Digital Marketing and Social Networking: ©steve Allen/ Getty Images

Digital Marketing
and Social
Networking
Chapter 13
©Steve Allen/ Getty Images
© 2020 McGraw-Hill Education Limited

Learning Objectives
13-1 Define digital media and digital marketing and recognize their
increasing value in strategic planning.
13-2 Understand the characteristics of digital media and how these
methods are different from traditional marketing activities.
13-3 Demonstrate the role of digital marketing and social networking
in today’s business environment.
13-4 Show how digital media affect the marketing mix.
13-5 Define social networking and illustrate how businesses can use
different types of social networking media.
13-6 Identify legal and ethical considerations in digital media.
2
What is Digital Marketing?
E-Business
• Carrying out the goals of business through utilization
of the Internet
Digital Media
• Electronic media that function using digital codes via
computers, smartphones, and other digital devices
Digital Marketing
• Uses all digital media, including the Internet and
mobile and interactive channels, to develop
communication and exchanges with customers
3
Characteristics of Digital Marketing
Characteristic Definition Example
Addressability The ability of the marketer to A website like Amazon and Chapters/Indigo can
identify customers before they provide information about customer needs and
make a purchase wants before they buy.
Interactivity The ability of customers to express Porter Airlines uses social media sites to
their needs and wants directly to communicate with customers in real time.
the firm in response to its Customers can ask questions and Porter will
marketing communications respond.
Accessibility Allows consumers and to find Benjamin Moore & Co. has an iPhone app that
information about competing allows customers to match anything with
products, prices, and reviews. shades of Benjamin Moore paint.
Connectivity Keeps customers, employees, and A firms can target precise markets through
businesses connected with each local social networking sites such as Orkut, a
other. Google-owned service operating in India and
Brazil.
Control The customer’s ability to regulate Consumers choose the websites they view, the
the information they view as well blogs they follow, and the social networking
as the rate and exposure to that sites to which they belong.
information
4
Using Digital Media in Business
• Fast and inexpensive communication
• More interactive
• Easier to conduct marketing research and
advertise
• Internet markets are more similar to traditional
markets than they are different
• Lowers cost of communication
• Improved communication within/between
businesses
5
Digital Media and the Marketing Mix 1
Digital media differs from conventional marketing
techniques in that:
• Communications are faster, and more interactive
• Companies can reach target markets more easily,
affordably, and quickly
• provide marketers with access to new resources in
seeking out and communicating with customers
One aspect that has not changed with digital
media is the importance of achieving the right
marketing mix
6
Digital Media and the Marketing Mix
Amazingly, 74 percent of Canadians spend three to four hours a day online with
67 percent of users visiting social media/networking sites.
7
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Product Considerations
• Digital marketers must anticipate consumer needs and
preferences, tailor their products and services to meet
these needs
• Digital media connectivity creates opportunities to add
services and benefits to products
8
Distribution Considerations
• The Internet is a new distribution channel for making
products available at the right time, at the right place,
and in the right quantities
• Processing orders electronically can reduce inefficiencies, cost,
and redundancies
• Can increase speed throughout the marketing channel
9
Promotion Considerations
• One of the best ways businesses can utilize digital
media is for promotion purposes
• Increasing brand awareness
• Connecting with consumers
• Taking advantage of social networks or virtual worlds to form
relationships and generate positive publicity about products
• Online promotion allows consumers to make informed
purchase decisions
• Consumer consumption patterns are changing and marketers
must adapt promotional efforts to meet them
10
Pricing Considerations
• Price is the most flexible element of the marketing mix
• Digital marketing 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
• Buying incentives can help generate demand
11
Social Media Marketing 1
Social Media Marketing
• Involves obtaining communications with consumers
through social media sites
• Enables firms to promote a message and create
online conversations through multiple platforms
• Paid media
• Owned media
• Earned media
12
Social Media Marketing 2
Social Media Marketing continued
• User-generated content relates to consumers who
create, converse, rate, collect, join, or simply read
online materials
• User-generated sites are a motivating factor to influence others
or to promote an interest or a cause
• Consumers read posted ratings and reviews to help in
shopping decisions
• Ratings can be used to monitor a firm’s reputation
• Marketers must choose a social media approach that

