes industry structure by changing:

  • Rivalry among existing competitors

  • Barriers to entry

  • Threat of new substitute products

  • Strength of suppliers

  • Bargaining power of buyers

• Improves each part of the value chain: easier and cheaper to share information

• Businesses can:

  • Buy and sell more efficiently

  • Skip middlemen

  • Use data to operate faster and better

  • Serve customers more personally

  • Wider audience

• E-commerce helps improve:

  • Production

  • Customer service

  • Coordination and outsourcing

B2B marketing

• B2B marketing has not grown as quick as B2C, because they are different markets

• B2B firms sell low volumes of very valuable and complex products to a small number of purchases

• LinkedIn most common social network for B2B

B2B marketplaces

• What businesses buy:

  • Direct goods (used in production - raw materials)

  • Indirect goods (used for operations - office suppliers)

• How businesses buy:

  • Spot purchases (one-time buys, often urgent)

  • Long-term sourcing (ongoing supplier relationships with contracts)

• Types of marketplace:

  • E-distributors

  • E-procurement

  • Exchanges

  • Industry consortia

  • Private industrial networks

B2B models: E-distributors

• Provides an online catalog of products from many different manufacturers that are available to purchase by individual businesses

  • Most common type of net marketplace

• Middlemen between manufacturer and businesses

• Helping companies buy indirect goods quickly and easily

• Revenue model: sales

• Operate in horizontal markets

• One-to-many market

B2B models: E-procurement net marketplaces

• Establishes digital markets for trade between companies

  • Helps businesses use technology to buy goods and services more easily and efficiently

• Connect hundreds of suppliers of indirect goods

• They create horizontal markets

• Revenue model: transaction fees, licensing consultation services and software, network fees

• Many-to-many market

B2B model: Exchanges

• An independent digital marketplace where a large number of suppliers meet a limited number of very large companies in a sector

  • Steel business

• Creates mostly vertical markets

• Revenue model: fee or commission on the transaction

• Benefits include lower prices, reduced search costs and access to global purchasing environments

• Has had trouble attracting suppliers due to increased transparency

B2B models: Industry consortia

• Industrial sector-owned vertical marketplace that serve specific industries with products e.g., automobile industry

• Can also be horizontal, i.e., offers products of a special kind to a large number of companies

• Goal is long-term purchasing and improve supply chain coordination

• Revenue model: fee or commission

B2B models: Private industrial networks

• A digital network designed to coordinate the flow of communications and supply chains among firms engaged in business together

• Full control of supply chain coordination 

• Example: Walmart, Procter & Gamble 

Business strategies

• Differentiation 

  • Ways producers can make their products or services unique and different to distinguish them from competitors 

• Commoditization 

  • Where there are no differences among products or services, and the only basis of choosing is price 

  • The opposite of differentiation  

• Strategy of cost competition 

  • Offering products and services at lower cost than competitors 

  • Short-lived and tricky 

• Scope strategy 

  • Competing in all markets around the globe 

• Focus/market niche strategy 

  • Competing within a narrow market or product segment 

• Customer intimacy 

  • Focuses on developing strong ties with customers in order to increase switching costs – and therefore enhance a firm’s competitive advantage 

Procurement process and supply chains

• B2B e-commerce is about changing the procurement process (how firms purchase the goods they need to produce goods for consumers) 

  • Can be done by contrast purchasing or spot purchasing

• In the procurement process, firms purchase goods from a set of suppliers, which in turn purchase their inputs from their own suppliers 

• Seven steps in the procurement process 

Trends in supply chain management

• Supply chain management (SCM) 

  • A wide variety of activities that firms use to coordinate the key players in their procurement process  

• Major trends in SCM 

  • Continual efforts to improve process 

  • Trends include: Just-in-time and lean production, supply chain simplification, adaptive supply chains, sustainable supply chains, electronic data interchange, supply chain management (SCM) systems. 

