This document discusses the growth and benefits of digital marketing, emphasizing the use of digital media and consumer-generated marketing as effective tools. It outlines the various types of digital media, such as social networking sites and blogs, and highlights the changing behaviors of consumers in response to digital marketing strategies. Additionally, it addresses legal and ethical considerations, particularly regarding privacy, online fraud, and intellectual property.

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Chapter 9
Digital Marketing and Social Networking

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 Describe the growths and benefits of digital
marketing
 Learn how types of consumer-generated marketing
and digital media can be used as effective marketing
tools
 Understand the changing digital media behaviors of
consumers
Learning Objectives

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 Understand and identify how digital media can be
used in an e-marketing strategy
 Identify legal and ethical considerations in digital
media and electronic marketing
Learning Objectives

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 Digital media: Electronic media that function using
digital codes
 Digital marketing: Develops communication and
exchanges with customers through all digital media
 Electronic marketing: Using digital media and digital
marketing to:
 Distribute, promote, and price products
 Discover the desires of customers
 Help marketers to share information to the customers
Growth and Benefits of Digital
Marketing

5. Discussion Point
Digital Marketing
Marketers can use a number of
digital media sites, including
YouTube, Facebook, Pinterest,
and Flickr, to promote products
and create company awareness.

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 Marketers use technology to form relationships,
coordinate, and communicate with stakeholders
 Small businesses - Use digital media to reach new
markets and access inexpensive communication
channels
 Large businesses - Use digital media to supplement
their brick-and-mortar stores
Growth and Benefits of Digital
Marketing

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Characteristics of Online Media
Characteristic Definition
Addressability • Marketers’ ability to identify customers
before they make a purchase
Interactivity • Customers’ ability to express their needs
and wants directly to the firm
• In response to the firm’s marketing
communications
Accessibility • Marketers’ ability to obtain digital
information
Connectivity • Consumers’ ability to be connected with
marketers along with other consumers
Control • Customer’s ability to regulate the
information they view and the rate and
exposure to that information

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 Trends that have caused consumer-generated
information to gain importance
 Use of blogs or digital media by consumers to publish
their thoughts, opinions, reviews, and product
discussions
 Consumers’ tendencies to trust other consumers over
corporations
Consumer-Generated Marketing

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Types of Digital Media
Social networking sites
Blogs and wikis
Media-sharing sites
Virtual reality sites
Mobile devices
Applications and widgets

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 Web-based meeting place that allows users to create
a profile and connect with other users
 To get acquainted, keep in touch, or build a work
related network
 Marketers use them to:
 Promote products
 Handle questions and complaints
 Assist customers in buying decisions
Social Network

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Figure 9.1 - Do You Use Social
Networking Sites?

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Social Network
• Used by marketers to:
• Market products and interact with consumers
• Take advantage of free publicity
• Engage in e-commerce
• Engage in relationship marketing, making
consumers feel more connected to their products
Facebook
• Hybrid of a social networking site and a micro-
blogging site
• Used to enhance customer service, create publicity
about products, and gain a competitive advantage
Twitter

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Blogs and Wikis
Blog
• Web-based journal
where writers can
editorialize and interact
with other Internet users
• Gives consumers control
and can affect the image
of a company
• Used by corporations to:
• Answer consumer
concerns
• Defend their corporate
reputations
Wiki
• Software that creates an
interface enabling users
to add or edit the
content of some types of
websites
• Used as an internal tool
for teams on projects
requiring lots of
documentation
• Provides companies with
a better idea of how
consumers feel about
the company brand

14. Discussion Point - The
World’s Largest Wiki
Wikipedia is an online
encyclopedia that allows users to
add or edit information in more
than 250 languages.

