Chapter 17

Digital, Online, Social Media, and

Mobile Marketing
MKTG 301
Dr. Kelly Eunjung Yoon
[email protected]
The Promotional Mix (1)

• The promotion mix is the specific blend of promotion tools that the company
uses to persuasively communicate customer value and build customer
relationships.
• A company’s total promotion mix—also called its marketing communications
mix

• The specific blend of promotion tools that the company uses to persuasively
communicate customer value and build customer relationships

2
The Promotional Mix (2)
1. Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor
2. Sales promotion: Short-term incentives to encourage the purchase or sale of a product or
service
3. Personal selling: Personal presentation by the firm’s sales force for the purpose of making
sales and building customer relationships
4. Public relations: Building good relations with the company’s various publics by obtaining
favorable publicity, building up a positive corporate image, and handling or heading off
unfavorable rumors, stories, and events
5. Direct and digital marketing: Direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting customer
relationships—using telephone, mail, e- mail, the internet, and other tools to communicate
directly with specific customers.

3
Integrated Marketing Communications

Delivering a
consistent and
positive message at
each content

4
In this class, we will learn …

• Define direct and digital marketing and discuss their rapid growth and benefits to customers
and companies.
• Identify and discuss the major forms of direct and digital marketing.

• Identify and discuss the traditional direct marketing forms and overview public policy and
ethical issues presented by direct marketing.

5
Direct and Digital Marketing
• Direct and digital marketing involve engaging directly with targeted individual consumers
and customer communities to both obtain an immediate response and build lasting customer
relationships.

• Companies use direct marketing to tailor their offers and content to the needs and interests
of narrowly defined segments or individual buyers.

• In this way, they build customer engagement, brand community, and sales.

6
The New Direct Marketing Model
• Most companies still use direct marketing as a supplementary
channel or medium

• But for many companies today, direct and digital marketing are
more than just supplementary channels or advertising media— they
constitute a complete model for doing business.
o Firms employing this direct model use it as the only approach.

• Companies such as Facebook, Amazon, Google, eBay, Netflix, GEICO,

and Priceline.com have successfully built their entire approach to
the marketplace around direct and digital marketing.

7
Rapid Growth of Direct and Digital Marketing

• Direct and digital marketing have become the fastest-growing form of

marketing.

• Direct marketing continues to become more internet-based, and digital direct

marketing is claiming a surging share of marketing spending and sales.

8
Benefits of Direct and Digital Marketing to Buyers and
Sellers
• Convenience
• Ready access to many products
• Access to comparative information about companies, products, and competitors
• Interactive and immediate

9
Benefits of Direct and Digital Marketing — Sellers

• Low-cost, efficient, fast alternative to reach markets

• Flexible
o Real-time marketing that links brands to important moments and trending
events in customers’ lives
• Access to buyers not reachable through other channels

10
Forms of Direct and Digital Marketing

The traditional forms are still heavily used and that the new and old must be integrated for maximum impact.

11
 Let’s Discuss!

• What’s pros and cons of doing a business based on direct marketing

completely or supplementary?
• When do you find direct mail to be a benefit as a consumer?

12
Omni-Channel Retailing
• Omni-channel retailing creates a seamless cross-channel
buying experience that integrates in-store, online, and
mobile shopping— it creates a single shopping
experience.

• Omni-channel retailing: Home Depot’s goal is to provide

“a seamless and frictionless experience no matter where
our customers shop, be it in the digital world, our brick
and mortar stores, at home, or on the job site.
• Anywhere the customer is, we need to be there.”

13
Online Marketing

• Online marketing is marketing via the internet using company websites,

online ads and promotions, email, online video, and blogs.
• Marketing Websites engage consumers to move them closer to a direct
purchase or other marketing outcome.
• Branded Community Websites present brand content that engages
consumers and creates customer community around a brand.

