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Chapter 1: Internet Marketing as Part of the Marketing Communications Mix
- ________ is the communications protocol that provides the common “language” of Internet computing.
|c.||The graphic browser|
ANS: A REF: p. 4
- ________ is the feature of the Internet that allows users to move easily from one document to another.
ANS: C REF: p. 5
- Which is not among the four distinct generic goals of Internet marketing?
ANS: C REF: p. 10
- The Sabre System is an example of:
|a.||a new service made possible by the Internet.|
|b.||an information product.|
|c.||a product targeted solely at the consumer market.|
ANS: B REF: p. 7
- Objectives that can be appropriate for Internet marketing include:
|a.||building loyal customer relationships.|
|b.||doubling the customer base.|
|c.||decreasing the need for customer service.|
ANS: A REF: p. 10
- Which of the following is not an element of the Internet infrastructure stack?
|b.||Operations like load balancing and security|
|c.||Connections to the telecommunications backbone of the Internet|
ANS: A REF: p. 13
- A website must be hosted on a ________.
ANS: C REF: p. 14
- Which of the following is not a strategic driver of the Internet economy?
|a.||Speed is essential to successful Internet operations.|
|b.||Employees can easily be substituted for one another.|
|c.||Making it possible to deal with customers on a 1-to-1 basis.|
ANS: B REF: p. 27
- Term often used when software is made available on a fee for usage basis:
|a.||Applications Software Providers.|
|c.||Software as a Service.|
ANS: C REF: p. 14
- Web 2.0 is characterized by:
|a.||services and co-creation.|
|b.||economic and technical evolution.|
|c.||a “dot com” business enterprise.|
ANS: A REF: p. 8
- Which of the following is a true statement about the origins of the Internet?
|a.||The Internet was initially conceptualized in a term paper by a computer science student at Stanford.|
|b.||The Internet was initially developed by a number of technology companies that wanted to expand the market for their products.|
|c.||The Internet was initially developed by DARPA to fund research in communications technology for defense purposes.|
ANS: C REF: p. 3
- The Internet experienced slow but steady growth until ________ allowed users to move around in easy graphical fashion.
ANS: B REF: p. 5
- The phenomenon we call “the Internet bubble” was characterized by:
|a.||many Internet businesses that had not attained profitability.|
|b.||venture capital available to even questionable business models.|
|c.||both of the above.|
ANS: C REF: p. 5
- The Sabre System is an example of:
|a.||an information product that existed prior to the Internet.|
|b.||the evolution of an internal system into a commercial product.|
|c.||both of the above.|
ANS: C REF: pp. 6-7
- The basic business models used on the Internet include:
|b.||target return on investment.|
ANS: A REF: p. 12
- Which of the following is a true statement about the Internet infrastructure stack?
|a.||It describes activities that can be performed inside the business or outsourced to independent suppliers.|
|b.||It describes the manner in which different elements come together to create the Internet environment.|
|c.||Both of the above.|
ANS: C REF: p. 13, 14
- Sales force.com exemplifies:
|a.||a “cloud computing” product that shows the power of connectivity in a network.|
|b.||a proprietary product used by a single user.|
|c.||technology that is used primarily to develop proprietary software.|
ANS: A REF: p. 15
- Technology that can integrate location into marketing applications is called:
ANS: C REF: p. 9
- The most common way consumers discover new online products is through:
|c.||social networking sites.|
ANS: A REF: p. 22
- Businesses have enthusiastically adopted the internet for marketing for the following:
|a.||attract new customers.|
|c.||both of the above.|
ANS: C REF: p. 23
- The ARPANet was designed as a user-friendly network that would connect businesses around the globe.
ANS: F REF: p. 4
- Websites are typically hosted on a server.
ANS: T REF: p. 14
- Mosiac, the first graphical browser, made it easier to move around the Internet and thus accelerated its growth.
ANS: T REF: p. 5
- Enterprises like Sabre gained experience with electronic systems prior to the Internet and were well prepared to take advantage of the Net when it became commercially viable.
ANS: T REF: pp. 6-7
- There is little room for growth in mobile or broadband in developing countries.
ANS: F REF: p. 18
- Successful global brands rely solely on the Internet for their achievements.
