Digital Marketing Fundamentals: Weeks 1-6

A comprehensive set of practice questions covering the first six weeks of Digital Marketing, including theoretical frameworks, consumer psychology, SEO, strategy, and analytics.

What is the definition of marketing based on the lecture notes?

The science and art of exploring, creating, and delivering value to satisfy the needs of the target market at a profit.

What are the three categories of value creation highlighted in digital marketing?

1. Utilitarian value (task-based, rational), 2. Hedonic value (fun, pleasure, experience), and 3. Linking value (community and interpersonal connections).

What is the 'Network Co-Production Model' in the context of message diffusion?

The internet-era model where consumers and online communities actively transform brand messages rather than just diffusing them, meaning firms no longer fully control brand meaning.

In digital transformation, what is the difference between Digitization and Digitalization?

Digitization is the conversion of analog information into digital format, while Digitalization is the use of digital technologies to alter and optimize existing business processes.

What is the 'Attention Economy' as described by Simon (1971) and Goldhaber (1997)?

The concept that information consumes the attention of its recipients, making attention the 'hard currency' of cyberspace that may eventually replace the flow of money.

How do the 'Push' and 'Pull' logics differ in digital marketing?

Push logic (Traditional) involves marketers finding consumers through research and ads, while Pull logic (Digital) involves consumers searching for solutions and brands positioning themselves to be found.

What are the four components of the STDC model for the consumer journey?

See (anyone who could buy), Think (commercial intent), Do (now ready to buy), and Care (existing customers).

What is the Zero Moment of Truth (ZMOT)?

A term coined by Google (2011) referring to the online research phase that occurs before a consumer encounters a product at the store shelf (First Moment of Truth).

How is the search engine advertising (SEA) position calculated?

$$\text{Max Bid} \times \text{Quality Score} = \text{Ad Rank}$$

What is the difference between On-page and Off-page SEO?

On-page SEO focuses on optimizing the firm's own website (content, meta tags, speed), while Off-page SEO focuses on external factors like social media presence and acquiring backlinks from other sites.

What are the four stages of the RACE framework?

Reach, Act, Convert, and Engage.

What is the 'Attention Ratio' rule for landing pages?

The attention ratio should be $1:1$, meaning every landing page should have exactly one goal and one link/call to action.

What are the four types of Zero Moment of Truth (ZMOT) search intents?

1. I-want-to-know (Informational), 2. I-want-to-go (Location-based), 3. I-want-to-do (Task-based), and 4. I-want-to-buy (Transactional).

How do you define a 'Lead' in digital marketing?

A lead is a visitor who is both a qualified potential buyer and has shown some level of interest in the firm's product or service.

What are the members of the BANT lead scoring framework?

Budget, Authority, Need, and Timeline.

What is the formula for calculating Basic Customer Lifetime Value (CLV)?

$CLV = AP \times RTP \times RT$ where AP is Average Profit per sale, RTP is Number of Repeat Transactions in a period, and RT is Retention Time.

What does RFM analysis stand for in customer segmentation?

Recency (last purchase), Frequency (how often they buy), and Monetary value (amount spent).

How is the Net Promoter Score (NPS) calculated?

$$NPS = \%\text{Promoters} - \%\text{Detractors}$$

What are the three response groups in Net Promoter Score (NPS)?

Promoters (scores 9–10), Passives (scores 7–8), and Detractors (scores 0–6).

In a marketplace model, what is the difference between a Vendor (1P) and a Seller (3P)?

A Vendor (1P) sells wholesale to the marketplace and has less control over pricing, while a Seller (3P) lists products directly on the marketplace with more control over pricing and inventory.

What is 'Brand Co-Destruction'?

The process where consumers act as brand arbiters, providing authoritative judgment and critique that can lead to negative brand value in C2C conversations.

What is the 12-month recovery test for Customer Acquisition Cost (CAC)?

A test used to evaluate if a customer generates more revenue than their acquisition cost within the first 12 months of the relationship.

What is the 'Consistence' principle in Conversion-Centered Design?

Ensuring message and design matching between the initial ad and the landing page so the user confirms they have arrived at the correct destination.

Define the 'Pillar Page' strategy.

A comprehensive resource page that covers a core topic in depth and links to high-quality cluster content on specific subtopics to build topical relevance.

What is the difference between First-party and Third-party cookies?

First-party cookies are created by the website the user is visiting to remember preferences/logins, while Third-party cookies are created by outside organizations for cross-site tracking and profiling.