E-marketing Strauss Test – Flashcards
Unlock all answers in this set
Unlock answersquestion
1.Explain how advances in internet and information technology offer benefits and challenges to consumers, businesses, marketers, and society.
answer
â¢Individuals: The internet provides individual users with convenient and continuous access to information, entertainment, networking, and communication. â¢Communities form around shared photos (Flickr), videos (YouTube), and individual or company profiles (Facebook). â¢Businesses: The digital environment enhances processes and activities for businesses. â¢Societies and economies are enhanced through more efficient markets, more jobs, information access, communication globalization, and more.;
question
2.Distinguish between e-business and e-marketing.
answer
E-business is the optimization of a company's business activities using digital technology. E-commerce is the subset of e-business focused on transactions. E-marketing is the result of information technology applied to traditional marketing.
question
3.Explain how increasing buyer control is changing the marketing landscape.
answer
The e-marketing landscape is changing rapidly due to consumer-generated content, mobile internet access, social media and disruptive technologies.
question
4.Identify several trends that may shape the future of e-marketing, including the semantic Web.
answer
Users can easily find information based on its type. The value of the semantic Web is information on demand. Experts believe the semantic Web will become a reality over the next decade.
question
1.Explain the importance of strategic planning, strategy, e-business strategy, and e-marketing strategy.
answer
Strategic Planning -The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing market opportunities. -Process identifies firm's goals for: 1.Growth 2.Competitive position 3. Geographic scope 4.Other objectives, such as industry, products, channels, etc. Strategy- Strategy is the means to achieve a goal. -E-business strategy: Deploys enterprise resources to reach performance objectives and create competitive advantage. -E-marketing strategy: Capitalizes on information technology to reach specified objectives.
question
2.Identify the main e-business models at the activity, business process, and enterprise levels.
answer
Activity Level E- Business Models â¢Online purchasing, E-mail, Online sales promotions,Pricing strategies Business Process E-Business Models â¢Customer relationship management (CRM), Supply chain management â¢Enterprise resource planning (ERP), Mass customization Enterprise Level Models â¢E-commerce refers to online transactions: selling goods and services on the internet. â¢Social commerce uses social media to facilitate online sales. â¢A portal is a point of entry to the internet that combines diverse content from many sources.
question
3.Discuss the use of performance metrics and the Balanced Scorecard to measure e-business and e-marketing performance.
answer
Performance metrics are specific measures designed to evaluate the effectiveness and efficiency of operations, online and offline. Performance metrics: Provide measurable outcomes. Must be easy to understand and use. Must be actionable. Can motivate employees to make decisions that lead to desired outcomes. The Balanced Scorecard provides a framework for understanding e-marketing metrics. The Balanced Scorecard provides 4 perspectives. 1.-Customer perspective - measure ways to measure goals such as customer satisfaction, engagement 2.-Internal perspective - goals related to the quality of online services and measures for the entire supply 3.-Learning and growth perspective- includes human resources, product innovation and continuous improvement of marketing processes. 4.-Financial perspective includes ways to measure financial goals such as sales, profits and return on investment (ROI),
question
1.Discuss the nature and importance of an e-marketing plan and outline its 7 steps.
answer
The e-marketing plan is a blueprint for e-marketing strategy formulation and implementation. Links the firm's e-business strategy with technology-driven marketing strategies. The plan serves as a road map to guide the firm, allocate resources, and make adjustments. 7 Steps: 1.Situation analysis 2.E-marketing strategic planning 3.Objectives 4.E-marketing strategy 5.Implementation plan 6.Budget 7.Evaluation plan
question
2.List some key revenues and costs identified during the budgeting step of the planning process.
answer
â¢Revenue forecast â¢Intangible benefits, such as brand equity â¢Cost savings â¢E-Marketing costs ?Technology costs ? Site design ? Salaries ?Other site development expenses ? Marketing communication ?Social media communication
question
1.Discuss overall trends in internet access, usage, and purchasing around the world.
