Critical Thinking in (Marketing Management)
Critical Thinking
Weightage: 5 Marks
Learning Outcomes:
Ø Demonstrate a solid understanding of overall marketing concepts, goals and strategies within the context of organizations goals and strategies.(Lo 1.1)
Ø Ability to carry out objective and scientific analysis of consumers’ needs and wants (Lo 2.3 & 2.6).
Ø Explain issues pertaining to marketing environment both internally and externally (Lo 1.2)
Ø Build a strong understanding of the social, economic, ethical and technological challenges facing marketers (Lo 3.1)
Assignment Questions:
1. There are four macro strategies to create and deliver value to customers and that can help a firm to develop a sustainable competitive advantage. Think of companies from the local market who you are very loyal to in many categories like (food, electronics, personal care etc.). Is it the product, location, operational, or customer excellence that you are loyal to that firm? Critically examine. (2.5 Marks)
2. You have read about the 4E Framework for Digital Marketing. You are required to choose a product category from your local market and critically examine how it uses the 4E framework for that product with the help of best social media elements. (2.5 Marks)
Answer:
1.
2.
College of Administrative and Financial Sciences
Assignment 1
Deadline: 17/10/2020@ 23:59
Course Name: Marketing Management
Student’s Name:
Course Code: MGT201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1441/1442 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
ASSIGNMENT-1
Critical Thinking
Weightage: 5 Marks
Learning Outcomes:
· Demonstrate a solid understanding of overall marketing concepts, goals and strategies within the context of organizations goals and strategies.(Lo 1.1)
· Ability to carry out objective and scientific analysis of consumers’ needs and wants (Lo 2.3 & 2.6).
· Explain issues pertaining to marketing environment both internally and externally (Lo 1.2)
· Build a strong understanding of the social, economic, ethical and technological challenges facing marketers (Lo 3.1)
Assignment Questions:
1. There are four macro strategies to create and deliver value to customers and that can help a firm to develop a sustainable competitive advantage. Think of companies from the local market who you are very loyal to in many categories like (food, electronics, personal care etc.). Is it the product, location, operational, or customer excellence that you are loyal to that firm? Critically examine. (2.5 Marks)
2. You have read about the 4E Framework for Digital Marketing. You are required to choose a product category from your local market and critically examine how it uses the 4E framework for that product with the help of best social media elements. (2.5 Marks)
Answer:
Saudi locally production (market)
Chapter 1
Overview of
Marketing
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
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© McGraw-Hill Education
Learning Objectives
Learning Objective 1.1 Define the role of
marketing.
Learning Objective 1.2 Describe the evolution of
marketing over time.
Learning Objective 1.3 Describe how marketers
create value for a product or service.
3
© McGraw-Hill Education
Phyter Bars
© Getty Images
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© McGraw-Hill Education
What Is Marketing?
Marketing is the activity, set of institutions, and
processes for creating, capturing, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and society
at large.
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© McGraw-Hill Education
Exhibit 1.1 Core Aspects of Marketing
Jump to Appendix 1 long
image description
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© McGraw-Hill Education
Marketing Is about Satisfying Customer
Needs and Wants
How does Hershey’s offer value?
©Education Images/UIG via Getty Images
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Exhibit 1.2: Exchange the Underpinning of
Seller-Buyer Relationships
Jump to Appendix 2 long
image description
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© McGraw-Hill Education
Exhibit 1.3:
T
he Marketing Mix
Jump to Appendix 3 long
image description
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Marketing Creates Value through Product,
Price,
Place
, and Promotion Decisions
The Marketing Mix:
The controllable set of
decisions or activities that
the firm uses to respond
to the wants of its target
markets.
Product
Price
Promotion
Place
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© McGraw-Hill Education
Product: Creating Value
The fundamental purpose
of marketing is to create
value by developing a
variety of offerings,
including goods, services,
and ideas, to satisfy
customer needs.
Goods
Services
Ideas
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Price: Capturing Value
Price is everything a
buyer gives up (money,
time, energy) in
exchange for the
product or service.
©Rich Polk/Clear Channel/Getty Images
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Place: Delivering the Value
Proposition
Place represents all the marketing processes
necessary to get the product to the right customer
when that customer wants it.
Place more commonly deals specifically
with
retailing and marketing channel management, also
known as supply chain management.
