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.