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ABSENTEE ASSIGNMENT

Marketing Program Design

Lecture Number:- 18
Topic:- Marketing in future: Creating and capturing value through digital
marketing
Date:- 17/10/16

By:Kumar Pranav
Section D
160103072

UNDERSTANDING OF THE TOPIC


My understanding of the topic is that with changing technology, marketing behaviours
change, and opportunities as well as challenges emerge. With a rapid rise in e
commerce, the consumers have ample of information about practically everything, and
companies must metamorphose their approach to digital marketing.
Media can be classified to be paid or free. Paid are the ones covering company
sponsored advertising and promotion. Unpaid or Earned media is gained through
WOM interactions, Blogs, and social media networking.
Online marketing communication can be classified broadly as Web sites, search ads, e
mails and display ads. The effect of these digital marketing tools can be analysed to
assess consumer behaviour towards the digital marketing efforts of companies.
Lets analyse these online market communication options.
A companys WEBSITE has to be designed to enable ease of use and to make the
appearance appealing to the consumer. Information needs to be in simple format with
legible format and easy navigation through options.
SEARCH ADS allow consumers to search explicitly for products through search
engines and such consumers are prime prospects for companies. Search terms need to
be place properly on marketers website for quick identification.
EMAILS are productive tools and are used to inform the consumer about the product;
hence they need to be timely, targeted and relevant.

SOCIAL MEDIA MARKETING


An increasingly productive component of digital marketing is social media. Some of
the forms are: ONLINE FORUMS:-It provides an effective mean for companies to interact
with consumers and gather feedback and create bonding. It also helps
companies to know the perception of the consumers about its product.
BLOGS:-Blogs attract people having a common interest. They are omportant
because they drive traffic to your website, they increase your SEO, they
position your industry as a brand leader and drive better consumer relationship.
SOCIAL NETWORKS:- Social media posts can be used to drive targeted
traffic. Creating a new page on your site is like taking a really great selfie. You

want the world to see it and bask in its brilliance. ou can also use social media
as a tool for connecting with complementary, non-competing businesses,
thought leaders and tastemakers in your space, as well as journalists who cover
your industry.
Still, social media has its limitations. It may not be effective in attracting new
customers as only some consumers want to engage with some brands, and that too
with limited time.

WORD OF MOUTH
Online Word-Of-Mouth means viral digital marketing that encourages consumers
to share information online. Consumers tend to generate positive WOM about their
own experiences and usually pass on negative experiences of others.
Here, the success of information outflow depends on willingness of consumers to
communicate. The more referrals and positive WOM a consumer has, more is his
value towards the company. Consumer loyality is rates as from being satisfied by
the usage of product(mind share) to feeling ownership about the product( spirit
share).

MOBILE MARKETING
Mobile marketing has become more important than ever. IDC research shows a
staggering 79% of smartphone users have their phone on or near them each hour
of the waking day. Shopping has transitioned across devices. Where ecommerce used to be a desktop activity, people are turning to their mobiles for
quick purchase.
SMS marketing is a powerful way to get your message straight into peoples
hands, without the clutter of email inboxes or noise of other channels.
Developing effective mobile marketing programs include ensuring that the
website is mobile friendly, start SMS communication campaigns, proper screen
positioning of the advertising, and finally, investing in mobile marketing.

CASE ANALYSIS
Lead Question 1:- How can you segment CyWorlds User? Which segment should
CyWorld target?
Ans:- Consumer segmentation and value for the segment: Active user:- They are the ones with high amount of activity and the value
attached to them is applications like games, virtual points for greater usage.
Purchasers:- These increase direct revenue by spending significantly on virtual
purchases. The value they get is the discount given on products and special
loyality schemes.
Connectors:- These have a strong friend network on CyWorld. The associated
value is professional networking branches.

Low
Mediu
m
High

Active
Users
52
20.5
27.5

Active
Users
52
20.5
27.5

Purchasers

Connectors

33.3

33

32.3
34.3

32.6
34.4

Connectors
33
32.6
34.4

Purchasers and connectors are correlated, which is 17.27% in graphs and thus these
segments hold high weightage for CyWorld.

Extrapolation of Correlation Between Coonectors and Purchasers

Extrapolation of Correlation Between Active Users and Purchasers

15

20

25

30

35

40

45

50

55

Lead Question 2:- Which is most valuable to CyWorld- an active user, a purchasers, or
a connector?
Ans:- Members that increase the extent of the social graph are the most valued
consumers.(exhibit 8). For evaluating this, we need to identify the primary objective

which is revenue generation. In case of CyWorld, number of members is already very


high (21 m with 90% penetration).
Lead Question 3:- How is the value of segment influenced by how value is created for
and captured by consumers?
Ans:- Capturing Value:PAID ITEMS: Accounted for 68% of CyWorld revenue-USD 65 million.
Revenue from minihompys virtual items.
Virtual items accounted for 32% of paid items revenue
MOBILE NETWORKING: Accounted for 16% of CyWorld revenue-USD 15 million
Mobile CyWorld has the potential to increase customer loyality from SK
Telecom
Expanding its operations of both SK Telecom and CyWorld to penetrate
another country.
Cumbersome software and poor UI quality may lead to delay in mobile
becoming mainstream.
ADVERTISING: Accounted for 16% of CyWorld Revenue-USD 15 million
Represented only 16% CyWorlds revenue but had largest growth potential.

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