Oct 15 2018 1150

timer Asked: Oct 17th, 2018
account_balance_wallet $20

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250 words minimum with 2 scholarly sources in APA format. Your opinion is important but this exercise is also about critical thinking. These questions "mirror" the assigned weekly text and information can be found in the assigned reading. You can also add additional research very easily via the internet. If you use other sources be sure and include in-text citations and references.

Which companies that you do business with have a philanthropic focus? How did this focus influence your decision to buy from those companies Be sure and include at least two references and the associated in-text citations in your initial response.

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13 Digital Marketing and Social Networking Learning Objectives After reading this chapter, R you will be able to: I LO 13-1 Define digital media and digital marketing, and recognize their C increasing value in strategic planning. LO 13-2 Demonstrate the role of digital marketing and social networking in R today’s business environment. LO 13-3 A D affect the marketing mix. Show how digital media , LO 13-4 Define social networking, and illustrate how businesses can use different types of social networking media. LO 13-5 A considerations in digital media. Identify legal and ethical LO 13-6 Evaluate a marketer’s dilemma and propose recommendations. Chapter Outline Introduction Growth and Benefits of Digital Communication Using Digital Media in Business Digital Media and the Marketing Mix Social Networking Types of Consumer-Generated Marketing and Digital Media Social Networks Blogs and Wikis Media Sharing Virtual Worlds Mobile Marketing Applications and Widgets Using Digital Media to Reach Consumers Using Digital Media to Learn about Consumers Legal and Social Issues in Internet Marketing Privacy Identity Theft Online Fraud Intellectual Property Digital Media’s Impact on Marketing fer79397_ch13_390-418.indd 390 D R I E N N E 2 4 7 9 T S 06/11/14 10:55 AM Enter the World of Business Microblog Marketing: Reaching Millions R Click of Consumers with One I Companies such as Starbucks and Mercedes Benz are using microblog sites C like Sina Weibo as a way to reach consumers in China. Sina Weibo, the Chinese version of Twitter but with more socialA networking features, has approximately 309 million active users, of which 70Rpercent check their pages every day. Users can post up to 140 characters on Dthe site. More than 1,000 multinational businesses—including IKEA, Royal Caribbean International, and Nokia—use , this platform for marketing, brand building, and gathering customer feedback. Because of the large user base, marketing over this channel is not only useful A D keting campaign to sell more than 600 of its smart cars over Weibo. These cars R sold in about eight hours. Starbucks also received significantIreturns by marketing and communicating with customers on Sina Weibo. E With more than 700,000 followers, the N to promote Frappuccino sales. Over company launched an $80,000 campaign a two-month period, Starbucks madeN60 Weibo posts, which were reposted and commented on approximately 200,000 times. As a result, more than E but also cost-effective. For example, Mercedes Benz launched a digital mar- 95 million friend-to-friend recommendations were made, and the company saw a 14 percent growth in sales. 2 4 dress customer feedback, whether it is positive or negative. This has helped 7 companies reduce the impact of bad public relations and successfully market 9 to the largest population in the world.1 T S The quick comments and responses allow companies to immediately ad- fer79397_ch13_390-418.indd 391 06/11/14 10:55 AM 392 Part 5 Marketing: Developing Relationships Introduction2 LO 13-1 e-business carrying out the goals of business through utilization of the Internet The Internet and information technology have dramatically changed the environment for business. Marketers’ new ability to convert all types of communications into digital media has created efficient, inexpensive ways of connecting businesses and consumers and has improved the flow and the usefulness of information. Businesses have the information they need to make more informed decisions, and consumers have access to a greater variety of products and more information about choices and quality. The defining characteristic of information technology in the 21st century is accelerating change. New systems and applications advance so rapidly that it is almost impossible to keep up with the R latest developments. Startup companies emerge that quickly overtake existing approaches to digital media. When Google first arrived I on the scene, a number of search engines were fighting for dominance. With its fast, easy-to-use search engine,CGoogle became number one and is now challenging many industries, including A advertising, newspapers, mobile phones, and book publishing. Despite its victory, Google is constantly being challenged itself by competitors like Yahoo! and Baidu. R Baidu is gaining ground with 77 percent