13
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Promotion: Communicating the
Value
Proposition
Promotion is communication by a marketer that
informs, persuades, and reminds potential buyers
about a product or service to influence their buying
decisions and elicit a response.
1
4
© McGraw-Hill Education
Exhibit 1.4: Marketing Can Be Performed by
Individuals and Organizations
Jump to Appendix 4 long
image description
Etsy
Website
http://www.etsy.com/
15
© McGraw-Hill Education
Marketing Impacts Various Stakeholders
• Customers
• Supply Chain Partners
• Employees
• Industry
• Society
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PROGRESS CHECK (1 of 3)
1. What is the definition of marketing?
2. Marketing is about satisfying ______ and
______.
3. What are the four components of the marketing
mix?
4. Who can perform marketing?
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Exhibit 1.5 Marketing Evolution:
Production, Sales, Marketing and Value
Jump to Appendix 5 long
image description
Photos (left to right): © Ryan McVay/Getty Images RF; © CMCD/Getty Images RF; © Ryan McVay/Getty Images RF; © Ted Dayton Photography/Beateworks/Corbis RF; © McGraw-
Hill Education/Mark Dierker, photographer
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© McGraw-Hill Education
Value-Based Marketing
The Meaning of Best Value: Whole Foods’ Purpose-Based
Marketing
© Justin Sullivan/Getty Images
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© McGraw-Hill Education
Value-Based Marketing Era
What is Value?
Value Cocreation
Relational Orientation
CRM: Customer Relationship Management
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PROGRESS CHECK (2 of 3)
1. What are the various eras of marketing?
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How Does Marketing Create Value and
How Do Firms Become More Value Driven?
Build relationships with customers.
Gather and analyze information.
Balance benefits and costs.
Connect with customers using social and
mobile media.
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Value Stems From Four Main Activities
Adding Value
Using
Marketing Analytics
Embracing Social
and Mobile Marketing
Ethical and Societal Dilemma: Engaging in
Conscious Marketing
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Marketing Analytics
Companies collect massive amounts of data about
how, when, why, where, and what people buy.
© Daniel Acker/Bloomberg/Getty Images
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© McGraw-Hill Education
Connecting With Customers Using Social
and Mobile Marketing
97% of marketers use
social media tools for their
businesses.
4.2 billion people link to
some social media sites
through their mobile
devices.
.
© Tanya Constantine/Getty Images RF
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© McGraw-Hill Education
Resolving Ethical and Societal Dilemmas
Conscious Marketing
Socially Responsible
Firms
Making socially
responsible activities an
integral component of
corporate strategies.
©Hero Images Inc./Alamy Stock Photo
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PROGRESS CHECK (3 of 3)
1. Does providing a good value mean selling at a
low price?
2. How are marketers connecting with
customers
through social and mobile media?
Marketing
Chapter 1
The End
Chapter 2
Developing Marketing Strategies
and a Marketing Plan
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
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© McGraw-Hill Education
Learning Objectives
Learning Objective 2.1 Define a marketing strategy.
Learning Objective 2.2 Describe the elements of a marketing plan.
Learning Objective 2.3 Analyze a marketing situation using SWOT
analyses.
Learning Objective 2.4 Describe how a firm chooses which consumer
group(s) to pursue with its marketing efforts.
Learning Objective 2.5 Outline the implementation of the marketing
mix as a means to increase customer value.
Learning Objective 2.6 Summarize portfolio analysis and its use to
evaluate marketing performance.
Learning Objective 2.7 Describe how firms grow their business.
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PepsiCo
© Craig Barritt/Getty Images
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What is a Marketing Strategy?
A marketing strategy identifies:
• A firm’s target market.
• A related marketing mix.
• The bases on which the firm plans to build a
sustainable competitive
advantage.
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Exhibit 2.1: Macro Strategies for Developing
Customer Value
Jump to Appendix 1 long
image description
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© McGraw-Hill Education
Customer Excellence
• Retaining loyal
customers
• Providing
outstanding
customer service
©TAO Images Limited/Alamy Stock Photo
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Operational Excellence
Efficient
operations
Excellent
supply chain
management
Strong
relationship
with
suppliers
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Product Excellence
Provide products with high
perceived value and
effective branding and
positioning.
