Chapter 10 Digital Marketing and Social Networking 10 1 Growth and Benefits of Digital Marketing Digital Media electronic media that function using digital codes media available via computers cellular phones smartphones and other digital devices Digital Marketing all digital media including the internet and mobile and interactive channels to develop communication and exchanges with customers E Marketing the strategic process of distributing promoting and pricing products and discovering the desires of customers using digital media and digital marketing o Allows firms greater opportunity to reach previously inaccessible markets o Allows customers and marketers to share information o Women send a greater number of texts and have a greater amount of social media o E marketing has improved prompt communication o Offers inexpensive communication channels o Online stores can support traditional brick and mortar stores o E marketing offers five distinct characteristics that distinguish it from traditional usage marketing 10 2 The Interactivity of Social Media The one sided communication common to traditional marketing channels is being replaced by interactive conversations between customer and marketer Consumers can form relationships with each other as well as with the company 10 3 Types of Consumer Generated Marketing and Digital Media Social media is more consumer driven than traditional media Consumers are creating and reading consumer generated content more than before 10 3A Social Networks Social Network a web based meeting place for people that allows users to create a profile and connect with other users for the purposes that range from getting acquainted to keeping in touch to building a work related network Social networks have brought in an influx of advertising dollars for network owners and a large reach for the advertiser that uses the site Facebook o Users create profiles and then search the network for people with whom to connect o Marketers can take advantage of the free publicity that Facebook offers o Useful for relationship marketing o Much like Facebook allows users to promote music o Offers aspiring artists to demonstrate their talent making the site the largest artist Myspace community on the web Twitter o A mix of social networking and micro blogging that asks viewers what s happening o Users can post up to 140 characters and users that are following can read the message o Twitter is being used to create publicity and enhance customer service 10 3B Blogs and Wikis Blogs web based journals in which writers can editorialize and interact with other users o Bloggers can post whatever opinions they like about a company or its products o Blogs represent a threat as well as an opportunity to businesses Wiki a type of software that creates an interface that enables users to add or edit the content of some types of websites 10 3C Media Sharing Sites Allow marketers to share photos videos and podcasts but are limited in scope in how companies interact with consumers Less personal than social networking sites User created videos appear more authentic and create enthusiasm for the product among consumer participants Podcasts audio or video files that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers 10 3D Virtual Sites 10 3E Mobile Devices Virtual realities are user created three dimensional worlds that have their own economies and currencies lands and residents who come in every shape and size Allow businesses to reach consumers in a way that is creative and fun Smartphones mobile computing devices and tablet computers all allow customers to leave their desktops and access digital networks from anywhere Mobile marketing has proven effective in grabbing consumers attention 10 3F Applications and Widgets Applications offer convenience and cost saving to the consumer QR codes are black and white squares that sometimes appear in magazines posters and storefront displays Smartphone users that have a QR scanner can scan the QR code which opens a hidden message accessible through the app Allow customers to pay through their smartphones Widgets are small bits of software on a website desktop or mobile device that enables users to interface with the application and operating system 10 4 Changing Digital Media Behaviors of Consumers Consumers can share information and experiences without company interference Consumers have a greater ability to regulate the information that they view as well as the rate and sequence of their exposure to that information Because consumer generated content appears more authentic than corporate messages it can go farther in increasing a company s credibility 10 4A Online Consumer Behavior Social networks come and go in popularity very quickly this makes utilizing their power a constant process of updating The Social Technographics Profile developed by Forrester Research groups the online community into seven segments according to how they interact with new digital media 1 Creators consumers who create their own media outlets such as blogs videos etc 2 Conversationalists regularly update feeds or statuses on social networking sites 3 Critics comment on blogs or post ratings and reviews 4 Collectors gather information and organize content generated by critics and creators 5 6 Spectators read what other consumers produce but do not create any content Joiners new users to a social network site themselves Inactive do not participate in online activities 7 10 5 E Marketing Strategy 10 5A Product Considerations Brick and clicks is an increasingly more popular form of business that involves a physical store location as well as an online store Digital media provide an opportunity to add a service dimension to traditional products and create new products that could only be accessible on the internet Some companies now use online advertising campaigns and contests to help develop better products 10 5B Distribution Considerations Distribution involves a push pull dynamic the firm that provides a product will push to get that product in front of the consumer while at the same time connectivity aids those channel members that desire to find each other the pull side of the dynamic Many online sites offer the option to promote a company s advertisement for a fee Digital promotions all attempt to increase brand awareness and market to consumers Digital online media marketing
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