of the Chinese search engine market. Baidu has aggressively D entered the mobile technology market and has suc,cessfully overtaken Google’s market share. It is estimated that Baidu’s market share of total mobile search queries in China is 57 percent.3 Social netA working continues to advance as the channel most D observers believe will dominate digital communication in the near future. Today, people spend more R time on social networking sites, such as Facebook, Ithan they spend on e-mail. E In this chapter, we first provide some key definitions related to digital marketing and social netN working. Next, we discuss using digital media in business and digital marketing. We look at marketN ing mix considerations when using digital media E and pay special attention to social networking. Then we focus on digital marketing strategies— particularly new communication channels like social 2networks—and consider how consumers are chang4ing their information searches and consumption to fit emerging technologies and trends. 7behavior Finally, we examine the legal and social issues asso9ciated with information technology, digital media, and e-business. T S Growth and Benefits of Digital Communication Amazon’s mobile applications make it easier for users to shop and purchase items on the go. fer79397_ch13_390-418.indd 392 Let’s start with a clear understanding of our focus in this chapter. First, we can distinguish e-business from traditional business by noting that conducting e-business means carrying out the goals of business 06/11/14 10:55 AM Chapter 13 Digital Marketing and Social Networking 393 TABLE 13.1 Characteristics of Digital Marketing Characteristic Definition Example Addressability The ability of the marketer to identify customers before they make a purchase Amazon installs cookies on a user’s computer that allows it to identify the owner when he or she returns to the website. Interactivity The ability of customers to express their needs and wants directly to the firm in response to its marketing communications Texas Instruments interacts with its customers on its Facebook page by answering concerns and posting updates. Accessibility The ability for marketers to obtain digital information Google can use web searches done through its search engine to learn about customer interests. Connectivity Control R I The ability for consumers to be connected with marketers along with other consumers C A The customer’s ability to regulate the information they R view as well as the rate and exposure to that information D , The Avon Voices website encouraged singers to upload their singing videos, which can then be voted on by other users for the chance to be discovered. Consumers use Kayak to discover the best travel deals. through the use of the Internet. Digital media are electronic media that function A we mean media available using digital codes—when we refer to digital media, via computers and other digital devices, includingD mobile and wireless ones like smartphones. R Digital marketing uses all digital media, including the Internet and mobile and interactive channels, to develop communication and I exchanges with customers. Digital marketing is a term we will use often, because we are interested in all types E of digital communications, regardless of the electronic channel that transmits the data. Digital marketing goes beyond the Internet and N includes mobile phones, banner ads, digital outdoor marketing, and social networks.N The Internet has created tremendous opportunities for businesses to forge relationE ships with consumers and business customers, target markets more precisely, and even reach previously inaccessible markets at home and around the world. The Internet also facilitates business transactions, allowing companies to network with manufacturers, 2 serve customers more quickly wholesalers, retailers, suppliers, and outsource firms to and more efficiently. The telecommunication opportunities 4 created by the Internet have set the stage for digital marketing’s development and growth. 7 Digital communication offers a completely new dimension in connecting with others. Some of the characteristics that distinguish digital from traditional communi9 cation are addressability, interactivity, accessibility, connectivity, and control. These T terms are discussed in Table 13.1. digital media electronic media that function using digital codes via computers, cellular phones, smartphones, and other digital devices that have been released in recent years digital marketing uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers S Using Digital Media in Business LO 13-2 The phenomenal growth of digital media has provided new ways of conducting business. Given almost instant communication with precisely defined consumer groups, firms can use real-time exchanges to create and stimulate interactive communication, forge closer relationships, and learn more accurately about consumer and supplier needs. Consider that Amazon.com, one of the most successful electronic businesses, fer79397_ch13_390-418.indd 393 06/11/14 10:55 AM 394 Part 5 Marketing: Developing Relationships