Electronic Marketing – Flashcards

A single blog post starts a huge negative PR slide for Dell.

Various e-Marketing strategies, tactics, and media: e-Commerce accounts for 27% of U.S. commerce sold Online advertising (over $20 Billion) Search engine advertising (accounts for 35% of new customers for firms) Online aggregators (brings together info and users - i.e. Monster.com) User-generated content (70% of consumers check online review sites) Online communities / social media sites (over 1 billion people) Social media influence scoring (Klout, PeerIndex, & Kred) Personalization (recommendation engines such as Amazon) Internet communications (e-mail , VoIP, instant messenger) Mobile internet (ubiquitous connectivity - anytime/anywhere) Local marketing (i.e. Google Local Search & Craigslist) Mobile marketing (text message marketing / location-

Web 2.0 connects people to computers & social networks. Mostly, the user produces the content. Think about it... If users could not create content (or be able to easily create content) where would social media be?

a firm's business activities using electronic media i.e. business processes, communications, sales, research, etc.

using technology/new media to create, communicate, and deliver value to a firm's customers. i.e. the use of networks/technology in the process of marketing

a subset of e-business focusing on economic transactions i.e. online sales

Expected to grow by 9-10%/year (Faster than in-person retail)

Growth spurred by more devices, products, & information

Devices: mobile phones, tablets, smaller portable netbooks Internet connectivity has become ubiquitous Growth in m-commerce (purchases made with mobile device)

Products: shift to digital media Digital media is more instantaneous (buyer gets product quicker). Books on shelf at Barnes & Noble are now downloadable eBooks. Magazines/newspapers can now be subscribed & viewed online

Information: easy to compare product prices & discounts. Consumers easily search for discount codes & compare prices. Mobile pricing apps: examples. Amazon's in-store discount promotion

shopping cart abandonment: 7 out of 10! in-store experiences: **It's important to recognize in-store experiences as a threat to e-commerce sales.

The answer: search engines(e-marketing tool) match consumers to firms

Search Engine Optimization

Problem Recognition v Information Search -(SEO) v Evaluation of Alternatives v Purchase v Post-purchase Evaluation

SEO is the active practice of optimizing a web site by improving internal and external aspects in order to increase the traffic the site receives from search engines. SEO considers: How Google's "unknown" search engine algorithm works (i.e. guessing the KFC secret recipe) How the algorithm weights certain website elements more heavily when popular keywords are used Example: using a keyword in a URL vs. text on a web page What keyword terms & phrases people use to search --Once you have this knowledge you can edit a site's content to increase the relevance to specific keywords: search position ↑ & web traffic ↑

SEO uses relevant keywords (KWs) widely searched for by consumers Ex: a candy store would probably want to use "candy, chocolate, etc." You identify the most popular searched for KWs then include them on your site in strategic ways / in certain areas of your web pages First thing to do: discover what KWs are most searched (related to your biz) Free tool: Google Keyword Tool

SEO helps your site appear earlier (i.e. higher) in search engine results page (SERP) The higher the position, the more traffic a site will receive

To optimize a site for a search engine use KWs as follows: Put KWs in the URL (Domain name) - yoursite.com Put KWs in a web page's title (in HTML code this is the tag) Place a KW as the first word in the Put KWs in the Header text (in HTML code this is the tag) Place a KW as the first word in the Using KWs in links (i.e. the linked text) within your site: Instead of: click here to view the FSU marketing department Use this: click here to view the FSU marketing department KW density on a page (how often you repeat the same KW) **External links: number (& quality) of links pointing to your site **New trend: social media is becoming a factor

Conducted in-depth research to determine search ranking factors uses a panel of search marketing experts

You can search for and register a domain name (i.e. URL) with KWs I have used & recommend GoDaddy.com to register domain names

information that describes something about the page Meta tags not presented on web pages (but, description is on SERP) An overrated SEO factor

