1 8

7-
L L
1 21
FA
s @
Managing Digitalnt
d e
Communications: t u
r S
d a
i Media,
Online, socialHa
.
.A
and rMobile.
r D
fo
E D
C T
R I
ST
R E Marketing Management, 15th ed
 1 8
17-
Chapter Questions L L
FA
s @
t
n online marketing?
1. What are the pros and consdeof
t u
(p. 637)
r S
2. How can companies acarry i d a out effective social
media campaigns? . H(p. 642)
.r A
3. What are some r Dtips for enjoying positive word of
mouth? (p.D645)f o
TE
4. What are IC important guidelines for mobile
T R
marketing? (p. 650)
E S
R
 1 8
7-
1 today as a
• Internet revolution changed marketing communications
L L
kind of personal interactive dialogue between theFA
company and its
customers. @ s
n t
d e
u
St digital marketing.
• PepsiCo has been an early champion of
r
• i
Its Mountain Dew soft drink, “Dewmocracy”d a contest had consumers go
H
online to determine the flavor, color,a packaging, and name of a new
A .
Mountain Dew product.
r .
• r D generated several hundred million dollars in
The winning flavor, Voltage,
revenue for the companyfo in its first year.
D
E Dewmocracy 2, expanded voting through Facebook,
• T
The second contest,
Twitter, and aICprivate online Dew Labs Community and crowned White Out
T R
S
as the winner.
E
R
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1 every 7-
• Doritos brand, “Crash the Super Bowl” contest
L L
FA an ad to
year, giving contestants a chance to develop
be run during the game broadcast and@receive $1
t s
million in the process. n e
u d
S t
• In 2014, anyone from Dorito’s 35aglobal r markets was allowed to
enter the competition, resulting a i din more than 3,000
submissions. . H
.r A
• The winning ad, “Time Machine,” had a man humor a small kid
by taking a ride in ther Dkid’s cardboard time machine—with
unexpected results.fo
D
Eto make and one day to film, but it was one of
• It cost only $200
C T
R I
the most positively received Super Bowl ads by viewers that
year
ST
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L L
FA
s @
n t
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.
.r A
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Online marketing L L
FA
@
s with
• Online marketing provides marketers n t
e
dinteraction and
opportunities for much greater t u
individualization through well-designed r S and
i d a
executed: Ha
A .
i. Web sites,
r .
ii. search ads, or D
f
iii. display ads, E D
and
C T
iv. e-mails. R I
ST
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17-
Online marketing L L
FA
s @
n t
d e
 Social media come in manySforms: tu
a r
i. online communities and
a i d forums,
. H
ii. blogs, and s
. A
r
D such as Facebook, Twitter, and
iii. Social networks
or
YouTube. D f
TE
IC
T R
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R
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Online marketing L L
FA
@
sopportunity to
 Social media offer marketers the n t
d e
have a public voice and presence t u online for their
brands and reinforce other r Scommunications.
i d a
a
 Marketers can build orH tap into online
A .
communities, inviting r . participation from
D
consumers andorcreating a long-term marketing
f
D
asset in the Eprocess.
T
C are rarely the sole source of
 Social media
R I
ST
marketing communications for a brand.
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Online marketing L L
FA
@
 Word-of-mouth marketing findsnways ts to engage
d e
customers so they will choose t u to talk positively
with others about products, r S services, and brands.
i d a
Ha
A .
 Viral marketing encouragesr . people to exchange
r D
online information fo related to a product or service.
E D
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Online marketing L L
FA
s @
n t
d e
 Mobile marketing is an increasingly t u important form
S
of interactive marketingidby ar which marketers can
use text messages, software Ha apps, and ads to
A .
connect with consumers r . via their smart phones
and tablets. r D
fo
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Online Marketing L L
FA
s @
n t
• The Four main categories of online marketing d e communications,
t u
Web sites, search ads, display ads, e-mail.
r S
means companies can offer orasend i d a tailored information or
messages that engage consumers . H by reflecting their special
. A
interests and behavior. Dr
or
f
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LL
Advantages of Online Marketing Communications
FA
s @
nt
• Marketers can easily trace Online effects by noting:
e
how many unique visitors or “UVs” u d click on a page or ad,
i.