Bloomberg Businessweek’s
top global brands:
• Apple, Google,
Microsoft, Coca-Cola,
Amazon, Samsung,
Toyota, Facebook,
Mercedes, IBM
©Sean Gallup/Getty Images
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Locational Excellence
Especially important for retailers and service
providers.
Many say, “The three most important things in
retailing are location, location, location.”
Competitive advantage based on location is not easily
duplicated. Starbucks makes it difficult for competitors
to enter a market and find good locations.
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Multiple Sources of Advantage
A single strategy (low prices or excellent service) is
usually not enough to build a sustainable
competitive advantage.
Southwest Airlines
• Provides good service at a good value (on-time
flights that are reasonably priced)
11
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PROGRESS CHECK (1 of 3)
1. What are the various components of a marketing
strategy?
2. List the four macro strategies that can help a
firm develop a sustainable competitive
advantage.
12
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Exhibit 2.2: The Marketing Plan
Jump to Appendix 2 long
image description
13
© McGraw-Hill Education
Step 1: Define the Business Mission
PepsiCo’s Mission Statement:
“To provide consumers around the world with delicious,
affordable, convenient and complementary foods and
beverages from wholesome breakfasts to healthy and
fun daytime snacks and beverages to evening treats.”
Coke’s Mission Statement:
“To refresh the world … To inspire moments of optimism
and happiness … To create value and make a
difference.”
14
© McGraw-Hill Education
Step 1: Conduct a Situation Analysis Using
SWOT Analysis
Internal
Strengths
Internal
Weaknesses
External
Opportunities
External
Threats
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Exhibit 2.3: Examples of Elements in a
SWOT Analysis (1 of 2)
Environment Evaluation
Positive Negative
Pepsi
Internal Strengths
• Brand product portfolio
• Strong celebrity
endorsers
• Dedication to
charitable and social
causes
• Large marketing
budget
Weaknesses
• Relies heavily on Walmart
• Relatively lower brand
awareness
• Public scrutiny over
practices
• Low profit margins
External Opportunities
• Health food segments
• Expansion due to
acquisitions
• Ready-to-drink tea and
coffee market growth
• Bottled water
Threats
• Water scarcity
• Changes to labeling
regulations
• Increase competition
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Exhibit 2.3: Examples of Elements in a
SWOT Analysis (2 of 2)
Environment Evaluation
Positive Negative
Coca-
Cola
Internal Strengths
• High market share
• Strong brand
• Strong global
presence
• Excellent customer
loyalty
• Supply chain
Weaknesses
• Low diversification
• Few healthy beverages
External Opportunities
• Emerging countries
• Diversifying products
• Bottled water
Threats
• Water scarcity
• Potential market
saturation
• Changes to labeling
regulations
• Increasing competitors
Sources: SWOT analysis of Pepsi, Strategic Management Insight, February 15, 2013, http://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html;
SWOT analysis of Coca-Cola, Strategic Management Insight, February 15, 2013, http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html.
17
© McGraw-Hill Education
Step 3: Identifying and Evaluating
Opportunities Using STP
Segmentation
Targeting
Positioning
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Exhibit 2.4: Hertz: Market Segmentation
Illustration
Segment 1 Segment 2 Segment 3 Segment
4
Segment 5
Segments Single thrill
seekers and
gear heads
on vacation
Adrenaline
Collection
Business
customers
and families
who prefer a
luxurious
ride
Prestige
Collection
Environmentally
conscious
customers
Green
Collection
Families
SUV/Mini
van/4×4
Commercial
customers
Commercial
Van
/Truck
Cars
Offered
Corvette
ZHZ
Chevrolet
Camaro
Infiniti QX56
Cadillac
Escalade
Toyota Prius
Ford Fusion
Toyota
RAV4
Ford
Explorer
Ford Cargo
Van
19
© McGraw-Hill Education
Market Positioning
Choose which segments to pursue, then how to
position within those segments.
Define the marketing mix variables so target
customers have a clear, distinctive, and desirable
understanding of the product compared to
competition.
Hertz positions itself as a quality car and truck
rental company that is the first choice for each
target segment.
20
© McGraw-Hill Education
Step 4: Implement Marketing Mix and
Allocate Resources
Price and
Value Capture
Product and
Value Creation
Promotion and
Value
Communication
Place and
Value Delivery
21
© McGraw-Hill Education
Product and Value Creation
Successful products and services are those that customers
perceive as valuable enough to purchase.
