Untitled Quiz

Week 12: Part 2 - Creating Value: Promotions; Managing Digital Communications

• Objectives and Questions:
  • What are the pros and cons of online marketing?
  • How can companies carry out effective social media campaigns?
  • What are some tips for enjoying positive word of mouth?
  • What are important guidelines for mobile marketing?

Online Marketing

• Media Types: Paid media (company-generated advertising/publicity), Owned media (online marketing communications), Earned media (PR/word-of-mouth). Social media is key to earned media.
• Online Marketing Communication Categories: Web sites, search ads, display ads, and e-mail.

Online Marketing Communications - Advantages

• Wide Reach: Access to a global audience; expands beyond geographical boundaries.
• Cost-Effectiveness: Compared to traditional media (TV, radio, print).
• Personalization and Targeting: Segment audiences and deliver personalized content based on preferences, behaviours, or demographics.
• Measurability: Analytics tools (Google Analytics, social media insights) track performance, measure ROI, and optimize campaigns in real-time.
• Interactivity: Enables direct engagement with customers through comments, messages, surveys, & social media interactions.
• 24/7 Availability: Online content is accessible around the clock, offering constant visibility.
• Flexibility and Speed: Campaigns can be quickly adjusted in response to market trends/customer feedback.
• Enhanced Customer Relationships: Tools like email marketing, social media, chatbots.
• Variety of Platforms: Social media, search engines, email, and affiliate marketing.
• Eco-Friendly: Reduces the need for paper-based marketing, contributing to sustainability.

Online Marketing Communications - Disadvantages

• Ad clutter and reactance: Advertisers lose some control over their online messages—can be hacked/vandalized.
• High Competition
• Dependence on Technology: Relies heavily on technology and the internet, making it vulnerable to technical issues and outages.
• Privacy Concerns: Consumers have privacy concerns.
• Ad Fatigue: Frequent exposure to ads can lead to decreased effectiveness.
• Limited Reach: May not be effective in reaching older or less tech-savvy audiences.
• Security Risks: Hacking and data theft (Cyberattacks).
• Rapidly Changing Trends: Adaptation to platforms, algorithms, and consumer behaviours is required.
• Time-Intensive Management: Continuous monitoring, content updates, and interaction with customers.
• Over-Reliance on Platforms: Businesses risk losing audience access if rules/policies change.

Online Marketing Communication Options

- (1) **Web Sites:** Visitors judge sites on ease of use and physical appeal.
    -Ease of use: quick download, easily understood initial pages, easy navigation.
    -Attractiveness: clean pages, readable fonts/sizes, good use of color.
- (2) **Search ads:** Important component of online marketing—paid search or pay-per-click ads (35% of searches for goods/services).
- (3) **Display ads:** small rectangular boxes containing text/images that companies pay to place on relevant websites. Higher cost with larger audience. Interstitials are ads that pop up in between pages.
- (4) **E-mail:** Effective and cost-effective way to communicate with customers.

Social Media

• Importance: Important part of digital marketing; social media allow consumers to share information and companies to have a presence.
• Benefits: Cost-effective communication and reinforcement of other activities. Day-to-day immediacy encourages innovation.
• Online Communities: Created by consumers/groups, can be sponsored by companies (posting, messaging). Valuable resource for collecting/conveying info
• Blogs: Individual or networks (Sugar & Gawker) – a valuable resource for word-of-mouth.
• Social Networks: Facebook, Twitter, YouTube, etc.

Social Media - Using It Effectively

• Understanding that not all consumers engage.
• Handling positive & negative feedback appropriately.
• Leveraging community members for brand defense, and brand management.

Forms of Word of Mouth (WOM)

• Online vs Offline: (Online) Word of mouth is not always generated online. Face-to-face, over the phone, and viral marketing are other forms.

Mobile Marketing

• Characteristics of mobile devices: Uniquely tied to one user, always "on", supports immediate consumption, and is highly interactive.
• Advantages for marketers: Reach consumers through advertisements/apps/interstitials.

Developing Effective Mobile Marketing Programs

• Mobile ad copy: Occupy only 50% of the screen, limit to offer/tagline, include logo, use one or two bright colors, highlight call-to-actions.