App marketing

• Apps reach web services “without” browsers 

• Most efficient are in-app ads

• Faster access to content 

• Has influenced the design of traditional web pages 

• Four revenue models 

  • Payment for download 

  • In-app purchase 

  • Subscription  

  • Advertising  

E-mail marketing

• High response rates and low cost 

• Ability to track and measure response, personalise content and tailor offers, drive traffic to websites for more interaction etc. 

• Three main challenges 

  • Spam 

  • Anti-spam software: software tools used to control spam that eliminate many e-mails from users inboxes 

  • Poorly targeted purchased e-mail lists 

Key figures of e-mail marketing

• Delivery rate: measures how many emails reach 

• Opening rate: measures how many emails are opened by recipients 

• Click rate: number of clicks on a link in the email 

Disadvantages of e-mail marketing

• Difficult to get the email through firewall etc. 

  • Important to avoid certain keywords 

  • Important to examine how the mail fits the e-mail software

• Difficult to create creative design of email 

• Hard to get consumers over time to get involved in the mail 

• Resource-intensive to personalise the email 

• Widespread spam distribution 

Big Data

• Big data 

  • Huge sets of data that are too massive to be processed and analysed using traditional data tools  

  • Petabyte, exabyte range 

  • Web traffic, e-mail, social media, content 

  • Traditional DBMS (database management systems) unable to process Internet of Things 

• Hadoop  

  • Open-source software framework used to store and process big data 

  • Processes any type of data, even unstructured 

  • Distributed processing 

CRM (Customer relationship management)

• A repository of customer information that records all the contacts that a customer has with a firm  

  • Customer information builds up over time in a customer profile 

• One-to-one marketing is another name 

• Business-consumer relations are built up at individual level 

• Increases the opportunity to focus on the most valuable customers 

CRM-data

Customer profiles can contain the following information: 

• Personal data and profile data; contact details etc 

• Transaction data; log of purchases 

• Communication data; log targeted campaigns and response to them 

Other online marketing strategies

• Customer retention strategies 

  • One-to-one marketing (personalisation) 

  • Behavioural targeting (interest-based targeting) 

  • Retargeting  

• Customisation and customer co-production 

• Customer service 

  • FAQ 

  • Real-time customer service chat systems 

  • Automated response systems 

One-to-one marketing (personalisation) 

• Personalising marketing efforts for each individual customer

   

• Involves tailoring messages, offers, or products to meet the unique needs or preferences of individual customers 

Behavioral targeting (interest-based advertising)

• Involves using online and offline data about behaviour of consumers to adjust the advertising messages delivered to them  

• If you are visiting a jewelry site, you would be shown jewelry ads 

Retargeting (remarketing)

• Showing the same or similar ads to individuals across multiple websites or apps

   

• Is a popular tactic because of its perceived effectiveness  

Customisation and customer co-production 

• Changing the product, not just the marketing message, according to user preferences  

• Customer co-production takes the customisation one step further by allowing the customer to interactively create the product 

Affiliate marketing 

• Commissions paid by advertisers to affiliate websites for referring potential customers to their website 

• Pay-for-performance: the affiliate only gets paid if users click on a link or purchase a product 

• Marketing/sales via a third-party company  

• Big players have their own affiliate systems while smaller ones use affiliate networks to place the ads 

Traditional affiliates

• Comparison sites 

• Review pages 

• Blogs  

Viral marketing

• Represent WOM online

   

• Primarily two forms 

  • Forwarded email 

  • Discussions on social media 

• Viral marketing encompasses consumer-to-consumer discussion of products by electronic means - can be used synonymously with eWOM (199) 

• Disadvantages 

  • High-risk marketing that requires careful preparation while there is no guarantee that the desired distribution will be achieved 

Social marketing 

• Marketing and advertising via social media sites like Facebook 

• Encourage consumers to become fans and engage and enter conversations 

• Strengthen brand by increasing share of online conversation 

• Social sign-on 

  • Information is transmitted when users on social networks connect to commercial pages on the network 