Meta Description: A brief statement summarizing the page (use KWs) Keep them short and simple: don't overstuff with KWs Try not to exceed 156 characters

Meta Keywords: comma separated list of important KWs & phrases Try not to exceed 255 characters

Putting keywords in the domain name (aka URL) Instead of: dogetal.com Optimized url: "TallahasseeHotDogRestaurant.com" or "TallahasseeHotDogs.com" Possible issue: improve SEO versus a branded name Putting keywords in the web page's title Dog et al's : "Dog et al > Home" An optimized title would be "Hot Dogs in Tallahassee at Dog et al" Putting keywords in the "header" tags of a web page Instead of Welcome to Dog et al (note first word(s)) Use Tallahassee Hot Dogs at Dog et al or Dog et al: Hot Dogs in Tallahassee

View what KW tactics a site in a top position is using To do this you need to = View the Source Code.

-Buying links (exchange programs) and linking with spam sites -Overstuffing (i.e. too lengthy) domain name and title tag -Too many ads on a page -Hiding text with similar/same color as background Example: Google -Excessive repetition of keywords on pages You should present KWs and page text in a manner similar to having a conversation. Write for humans, not a search engine

How many CDs does Wal-Mart sell in the store? 200 Are they limited to what they carry in the store? Yes What about the internet? # of cd's available? Infinite # of sales: allows for greater product diversification, creating exponential number of sales. Basic idea: the Internet allows for infinite "shelf space" The web has unlimited "space" to promote more products

At the top of your search there will be the sponsored links in box at the very top, aka the paid search below is the rest of the links. These are the organic search results.

Organic search: results are listings on search engine results pages (SERPs) that appear because of their relevance to the search terms (i.e. SEO). This is also known as Natural Search. Everything we covered last class (SEO) was for organic search Google claims that users click organic search results more than ads Experts claim users avoid clicking "results" they know to be ads Still, paid ads can be very effective

Paid search: strategy where an advertiser (i.e. a firm) purchases web traffic from search engines. Firms select which KWs, when searched for, to show their ad in a search engine's "sponsored ads". Pay-per-click (PPC) is a preferred advertising model in which advertisers pay only when their ad is clicked. An alternative to PPC is CPM: cost per 1,000 views. Advertisers typically purchase KWs and phrases they believe their target market will search for. The price? Determined by Google AdWords! AdWords is Google's ad platform for paid search campaigns.

Instantly appear on the first page of results Cost control: You pay per click but can set a daily budget Possible to run different ads w/ different verbiage to compare each Possible to display ad based on the user's geographic region Google has a wealth of analytic tools to assess metrics

Click-through rate- Percentage of people who click your ad when it appears

Percentage of people who click your ad when it appears.. Realistic AdWords CTR bottoms out at about 1% What does this mean? Example: -1,000 people are presented with (i.e. "see") a Google SERP -1% (on average) would click your sponsored ad -10 people click your ad's link to visit your web site -Does everyone who comes to your site make a purchase? No -Conversion rate: % of a site's visitors who make a purchase -A lower-end conversion rate: 1% -A high-end conversion rate: 10% (and higher... based on many factors) -For this example of 10 visitors: maybe you make 1 sale.. RECAP -1,000 people saw your ad on Google SERPs -10 visitors to your site -Your site made 1 sale from these visitors -What is your profit from this sale? Was the juice worth the squeeze? Let's say your 1 sale produced a gross sale amount = $25 Your cost-of-goods-sold regarding that one item was $18 Gross profit: $25 - $18 = $7 Now: how much did you spend on PPC ads to get that sale? Remember: 10 people clicked the ad, but only 1 sale was made If your PPC was .90 cents, was the juice worth the squeeze? 10 clicks @ .90 per = $9 you spent on AdWords Profit: $25 - $18 (product cost) - $9 (ad cost) = - $2 net loss NO!

