Digital Marketing Exam 1

When were commercial messages officially allowed?

1991

What led to a shift in the industry and helped the emergence of the term "digital marketing"?

The creation of Google's search engine

What is data-driven marketing?

Using customer information and analytics to predict future actions and guide marketing decisions

What are the "4 I's" of Internet Marketing?

Interactive, Information-driven, Immediate, Involving

What occurs when the customer takes an action desired by the marketer, such as a first purchase or signing up to receive more product information?

Conversion

What occurs when the customer continues to make purchases?

Retention

What is the monetary value of a customer over time?

Customer lifetime value (CLV)

What are the four core marketing strategies?

Acquisition, Conversion, Retention, Value Growth

What are some direct marketing strategy elements?

Offer, List, Media, Creative Execution, Service and Support

What is the offer, and what questions should it answer?

Customers need to understand what the buying process is going to look like. It answers the questions of What, By, When, and Why

What is the business waves of change?

Building internet infrastructure and bringing people online > building services and apps on top of the internet > the internet of everything

What is the Internet of Things?

The network of physical objects accessed through the Internet with technology that interacts with the internal state or the environment

What is the Internet of Everything?

Bringing together people, processes, data and things to make networked connections and information more relevant and valuable than ever before. Builds upon the Internet of Things by adding people, processes, data and things to create a richer experience

What are the three main components of the Internet of Things?

Sensors, Connectivity, People & Processes

What is mixed reality?

Viewer sees interactive combination of real and virtual objects, and it combines aspects of the physical and virtual

world

What is virtual reality?

The simulation of a 3-D environment in which the user

interacts with special equipment

What is augmented reality?

An enhanced version of reality created by superimposing computer generated images on top of the users view of

the real world

What is RFID?

Identification of tagged goods from a distance with no intervention by human operation

What is digital disruption?

the change that occurs when new digital technologies and business models affect the value proposition of existing

goods and services

True or false: Digital disruption occurs when new digital technologies affect the value proposition of existing goods and services

True

True or false: Which of the following is a network of physical objects accessed through the internet?

The Internet of Things

True or false: The "cloud" is a metaphor for the internet.

True

Businesses have enthusiastically adopted the internet for marketing for ____

attracting new customers and customer retention

The phenomenon whereby old ways of thinking and behaving are upset by digital technologies is called digital ______

disruption

True or false: First-party data is collected by companies that do not have a direct relationship to a particular firm's customers.

False

All direct response promotions must have a clear ________________. For example, the green "Try 2 months for $0" button in the Spotify ad below demonstrates this requirement.

Call to action

On average, users spend ________ time on mobile devices as compared to desktop/laptop computers.

more

On average, users spend about ________ hours per day on the internet.

6 HR 38 MIN

True or false: The emphasis on customer online engagement and measurement is what led to the widespread adoption of the term "digital marketing."

True

_______is the main focus of marketers today, as it is generally more important than brand to consumers in most purchase situation

Customer experience (CX)

How does a business become digitally mature?

When the business is innovative and agile enough to deal with ongoing change and disruption; ongoing process

What is cloud computing?

storing and accessing data and programs over the Internet instead of your computer's hard drive. The cloud is just a metaphor for the Internet.

In 2025, the number of internet users reached _________ billion.

6.04

What is the most common way for consumers to enter the web?

a search engine

Over _____ of the world's population has access to the mobile web

70%

Explain the steps for Digital Transformation Strategy

1. align on the why 2. prepare for culture change 3. start small but strategic 4. map out technology 5. seek out partners 6. gather feedback and refine 7. scale and transform

What are digital marketing best practices?

personalization, effective promotions, use of rich media, strategic partnerships, consumer involvement, use of rich media

What is a supply chain?

the channel from suppliers to producers

What is a value chain?

an integrated supply chain in which transactions are conducted electronically; Supply Chain + Channels of Distribution

What is a virtual value chain?

an integrated value chain that operates exclusively on the internet

What is a value ecosystem?

a way to connect brands and their customers and business partners in a direct, non-linear fashion

Steps for successful digitization of business processes

Define the precise outcome required, Create seamless, end-to-end customer experience, Move quickly, Roll out new processes carefully

________________ + __________________ = Friction (slowing us down). Friction usually accounts for

over 40% of chain costs.

Information, Transaction Costs

What are benefits of an integrated value chain?

Customers now demand performance, reliability, speed and

convenience in both products and distribution. Using an integrated value chains help with a faster time to market and higher customer experience

What is EDI

Electronic Data Interchange; created the "paperless" supply chain

What is ERP

Enterprise Resource Planning; combines multiple business functions (ex: sales and accounting)

What is RFID

Radio Frequency Identification; reduces the time required for inventory by 98%

What is SaaS

Software as a Service; making software available on a usage fee basis instead of purchasing or licensing the software itself (ex: Word, Excel)

What is cloud computing

Storing data and performing actions on the internet, not

on software stored on the computer.