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 Allows businesses to share their corporate messages
in more visual ways
 Limited in scope in how companies interact with
consumers
 More promotional than reactive
 Popularity of these sites provides wide reach
Media Sharing Sites

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Media Sharing Sites
• Allow users to upload and share their photos with the world
• Companies can market themselves by displaying snapshots of their:
• Corporate events
• Staff and products
Photo-sharing sites
• Allow users to upload videos
• Companies can upload ads and informational videos about their
products
Video sharing sites
• Audio or video files that can be downloaded from the Internet with a
subscription
• Automatically delivers new content to listening devices or personal
computers
• Companies can create brand awareness, promote their products, and
encourage customer loyalty
Podcasts

17. Discussion Point -
Photo-Sharing
Flickr is a very popular site that
allows photo and video sharing.

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 User-created, three-dimensional worlds that have
their own:
 Economies and currencies
 Lands and residents
 Offer opportunities for marketers to connect with
consumers in unique ways
 Used by some firms for recruiting purposes
Virtual Sites

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 Allow customers to leave their desktops and access
digital networks from anywhere
 Common mobile marketing tools
 SMS messages and multimedia messages
 Mobile advertisements
 Mobile websites
 Location-based networks
 Mobile applications: Software programs that run on
mobile devices and give users access to certain
content
Mobile Devices

20. Discussion Point
• Companies have begun to
embed advertising through the
use of digital games played on
smartphones.
• These ads are targeting
children 9 years old and
younger.
• Is it acceptable to market to
children through mobile
games?

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Applications and Widgets
Applications
• Offer convenience and
cost savings to
consumers
• Companies use mobile
marketing to offer
additional incentives to
consumers
• Allow shoppers to
compare prices or
download electronic
discounts
Widgets
• Small bits of software on
a website, desktop, or
mobile device
• Enables users to
interface with the
application and
operating system
• Used to:
• Personalize webpages
• Alert users to company
information
• Spread product
awareness

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Changing Digital Media Behaviors of
Consumers
 Consumers are better abled to regulate the
information that they view
 Result of digital media
 Marketers:
 Have limited control over the content to which users are
exposed
 Adopt a different approach than traditional marketing
 Effectively target their messages to the audience
 Easily track the success of their online marketing campaign
 Enjoy free publicity by way of positive customer feedback

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Table 9.2 - Social Technographics

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 Businesses use digital marketing to gain or maintain
market share
 Product considerations
 Opportunity to:
 Add a service dimension to traditional products
 Create products accessible only on the Internet
 Ability to access product information for any product
impacts buyer decision making
 Essential for continually upgrading products to meet
consumer needs
E-Marketing Strategy

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 Online advertising campaigns and contests can be
used to help develop better products
 Distribution considerations
 Makes products available at the right time, place, and
in right quantities
 Helps businesses increase efficiency
 Push-pull dynamic
 Push products through the marketing channel to consumers
 Enable customers to pull products through the marketing
channel
E-Marketing Strategy

26. Discussion Point -
Distribution
• The growth in popularity of
e-readers had lead to a greater
direct distribution of magazines,
newspapers and books
• Do you own an e-reader?
• If so, do you access books,
magazines or newspapers?

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 Promotion considerations
 Allows marketers to approach promotion in new,
creative ways
 Increases brand awareness and markets to consumers
 Traditional promotional events can be enhanced or
replaced by digital media
 Pricing considerations
 Consumers gain access to more information about
costs and prices
 Demand for low-priced products increases
E-Marketing Strategy

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 Enables customers to compare prices of products
 Sellers are pressured to:
 Offer buying incentives to generate demand
 Differentiate products so that customers focus on attributes
and benefits other than price
E-Marketing Strategy

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Ethical and Legal Issues
Privacy Online fraud
Intellectual
property

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 Misuse of personal information collected from
website visitors
 May violate user's privacy
 Hackers can steal personal information
 Scraping - Collecting personal information from
social networking sites and other forums
 Counteractive measures
 Developing regulations to limit the amount of
consumer information that can be gathered online
 Web advertisers are attempting self-regulation
Privacy

31. Discussion Point -
Online Security
Both firms and government
agencies such as the Federal
Trade Commission are working to
protect consumer privacy and
prevent unauthorized access to
consumers’ information.

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 Any attempt to conduct dishonest activities online
 Avenues for fraud
 Fraudulent profiles on social networking sites
 Mobile payments
 Counteractive measures
 Some firms monitor social networks for fraudulent
accounts
 To avoid divulging personal information online
Online Fraud

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 Copyrighted or trademarked ideas and creative
materials developed to solve problems, carry out
applications, and educate and entertain others
 Consumers’ rationalizations for piracy
 No money to pay for what they want
 Peer influence to engage in piracy and swap digital
content
 The thrill of getting away with it and the slim risk of
consequence
 Allows them to show how tech savvy they are
Intellectual Property