2. LEARNING OBJECTIVES
o 8.1 What is digital marketing?
o 8.2 How have newer consumer shopping patterns affected the field of marketing
communications?
o 8.3 How can e-commerce programs and incentives build stronger customer base and
overcome consumer concerns at the same time?
o 8.4 How do companies utilize mobile marketing systems?
o 8.5 What digital strategies do marketing professionals employ?
o 8.6 What types of web advertising can companies use to reach consumers?
o 8.7 What is a search engine optimization strategy?
o 8.8 How can companies successfully conduct digital marketing programs in
international markets?
3. Artificial Intelligence, Programmatic
Advertising, and Chatbots
Artificial Intelligence (AI)
• AI is machine intelligence that imitates human thinking processes. It
enables tasks like problem-solving, pattern recognition, and decision-
making. AI is used in fields such as language processing, image
recognition, and autonomous vehicles.
Programmatic Advertising
• Programmatic Advertising is automated ad buying using algorithms and
data. It optimizes ad placement in real-time and targets specific audiences
across digital platforms. It streamlines ad buying and improves targeting.
Chatbots
• Chatbots are computer programs that simulate human conversations via
chat interfaces. They provide information and assistance based on rules or
AI algorithms. Chatbots enhance user experiences in customer service, e-
commerce, and more.
4. Digital Marketing
OBJECTIVE 8.1 What is digital marketing?
Today’s consumers and businesses rely on digital technologies to
research products, make comparisons, read comments by other
consumers, interact with other consumers and businesses, and make
product purchases. Digital marketing combines the components of e-
commerce, internet marketing, and mobile marketing. It includes
anything with a digital footprint.
6. How have newer consumer shopping patterns affected the field of
marketing communications?
Digital and mobile marketing programs have dramatically altered the ways consumers
purchase products.
These patterns have influenced the nature and emphasis of many integrated marketing
communications programs.
First, a shift in where, how, and when consumers examine products, companies, and
brands has taken place.
Second, the methods by which consumers physically obtain goods continue to evolve.
Third, consumer to consumer sales have increased.
7. Shopping Locations
•Shopping Locations Digital and mobile marketing programs enable consumers to view products, read consumer
reviews, and access information at home, work, and in stores. This allows quick comparison shopping, access to
coupons, and discounts. Consumers can customize clothing purchases online, reducing the need for retail visits.
However, some chains struggled to adapt to these new shopping habits.
Delivery Methods
•Online shopping is growing rapidly, especially during peak seasons like Christmas, with consumers opting for
home delivery services. Drone deliveries are expected to become more common in the future. Car dealerships are
replaced by online platforms like Carvana and Vroom, and grocery stores now allow customers to choose
products online or by phone and have them delivered by car. This trend, accelerated by the 2020 coronavirus
outbreak, necessitates integrated marketing communications programs.
Consumer-to-
Consumer
Marketing (C-to-C)
•Consumer-to-consumer marketing has grown significantly due to technology, such as eBay, Craigslist, Next-door,
Mercari, and websites like Lyft, Turo, and Zilok. These platforms have expanded potential buyers and created
competition for traditional hotels and motels.
Services
•Digital marketing is revolutionizing services, enabling online consultations, tax preparation, mortgage
arrangements, and promoting services that previously required in-person visits, such as insurance and banking.
8. E-Commerce
How can e-commerce programs and
incentives build a stronger customer
base and overcome consumer concerns
at the same time?
8.3
9. E-Commerce
E-commerce, comprising B-to-C and B-to-B sales, accounts for
10% of retail activity, growing faster than brick-and-mortar
sales. Successful e-commerce operations share common
characteristics.
10. Search-Optimized Design
Consequently, marketers design e-commerce sites to optimize search results.
Instead, most use a search engine.
The design of the e-commerce page influences where the website appears on a search engine
results page (SERP).
A web search crawler normally first looks at the title tag of a webpage when examining
options.
Each page of an e-commerce site should provide a different title tag.
Additional details regarding how search engines work along with the process of search engine
optimization (SEO) are presented later in this chapter.
11. Customer-centric design
Effective e-commerce sites feature customer-centric designs that enable individuals to quickly
locate merchandise.
Product descriptions are important to both a customer-centric design and to search engines.
Powerful descriptions encourage people to buy.
Google penalizes some websites with duplicate content.
While taking more time, writing unique descriptions for products enhances search results and,
in the long run, customer conversions.
Therefore, increasing the sizes of product pictures on e-commerce sites improves conversion
rates, especially on mobile devices.
12. Mobile-Optimized Design
Websites designed for a desktop computer do not load properly on a mobile device or tablet.
