CH 3 Digital Marketing CLASS

Because learning changes everything.
Chapter 3
Digital Marketing: Online,
Social, and Mobile
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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.
Learning Objective 3.6 Understand the central factors in picking an

influencer partner.
© McGraw Hill LLC 3

Hilton
© McGraw Hill LLC Regien Paassen/Shutterstock 4

Exhibit 3.1: The 4E Framework for Digital Marketing
Access the text alternative for slide images.

Excite the Customer
Offer must be relevant

to its targeted customer.
Relevancy can be
achieved by providing
personalized offers.
Marketers use many kinds of digital offers to excite customers,

and to excite them, an offer must be relevant to its targeted
customer. Lush Cosmetics encourages customers to post
pictures of themselves using its products on social media by
promising that if they use #LushLife, they might find
themselves featured on its official page.
Source: Lush Cosmetics/Instagram

Educate the Customer
Golden opportunity to
educate about the
product’s value
proposition and
communicate offered
benefits.
When marketing
ideas, the goal is to
improve people’s
well-being, along with To educate women about how to perform breast self-exams, the #KnowYourLemons
selling the underlying campaign posted pictures of a dozen lemons to teach people about 12 shapes and
lumps they should be looking for when they themselves for cancer each month.
concept.
© McGraw Hill LLC Source: Worldwide Breast Cancer 7

Experience the Product or Service
Provide vivid information

about a firm’s goods and
services.
Simulate real experiences.
Sephora maintains its own YouTube channel with dedicated videos that
demonstrate how to use specific products like bright pink eyeshadow.
© McGraw Hill LLC Source: Sephora USA, Inc. 8

Engage the Customer
Action, loyalty, and

commitment.
Positively engaged
consumers lead to more
profitability.
Engagement can also

backfire.
IKEA engages customers with its “Place” app that enables
customers to select an item from its catalog and then, by
using the camera within the app, visualize the item in their
home or office.
© McGraw Hill LLC Source: IKEA Systems B.V. 9

PROGRESS CHECK (1 of 6)
1. What are the 4 Es?

2. What social media elements work best for each
of the 4 Es?

EXHIBIT 3.2: The 7C Online Marketing Framework

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. Hasbro has embraced online marketing to reflect its core goals. To
introduce this new brand called Hanazuki, it developed an entire
series that viewers can watch on YouTube. The Hanazuki page is
filled with animation, movement, and bright colors, encouraging
visitors to take their time exploring the different characters, watching
videos, downloading apps, and perhaps shopping too.
© McGraw Hill LLC Source: Hasbro, Inc. 12

2. Context Elements
Design.
Navigation.
Must be in alignment
with the target market.
Because Walmart’s core goal is to encourage purchases, its commerce-

oriented website features a simple look and feel. Looking closely at the
design and color scheme, notice that Walmart’s home page aligns with its
adult target market. It is more traditionally focused on selling Hanazuki
merchandise than Hasbro, Inc. with little concern for the brand itself.
© McGraw Hill LLC Source: Walmart Stores, Inc. 13

3. Content
Monitor to ensure
relevancy.
Devise appropriate
keywords to improve
organic search.
Implement SEM and

paid search.
The content of these messages must resonate with its target market, but
need not always showcase merchandise or services, as in the Facebook
post from the jewelry firm, Alex and Ani. The company is not showcasing its
jewelry per se, but rather providing a motivational quote that resonates with
young females, its primary target market.
© McGraw Hill LLC Source: Alex and Ani, LLC 14

4. Community
Allow customers to
interact.
Use corporate and

professional blogs.
Engage in
Crowdsourcing.
Betabrand uses crowdsourcing by having its customers submit clothing

design ideas and feedback on items before they are manufactured.
© McGraw Hill LLC Source: Betabrand 15

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.

