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6. Social commerce: this is an evolution of e-commerce, using social media and consumer

interactions to facilitate online sales. Customers chat about product online while they are

shopping and post products they like on sites like Pinterest.

What is the impact of e-marketing at the individual, community, business, and societal levels?

The Internet affects the way many individuals work, communicate, and consume. Through the

internet, consumers compare product features and prices, read product reviews from other

consumers, bring music, movies, and other types of entertainment directly to their PCs, iPads, and

televisions, and, finally, communicate through e-mail, internet-based telephone services,

collaborative software.

Strangers in countries worldwide form online communities to discuss a variety of things, facilitated

by the Internet. Companies and consultants gain exposure to customers on blogs, which are online

diaries or journals. Finally, independent, private communities have formed around peer-to-peer file

sharing. Individuals upload, share, and collaborate on documents and files at Google Docs and

Dropbox from far away geographic locations.

Employees work together in cross-functional teams worldwide using computer networks to share

and apply knowledge for increased efficiency and profitability. Human resources personnel use the

Internet for electronic recruiting and training.

Digital information enhances economies through more efficient markets, more jobs, information

access, communication globalization, lower barriers to foreign trade and investment.

The Internet is having a huge, but unequal, worldwide impact on various societies. Easy computer

networking on mobile devices from any locations means that work and home boundaries are

becoming indistinct. Although this option makes working more convenient, it may encourage more

workaholism and less time with friends and family.

Finally, the problems of spam, online fraud, and computer viruses slow down the positive impact of

the Internet and e-marketing.

Explain with examples the ways in which online engagement is becoming analogous to offline

experience marketing.

Engagement occurs when Internet users connect or collaborate with brands, companies, or each

other. Engagement is becoming analogous to offline experience marketing because online marketers

engage users by enticing them to participate in their content or media, like offline marketers do.

One way to engage online users is through Crowdsourcing, that is the practice of outsourcing ads,

product development, and other tasks to a people outside the organization. For example, software

developers ask users to test beta versions of Web sites or next-version software and suggest

improvements. Customer engagement via crowdsourcing also involves consumers uploading videos

or photos, posting comments on a blog, becoming a fan of the brand’s Facebook page.

Inventors also ask consumers to help fund new products through sites such as Kickstarter (called

crowdfunding).

Engagement is important to companies because when buyers are engaged with a company’s content,

they feel more favourable toward the brand.

In addition to crowdsourcing, marketers use their own content to engage users online. Content

marketing is a strategy involving creating and publishing content on Web sites and in social media.

Describe the important Internet properties that affect marketing.

The Internet has properties that create opportunities beyond those possible with the telephone,

television, postal mail, or other communication media. These Internet properties allow for more

effective and efficient marketing strategy and changed the way marketing is conducted. E-business

and e-marketing opportunities given by the Internet’s properties are:

1. lower costs: reach customers at a much lower cost than with traditional marketing methods.

2 2. Trackable, measurable results: obtain detailed data about customer responses to marketing

campaigns.

3. Global reach: access new markets across the globe.

4. Personalization: connecting a database to a Web site allows for individually targeted offers.

5. One-to-one marketing: gain instant access to individual customers on computers and mobile

phones.

6. More interesting campaigns: use creative multimedia content to engage customers.

7. Better conversion rates (increased purchases): online customers are only a few clicks from a

purchase, whereas when offline they must make a phone call or visit a store.

8. Twenty-four-hour marketing: allows 24/7 access to the firm’s products and services, even

when the office is closed.

What is the difference between inbound and outbound marketing?

Inbound marketing strategies are about inciting consumers to find companies online. Customers no

longer appreciate marketing messages that interrupt them from what they are doing. Inbound

marketing means getting found online, as opposed to interrupting customers with outbound

marketing to get them to pay attention to the ads, Web sites, and products. So the components of

inbound marketing are content (e.g. blogs, videos, eBooks), social networks (e.g. Twitter,

Facebook), and search engine optimization techniques to help get the social media or Web site come

up on first page of results for a keyword search.

The success of inbound marketing’s social media tactics is monitored through the amount of

conversation about a topic for a specific time period, the number and growth of fans, friends, or

followers, and “likes” on a social network page, number of ratings, reviews, subscriptions.

Understand the distinction between information or entertainment as data and the

information-receiving appliance used to view or hear it.

Digital media are simply data that can be sent to viewers in different ways. These data are sent by

their creators through satellite, telephone wires or cables to the user’s receiving appliances such as

televisions, PCs, radios, smartphones and others. The receiving appliance is separate from the

media type. In other words, watching television doesn’t mean view television programs because we

can also watch YouTube videos on television via Wi-Fi connection. Computers can receive digital

radio and television transmissions, and television sets can receive the Web and satellite radio

content.

What are the key elements of Web 2.0?

1. Internet adoption and online retail sales mature.

2. Search engines are now reputation engines: relevance is one of Google’s search algorithm

variables.

3. Decline of print media.

4. Online fund-raising increases: marketers use the Internet to raise funds for political

campaigns (nonprofits also do this). Kickstarter allows inventors to raise funds from users

for innovative new products (crowdfunding).

5. Location-based services: many companies use the smartphone’s GPS (Global Positioning

System) feature to provide local search, such as Google local search.

6. Everything is faster: users are overloaded with entertainment and information opportunities

and marketers need to be fast to gain their attention.

What are the key elements of Web 3.0?

There was a transition from Web 1.0 (content creator makes a Web page and the content consumer

views it) to Web 2.0 (every user is both content creator and consumer and they share with one

another) and Web 3.0 (individual data presented and shared as desired).

3

The semantic Web is an extension of the current Web, which carries text documents, photos,

graphics, and audio and video files fixed in Web pages that search engines try to index for users.

The semantic Web will make the search easier by providing a standard definition protocol so that

users can easily find information based on its type, such as a person’s name, the next available

appointment for a particular doctor (found by searching the doctor’s database), details on an

upcoming concert, the hours of the library, the menu at the local restaurant. The value of the

semantic Web is truly information on demand. Some data are available this way now, such as flight

delays, but consumers must sign up to receive these. Other data arrive automatically, such as text

messages, e-mail, and Facebook comments or friend requests. However, these data all arrive from

the source with no distinction between what the user wants or doesn’t want to receive. With the

semantic Web, consumers will define tasks for their personal digital agents, which will search for

pieces of data and return them as movies to the television set, appointments to the smartphone

calendars, contact information to the address book, and more.

The key elements of Web 3.0 are increase of wireless networking, wearable Internet devices, big

data, and cloud computing.

4 2 Strategic E-Marketing and Performance Metrics

Strategic planning is the process of developing and maintaining a strategic fit between the

organization’s goals and capabilities and its changing market opportunities. Part of this process is to

identify the company’s goals, such as growth, competitive position, geographic scope (local or

multinational), other objectives.

Is strategy concerned with how a company achieves its objectives, or with what its goals are?

Strategy is the means to achieve a goal. It is concerned with how the company will achieve its

objectives, not what its goals are. For example, the company sets its growth and other objectives

and then decides which strategies it will use to accomplish them. The tactics are detailed plans to

implement the strategies.

What are performance metrics? What components does a company emphasise prior to

designating performance metrics?

The e-marketing plan is normally a part of an organization’s overall marketing plan. It starts with

the business environment, where legal, ethical, technological, competitive, market-related and other

environmental factors external to the company create both opportunities an threats. Organizations

make SWOT analyses to discover what strengths and weaknesses they have to deploy against

threats and opportunities. Organizations select e-business models, and then marketers formulate

strategy and create marketing plans that will help the firm accomplish its overall goals. The final

step is to determine the success of the strategies and plans by measuring the results. Performance

metrics, also called key performance indicators (KPIs), are specific measures designed to evaluate

the effectiveness and efficiency of the e-business and e-marketing operations.

What is e-business strategy?

E-business strategy is the design of a business strategy to capitalize on technologies for reaching

specified objectives that improve performance and create sustainable competitive advantage. When

corporate-level (also called enterprise-level) business strategies include information technology

components (social media, digital data, databases, etc.), they become e-business strategies.

Define e-marketing strategy and explain how it is used.

E-marketing strategy is the design of marketing strategy that uses information technology to reach

specific objectives.

Does an e-business model include only online models? No

A business model is a method by which the organization sustains itself in the long term and includes

its value proposition for partners and customers as well as its revenue streams.

What makes a business model an e-business model is the use of information technology. For

example, the Internet allows education, music, video, and software firms to deliver their products

online, thus creating a new distribution model that cuts costs and increases value.

E-business models can capitalize on digital data collection and distribution techniques without using

the Internet. For example, when retailers scan products and customer data or reward cards at the

checkout, these data can become a rich source of knowledge for inventory management and

promotional offers – e-marketing without the internet.

The value proposition involves knowing what is important to the customer or partner and delivering

it better than other organizations. Value involves the customer’s perceptions of the product’s

benefits, specifically its attributes, brand name, and support services. Subtracted from benefits are

the costs involved in acquiring the product, such as money, time, energy, and psychic costs.

5 Value = Benefits – Costs

E-business strategies help organizations to decrease internal costs and they can also increase the

enterprise revenue stream.

What components are critical to evaluating the fit of a business model for a company and its

environment?

These components are:

1. customer value: the model must create value through its product, that is differentiated from

that of its competitors;

2. scope: markets must be growing and the company must serve these markets;

3. price: the company’s products prices must achieve company share and profit objectives;

4. connected activities: the company must have the capability to create the value;

5. implementation: the company must have the ability to actually make it happen, which

involves the firm’s system, people, culture, and so on;

6. capabilities: the company must have the resources (finance, core competences, etc.) to make

the selected models work;

7. sustainability: the e-business model is particularly appropriate if it can create a competitive

advantage over time. It mustn’t be difficult to imitate, and the environment must be

attractive for maintaining the model over time.

What is the difference between the four levels of commitment to e-business?

A key element in setting strategic objectives is to decide the level of commitment to e-business in

general and e-marketing in particular. The possible levels of commitment are represented into a

pyramid because fewer businesses occupy the top position. The more strategic moves are at the top,

while the more tactical activities are at lower levels.

The lowest level of the pyramid (activity level) affects individual business activities that can save

the firm money if these activities are automated using information technology or the Internet.

Examples of activity-level e-business models are:

1. online purchasing: companies can use the Web to place orders with suppliers, thus

automating the activity;

2. order processing: online retailers automate internet transactions created by customers;

3. e-mail: when organizations send e-mail communications to stakeholders, they save printing

and mailing costs;

4. content publishing: companies create content or services on their Web sites, draw lots of

traffic, and sell advertising or generate sales leads;

5. online sales promotions: companies use the internet to send samples of digital products (e.g.

music or software);

6. social media communication: companies use Facebook pages, Twitter streams, blogs, and

more to engage and build relationships with customers and prospects;

7. business intelligence;

6 8. online advertising and public relations;

9. dynamic pricing strategies online;

10. search marketing.

The next level of the pyramid (business process level) changes business processes to increase the

company’s effectiveness. Examples of this e-business model are:

1. customer relationship management (CRM): involves retaining and growing business and

individual customers through strategies that ensure their satisfaction with the company and

its products. CRM seeks to keep customers for the long term and to increase the number and

frequency of their transactions with the company;

2. knowledge management: is a combination of a company’s database contents, the technology

used to create the system, and the transformation of data into useful information and

knowledge;

3. supply chain management: involves coordination of the suppliers and distribution channel to

deliver products more effectively and efficiently to customers;

4. community building: companies build social media Web pages to draw groups of special-

interest users. In this model, firms invite users to chat and post comments on their Web sites,

social media pages, or blogs with the purpose of building a buzz online and attracting

potential customers to the site;

5. crowdsourcing: is the practice of outsourcing ads, product development, and other tasks to a

people outside the organization;

6. freemium: is a combination of “free” and “premium”, where companies offer a basic

product for free and then provide upgraded versions for a fee. For example, customers can

use some basic software for free but need to upgrade and pay for more functionality;

7. database marketing;

8. enterprise resource planning (ERP);

9. mass customization.

At the enterprise level of the pyramid, the company automates many business processes in a unified

system. Examples of this e–business model are:

1. e-commerce: refers to online transactions, selling goods and services on the internet. One

type of online retailer sells physical products and uses traditional transportation methods to

deliver them. The other type sells digital products such as information, software, and music

and delivers them via the internet;

2. social commerce: is one type of e-commerce that uses social media and consumer

interactions to facilitate online sales;

3. direct distribution: refers to a type of e-commerce in which manufacturers sell directly to

consumers, eliminating intermediaries such as retailers;

4. content sponsorship online: is a form of e-commerce in which companies sell advertising on

their Web pages, YouTube videos, or other online media;

5. social network sites: bring users together to share interests and personal or professional

profiles;

6. portal;

7. broker models;

8. agent models.