To adjust to these challenges, most sites utilize an adaptive design, which automatically
adjusts content to the screen size of the device being used to access the webpage.
Second, Moovweb research indicates that websites lacking mobile-optimized designs ranked
lower on Google's search pages.
More conversions, more people purchasing products via a mobile device, and higher SERP
rankings verify the importance of using adaptive design to optimize e-commerce pages for all
types of devices, including mobile
13. Consistent Customer Experiences
Consumers expect consistent, positive experiences when they access websites across all
devices.
Several studies highlight the importance of a positive, consistent customer experience and the
impact of load-time of pages, especially the front page, on visitor actions.
Channel Integration
Channel integration is essential when the business sells through additional channels beyond
the web.
The company's marketers integrated the site with channel partners to ensure customers can
find the right part, whether on Skyjacker's website or at a local parts store.
14. Brand Engagement
E-commerce sites create opportunities for brand engagement and customer interaction.
The engagement should take place at the right moment, in the right context, and in the right
manner or the customer quickly moves to a competitor.
For many customers, the experience holds equal importance to the brand's product and
prices.
When correctly built, engagement builds brand trust and brand loyalty.
Blogs, feedback applications, and customer reviews provide channels for e-commerce sites to
encourage customers to interact with the website.
Involvement in social causes that involve customers enhances brand engagement.
Review and feedback pages generate confidence for new customers visiting the site.
15. Shopping Cart Abandonment
Some online retailers experience high percentages of customers abandoning shopping carts
prior to checkout.
Shopping cart abandonment can help retailers identify and target customers on a highly
personalized level.
Items in a cart reveal important demographics about abandoners, including gender, size, age,
whether they are single or married, and whether or not they have kids.
Sophisticated data analytics software pinpoints customers who abandoned carts and targets
them with messages such as "Did you forget something? . . .
Ann Taylor, Land's End, Amazon, and many other Click-and-Brick brands use this tactic.
A personal message based on a customer's shopping history enables a company to suggest
new buys at low prices and tends to work well to generate new sales.
16. E-Commerce Incentives
Any lure or attraction that brings people to a website is cyberbait.
Common forms include financial incentives, convenience incentives, and value-added
incentives (see Figure 8.2).
Making the shopping process easier creates a convenience incentive that entices customers to
visit a website.
Exclusive shopping provides a value-added incentive many customers appreciate.
Being considered an exclusive customer builds loyalty and engages the individual with the
website.
Often such a customer becomes a brand advocate on her social media page.
Tutorials, usage tips, and repair instructions establish additional value-added incentives.
Combining incentives is the best method for luring customers back to a website.
18. Offline Marketing Integration
Without any type of offline advertising or marketing, attracting and keeping customers
becomes difficult.
Offline marketing efforts should be integrated with the e-commerce site.
Ideally, every piece of marketing collateral includes the firm's web URL.
For example, Mailchimp provides an automated marketing platform along with an email
marketing service.
One tactic the company uses to support online messages is through the use of personalized
post cards sent to buyers and potential customers.
20. Mobile Marketing
Mobile marketing is multi-channel online marketing designed to reach consumers on
smartphones, tablets, or other related devices through websites, email, text messages,
social media, or mobile apps.
As shown in Figure 8.4, mobile differs from other media in ways that result in both
opportunities and challenges for marketers.
A mobile device is personal, and, as such, tends to be used by a single individual, which
provides companies with the opportunity to build loyalty and enhance engagement.
Mobile features a unique form of two-way communication that differs from text messaging,
social media, and the internet.
Finding meaningful ways to incorporate photos and visuals into the brand experience
becomes the marketing challenge.
Mobile apps fall into two primary categories.
First, some apps engage consumers with the brand.
Globally, people download more than 32 billion apps to smartphones each year.
The codes are popular in magazines that focus on home, family, beauty, health, travel,
and fashion.
Engaging customers constitutes the primary purpose of action codes in magazines.
23. Interactive marketing
• The development of marketing programs to create interplay between consumers and businesses, or
interactive marketing, assists two-way communication and customer involvement.
• As the data are processed, the software launches complex interactive and personalized marketing
materials in real-time.
• A company that specializes in interactive marketing, Receptiv, obtains data from each individual's
browsing activities and mobile app usage.
• Coca-Cola, BMW, Taco Bell, and CoverGirl use Receptiv to target customers at just the right moment.
• Real-time marketing programs assist in finding consumers at just the right moment.
24.
25. Remarketing
Remarketing utilizes digital technology to re-engage individuals who have visited a brand's
site or accessed the brand's app but did not make purchases.
These individuals have displayed an interest in the brand.
