Chapter 6: Marketing and Advertising

Case 1: Are the very rich

Case 2: Going from third to first

Case 3: Programmatic advertising

Theories:

1) Describe the key features of the online audience, the basic concepts of consumer behavior
and purchasing, and how consumers behave online.

• Key features of the online audience include the number of users online, the intensity and
scope of use, demographics and aspects, the type of Internet connection, and community
effects.

• Models of consumer behavior attempt to predict or explain what consumers purchase and
where, when, how much, and why they buy. Factors that impact buying behavior include
cultural, social, and psychological factors.

• There are five stages in the consumer decision process: awareness of need, search for more
information, evaluation of alternatives, the actual purchase decision, and post-purchase
contact with the firm.

• The online consumer decision process is basically the same, with the addition of two new
factors: website and mobile platform capabilities and consumer clickstream behavior.

2) Identify and describe the basic digital commerce marketing and advertising strategies and
tools.
• A website is the major tool for establishing the initial relationship with the customer.
• Search engine marketing and advertising involve the use of search engines to build and
sustain brand as well as to support direct sales of products and services.
• Display ads include banner ads, rich media, video ads, sponsorships, native advertising,
and content marketing. Today, almost all display advertising is served by advertising
networks that use programmatic advertising and real-time bidding.
• E-mail marketing sends e-mail directly to interested users and has proven to be one of the
most effective forms of marketing communications.
• Lead generation marketing uses multiple e-commerce presences to generate leads for
businesses who later can be contacted and converted into customers.
• Affiliate marketing is a form of marketing in which a firm pays a commission when visitors
to a different website, blog, or social media page click the firm’s link on that website or page
and visit the firm’s website and/or make a purchase there.
• Social marketing and advertising involve using the social media to communicate brand
images as well as to directly promote sales of products and services.
 • Mobile and local marketing and advertising involve using display ads, search engine
advertising, video ads, and mobile messaging on mobile devices such as smartphones and
tablet computers, often using the geographic location of the user.
• Multi-channel marketing (combining offline and online marketing efforts) is typically the
most effective type of marketing. Although many e-commerce ventures want to rely heavily
on online communications, marketing communications campaigns that are the most
successful at driving traffic incorporate both online and offline tactics.
• Customer retention techniques for strengthening customer relationships include
personalization, one-to-one marketing, and interest-based advertising, customization and
customer co-production, and customer service (such as FAQs, live chat, intelligent agents,
and automated response systems).
• Online pricing strategies include offering products and services for free, versioning,
bundling, and dynamic pricing.

Chapter 7: Local, social and local marketing.

Case 1: OPTIMIZING SOCIAL MARKETING WITH ACCURACAST

Case 2: Mobile marketing Revs up

Theory:

Describes the social marketing process from fan acquisition to sales and the marketing capabilities
of social marketing platforms such as Facebook, Instagram, TikTok, Twitter, and Pinterest.

• In social marketing, the objectives are to encourage your potential customers to become fans of
your company’s products and services and to engage with your business by entering into a
conversation with it.

• There are five steps in the social marketing process model: fan acquisition, engagement,
amplification, community, and brand strength and sales.

• Facebook is a social network that is designed to encourage people to reveal as much personal
information about themselves as feasible, including their activities, behaviors, photos, music,
movies, and purchases.

• Facebook’s features are built to maximize the connections among people in the form of
notifications, tagging, messaging, posting, and sharing. In many instances, the movement of
personal information is so widespread that it is beyond the understanding of users.

• Social density refers to the number of interactions among members of a group and reflects the
“connectedness” of a group even if these connections are forced on members.
• Facebook has many marketing tools, including Brand Pages, Facebook Groups, Facebook Ads,
and Facebook Live, and Messenger.

• Instagram is a visual social network. Users and advertisers post photos and videos to their
friends, potential customers, and the public at large. Instagram marketing tools include display and
video ads in the Instagram Feed, Stories, and Reels as well as Instagram Direct. Influencer
marketing is a major method of marketing on Instagram.

• TikTok is a short-form video-sharing app. Many TikTok videos feature music, with userslip-syncing,
singing, and dancing, whereas other videos focus on comedy and creativity. Influencer marketing is
a major method of marketing on TikTok, but TikTok now also offers most of thesame ad formats as
other social network platforms.

