Digital Business and E-commerce Chapter 1

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Questions and Answers

What is one example of offline, owned media?

Feeds

Videos

Blogs

Brochures (correct)

How many users can be reached globally through online media?

Over 100 million users

Over 1 billion users (correct)

Over 500 million users

Over 5 billion users

What is one potential risk of a transactional site?

High operating costs

Slow website loading

Lack of product information

Security attack (correct)

What is one cost/efficiency driver of e-commerce?

Increasing speed with which supplies can be obtained Signup and view all the answers

What is one competitiveness driver of e-commerce?

Improving the range and quality of services offered Signup and view all the answers

Why might a business use e-commerce to avoid losing market share?

Because its competitors are already using e-commerce Signup and view all the answers

What is the main difference between traditional businesses and digital businesses?

Their communication approaches Signup and view all the answers

According to Andy Grove, what is the equivalent force of the Internet in business?

A typhoon force Signup and view all the answers

What is the primary goal of content marketing?

To engage customers and prospects Signup and view all the answers

What is the Zero Moment of Truth (ZMOT)?

The moment when a customer searches for product information Signup and view all the answers

What is the primary focus of social media marketing?

Listening to customers and sharing content Signup and view all the answers

Which platform is most important for consumer audiences in social media marketing?

Facebook Signup and view all the answers

What is the primary goal of inbound marketing?

Attracting customers through content and search Signup and view all the answers

What is the main difference between inbound marketing and outbound marketing?

The customer's proactive approach Signup and view all the answers

What is the primary focus of a brand-building site?

To support the brand by developing an online experience Signup and view all the answers

What is the main objective of digital marketing?

To achieve profitable acquisition and retention of customers Signup and view all the answers

What is earned media traditionally known for?

Generating publicity through PR Signup and view all the answers

What type of media is a company's own website an example of?

Owned media Signup and view all the answers

What is the primary goal of retention in digital marketing?

To deliver integrated, targeted communications Signup and view all the answers

What is an example of a portal or media site?

A news or entertainment website Signup and view all the answers

What is paid media used for?

To invest in online advertising Signup and view all the answers

What is the focus of digital marketing in terms of customer communication?

Targeted communications through e-communications Signup and view all the answers

What type of social network is Wikipedia similar to?

Social knowledge Signup and view all the answers

What is the primary purpose of a transactional e-commerce site?

To enable online purchasing of products Signup and view all the answers

What is the main difference between digital business and e-commerce?

Digital business is focused on internal processes, while e-commerce is focused on external sales Signup and view all the answers

What type of website is Twitter an example of?

Social news Signup and view all the answers

What is the purpose of a services-oriented relationship-building website?

To stimulate purchase and build relationships Signup and view all the answers

What is the relationship between intranets, extranets, and the Internet?

Intranets are for internal use, extranets are for partners, and the Internet is for public use Signup and view all the answers

What is the main difference between company user-generated content and community, and other types of social presence?

Company user-generated content and community is integrated into product content Signup and view all the answers

What is the primary purpose of a social knowledge network like Yahoo!Answers?

To solve problems and show how products have helped others Signup and view all the answers

Study Notes

Media Types and Marketing Strategies

Offline, owned media includes traditional assets like brochures or printed advertisements.
Online media has the potential to reach billions of users globally, given the vast internet connectivity and user base.
A transactional site poses risks such as data breaches or fraudulent transactions, leading to financial loss and customer trust issues.
E-commerce efficiency drivers encompass reduced operational costs, leveraging technology for streamlined processes.
Competitiveness drivers in e-commerce include enhanced customer experience, personalized services, and broader market reach.

Business Dynamics and Digital Strategy

E-commerce helps businesses avoid losing market share by enabling scalability and improving accessibility to products and services.
Traditional businesses often focus on physical presence, while digital businesses prioritize online interactions and operations.
According to Andy Grove, the Internet acts as a force comparable to the industrial revolution, transforming business operations and strategies.

Marketing Focus and Objectives

Content marketing primarily aims to engage and inform customers while building brand loyalty.
The Zero Moment of Truth (ZMOT) refers to the critical point when consumers research a product before making a purchase decision.
Social media marketing focuses on building brand awareness and facilitating customer engagement.
Facebook stands out as the most crucial platform for reaching consumer audiences in social media marketing.
Inbound marketing seeks to attract customers through valuable content and experiences rather than interruptive advertising.

Digital Marketing Goals and Differences

The primary focus of a brand-building site is to establish and maintain a strong brand identity and connection with consumers.
The main objective of digital marketing is to connect and engage customers through various online channels.
Earned media is traditionally associated with organic reach through customer interactions and mentions, rather than paid promotion.
A company’s own website exemplifies owned media, providing a direct line of communication with customers.
Retention in digital marketing focuses on maintaining existing customers through personalized experiences and loyalty programs.

E-Commerce and Digital Presence

An example of a portal or media site could be platforms like news aggregators or streaming services.
Paid media is utilized for advertising campaigns aimed at driving traffic and generating leads.
Digital marketing emphasizes direct, timely communication with customers across multiple platforms.
Wikipedia functions as a social network emphasizing user-generated content with collaborative knowledge-sharing.
A transactional e-commerce site primarily serves to facilitate online purchases, ensuring smooth checkout experiences.

Relationship Between Digital Entities

Digital business encompasses broader online operations, while e-commerce is specifically focused on online buying and selling transactions.
Twitter is an example of a microblogging website, facilitating short, real-time communication.
A services-oriented relationship-building website aims to enhance customer connections and support through various online services.
Intranets and extranets are internal and external company networks, respectively, while the Internet serves as the global network interconnecting all types of users.
Company user-generated content typically differs from community content by being directly controlled by the brand, while community content is more organic and varied.
Social knowledge networks like Yahoo! Answers serve to facilitate user interactions and shared information among users seeking answers and solutions.

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Description

This quiz covers the introduction to digital business and e-commerce, including its meaning and scope, reasons for adoption, and ongoing business challenges. It also explores the impact of electronic communications on traditional businesses.