The final level of the pyramid is comprised of Internet pure plays. Pure play are businesses that

began on the internet, even if they subsequently added a brick-and-mortar presence. For example,

E*TRADE is a pure play, beginning with only online trading. Pure plays are facing significant

challenges: they must compete as new brands and take customers away from established brick-and-

mortar or online businesses.

What are the four ways of collecting Web analytics?

7

Web analytics is the study of user behaviour on Web pages. Companies collect consumers data in

four ways:

1. web site servers logs record the user’s IP (internet protocol) address, which browser the

visitor is using, his or her location before arriving at the company site, the time of the day,

and every click-through of the user while on the site. The IP address helps companies

understand where users live;

2. cookie files are small data files written to a user’s hard drive when visiting a site. They are

necessary for using shopping carts and other operations at a site. Cookie file data are used to

understand how many visitors are returning;

3. page tags are one pixel on a page that is invisible to users. Page tags activate a special script

when users are on the page, providing information such as when items are removed from a

shopping cart;

4. geolocation uses many different technologies to locate a device and its owner at its physical

world address: for example WiFi, GPS (global positioning satellite coordinates), or simply

IP address. Marketers can use this for market segmentation when they observe consumer

behaviour from various countries or other locations.

In today’s scenario, should an e-business operate in line with the marketing concept? Why?

The marketing concept suggests that the social and economic justification for an organization’s

existence is the satisfaction of customer wants and needs while meeting organizational objectives.

E-businesses should operate in line with the marketing concept because customers discuss brands

on social media, and if companies don’t satisfy customer needs the world will hear about it in a

second and this often hinders (impedire) the companies’ goal achievement.

List six important social media awareness/exposure metrics.

The most accurate way to measure an increase in brand awareness is to conduct survey research

using a representative sample of the company’s target market. Important social media

awareness/exposure metrics are:

1. unique visitors: measures the number of visitors, without repetition, who access a site,

application, video, or other social media content within a specific period of time;

2. page views: refers to single pages that are viewed on a social media site;

3. impressions: refers to the number of times an ad loads on a user’s screen;

4. number of searches: measures the number of times users search for the brand, company, or

associated key words selected by the organization while typing the key words in a search

engine;

5. search engine ranking: evaluates where the organization’s social media content appears in

the search engine results pages for desired key words;

6. number of followers, registrations, or subscribers to the blog, social network page, video

channel, or other content: are also used to measure earned media engagement.

List three important social media brand health metrics.

In the category of social media brand health metrics, companies want to measure the influence their

brand and communications have on consumers. They are:

1. share of voice (SOV): is the proportion of online conversations about one brand versus its

competitors;

2. sentiment: refers to the proportion of online conversation about a brand that is positive,

negative, or neutral;

3. brand influence: can include a number of other metrics, including number of inbound links

to a social media property, number of Twitter links that are retweeted, number of comments

on posts, and number of times content is shared or linked.

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List four important social media engagement metrics.

There are many ways to engage social media users. Engagement metrics are:

1. content viewership: refers to the number of visitors who consume content, such as by

reading a blog (page views), watching videos or listening to podcasts, and downloading

white papers;

2. tagging, bookmarking, or likes for content;

3. membership/follower metrics count the number of RSS (Really Simple Syndication)

subscribers, members in a community, such as LinkedIn, or number of followers on Twitter;

4. number of shares: measures how many times viral content is shared with others;

5. content creation: counts the number of visitors who upload ads for a contest, rate or review

products, write comments on blogs or videos, or retweet.

List four important social media action metrics.

Although engagement metrics demonstrate actions taken by users, action metrics steps it up to a

higher level of action:

1. click-through to an advertiser’s site: is measured by the proportion of all people who are

exposed to a communication message and those who click to visit the site;

2. contact form completion or registration, allowing the company to add the person to their

database of names, e-mail addresses, and more;

3. event attendance online or offline, based on a social media promotion for a Webinar or other

event;

4. purchase: is the ultimate goal for company marketers: companies measure conversion rates

(proportion of all site visitors who purchase), number of purchases, average order value, and

many other metrics that evaluate communication effectiveness toward this goal.

List two important social media innovation metrics.

In the category of innovation metrics, companies want to know if their social media

communications are driving customers to comment and review in ways that help the company

improve its products and services. Two important social media innovation metrics are:

1. number of ideas shared in a company’s social media site (e.g., My Starbucks Idea);

2. trend spotting helps companies know what is hot in their target markets. Google Trends

shows “hot” search key words and allows users to search trends.

9 3 The E-Marketing Plan

The e-marketing plan is a guiding [road map], dynamic document that links the firm’s e-business

strategy with technology-driven marketing strategies. It is usually integrated with the firm’s overall

marketing plan.

Why do entrepreneurs seeking funding need a venture capital e-marketing plan rather than a

napkin plan?

Small to mid-sized firms and entrepreneurs with start-up ideas often begin with a napkin plan and

do not initially go through the entire traditional marketing planning process. However,

entrepreneurs seeking funding need a venture capital e-marketing plan rather than a napkin plan

because the napkin plan doesn’t contain enough data and logic to prove that e-business idea is solid

and the entrepreneur has some idea of how to run the business.

Some of the capital the entrepreneur seeks is debt financed through bank loans, though most of it is

equity financed. Start-up companies tap private funds (friends and family), angel investors, and

VCs. In general, friends and family are the smallest sources of capital; angel investors invest

hundreds of thousands of dollars; and VCs invest millions of dollars.

The plan prepared by entrepreneurs for VCs should be about 8 to 10 pages long. In addition to

product benefits and costs, it should include information about the competition, the target market

and its potential, and the cost to acquire and retain customers.

What is a napkin plan? Give some real-life examples of such plans.

Two common types of e-marketing plans are the napkin plan and the venture capital e-marketing

plan. Napkin plans occur when entrepreneurs simply jot (annotano) their ideas on a napkin

(tovagliolo) and then run off to find financing. These ad hoc plans are not recommended when

substantial resources are involved. An example of such plans is Twitter: it is simply a sketch that

inspired this company. The founder, Dorsey, went on to create Square – the card reader that allows

smartphone users to swipe credit cards for product purchases – in a similar fashion.

The seven key planning elements are a situation analysis, an e-marketing strategic planning, the

plan objectives, an e-marketing strategy, an implementation plan, the budget, and a plan for

evaluating success. Strategies are developed to meet the objective and then tactics implement the

strategies.

10

What is SWOT? Explain with respect to Amazon.com.

The marketing environment is ever changing, providing plenty of opportunities to develop new

products, new markets, and new media to communicate with customers, plus new channels to reach

business partners. At the same time, the environment poses competitive, economic, and other

threats. Three key environmental factors that affect e-marketing and are part of any situation

analysis are legal, technological, and market-related factors.

The SWOT analysis flows from a situation analysis that examines the company’s strengths and

weaknesses with respect to the environment and the competition and looks at external opportunities

and threats. Opportunities may help to define a target market or identify new product opportunities,

while threats are areas of exposure. For example, when Amazon seized the opportunity to sell

online, it had not significant competition. Its biggest threat was a full-scale push by one of the large

bookstore chains to claim the online market. The company’s greatest weakness was that it has no

experience boxing (imballare) books for shipment. The company’s greatest strength was a smart

and talented team that stayed focused and learned what it didn’t know. The delay by the bookstore

chains gave Amazon the opportunity to establish its brand online.

The strategic planning process involves determining the fit between the organization’s objectives,

skills, and resources and its changing market opportunities. These tasks are tier 1 strategies,

including segmentation, targeting, differentiation, and positioning. During this phase, marketers

uncover opportunities that help formulate the e-marketing objectives.

Marketers conduct a market opportunity analysis (MOA), including both demand and supply

analyses, for segmenting and targeting.

Differentiate between the descriptors used in segment analysis in a B2B vs a B2C market.

Segment analysis in the B2C market uses descriptors such as demographic characteristics,

geographic location, selected psychographic characteristics (such as attitude toward technology and

mobile communication device ownership), and past behaviour toward the product (such as

purchasing patterns online and offline). B2B descriptors include the firm’s location, size, industry,

type of need, whether it is technologically savvy (esperta). These descriptors help firms identify

potentially attractive markets.

11

The purpose of a supply analysis is to forecast (prevedere) segment profitability and to find

competitive advantages to exploit in the online market. The firm must also try to identify future

industry changes.

Explain the relationship between positioning and brand differentiation.

Another tier 1 step in e-marketing strategic planning is identifying brand differentiation variables

and positioning strategies. Marketers must decide how to differentiate their products from

competitors’ products in a way that provides benefits perceived as important by the target.

Flowing from this differentiation is the positioning statement: the desired image for the brand

relative to the competition. If this positioning strategy was already decided upon in the traditional

marketing plan, e-marketers must adjust the online image to the offline one.

In general, the objective in an e-marketing plan includes the following aspects:

• task (what is to be accomplished)

• measurable quantity (how much)

• time frame (by when).

Most e-marketing plans aim to accomplish multiple objectives, such as the following:

• increase market share;

• increase the number of comments left on a blog;

• increase the sentiment of comments;

• increase sales revenue;

• reduce costs (such as distribution or promotion costs);

• achieve branding goals (such as increasing brand awareness);

• increase database size;

• achieve CRM goals (such as increasing customer satisfaction, frequency of purchases, or

customer retention rates);

• improve supply chain management (SCM; such as by enhancing member coordination,

adding partners, or optimizing inventory levels).

Next, marketers craft (creare) strategies regarding the four Ps and relationship management to

achieve plan objectives regarding the offer (product), value (pricing), distribution/supply chain

(place), and communication (promotion). Further, marketers design CRM and partner relationship

management (PRM) strategies. These are tier 2 strategies. Tier 1 and 2 strategies are interrelated.

The Offer: Product Strategies.

The organization can sell merchandise, content, services, or advertising on its Web site. The firm

can create new brands for the online market or simply sell selected current or enhanced products in

that channel.

The Value: Pricing Strategies

A company must decide how online product prices will compare with offline equivalents. To make

these decisions, firms consider the differing costs of sorting and delivering products to individuals

through the online channel as well as competitive and market concerns. Two particularly important

online pricing trends are:

• dynamic pricing: this strategy applies different price levels for different customers or

situations. For example, a first-time buyer or someone who hasn’t purchased for many

months may receive discounted prices to motivate purchase;

• online bidding (offerta): this approach presents a way to optimize inventory management.

12

Distribution Strategies

Many organizations use the internet to distribute products or create efficiencies among supply chain

members in the distribution channel:

• direct marketing: many firms sell directly to customers, bypassing intermediaries in the

traditional channel for some sales;

• agent e-business models: firms such as eBay bring buyers and sellers together and earn a fee

for the transaction.

Marketing Communication Strategies

The internet generated a multitude of new marketing communication strategies. Firms use Web

pages, social media, and e-mail to communicate with their target markets and business partners.

Companies build brand images, create awareness of new products, and position products using

online content.

Relationship Management Strategies

Many e-marketing communication strategies also help build relationships with a firm’s partners,

supply chain members, or customers. However, many firms use CRM or PRM software to integrate

customer communication and purchase behaviour into a comprehensive database. They then use

CRM software to retain customers and increase average order values and lifetime value. Social

CRM is a recent development that uses social media conversation to engage and build relationships

with prospects and customers.

Implementation plan

Implementation plan concerns deciding how to accomplish the objectives through creative and

effective tactics (4Ps + CRM/PRM). E-marketers pay special attention to information-gathering

tactics. Web site forms, cookies, feedback e-mail, social media comments and likes, and online

surveys are just some of the tactics firms use to collect information about customers, prospects, and

other stakeholders.

Budget

A key part of any strategic plan is to identify the expected returns from an investment. These returns

can then be matched against costs to develop a cost/benefit analysis, for return on investment (ROI)

calculation, or for calculating internal rate of return (IRR), which the management uses to determine

whether the effort is worthwhile (proficuo). Marketers today are especially concerned with adequate

return on marketing investment (ROMI).

What are the revenues and costs associated with e-marketing initiatives?

Revenue Forecast

In the section concerning revenue forecast, the firm uses an established sales forecasting method for

estimating its site revenues in short, intermediate, and long terms. Revenue streams that produce

Internet profits come mainly from Web site direct sales, advertising sales, subscription fees, affiliate

referrals, sales at partner sites, commissions, and other fees.

If the producer cuts out the intermediaries and sells its product online directly to the consumer, it

can increase revenue.

E-marketing costs

E-marketing entails (comporta) many costs, including costs for employees, hardware, software,

programming, and more. In addition, some traditional marketing costs may be included into the e-

marketing budget – for example, the cost of offline advertising to draw traffic to the Web site.