22
© McGraw-Hill Education
Price and Value Capture
Price is what the customer is willing to pay for a
product they perceive as good value.
©digitallife/Alamy Stock Photo
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© McGraw-Hill Education
Place and Value Delivery
The product must be readily accessible when and
where the customer wants it.
Dyson provides product and place value.
Where are Dyson fans available?
24
© McGraw-Hill Education
Promotion and Value Communication
IMC: Integrated Marketing Communications
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct marketing
• Online marketing
(including social
media)
25
© McGraw-Hill Education
Step 5: Evaluate Performance Using
Marketing
Metrics
A metric is a measuring system that quantifies a
trend, dynamic, or characteristic.
Metrics are used to explain why things happened
and also project the future.
Social and Mobile Marketing 2.1: Proctor &
Gamble (P&G) devised a strategy to calculate the
returns on Snapchat campaigns.
26
© McGraw-Hill Education
Evaluating Performance
Who is accountable for
performance?
Performance Objectives,
Marketing Analytics, and
Metrics
Financial Performance
Metrics
Portfolio Analysis
27
© McGraw-Hill Education
Exhibit 2.6 Boston Consulting Group Matrix
P&G
Website
Jump to Appendix 3 long
image description
http://www.pg.com/
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© McGraw-Hill Education
Which Quadrant?
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© McGraw-Hill Education
PROGRESS CHECK (2 of 3)
1. What are the five steps in creating a marketing
plan?
2. What tool helps a marketer conduct a situation
analysis?
3. What is STP?
4. What do the four quadrants of the portfolio
analysis represent?
30
© McGraw-Hill Education
Growth Strategies
Exhibit 2.7: Markets/Products and Service Strategies
Jump to Appendix 4 long
image description
31
© McGraw-Hill Education
Market Penetration
Existing marketing mix, Existing customers
Marvel used a market penetration strategy by
expanding the distribution of its films:
• Theaters
• Xfinity
• DVDs (in a variety of retail locations)
32
© McGraw-Hill Education
Market Development
Current Products or Services
New Markets
What can a company do to continue to grow in a
difficult retail environment?
33
© McGraw-Hill Education
Product Development
New product or service
Current target market
© Netflix/Photofest
34
© McGraw-Hill Education
Diversification
New product or service
New market segment
Related vs. unrelated diversification
35
© McGraw-Hill Education
PROGRESS CHECK (3 of 3)
1. What are the four growth strategies?
2. What type of strategy is growing the business
from existing customers?
3. Which strategy is the riskiest?
Marketing
Chapter 2
The End
Chapter 3
Digital Marketing: Online,
Social, and Mobile
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
2
© McGraw-Hill Education
Learning Objectives
Learning Objective 3.1 Describe the 4E framework of digital
marketing.
Learning Objective 3.2 Examine the seven critical elements of online
marketing.
Learning Objective 3.3 Understand the drivers of social media
engagement.
Learning Objective 3.4 Understand various motivations for using
mobile applications.
Learning Objective 3.5 Recognize and understand the components of
a digital marketing strategy.
3
© McGraw-Hill Education
L’Oreal
©Tharanat Sardsn/Shutterstock
T
4
© McGraw-Hill Education
Exhibit 3.1: The 4E Framework for Digital
Marketing
5
© McGraw-Hill Education
Excite the Customer
Offer must be relevant to its
targeted customer.
Relevancy can be
achieved by providing
personalized offers.
© Genevieve Ross/AP Images
6
© McGraw-Hill Education
Educate the Customer
Golden opportunity:
Educate about the product’s value
proposition and communicate offered
benefits.
Source: Worldwide Breast Cancer
7
© McGraw-Hill Education
Experience the Product or Service
Provide vivid
information about a
firm’s goods and
services.
Simulate real
experiences.
© Steve Jennings/Getty Images
8
© McGraw-Hill Education
Engage the Customer
Action, loyalty, and
commitment.
Positively engaged
consumers lead to more
profitability.
Engagement can also
backfire.
9
© McGraw-Hill Education
PROGRESS CHECK (1 of 4)
1. What are the 4 Es?
2. What social media elements work best for each
of the 4 Es?