• Twitter is a social network that allows users to send and receive 280-character messages as well
as videos, photos, and article previews. Twitter marketing tools include Promoted Ads, Follower
Ads, Twitter Takeovers, Branded Notifications, the Twitter Amplify program, Twitter Cards, and
Twitter Live.

• Pinterest is a social network that provides users with an online board to which they can “pin”
interesting pictures. The success of Pinterest is based in part on a shift in consumer behavior that is
enabled by new technologies: People talk about brands using pictures rather than words. Pinterest
marketing tools include brand pages; a variety of ad formats including images, videos, carousel,
and shopping; search advertising, multi-page video Idea Pins; and Rich Pins.

• Other social networks, such as Snapchat, and LinkedIn, provide similar advertising opportunities
to marketers.

• One downside of social marketing is that brands lose a substantial amount of control over where
their ads appear in terms of other content and what people say about their brands on social
networks.

Chapter 8 Ethics

Case 1: Apps that track (page 511)

Case 2: Immersed in the metaverse (547)

Case 3: The right to be forgotten

Questions/ Theories

1) Why e-commerce raises ethical, social, and political issues?

Internet technology and its use in e-commerce disrupts existing social and business relationships
and understandings. Suddenly, individuals, business firms, and political institutions are confronted
by new possibilities of behavior for which understandings, laws, and rules of acceptable behavior
have not yet been developed. Many business firms and individuals are benefiting from the
commercial development of the Internet, but this development also has costs for individuals,
organizations, and societies. These costs and benefits must be carefully considered by those seeking
to make ethical and socially responsible decisions, particularly where there are no clear-cut legal or
cultural guidelines.

- The major issues raised by e-commerce can be loosely categorized into four major dimensions:

• Information rights—What rights do individuals have to control their own personal information
when Internet technologies make information collection so pervasive and efficient?

• Property rights—How can traditional intellectual property rights be enforced when perfect copies
of protected works can be made and easily distributed worldwide via the Internet?

• Governance—Should the Internet and e-commerce be subject to public laws? If so, what law-
making bodies have jurisdiction—state, federal, and/or international?

• Public safety and welfare—What efforts should be undertaken to ensure equitable access to the
Internet and e-commerce channels? Do certain online content and activities pose a threat to public
safety and welfare?

- In Western culture, there are four basic principles that all ethical schools of thought share:
responsibility, accountability, liability, and due process.
- Ethical, social, and political controversies usually present themselves as dilemmas. Ethical
dilemmas can be analyzed via the following process:

• Identify and clearly describe the facts.

• Define the conflict or dilemma and identify the higher-order values involved.

• Identify the stakeholders.

• Identify the options that you can reasonably take.

• Identify the potential consequences of your options.

• Refer to well-established ethical principles, such as the Golden Rule, Universalism, the Slippery
Slope, the Collective Utilitarian Principle, Risk Aversion, the No Free Lunch Rule, the New York
Times Test, and the Social Contract Rule, to help you decide the best actions to take regarding the
matter.

2) Describe the various forms of intellectual property and the challenges involved in protecting
it.

• Copyright law protects original forms of expression such as writings, drawings, and computer
programs from being copied by others for a certain period of time. It does not protect ideas—just
their expression in a tangible medium. Copyrights, like all rights, are not absolute. The doctrine of
fair use permits certain parties under certain circumstances to use copyrighted material without
permission.
• Patent law grants the owner of a patent an exclusive monopoly to the ideas behind an invention
for a certain period of time, in the United States, typically for 20 years. Patents are very different
from copyrights in that patents protect the ideas themselves and not merely the expression of the
ideas. There are four types of inventions for which patents are granted under patent law: machines,
man-made products, compositions of matter, and processing methods. In order to be granted a
patent, the applicant must show that the invention is new, original, novel, nonobvious, and not
evident in prior arts and practices.

• Trademark protections exist at both the federal and the state levels in the United States.
Trademark law protects the public in the marketplace by ensuring that the public gets what it pays
for and wants to receive and also protects the owner, who has spent time, money, and energy
bringing the product to market against piracy and misappropriation.

• Trade secret laws protect intellectual property that involves business procedures, processes,
formulas, and methods of manufacture.