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E-commerce 2015 business. technology. society. eleventh edition global edition Kenneth C. Laudon Carol Guercio E-commerce 2015 business. technology. society. eleventh edition global edition Kenneth C. Laudon Carol Guercio Traver Copyright © 2016 Pearson Education, Ltd.

Chapter 7 Social, Mobile, and Local Marketing Copyright © 2015 Pearson Education, Inc. 2016 Chapter 7 Social, Mobile, and Local Marketing Copyright © 2015 Pearson Education, Inc. 2016 Ltd.

Class Discussion Facebook: Putting Social Marketing to Work n Have you ever made a Class Discussion Facebook: Putting Social Marketing to Work n Have you ever made a purchase based on something you have read or seen on Facebook? What was the product and what made you interested? n What obstacles does Facebook face in monetizing itself as a marketing and advertising platform? n Are there other ways for Facebook to make a profit from marketers and advertisers? Copyright © 2016 Pearson Education, Ltd. Slide 1 -3

Introduction to Social, Mobile, and Local Marketing n New marketing concepts v Conversations v Introduction to Social, Mobile, and Local Marketing n New marketing concepts v Conversations v Engagement n Impact of smartphones and tablets n Social-mobile-local nexus v Strong ties between consumer use of social networks, mobile devices, and local shopping Copyright © 2016 Pearson Education, Ltd. Slide 1 -4

Online Marketing Platforms Figure 7. 2, Page 462 SOURCE: Based on data from e. Online Marketing Platforms Figure 7. 2, Page 462 SOURCE: Based on data from e. Marketer, Inc. , 2014 a; BIA/Kelsey 2014 a, 2014 b Copyright © 2016 Pearson Education, Ltd. Slide 1 -5

Social Marketing n Traditional online marketing goals v Deliver business message to the most Social Marketing n Traditional online marketing goals v Deliver business message to the most consumers n Social marketing goals v Encourage consumers to become fans and engage and enter conversations v Strengthen brand by increasing share of online conversation Copyright © 2016 Pearson Education, Ltd. Slide 1 -6

Social Marketing Players n The most popular sites account for 90% of all social Social Marketing Players n The most popular sites account for 90% of all social network visits v Facebook, Google+, Twitter, Linked. In, Pinterest, Instagram, Tumblr v Unique visitors vs. engagement n Engagement measures the amount and intensity of user involvement n Facebook dominates in both measures v Dark social – sharing outside of major social networks (e-mail, IM, texts, etc. ) Copyright © 2016 Pearson Education, Ltd. Slide 1 -7

Engagement at Top Social Sites Figure 7. 3, Page 464 Copyright © 2016 Pearson Engagement at Top Social Sites Figure 7. 3, Page 464 Copyright © 2016 Pearson Education, Ltd. SOURCE: Based on data from Miller, 2014 a; e. Marketer, Inc. , 2013 a. Slide 1 -8

The Social Marketing Process n Five steps in social marketing, also applicable to local The Social Marketing Process n Five steps in social marketing, also applicable to local and mobile marketing Figure 7. 4, Page 465 Copyright © 2016 Pearson Education, Ltd. Slide 1 -9

Facebook Marketing n Basic Facebook features v News Feed v Timeline (Profile) v Graph Facebook Marketing n Basic Facebook features v News Feed v Timeline (Profile) v Graph Search n Social density of audience is magnified v Facebook is largest repository of deeply personal information v Facebook geared to maximizing connections between users Copyright © 2016 Pearson Education, Ltd. Slide 1 -10

Facebook Marketing Tools n Like Button n Brand Pages n News Feed Page Post Facebook Marketing Tools n Like Button n Brand Pages n News Feed Page Post Ads n Right-Hand Column Sidebar Ads n Mobile Ads n Facebook Exchange (FBX) Copyright © 2016 Pearson Education, Ltd. Slide 1 -11

Typical Facebook Marketing Campaign n Establish Facebook brand page n Use comment and feedback Typical Facebook Marketing Campaign n Establish Facebook brand page n Use comment and feedback tools to develop fan comments n Develop a community of users n Encourage brand involvement through video, rich media, contests n Use display ads for other Facebook pages and social search n Display Like button liberally Copyright © 2016 Pearson Education, Ltd. Slide 1 -12