Consequently, remarketing generates considerably higher conversion rates than banner
or search ads.
Immediately targeting individuals who have shown interest in an item is the most valuable
feature remarketing provides.
In that instance, the items placed in the shopping cart will be shown in the remarketing ad.
26. Behavioral Targeting
Behavioral targeting utilizes web data and search patterns to identify potential customers.
The difference between behavioral targeting and remarketing is that instead of sending
remarketing ads to individuals that visited a website, ads are directed to individuals based
on browsing behaviors.
The second form of behavioral targeting examines an individual's search behavior.
The final form is behavioral targeting based on past visits.
Amazon uses this method to suggest books and movies that may interest a person
shopping on the company's website.
27. Blogs, Podcasts, and Newsletters
Company-sponsored blogs and podcasts emulate word-of-mouth communication and
engage customers with a brand.
A company-sponsored blog provides a number of potential benefits; however, some
analysts stress the importance of identifying a specific reason for the blog before
launching it.
For small businesses, blogs provide a relatively inexpensive way to communicate with
customers.
More than 1,000 individuals showed up. The Thrillist (http://thrillist.com) and UrbanDaddy
(http://urbandaddy.com) websites take advantage of the power that newsletters provide.
For newsletters, publication frequency depends on the industry, content, target audience,
and purpose of the newsletter.
28. Email Marketing
Email can be a vital part of a company's digital marketing program.
To achieve success, companies integrate email marketing programs with other channels.
Companies set up drip campaigns for customers who have made purchases.
With GPS and location indicators on mobile phones, companies tie the weather to an
automated drip campaign.
In each case, the content of the email matches the weather event based on the geo-
location of the mobile phone.
30. Web Advertising
Today, banner ads account for 22.6 percent of online advertising. Currently, marketers
embed banner ads with videos, widget applications, or targeted display ads that increase
the chances viewers will see and click the icon.
Information technology experts build programmatic advertising systems from warehouses
of user internet data and automated auction advertising exchanges.
Approximately 80%, or $33 billion, of U.S. digital display advertising is transacted
programmatically.
Brand managers have become concerned that some of their ads have appeared on
questionable websites.
Private programmatic vendors reduce these occurrences. When a consumer, such as a
20- to 25-year-old female, accesses a website featuring paid search programmatic
technology, in a microsecond the software searches the auction exchange for advertisers
that match the profile of the individual who logged onto the page, or that individual's
browsing history.
31. Impact of Online Advertising
Brands that utilize geo-targeting, behavioral targeting, and third-party demographic data
tend to have the most tags attached to the ads. According to Comscore Inc. research,
more than half of display ads on thousands of websites are not seen.
That means almost $6 billion spent on display advertisements may have been wasted.
Blocking software also prevents web ads from being visible.
With mobile phones, zombie apps infect a mobile phone and constantly run in the
background.
The diminishing impact of online advertising and the high percentage of ads that are never
viewed have led many advertisers to turn to new technologies designed to increase
response rates and detect fraud.
32. Offline Advertising
To build a brand's reputation and brand loyalty, companies integrate online advertising
with offline branding tactics that reinforce each other to speak with one voice.
This process, brand spiraling, features traditional media to promote and attract consumers
to a website.
Marketers seek to maintain a uniform brand presence and advertising message in brand
spiraling programs. Traditional media can be the driving force behind online branding
efforts.
Currently, tailor-made websites accompany many direct and email campaigns.
34. Search Engine Optimization (SEO)
• The majority of web traffic begins at a search engine.
• Search engine optimization (SEO) is the process of increasing the probability of a particular
company's website emerging from a search.
• Second, a company increases identification via the natural or organic emergence of the site.
• Normally, a new website does not emerge at the top of the search results.
• It takes time for the search engine to locate the site.
• Some studies suggest that the impact of organic listings can be impressive.
• A Comscore study suggests that search ads have a strong positive impact on brand
awareness, perception, and purchase intentions—even when consumers do not click the paid
search ad.
• Companies spend large amounts on search engine optimization.
• The typical clickthrough rate for online advertising remains around 0.2 percent; for search
advertising, it is around 5 percent. Marketing teams should remember that search engine
optimization represents a long-term investment.
• Search ads can be effective for local businesses.
36. International Implications
• Developing a website that appeals to the audience in each country becomes a key task.
• A coherent IMC strategy utilizes local input from the various countries involved.
• For IBM, this means hiring local companies in each country to design individual websites and
providing the information to be used on each site.
• In the future, the growth of international e-commerce will continue to rise.
• Firms that get in on the ground floor are likely to enjoy a major marketing advantage.
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