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1. ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Digital Marketing
and Social Media
Chapter 13
©Steve Allen/ Getty Images
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

2. ©McGraw-Hill Education.
Learning Objectives
13-1 Define digital media and digital marketing and recognize their
increasing value in strategic planning.
13-2 Demonstrate the role of digital marketing in today’s business
environment.
13-3 Show how digital media affect the marketing mix.
13-4 Illustrate how businesses can use different types of social
networking media.
13-5 Understand online monitoring and analytics for social media.
13-6 Identify legal and ethical considerations in digital media.
13-7 Evaluate a marketer’s dilemma and propose recommendations.

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Growth and Benefits of Digital
Communication
E-Business
• Carrying out the goals of business through utilization
of the Internet
Digital Media
• Electronic media that function using digital codes via
computers, smartphones, and other digital devices
Digital Marketing
• Uses all digital media, including the Internet and
mobile and interactive channels, to develop
communication and exchanges with customers

4. ©McGraw-Hill Education.
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 The ability for consumers to be
connected with marketers along
with other consumers
Volition Beauty’s website encourages
customers to submit their makeup and skin
care product ideas, which can then be voted on
by other users for the chance to be created.
Control The customer’s ability to regulate
the information they view as well
as the rate and exposure to that
information
Consumers use Kayak to discover the best
travel deals.

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POLLING
QUESTION There are several important characteristics of
digital marketing. Which of these
characteristics uses cookies to track consumers
and their purchasing habits?
A. Connectivity
B. Accessibility
C. Crumb mining
D. Addressability

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Using Digital Media in Business
Fast and inexpensive communication
More interactive
Easier to conduct marketing research and
advertise
Internet markets are more similar to traditional
markets than they are different
Lowers cost of communication
Improved communication within/between
businesses

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Digital Media and the Marketing Mix 1
Digital media differs from conventional marketing
techniques in that:
• Communications are richer, faster, and more
interactive
• Companies can reach target markets more easily,
affordably, and quickly
• They help marketers utilize new resources in seeking
out and communicating with customers
One aspect that has not changed with digital
media is the importance of achieving the right
marketing mix

8. ©McGraw-Hill Education.
Figure 13.1 Social Media Use by Platform
Note: U.S. adults. Pre-2018 telephone poll data are not available for YouTube, Snapchat, or WhatsApp.
Source: Pew Research Center survey conducted January 3–10, 2018. Trend data from previous Pew Research Center surveys.
Access the text alternative for these images.

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Digital Media and the Marketing Mix 2
Product Considerations
• Digital media connectivity creates opportunities to add
services and benefits to products
• Some products are only available digitally
• Businesses can offer more online than in a retail store
• Ability to access product information digitally impacts buyer
decision making
• Internet can make it easier to learn about and anticipate
consumer needs

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Digital Media and the Marketing Mix 3
Distribution Considerations
• The Internet is a new distribution channel for making
products available at the right time, at the right place,
and in the right quantities
• Processing orders electronically can reduce inefficiencies, cost,
and redundancies
• Can increase speed throughout the marketing channel
• Omni-channel retailing
• Integrates the different methods of shopping available to
consumers

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Digital Media and the Marketing Mix 4
Promotion Considerations
• One of the best ways businesses can utilize digital
media is for promotion purposes
• Increasing brand awareness
• Connecting with consumers
• Taking advantage of social networks or virtual worlds to form
relationships and generate positive publicity about products
• Online promotion allows consumers to make informed
purchase decisions
• Consumer consumption patterns are changing and marketers
must adapt promotional efforts to meet them

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Digital Media and the Marketing Mix 5
Pricing Considerations
• Price is the most flexible element of the marketing mix
• Digital marketing can enhance a product’s value by
providing service, information, and convenience
• Discounts and sales can be quickly communicated
• Deals websites allow consumers to compare prices of
products
• To compete on price, digital marketing provides
unlimited opportunities

13. ©McGraw-Hill Education.
POLLING
QUESTION Home Depot offers consumers the opportunity
to purchase goods in-store or online. They use
the same promotional strategies on their social
media platforms, website, and
print/commercial advertisements. This is an
example of _____.
A. Omni channel marketing
B. Retail marketing
C. Integrated marketing communications
D. Quixotic approach

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Social Media Marketing 1
Social Media Marketing
• Involves obtaining communications with consumers
through social media sites
• Enables firms to promote a message through multiple
platforms
• Paid media
• Owned media
• Earned media

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Social Media Marketing 2
Social Media Marketing continued
• User-generated content relates to consumers who
create, converse, rate, collect, join, or simply read
online materials
• User-generated sites are a motivating factor to influence others
or to promote an interest or a cause
• Consumers read posted ratings and reviews to help in
shopping decisions
• Ratings can be used to monitor a firm’s reputation
• Marketers must choose a social media approach that
fits their target market and supports its marketing
objectives

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Consumer-Generated Marketing and
Digital Media 1
Two factors sparked the rise of consumer-
generated information
1. Increased tendency of consumers to post their own
thoughts, opinions, reviews, and product discussions
through blogs or digital media
2. Consumers’ tendencies to trust other consumers
over corporations. Consumers often rely on the
recommendations of friends, family, and fellow
consumers when making purchasing decisions.