S t
how long they spend with it, r
ii.
iii. what they do on it, and ai d a
iv. .H
where they go afterward
.r A
r D
fo
• Contextual placement, which means marketers can buy
D
ads on sitesErelated to their own offerings
C T
I
• place advertising
R engines.
based on keywords customers type
ST
into search
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Disadvantages of Online Marketing Communications
FA
s @
n t
d e
 Consumers can effectively screen t uout most messages.
r S
d a
i are more effective than
 Marketers may think theiraads
they really are . H
.r A
 Advertisers also lose r D some control over their online
fo
messages, which E D can be hacked or vandalized.
C T
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FA
s @
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“telephone, telegraph, and tell a woman” & the Internet,
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 Total digital ad spending in FA
2013 was $42.8 bn,
s @
n t
 it surpassed TV advertising
d e
$40.1 bn for the first time. t u
r S
 Search ads made up 43 % i d a
($18.4 bn); Ha
A .
 display-related advertisingr.30
r D
fo
% ($12.8 bn);
 mobile 17 % ($7.1Ebn);D
T
C ($2.8 bn)
 digital video R7 I%
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Online Marketing L 1 7-
AL
Communication Options
F
s @
• Which forms of online marketingenwill t be most cost-
u d
effective in achieving communication
S t and sales
objectives. a r
a i d
• The options include: A. H
r .
i. Web sites, r D
f o
ii. search ads,ED
T
iii. IC
displayRads,
S T
iv. andE e-mail.
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7 -
Online Marketing Communication Options 1
L L
Web sites FA
s @
n t
d e
• Companies must design Web u
t sites that embody or
r S
express their purpose, history, i d a products, and
Ha
vision and that are attractive . on first viewing and
interesting enough .r Ato encourage repeat visits.
r D
fo
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Online Marketing Communication Options 1
L L
Web sites FA
s @
• To encourage repeat visits, companies n t must pay
e
special attention to context tand ud content factors
r S
and constant change. da
a i
. H
• A site’s performance .r A will be judged on ease of use
r D
fo
and physical attractiveness
E D
T
C may employ microsites, individual
• CompaniesR I
WebES T
pages or clusters of pages that function as
R
supplements to a primary site.
 1 8
7 -
Online Marketing Communication Options 1
L L
Web sites FA
s @
n t
• Ease of use means: d e
• The site downloads quickly St u
a r
d
• The first page is easy to iunderstand
a
H
• It is easy to navigate .to other pages that open quickly
.r A
r D
fo
• Physical attractiveness is ensured when:
E
• Individual pagesD are clean and not crowded with content
T
C and font sizes are very readable
• Typefaces
R I
T
• The Ssite makes good use of color (and sound).
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Online Marketing Communication Options
-
Web sites 17
L L
FA
@Site
Seven Key Design Elements of an Effective Web
s
n t
1. Context. Layout and design
d e
2. Content. Text, pictures, sound, and S tu the site contains
video
a r
3. Community. How the site enables a i d user-to-user communication
H
. to tailor itself to different users or to
4. Customization. Site’s abilityA
. the site
D
allow users to personalizer
r
5. Communication. How fo the site enables site-to-user, user-to-site, or
E D
two-way communication
T
CDegree that the site is linked to other sites
R
6. Connection. I
T
ES Site’s capabilities to enable commercial transactions
7. Commerce.
R
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Online Marketing CommunicationL 1Options 7-
Search Ads AL
F
s @
• An important component of online marketing n t is paid
d e
search or pay-per-click ads. t u
• Advertisers pay only if people click r S
d a on the links, but marketers
believe consumers who haveaialready expressed interest by
engaging in search are prime . H prospects.