14
Online Marketing
• Online advertising is advertising that appears while consumers are browsing online and
includes display ads, search-related ads, online classifieds, and other forms.
• Email marketing involves sending highly targeted, highly personalized, relationship-building
marketing messages via email.
• Spam is unsolicited, unwanted commercial email messages

• Online video marketing involves posting digital video content on brand websites or social
media sites such as YouTube, Facebook, and others.
• Viral marketing is the digital version of word-of-mouth marketing: videos, ads, and other
marketing content that is so infectious that customers will seek it out or pass it along to
friends.

15
Email Marketing

• Email marketing remains an important and growing digital marketing tool.

• Around the world, people send out more than 406 million emails every minute of every day.

• According to one survey, 50% of consumers prefer to engage with brands via email versus
direct mail, phone, text, or social media.
• And 76% of consumers agree that retail brands send relevant emails that accurately reflect
their shopping preferences, locations, or purchase histories.
• 55% of all emails are now opened on mobile devices. Not surprisingly, given its low costs
and targetability, email can yield a very high return on investment.

16
Online Marketing

• Blogs are online journals where people and companies post their thoughts and other
content, usually related to narrowly defined topics
• Company blogs: The Oh My Disney blog gives Disney buffs an “official destination for Disney
quizzes, nostalgia, news, and other Disney magic.”

17
Social Media Marketing

• According to one survey, nearly 90 % of U.S. companies now use social media networks as
part of their marketing mixes.

• Marketers can use existing social media or they can set up their own.

• Using existing social media seems the easiest.

• Thus, most brands have set up shop on a host of social media sites with links to each brand’s
Facebook, Google+, Twitter, YouTube, Flickr, Instagram, or other social media pages.

18
Social Media Marketing Advantages:
• Targeted and personal
• Interactive
• Immediate and timely
• Real-time marketing
• Cost effective
• Engagement and social sharing capabilities

19
Social Media Marketing Challenges
• For example, such social networks are largely user controlled.

• However, marketers can’t simply muscle their way into consumers’ digital interactions—they
need to earn the right to be there.
• Rather than intruding, marketers must become a valued part of the online experience by
developing a steady flow of engaging content.
• Also, because consumers have so much control over social media content, even a seemingly
harmless social media campaign can backfire.

20
 Let’s Discuss!

• Have you thought about becoming an influencer on social media?

• If so or If not, what topics are you interested in doing so?

21
Mobile Marketing

• Mobile marketing delivers messages, promotions, and other

content to on-the-go consumers through mobile phones,
smartphones, tablets, and other mobile devices.
• For consumers, a smartphone or tablet can be a handy
shopping companion.
• As a result, mobile advertising spending is surging.

• Mobile marketing: TripAdvisor’s mobile app –“your ultimate

travel companion”–gives users as-they-travel access to
crowd-sourced information about hotels, restaurants, places
to go, and things to see worldwide.
• And booking options are always just a tap away.

22
Forms of Direct and Digital Marketing

The traditional forms are still heavily used and that the new and old must be integrated for maximum impact.

23
Traditional Direct Marketing Forms
• Direct mail is well suited to direct, one-to-one communication.
• It permits high target-market selectivity, can be personalized, is flexible, and
allows the easy measurement of results.

• Direct-mail marketing involves an offer, announcement, reminder, or other

item to a person at a particular address.
o Personalized
o Easy-to-measure results
o Costs more than mass media
o Provides better results than mass media

24
Catalog Marketing

• Catalog marketing involves printed and web-based catalogs.

• Benefits of web-based catalogs
o Lower cost than printed catalogs
o Unlimited amount of merchandise
o Real-time merchandising
o Interactive content
o Promotional features
• Challenges of web-based catalogs
o Require marketing
o Difficulties in attracting new customers

25
Telemarketing

• Telemarketing involves using the telephone to sell directly to consumers and

business customers.
• Outbound telephone marketing sells directly to consumers and businesses.
• Inbound telephone marketing uses toll-free numbers to receive orders from
television and print ads, direct mail, and catalogs.
• Benefits:
o Purchasing convenience
o Increased product service and information
• Challenges:
o Unsolicited outbound telephone
26
 Let’s Discuss!