fits their target market and supports its marketing
objectives
13
Consumer-Generated Marketing and
Digital Media 1
Two factors sparked the rise of consumer-
generated information
1. Increased tendency of consumers to post their own
thoughts, opinions, reviews, and product discussions
through blogs or digital media
2. Consumers’ tendencies to trust other consumers
over corporations. Consumers often rely on the
recommendations of friends, family, and fellow
consumers when making purchasing decisions.
14
Digital Media 2
Social Networks
• Facebook
• Third most visited site in Canada
• Marketers use Facebook to market products, interact with
consumers and gain free publicity
• F-commerce
• LinkedIn
• Top networking site for businesses and business professionals
15
Starbucks and Twitter
Starbucks made heavy use of Twitter to promote its Blonde Roast

coffee in Canada.
16
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Digital Media 3
Social Networks continued
• Twitter
• Hybrid of a social networking site and a micro-blogging site that
asks: “What’s happening?”
• Companies use site to build customer relationships
• Snapchat
• Allows businesses to share photos, storyboards, and content,
and communicate with consumers
17
Digital Media 4
Media Sharing
• Sites allow marketers to share photos, videos, and
podcasts
• Tend to be more promotional than reactive
• Firms do not interact with consumers through personal
messages or responses
18
Digital Media 5
Video-sharing sites
• YouTube is the second most visited site in Canada
• Companies are able to upload ads and informational videos
about their products
• Viral marketing
Photo-sharing sites
• Allow users to upload their photos and short videos
• Most popular site is Instagram
19
Digital Media 6
Blogs
• A web-based journal in which writers can editorialize and interact with
other Internet users
• Give consumers power over companies
• Companies use blogs to answer consumer concerns or defend their
reputations
Wikis
• Websites where users can add to or edit the content of posted articles
• Monitoring relevant wikis gives companies a better idea of how
consumers feel about their company or brand
Podcasting
• Audio or video file that can be downloaded from the Internet via a
subscription
• Can affect consumer buying habits
20
Social Media Dashboards
Social media dashboards such as Hootsuite allow companies to

message dozens of social media sites using a single point of entry.
21
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Digital Media 7
Mobile Marketing
• Becoming increasingly sophisticated
• Consumers are beginning to use mobile devices such
as smartphones as highly functional communication
methods
• The iPhone and Android phones have changed the
way consumers communicate
• Consumers can receive timely messages related to
discounts
22
Digital Media 8
Applications
• Apps allow users to perform a variety of functions
• Convenience and cost savings to the consumer
• Companies are beginning to use mobile marketing to
offer additional incentives to customers
• QR scanning app
• Mobile payments
23
Mobile Applications
The use of mobile marketing is growing as people perform more and

more daily tasks using a mobile device.
24
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Digital Media 9
Widgets
• Small bits of software on a website, desktop, or mobile
device that enables users “to interface with the
application and operating system.”
• Marketers might use widgets to display news
headlines, clocks, or games on their Web pages.
• Have been used as a form of viral marketing- send it
to friends with a click of a button
• Widgets downloaded to a user’s desktop can update
the user on the latest company or product information,
enhancing relationship marketing between companies
and their fans. 25
Digital Media 10
Mobile Marketing Tools
• SMS messages
• Multimedia messages
• Mobile advertisements
• Mobile websites
• Mobile applications
26
Online Monitoring and Analytics
Social media monitoring involves activities to track,
measure, and evaluate a firm’s digital marketing
initiatives
• Metrics develop from listening and tracking
• Key performance indicators should be embedded at
the outset of a social media strategy
• Comprehensive performance evaluation can be done
by analytics platform monitoring
• Google Analytics
• Analyzing traffic data allows marketers to identify their