. A
• Average click-through D rin terms of the percentage of consumers
oris about 2 percent, much more than for
f
who click on a link
E D
comparable online display ads
T
C click depends on how highly the link is ranked on
I
• The cost per
Rand the popularity of the keyword.
ST
the page
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Online Marketing CommunicationL 1Options 7-
Search Ads AL
F
s @
• An important component of online marketing n t is paid search
d e
or pay-per-click ads. t u
r S
• Search engine optimization i d a (SEO) describes activities
H a
designed to improve. the likelihood that a link for a brand
. A
is as high as possibleD r in the rank order of all nonpaid
r
fo
links when consumers search for relevant terms.
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Online Marketing CommunicationL 1Options 7-
Search Ads AL
F
s @
n t
d e
• Broader search terms are useful t u for general brand
building; r S
i d a
Ha
.
A be spotlighted on the appropriate
• Search terms needr. to
r
pages of the marketer’sD Web site so search engines can
f o
easily identify
E D them.
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Online Marketing CommunicationL 1Options 7-
A
Display Ads or banner AdsL
F
s @
n t
e
drectangular boxes
• Display Ads or banner ads: small, t u
S
containing text and perhaps a rpicture that companies pay
d a
ai
to place on relevant Web sites.
Hhigher the cost.
• The larger the audience, the .
• Internet users spend only .r A 5 percent of their time online actually
r D
o
searching for information,
f search ads
so display ads still hold great promise
D
compared to popular
E advertisements, often with video or animation,
T
• Interstitials are
Cbetween page changes within a Web site or across
I
TR
that pop up
S
Web sites.
E
R
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L L
FA
s @
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i da
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Interstitials 17-
L L
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t u
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i da
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.
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fo
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Online Marketing CommunicationL 1Options 7-
A
Display Ads or banner AdsL
F
s @
n t
de
t u
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i da
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.
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fo
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Online Marketing Communication 1Options 7-
L L
E-mail FA
s @
• E-mail allows marketers to inform and n t communicate with
d e of a direct mail
u
customers at a fraction of the cost
t
campaign. rS a
a d
i selling tools.
• E-mails can be very productive
. H
. A
• The rate at which they r
D that of social media ads, and the
prompt purchase has been estimated to
be at least three rtimes
f o
average order
E D value is thought to be 17 percent higher
T
C are besieged by e-mails, though, and many employ
• Consumers I
Rfilters to halt the flow
spam
ST
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• Privacy concerns are also growing
 1 8
Online Marketing Communication 1Options 7-
L L
E-mail FA
s @
t
• E-mails must be timely, targeted, andnrelevant.
d e
• Give the customer a reason to respond. t u
• Personalize the content of your e-mails. r S
d a
i can’t get via direct mail.
• Offer something the customer a
Hto opt in as well as unsubscribe.
• Make it easy for customers
A .
r
• Combine e-mail with other .
r D communications such as social media.
fo
• Some researchers E D are employing “heat mapping,” which
C T
I
tracks eye movements with cameras to measure what people
read on aTR computer screen, to improve the effectiveness of
E S
their emails.
R
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FA
s @
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de
t u
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i da
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L L
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L L
FA
s @
n t
de
t u
r S
• With a customer’s a
i d
permission, flower retailer Ha
FTD sends email reminders. A.
r
for important events r D
fo
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Social Media L L
FA
@
s to share text,
• Social media are a means for consumers n t
e
d with each other and
images, audio, and video information t u
with companies, and vice versa. r S
i d a
Ha
• Social media allow marketers to establish a public voice and presence
online.
A .
r .
• They can cost-effectively reinforce other communication activities.
r Dcompanies to stay innovative and relevant.
fo
• They can also encourage
D
• Marketers can build
Eand creating a long-term marketing asset in the process.
or tap into online communities, inviting participation
C
from consumers T
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Social Media L L
FA
s @
• Social Media Platforms include: n t
d e
1) online communities and forums, t u
r S
2) blogs (individual blogs and iblog d a networks
Ha
3) social networks (like Facebook,A . Twitter, and YouTube).
r .
r D
fo
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Online Communities and Forums 1 7-
L L
FA
"family of invisible friends"
s @
n t
de
t u
r S
i da
Ha
.