answer
usage increased more than 82% between 2007 and 2009. There are over 2 billion internet users. Computer Ownership in Latin America ranged from 43% in Venezuela to 22% in Mexico. Ownership was 2% in Bangladesh.
question
2.Define emerging economies and explain the vital role of information technology in economic development.
answer
Emerging economies are characterized by a rapidly developing middle class, which creates demand for products and services. Importance of Information Technology The internet and its supporting technologies can jump-start national economies. Bangalore, India is the center of India's explosive growth in software and IT services. E-marketers in emerging economies confront marketing issues and unique challenges related to the conditions of operating within a still developing nation. E-commerce in emerging markets is often hampered by limited use of credit cards and lack of trust in safely conducting online transactions.
question
3.Outline how e-marketers apply market similarity and analyze online purchase and payment behaviors in planning market entry opportunities.
answer
Market Similarity: Marketers often choose foreign markets that have characteristics similar to their home market for initial entry. A U.S. company might first target Canada, UK, and Australia before targeting France, Japan or Germany, for example. CAGE (culture, administration, geography, economic) framework helps e-marketers evaluate similarities and differences between markets.
question
1.Describe how e-marketing strategy is influenced by computer and telephone access, credit card availability, attitudes toward internet use, Web site design, and infrastructure issues.
answer
Challenges of wireless e-marketing: =Modification of content for small screens =Text entry using tiny keypads =Content development =Pricing and secure payments E-marketers must also understand that mobile consumer behavior differs from desktop or laptop consumer behavior.
question
2.Discuss the controversy related to the digital divide.
answer
The division between those who have access to information and those who don't is termed "digital divide." Disparities with regard to technology access can create a digital divide between countries or populations, such as urban and rural consumers in China. The digital divide raises challenging questions for global policy, international business, and entrepreneurship: what are their responsibilities, if any, for narrowing the gap?
question
3.Explain how e-marketing is being used with very low income consumers.
answer
Explosive growth of mobile phones has enabled e-marketers to reach base of the pyramid consumer segments. Mobile banking is one of the most successful e-marketing efforts in LDCs. In heavily agricultural countries, mobile applications for farmers are making them more productive.
question
1.Identify the three main sources of data that e-marketers use to address research problems.
answer
1.Internal Records Accounting, finance, production, and marketing personnel collect and analyze data for marketing planning. 2.Secondary Data Data that that is acquired from another source, that may not meet specific needs. Marketers continually scan the macro environment for threats and opportunities (business intelligence). 3.Primary Data Primary data are information gathered for the first time to solve a particular problem.
question
2.Discuss how and why e-marketers need to check the quality of research data gathered online.
answer
The data, may be inaccurate or bias. Using inaccurate data looks affects your company's image. Or can lead to bad decisions Look at the author of the data, and their background. Check when the site was last updated. Determine how comprehensive the site is. try to validate the information at other sources and check for accuracy.
question
3.Explain why the internet is used as a contact method for primary research and describe the main internet-based approaches to primary research.
answer
Using the internet, it is easier to access groups of people for the research, and cost effective. Online experiments Online focus groups Online observation Content analysis Online survey research
question
1.Describe several ways to monitor the Web for gathering desired information.
answer
Your own content Channels, Social media and blogs usinng Technorati.com alerts and RSS feeds Industry news via e-mail newsletters or competitive site monitoring Social communities in the company's industry Web analytics
question
2.Contrast client-side, server-side, and real-space approaches to data collection.
answer
Client side Data refers to collecting information about consumer click behavior. Server side Data- refers to tracking number of users, locations and what users buy. Real-space - refers to technological approaches to collect data offline
question
3.Explain the concepts of big data and cloud computing.
answer
Big Data is your data. It's the information owned by your company, obtained and processed through new techniques to produce value in the best way possible. The current trend in data storage is toward cloud computing: a network of online Web servers used to store and manage data.
question
4.Highlight four important methods of analysis that e-marketers can apply to information in the data warehouse.