Measuring Facebook Marketing Results n Basic metrics: v Fan acquisition (impressions) v Engagement (conversation Measuring Facebook Marketing Results n Basic metrics: v Fan acquisition (impressions) v Engagement (conversation rate) v Amplification (reach) v Community v Brand strength/sales n Facebook analytics tools v Facebook Page Insights v Social media management systems (Hoot. Suite) v Analytics providers (Google Analytics, Webtrends) Copyright © 2016 Pearson Education, Ltd. Slide 1 -13

Insight on Technology: Class Discussion Fairmont Hotels n How do social technologies help identify Insight on Technology: Class Discussion Fairmont Hotels n How do social technologies help identify and attract loyal customers? n What are the challenges in measuring the effectiveness of social campaigns? n What were the advantages Fairmont Hotels found in using Google Analytics? Copyright © 2016 Pearson Education, Ltd. Slide 1 -14

Twitter Marketing n Real-time interaction with consumers n 270 million active users worldwide v Twitter Marketing n Real-time interaction with consumers n 270 million active users worldwide v Over 75% access Twitter from mobile device n Will Twitter become the next Google? n Basic features v Tweets and retweets v Followers v Hashtags Copyright © 2016 Pearson Education, Ltd. Slide 1 -15

Twitter Marketing Tools n Promoted Tweets n Promoted Trends n Promoted Accounts n Enhanced Twitter Marketing Tools n Promoted Tweets n Promoted Trends n Promoted Accounts n Enhanced Profile Page n Amplify n Television Ad Retargeting n Lead Generation Cards n Mobile Ads Copyright © 2016 Pearson Education, Ltd. Slide 1 -16

Typical Twitter Marketing Campaign n Follow others relevant to your content and conversation n Typical Twitter Marketing Campaign n Follow others relevant to your content and conversation n Experiment with simple Promoted Tweets n For larger budgets, use Promoted Trends and TV ad retargeting n For retail business local sales, build Lead Generation Card Copyright © 2016 Pearson Education, Ltd. Slide 1 -17

Measuring Twitter Marketing Results n Similar to Facebook results v Fan acquisition, engagement, amplification, Measuring Twitter Marketing Results n Similar to Facebook results v Fan acquisition, engagement, amplification, community, brand strength/sales n Analytics tools v Twitter’s real-time dashboard v Twitter’s Timeline activity dashboard v Third-party tools n Tweet. Deck n Twitalyzer n Back. Tweets Copyright © 2016 Pearson Education, Ltd. Slide 1 -18

Pinterest Marketing n One of the fastest-growing and largest image- sharing sites n Enables Pinterest Marketing n One of the fastest-growing and largest image- sharing sites n Enables users to talk about brands using pictures rather than words n Features include: v v v Pins and re-pins to boards Share Follow Contributors Links to URLS Price displays Copyright © 2016 Pearson Education, Ltd. Slide 1 -19

Pinterest Marketing Tools n Promoted pins n Add Pin It and Follow buttons n Pinterest Marketing Tools n Promoted pins n Add Pin It and Follow buttons n Pin as display ad n Theme-based (lifestyle) boards n Brand pages n URL link to stores n Retail brand Pins n Integration with other social sites n Network with users, followers, others Copyright © 2016 Pearson Education, Ltd. Slide 1 -20

Typical Pinterest Marketing Campaign n Create Pinterest brand page and multiple lifestyle-themed boards v Typical Pinterest Marketing Campaign n Create Pinterest brand page and multiple lifestyle-themed boards v Improve quality of photos v Use URL links and keywords n Utilize Pinterest product pins, Pin It buttons n Integrate with Facebook and Twitter n Measuring Pinterest Marketing Results v Same dimensions as Facebook, Twitter Copyright © 2016 Pearson Education, Ltd. Slide 1 -21

The Downside of Social Marketing n Loss of control v Where ads appear in The Downside of Social Marketing n Loss of control v Where ads appear in terms of other content v What people say n Posts n Comments n Inaccurate or embarrassing material n In contrast, TV ads maintain near complete control Copyright © 2016 Pearson Education, Ltd. Slide 1 -22