Following are just a few of the costs for site developers:

13 • technology costs: include software, hardware, internet access or hosting services,

educational materials and training, and other site operation and maintenance costs;

• site design: web sites need graphic designers to create appealing page layouts, graphics, and

photos;

• salaries: the salaries for all personnel who work on Web site development and maintenance

are included in the budget;

• other site development expenses: expenses not included in the technology or salary

categories will fall here – such as registering multiple domain names and hiring consultants

to write content or perform other development and design activities;

• marketing communication: are advertising, public relations, and promotional activities, both

online and offline, that directly relate to drawing traffic to a site and pushing visitors to

return and purchase; or search engine optimization (SEO), online directory costs, and more;

• social media communication: staff costs can really escalate when companies engage

customers on Facebook, Twitter, or other social media pages. As well, organizations spend

time monitoring their brands and other company mentions in social media so they can catch

and respond to negative posts;

• miscellaneous: other typical project costs might fall here – expenses such as travel,

telephone, stationery printing to add a new URL, and more.

Evaluation plan

Once the e-marketing plan is implemented, its success depends on continuous evaluation. In

general, today’s marketers are quite ROI driven. As a result, e-marketers must show how their

intangible goals, such as brand building or CRM, will lead to higher revenue.

14 4 Global E-Markets 3.0

Globalization has created a whole world of opportunities for e-marketers.

Successful e-marketing strategies are dependent on a solid understanding of a country context.

Social media campaigns differ significantly by country as well.

Differentiate between developed and emerging economies.

Countries vary in their level of economic development. Developed economies have high levels of

economic development and include all of Western Europe, North America, Japan, Australia, and

New Zealand. These countries are highly industrialized, use technology to increase their production

efficiency, and, as a result, have a high gross domestic product (GDP) per capita. A high GDP

means that citizens have enough discretionary income to buy items that will make their lives easier,

richer and fuller.

Emerging economies are countries with rapidly developing economies. Their most important

characteristic is that they all have a rapidly developing middle class, that means a rapidly

developing demand. Four countries, Brazil, Russia, India and China, represent the largest growth

markets in the world. Collectively, these four countries are called BRIC countries or BEMs (big

emerging markets). BRIC countries have more than 40% of the world’s population and have

received significant attention from many multinational corporations and entrepreneurs. IKEA, the

Swedish furniture retailer, has a strong Web presence in Russia and China.

Another group of emerging market economies is CIVETS (Colombia, Indonesia, Vietnam, Egypt,

Turkey, and South Africa). In CIVETS e-marketers see opportunity because of the large number of

youth in each country and global youth markets are digitally connected in ways that their parents

never were.

How can countries with emerging economies make use of information technology?

For countries with emerging economies, technology plays an especially important role. Although

technology can, in general, sustain a nation’s overall production capacity and efficiency, it is

through the application of information technology that countries with emerging economies can

really open up (aprirsi) new, exciting, global markets. India is a prime example of such efforts. The

Internet allows business in emerging economies to have a global presence.

What are born global firms? Explain with an example.

Businesses that are completely Web-based at their founding are called born global firms. For

example, Dewak is a company based in Medellin, Colombia, that offers customized helpdesk and

chat services for businesses. As a born global firm, Dewak’s Web presence focuses on business

benefits and dissociates itself completely from inaccurate perceptions that Medellin is still the

centre of Colombian drugtrafficking. Born global firms illustrate that successful marketing on the

Internet can leapfrog a company from nowhere to somewhere overnight.

Country and market opportunity analysis

An e-marketing plan guides the marketer through the process of identifying and analysing potential

markets. According to the concept of market similarity, marketers often choose foreign markets that

have characteristics similar to their home market for initial market entry. Thus, a U.S.-based

company would first target countries such as Canada, the United Kingdom, and Australia before

targeting France, Japan, or Germany. Amazon used a market similarity strategy to begin its

international expansion. After developing its domestic presence in the United States, Amazon first

entered Canada, and then the United Kingdom. It then targeted France, Germany and Japan. Three

markets (the United States, Canada, and the United Kingdom) share a common language (English),

but there are other market similarities across each foreign market: all these markets have high

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literacy rates, high internet usage rates, and clearly defined market segments willing to shop for

books (and other products) online; in each country, credit cards are widely used for purchases; each

country has secure, trusted online payment mechanisms; and each country has efficient package

delivery services.

What is a diaspora community?

Globalization helps explain the increased migration of individuals from one country to another.

When a large number of people leave their home country and live together in a common

neighbourhood or city abroad, they become part of a diaspora community. Diaspora communities

often want to maintain a relationship with their homeland. E-businesses in countries with emerging

markets use similarity to target their own diaspora communities living abroad.

Market similarity can also be seen in the phenomenon called market convergence, in which markets

that were once very different become more similar over time.

E-marketers from countries with emerging economies must confront some unique challenges

related to the conditions of operating within a still developing nation:

1. e-commerce payment and trust issues: e-commerce in emerging markets is often difficult

because of the limited use of credit cards and the lack of trust in safely conducting online

transactions. So online purchasing is more difficult;

2. physical infrastructure: Unless the firm’s product is completely digital, online retailers of

tangible products still need to solve the logistics problems of physically moving the product

from one location (a warehouse) to another (a retail outlet, consumer’s home, or some other

collection point). Road conditions in emerging market countries vary greatly including the

roads in major cities. Transaction costs increase as the length of transportation and time

increase. Moreover, countries with emerging economies have to face frequent electricity

blackouts. Household and businesses in the major cities of emerging countries are

sometimes without electricity during the summer months and this is a problem for

businesses that are forced to close;

3. number of computer users and Wireless Internet access (mobile phones): considering that

customers need a mechanism for connecting to the Internet, for e-marketers operating in

developed countries connecting to the Internet is not a problem. E-businesses operating in

emerging, low-income countries face some problems in reaching people because only few

consumers own a computer or a smartphone and can connect to the Internet. For this reason

in many towns telecenters developed. They are small shops with three to ten computers that

offer Internet connections to the general public and are the most popular means for

accessing the Web in many countries. Peru has one of the highest usage rates of telecenters

in the world.

What is a tipping point? Explain with examples.

A tipping point is that moment when an emerging trend or phenomenon becomes irreversible; there

is no going back. Computer and mobile phone technology, along with the rapid development of

broadband, are changing the way markets access and understand information, products, and

services. The explosive growth of mobile technology has created a tipping point in Indonesia (and

many other countries).

How do computer and telephone ownership affect e-marketing in emerging economies?

Globally, smartphone use is on the rise. Smartphone adoption rates are the fastest of any technology

innovation ever.

E-marketers must understand that consumer behaviour with the mobile Internet differs from

consumer behaviour with desktop computers or even laptop computers and consumer behaviour

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differs also between countries. For example, in Brazil about three-quarters of smartphone users who

saw an offline ad did online research after seeing the ad, and in Argentina, 37% of smartphone users

make a product purchase in a brick-and-mortar store after online research with their smartphone.

Why must Web site designers consider connection speeds in emerging economies?

Broadband, or high-speed Internet access illustrates another significant tipping point.

The laws of supply and demand generally apply to broadband pricing, and it is not surprising that

global prices continue to decline as more individuals and firms subscribe to broadband.

The rapid development of broadband networks in developed and developing countries is creating

new opportunities for e-marketers.

What is the digital divide, and what does it mean for e-marketers?

Although computer and information technologies are changing how consumers access and use

information, from marketing perspective there are still significant differences between countries and

consumers in those countries. This division between those who have access to information and

those who don’t is named digital divide. Even in fast-developing China, there is a digital divide. It

is the large gap between urban and rural Internet users. The Chinese government agency reports that

this gap is caused by a combination of high Internet costs relative to rural income, less knowledge

of the Internet itself, and inadequate infrastructure.

Gender creates a digital divide relative to cell phone ownership. There are 300 million fewer

women mobile subscribers than men.

Building inclusive e-markets th

Peter Drucker, the greatest management theorist of the 20 century, said that business has only two

core activities: marketing and innovation. This is true for the poorest of global markets – at the base

of the world’s economic pyramid. That phrase, base of the pyramid, has been used to describe the 4

billion people who live on less than $2 per day. The explosive growth of mobile phones throughout

the developing world is enabling e-marketers to reach base of the pyramid consumer segments in

interesting and creative ways.

Mobile banking is one of the most successful e-marketing efforts in countries that are the least

economically developed. Low-income individuals around the world lack security for their money.

Poor individuals living in rural, remote areas face a different problem: there are simply not enough

people living in any one village to make it profitable for a bank to have offices there. Mobile

banking is the innovative, market-based solution that solves these problems.

How did Hindustan Unilever use e-marketing to target the media dark consumer segment?

Hindustan Unilever, the Indian subsidiary of Unilever, developed an innovative way to reach media

dark rural Indian consumers through its iShakti program. Media dark refers to those rural Indian

communities that have no access to radio and television. A combination of factors may make a

village media dark. A village, for example, may not have electricity; no one living in the village

may actually own a television or radio; or no one in the village can afford the monthly subscription

fee for a satellite connection.

iShakti consists of electronic kiosks set up in rural villages through which local residents can obtain

free health, hygiene, employment, agricultural, and legal information. Content is delivered through

voice and streaming video, since many rural consumers, especially women, are illiterate.

Social networking

Perhaps nowhere is the convergence of new technology (the increased use of mobile and

smartphones) and access to information (mobile broadband) more evident than in the increased

importance of social media in the e-marketers integrated communications toolkit. Half of the

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world’s most engaged markets for social networking are in Latin America: Argentina, Chile,

Colombia, Peru, and Venezuela.

Facebook is the social networking giant, there are Facebook users in about every country in the

world. Yet Facebook penetration varies by country, and, in fact, may not be the dominant social

networking site in certain countries, for example in Russia, South Korea, Japan, China, Brazil, and

Vietnam, where there is another market leader.

18 5 Ethical and Legal Issues

Define ethics and law and show how they are different and similar.

Ethics and law are related. Ethics concerns the values and practices of expert people who have

knowledge of a specific field. Ethics is also the concerns and values of society as a whole.

Law is similar to ethics in the sense that it too is an expression of values, but while ethics may be

directed toward individual or group endeavours, laws are directed to national, or sometimes

international, populations. Additionally, law attempts to be consistent in both time and place, so that

citizens will be familiar with their rights and obligations.

Because law results from combinations of interests, beliefs, and goals, the processes that lead up to

the making of laws are often slow and complex.

Ethics and ethical codes

A particularly important aspect of ethical inquiry involves the study of professional activities.

Traditionally, groups of individuals possessing special skills or knowledge have established codes

and systems of fair practice. A classic example is the Hippocratic Oath of physicians. Ethical

standards help to communicate consistency and trustworthiness to the community, while also

maintaining stability and integrity within the profession.

Documents such as the American Marketing Association’s (AMA) Statement of Ethics reflect the

recognition of a commitment to the exercise of honesty, responsibility, transparency, respect,

citizenship, and fairness within all professional transactions.

Privacy th

The concept of privacy encompasses both ethical and legal aspects. Privacy is a product of the 20

century. In 1890 Warren and Brandeis published an article that urged the recognition of a right to

privacy within American law. This protection was defined as the right to be left alone. Many

justifications for this new idea were reactions to the phenomena of a maturing industrial and

technological age, including the mass distribution of newspapers, the development of listening

devices, and the widespread use of photography.

In addition to Constitutional developments, privacy has been addressed in the common law.

Common law refers to decisions, presumptions, and practices traditionally embraced by Anglo-

American courts. The common law has established a series of privacy violations that, both

individually and together, form the basis of invasion of privacy lawsuits.

The central attributes of privacy fall into three general areas. The first is the Warren and Brandeis

concept of a right to be left alone. Privacy within this perspective is the ability to remain isolated

from society.

A second theory, known as access control, does not presume isolation as a norm but places its

emphasis upon laws and standards that enable persons to reasonably regulate the information that

they are giving up.

A third theory, known as the autonomy model, entails freedom from the coercive use of personal

information as well as the ability to be alone when reflection is necessary.

Privacy within digital contexts

Information plays an important role in the concept of privacy, as well as that of marketing and

electronic commerce. It is, therefore, not surprising that conflicts about how data should be

collected and used have developed.

A starting point for this discussion is the American Marketing Association’s Statement of Ethics. It

states that the AMA and its members will seek to protect the private information of customers,

employees and partners. This principle must be applied to the Internet’s many information-

gathering mechanisms.