.r A
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fo
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Social Media L L
FA
s @
• Online Communities and Forums "family n t of invisible friends"
d e
• Often created by consumers ortgroups u of consumers with
r S
no commercial interests or company
i d a affiliations
Ha
A .
• Others are sponsored r . by companies whose members
communicate with r Dthe company and with each other
fo
E D
through postings, text messaging, and chat discussions
T
C interests related to the company’s
I
about special
R and brands.
T
products
S
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Social Media L L
FA
s @
• Online Communities and Forums n t
e
d a valuable resource for
• Online communities and forums cantube
r S by both collecting and
companies and fill multiple functions
conveying key information. ai d a
. H
A . communities is to create individual
D r
• A key for success in online
r
fo that help form bonds among community
and group activities
members. ED
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Social Media L L
FA
s @
• Online Communities and Forums n t
de
t u
• Information flow in online communitiesr S
i d a and forums is two-way
and can provide companies witha useful, hard-to-get customer
information and insights.A. H
r .
r D
fo
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Social Media 17-
L L
Blogs FA
s @
n t
e d
• Blogs, regularly updated online u
t journals or diaries,
r S
have become an important i d aoutlet for word of mouth.
a
H with common interests.
• Blogs bring together people .
. A
• Corporations are creating
D r their own blogs and carefully
or of others.
monitoring those f
• Popular blogs D
E are creating influential opinion leaders.
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Social Media 17-
L L
Blogs FA
s @
n t
d e
• Many consumers examine product t u information and
r S
reviews contained in blogs,da
a i
• The Federal Trade Commission. H has also taken steps to
. A
require bloggers to rdisclose their relationship with
marketers whose r D
products they endorse.
f o
D
• At the otherEextreme, some consumers use blogs and
T
videos asICa means of getting retribution for a company’s
T R
E S
bad service or faulty products.
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s @
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Social Media 1 7-
L L
Social networks FA
s @
• Social networks have become anntimportant force in
d e
both business-to-consumer and t u business-to-
business marketing r S
i d a
a
• Different networks offerHdifferent benefits to firms.
A .
r
• Twitter can be an early . warning system that permits
rapid response or D
f
• Facebook allowsE D deeper dives to engage consumers in
C T
R I
more meaningful ways
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Social Media 1 7-
L L
Social networks FA
s @
n t
• Marketers are still learning how to e
d best tap into social
t u
S
networks and their huge, well-defined
r audiences
id a
• Users are generally there Halooking to connect with
A .
others—attracting attention and persuading are more
r .
challenging. D r
f o
E D
• Given that users generate their own content, ads may
C T
I
find themselves appearing beside inappropriate or even
TR material.
offensive
S
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Social Media 1 7-
L L
Social networks FA
s @
n t
• Using Social Media: only some consumers d e want to engage
t u
with some brands, and, even then, r S only some of the time
i d a
• Social media may not be as effective
a in attracting new users and
driving brand penetration.. H
. A
r to engage with media, charities, and
• Consumers are most Dlikely
or to engage with consumer goods.
fashion and least flikely
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Social Media 1 7-
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Social networks FA
s @
n t
• Using Social Media: e d
t u
• Although consumers may use social r S
i d a media to get useful
information or deals and promotionsHa or to enjoy interesting
or entertaining brand-created A . content, a much smaller
r .
percentage want use r Dsocial media to engage in two-way
f o
“conversations” Dwith brands.
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IC
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17-
Word of Mouth L L
FA
s @
• Word of mouth (WOM) is a powerful n t marketing tool,
d e
one of the most effective driverst u of its sales in some
r S
a
cases, along with unaidedidadvertising awareness.
Ha
.