10
© McGraw-Hill Education
The 7C Online Marketing Framework
11
© McGraw-Hill Education
1. Core Goals
The basis of any
marketing strategy is its
goals.
Determine specific goals.
Align the goals with the
target market and align
the 7Cs with the goals.
12
© McGraw-Hill Education
2. Context Elements
Design
Navigation
Must be in alignment with
the target market
13
© McGraw-Hill Education
3. Content
Monitor to ensure
relevancy.
Devise appropriate
keywords to improve
organic
search.
Implement SEM and paid
search.
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© McGraw-Hill Education
4. Community
Allow
customers to
interact.
Use corporate and
professional blogs.
Engage in
Crowdsourcing.
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© McGraw-Hill Education
5. Communication
Clear, helpful, meaningful
content enables effective
communication.
Enables interacting with,
engaging, and educating
site visitors.
Provide a mechanism for
customers to
communicate with the
firm.
16
© McGraw-Hill Education
6. Commerce
Desktop usage is greater,
and conversion rates
higher, for online
purchases.
The most loyal customers
use multiple channels.
Customers want a range
of online purchase
options.
17
© McGraw-Hill Education
7. Connection
Engage customers and
provide a call to action.
Allow customers to
interact with the firm
continuously.
Enable positive
engagement.
18
© McGraw-Hill Education
PROGRESS CHECK (2 of 4)
1. Describe the components of the 7C online
marketing framework.
2. Differentiate between organic and paid search.
19
© McGraw-Hill Education
Exhibit 3.3:
The Wheel of Social Media Engagement
20
© McGraw-Hill Education
The Information Effect
Outcome in which relevant information is spread
by firms or individuals to other members of the
social network.
21
© McGraw-Hill Education
The Connected Effect
Outcome that satisfies humans’ innate need to
connect with other people.
22
© McGraw-Hill Education
The Network Effect
Outcome in which every post is spread
instantaneously across social media.
23
© McGraw-Hill Education
The Dynamic Effect
Information is exchanged to network participants
through back-and-forth communications.
Examines how people flow in and out of networked
communities as their interests change.
© Ignacio Izquierdo/Rex Features/AP Photo
24
© McGraw-Hill Education
The Timeliness Effect
Firms must engage with the customer at the right
place and time.
© SeongJoon Cho/Bloomberg/Getty Images
25
© McGraw-Hill Education
PROGRESS CHECK (3 of 4)
1. What are the five drivers of social media
engagement described in the Wheel of Social
Media Engagement?
26
© McGraw-Hill Education
Going Mobile and Social
Exhibit 3.4: Seven Primary Motivations for Mobile App Usage
Need for “Me Time”
Need to Socialize
Need to Shop (showrooming)
Need to Accomplish
Need to Prepare
Need to Discover
Need to Self-Express
Jump to Appendix 1 long
image description
Source: “Vision Statement: How People Really Use Mobile,” Harvard Business Review, January/February 2013, http://www.hbr.org
http://www.hbr.org/
27
© McGraw-Hill Education
App Pricing Models
Ad-supported apps
Freemium apps
Paid apps + in-app purchases
28
© McGraw-Hill Education
PROGRESS CHECK (4 of 4)
1. What are the seven types of customer
motivations for using mobile
apps?
2. What are the four options for pricing mobile
apps?
3. What are some of the most popular types of
mobile applications?
29
© McGraw-Hill Education
How Do Firms Engage Their Customers?
Exhibit 3.5: Social Media Engagement Process
30
© McGraw-Hill Education
Listen
Sentiment analysis:
• Attitudes
• Preferences
Source: NFL Properties LLC
Listening helps determine digital marketing
objectives and strategies.
31
© McGraw-Hill Education
Analyze Using Marketing Analytics
Hits
Page views
Bounce rate
Click paths
Conversion rate
Keyword analysis
Source: salesforce.com
32
© McGraw-Hill Education
Do
Develop and implement
campaigns using social
media.
Effective implementation
based on social and
mobile media activity.
© Genevieve Ross/AP Images
33
© McGraw-Hill Education
Exhibit 3.6 How to Do a Digital Marketing
Campaign
1. Identify strategy and goals
2. Identify the target audience
3. Develop the budget
4. Develop the campaign
5. Monitor & change
Marketing
Chapter 3
The End
The End