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The most common means by which data are obtained is through the use of cookies. Cookies are

packets of data created within a user’s hard drive in response to instructions received from a Web

page. Once stored, cookies have many purposes. For example, they may handle online information,

creating features like shopping baskets to hold purchases. They may recall stored sales information

to remind users of items already ordered or to suggest new products. Significantly, cookies may

collect other data, such as full name, e-mail and postal addresses, phone numbers, a computer’s

geographic location, and the time logged online.

User tracking occurs when cookies are analysed in the course of a user’s online travels. The result is

an ability to identify an individual’s online behaviour.

Many people value privacy as the ability to remain secluded from unwelcome intrusion as well as

the capability to control the disclosure of personal data. This position advocates policies that require

individuals to be explicitly informed of any data collection event and then to allow the individuals

the opportunity to participate (opt in) or decline (opt out).

Online advertising firms instead presume most users wish to receive targeted advertising. According

to this vision, privacy is only one of many values to be balanced. It generally supports an opt-out

policy, which presumes that data collection will take place, but still allows users to remove consent

by a variety of methods, including sending e-mail to collectors requesting removal from their

databases.

In 2012, the Obama administration released the Consumer Privacy Bill of Rights to improve

protection of Internet users’ privacy rights. This initiative brought to a new set of rules for internet

companies (codes of ethics), which will establish clear and fair standards for processing and safety

of online personal information: individual control, transparency, respect for context, security, access

and accuracy, focused collection, and accountability.

What are some of the threats to Internet user privacy?

Technology has increased the ways in which such information is collected. Adding to the problem is

the confusion over what Web sites do with the information they collect. Nearly every major Web

site collects some type of personally identifiable information. Just over half, however, specify on

the Web site exactly how the information will be used.

In addition to issues of data collection, the problem of access to data is of fundamental significance

within the context of online privacy. In this area, the status of sensitive information is not only a

matter of hardware security but also one of administrative policy.

Java is a Web-friendly programming language that allows the downloading and running of

programs or applets on individual computers. These applications are increasingly used to provide

such enhancements as dynamic animation, Web-based simulations, and other useful additions to

plain hypertext.

Intelligent agents are programs that, once released by a user, can function autonomously within the

Web to make electronic decisions. Some potential tasks include the searching of sites or the buying

of products that conform to an individual’s tastes or interests.

Cookies, Java applets, and intelligent agents are able to function in the course of nearly any online

session, without a user’s knowledge or control.

International privacy issues

On an international level, privacy issues have also received closed attention. The most

comprehensive privacy legislation so far has been developed by the European Union.

The foundation stone in creating the current personal data protection system was the Privacy

Guidelines prepared by the Organization for Economic Co-operation and Development (OECD) in

1980. These guidelines introduced basic principles for personal data protection and processing such

as collection limitation, data quality, purpose specification, use limitation, security safeguards,

openness, individual participation, and accountability. Although helpful, these guidelines were not

mandatory for the member countries of the OECD.

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In order to bring more clarity and enhance enforcement of data privacy rules, the EU developed the

Data Protection Directive, which became effective in 1998. According to this act, all member states

of the EU were instructed to enact national laws to protect “fundamental rights and freedoms of

persons, and in particular their right to privacy”.

What are the EU safe harbour provisions and why are they important for U.S. companies

doing business in Europe?

The safe harbour is the agreement between U.S. and EU that allows American companies to store

European users’ personal data both in the EU and U.S. However, the U.S. must submit to a series of

safe harbour provisions for the protection of EU citizens’ data: users must be informed about the

personal data collection and use; they can decline the collection and transfer of data; data can be

transferred only to organizations that use safe protection data methods; firms must guarantee that

data won’t be lost; firms must collect only relevant data for the specific use; users must have the

right to access their personal data and correct them if erroneous or eliminate them; these rules must

be correctly implemented.

Another important EU privacy act is the Directive on Privacy and Electronic Communications of

2002. The act covers questions related to computer data privacy such as spam, cookies, and

confidentiality of online information.

In 2012 the European Commission proposed the Data Protection Regulation, which extended its

prior privacy guidelines to face the current technology challenges.

According to the FTC, what are the minimum requirements for ethical use of consumer

information?

1. Notice: users should be aware of a site’s information policy before data are collected.

2. Consent: users should be allowed to choose participation or exclusion from the collection.

3. Access: users should have the ability to access their data and correct them if erroneous.

4. Security: policies to ensure the integrity of data and the prevention of misuse should be in

place.

5. Enforcement: users should have effective means to hold data collectors to their policies.

Digital property

Traditionally, the law protected intangible or intellectual property through three basic mechanisms:

1. patent: protects inventions and it concerns the ability to reproduce or manufacture an

inventor’s product;

2. trademark: protects brands, that are aim to identify and distinguish products and services in

the marketplace;

3. copyright: protects expression and it concerns the right to publish, duplicate, or alter

expressions of ideas.

None of these areas of law protect ideas. Computer-based communication poses particularly

difficult problems for intellectual property. These communications may incorporate elements of

patent, copyright, and trademark or any combination thereof. A single communication may contain:

a novel way of communicating covered by a patent; text and pictures protected by copyright; and

proprietary branding covered by trademark law.

What are the doctrines of first sale and fair use? How should they be applied online?

Fair use consists of the ability to copy – without cost – reasonable portions of protected material for

purposes of such public activities as education, news reporting, and editorial comment. The doctrine

of first sale limits the ability of a copyright holder to obtain profit from the sale of his or her work

after the initial time at which the material is sold. The first sale doctrine is viewed as benefiting

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such institutions as public libraries and can also increase access to intellectual material through

discounts such as those offered by used bookstores.

Trademarks

Under the federal Lanham Act, trademarks may be registered with the government. Registered or

not, however, they may still be protected under the Act. To prove an infringement case, claimants

must prove that the trademark is protectable. Generally, the more distinctive (unique) the mark, the

greater is the strength of this claim. The Act also prohibits dilution – the unauthorized use of famous

trademarks in association with goods or services that is likely to lead to a lessening of the

uniqueness of the trademark.

In 1995, the U.S. Congress passed the Federal Trademark Dilution Act (FTDA), which established

guidelines on how to determine whether a particular trademark has been diluted. Dilution protects

the substantial investment made by owners of famous marks – those widely recognized by the

general consuming public of the United States in those marks.

Which types of trademark dilution exist and how do they differ from each other?

There are two types of dilution: blurring and tarnishment. Blurring (offuscamento) results from

activities that reduce the “distinctiveness” (uniqueness or brand recognition) of the famous mark.

Tarnishment occurs when the famous mark is cast (gettato) in an unattractive light.

The Trademark Dilution Revision Act of 2006 (TDRA) was enacted (promulgato) to substantially

revise the FTDA. Under TDRA, if a famous brand is likely to be diluted, the brand owner can file

suit (presentare denuncia).

Trademark law has recently been applied to the internet-naming system. Domain names are unique

configurations of letters or numbers that are used to route data. In addition to designating Web sites,

domain names are used in e-mail addresses. The purpose of the Internet Corporation for Assigned

Names and Numbers (ICANN) is to govern the assignment and possession of domains and resolve

the conflicts in relation of domain names.

A type of trademark violation is known as cybersquatting. This activity involves the registration of

domain names of existing corporations or other entities. According to the Anticybersquatting

Consumer Protection Act (ACPA) a person is liable (responsabile) if, in bad faith, he or she

registers, traffics, or sells a domain bearing a name that is identical or confusingly similar to a

protected trademark, or which would dilute the worth of the trademark.

Metatags are HTML statements that describe a Web site’s contents. They allow search engines to

identify relevant sites. Accordingly, these tags can provide a valuable means of attracting users to a

site.

In addition to word appropriation, trademark law has been implicated in matters involving use of

hyperlinks, links that take users to areas other than their introductory page. Some entities have

become concerned that hyperlinks may cause confusion or deprive the target sites of revenue

obtained through the selling of advertising.

Licenses

An increasingly popular method of intellectual property protection involves the use of licenses –

contractual agreements made between consumers and software vendors, which allow the buyer to

use the product but restrict duplication or distribution.

What does it mean to clickwrap a license?

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Shrinkwrap or break-the-seal licenses appear outside the software, while clickwrap licenses are the

digital development of shrinkwrap licenses and require to click a button online or within a program

to acknowledge acceptance (accettare) of terms.

Trade secrets

A trade secret is an economically valuable business secret that is not generally known or readily

ascertainable. The federal Economic Espionage Act was enacted in part to address digital advances

and now makes it a criminal offense to divulge trade secrets. Trade secrets can include, but are not

restricted to, formulas, market data, algorithms, programs, codes, and models. They may be stored

online or in tangible formats.

Employees with access to trade secrets may be prohibited from engaging in similar businesses for a

period of time.

Another important Act in trade secrets law is the Uniform Trade Secrets Act (UTSA). The main

purpose of the UTSA is to unify the existing trade secrets legislation across all 50 states.

Data ownership

A complex issue involving online data is an activity known as spidering. This process involves the

use of software application called robots to enter targeted Web sites and obtain data for the use of its

owner.

Online expression

Spam is unrequested e-mail. Many users are disturbed to find that information given to individuals

or entities for one purpose may be collected and sold for mass distribution. Furthermore, these

messages are sent without valid return addresses or unsubscribe links, making it nearly impossible

to stop receiving them.

Fraud

The average person is not in a position to understand exactly how information is displayed,

transferred, or stored, and this lack of knowledge provides opportunities for novel deceptions.

Included within this category is the use of e-mail or Web sites to impersonate individuals or

corporations. This activity, known as spoofing, is often used to extract sensitive information by

leading a user to believe that a request is coming from a reputable source, such as an ISP or a credit

card company.

23 6 E-Marketing Research

Data drive strategy

Data without insight or application to inform marketing strategy are worthless. Data are collected

from a myriad of sources, filtered into databases, and turned into marketing knowledge that is then

used to create marketing strategy.

Big data

Big data refers to data sets that are so big that they are difficult to manage with currently available

software. For example, how can a marketer turn 15 terabytes of Tweets a day into actionable brand

tactics?

This presents a problem for information technology managers, and e-marketers must determine how

to extract insights from these billions of bytes.

Businesses must manage four aspects of big data: volume (the quantity), velocity (handling time-

sensitive data quickly), variety (ranging from social media conversation to customer click patterns

and census data), and veracity (is the information reliable and trustworthy?).

How do marketers turn marketing data into marketing knowledge?

Knowledge management is the process of managing the creation, use, and dissemination of

knowledge. Thus, data, information and knowledge can be shared with internal marketing decision

makers, partners, distribution channel members, and sometimes customers.

A complete marketing knowledge database includes all the data about customers, prospects, and

competitors, the analyses and outputs based on the data, and access to marketing experts, all

available 24/7 through a number of digital receiving appliances.

What is MIS? With an example, explain how companies use MIS for effective research

findings.

A marketing information system (MIS) is the process by which marketers manage knowledge. The

MIS is a system of assessing information needs, gathering information, analysing it, and

disseminating it to marketing decision makers. The process begins when marketing managers have

a problem that requires data to solve. The next step is to gather the data from internal sources and

from secondary sources, or by conducting primary marketing research. The process is complete

when these managers receive the needed information in a usable form. For example, Web

advertisers need audience statistics prior to deciding where to purchase online display and space

(the problem). They want to know how many people in their target market view various Web or

social media sites to evaluate the value of Web ads versus TV and other media ads (information

need). One way to get this information is through secondary sources. Such companies rate Web sites

and monitor traffic statistics by researching the Internet usage habits of large panels of consumers.

Web advertisers use the data to make effective and efficient Web media buys.

How did e-marketing change the MIS landscape?

E-marketing changed the MIS landscape in several ways. First, many firms store electronic

marketing data in databases and data warehouses. These data warehouses enable marketers to obtain

valuable, appropriate, and tailored information anytime. Second, marketers can receive database

information in Web pages and e-mail on a number of appliances in addition to the desktop

computer: pagers, fax machines, smartphones, and even basic cell phones. Third, customers also

have access to portions of the database. For example, when consumers visit Amazon, they can query

the product database for book titles and also receive information about their account status and past

book purchases. Finally, most firms recognize that data and information are useless unless turned

into knowledge to increase profits.

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What are the three main sources of data for solving marketing research problems?

1. Internal records, such as sales data, are one important source of marketing knowledge.

Accounting, finance, and production personnel collect and analyse data (sales and

inventory) that provide valuable information for marketing planning. The marketing

department itself collects and maintains relevant information about customer characteristics

and activities.

2. When specific information is not available in company or partner databases, the e-marketer

first looks for secondary data, that are already existing data outside the company. Secondary

data help marketers understand competitors, consumers, the economic environment, political

and legal factors, technological forces, and other factors in the macroenvironment affecting

an organization.

3. When secondary data are not available, marketing managers may decide to collect their own

information. Primary data are information gathered for the first time to solve a particular

problem through online e-mail and Web surveys, online experiments, focus groups, and

observation of Internet user discussions. By doing this, marketers learn about both current

and prospective customers.