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Word of Mouth L L
FA
s @
• Forms of Word of Mouth n t
e d
t u
• Most word of mouth is offline: S
r 75 percent face to face
i d a
and 15 percent over theHphone. a
A .
r .
• Viral marketing oisr Da form of online word of mouth, or
f
“word of mouse,”
E D that encourages consumers to pass
C T
along company-developed products and services or
R I
audio,STvideo, or written information to others online
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Will it blend?! 17-
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17-
LL
Creating Word-of-MouthABuzz
F
@
s those that are
• Brands discussed offline are often n t
e
deasily to mind.
salient and visible and come t u
r S
i d a
• Research has shownHthat a consumers tend to
A .
generate positiver.WOM themselves and share
information about r D their own positive
fo
consumption E D experiences.
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17-
LL
Creating Word-of-MouthABuzz
F
s @
• They tend to only transmit negative n t WOM and
d e
pass on information they heard t u about others’
negative consumption experiences. r S
i d a
Ha
.
• In deciding whether .r A to contribute to social media,
consumers can r Dbe motivated by intrinsic factors
fo
• having funDor learning,
TE
C
• extrinsic Ifactors
T
• social R and self-image considerations
E S
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 1 8
1 7-
LL
Creating Word-of-MouthABuzz
F
@
s getting a viral ad
• Advice for the state of influencer n t
d e
shared: t u
• Utilize brand pulsing so the S
r brand is not too intrusive
i d a
within the video;
Ha
• Open with joy or surpriseA . to hook those fickle viewers
r .
D
who are easily bored;
r
fo
• Build an emotional roller coaster within the ad to keep
E D
viewers Tengaged throughout;
• SurpriseIC but don’t shock—if an ad makes viewers too
T R
E S
uncomfortable, they are unlikely to share it.
R
 1 8
1 7-
LL
Creating Word-of-MouthABuzz
F
@
s for their
• Companies can help create buzz n t
d e
products or services, and media t u and advertising
are not always necessary r Sfor it to occur.
i d a
• Some believe viral marketing
Ha efforts are driven more
A .
by the rules of entertainment than by the rules of
r .
selling
r D
• The successfoof any viral or word-of-mouth buzz
campaign E D
depends on the willingness of consumers
T
to talkIC
to other consumers
T R
E S
R
 1 8
17-
LL
Creating Word-of-MouthABuzz
F
s @
• Customer reviews can be especially n t influential,
d e
but can be biased or fake tu
r S
• Research has shown thata social influence can lead to
disproportionally positive a i d online ratings, and
subsequent ratersAare . H more likely to be influenced by
r . ratings than negative ones.
previous positive
r D
fo
• Consumers posting reviews are susceptible to
D
E pressures and adopting norms of others
conformity
C T
R
• PositiveI online reviews or ratings are often not as
ST
R E
influential or valued as much as negative ones
 1 8
17-
LL
Creating Word-of-MouthABuzz
F
• Companies can try to stimulatetspersonal @ influence
channels to work on their behalf. e n
u d
• steps of starting positiver buzz: St
• Identify influential individualsi d a
H a and companies and devote
extra effort to them .
. A
• Supply key people
D r with product samples
r
• Work through fo community influential
E D
• Develop word-of-mouth referral channels to build
C T
business
R I
ST
• Provide compelling information that customers want to
R E
pass along
 1 8
Creating Word-of-Mouth Buzz 7 -
1
L L
F A
• A customer’s value to a company depends @ in part on his
or her ability and likelihood of making t s referrals and
e n
engaging in positive word of mouth u d
S t
• Rungs on the customer loyalty a r ladder (in ascending order):
• Satisfaction—Sticks with H i d
a organization as long as
your
expectations are met. A.
r .
• Repeat purchase—Returns
r D to your company to buy again.
f
• Word of mouth/buzz—Putso his or her reputation on the line to
D
E you.
tell others about
C T
R I
• Evangelism—Convinces others to purchase/join.
ST
• Ownership—Feels
E responsible for the continued success of
your Rorganization.