Insight on Society: Class Discussion Marketing to Children of the Web in the Age Insight on Society: Class Discussion Marketing to Children of the Web in the Age of Social Networks Why is online marketing to children a controversial practice? n What is the Children’s Online Privacy Protection Act (COPPA) and how does it protect the privacy of children? n How do companies verify the age of online users? n Should companies be allowed to target marketing efforts to children under the age of 13? n Copyright © 2016 Pearson Education, Ltd. Slide 1 -23

Mobile Marketing n More than 252 million Americans use mobile devices v 153 million Mobile Marketing n More than 252 million Americans use mobile devices v 153 million use smartphones, 150 million use tablets v Devices used multiple times per day n Mobile marketing formats v Banner ads, rich media ads, and video ads v Games v E-mail and text messaging v In-store messaging v Quick Response (QR) codes v Couponing Copyright © 2016 Pearson Education, Ltd. Slide 1 -24

The Growth of Mobile Commerce Figure 7. 5, Page 491 Copyright © 2016 Pearson The Growth of Mobile Commerce Figure 7. 5, Page 491 Copyright © 2016 Pearson Education, Ltd. SOURCE: Based on data from e. Marketer, Inc. , 2014 e. Slide 1 -25

How People Use Mobile Devices n Largest use: entertainment n Increasing use of search How People Use Mobile Devices n Largest use: entertainment n Increasing use of search v Restaurants and deals v People, places, things n 7% of mobile users shop n Physical retail goods are 85% of m- commerce sales Copyright © 2016 Pearson Education, Ltd. Slide 1 -26

How People Use Their Mobile Devices Figure 7. 7, Page 493 Copyright © 2016 How People Use Their Mobile Devices Figure 7. 7, Page 493 Copyright © 2016 Pearson Education, Ltd. SOURCE: Based on data from AOL/BBDO, 2012. Slide 1 -27

In-App Experiences and Ads n Mobile use v Apps— 85% of smartphone time n In-App Experiences and Ads n Mobile use v Apps— 85% of smartphone time n 75% of app time spent on user’s top 4 apps Social networking— 25% n Games— 16% n Radio— 8% n n Most effective in-app ads v Placed in most popular apps v Targeted to immediate activities and interests Copyright © 2016 Pearson Education, Ltd. Slide 1 -28

The Multi-Screen Environment n Consumers becoming multi-platform v Desktops, smartphones, tablets, TV v 90% The Multi-Screen Environment n Consumers becoming multi-platform v Desktops, smartphones, tablets, TV v 90% of multi-device users use multiple devices to complete action n View ad on TV, search on smartphone, purchase on tablet n Marketing implications v Consistent branding v Cross-platform design n Responsive design Copyright © 2016 Pearson Education, Ltd. Slide 1 -29

Mobile Marketing Features n 35% of all online marketing n Dominant players are Google, Mobile Marketing Features n 35% of all online marketing n Dominant players are Google, Facebook n Mobile device features v Personal communicator and organizer v Screen size and resolution v GPS location v Web browser v Apps v Ultraportable and personal v Multimedia capable Copyright © 2016 Pearson Education, Ltd. Slide 1 -30

The Top Mobile Marketing Firms by Revenue Figure 7. 10, Page 497 Copyright © The Top Mobile Marketing Firms by Revenue Figure 7. 10, Page 497 Copyright © 2016 Pearson Education, Ltd. SOURCE: Based on data from e. Marketer, Inc. , 2014 a. Slide 1 -31

Mobile Marketing Tools: Ad Formats n Mobile marketing formats v Search ads v Display Mobile Marketing Tools: Ad Formats n Mobile marketing formats v Search ads v Display ads v Video v Messaging: SMS text messaging with coupons or flash marketing messages v Others: e-mail and sponsorships n Mobile interface versions of social network techniques Copyright © 2016 Pearson Education, Ltd. Slide 1 -32

Mobile Ad Spending by Format Figure 7. 11, Page 498 Copyright © 2016 Pearson Mobile Ad Spending by Format Figure 7. 11, Page 498 Copyright © 2016 Pearson Education, Ltd. SOURCE: Based on data from e. Marketer, Inc. , 2014 a. Slide 1 -33

