Ferrell Hirt Ferrell
A CHANGING WORLD
EIGHTH EDITION
FHF
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
part
Digital Marketing and
Social Networking
5
Chapter 11 Customer-Driven Marketing
Chapter 12 Dimensions of Marketing Strategy
Chapter 13 Digital Marketing and Social Networking
FHF
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What is Digital Marketing?
E-Business
Carrying out the goals of business through use
of the Internet
Digital Media
Electronic media that function using digital codes
Digital Marketing
Using digital media to develop communications and
exchanges with customers
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Growth and Benefits of
Digital Communication
Digital media has created opportunities for businesses to:
Create relationships with consumers
Target markets more precisely
Reach new markets worldwide
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Digital Marketing
Has five key characteristics
1.Addressability: The ability for a business to identify
consumers before they make a purchase
2.Interactivity: Allows customers to express their needs and wants
directly to the firm in response to its communications
3.Accessibility: Allows consumers to find information about competing
products, prices, and reviews and to become more informed about a firm and
the relative value of its products
4.Connectivity: Keeps customers and businesses connected with each other
5.Control: Consumers’ ability to regulate the information they receive via the
Internet
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Using Digital Media in Business
 Digital media have created new ways of doing
business and shopping
• Fast communication
• More interactive
• Comparison shopping easier
• Easier to conduct marketing research and advertise
…continued on next page
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Using Digital Media in Business
 Digital media have lowered the cost of
communication and transactions
 Digital media are more similar to traditional media
than they are different
 Growing problem with controlling employee access to digital
media
• Wasting time at work on personal communications
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Digital Media and the
Marketing Mix
Some key differences between digital and traditional
media in the marketing mix:
Communications are richer, faster and more interactive
Companies can reach target markets more easily, affordably and quickly
They help marketers utilize new resources in seeking out and communicating
with customers
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Digital Media and the
Marketing Mix
Digital media let marketers and consumers
share information
Websites
Online social media sites
Email
Listservs
…continued on next page
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Product Considerations
Digital media connectivity creates opportunities
to add services and benefits to products
Some products only available digitally
Internet can make it easier to learn about and anticipate consumer needs
Competition makes quality and service offerings more important than ever
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Distribution Considerations
The Internet is a new distribution channel
Processing orders electronically can reduce inefficiencies, cost and
redundancies
Can also increase speed
Shipping times and costs are important to customers
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Promotion Considerations
Promotion is one of the best applications
for digital media
Consumer consumption patterns are changing
• The products they want to buy
• The way they get information
Marketers must react and give consumers what they want
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Price Considerations
 The most flexible element of the marketing mix
 Digital media can enhance a product’s value by providing
service, information, and convenience
• Discounts and sales can be quickly communicated
• Deals websites allow consumers to compare prices of
products
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Online Social Networks
 A web-based meeting place for friends,
family, co-workers and peers that lets users
create a profile and connect with others for
a variety of purposes
 Build relationships with customers
 Provide product information
 Learn about customer needs
 Contact new target markets
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Types of Consumer-Generated
Marketing and Digital Media
Two factors sparked the increase in consumer-generated
information:
1.Increased tendency for consumers to publish their thoughts, opinions and
reviews of products via blogs and other digital media
2.Consumers tend to trust other consumers over corporations
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Social Networks
 2/3 of consumers have visited online social
networking sites
 There are many different sites and the number is growing
• MySpace
• Facebook
• LinkedIn
• Twitter
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
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The largest social networking site in the world

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Good resource for marketers
Appeals to a broad demographic
Fastest-growing demographic is women over 55
Encourages consumer interaction with companies and
products
Market research
Low-cost means of advertising
Reach new markets
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
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A social network for professionals
A profile resembles a résumé
Facilitates professional networking, job searches and recruiting
Companies use the site to familiarize people with their
business
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 Twitter is a hybrid social networking and microblogging site
 140 characters or less
 Companies announce sales, promotions and product updates
via tweets
 Can help (re)build customer relationships
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Mobile Marketing
 Consumers increasingly do their business and
shopping from mobile devices and smartphones
• Marketers can use digital media to their
advantage
• Requires adapting to new technologies
and consumption patterns
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What kind of digital technology
user are you?
 Creators: Create their own media outlets (e.g. blogs,
podcasts, videos)
 Critics: People who comment on blogs or post ratings
and reviews
 Collectors: Collect and organize content generated by creators and critics
 Joiners: Includes anyone who becomes a user of social networking sites or
other online communities to connect and network
 Spectators: Read online information but to not join communities or post
anywhere
 Inactives: Do not participate in online digital media; numbers are
dwindling
Developed by Charlene Li and Josh Bernoff of Forrester Research
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Using Digital Media to
Learn About Consumers
 Digital media is a great learning tool
 Market research
• Gathering data on consumers
• Asking consumers about preferences
 Crowdsourcing involves using communities if interested
consumers to gather input and feedback for marketing
purposes
 Can help small businesses on limited budgets compete with
large businesses
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Digital Media and how They are
Changing Marketing
 Digital media can make your company more
efficient and productive
• Transition to digital media can be challenging
• Correct blend of traditional and digital media in marketing mix takes
time and consideration
• Future marketing opportunities will require a
knowledge of digital media and how to use them
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