ANS: F REF: p. 9
- In the Internet economy it is considered essential to acquire as many customers as possible.
ANS: F REF: p. 6
- Telecommunications technology forms the “backbone” of the Internet Infrastructure.
ANS: T REF: p. 13
- “Scalability” refers to information systems that can only grow with substantial future investment.
ANS: F REF: p. 7
- Less than half of online consumers use email on a daily basis.
ANS: F REF: p. 22
- Web 3.0 refers to websites and applications that will understand and respond to the user’s intent.
ANS: T REF: p. 8
- The Internet has fostered a number of Interactive Marketing Channels.
ANS: T REF: p. 12
- Lowering costs and increasing quality are not benefits to firms of Internet operations.
ANS: F REF: p. 13, 27
- Pets.com demonstrates an example of one of the most successful of the early Internet-only firms.
ANS: F REF: p. 5
- The text on page 10 discusses a number of generic marketing objectives that can be accomplished on the Internet. Explain the nature of each, and give a brief example of how an Internet marketer (real or hypothetical) might achieve each objective.
The generic objectives of marketing can be summarized as
- Customer acquisition. Marketers engage in online advertising to attract more customers, usually to their websites.
- Conversion from prospects to customers. When a first-time visitor comes to a website, they may or may not take the desired action. The desired action can be either a sale or some kind of request for additional information or services that allows the marketer to identify the visitor and begin a dialog. If the desired action is an inquiry or a registration, that may not meet the standard of becoming a customer. If a sale is the end goal, the conversion process may require several steps that take place over a period of time.
- When the visitor becomes a customer, the marketer may choose to engage in a proactive retention (CRM) strategy. “May choose” because the desirability of retaining the customer depends on their potential value to the business (Customer Lifetime Value).
- Growth in Customer Value: Marketers can use the data obtained on the Internet about their customers to identify the potentially most valuable customers and market to these customers differently.
Students should be able to identify the three generic strategies at this point, but they may lack insight into the nature and importance of each.
REF: p. 10
- The text discusses a number of strategic drivers of the Internet economy, which are summarized in Table 1.4. Identify three of these strategic drivers and briefly explain each, being specific about the way in which this driver differs from what existed in the pre-Internet economy.
The drivers are:
- Information produces the greatest value; customers are looking for benefits and it is often the information that the product incorporates or that is included with it that unlocks the potential of the product in use by the customer.
- Distance does not matter; marketers and customers can interact almost irrespective of distance over the Net. However, physical products sold on the Internet still have to be delivered to the customer.
- Speed is of the essence. Whether it is products, services or information when they want it, customers have high expectations of obtaining things in real time 24/7. Marketers must adjust their offerings—quickly—to meet those expectations.
- People are the key assets. The interests and skills required of people who work in Internet-based businesses are, to some extent, different from those required in traditional businesses. The requisite skills plus meaningful experience in Internet-related jobs, especially in marketing and media, are in short supply today.
- Growth in the network causes exponential increase in value; the more people who are connected to the network, the easier it is to communicate with them.
- Marketers can deal with customer one-to-one; the ability to target and personalize is key to Internet marketing success.
- Demand can be predicted with greater accuracy; the marketer is closer to the customer.
- Cost patterns change; the marketer is likely to spend more on technology and less on operations.
- Consumers have power in information-rich channels; they have choice, and choice is power.
- An information economy is characterized by choice and abundance; information becomes more valuable as more people use it.
REF: p. 25
- Chapter 1 highlights Sabre, Salesforce, and Google as information products that have achieved success in the Internet economy. Identify another product that is composed of information and that can be accessed over the Internet. Explain the nature of the product and the appeal it has to users.
Students might relate to the example of credit reports. Another might be a service that can be used over the Internet like income tax preparation software. Both these are examples of something that you can obtain without the Internet, but the Internet has made them more accessible.
REF: pp. 10, 15
Chapter 5: Online Branding and Video Marketing
- Among the factors that have created consumer expectations for on-demand media include:
- smartphones and tablets.
- the Internet itself.
- both of the above.
ANS: C REF: p. 117
- ________ is one tool that enables consumers to enjoy media on their own schedule.
