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Overview of Chapter 17: Digital Online Social Media and Mobile Marketing

  • The session begins with a brief overview of the agenda for Chapter 17, focusing on digital, online, social media, and mobile marketing.
  • Class activities include:
      - Group breakouts ungraded discussion about the chapter.
      - Opportunity for marketing teams to plan during or after class.
  • First draft of marketing plans is due in a week, non-graded to assess progress.
  • Final PowerPoint presentations will be due on the last day of class with final exams.

Importance of Digital Marketing

  • The session acknowledges the nearing end of the semester and shifts focus to the key topic: digital marketing.
  • Emphasizes that this is the fourth chapter dedicated to the promotional element of marketing.
  • Coca-Cola is mentioned as an example of an old brand successfully utilizing modern social media tools.
      - Their mission of refreshing the world and making a difference is reflected in their online presence.
  • Noted that Carthage offers a course in social media marketing due to growing demand for jobs in this field.

Definition and Functionality of Digital Marketing

  • Digital and direct marketing involve engaging with targeted consumers for immediate responses and building lasting relationships.
  • Examples include:
      - Amazon: Extensive variety of products available and utilized by individuals for various needs, including travel arrangements.
      - GEICO: Once exclusive to government employees, now advertised widely to the general population.

Characteristics of the New Direct Marketing Model

  • Digital marketing has become a vital business model for many companies, with many operating primarily online (e.g., Orbitz, Trivago).
  • Traditional companies like Coca-Cola and GEICO are also heavily investing in online strategies.

Growth Trends in Digital Marketing

  • Rapid growth in digital marketing is highlighted, with a notable shift from traditional advertising (TV, Radio).
      - More marketing budgets are being allocated to social and digital platforms than ever before.
  • Gillette faced competition from companies like Harry's and Dollar Shave Club, which started online, prompting Gillette to adapt rapidly.
  • Digital marketing benefits include:
      - Convenience for consumers.
      - Access to comparative information.
      - Two-way interaction between consumers and marketers.

Success Stories of Online Brands

  • The Moon Pie, an old brand, has successfully leveraged online engagement strategies which has led to increased sales volume.
  • Companies like Gillette utilize various marketing mediums (online, print, retail) while also facing increased market clutter.

Benefits of Digital Marketing

  • Digital marketing is low-cost, flexible, and provides an alternative to reaching unreachable consumers.
  • Importance of omnichannel retailing is underscored with Home Depot as an example:
      - Seamless shopping experiences across in-store, online, and mobile engagements.
  • Marketing messages need to be consistent across all channels.

Online Marketing Strategies

  • Marketing through company websites, email promotions, online videos, and the rise of blogs as powerful marketing tools.
      - Emails: Sending highly targeted, personalized messages; caution against unsolicited "spam" emails, which originated from Monty Python's comedic routines.
      - Viral Marketing: Relies on consumer-driven content sharing, e.g., the ALS Ice Bucket Challenge.
  • Blogs: Online journals where brands engage consumers to create community around their products (e.g., Disney and Starbucks blogs).

Social Media Marketing

  • Advantages include immediate engagement and cost-effectiveness compared to traditional media.
      - Primary platforms include Facebook, Instagram, LinkedIn, and others.
      - Emphasis on leveraging platforms for customer engagement.

Challenges in Digital Marketing

  • Marketers face challenges such as marketplace saturation and the potential for campaigns to backfire (e.g., inappropriate names in consumer-driven contests like Frito Lay).
  • They must earn the right to engage with consumers; relevance and interaction are critical.

Direct Mail and Telemarketing

  • Direct Mail: Involves sending physical mail; former effectiveness is waning in the digital age.
  • Telemarketing: Still in use, but often intrusive; inbound telemarketing is advantageous for customer queries.

Consumer Awareness and Privacy Concerns

  • As companies gather extensive data on consumers (demographics, buying habits), there's a growing need for policies protecting consumer privacy.
  • Examples of regulations: GDPR and COPPA.
      - Concerns about scams targeting consumers, necessitating vigilance from consumers.

Wrap-up and Group Discussions

  • Instructor encourages group discussions to engage with the material further.
  • Assignment of small group tasks to discuss how marketers can effectively use social media and mobile marketing to connect with customers, with specific questions to guide discussions.