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.
Through Sephora’s mobile app, Beauty Insider account holders can check their
loyalty points, access past purchase behavior, receive personalized
recommendations, scan items while in stores, and much more.
© McGraw Hill LLC Source: Sephora USA, Inc. 17

7. Connection
Engage customers and

provide a call to action.
Allow customers to
interact with the firm
continuously.
Enable positive
engagement.
A good website or blog engages customers and provides them with a
call to action. Warby Parker connects customers with four call-to-
action buttons inviting visitors to: get started, order frames to try on at
home, take a quiz, and shop online.
© McGraw Hill LLC Source: Warby Parker 18

1. Describe the components of the 7C online
marketing framework.
2. Differentiate between organic and paid search.

Exhibit 3.3:
The Wheel of Social Media Engagement

The Information Effect
Outcome in which relevant

information is spread by
firms or individuals to other
members of the social
network.
© McGraw Hill LLC BigTunaOnline/Shutterstock 21

The Connected Effect
Outcome that satisfies humans’ innate need to connect with

other people.
© McGraw Hill LLC Source: William Perugini/Shutterstock 22

The Network Effect
Outcome in which every post is spread instantaneously

across social media.
© McGraw Hill LLC Source: Shutterstock/Metamorworks 23

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.
© McGraw Hill LLC Rawpixel.com/Shutterstock 24

The Timeliness Effect
Firms must engage with the customer at the right

place and time.
Using beacon technology, Coca-Cola is able to engage customers in

a timely manner by offering moviegoers a free Coke at the moment
they walk into a movie theater.
© McGraw Hill LLC Source: SeongJoon Cho/Bloomberg/Getty Images 25

1. What are the five drivers of social media
engagement described in the Wheel of Social
Media Engagement?

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
With more than 3 billion downloads, Candy Crush Saga clearly fulfills for
many people an important need for unproductive “me time.”
© McGraw Hill LLC Source: Alexat25/Shutterstock 27

App Pricing Models

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?

How Do Firms Engage Their Customers?
Exhibit 3.4: Social Media Engagement Process

Listen
Listening helps
determine digital
marketing objectives and
strategies.
Sentimental analysis
allows marketers to
analyze and determine
consumers attitudes and
Other companies perform their own analyses, effectively leveraging their
existing capacities for listening to customers. Zappos is known for its
remarkable customer service and attracts plenty of buzz about its
preferences. offerings. It takes the information it gathers from listening to customers to

design strategies that emphasize what they like most.
© McGraw Hill LLC Source: Zappos.com, Inc. 31

Analyze

Exhibit 3.5: How to Do a Digital Marketing
Campaign

Do
Develop and implement EXHIBIT 3.6 Example Facebook Targeting Choices
campaigns using social

media.
Effective implementation
based on social and
mobile media activity.
© McGraw Hill LLC Source: Facebook 34

1. What are the components of a digital marketing
strategy?

Influencer Marketing
A marketing strategy that uses

opinion leaders, popular on social
media, to drive marketing
messages to a targeted audience.
Firms hire (or encourage) these

well-known names to promote
brand messages to their networks
of followers.
Big-time influencers like
Ariana Grande have millions
of followers and can
command almost a mil-lion
dollars for a sponsored post.
© McGraw Hill LLC Source: Lev Radin/Shutterstock 36

Assessing the Efficacy of Influencers
Relevance Reach
Response Return
Influencers like Selena Gomez can reach millions of potential

customers for Coca-Cola with an Instagram post like this one, which
depicts her drinking a Coke with the lyrics from one of her songs on
the bottle.
© McGraw Hill LLC Source: Selena Gomez/Instagram 37

Exhibit 3.8: Influencer Marketing Chain of
Events

Exhibit 3.9: Types of Influencers
Type of Influencer Definition Example Key Channels Average Cost per Post
Celebrity Large following, widely Nespresso relies heavily on Social media, print, $3,000–$500,000
recognized George Clooney to promote its television
products in marketing across
platforms, leveraging his cool
image to enhance its appeal but
Table divided into five columns

also his reputation for
environmental sustainability to
summarizes types of influencers.