Google AdSense: other peoples' ads on your website You can customize how other peoples' ads look on your site You determine the size, color, location, border, font size, etc Higher performing ads: darker color = better You get a few cents per click Minimum payout is $100 Avg AdSense CTR: 1%-2%

Google AdWords: place your ads on Google SERPs

Social Media: The Fourth Revolution About every 10-15 years since the advent of computing, a new, major technology emerges 1970's: Mainframe computers 1980's: Personal computers 1990's: Internet Late 2000's: Social media / Social networking The next revolution? Mobile

Social media marketing (SMM) uses social media portals to positively influence consumers toward a website, firm, brand, product, service, or person. Typically, the end goal of SMM is "conversion," such as the purchase of a product, subscription to a newsletter, registration in an online community, or some other desirable consumer action.

SM are software platforms that connect a network of people Online resources people use for engagement & to share content Shared content in the form of: Video, photos, music, text, and humor Also: Information, ideas, and opinions Engagement: consumers interacting with other consumers & firms Think of social media as a consumer engagement tool

Today: social media has created the online social graph. The online social graph is the world wide web of people. This is a map constructed of linked people in social media sites. In contrast: the Internet is a map of linked web pages Social Graph: capture & use info about how individuals are connected Goal: deliver the right content to the right person at the right time Social media also creates social capital: The power / value of knowing more people & being more connected A resource consisting of the network of social connections to be drawnfrom by an individual (or firm) when needed

The online social graph is the world wide web of people. This is a map constructed of linked people in social media sites.

The power / value of knowing more people & being more connected A resource consisting of the network of social connections to be drawnfrom by an individual (or firm) when needed

Consumers who actively search for products, such as entering keywords in Google, are known as online purchasers Consumers who actively consult their social networks for advice on what products to purchase are known as social purchasers

Many firms have a social media marketing (SMM) "presence" SMM presence: start-up SM pages with no clear plan Many lack a social media marketing "strategy" SMM strategy: make a plan, set goals, create objectives

Social media is a large marketing communication channel. Advertisers & marketers disseminating messages. Social media is also a public customer service channel. Customer service reps try to resolve issues & complaints PROBLEM: a simultaneous marketing & service channel!

Social Media is Just a Fad Social Media is Just for the Young There is No Return in Social Media Marketing Social Media Marketing isn't Right for This Business Social Media Marketing is New Social Media Marketing is Too Time-Consuming Social Media is Free

SM based on a stable premise that people are social creatures Founded in community, socialization, & WOM marketing Related to technological evolution enabling people to interact Rooted in core trends and behaviors of digital natives All of these facts suggest SM will remain stable over time SM is consistantly outpacing traditional media tactics!

Wrong! Instead, the reality is: Older users are among the fastest growing demographics YouTube: 18 to 55, evenly divided between males & females Facebook users: 61% ages 35 to 54 48% ages 55 and older Users span all age and income brackets

Wrong! Instead, social media marketing returns are: Difficult to measure and/or not measured by many businesses A frequent topic for conferences of online marketing experts Measured in a variety of different ways such as: savings in customer service improved brand awareness and reputation increased brand loyalty sales lead generation improved search engine rankings # of Likes, RTs, shares, comments, followers, etc.

Wrong! Instead, social media marketing: Is a necessity for a brand's reputation management Has ability to drive WOM or recommendations from friends Influences search as a resource because search results frequently include social media sites Is just as relevant to B2B companies as to B2C firms

Gone are the days when millions in advertising and PR could control the message. Now when customer service is lacking, an individual can use the social web to communicate with the world. Every interaction with the customer is a marketing event. If a firm values its reputation, then it needs to address SMM

Wrong! WOM is not new. Long considered marketing's "Holy Grail" Technology and media are changing the role of social, behavioral, and economic concepts in modern marketing Conversations were always happening; but now they are public, online, and viewable for the indefinite future Consumers are already on social sites, talking about businesses on their Facebook pages, blogs, and Twitter accounts, whether a business acknowledges this or not.