answer
Four important types of analysis for marketing decision making include: Data mining Customer profiling RFM (recency, frequency, monetary value) analysis Report generating
question
1.Discuss general statistics about the internet population.
answer
85% of U.S. consumers used the internet in 2012. Approximately 1.8 billion people have access to the internet, 32.7% of the global population. Top ten countries account for 60% of all users and adoption rates range from 10-84%.
question
2.Describe the internet exchange process and the technological, social/cultural and legal context in which consumers participate in this process.
answer
Exchange is a basic marketing concept. It refers to the act of obtaining a valued object by offering something in return. Technological Broadband users enjoy the internet more. Web 2.0 technologies are driving marketing strategies and tactics. Social/culture Three cornerstones for attracting customers online: Reputation: Brand image and reputation are based on the market's perception. Relevance: Consumers don't like being interrupted with irrelevant communication. Engagement: Marketers must provide relevant content or entertainment. Legal Context llegal downloads, unsolicited emails.
question
3.Outline the broad individual characteristics,psychology, and consumer resources that consumers bring to the online exchange.
answer
Individual characteristics affect internet use. Demographics such as age, income, education, ethnicity, and gender. Attitudes toward technology. Online skill and experience. Goal orientation. Consumer Resources Consumers perceive value as benefits minus costs. These costs constitute a consumer's resources for exchange: Money, time, energy
question
4.Highlight the five main categories of outcomes that consumers seek from online exchanges.
answer
Connect; Create; Enjoy; Learn; Trade
question
1.Outline the characteristics of the three major markets for e-business.
answer
-Business Market: Marketing of products for use in the business operation, as components, or for resale. - Government Market: Federal, state, county, city, and other agencies. -Consumer Market: The consumer market involves marketing goods and services to end consumers.
question
2.Explain why and how e-marketers use market segmentation to reach online customers.
answer
Marketers create segments to identify and reach the right people at the right time. Demographics Geographic location Psychographics -Personality Values Lifestyles Activities Interests Behavior with regard to the product â¢Marketers using benefit segmentation to form groups of consumers based on the benefits they desire from products. â¢Marketers often segment by light, medium, and heavy product usage. â¢Marketers can segment users as brand loyal, loyal to a competitive product, switchers, and non users.
question
1.Outline several types of internet usage segments and their characteristics.
answer
Marketers can segment according to technology-use characteristics such as smartphone, tablet, or PC and which browser they use. â¢90%of smartphone users have taken an action, such as booking a hotel, after searching.
question
2.Describe two important coverage strategies e-marketers can use to target online customers.
answer
Two targeting strategies are well-suited for the internet. Niche marketing. Micromarketing (individualized targeting).
question
3.Define differentiation and positioning and give examples of online companies using them.
answer
Differentiation is what a company does to the product to convince the market that the product has specific advantages. Zappos - Personnel differentiation. Positioning is a strategy to create a desired image for a company and its products in the minds of a chosen user segment. Youtube competitive position
question
1.Define product and describe how it contributes to customer value.
answer
-A product is a bundle of benefits that satisfies needs of organizations or consumers. Includes goods, services, ideas, people, and places. Products such as search engines are unique to the internet while others simply use the internet as a new distribution channel. -Customer Value = Benefits - Costs -Product decisions must be made that deliver benefits to customers. Attributes; Branding; Support Services; Labeling; Packaging.
question
2.Discuss how attributes, branding, support services, and labeling apply to online products.
answer
-Attributes include quality and specific features. The internet increases customer benefits in ways that have revolutionized marketing. Media, music, software, and other digital products can be presented on the Web. User personalization of the shopping experience can be achieved. -On the internet, a good brand name should be short, memorable, easy to spell, and translate well into other languages. -Customer service reps help customers with installation, maintenance, product guarantees, service warranties, etc. to increase customer satisfaction. CompUSA combines online and offline channels to increase customer support. -Labeling has digital equivalents in the online world. Online labels provide information about product usage and features. Online labels also provide extensive legal information about the software product.