 1 8
Measuring the Effects of Word of 7 -Mouth
1
L L
FA
• Many marketers concentrate onsthe @ online effects
n t
of word of mouth, given the ease d e of tracking them
t u digital agencies.
through advertising, PR, and
r S
d a
iinformation or proxies for
• Through demographic Ha
.
that information and .r A cookies, firms can monitor
when customers r D blog, comment, post, share, link,
f o
D
upload, friend, stream, write on a wall, or update
a profile.CTE
R I
ST
R E
 1 8
Measuring the Effects of Word of 7 -Mouth
1
L L
FA
• More firms are setting up technologically s @ advanced
t
n tracking efforts.
central locations to direct their online
d e
• Teams might monitor blog conversations, t u
S track sentiment,
rappropriate changes to the
and, based on feedback, make
i d a
company’s marketing on its Ha Web page and elsewhere.
• The team also has to decide A .
.r when it is appropriate to
intervene in an online r D conversation and when it is not.
f
• Any post that includes o
D a query directly about the brand or
that reflects aTE misunderstanding is usually an opportunity
for the team ICto weigh in, but as one team member notes, “If
T R
they want
E S to talk about working out, we let them have that
R
conversation.”
 1 8
17-
Mobile MarketingALL
F
s @
• The Scope of Mobile Marketing
n t
e d
• Mobile device is uniquely Stied u
t to one user
• It is virtually always “on” a r given it is typically
i d
carried everywhere . Ha
. A
• It allows for immediate
D r consumption because it is
r
in effect a channelfo of distribution with a payment
system E D
T
C interactive given it allows for
• It is highly
R I
ST
geotracking and picture and video taking.
R E
 Mobile Marketing 7-18
1
L
The Scope of Mobile Marketing
L
A F
s @
• Major opportunity for advertisers n t to reach
d e
u
St
consumers on the “third screen” (TV & computer)
r
• Mobile apps can perform useful i d a functions: convenience,
social value, incentives,. Hand a entertainment etc…
. A
• Mobile coupons areDrgetting more popular.
or
f
E D
• cookies & technological advances are making it easier to
track usersCTacross their smart phones and tablets.
R I
ST
• With user privacy safeguards in place, marketers’ greater
R E
knowledge of cross-screen identities (online and mobile)
can permit more relevant, targeted ads.
 1 8
Mobile Marketing 17-
L L
Developing Effective Mobile Marketing FA Programs
s @
n t
d e
• Web experience can be very different t u than smaller
screen sizes, longer download r S times, and the lack of
i d a
some software capabilities.
Ha
.
.r A
• Marketers are wise r D to design simple, clear, and
fo
clean sites, withE D greater attention to user experience
C T
I
and navigation.
R
ST
R E
 1 8
Mobile Marketing 17-
L L
Developing Effective Mobile Marketing FA Programs
@
smessaging
• Being concise is critical with mobile n t
e
d 50 percent of the
• Mobile ad copy should occupy only t u
S
r experiences that may
screen, avoiding complex viewing
i d a
take a toll on consumers’ battery,
Ha data availability & time.
• Brands should limit their A . ads to a pair of phrases: offer &
r .
tagline.
r D
• Brands should place fo their logo in the corner of the mobile
ad frame. E D
T
Cuse at least one bright color, but no more than
• Ads should R I
two. S T
E
• CallsRto action should be highlighted with a bright color.
 1 8
Mobile Marketing 1 7-
L L
Mobile Marketing across Markets FA
@
s about mobile
• U.S. marketers can learn much n t
d e
marketing by looking overseas. t u
r S
• In developed Asian markets i d a such as Hong Kong,
Japan, Singapore, and Ha South Korea, mobile
A .
.
marketing is fast rbecoming a central component of
r D
fo
customer experiences
• In developing E D markets, high smart-phone
T
C also makes mobile marketing
penetration
R I
ST
attractive.
E
• AsRmarketers learn more about effective mobile