website’s strengths and weaknesses
27
Google Analytics
Section Function
Real time Data updates are live so you can see pageviews, top social traffic, top
referrals, top keywords, top active pages, and top locations in real
time.
Audience Audience reports provide insight into demographics, interests,
geography, behaviour, mobile use, and more.
Acquisition In-bound traffic is monitored through acquisition reports, allowing you
to compare traffic from search, referrals, e-mail, and social media.
Behaviour Use RSS feeds. Add tags to web pages or photos. “Vote” for websites
online.
Joiners Evaluate your site’s content by seeing how visitors interact with your
content. Monitor landing pages, exit pages, site speed, bounce rate,
and more.
Conversions Google Analytics allows users to set goals and objectives to monitor
web conversions, like signing up for an e-mail newsletter or
completing a purchase.
28
Using Digital Media to Reach Consumers 1
• Customer-generated communications and digital media
connect consumers
• Marketers can use these communications to get better
and more targeted information about the consumer
• Digital media marketers must constantly adapt to new
technologies and changing consumer patterns
29
Using Digital Media to Reach Consumers 2
Social Technographics
• Creators
• Critics
• Collectors
• Joiners
• Spectators
• Inactives
30
Using Digital Media to Learn about Consumers
Digital media and social networking sites
• Help gather useful information about consumers and
their preferences
Crowdsourcing
• Describes how marketers use digital media to find out
the opinions or needs of the crowd (or potential
markets)
Consumer feedback is an important part
• Digital media forums allow businesses to closely
monitor what customers are saying
31
Legal and Social Issues in Internet Marketing 1
Extraordinary growth of information technology, the

Internet, and social networks has generated many
legal and social issues for consumers and businesses
• Privacy concerns
• Risk of identity theft
• Risk of online fraud
• Need to protect intellectual property
32
Privacy
• Current technology has made it possible for marketers
to amass vast quantities of personal information, often
without consumers’ knowledge, and to share and sell
this information to interested third parties
• Cookies — an identifying bit of data on users’ computers
• Influencer marketing
• In Canada, influencer advertising is administered by the
Competition Bureau
• FTC requires influencers to disclose any connection with the
brands they promote
33
Identity Theft
• When criminals obtain personal information that allows
them to impersonate someone else in order to use
their credit to access financial accounts and make
purchases
• Phishing is using a counterfeit of a familiar website to deceive
people into divulging private information
• Some identity theft problems are resolved quickly, while other
cases can take a significantly long time
34
Online Fraud
• Includes any attempt to purposely deceive online
• Cybercriminals use social media sites to create fake
profiles
• Criminals may also use social networking sites to pose
as charitable institutions.
• Avoid fraud by not giving out personal information
unless the site is legitimate
35
Intellectual Property Theft and Other Illegal Activities

• Intellectual property can include songs, movies, books,
and software
• Generally protected by patents and copyrights, but
piracy and illegal sharing costs global industries billions
annually
• Some consumers rationalize the pirating of software,
video games, movies, and music
• 90 percent of illegal software copying is actually done by
businesses.
36
Digital Media’s Impact on Marketing
Digital media can make your company more
efficient and productive
• Transition to digital media can be challenging
• New media may require employees with new skills or
additional training for current employees
• 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
37

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Digital Marketing

©Steve Allen/ Getty Images

© 2020 McGraw-Hill Education Limited

• Marketers must choose a social media approach that

Starbucks made heavy use of Twitter to promote its Blonde Roast

Social media dashboards such as Hootsuite allow companies to

The use of mobile marketing is growing as people perform more and

• Analyzing traffic data allows marketers to identify their

Extraordinary growth of information technology, the

Intellectual Property Theft and Other Illegal Activities

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