question
3.Outline some of the key factors in e-marketing enhanced product development.
answer
Many new products, such as YouTube, Yahoo!, and Twitter, were introduced by "one-pony" firms built around the company's first successful product. Other firms have added internet products to an already successful product mix. Product mix strategies can help marketers integrate offline and online strategies.
question
1.Identify the main fixed and dynamic pricing strategies used for selling online.
answer
Fixed pricing strategies are: Price leadership, Promotional pricing, Freemium pricing. Dynamic pricing can be initiated by the seller or buyer. There are 2 types: Segmented pricing, Price negotiation.
question
2.Discuss the buyer's view of pricing online in relation to real costs and buyer control.
answer
Buyer's costs may include money, time, energy, and psychic costs. But they often enjoy many cost savings: The internet is convenient and fast. Self-service saves time. One-stop shopping ; integration save time. Automation saves energy.
question
3.Highlight the seller's view of pricing online in relation to internal and external factors.
answer
Internal factors include pricing objectives, marketing mix strategy, and information technology. External factors include market structure and market efficiency.
question
4.Outline the arguments for and against the internet as an efficient market.
answer
External market factors place downward pressure on internet prices and contribute to efficiency: Flash sales; High price elasticity; Reverse auctions; Tax-free zones; Venture capital; Competition; Frequent price changes; Smaller price change increments. The internet does not act like an efficient market with respect to narrow price dispersion for various reasons: Branding and brand strength; Differentiation; Online pricing; Delivery options; Time-sensitive shoppers; Switching costs; Second-generation shopping agents.
question
5.Describe several types of online payment systems and their benefits to online retailers.
answer
Electronic money uses the internet and computers to exchange payments electronically. Off-line e-money payment systems include: Smart chips in cellphones; Mobile wallets. For one-time payments, PayPal has become the industry standard with over 113 million accounts worldwide.
question
1.Distinguish among e-commerce, m-commerce, social commerce, and F-commerce.
answer
In the e-commerce model, merchants, such as Zappos, set up storefronts online and sell to businesses and consumers. Mobile commerce occurs when consumers make a transaction with a smartphone or other mobile device. Social commerce uses social media and consumer interactions to facilitate online sales. In e-commerce terminology, Facebook commerce, or F-commerce, is a strategy that focuses on developing or designing ecommerce content and storefront sites within the Facebook social networking site.
question
2.Highlight how companies can use distribution channel metrics.
answer
Besides revenue, B2C performance metrics may include: ROI. Customer satisfaction levels. Customer acquisition costs. Conversion rates. Average order values. It is impossible to measure B2B revenue because it happens behind company walls. B2B metrics may include: Time from order to delivery. Order fill levels. Other activities that reflect functions performed by channel participants.
question
1.Define integrated marketing communication.
answer
IMC is a cross-functional process for planning, executing, and monitoring brand communications.
question
2.Explain how marketers use the AIDA model and the hierarchy of effects model.
answer
The AIDA and "think, feel, do" (hierarchy of effects) models help guide selection of online and offline MarCom tools to meet their goals.
question
3.List the five traditional marketing communication tools and distinguish between traditional media and social media.
answer
Advertising, Public relations, Sales promotion, Direct marketing, Personal selling.
question
4.Identify the differences in control and reach among owned, paid, and earned media.
answer
â¢Owned media carry communication messages from the organization to internet users on owned channels. â¢Paid media are properties owned by others who are paid to carry promotional messages. â¢Earned media are when individual conversations become the channel.
question
1.Discuss why companies use content marketing.
answer
Content marketing is the discipline of creating quality branded editorial content across all media channels and platforms to deliver engaging relationships, consumer value and measurable success for brands.
question
2.Describe the most commonly used owned media and their benefits for marketing.
answer
Company Website, Blog, E-mail. Primary goals are to: Engage consumers with positive brand content; Entice them to pass along content to others; Exercise CRM (customer relationship management).