Wrong! It can be time consuming, but too time consuming? Ways to limit the time investment in SMM: Leverage efficiency tools to streamline social media efforts Use mobile devices to boost efficiency Look for underutilized employees who can spend some of their time on social media marketing - IF they are qualified.

Wrong! Most sites do not have a usage fee, yet costs include: Time and resources Fees for producing and creating content Fees for consultants or agencies involved in building and executing the social media strategy

Traditional Approach Control content seen by audience One-way communication Domineering approach Social Media Approach Emphasizes audience contribution Two-way communication Discussion approach

Ask yourself! Spending on SMM will have massive growth 2009 - 2014 Demand for SM marketers is increasing dramatically Majority of jobs in SMM are freelance rather than full-time First step toward landing a SM job: getting involved

A social media marketing plan details: 1. A company's social media goals; and 2. The actions necessary to achieve them.

Full Circle: -Listening to what consumers & competitors are saying -Setting goals by identifying the behavior, tastes, needs, and location of the target audience -Defining strategies must be done on a case-by-case basis -Identifying the target audience (market) -Selecting tools where the target audience resides -Implementing through well-defined tactics -Monitoring social media marketing initiatives -Tuning and improving the elements of the plan

Listen to conversations about a brand or company Listen to what people say about the competitors Listen to what people say about the industry or category Listen for the tone of the community Listen to different social media channels Don't jump into online conversations / groups to make a sales pitch Example: an insurance salesperson at a house party Don't plug your company: consumers would rather speak with each other than listen to a company's intrusive sales pitch Instead, listen first to what is being said. Efficiency tools can help: Social Mention Google Alerts

Define the desired outcome. Some common goals relate to: brand building increasing customer satisfaction (ie customer service) driving word-of-mouth (WOM) recommendations producing new product ideas / consumer feedback generating leads for new relationships / new sales handling crisis-reputation management integrating social media marketing with PR SEO / SERP position

Key considerations when setting SMM strategies: What are the overall goals? What was learned from listening? How do people feel about a company, product, service, person, or issue? How are competitors using social media platforms? Which media platforms appear to be the most viable in order to achieve social media marketing goals? Where does a company's target audience hang out, and what do they do there? How can this information be used to identify strategic opportunities? What best practices can be applied? Goals may change . . . be flexible

1. Categorize social media platforms by target market relevancy 2. Comprehend the rules of the road on the platform by listening and learning how to behave and engage participants 3. Converse by responding to other users of the platform, always remembering to be a contributor, not a promoter 4. Collaborate with platform members as a means of establishing a mutually beneficial relationship with the platform participants 5. Contribute content to build reputation and become a valued member, helping to improve the community 6. Connect with the influencers so that you can enlist them to help shape opinions about your product or service 7. Community participation (& creation) elicits valuable consumer suggestions for improving (or new) products 8. Convert strategy execution into desired outcomes such as brand building, generating leads, SEO, or other goals

-The primary objective of HubSpot's social media marketing campaign is to generate leads. HubSpot makes an effort to know its customers as people, essential for creating appealing content. -HubSpot uses a large number of social media tools because "different people like different kinds of content". The campaign is complete with calls to action in each channel. -The result: a conversion rate of 5%. HubSpot's success shows how taking a strategic approach to social media can produce solid business results.

In order to measure success, you need to clearly define what someone's desired action would be There are different calls to action for each aspect of a social media strategy There may be a series of calls to action that increase the engagement level with the consumer Your call to action should flow naturally from marketing goals Getting to the sale is the final step in a chain of actions

Benefits of "brand advocates" over self-promotion: -Brand advocates will talk to their friends -They produce natural positive recommendations from people who never need to be compensated -These relationships pay dividends of goodwill and increased sales well into the future -Having honest, regular people who are not employed by the company defend the brand can improve bad situations