- Electronic TV schedule or guide
- Video streaming
- Image search
ANS: B REF: p. 117
- Which of the following is a true statement about online display advertising?
- It is more expensive than offline display advertising.
- It is effective in acquiring customers and making sales.
- Neither of the above
ANS: B REF: pp. 119-120
- Online advertising is ________ effective than television advertising in creating customer awareness.
ANS: B REF: p. 121
- ________ is the concept that describes the degree of positive or negative feelings about a brand.
- Brand equity
- Brand prestige
- Brand image
ANS: C REF: p. 123
- Among the metrics used to measure the effectiveness of branding efforts are:
|a.||brand equity and brand recognition.|
|b.||brand image and brand authority.|
|c.||brand expenditures and brand equity.|
ANS: A REF: p. 123
- Effective brand building on the Internet requires:
- intensive use of online advertising.
- combining interactivity and information-driven direct-response marketing.
- higher expenditures than offline brand building.
ANS: B REF: p. 124
- Effective brand building requires:
- balancing the online and offline media mix.
- ensuring the best possible customer experience.
- both of the above.
ANS: C REF: p. 125, 126
- Advantages of a brand community include:
- members are likely to feel more brand loyalty.
- members feel they are part of an exclusive club.
- both of the above.
ANS: A REF: p. 127
- The concept of a vook is:
- make interactive videos relevant to the brand.
- embed high-quality video in textual content.
- encourage users to create their own video.
ANS: B REF: p. 128
- A true statement about marketer use of video is:
- marketers need to distinguish between video viewed on TV and video viewed on the Internet.
- marketers need to make video available on whatever device users desire.
- marketers should not expect video to have direct impact on sales.
ANS: B REF: p. 129
- Types of marketing videos include:
- case studies and testimonials.
- user-created videos.
- animated cartoons.
ANS: A REF: p. 131
- Elements of video marketing strategy include:
- content creation.
- video production.
ANS: C REF: p. 132
- ________ are one platform that is effective in delivering videos to customers.
- Paid video platforms
ANS: C REF: p. 133, 134
- One way to develop consumer-relevant content is to:
- do marketing research to determine interests.
- tell engaging stories about product use and benefits.
- film videos on location.
ANS: B REF: p. 136
- Optimizing videos for visibility requires:
- use of relevant keywords wherever possible.
- uploading to paid video sites.
- a paid channel on YouTube.
ANS: A REF: p. 137
- Consumers are most likely to share videos that are posted on:
- corporate websites.
ANS: B REF: p. 138
- Promotion of videos can take a number of forms including:
- posting the video on all corporate channels and platforms.
- posting on the channels of others like business partners.
- both of the above.
ANS: C REF: p. 138
- Common video metrics include:
- page views.
- paid placements.
ANS: A REF: p. 140
- Small businesses can utilize video advertising by:
- using a video production house.
- creating their own video channel.
- neither of the above.
ANS: B REF: p. 142
- Video and online advertising can both be part of effective integrated marketing campaigns.
ANS: T REF: p. 117
- Media developments that have changed the nature of video viewing include TV Pay per View and Video on Demand.
ANS: T REF: p. 118
- Increasing use of mobile phones does not change the way consumers access video.
ANS: F REF: p. 118
- Online advertising is most effective when used alone.
ANS: F REF: p. 120
- There is little opportunity to develop new and engaging online advertising formats.
ANS: F REF: p. 122
- Marketer-driven marketing activities are most effective in closing the consumer decision to purchase a product.
ANS: F REF: p. 123
- Brand awareness may be sufficient to drive purchasing action for a low-involvement product.
ANS: T REF: p. 124
- Marketers should set specific objectives for brand development activities.
ANS: T REF: p. 125
- The Harley Owners Group is an example of a marketer-initiated brand community.
ANS: F REF: p. 127
- It is not possible to find videos about many specialized B2B products.
ANS: F REF: p. 128
- Effective videos can increase the volume of sales on retail sites.
ANS: T REF: p. 129
- Younger Internet users are more active consumers of content than their older counterparts.
ANS: T REF: p. 130
- Unlike video content, video advertising is not experiencing substantial growth.