• What are the benefits and challenges of telephone and catalog-based direct
marketing?
• Your parents' generation?

27
Direct-response television marketing (DRTV Marketing)

• Direct-response television marketing includes the following:

o 60 to 120 second advertisements that describe products or give customers a
toll-free number or website for ordering
o 30-minute infomercials such as home shopping channels

• Successful direct-response advertising campaigns can ring up big sales.

• Cleaners, stain removers, kitchen gadgets

28
Kiosk Marketing

• Kiosk marketing: The in-store Home Depot Appliance Finder kiosk helps
customers find and buy the products they want on the spot. Sales associates
can also use the kiosk as a sales tool.

29
Recent Trends in Kiosk Marketing

• As consumers become more and more comfortable with digital and touch-screen
technologies, many companies are placing information and ordering machines—called
kiosks—in stores, airports, hotels, college campuses, and other locations.
• Kiosks are everywhere these days, from self-service hotel and airline check-in devices, to
unmanned product and information kiosks in malls, to in-store ordering devices that let you
order merchandise not carried in the store.
• Many modern “smart kiosks” are now wireless-enabled.

• And some machines can even use facial recognition software that lets them guess gender
and age and make product recommendations based on that data.

30
Public Policy Issues in Direct and Digital Marketing

• Direct marketing excesses sometimes annoy or offend consumers.

• For example, most of us dislike direct-response TV commercials that are too
loud, long, and insistent.
• Our mailboxes fill up with unwanted junk mail, our email inboxes bulge with
unwanted spam, and our computer, phone, and tablet screens flash with
unwanted display or pop-up ads.

31
Public Policy Issues in Direct and Digital Marketing

• Irritation includes annoying and offending customers.

• Unfairness includes taking unfair advantage of impulsive or less-
sophisticated buyers.
• Deception includes “heat merchants” who design mailers and write copy
designed to mislead consumers.
• Fraud includes identity theft and financial scams.
• Consumer privacy involves concerns that marketers may have too much
information and use it to take unfair advantage.

32
Public Policy Issues in Direct and Digital Marketing

• A Need for Action

• General Data Protection Regulation (GDPR)
o The GDPR sets strict requirements for collecting and protecting personal
information about people who live in the European Union and gives European
consumers more control over what is collected and how it is used.
• Children’s Online Privacy Protection Act (C O P P A)
o The GDPR sets strict requirements for collecting and protecting personal
information about people who live in the European Union and gives
European consumers more control over what is collected and how it is
used.
33
 Let’s Discuss!

• What must marketers consider when designing a site for children?

34
Group In-Class Exercise: Marketing Ethics

• Home hubs that contain voice technologies and microphones, such as Amazon’s Echo with
Alexa and Google’s Nest Hub with Google Assistant, are popular devices that continuously
listen in for commands.
• Many consumers like the convenience that comes with the home hubs but worry about their
privacy. In response, people often place the devices in common areas but not in bedrooms or
other more private areas.
• Wherever the devices are located, marketers could conceivably use them to collect
information that could be used to microtarget selling efforts to consumers.
• This possibility along with recent revelations about other devices, such as the unadvertised,
on-device microphone included Amazon’s Nest Guard that lets Amazon collect information
in order to provide future features, plus reports of Amazon employees listening in on Alexa
conversations, have made some consumers paranoid about who is listening.

35
Questions to Answer

• How should companies that offer home hubs address consumer concerns
about privacy violations?
• Is it ethical for marketers to gather and use data from inside the home to
improve the value proposition to consumers? Explain.

36
Announcement

• 11/4 Friday
o Quiz - Chapters 9, 14

• 11/7 Monday
o Exam 3 – Chapters 8, 9, 14

37