Source 1: internal records

For example, sales data come from accounting systems and the company Web site log. When a

customer purchases online, the transaction is recorded in a database for access. Marketing managers

review and analyse these data to determine conversion rates (proportion of visitors who purchase

online) and to see if online ads and other communication are driving sales.

Data on in-store behaviour are gathered through scanning bar codes on products. Firms use the data

in customer databases to improve sales rep effectiveness, refine the product mix, identify optimum

pricing for individual products, assess promotion effectiveness, and signal distribution

opportunities.

Source 2: secondary data

Secondary data can be collected more quickly and less expensively than primary data – especially

on the Internet. However, secondary data present problems: they may not meet the e-marketer’s

information needs, because they are usually gathered for a different purpose; and they can have a

low quality. Marketers have no control over data-collection procedures, so they should always

evaluate the quality of secondary data.

Marketers continually scan the company’s macroenvironment for threats and opportunities. This

procedure is commonly called business intelligence. An environmental scan seeks market

information about demographic trends, competitors, technological forces, natural resources, social

and cultural trends, world and local economies, legal and political environments.

There are public (U.S. agencies, like the U.S. Patent Office, global organizations, such as the

International Monetary Fund, universities, professional associations) and private (company Web

sites, research firms, commercial online databases) sources of data about the firm’s

macroenvironment.

What is competitive intelligence, and what are some sources of online CI data?

Competitive intelligence (CI) involves analysing the industries in which a firm operates and to

understand competitor vulnerabilities. It is a legal activity conducted by many companies. It can be

very difficult because companies know others are watching and put out information that can lead

competitors astray (fuori strada). There is an intelligence cycle:

1. planning and direction

2. published information collection

3. primary source (human intelligence) collection

25 4. analysis and production

5. report and inform

The Internet simplified CI and there are three main sources of online CI data:

1. competitors’ Web sites for observing competitive marketing strategies;

2. third-party, industry-specific sites that can also provide information about competitive

activities. An airline will monitor online travel agents to watch competitive pricing and route

changes (e.g., Expedia) and social media sites such as Tripadvisor;

3. user conversation in the social media (e.g., Facebook).

Why and how do e-marketers evaluate the quality of information on a Web site?

Secondary and primary data are subject to many limitations; thus, marketers should use all

information with caution and with a full understanding of how the data were collected. It is

advisable to be as objective as possible when reviewing data prior to using it for making marketing

decisions – especially before using information on Web pages. The reason is that anyone can easily

publish on the Web without being reviewed by a publisher or being screened for accuracy or

appropriateness. Special care is needed when dealing with secondary data from international

sources because of cultural and data-collection differences.

What are the steps that can be taken to evaluate the quality of secondary data collected

online?

1. discover the Web site’s author: a site published by a government agency or a well-known

corporation has more credibility than one by an unknown author;

2. try to determine whether the site author is an authority on the Web site topic: for example,

an economist from Harvard University or Merrill Lynch might have more credible

information about interest rates than a politician. Furthermore, the university’s Web site may

be more objective than the financial firm’s site;

3. check to see when the site was last updated: the more current the information is, the more

useful it will be for decision making;

4. determine how comprehensive the site is: does it cover only one aspect of a topic, or does it

consider the broader context?;

5. try to validate the research data by finding similar information at other sources on the

internet or in hard copy at the library: for example, one validation of the number of people

using the Internet might be to check the number of people with computers. In general, it is

also a good idea to compare sites that cover the same topic;

6. check the site content for accuracy: for example, if a site has lots of errors, it is a sign that

the data cannot be trusted.

Source 3: primary data

Gathering primary data is usually more expensive and time consuming than it is to gather secondary

data; on the other hand, the data are current and more relevant to the marketer’s specific problem. In

addition, primary data have the benefit of being proprietary and, thus, unavailable to competitors.

Traditional approaches to primary data collection enhanced by the Internet are: experiments, focus

groups, observation, content analysis, and survey research. In-depth interviews (IDIs) are another

important form of primary data collection, but they are better done offline because the questions

tend to be less structured and more open ended. Whether collected on the Internet or offline, all

electronic data are included in a marketing database and become part of the marketing knowledge to

be used for effective planning.

Identify the steps in a primary marketing research project.

1. research problem: some typical internet marketing research problems that electronic data

can help solve are:

26 2. research plan:

a. research approach: on the basis of the information needed, researchers choose from

among experiments, focus groups, observation techniques, and survey research, or

Web conversation monitoring, real-time, and real-space techniques;

b. sample design: researchers select the sample source and the number of desired

respondents;

c. contact method: ways to contact the sample include traditional methods such as the

telephone, mail, and in person, as well as the internet and other technology-enabled

approaches;

d. instrument design: if a survey is planned, researchers develop a questionnaire. For

other methods, researchers develop a protocol to guide the data collection;

3. data collection: researchers gather the information according to plan;

4. data analysis: researchers analyse the results in light of the original problem. For

quantitative research, this step includes using statistical software packages for traditional

survey data analysis;

5. distribution of findings/addition to the database: research data might be placed in the

marketing knowledge database and be presented in a written or oral form to marketing

managers.

Internet-based research approaches

Online experiments

Experimental research tests cause-and-effect relationships. Offline, a researcher will select subjects,

randomly put them into two or more groups, and then expose each group to different stimuli. The

researcher then measures responses to the stimuli, usually in the form of a questionnaire, to

determine whether differences exist among the groups. If the experiment has been carefully

controlled (i.e., only the experimental stimuli have been varied), group differences can be attributed

to the stimuli (cause and effect).

What is A/B testing and why is this important?

Online, marketers use experiments to test alternative Web pages, display ads, and promotional

offers. This is commonly called A/B testing: one group sees a particular ad or Web page and another

group sees a different version (A page or offer and B page). Marketers use this for improving

response rates and sales online.

What are the advantages and disadvantages of online focus groups over conventional

methods?

Focus group research is a qualitative methodology to collect in-depth information from a small

number of participants. Focus groups are often used to help marketers understand important feelings

and behaviours prior to designing survey research.

Online focus groups provide some advantages over traditional focus groups, where all participants

are in one room. First, the Internet can bring together people who do not live in the same geographic

area, such as a focus group with consumers from five different countries discussing online shopping

27

experiences. Second, because participants type their answers at the same time, they are not

influenced as much by what others say (known as groupthink). Finally, by using the Web

researchers can show participants animated ads, demonstrate software, or use other multimedia

stimuli to prompt group discussion.

Conversely, online focus groups can accommodate only 4 to 8 participants at a time while

traditional groups generally host 10 to 12. The reason behind the small group size is the difficulty in

managing simultaneous, overlapping (sovrapposto) conversation online. Some researchers avoid

(evitano) this problem by using online bulletin boards (bacheche) and keeping focus groups going

on for weeks. Also, nonverbal communication is lost online – in offline groups, facial expressions

can be revealed in a way that typed smiley faces do not match. Another disadvantage of online

groups is the authenticity problem. Without seeing people in person, it is difficult to be sure they are

who they say they are. For example, it is quite common for children to pose as adults online. This

dilemma can be solved by verifying respondent authenticity and requiring password entry to the

group. Technical problems can also stall (bloccare) an online group. Finally, one study compared

face-to-face, telephone, and online focus groups and found that people used stronger positive and

negative words online than in other modalities.

Online observation

Observation research monitors people’s behaviour by watching them in relevant situations. Some

researchers believe that actions speak louder than words, making customer observation stronger

than surveys that record people’s statements from memory about what they believe and do. Of

course, as a qualitative approach, observations of a small number of people cannot be used to

describe how all people might act.

An interesting and important form of observational research, available only on the Internet, involves

monitoring consumers’ conversation in social networks, bulletin boards, and other social media.

Really Simple Syndication (RSS) feeds are an extensible markup language (XML) format designed

for sharing headlines and other Web content. When individuals subscribe to a blog or other social

media site via RSS, the content goes to readers’ desktops as it is published. Customers can read the

RSS feeds by downloading a free reader. This is the way that most companies follow influential

bloggers in their industry and watch for posts about their company and brands so they can add

comments or react when crises hit.

Content analysis

Content analysis is the examination of text or images in order to evaluate the communication

content. This research method can be quantitative or qualitative.

Market researchers can learn many things about Internet users through content analysis, such as:

consumer characteristics (e.g., Facebook profiles), customer preferences (e.g., company and

competitor site traffic and Twitter streams) and brand images (e.g., product review and rating sites

and Google group discussions).

Social networks, such as Twitter, product review and ratings sites, and message boards, such as

Google Groups, are the best places to conduct market research and monitor conversation about

competitors.

Online survey research

E-marketers conduct surveys online in several ways:

• intercept sampling is used when Web site users are browsing or shopping on a Web site and

get a pop-up window asking them to participate in a survey. This is parallel to offline

intercept surveys when interviewers stop potential respondents in a public place asking them

to answer survey questions;

• direct targeting occurs when organizations send invitations to individuals via e-mail with a

link to a survey form on the Web. Organizations either draw a probability sample of e-mail

28 addresses or contact specific people from their databases. They can also purchase a list of e-

mail addresses of a specific demographic, geographic, or professional group from a vendor

(and addresses based on many other segmentation variables);

• panels are opt-in communities with a large number of people who have agreed to respond to

surveys, usually for some incentive;

• bulletin board/groups are sometimes asked to complete surveys or respond to new products.

Web surveys

Online survey research has many advantages over traditional contact methods:

• online survey research is fast and inexpensive: questionnaires are delivered nearly

instantaneously worldwide over the Internet without paying for postage or an interviewer.

Those who complete the questionnaires generally do so in the first three days, making the

entire process very quick. It is also easy to send multiple reminders if using e-mail

invitations;

• Web surveys reduce errors, the complexity and time involved for respondents. In addition,

respondents enter their answers, which eliminate data entry errors found in traditional

methods when converting answers from paper questionnaires;

• respondents answer questions more honestly and openly on a computer than when an

interviewer is present – and will answer sensitive questions about private matters over the

Internet. The reason may be that the computer is impersonal and no one is watching what

the respondent types.

Some disadvantages are:

• sample representativeness and measurement validity. Marketers cannot draw a scientific

probability sample because no list of Internet users currently exists. In contrast, researcher

employing in-person or mail contact methods have population lists and can draw probability

samples. Without the ability to draw a random sample, researchers cannot generalize results

to the entire population being studied;

• measurement issues: first, because of many different browsers, computer/tablet/mobile

screen sizes, and resolution settings, researchers worry that colours will look different and

measurement scales will not display properly online;

• decline of online research response rates and quality of online survey data: declining

response rates are due to questionnaires being too lengthy and respondents getting

invitations too frequently. The solutions are to shorten the questionnaires and make them

more engaging to respondents. It also helps when respondents have a special interest in the

topic (e.g., you would be more likely to respond to a survey about your favourite music band

than one about politics in some other country);

• the firm has no control over who responds (respondent authenticity);

• when researchers use e-mail to solicit responses to Web-based questionnaires, it may be

perceived as spam unless the sample consists of a firm’s customers.

Online panels

Online panels are also called opt-in communities. Usually they are paid and often receive free

products as well. Panel participants complete extensive questionnaires after being accepted, so that

researchers have information about their characteristics and behaviour. This way, when panel

members are asked to test a product, are given questionnaires to complete, or are sent coupons and

other promotions, researchers can correlate results with already collected demographic data. In turn,

the research firms can use shorter questionnaires, thus increasing response rates (i.e., no need for

demographic questions). An advantage of large panels is that smaller groups of members can be

targeted based on their behaviour or demographics.

29

Panel access is often more expensive for client firms than traditional methods of sample generation.

Also, because research firms sometimes recruit panel members in non-scientific ways, the

generalizability of survey results from panels is questionable. Large numbers of respondents and

high response rates minimize this problem, however. One other problem with panels is that they are

paid for their participation and sometimes cheat (imbrogliano) to get the participation money.

Ethics of online research

Many companies conducting marketing research on the Web have considered its “gift culture” and

decided to give something (money or free products) to respondents as appreciation for participating.

Marketers face several other ethical concerns regarding survey research on the Internet.

1. Respondents are increasingly upset at getting unsolicited e-mail requesting survey

participation.

2. Some researchers collect e-mail addresses from Internet forums and groups without

permission.

3. Some companies conduct surveys for the purpose of building a database for later

solicitation.

4. Privacy of user data is a huge issue in this medium, because it is relatively easy and

profitable to send electronic data to others via the Internet.

Client-side and server-side data collection

Client-side data collection refers to collecting information about consumer click behaviour right at

the user’s PC. Client-side approaches are to use cookies when a user visits a Web site.