• Collaborative shopping 

  • Sharing buying experiences with others 

• Network notification 

  • Consumers can express pleasure/dissatisfaction with the company’s products 

Traditional online marketing and advertising tools

Marketing and advertising tools for attracting e-commerce consumers: 

• Search engine marketing and advertising 

  • Search engine marketing (SEM) (largest share) 

  • Search engine optimisation (SEO) 

• Display ad marketing 

• E-mail marketing 

• Affiliate marketing 

• Viral marketing 

Keyword advertising

• Keyword advertising benefits advertisers as they only pay when the ad is clicked 

• Benefit consumers when the ads are only linked to relevant keywords. No pop-up 

• More keywords are purchased with increased click-through cost 

Display ad marketing

• Banner ads

• Rich media ads

• Video ads

• Sponsorships

• Native advertising

• Advertisers pay for ads on third-party site 

• Effectiveness is measured by how many impressions your ads are served 

• Display advertising issues 

  • Ad fraud 

  • Viewability 

  • Ad blocking 

Advantage/disadvantages of display ads

• Direct response 

• Increases brand awareness 

• Can often be cheaper than printed media ads 

• May damage the brand depending on the placement of the ad 

• Uncertainty about which ad formats give the best results 

How well does online advertising work?

• ROI (Return on Investment) in the ad campaign is what counts 

• Difficult of cross-platform attribution 

• Highest click-through rates: 

  • Search engine ads 

  • Permission e-mail campaigns  

  • Putting the recipient’s name in the subject line can double the click-through rate 

• Most powerful marketing campaigns use multiple channels, including online, catalog, TV, radio, newspapers, stores 

Digital rights management (DRM)

• A combination of technical and legal means to protect digital content from unlimited reproduction and distribution without permission 

• Can prevent users from purchasing and making copies for widespread distribution 

Downside of social marketing

• Loss of control 

  • Where ads appear in terms of other content 

  • Ads placed near content that does not represent the values of the brand 

  • What people say 

  • Posts 

  • Comments  

  • Inaccurate or embarrassing material 

• In contrast, TV ads maintain near complete control 

Why is local mobile attrative to marketers?

• Mobile users more active and in a closer proximity to merchant, more ready to purchase than desktop users 

• Over 80% of US consumers use mobile devices to search for local products, services 

• Faces some challenges: 

  • Privacy concerns, find it “creepy” 

Website as marketing platform

• Major tool for establishing the initial relationship with the customer 

• The website performs four important functions: 

  • Establishing brand identity and consumer expectations 

  • Informing and educating the consumer 

  • Shaping the customer experience 

  • Anchoring the brand in an ocean of marketing messages from different sources 

Persuasiveness

• Elaboration likelihood model 

• Heuristic-systematic model 

• Integrated model of persuasion  

Heuristic-systematic model

Suggests that information is processed in one of two ways: either by following relatively simple decision rules (heuristics) or by engaging with the message content in a systematic form. 

Integrated model of persuasion

• An additional processing path to the heuristic (peripheral) and systematic (central) 

• After a message is evaluated a judgement evaluation stage completes the information processing 

Persuasion knowledge

• Explains the coping mechanisms employed by consumers in response to marketers' persuasion tactics 

• The central premise of the model is that consumers, being constantly exposed to multiple persuasion attempts, over time develop certain coping strategies and become better able to repond to such attempts and learn to adapt their behaviour accordingly. 

Functional triad

• How technology can be designed to influence people’s attitudes or behaviours 

• Create engaging, effective experiences that users are more likely to stick with 

• At the centre of the framework are seven design principles: 

  • Simplification

  • Sign-posting

  • Self-relevance

  • Self-supervision

  • Support

  • Suggestion

  • Socialisation

Credibility

Four types

• Presumed credibility

• Reputed credibility

• Surface credibility

• Experienced credibility

Perceived similarity

People are more influenced by messages that come from people like them — especially those they identify with or look up to.

Three theories help explain why:

• Source attractiveness model

• Social influence theory

• Reference group theory