True or false: YouTube and Netflix are examples of content platforms.

True

True or false: The value chain refers to the various suppliers a producer utilizes to procure products or services.

False

True or false: The value a customer perceives in a product or service is largely determined by its price.

False

A supply chain in which value is added at various points in the distribution process is called a:

value chain

What are the types of costs in the value chain?

Information search, fragmented customer markets, product standardization, transaction

Intermediaries through which products and information about transactions move during a single exchange is called:

channels of distribution

In the __________, value is based on knowledge exchange that drives proactive production of goods and services.

value ecosystem

What is a business model?

Elements that describe an organization's goals, strategies, processes, technology, structure

A business model creates ____ for customers

value

What are functions of a business model?

Articulate the value proposition, identify the market segment to be targeted, identify the structure of the value chain, estimate cost structure and profit potential, formulate the competitive strategy

The value proposition explains:

How your product solves problems/improves situations, what specific benefits customers can expect, why customers should buy from you over your competitors

What are the elements of a business model canvas?

key partners, key activities, key resources, value proposition, customer relationships, customer segments, channels, cost structure, revenue streams

What is the pipe business model?

value is created upstream, customers are acquired, products are designed to meet specifications, value is given by consumption, linear channels of distribution

What is the platform business model?

value is co-created on the spot, users can become customers, products emerge through interaction, value is appreciated by interaction, multi-sided

What is the advertising model

delivers ads to customer segements; Amazon advertising and LinkedIn

What is the brokerage model

brings buyers and sellers together; Etsy, eBay

what is the infomediary model

provides 3rd party data to businesses

what is the merchant model (ecommerce)

provides various goods and services for sale; Amazon.com, Walmart.com

what is the manufacturer (direct) model

provides direct sale of own manufactured products; Dell computers

What is the affiliate model

earn incentives for bringing qualified buyers; Target Partners Program

What is the community/crowdsourcing model

connecting individuals and groups; Reddit

What is the subscription model

delivers services and content for a fee; Spotify

What is the utility model

provides services or content based on use (pay as you go); Shutterstock

What is the freemium model

offers free basic service with paid add-ons; Canva

True or false: Multisided platforms are not limited to two sides.

True

Which of the following is an important element of any business model?

value proposition

A detailed document that provides strategic guidance and aids in the acquisition of internal or external resources is called a:

business plan

True or false: Infomediaries are present only in the B2C marketspace

False

True or false: The Business Model Canvas approach is based on understanding the basic elements of a business model that can be applied in a traditional business setting.

True

True or false: "Business model" and "business plan" are not synonymous terms

True

Describe the requirements for a resilient brand

Best developed by interactive communications that build trust, strategy must consider speed, number of

communications channels, consumer experience (CX) overwhelms all

other elements

What is the future of marketing?

consumer experience (CX)

How does a marketer create a good CX?

Have a mobile-first mindset, see your customer - B2B or B2C - as a person, use analytics to know customer intimately, marketing and customer service must work

together

What are the steps in the circular customer journey?

Initial consideration set, active evaluation, moment of purchase, postpurchase experience

What are CX touchpoints?

Search Engine Visits, Retailer Visits, Brand Visits, Review Site, App Visits

What are the customer loyalty stages?

enjoy, advocate, bond

What is a pixel?

a one-pixel transparent GIF that is added to the pages of a website allowing sites to track visitor activity

What are the 3 components of CX?

emotional, accessible, functional

Truly satisfying Cx takes time and effort to achieve. As such, it is a sustainable______________ advantage.

competitive

Describe the steps in the evolution of customer service strategy

Live customer service, web-enabled customer service, self service, service via social and mobile platforms, crowd sourcing, personalized and predictive servicing

What are predictive models in customer service

can show how to push information to a customer before service is needed, can assess emotional state of customer in live

chat to predict whether person will call back

What is the ultimate customer service goal for a company?

Anticipating and delivering service and support before the customer recognizes the need

Most companies compete on what basis?

End-to-end CX

One of the most important points for businesses to achieve customer service goals is to:

never underestimate the importance of knowing your consumer.

True or false: Businesses that have a formal strategy in place to deliver personalized and consistent customer experiences across multiple channels and devices is known as multichannel marketing.

False

The modern customer journey in the digital age differs from the traditional customer journey in that:

the digital customer journey features the addition of a loyalty loop.

Which of the following is at the top of the purchase funnel?

awareness

To create seamless CX, marketers need to create a consumer journey map that:

is specific to the product and the purchase situation.

For a website, customers' care about _________________________. Companies care about __________________________

usability; traffic, audience, campaign measurement, and site performance

What is quantitative data

traffic reporting, data collected on the web, customer activities in various stages of the purchase journey, kinda structured

What is qualitative data

why are people buying this product, perception of brand value proposition, how customers talk about the product, unstructured