Web analytics uses site log software to generate reports on numbers of users who view each page,

the location of the site visited prior to the firm’s site, and what users buy at a site – fundamental

elements in server-side data collection. For example, because of its online registration requirement,

Expedia can track visitors’ ticket purchases, browsing patterns, and how often they visit the site. It

uses this information to send special offers to customers as well as to offer services such as the fare

(tariffa) watcher.

What is real-space data collection? Why is it important?

Real-space primary data collection refers to technology-enabled approaches to gather information

offline that is subsequently stored and used in marketing databases. The most important real-space

techniques are bar code scanners and credit card terminals at brick-and-mortar retail stores.

Offline data collection is important for e-marketing because these data, when combined with online

data, paint a complete picture of consumer behaviour for individual retail firms.

Product sales data gathered by scanning the UPC at retail stores are currently used primarily for

inventory management. As UPC data go from the cash register into the computer, the software

reduces accounting inventory levels automatically and sends communication to suppliers for

replenishment of physical goods. This immediate inventory is quite efficient for retailers,

wholesalers, and manufacturers.

Marketing databases and data warehouses

Regardless of whether data are collected online or offline, they are moved to various marketing

databases. Product databases hold information about product features, prices, and inventory levels;

customer databases hold information about customer characteristics and behaviour. Transaction

processing databases are periodically copied into a data warehouse. Data warehouses are

repositories for the entire organization’s historical data (not just marketing data).

Because Web sites are so complex, often including thousands of pages from or for many different

corporate departments, content management is an important area. Many software vendors, including

Microsoft, are attempting to solve the Web site maintenance problem with their software.

30

What is cloud computing and how does it help marketers?

The current trend in data storage is toward cloud computing: a network of online Web servers in

remote locations from the company, used to store and manage data. Authorized employees can

access or upload data from any Internet connected device. The advantages to companies include no

investment cost for server space, no software investment to manage the data, and access to free

applications.

Individuals can also access cloud computing, such as the iCloud for storing all the data on an Apple

device (photos, contacts, calendar, and so forth) and retrieving it on any Apple device.

Data analysis and distribution

Four important types of analysis for marketing decision making include data mining, customer

profiling, RFM analysis (recency, frequency, monetary value), and report generating.

Data mining is the extraction of hidden predictive information in large databases through statistical

analysis. For example, a marketer might want to know whether a product’s heaviest users tend to

purchase more during particular months, or how many people in a social network share applications

with others.

Give an example of how data mining uncovers new knowledge.

Patterns uncovered by marketers help them to refine marketing mix strategies, identify new-product

opportunities, and predict consumer behaviour. Using data mining helped Fingerhut, the $2 billion

catalogue retailer, discover that customers who move their residence triple their purchasing in the

12 weeks after the move. Data mining also revealed that movers tend to buy furniture, telephones,

and decorations but not jewellery or home electronics. Fingerhut used this information to create a

special Mover’s Catalogue, selecting appropriate products from among the 15,000 items it sells. In

addition, it stopped sending other specialty catalogues to movers during the 12-week window.

Customer profiling uses data warehouse information to help marketers understand the

characteristics and behaviour of specific target groups. Through this process, marketers can really

understand who buys particular products and how they react to promotional offers and pricing

changes.

What are three criteria that RFM analysis scans a database for?

RFM analysis scans the database for three criteria. First, when did the customer last purchase

(recency)? Second, how often has the customer purchased products (frequency)? Third, how much

has the customer spent on product purchases (monetary value)? This process allows firms to target

offers to the customers who are most responsive, saving promotional costs, and increasing sales.

Knowledge management metrics

Marketing research is not cheap. Marketers use two metrics for measure the investments:

• ROI: companies want to know why they should save all those data. For hardware storage

space (either on site or in the cloud), ROI usually means total cost savings divided by total

cost of the installation.

• Total Cost of Ownership (TCO): includes the cost of hardware, software, and labour for data

storage and other items such as cost savings by reducing Web server interruption.

31 7 Connected Consumers Online

Name several consumer behaviour theories that apply both online and offline.

Many consumer behaviour principles that describe offline buying behaviour also apply to online

marketing. For example, the following consumer behaviour models apply to all buying decisions:

1. Consumers experience all or many of the buying process steps: need identification,

information search, alternative evaluation, purchase, and post purchase activities.

2. Consumers also go through a hierarchy of effects model – from first becoming aware of the

product or brand, then developing an attitude as positive or negative, and possibly

concluding with some behaviour, such as registering online or purchasing the product.

3. Marketers often use an AIDA model to entice (attirare) buyers: attention, interest, desire,

and action. Japan’s top ad agency, Dentsu, Inc., modified this model for the social media

environment by replacing “desire” with “search” and adding “share” with others: attention,

interest, search, action, and share.

4. Word of mouth has been used forever when people share their product experiences with

friends and family; however, an online share can quickly reach the entire connected world.

Identify and describe the six consumer behaviour theories described in Dr. Marsden’s work.

Consumer online buying behaviour has many additional characteristics that differ from offline

behaviour. Dr. Marsden devised (ha ideato) an interesting explanation of social commerce buying

behaviour based on consumer psychology. Key theories follow:

1. Scarcity: when a product is scarce, it will create more demand, such as a discount offered for

a “limited time only”. Groupon uses this principle when offering the “deal of the day”.

2. Popularity: formerly called the bandwagon effect, consumers are more likely to purchase a

brand that their friends or many others like and use (the most popular brand in its category

gathers more buyers). This is why many people send requests to “Like” their Facebook

pages.

3. Affinity: consumers are persuaded by friends and family because they like and trust them.

Viral marketing is based on this principle – you are likely to watch a YouTube video when

someone you trust sends the link to you or purchase something that your social network

friends highly recommend.

4. Authority: if a celebrity or other famous figure uses and recommends a particular brand,

social network, or Web site, it will become more popular. If you like Lady Gaga and she

recommends a new artist, you are more likely to purchase a CD from that artist.

5. Consistency: when individuals hold particular beliefs and attitudes about a product, it is hard

to change them. Also called cognitive consistency, this explains habitual buying patterns or

consistently using the same online news or weather site for information. It also explains why

you take a chance on Lady Gaga’s recommendation if you like her, and don’t if you dislike

her music.

6. Reciprocity: do me a favour and I owe (essere debitore) you. This is why free product

samples in grocery stores or 30-day free software trial downloads tend to increase product

sales of that item around the sampling period.

Inside the Internet exchange process

Many additional stimuli, characteristics, and processes explain consumer buying behaviour. Stimuli

that can motivate consumers to purchase one product rather than another include marketing mix

tactics and cultural, political, economic, and technological factors. Individual buyer’s characteristics

such as income level and personality also come into play, along with other psychological, social,

and personal aspects.

32

To create effective marketing strategies, e-marketers need to understand what motivates people to

buy goods and services, both in the short term and in the long term (i.e., develop brand loyalty).

What is an exchange?

Exchange is a basic marketing concept that refers to the act of obtaining a valued object from

someone by offering something in return. When consumers purchase a product, they are exchanging

money for desired goods or services. However, many other types of marketing exchanges can be

made, such as when a politician asks citizens to exchange their votes for his or her services.

Technological context

It is critical for e-marketers to understand the current state of ever-changing Internet technology if

they want to entice consumer exchanges. Three important developments affecting online consumer

behaviour today are: home connection speeds, the changing landscape of digital-content receiving

devices such as smartphones, televisions, and many more, and Web 2.0 technologies.

Concerning home connection speeds, consumers connecting with broadband exhibit different online

behaviour than do those accessing from a narrowband mobile handled device. Broadband users

enjoy more multimedia games, music, and entertainment because these download quickly. At the

other extreme, those accessing with handled devices such as small-screen smartphones tend to focus

on texting, Facebook, news, weather, stock quotes, and other data services that are low in graphics.

Concerning receiving devices, traditional paper newspaper and magazine readership is still on the

decline. Television appliances are no longer the killer receiving device and the number of TV

households connected to satellite services declined in 2012. Time shifting is also of interest: DVRs

(digital video recorder) offered by cable companies allow owners to record digital programs and

send to their PCs over the in-home wireless network. Finally, streaming music, television, and video

are gaining ground as people cut the cables and expand the use of cloud computing.

What are Web 2.0 technologies?

The term Web 2.0 is often used synonymously with social media and refers to second-generation

internet technologies behind blogs, wikis, social networks, product review sites, image and video

upload sites, and folksonomies (the technology behind classification techniques for online media,

such as collaborative tagging or social bookmarking).

The key is to learn which devices and technology applications an organization’s customers and

prospects own and prefer to use for connecting. Companies send data to customers’ digital-content

receiving devices such as the PC/laptop, electronic pager, fax machine, TV, game console box,

smartphone and many other devices such as the connected refrigerator.

Social and cultural contexts

The internet allows individuals and organizations to discuss products with each other online and to

help themselves to information, products, and practically everything they want when and where

they please. For example, consumers walk into brick-and-mortar car dealerships after chatting

online with strangers about options and carrying printed information sheets on automobile options

and pricing.

Thus, power is shifting to consumers, and marketers are not as successful with interrupt

communications (such as television commercials) as they are when they draw consumers and

engage them with relevant content. Three cornerstones for attracting today’s customers online are

reputation, relevance, and engagement.

Reputation

Brand image and reputation are based on the market’s perception. Companies with good reputations

are authentic, are honest, apologize for errors, and follow through on brand promises. In reward,

they receive more recommendations from customers, enjoy longer and more profitable

33

relationships, and sell more products and services. One of the most important social trends is that

oftentimes consumers trust each other more than they trust advertising or companies, and when the

product conversation turns negative it can hurt a company’s reputation.

What are twinsumers and how can marketers use this concept?

Twinsumers are consumers that share similar opinions, buying patterns, entertainment, and other

behaviours. They can be people you know in the physical world or online connections. For

example, travelling consumers often check Yelp for local restaurant reviews from others before

deciding where to eat. It is not enough for marketers to just observe and listen: marketers have to

join the conversation and learn from customers.

Relevance

Consumers don’t hate all advertising – they just don’t like being interrupted with irrelevant

communication. The large number of online users who opt in to receive e-mail messages from

companies they patronize enjoy and welcome relevant communication. Marketers use many

methods, such as behavioural targeting and keyword advertising, to present relevant offers to

potential customers.

What does customer engagement mean?

The key to drawing Internet users is to provide relevant content or entertainment. The three pillars

of customer engagement are:

1. content engagement: the more relevant, entertaining, and emotion-laden (carico di

emoxioni) the content, the more likely it will be to involve the audience;

2. media engagement: media engagement is the context for the content. Social media venues

such as Twitter, Facebook, and applications for the iPhone provide a compelling

(coinvolgente) environment for attracting and engaging customers;

3. engagement marketing activities: are simply the sequence used to draw users to the medium

and through the content. The best activities help consumers build a personal association

with the brand, such as when they can customize the products, comment on YouTube

videos, insert their friend’s images into brand-related content, and much more.

Other key trends

The following general social/cultural trends also have a huge effect on online exchanges:

1. Information overload: too much information overwhelms (sopraffare) consumers. It creates

an attention economy – the idea that information may be infinite, but the demand for it is

limited by human capacity. This serious problem is compounded (aggravato) by the Internet

and is one reason why consumers have little tolerance for spam (unsolicited e-mail) and

look to twinsumer recommendations for great content in videos and social media.

2. Multitasking: multitasking speeds up normal processes and lowers attention to each task.

By example, the Millenials, a consumer segment born between 1974 and 1994 (also called

Generation Y), are great multitaskers, likely to watch a television screen at home, text a

friend on the cell phone, and check sports scores via the internet on their iPad at the same

time.

3. Home and work: the boundaries between home and work are dissolving. Many U.S. Internet

users have access to the Internet both at home and at work.

4. I want what I want when I want it: consumers want to view online content and do shopping

anywhere and anytime. Convenience is critical for busy people.

5. Online oxygen: this term means that an increasing number of consumers cannot do without

their Internet access.

34 6. Connectivity: being connected means everything in this social media world. Marketers who

develop applications to help customers build their connections in an entertaining way will

win positive brand recognition.

7. In the Know: people in the know have access to information that others don’t, such as the

coolest iPhone application or which band is playing at that joint near campus. These

consumers are seen as insiders (ben informati) when they can whip out (estrarre) a mobile

device, find something quickly, and show that they are experts and are at the cutting edge

(all’ultima moda).

8. Self-service: empowered customers want to log on, find information, make purchases, track

package shipments, check their accounts, and make inquiries anytime, 24/7. Furthermore,

they want to do these tasks on a computer via e-mail, on the Web or on a smartphone – and

they want all these methods to produce identical information.