17. ©McGraw-Hill Education.
Consumer-Generated Marketing and
Digital Media 2
Social Networks
• Facebook
• Most popular social networking site in the world
• Marketers use Facebook to market products, interact with
consumers and gain free publicity
• Twitter
• Hybrid of a social networking site and a micro-blogging site that
asks: “What’s happening?”
• Companies use site to build or rebuild customer relationships

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GoPro and User-Generated Content
GoPro won a Shorty Award for its use of Facebook and Instagram to
inspire and leverage user-generated content.
©Faiz Zaki/Shutterstock

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Consumer-Generated Marketing and
Digital Media 3
Social Networks continued
• Snapchat
• Allows users to send messages and disappearing photos and
videos to friends
• Is not a profitable company, but investors see value in it
• YouTube
• Video sharing site
• Brands release videos, but consumer-generated content is far
greater
• LinkedIn
• Top networking site for businesses and business professionals

20. ©McGraw-Hill Education.
Consumer-Generated Marketing and
Digital Media 4
Blogs
• A web-based journal in which writers can editorialize and
interact with other Internet users
• Give consumers power over companies
• Companies use blogs to answer consumer concerns or
defend their reputations
Wikis
• Websites where users can add to or edit the content of
posted articles
• Monitoring relevant wikis gives companies a better idea of
how consumers feel about their company or brand

21. ©McGraw-Hill Education.
Consumer-Generated Marketing and
Digital Media 5
Media Sharing
• Sites allow marketers to share photos, videos, and
podcasts
• Tend to be more promotional than reactive
• Firms do not interact with consumers through personal
messages or responses

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Consumer-Generated Marketing and
Digital Media 6
Video-sharing sites
• Allow both businesses and individuals to post videos
• Viral marketing
Photo-sharing sites
• Allow users to upload their photos and short videos
• Usage has increased with mobile apps
Podcasts
• Audio or video file that can be downloaded from the
Internet via a subscription
• Can affect consumer buying habits

23. ©McGraw-Hill Education.
Consumer-Generated Marketing and
Digital Media 7
Mobile Marketing
• Consumers increasingly do their business and
shopping from mobile devices and smartphones
• Become an important tool in everyday lives
• Brands must recognize importance of mobile marketing
• Mobile marketing exploded in recent years
• E-commerce sales on smartphones is estimated to
reach 50 percent of total online sales in next couple of
years
• Makes it essential for companies to understand how to
use mobile tools to create effective campaigns

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Consumer-Generated Marketing and
Digital Media 8
Mobile Marketing Tools
• SMS messages
• Multimedia messages
• Mobile advertisements
• Mobile websites
• Location-based networks
• Mobile applications

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POLLING
QUESTION Leon works for Jobfast Placement &
Consulting. He’s been asked to increase the
company’s social media presence. In your
opinion, which social media platform should he
employ?
A. Facebook
B. YouTube
C. LinkedIn
D. Twitter

26. ©McGraw-Hill Education.
Figure 13.2 Mobile App Activities Conducted by
Smartphone Users
Note: ages 18–64; in the past 30 days
Source: Ipsos MORI, “Something for Everyone: Why the Growth of Mobile Apps is Good News for Brands,” sponsored by Google, August 1, 2017.
Access the text alternative for these images.

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Consumer-Generated Marketing and
Digital Media 9
Applications
• Apps adding new layer to the marketing environment
• Americans are estimated to spend 85 percent of their time on
smartphones using apps
• Convenience and cost savings to the consumer
• Companies are beginning to use mobile marketing to
offer additional incentives to customers
• QR scanning app
• Mobile payments

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Mobile Applications
Consumers are increasingly turning to mobile apps to access company
information, earn loyalty rewards, and purchase products.
©Monika Wisniewska/Shutterstock

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Consumer-Generated Marketing and
Digital Media 10
Widgets
• Small bits of software on a website, desktop, or mobile
device that perform a simple purpose such as stock
quotes or blog updates
• Have been used as a form of viral marketing
• Users can download the widget and send it to their
friends with a click of the button
• Can update the user on the latest company or product
information, enhancing relationship marketing
between firms and their fans

30. ©McGraw-Hill Education.
Online Monitoring and Analytics
Social media monitoring involves activities to track,
measure, and evaluate a firm’s digital marketing
initiatives
• Metrics develop from listening and tracking
• Key performance indicators should be embedded at
the outset of a social media strategy
• Comprehensive performance evaluation can be done
by analytics platform monitoring
• Google Analytics
• Analyzing traffic data allows marketers to better
understand customers

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Table 13.2 Google Analytics
Section Function
Real time Data updates are live so you can see pageviews, top social traffic, top
referrals, top keywords, top active pages, and top locations in real
time.
Audience Audience reports provide insight into demographics, interests,
geography, behavior, mobile use, and more.
Acquisition In-bound traffic is monitored through acquisition reports, allowing
you to compare traffic from search, referrals, e-mail, and social media.
Behavior Use RSS feeds. Add tags to web pages or photos. “Vote” for websites
online.
Joiners Evaluate your site’s content by seeing how visitors interact with your
content. Monitor landing pages, exit pages, site speed, bounce rate,
and more.
Conversions Google Analytics allows users to set goals and objectives to monitor
web conversions, like signing up for an e-mail newsletter or
completing a purchase.