ranked number 49 on the Fortune 500 list of America’s largest corporations. Amazon is a true digital marketer, getting 40 percent of its revenue from international sales.4 Many of you may not remember a world before Amazon because it has completely transformed how many people shop. Because it is fast and inexpensive, digital communication is making it easier for businesses to conduct marketing research, provide and obtain price and product information, and advertise, as well as to fulfill their business goals by selling goods and services online. Even the U.S. government engages in digital marketing activities—marketing everything from Treasury bonds and other financial instruments to oil-drilling leases and wild horses. Procter & Gamble uses the Internet as a fast, cost-effective means for marketing research, judging consumer demand for potential R new products by inviting online consumers to sample new-product prototypes and provide feedback. If a product Igets rave reviews from the samplers, the company might decide to introduce it. ByC testing concepts online, companies can save significant time and money in getting new products to market. A are evolving that would not exist without digital New businesses and even industries media. Vimeo is a video websiteR founded by filmmakers to share creative videos. The site lets users post or view videos from around the world. It has become the third most D and Netflix.5 popular video website after YouTube The reality, however, is that Internet markets are more similar to traditional markets , than they are different. Thus, successful digital marketing strategies, like traditional business strategies, focus on creating products that customers need or want, not merely developing a brand name or reducing A the costs associated with online transactions. Instead of changing all industries, digital technology has had much more impact in certain industries where the costD of business and customer transactions has been very high. For example, investment trading R is less expensive online because customers can buy and sell investments, such as stocks and mutual funds, on their own. Firms such I as Charles Schwab Corp., the biggest online brokerage firm, have been innovators in promoting online E trading. Traditional brokers such as Merrill Lynch have had to follow with online trading for their customers. N Because the Internet lowers the cost of communication, it can conN to any industry or activity that depends on the flow tribute significantly of digital information E such as entertainment, health care, government services, education, and computer services like software development. The publishing industry is transitioning away from print newspapers, magazines, and 2 books as more consumers purchase e-readers, like the Kindle Fire or iPad, or read the news online. Even your textbook is 4 available electronically. Because publishers save money on paper, ink, and shipping, many 7 times electronic versions of books are cheaper than their paper counterparts. 9 can also improve communication within and beDigital media tween businesses. T In the future, most significant gains will come from productivity improvements within businesses. Communication S function, and improving the speed and clarity of is a key business communication can help businesses save time and improve employee problem-solving abilities. Digital media can be a communications backbone that helps to store knowledge, information, and records in management information systems so co-workers can access it when Home Depot has an application that connects faced with a problem to solve. A well-designed management informamobile users to its website to search and shop tion system that utilizes digital technology can, therefore, help reduce for products. fer79397_ch13_390-418.indd 394 06/11/14 10:55 AM Chapter 13 Digital Marketing and Social Networking 395 confusion, improve organization and efficiency, and facilitate clear communications. Given the crucial role of communication and information in business, the long-term impact of digital media on economic growth is substantial, and it will inevitably grow over time. Firms also need to control access to their digital communication systems to ensure worker productivity. This can be a challenge. For example, in companies across the United States, employees are surfing the Internet for as much as an hour during each workday. Many firms are trying to curb this practice by limiting employees’ access to instant messaging services, streaming music, and websites with adult content.6 Digital Media and the Marketing R Mix LO 13-3 While digital marketing shares some similarities with I conventional marketing techniques, a few valuable differences stand out. First, digital media make customer comC help companies reach new munications faster and interactive. Second, digital media target markets more easily, affordably, and quickly than A ever before. Finally, digital media help marketers utilize new resources in seeking out and communicating with R marketing is the ability of customers. One of the most important benefits of digital