9. Privacy and data security: these are paramount (importantissimi), especially in Europe.

Customers want marketers to keep their data confidential and to ask permission before

sending commercial e-mail messages. Conversely, consumers are putting personal data in

social network profiles all over the Internet, perhaps without realizing or caring about the

public nature of this information.

Individual characteristics and resources

Individuals vary in their online behaviour. Some of this variance is based on differences in

characteristics, such as demographics and attitudes, and some is based on the resources consumers

bring to the exchange process.

What individual characteristics influence online behaviour?

Internet users have several characteristics that differentiate them from nonusers, and similarly, users

differ in their needs and desires. The first variable involves demographics (age, income, education,

ethnicity, and gender) that affect Internet use.

Second is a positive attitude toward technology. Internet users who purchase products online tend to

hold the attitude that technology helps make their lives richer and easier.

Third, online skill and experience play an important role in the exchange process. Consumers who

have been online for more than three years or have broadband connections tend to be more adept

than new users at finding information and product quickly, resulting in less frustration and less

shopping cart abandonment. Finally, social media veterans tend to use Twitter, while beginners start

with Facebook.

Next, online shoppers tend to be more goal oriented than experience oriented while shopping. Goal-

oriented behaviour often includes going to a specific Web site with a purpose mind, or searching for

the lowest price for a particular product. Experience orientation relates to having fun, bargain

hunting, or just surfing to find something new. Goal-oriented individuals appreciate the online

product selection, convenience and information availability. When consumers are looking for

experiential shopping, it makes sense that they would find this element more often in brick-and-

mortar stores than online. However, social shopping and sharing sites may increase the experience

orientation for many online shoppers.

What are the three costs that constitute a consumer’s resources for exchange?

Consumers perceive value as benefits minus costs. These costs constitute a consumer’s resources

for exchange: money, time, energy, and psychic costs.

1. Monetary costs: consumers need enough discretionary income to exchange for the goods

and services they want. What makes the Internet exchange different, however, is that

consumers usually can’t pay cash or don’t write paper checks for online transactions.

Instead, consumers pay by credit card, debit card, electronic check, or smart card. However,

not everyone is able to acquire or wants a credit card. This problem is big for e-marketers

35 targeting the huge teen market online and for those targeting consumers in countries with

low credit card availability.

Consumers with bank accounts can use debit cards or pay by electronic check. Electronic

check (also called digital money) work this way: the consumer sets up an account and

authorizes a third party’s Web site (such as PayPal) to pay a specified amount and withdraw

(prelevare) funds from the user’s checking account. Finally, smart cards are used in many

countries and are becoming popular in the United Kingdom. Also called splash plastic, smart

cards have an electronic chip that can be coded to hold a certain amount of funds, payable by

the bank of by a depository company.

2. Time costs: time poverty is a problem for today’s consumers, so they want to receive

appropriate benefits for the time they spend online. Time resource is a critical topic because

online attention from consumers is a desirable and scarce commodity. Some believe that

consumers pay more focused attention to Web sites than to the content in any other medium,

except perhaps e-mail and text messages. When in front of a television, consumers are easily

distracted by other people or activities in the environment. The same holds true for the

passivity of radio listening. Consumers seem to pay more attention to print media but may

still flip pages quickly.

Whether consumers are in a goal-oriented or experiential shopping trip online, they are

focused.

3. Energy and psychic costs: are closely related to time resources. Sometimes it is just too

much trouble to turn on the computer, log on to the Internet, and check e-mail, especially for

dial-up users. This factor accounts (giustifica) for the rising popularity of short text

messaging (SMS) via cell phones and other mobile devices. Smartphones allow users to

browse the Web or e-mail anywhere, anytime.

Consumers apply psychic resources when Web pages are hard to figure out or when facing

technological glitches (problemi tecnici). At one time or another, all users abandon carts due

to technical problems and other issues. However, much of the hassle (scocciatura) for

today’s online shopper involves unexpectedly high shipping or other transaction costs. Other

reasons for shopping cart abandonment are reluctance to input credit card and other personal

information and unanswered questions about the product or return policies.

How can e-marketers facilitate Internet exchange?

Browser favourites and social bookmarks (segnalibri) help consumers quickly jump to their

favourite online retailer when looking for a product or making a purchase. In addition, e-mail

messages or social network widgets often contain hyperlinks to bring consumers directly to specific

information, news reports, or advertised specials. Automated e-mails facilitate the exchange

process, like that of Amazon which sends consumers a link to a new book by a previously

purchased author.

Exchange outcomes

People do only six basic things online:

1. Connect: unlike any other medium, the Internet allows consumers to interact with

individuals and organizations using multimedia in two-way communication. Nearly all

Internet users send e-mail. E-mail is still the Internet’s killer app worldwide, in spite of spam

and social media. Consumers communicate online with e-mail, text messages, Tweets, and

Facebook wall posts because it is an inexpensive and convenient way to keep in touch, and

because it is usually text based so it can be easily accomplished with a slow modem or over

a wireless handheld device. In addition, consumers make new connections with people and

36 business partners they meet online that sometimes carry over to (continuano) the physical

world.

Consumers also spend time instant messaging, use the Internet to make phone calls (Skype),

and find people to date online. Consumers exchange time and energy to build relationships

with friends and family, and even to work out (risolvere) problems with companies.

In what ways do consumers create content for the Web?

2. Create: this need to connect was one springboard (trampolino di lancio) for the Web’s social

networking sites, where users can create profiles and connect with friends, business, and

colleagues. Content creation occurs when these users upload pictures and other content on

these sites. It is the highest form of user engagement because users are participating by

adding to the Web’s offerings.

3. Enjoy: many consumers use the Internet to enjoy entertainment. One of the Internet’s big

promises is audio and visual entertainment. The numbers of users who watch video online

and download music will continue to increase in the future for the following reasons: first,

all television content is now transmitted digitally. Second, devices such as the DVR allow

TV programs to be delivered on demand. In addition, services such as Netflix store

programming for Internet delivery to either television or PC anytime. Third, consumers are

cutting the cable and using Wi-Fi for their TV service.

4. Learn: consumers access information to learn things online such as news, driving directions,

travel information, jobs, weather, sports scores, and radio broadcasts over the internet. The

majority of Internet users use search engines and 53% use Wikipedia.

5. Trade: most consumers shop, buy, or conduct other transaction-oriented activities online.

The majority of Internet users seek information online prior to buying products. Sometimes

they use this information to purchase online, and sometimes they purchase at a local brick-

and-mortar store – many consumers purchase outside of the Internet based on information

they get online.

6. Give: many people create art, text, and other things purely for the benefit of others.

“Generation Generosity” is one of the top global consumer trends. This includes financial

donations as well as conversation gifts of care and sympathy online. At least a quarter of

American consumers donates to causes via the Internet or helps others in need online.

8 Segmentation, Targeting, Differentiations, and Positioning Strategies

Define the terms market segmentation, targeting, and positioning.

Marketing segmentation is the process of aggregating individuals or businesses along similar

characteristics that concern the use, consumption, or benefits of a product or service. The result of

market segmentation is groups of customers called market segments. Segments are worth targeting

separately only when they have bigger differences between them than within them. For example, if

Internet users behave differently at work than at home, marketers can capitalize on these differences

by targeting each as a separate segment.

Market targeting is the process of selecting the market segments that are most attractive to the

company. Some criteria companies use to select segments for targeting include accessibility,

profitability, and growth potential.

Positioning is a strategy to create a desired image for a company and its products in the minds of a

chosen user segment (consumers, business or government buyers).

Three markets

Three important markets that both sell to and buy from each other are: businesses, consumers, and

governments. After business-to-consumer (B2C) and business-to-business (B2B) markets, the

business-to-government (B2G) and consumer-to-consumer (C2C) markets are where most e-

business activity occurs.

37

Business market

The business market involves the marketing of products to businesses, governments, and

institutions for use in the business operation, as components in the business products, or for resale.

The online B2B marketing is huge because a higher proportion of companies are connected to the

Internet than consumers, especially in developing countries.

Government market

The U.S. Federal government is the world’s largest buyer. Businesses wishing to sell to

governments face challenges unique to this market. Government agencies have many rules for

suppliers to follow regarding qualifications, paperwork, and so on. Additionally, companies often

must compete to be on the government list of approved suppliers, and then compete yet again for

specific work contracts through a bidding process.

Consumer market

The consumer market involves marketing goods and services to the end consumer.

Define the four main segmentation bases and list at least two segmentation variables for each.

Marketers can base their segmentation of consumer markets on demographics, geographic location,

psychographics, behaviour, and many combinations of these.

Companies often combine bases and focus on categories such as geodemographics (geography and

demographics). Marketers can build segments using any combination of variables that make sense

for their industry.

In any geographic market, what factors must be noted prior to planning Internet strategies

and tactics?

Product distribution strategy is a driving force behind geographic segmentation. A consumer goods

online retailer will want to reach only customers in countries where it distributes its products.

Similarly, companies offering services online will only sell to geographic areas where they can

provide this service and follow-up customer assistance in the appropriate language. Before an

organization decides to use the Internet channel, it must examine the proportion of Internet users in

its selected geographic targets. For example, would it make sense to build a Web site that serves

citizens of Samoa, where the Internet adoptions rate is only 6.6%?

Why are millennials and kids important market segments for e-marketers? Describe the traits

of the millennial market segment.

Two market segments that have recently caught the attention of e-marketers are millennials and

kids. These are important because they represent the Internet’s future. Millennials are confident,

connected, and open to change. They are the hyper connected generation. Millennials are able to

handle multitasking and information overload better than older intent users because they grew up

with the Internet. They are heavy social networking users, sleep with their cell phones, and live on

text messages.

Millennials are an important market segment because they are the first generation able to control

information quickly, use many technology gadgets at once, and totally ignore marketers. More than

half of the Millennials watch television and use the Internet at the same time. They use many media

channels, such as instant messaging, e-mail, Facebook chat, iPods or other MP3 players, online

virtual games, and virtual worlds.

Also kids are an important market segment. The biggest activity for the under 11-year-old segment

is online video watching. They also play games online. These kids often know their way around the

computer, cell phone, or other internet-connected device before they learn to read or ride a bike.

Many parents worry about the security and privacy of their kids online but they can’t stop marketers

from targeting this huge potential new market. Instead, many parents censor Web content for

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children. Kids are responsive to marketing messages; however, e-marketers must be careful not to

irritate their parents who might perceive promotional messages as manipulation.

Psychographic segments

User psychographics include personality, values, lifestyle, activities, interests, and opinions (AIO).

Personality is individual characteristics and habits. Values are deep convictions such as religious

and green environment beliefs. Lifestyles and activities refer to nonproduct-specific behaviour such

as playing sports, writing product reviews online, or eating out. Interests and opinions are attitudes

and beliefs people hold. As an example, some people believe that Facebook is a waste of time, and

others think they could not exist without e-mail.

Give examples of some online communities formed around social media and Web sites.

The Internet is ideal for gathering people from all corners of the globe into communities with

similar interests and tasks. Social media and other online communities attract users, who then post

their comments and profiles and upload content for other to see. There are 10 types of online

communities ripe with marketing opportunity.

Perhaps the most important type is social networking – the practice of expanding the number of

one’s business and social contacts by making connections through individuals online. LinkedIn is a

39

great example of a professional network. People trust other like them more than many company

professionals, so social networking and other communities will continue to grow in importance.

Three ways can be used to target online communities:

1. a company can build a community at its own Web site through online discussion groups,

bulletin boards, and online events or through company-owned social network pages;

2. companies can advertise on another company’s community site or via blog comments and

e-mails to community members;

3. many companies actually join the communities and listen and learn from others who are

talking about their industry.

Why would an e-marketer want to create a Web site for building a community?

Several advantages and disadvantages characterize community targeting online. When an

organization builds and maintains the community, it can present products and controlled messages

customized to the group’s interests. Communities are good places for companies to learn about

customer problems and suggestions. Conversely, online community conversation will often gather

negative product postings and offensive language. When companies sponsor a community, they

must watch the content; however, if they edit it too heavily they will discourage future postings.

Finally, it takes a lot of time to participate in and monitor social media and other online

communities.

Attitudes and behaviours

Attitudes are internal evaluations about people, products, and other objects. They can be either

positive or negative, but the evaluation process occurs inside a person’s head. Behaviour refers to

what a person physically does, such as talking, eating, registering at a Web site, posting a comment

on a blog, “Liking” a Facebook page, or visiting a Web site to shop or purchase a product. However,

marketers do not include product-related behaviours in psychographic segmentation, but product

behaviours are such a vital segment descriptor that they form an entirely separate category.

What is technographics? Which three variables are combined to make technographics work?