question
3.Explain how and why marketers use search engine optimization.
answer
Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. Promoting a site to increase the number of backlinks, or inbound links, is another SEO tactic. An important aspect of SEO is making your website easy for both users and search engine robots to understand. SEO helps the engines figure out what each page is about, and how it may be useful for users.
question
4.Highlight some of the metrics marketers can use to evaluate owned media performance.
answer
â¢Podcasts: number of downloads and length of time listening. â¢Branded mobile apps: number of downloads, updates and actions. â¢Visits to sales promotion game sites. â¢Communication opt-in from content participants â¢Number of email messages read or forwarded to a friend.
question
1.Outline the characteristics, benefits, and limitations of paid media.
answer
The terms "paid media" and "advertising" are often used interchangeably. Paid media can engage target markets and move them to owned media and social media conversation (earned media).
question
2.List the most important paid media techniques and discuss how and when advertisers use each.
answer
Advertisers on Facebook can potentially reach over 1 billion members. Facebook ads offer narrow targeting, 70 different languages, interactive features, ease of creation, and excellent metrics.
question
1.Identify some key metrics used by advertisers to determine the effectiveness and efficiency of paid media.
answer
CPM (cost per thousand impressions), CPA (cost per action),CPC (cost per click)
question
1.Describe the five levels of user engagement and explain what each means for earned media.
answer
Collaborate, Create, Collect, Connect, Consume.
question
2.Explain the role of trust in earned media and its implications for consumer behavior.
answer
Earned media is the third-party sentiment about your company and its services or products. It's the media that attracts the attention of potential customers and aids in converting them into paying customers or clients and/or turning them into brand advocates.
question
3.List some key techniques for engaging users and discuss the importance of each.
answer
Multimedia sharing of photos, art, video, and music can generate online discussion. Wikis, Web sites that allow users to post, edit, and organize content, as well as online ratings and reviews can also be effective tools for engaging online users.
question
1.Highlight seven ways in which companies can attract users and move them up the engagement ladder.
answer
â¢Provide high-quality, timely, unique, and relevant information. â¢Create entertaining content. â¢Offer competitions. â¢Appeal to altruism. â¢Make an exclusive offer. â¢Reward influential and fans. â¢Incentive group behavior.
question
2.Discuss how a company can build, maintain, monitor, and repair its reputation online.
answer
Build: Have a blog, Get listed in directories, Encourage reviews, Gain some publicity, Get your business social. Monitor: Know what you can control, Know how to monitor your reputation, The internet in important. Repair: Paying someone to post positive reviews, Encouraging the trolls, Astroturfing, Lying, Ignoring the customer.
question
3.Identify specific metrics used to monitor, measure, and refine earned media activities.
answer
â¢General earned media metrics: number of users who interact with an application, time spent viewing a video, social media fan growth, etc. â¢Actions taken by users: Number of downloads of a white paper, ringtones, number of games played, polls voted, etc. â¢Conversations on blogs and elsewhere: Tweets/retweets, positive/negative comments, etc.
question
1.Define customer relationship management (CRM) and identify the major benefits to e-marketers.
answer
Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, With the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.
question
2.Describe social CRM and how it relates to traditional CRM.
answer
Social CRM is customer relationship management fostered by communication with customers through social networking sites, such as Twitter and Facebook. Traditional CRM software focuses primarily on tracking "traditional" methods of communication with your customers and prospects, such as phone calls, emails, and conversation notes from conferences or live meetings.
question
4.Highlight some of the company-side and client-side tools that e-marketers use to enhance their CRM processes.
answer
Company-Side: Cookies, Web log analysis, Data Mining, Behavioral targeting, Collaborative filtering, Outgoing e-mail/Distributed e-mail, Social media, iPOS terminals. Client-Side: Agents, Individualized Web portals, Wireless data services, Web forms, Fax-on-demand, Incoming e-mail, Rss Feeds.
