Chapter 17 - Digital, Online, Social Media, and Mobile Marketing

Direct and Digital Marketing

Overview
  • Direct and digital marketing involve engaging directly with targeted individual consumers and customer communities. Example: A local bookstore sends personalized email recommendations to customers based on their past purchases.

  • Aims to obtain an immediate response and build lasting customer relationships. Example: Amazon's 'Buy Now' button encourages immediate purchases and builds lasting relationships through personalized recommendations.

The New Direct Marketing Model
  • For many companies, direct and digital marketing constitute a complete model for doing business. Example: Companies like Warby Parker started as online-only businesses, utilizing direct marketing to reach customers.

Rapid Growth
  • Direct and digital marketing have become the fastest-growing form of marketing. Example: The rise of e-commerce platforms like Shopify demonstrates the rapid growth of digital marketing.

  • Direct marketing is increasingly Internet-based. Example: Catalog companies shifting to online platforms.

  • Digital direct marketing is claiming a surging share of marketing spending and sales. Example: Increased spending on social media ads shows how marketing budgets are shifting to digital channels.

Benefits of Direct and Digital Marketing
Buyers
  • Convenience Example: Online shopping provides a convenient way to purchase items from home.

  • Ready access to many products Example: Amazon offers a vast selection of products accessible to anyone with internet.

  • Access to comparative information about companies, products, and competitors Example: Comparison websites like ComparetheMarket that gather information about companies.

  • Interactive and immediate Example: Live chat support offers immediate assistance and enables interactive engagement.

Sellers
  • Tool to build customer relationships Example: Personalized email marketing campaigns help build strong customer relationships.

  • Low-cost, efficient, fast alternative to reach markets Example: Social media advertising provides a cost-effective way to reach a large audience quickly.

  • Flexible Example: Digital campaigns can be easily adjusted based on real-time performance data.

  • Access to buyers not reachable through other channels Example: Reaching customers in rural areas through online advertising.

Digital and Social Media Marketing

Definition
  • Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs. Example: Using Facebook ads to promote a new product.

  • Engaging consumers anywhere, anytime via their digital devices. Example: Sending push notifications through a mobile app to remind users of special offers.

Omni-Channel Retailing
  • Creates a seamless cross-channel buying experience. Example: Target allows customers to order online for in-store pickup.

  • Integrates in-store, online, and mobile shopping. Example: Retailers like Nordstrom offer a consistent brand experience across all channels.

  • Creates a single shopping experience. Example: Disney provides a unified experience through its parks, online store, and mobile app.

Online Marketing
  • Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs. Example: A company runs banner ads on websites to drive traffic to their online store.

  • Marketing Web sites engage consumers to move them closer to a direct purchase or other marketing outcome. Example: E-commerce sites with clear calls-to-action encouraging purchases.

  • Branded community Web sites present brand content that engages consumers and creates customer community around a brand. Example: Nike's website offers fitness tips, product info, and a community forum for fitness enthusiasts.

Online Advertising
  • Advertising that appears while consumers are browsing online. Example: Display ads on news websites.

  • Includes display ads, search-related ads, online classifieds, and other forms. Example: Google AdWords campaigns.

Email Marketing
  • Involves sending highly targeted, highly personalized, relationship-building marketing messages via e-mail. Example: Sephora sends personalized product recommendations to its email subscribers.

  • Spam: Unsolicited, unwanted commercial e-mail messages. Example: Receiving unsolicited emails for products you never signed up for.

Online Video Marketing
  • Involves posting digital video content on brand Web sites or social media sites such as YouTube, Facebook, and others. Example: Dove's "Real Beauty" campaign utilizes emotional video content to connect with audiences.

Viral Marketing
  • The digital version of word-of-mouth marketing. Example: The Old Spice commercials became viral due to their humor and shareability.

  • Videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends. Example: The Ice Bucket Challenge raised awareness for ALS through viral sharing.

Blogs
  • Online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics. Example: HubSpot's blog provides marketing and sales advice to its audience.

Social Media and Mobile Marketing

Social Media Marketing Advantages
  • Targeted and personal Example: Facebook allows you to target ads based on demographics and interests.

  • Interactive Example: Brands can engage with customers directly through comments and messages.

  • Immediate and timely Example: Companies can quickly respond to customer inquiries on Twitter.

  • Real-time marketing Example: Oreo's "You can still dunk in the dark" tweet during the Super Bowl blackout.

  • Cost effective Example: Running a social media campaign can be cheaper than traditional advertising.

  • Engagement and social sharing capabilities Example: Users can like, share, and comment on content, amplifying its reach.

Mobile Marketing
  • Delivers messages, promotions, and other content to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices. Example: Sending promotional SMS messages to customers.