ANS: F. REF: p. 130
- It is important that all marketing videos be of the highest production quality.
ANS: F REF: p. 131
- Video marketing strategy has a clear set of elements that are necessary for success.
ANS: T REF: p. 132
- Social media does not play an important role in the dissemination of video content.
ANS: F REF: p. 134
- Video can be considered both a channel of communications and a marketing tool.
ANS: T REF: p. 135
- Small retailers cannot make effective use of expensive tools like video.
ANS: F REF: p. 141
- Consumer media use practices have changed significantly in recent years, driven by but not limited to video use. Identify two or three specific changes and discuss them.
Changes highlighted in this chapter (in the introductory section and in the video section) include:
- Increasing use of cell phones
- Increasing use of smart devices like smartphones and tablets
- Apps/mobile apps for accessing content
- Timeshifting (on demand content)
- Decline of traditional print media
- Video contributing to continued strong TV viewing
- Heavy use of social media platforms by young consumers
- Use of social media platforms by older and more affluent consumers
- Videos viewed by majority of Internet users
- Adults 25 to 34 are heavy viewers of video
- Demonstrable impact of videos on purchasing behavior
- Increased viewing of professionally produced video (primarily TV shows) on the Internet
- Apparent willingness of young consumers to pay for content if necessary
and they may think of more.
Students should make clear the marketing relevance of the changes they have chosen. Many of them reflect the ability to access content at any time on any device—the mobile revolution. Others suggest the blurring of lines between traditional and new media; the decline of newspapers and the importance of newspaper websites, for example. Social media has impact, not only for consumer communications, but for communications with brand marketers and the sharing of marketer-initiated content.
- There are several stages that are part of the brand development process. Identify the stages and describe the nature and importance of each. [Illustrate each stage with an example of the behavior a consumer might exhibit when going through that stage.]
The stages of banding are shown in Figure 5.5.
- Brand Awareness is essentially the ability to recognize (unaided) or to recall (aided) the brand. [The consumer recognizes a known brand, say a new video game) when it is seen on the store shelf.]
- Brand Familiarity is the possession of some, perhaps limited, knowledge about the brand. The knowledge might include knowing something about its features, or better, its benefits when used by the target customer. [The consumer remembers hearing that there is a new game from one of his favorite developers that has been reviewed favorably on several gaming sites from which he receives newsletters.]
- Positive (or it could be negative) Brand Imagery is the perceptions and attitudes target customers hold about the brand. [The consumer remember both the positive reviews and having heard on a discussion forum that the game is fun and challenging. He has also noticed that a lot of people are playing it online, which is something he likes to do.]
- Completed transaction is the final activity of purchasing the product. Students should recognize that a purchase is also a stage in a process; consumer use, experience and evaluation will follow. The post purchase steps are likely to have a large impact on future purchases, or lack thereof. [The consumer purchases the game and downloads it to his mobile phone using the store’s WiFi. He tries it out on the bus on the way home and finds it as good as he hoped it would be.]
- Making a marketing video is more than just shooting some cool footage. The text discusses some of the best practices for making use of the power of marketing videos. Discuss three things that should be done in order to have the best chance of making a video that will have marketing impact.
The text lists the following as best practices:
- Set social goals, not financial ones. Videos are one part of a content marketing strategy and, as such, are impossible to link to specific financial goals like sales.
- Have a marketing plan.
- Have a social media presence, which gives you channels to distribute your video content.
- Include sharing options in your video posts and marketing campaign activities like emails.
- Encourage commentary and respond as needed.
- Measure results.
- Look at video as a relationship building tool more than as a direct sales generation tool.
- Monitor what people say about the campaign in other channels (Facebook, Twitter, trade industry publications, for example).
- Have a formal debriefing at the end of the formal campaign to assess effectiveness and pinpoint things learned that will make future campaigns better.
These best practices add up to having a strategy and a specific plan for each video or each video campaign. It’s not just fun and games, it’s a marketing message that contributes to the overall brand theme or marketing campaign objective, better to both.
Students may also discuss one or more of the four elements of video strategy—publish, optimize, promote and analyze—in this context. That conveys the same message; marketing videos are part of broader marketing activities and must be planned and managed in a goal-oriented manner.