L7: Marketing (Online) Flashcards Preview

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Flashcards in L7: Marketing (Online) Deck (21)
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1

Implications of the Internet for communication decisions (Hollensen, 2013)

- Different communication tools are used throughout the customers’ buying process.
- It is easier to communicate a message to large numbers of people. But, it is harder for firm's message to be heard above the noise by your target audience.

2

Social media MKT (Hollensen, 2013)

- A group of Internet-based applications that allow the creation and exchange of user-generated content.
- Blogs, social networking sites, online review/rating sites, virtual game worlds, video sharing sites and online communities

3

Two promotional roles of social networking (Mangold and Faulds, 2009)

- Consistent with the use of traditional IMC tools.
- Enable customers to talk to one another: this ability limits the control of companies over the content, timing, and dissemination of information.

4

Four different communication styles (Hollensen, 2013)

1) Traditional one-way advertising
2) Customer-driven interaction: account managers take care of the 1-1 interaction with the customers.
3) Viral MKT: use Internet medium to attract attention and build brand awareness. The interaction of ‘customers’ is quite high but the feedback to the company is low.
4) Social media MKT: the co-player in the discussion on the different relevant social media sites. It strengthens (+) interaction with customers to influence their behaviour. => A back-up team to interact with customers.

5

The 6C model of social media marketing (Hollensen, 2013)

1) Company and Content: Company push content
2) Control: it is free to be taken, modified, commented by community. Firms still needs to control brand image.
3) Community: Communication becomes bidirectional. Firms target the ‘market mavens’ to diffuse content.
4) Customers and onl Conversation: Company learn about consumer behaviour. Social media extend conversations through a feedback loop, and influencing buy decisions.

6

Developing a viral marketing campaign (Hollensen, 2013; Kaplan and Haelein, 2011)

- Right message: trigger emotion and true stories / positive rumor. visibility or simplicity of idea.
- Right circumstances: seeding, entry timing and lucky.
- Right people: the right audience + market mavens, social hubs, sales people.
- Campaign seeding: via email/SMS, online forums, social networks, chatroom environment, blogs and podcast.

7

New trend of consumers (Mangold and Faulds, 2009)

- Consumers are conducting information searches and making purchasing decisions, since social media is a more trustworthy source of product information than corporate-sponsored communications.
- Consumers are turning away from the traditional sources of advertising. They demand more control over their media consumption. They require on-demand and immediate access to information

8

How to shape the discussions in social media (Mangold and Faulds, 2009)

1) Networking platforms: communities of like-minded ppl.
2) Blogs and other social media tools: submit feedback.
3) Traditional and Internet-based promotional tools: onl vote, brand sponsored contest, loyalty program.
4) Provide information: talk about companies and products when they think they have more knowledge.
5) Be outrageous: Burger King - unfriend FB
6) Provide exclusivity: special offerings that are available to only a subset of customers
7) Design products with talking points (easy to remember) and consumers’ desired self images in mind.
8) Support causes that are important to consumers
9) Utilize power of stories: memorable stories

9

Generation Y definition (Bolton et al., 2013)

- Born in 1981 - 1999.
- Early and frequent exposure to technology.
- Rely heavily on technology for entertainment, to interact with others, and for emotion regulation.
- Experiencing long periods of economic prosperity and rapid advance in telecommunication technology.
- “Want it all” and “Want it now".
- “Peter Pan Gen”: tendency to delay entering adulthood.
- More skeptical, blunt, and impatient due to being raised in information transparency and instant technology.

10

Key reasons for Gen Y to use social media (Bolton et al., 2013)

- A need to interact with others - socializing and experiencing a sense of community.
- A place for information, leisure or entertainment.
- Most users consume rather than contribute content to social media.

11

Environmental factors affect Gen Y’s social media use (Bolton et al., 2013)

1) Economic: disposable income, employment opportunities, consumer confidence > Affordability.
2) Technology: Gov policies about investments in technology infrastructures.
3) Cultural: Shaped by cultural context like collectivistic / individualistic. Gov may encourage homogeneity.
4) Legal/Political: Gov deregulate telecommunication markets can contribute to faster adoption and more intense use of social media. Countries with restrictions on freedom of expression control civic engagement.

12

Individual factors affect Gen Y’s social media use (Bolton et al., 2013)

- Socio-economic status (reflected by education, income and other markets of societal standing)
- Personal values/preferences
- Age/lifecycle stage.

13

Consequences of social media usage to individual consumers (Bolton et al., 2013)

* Pros:
- The formation and maintenance of social capital: identity shaping and relationship nurturing.
- Physical well-being: communicating health information
* Cons:
- May affect psychological, emotional and physical well-being and social development.
- Loss of privacy

14

Consequences of social media usage to firms (Bolton et al., 2013)

* Pros:
- Strengthen brand equity and increase CLV.
- Source of market intelligence: collect market information.
- Strengthen customer relationships.
- Customer-employee interactions in hiring, motivating.
* Cons:
- Invasion of privacy when collecting personal information for HR, and affect employee's health.
- Managing workers and customers is difficult due to their different attitudes and approaches.

15

Consequences of social media usage to society (Bolton et al., 2013)

* Pros:
- Disseminate positive information to communities.
- May change in social norms and behaviour at societal level like civic and political engagement, privacy and public safety.
- Peer-to-peer communities constitute a form of cultural citizenship.
* Cons:
- Humans experience negative emotions (anger, jealousy, hatred) and behave offline and online accordingly.
- Unethical consequences: young people lying online.

16

Planning for online communication - Online advertising channels (Lee and Carter, 2012)

Direct email (subscription and enriched email), Banner advertising, Interactive TV advertising (TiVo), Wireless devices, DVD technology.

17

Planning for online communication - Sales promotion (Lee and Carter, 2012)

- Encourage product trials: sending samples
- Encourage repeat purchase: use information to encourage them buy similar products via mail.

18

Planning for online communication - Publicity (Lee and Carter, 2012)

- Ensure that their domain names are listed in all the relevant search engines.
- Print internet access details on their conventional promotional materials, including catalogues, flyers, business cards, letterheads, and compliment slips.
- Write personally to the relevant internet magazines and newspapers for a review of the firm.

19

Planning for online communication - Personal selling (Lee and Carter, 2012)

- Have the potential to revolutionize the process of selling by eliminating the sales personnel (face-to-face oral conversation) while interacting with millions of customers at the same time.
- Example: ATM and Internet banking.

20

Internet (Cateora et al., 2012)

- The use in B2B communications and promotion via catalogs and product descriptions is gaining popularity.
- Major limitation of consumer goods on the Internet is coverage. Only temporary as new technology allows access to Internet via TV or personal computers.
- New limitations: pay-per-view, taxes, unfair competition, import duties, and privacy.

21

Mobile phone applications (Cateora et al., 2012)

- Allow consumers to ask questions and marketers deliver answers in new ways.
- EX: Google Trader is text-based system that matches buyers and sellers of agricultural product and commodities.