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Using Digital Media to Learn about Consumers
Digital media and social networking sites
• Help gather useful information about consumers and
their preferences
Crowdsourcing
• Describes how marketers use digital media to find out
the opinions or needs of the crowd (or potential
markets)
Consumer feedback is an important part
• Digital media forums allow businesses to closely
monitor what customers are saying

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Crowdsourcing
M&Ms has used crowdsourcing to let consumers vote on
new limited edition flavors.
©usersam2007/123RF

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Legal and Social Issues in Internet Marketing 1
Extraordinary growth of information technology, the
Internet, and social networks has generated many
legal and social issues for consumers and businesses
• Privacy concerns
• Risk of identity theft
• Risk of online fraud
• Need to protect intellectual property
To avoid deception, all online communication must tell
the truth and cannot mislead consumers
• All claims must be substantiated

35. ©McGraw-Hill Education.
Legal and Social Issues in Internet Marketing 2
Privacy
• Current technology has made it possible for marketers
to amass vast quantities of personal information, often
without consumers’ knowledge, and to share and sell
this information to interested third parties
• Cookies — an identifying string of text on users’ computers
• An online privacy “do not track” bill to protect consumers
• Influencer marketing
• FTC requires influencers to disclose any connection with the
brands they promote

36. ©McGraw-Hill Education.
Legal and Social Issues in Internet Marketing 3
Identity Theft
• When criminals obtain personal information that
allows them to impersonate someone else in order to
use their credit to access financial accounts and make
purchases
• Security breaches are a serious threat
• Phishing is using a counterfeit of a familiar website to deceive
people into divulging private information
• To deter identity theft, the National Fraud Center wants
financial institutions to implement new technologies such as
digital certificates, digital signatures, and biometrics

37. ©McGraw-Hill Education.
Figure 13.3 Main Sources of Identity Theft
Source: “Consumer Sentinel Network Data Book: January–December 2016,” Federal Trade Commission, March 2017,
https://www.ftc.gov/ system/files/documents/reports/consumer-sentinel-network-data-book-january-december-2016/csn_cy-
2016_data_book.pdf (accessed April 27, 2017).
Access the text alternative for these images.

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Legal and Social Issues in Internet Marketing 4
Online Fraud
• Includes any attempt to purposely deceive online
• Cybercriminals use hacking to commit online fraud
• Can avoid being a victim of online fraud by
• Using a different password for each website and making them
complex
• Credit card fraud is a major type of fraud that occurs
online
• Avoid fraud by not giving out personal information
unless the site is legitimate

39. ©McGraw-Hill Education.
Legal and Social Issues in Internet Marketing 5
Intellectual Property Theft and Other Illegal Activities
• Intellectual property can include songs, movies, books,
and software
• Generally protected by patents and copyrights, but
piracy and illegal sharing costs global industries billions
annually
Illicit online marketing becoming serious issue for
law enforcement
• Illegal drugs
• Counterfeit goods

40. ©McGraw-Hill Education.
Digital Media’s Impact on Marketing
Digital media can make your company more
efficient and productive
• Transition to digital media can be challenging
• New media may require employees with new skills or
additional training for current employees
• Correct blend of traditional and digital media in
marketing mix takes time and consideration
• Future marketing opportunities will require a
knowledge of digital media and how to use them

41. ©McGraw-Hill Education.
POLLING
QUESTION Lilly is the owner of a restaurant, Lucky Crabs.
She wants to make better use of social media
platforms as part of her sales promotion
strategy. In your opinion, which legal and/or
social issue should Lilly be most concerned
with?
A. Privacy concerns
B. Risk of identity theft
C. Risk of fraud
D. Need to protect intellectual property

42. ©McGraw-Hill Education.
Solve the Dilemma
Developing Successful Freeware 1
Paul Easterwood, a graduate of Colorado State University with a
degree in computer science, entered the job market during a slow point
in the economy
• Only offer he received was Pentaverate Inc., producer of freeware
• Freeware, or public domain software, is offered to consumers free of
charge in exchange for revenue generated later
• Paul did research and learned from an article the enormous potential of
freeware
• Paul’s job would be to develop freeware that people could download and
would generate significant income for the firm
• With no real experience in marketing, Paul was at a loss to know what
software would make money for the company

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Solve the Dilemma
Developing Successful Freeware 2
Paul’s first project IOWatch
• Designed to take users on a virtual tour of outer
space, images and video downloaded to PC
• Experienced little use and drew little advertising
income
• Paul hired a consultant to figure out what people want
to design a better second project
• Needed to know what went wrong with IOWatch

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Solve the Dilemma
Developing Successful Freeware 3
Critical Thinking Questions
1. As a consultant, what would you do to help Paul figure
out what went wrong with IOWatch?
2. What ideas for new freeware can you give Paul? What
potential uses will the new software have?
3. How will it make money?