promote its own efforts along these
lines
Micro Modest following, niche NUX Active (athletic clothing
Posts on social media $80–$500
interest The column headers are marked
brand) worked with Sydney
sites, shared promo codes
Loveleigh Nelson, whose health
from left to right as: Type of
and fitness posts have earned her
about 21,000 followers
Blog influencer,
Writes for a blog and has definition, example,
Reviewskey
The FaceGym spa sponsored a
on blog, guest $400–$5,500
attracted readers and blog post by lifestyle blogger
blog posts
channels,
subscribers with that and average cost per
Hannah Bronfman to provide
content information about its services and
post. treatments
Social media Popular on social platforms LaCroix worked with nutritionist Pictures posted with the $100–$500,000
(Instagram, YouTube, Joy Bauer to create a Twitter post product, shared hashtags,
Twitter) among followers in of a recipe she had created, using videos featuring the
specific target audiences the product product
Specialized Key opinion leader or BoxyCharm, a subscription beauty Social media, tutorials, $500–$5,000
expert in a specific field box service, worked with Kandee reviews, blog posts,
Johnson, a professional makeup sponsored print articles,
artist, to make videos that articles in academic
explained each product included in journals
a box
Source: Kristen Baker, “What Will Influencer Marketing Look Like in 2020?,” HubSpot, December 2, 2019, https://blog.hubspot.com/marketing/how-to-work-with-
influencers

Ethical Considerations for Influencer Marketing
Fraudulent Influence
• The incentive to boost follower numbers accordingly has led to
various unethical behaviors.
Disclosing Advertising
• Intent if an influencer is being paid to promote a product, that
information should be clear in the post.
Sincerity
• Effective influence attempts require followers to believe that the
influencer actually likes and appreciates the product.

1. How should firms choose and assess the efficacy
of influencers?

End of Main Content
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Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

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Because learning changes everything.

Learning Objective 3.2 Examine the seven critical elements of online

Learning Objective 3.3 Understand the drivers of social media engagement.

Learning Objective 3.4 Understand various motivations for using

Learning Objective 3.5 Recognize and understand the components of

Learning Objective 3.6 Understand the central factors in picking an

© McGraw Hill LLC 3

© McGraw Hill LLC Regien Paassen/Shutterstock 4

Access the text alternative for slide images.

© McGraw Hill LLC 5

Offer must be relevant

Marketers use many kinds of digital offers to excite customers,

Source: Lush Cosmetics/Instagram

© McGraw Hill LLC 6

© McGraw Hill LLC Source: Worldwide Breast Cancer 7

Provide vivid information

Simulate real experiences.

© McGraw Hill LLC Source: Sephora USA, Inc. 8

Action, loyalty, and

Engagement can also

© McGraw Hill LLC Source: IKEA Systems B.V. 9

1. What are the 4 Es?

© McGraw Hill LLC 10

Access the text alternative for slide images.

© McGraw Hill LLC 11

The basis of any

Align the goals with the

© McGraw Hill LLC Source: Hasbro, Inc. 12

Because Walmart’s core goal is to encourage purchases, its commerce-

© McGraw Hill LLC Source: Walmart Stores, Inc. 13

Implement SEM and

© McGraw Hill LLC Source: Alex and Ani, LLC 14

Use corporate and

Betabrand uses crowdsourcing by having its customers submit clothing

© McGraw Hill LLC Source: Betabrand 15

Clear, helpful, meaningful content enables effective

Enables interacting with, engaging, and educating

Provide a mechanism for customers to

© McGraw Hill LLC 16

Desktop usage is greater,

The most loyal customers

Customers want a range of

© McGraw Hill LLC Source: Sephora USA, Inc. 17

Engage customers and

© McGraw Hill LLC Source: Warby Parker 18

© McGraw Hill LLC 19

© McGraw Hill LLC 20

Outcome in which relevant

© McGraw Hill LLC BigTunaOnline/Shutterstock 21

Outcome that satisfies humans’ innate need to connect with

© McGraw Hill LLC Source: William Perugini/Shutterstock 22

Outcome in which every post is spread instantaneously

© McGraw Hill LLC Source: Shutterstock/Metamorworks 23

Information is exchanged to network participants through

© McGraw Hill LLC Rawpixel.com/Shutterstock 24

Firms must engage with the customer at the right

Using beacon technology, Coca-Cola is able to engage customers in

© McGraw Hill LLC Source: SeongJoon Cho/Bloomberg/Getty Images 25

© McGraw Hill LLC 26