Forrester Research measures consumer and business attitudes toward technology with a system

called Technographics. Consumer Technographics discovers how consumers think about, buy, and

use technology in many categories of devices and media in health care, financial services, retail, and

travel industries, among others.

Technographics work combining three specific variables. First, researchers ask questions to

determine whether a person is optimistic or pessimistic toward technology. Next, they measure a

user’s income level because it is an important determinant of online shopping behaviour. Finally,

they query users about their primary motivation for going online.

Technology optimism declines with age. Older users tend to have a more negative attitude toward

technology. Men tend to be more optimistic about technology, and peer pressure can increase

optimism in all demographic groups. That is, when friends discuss social media, texting, and Web

sites, pessimists often rethink their positions. With regard to income, certain low-income groups

such as college students and young families are also optimistic about technology.

How do these findings translate to online purchasing? First, low-income pessimists are not a good

target for e-commerce companies. Second, early adopters are high-income technology optimists,

thus identifying the first consumers to shop online. Conversely, laggards are low-income pessimists

who will be last to shop online.

List some of the influencers in today’s market scenario.

Many online marketers target influential people who are opinion leaders online. The field of

influencers include the following:

40 • online journalists: traditional journalists operating online can also influence readers with

their articles;

• industry opinion leaders: these vary by industry, but commonly include industry analysts,

traditional journalists, prominent bloggers, and CEOs of leading firms;

• influential social network authors: when a famous person tweets about a restaurant or hotel

he likes, readers pay attention.

Individuals often post videos or images of product malfunctions online. Of course, they also post

positive product comments but those don’t tend to get the same high readership.

It is important for marketers to determine who the influential are in their industry. They must also

decide how to entice them to write about the company/products and to monitor for product and

company mentions online.

Behaviour segments

Two commonly used behavioural segmentation variables are benefits sought (desiderati) and

product usage. Marketers using benefit segmentation often form groups of consumers based on the

benefits they desire from the product.

Product usage is applied to segmentation in many ways. Marketers often segment by light, medium,

and heavy product usage. Another approach is to categorize consumers as brand loyal, switchers

(who don’t care which site they use), and nonusers of the product.

Benefit segments

If marketers can form segments based on the benefits sought by users, they can design products and

services to meet those needs. To determine benefits sought marketers can evaluate online activities.

Marketers also check which Web sites are the most popular.

Usage segments

Marketers also segment Internet users according to many technology-use characteristics such as

smartphone, tablet, or PC access and which browser they use. Two important Internet usage

segments are:

• mobile access: the type of internet connection and the information-receiving appliance affect

usage behaviour. The main two reasons cell owners use the Internet are because it is

convenient and the cell is always with them.

Wireless users do a lot more than just talk on their cell phones and receive e-mail. They send

and receive all kind of voice, text, video, music, and graphic data – anyplace, anytime.

Wireless users also track information on package shipment, stock quotes, airline schedules

and changes, and news;

• online engagement level: many users actively participate by adding content for others to

view. There are several forms of content creation: uploading photos, rating products, tagging

online content, posting comments to a blog, creating a blog, and creating an avatar for a

virtual world. Forrester Research categorized social media users according to usage

segments such as creators, conversationalists, and critics – the three most highly engaged

segments online. Curators are one important segment not in this typology. Curators

traditionally are people who handle the art and other collections in museums and galleries.

Online, curators gather other people’s content and upload or share it on their social media

sites. Pinterest is one image-sharing site that is completely populated by curators.

Industry-specific usage segments

41

Segmenting by usage varies widely from one industry or business type to the other. For example,

research indicates that visitors to car sites behave differently from visitors to other e-commerce

sites. Forrester identified three visitor segments for car Web sites:

• explorers are the smallest group, but almost half buy their new vehicle within two months of

visiting a car site. They want a convenient, explicit buying process;

• off-roaders tend to do a lot of research online and, subsequently, are likely to purchase in an

offline showroom;

• cruisers visit car sites frequently, but only 15% buy a car in the short term. Still, they have a

strong interest in cars and heavily influence the car purchases of others, making them

important visitors.

Targeting online customers

After reviewing many potential segments, marketers must select the best for targeting. For this

selection, they review the market opportunity analysis, consider findings from the SWOT analysis,

and generally look for the best fit between the market environment and the firm’s expertise and

resources.

Next, e-marketers select a targeting strategy. This might include deciding which targets to serve

online, which in the brick-and-mortar location, and which via catalogue mailing. The Internet is

especially well suited (si adatta) for two targeting strategies:

1. niche marketing occurs when a company select one segment and develops one or more

marketing mixes to meet the needs of that segment;

2. micromarketing, also know as individualized targeting, occurs when a company tailors all or

part of its marketing mix to a small number of people. Taken to its extreme, it can be a target

market of one person.

The Internet’s big promise is individualized targeting: giving individual consumers exactly what

they want at the right time and right place.

Differentiation online

Prior to designing any marketing mix strategies, the company makes differentiation and positioning

decisions based on target market needs and competitive offerings. The goal is to obtain a differential

advantage: 1) a property of any product that is able to claim a uniqueness over other products in its

category. To be a differential advantage, the uniqueness must be communicable to customers and

have value for them. The differential advantage of a firm is often called its distinctive competencies,

and 2) advantage unique to an organization; an advantage extremely difficult to match by a

competitor. In short, differentiation is what a company does to the product, as opposed to

positioning, which is what it does to the mind by convincing the market that the product has a

differential advantage.

Using examples, specify some dimensions by which companies can differentiate their offerings

on the Internet.

A company can differentiate its offering along many dimensions, for example:

• product innovation: Pinterest was a brand new concept online: saving images online and

creating an online bulletin boards, called a pinboard;

• mass customization: Blue Nile has very different features compared to other similar

jewellery sites because visitors can customize diamond rings and other jewellery online;

• service differentiation: Amazon excels in customer service;

• customer relationship management (CRM): CRM is closely related to service differentiation

and involves gaining a 360-degree view of the customer through many different touch

points;

• personnel differentiation;

42 • channel differentiation: Netflix differentiates by offering streaming television programming

and movies to internet-connected devices, such as televisions, tablets, computers, and

smartphones;

• image differentiation;

• site atmospherics; this involves a Web or social media page that is user-friendly, provides

appropriate content, and has a great visual design. Companies can differentiate their sites

through graphic design, typography, scaling for smartphone/small-screen viewing, social

media integration (e.g., log in with Facebook), and advanced technology behind the sites;

• user-generated content (UGC): a company can differentiate by using effective

crowdsourcing to generate content or simply by providing an active online space for users to

post comments and ideas. Starbucks did an excellent job with My Starbucks Idea, inviting

customers to propose new products, experience, and service or store improvements and vote

for the best ideas on a dedicated Web page;

• efficient and timely order processing: when you order something online, sometimes it

arrives in a very short time and the company sends several confirmation e-mails to update

the delivery status.

Online positioning bases

The first step in positioning is to determine the product category in which the brand competes. For

example, when tablets were first introduced, it was unclear whether they were competing with

laptops or smartphones. Once the company decides who the direct competition is, then it determines

whether or not the brand is differentiated in that product category and thus has a competitive

advantage to form the basis for competitive positioning.

E-marketers often position based on technology (the new iPad tablet or the smartphone with the

most apps), benefits (fastest product delivery from a Web site order), user category (Nick is one of

the most popular sites for kids), or competitive position (the Android is less expensive than an

iPhone).

43 9 Product: The Online Offer

Many products capitalize on Internet properties

A product is a bundle of benefits that satisfies the needs of organizations or consumers and for

which they are willing to exchange money or other items of value. The term product includes items

such as tangible goods, services, ideas, people, and places. All of these can be marketed on the

Internet.

Some new products such as search engines, smartphone apps, and social networks are unique to the

Internet, others such as music simply use the Internet as a distribution channel.

To create new products, organizations begin with research to determine what is important to

customers and proceed by designing strategies to deliver more value than do competitors.

Creating customer value online

Companies must employ strategies that result in customer value. Value = Benefits – Costs. First,

value is the entire product experience. It starts with a customer’s first awareness of a product,

continues at all customer touch points (including things such as the Web site experience and e-mail

from a firm), and ends with the actual product usage and postpurchase customer service. It even

includes the compliments a consumer gets from friends while whipping out (tirare fuori) that iPad,

or the fun he or she has when messaging friends on Skype or Facebook. Second, value is defined by

the mental beliefs and attitudes held by customers. Third, value involves customer expectations; if

the actual product experience is worst than their expectations, customers will be disappointed.

Fourth, value is applied at all price levels.

The Internet can increase benefits and lower costs, but it can also work in reverse.

Product benefits

As Internet technology evolves, user needs change, and the opportunities continue to expand. To

capitalize on these opportunities, marketers must make five general product decisions that comprise

its bundle of benefits to meet customer needs: attributes, branding, support services, labelling, and

packaging.

Attributes

Product attributes include overall quality and specific features (colour, taste, style, size, and online

speed of service, or the ability to connect and personalize). Benefits, on the other hand, are the same

features from a user perspective.

Mass customization is a very important benefit that occurs online. The Internet offers users the

unique opportunity to customize products automatically without leaving their keyboards. For

example, Blue Nile, an online jewellery retailer, allows Web users to select from among many

gemstone features and pick a ring setting to match.

User personalization is another form of customization. Through Web site registration and other

techniques, Web sites greet users by name and suggest product offerings of interest based on

previous purchases. For instance, a returning customer to Amazon gets an item with his name on it:

“Hello Sam. We have recommendations for you”. Clicking on the link reveals a list of items that

Sam might be interested in examining, based on his previous purchases from Amazon or those of

similar buyers. Amazon allows individuals to create wish lists, thus shifting this data storage

function from the customer to the retailer: more benefits. Another form of personalization occurs

when sites allow registration via a visitor’s Facebook or other social network membership. One big

benefit is about making it convenient for the customer.

Branding

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A brand includes a name (McDonald’s), a symbol (golden arches), or other identifying information.

When a firm registers that information with the U.S. Patent Office, it becomes a trademark and is

legally protected from imitation.

A brand is much more than its graphic and verbal representation in marketing materials. It is:

• a promise to customers;

• beliefs in the market’s mind about what the brand delivers;

• innovation to the product that continues to improve on the brand promise;

• generates trust in customers that the brand will deliver on the promise;

• the sum of all customer touch point experiences;

• a relationship between buyer and brand.

Delivering on this promise builds trust, lowers risk, and helps customers by reducing the stress of

making product switching decisions. Reducing stress is especially important online because of

concern over security and privacy issues and because firms and customers are often separated by

large distances. Brand names such as Amazon and Apple generate consumer trust, add to customer-

perceived benefits, and thus can command higher prices from consumers.

Customers and prospects become aware of brands and develop beliefs and attitudes based on every

brand contact, also called touch points.

Brand equity is the intangible value of a brand, measured in dollars.

What is a sweet spot? Explain with examples.

A great brand enters the popular culture and touches consumers. Popular culture trends in music,

entertainment, sports, and more help the brand touch consumers and remain current. For this reason,

many firms use celebrities as spokespeople and sponsor sporting events that interest their target

markets. For example, the iPad found the branding sweet spot when it gave customers the ability to

flip magazine pages and enjoy many other forms of entertainment and personal connection while on

the move. Skype found the sweet spot when it brought Internet telephony to the global masses, and

LinkedIn hit the spot for business networking.

Brand relationships and social media

Every brand marketer’s dream are customers who live, breathe, wear, and talk about their brand.

Such is the case for Harley-Davidson motorcycle owners, Apple computer and iPod fans, Google

searches.

List the five levels of brand relationship intensity as devised by Duncan.

Duncan discusses five possible levels of brand relationship intensity:

• advocacy: customers tell others about their favourite brands, both online and offline;

• community: customers in communities, such as Facebook, communicate about brands with

each other;

• connection: customers communicate with the company between purchase events;

• identity: customers proudly display the brand name of products they use;

• awareness: consumers include the brand in their list of possible purchases.

The fewest customers are at the highest level, where they have become advocates who tell everyone

how great their brand is.

What are the three roles for social media in branding?

1. Build trust through social media relationships with consumers;

2. differentiate the brand in social media to enhance the emotional connections;

3. build brand loyalty in social media by taking care of consumers.

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DETTAGLI
Corso di laurea: Corso di laurea magistrale in marketing e management
SSD:
A.A.: 2017-2018

I contenuti di questa pagina costituiscono rielaborazioni personali del Publisher Ladyfranky di informazioni apprese con la frequenza delle lezioni di Digital marketing and e-commerce advanced e studio autonomo di eventuali libri di riferimento in preparazione dell'esame finale o della tesi. Non devono intendersi come materiale ufficiale dell'università Bocconi - Unibocconi o del prof Raccagni Deborah.

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