Insight on Business: Class Discussion Mobile Marketing: Land Rover Seeks Engagement on the Small Insight on Business: Class Discussion Mobile Marketing: Land Rover Seeks Engagement on the Small Screen n Why do mobile devices represent such a promising opportunity for marketers? n Have you ever responded to mobile marketing messages? n What are some of the new types of marketing that mobile devices have spawned? Copyright © 2016 Pearson Education, Ltd. Slide 1 -34

Mobile Marketing Campaigns n Mobile Web site n Facebook and Twitter brand pages n Mobile Marketing Campaigns n Mobile Web site n Facebook and Twitter brand pages n Mobile versions of display advertising campaigns n Ad networks n Interactive content aimed at mobile user n Tools for measuring responses v Key dimensions follow desktop and social marketing metrics Copyright © 2016 Pearson Education, Ltd. Slide 1 -35

Measuring the Effectiveness of a Mobile Marketing Campaign Figure 7. 12, Page 503 Copyright Measuring the Effectiveness of a Mobile Marketing Campaign Figure 7. 12, Page 503 Copyright © 2016 Pearson Education, Ltd. Slide 1 -36

Local and Location-Based Marketing n Location-based marketing v Targets messages to users based on Local and Location-Based Marketing n Location-based marketing v Targets messages to users based on location v Marketing of location-based services n Location-based services v Provide services to users based on location Personal navigation n Point-of-interest n Reviews n Friend-finders, family trackers n n Consumers have high likelihood of responding to local ads Copyright © 2016 Pearson Education, Ltd. Slide 1 -37

The Growth of Local and Location. Based Mobile Marketing n Prior to 2005, nearly The Growth of Local and Location. Based Mobile Marketing n Prior to 2005, nearly all local advertising was non-digital v Google Maps (2005) n Enabled targeting ads to users based on IP address and general geographic location v Smartphones, Google’s mobile maps app (2007) n Enabled targeting ads based on GPS n Location-based mobile marketing v Expected to triple over next five years Copyright © 2016 Pearson Education, Ltd. Slide 1 -38

Local, Mobile, and Location-Based Mobile Marketing Figure 7. 13, Page 505 Copyright © 2016 Local, Mobile, and Location-Based Mobile Marketing Figure 7. 13, Page 505 Copyright © 2016 Pearson Education, Ltd. Slide 1 -39

Location-Based Marketing Platforms n Google v Android OS, Google Maps, Google Places, Ad. Mob, Location-Based Marketing Platforms n Google v Android OS, Google Maps, Google Places, Ad. Mob, Ad. Words n Facebook n Apple v i. OS, i. Ad n Twitter n Others: YP, Pandora, Millenial Copyright © 2016 Pearson Education, Ltd. Slide 1 -40

Location-Based Mobile Marketing Technologies n Two types of location-based marketing techniques v Geo-aware techniques Location-Based Mobile Marketing Technologies n Two types of location-based marketing techniques v Geo-aware techniques n v Proximity marketing n n Identify location of user’s device and target ads, recommending actions within reach Identify a perimeter around a location and target ads and recommendations within that perimeter Identifying locations GPS signals v Cell-tower locations v Wi-Fi locations v Copyright © 2016 Pearson Education, Ltd. Slide 1 -41

Why Is Local Mobile Attractive to Marketers? n Mobile users more active, ready to Why Is Local Mobile Attractive to Marketers? n Mobile users more active, ready to purchase than desktop users n 80% of U. S. smartphone users use mobile devices to search for local products, services v 50% visit a store within 1 day of local search v 18% make a purchase Copyright © 2016 Pearson Education, Ltd. Slide 1 -42

Location-Based Marketing Tools n Geo-social-based services marketing n Location-based services marketing n Mobile-local social Location-Based Marketing Tools n Geo-social-based services marketing n Location-based services marketing n Mobile-local social network marketing n Proximity marketing n In-store messaging n Location-based app messaging Copyright © 2016 Pearson Education, Ltd. Slide 1 -43

Location-Based Marketing Campaigns n Location-based considerations v Consider action-based, time-restrained offers and opportunities v Location-Based Marketing Campaigns n Location-based considerations v Consider action-based, time-restrained offers and opportunities v Consider target demographic and location-aware mobile user demographics n Measuring marketing results v Same measures as mobile and Web marketing v Metrics for measuring unique characteristics Reservations n Click-to-call n Friend n Purchase n Copyright © 2016 Pearson Education, Ltd. Slide 1 -44

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