marketers and customers to easily share information. DThrough websites, social networks, and other digital media, consumers can learn about everything they consume , and use in their lives, ask questions, voice complaints, indicate preferences, and otherwise communicate about their needs and desires. Many marketers use e-mail, mobile phones, social networking, wikis, media sharing, blogs, videoconferencing, and other technologies to coordinate activities and A communicate with employees, customers, and suppliers. Twitter, considered both a social D network and a micro-blog, illustrates how these digital technologies can combine to create new communication R opportunities. I Nielsen Marketing Research revealed that consumers now spend more time on social networking sites than they do on e-mail, and social network use is still growE ing. Figure 13.1 shows the use of social media among Internet users in select counN new markets through these tries. With digital media, even small businesses can reach N E FIGURE 13.1 Percent 100 90 80 70 60 50 40 30 20 10 0 88 73 48 Brazil fer79397_ch13_390-418.indd 395 86 China Egypt Philippines 2 486 7 9 T S Russia Social Networking Use in Select Countries 79 73 Turkey United States Note: Internet users in the United States represent adults who said they use the Internet or e-mail or connect via a mobile device “at least occasionally.” International Internet users represent adults who use the Internet at least occasionally or own a smartphone. Source: Lee Rainie and Jacob Poushter, “Emerging Nations Catching Up to U.S. on Technology Adoption, Especially Mobile and Social Media Use,” Pew Research Center, www.pewresearch. org/fact-tank/2014/02/13/ emerging-nations-catching-up-to-us-on-technology-adoption-especiallymobile-and-social-media-use/ (accessed May 19, 2014). 06/11/14 10:55 AM 396 Part 5 Marketing: Developing Relationships inexpensive communication channels. Brick-and-mortar companies like Walmart utilize online catalogs and company websites and blogs to supplement their retail stores. Internet companies like Amazon and Zappos that lack physical stores let customers post reviews of their purchases on their websites, creating company-sponsored communities. One aspect of marketing that has not changed with digital media is the importance of achieving the right marketing mix. Product, distribution, promotion, and pricing are as important as ever for successful online marketing strategies. More than 40 percent of the world’s population now uses the Internet.7 That means it is essential for businesses large and small to use digital media effectively, not only to grab or maintain market share but also to streamline their organizations and offer customers R entirely new benefits and convenience. Let’s look at how businesses are using digital I strategies on the web. media to create effective marketing Product Considerations. CLike traditional marketers, digital marketers must anticipate consumer needs and A preferences, tailor their goods and services to meet these needs, and continually upgrade them to remain competitive. The connectivR the opportunity for adding services and can ity created by digital media provides enhance product benefits. SomeDproducts, such as online games, applications, and virtual worlds, are only available via digital media. The more than 800,000 applica, tions available on the iPad, for instance, provide examples of products that are only 8 available in the digital world. Businesses can often offer more items online than they could in a retail store. Additionally, Netflix offers a much wider array of movies and A games than the average movie rental stores and original content, along with a onemonth free trial, quick deliveryDand easy returns, online video streaming of some movies, and no late fees. NetflR ix also prides itself on its recommendation engine, which recommends movies for users based on their previous rental history and how I As Netflix demonstrates, the Internet can make it they rate movies they have seen. much easier to anticipate consumer E needs. However, fierce competition makes quality product offerings more important than ever.9 N Distribution Considerations. The Internet is a new distribution channel Nthe right time, at the right place, and in the right for making products available at quantities. Marketers’ ability toE process orders electronically and increase the speed of communications via the Internet reduces inefficiencies, costs, and redundancies while increasing speed throughout the marketing channel. Shipping times and costs 2 have become an important consideration in attracting customers, prompting many companies to offer consumers low shipping costs or next-day delivery. For example, 4 Walmart is attempting to take market share away from e-marketers like Amazon.com 7 by reducing delivery time and creating a “site to store” system that eliminates shipping costs for consumers who pick up their deliveries in the store. This offer has the 9 increased benefit of getting customers into the store, where they might make add-o ...
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