Lecture 1
Article: Digital marketing: A framework, review and research agenda
- P.K. Kannan
- Hongshuang Alice Li
Digital marketing
● The term digital marketing has evolved over time
○ From a specific term describing the marketing of products and services using digital
channels...
○ To an umbrella term describing the process of using digital technologies to acquire customers
and build customer preferences, promote brands, retain customers and increase sales
● Digital marketing: an adaptive, technology-enabled process by which firms collaborate with
customers and partners to jointly create, communicate, deliver, and sustain value for all stakeholders.
● Processes enabled by digital technologies create value:
○ Through new customer experiences
○ Through interactions among customers
● Digital marketing itself is enabled by a series of adaptive digital touchpoints, encompassing:
○ The marketing activity
○ Institutions
○ Processes
○ Customers
Digital marketing framework
● Environment (box 1)
○ The five C’s making up the environment that the company operates in
■ Customers
■ Competitors
■ Collaborators
■ Company
■ Context (geography, privacy/security, regulation, piracy)
● Company (box 2)
○ What actions will the company take, taking into account all elements of the marketing-mix
■ Product/service
■ Price
■ Promotion
■ Place
● Outcomes (box 3)
, ○ Are a reflection of how the firm has been able to benefit from the opportunity provided by
digital technologies to create value for their customers and themselves
■ Customer value
■ Firm value
● Marketing research (box 4)
○ Focuses on the acquisition and processing of information generated as a result of the use of
digital technologies to understand the specific elements of the environment, actions and
outcomes that inform the marketing strategies of the firm.
● Marketing strategy (box 5)
○ The set of knowledge generated that helps understand all this together en which strategy is
good for all the groups (social media → customer satisfaction)
Article: The consumer in the digital age: the evolution of consumer power
- Lauren Labrecque
- Jonas vor dem Esche
- Charla Mathwick
- Thomas P Novak
Main focus and definitions
● Intersection of digital media and consumer behavior to gain insights into customer empowerment
● Power
○ the asymmetric ability to control people or valued resources in online social relations
○ In online worlds, if no counterpart existed, power could not arise.
● Status
○ in social relations: the extent to which an individual or group is respected for or admitted by
others.
○ social media environments are equipped with different, explicit signifiers of status (number of
followers, badges, activity rankings)
○ They continuously measure individual activity and the influence of these activities on others.
Therefore, status is more transparent on the internet and in social media.
● Influence
○ Ability to exert control over people
○ Influence is a function of reach, the degree of the person's embeddedness in the social
network, and persuasiveness, linked to the relevance of the content the person creates online
Four sources of consumer power
,● Starting with two individual-based power sources (demand and information-based power) and
progressing to two network-based power sources (network- and crowd-based power)
● Demand-based power
○ Demand-based power resides in the aggregated impact of consumption and purchase
behaviors arising out of internet and social media technologies
○ Zoekmachines en grafische browsers zorgden voor meer toegang en keuze voor de consument,
maar de kennis-, financiële en infrastructuur barrières beperkten het vermogen van een
persoon om persoonlijke websites te maken en informatie te delen.
● Information-based power
○ Through content consumption relates to the ease of access to product or service information
■ Reduces information asymmetry
■ Expedites market diffusion of information
■ Shortens product life cycles
○ Through content production is the ability to produce user-generated-content
■ Outlet for self-expression
■ Extending individual reach
■ Elevating the potential for individual opinion to influence markets
● Network-based power
○ Content through network actions designed to build personal reputation and influence markets
through the distribution, remixing, and enhancement of digital content.
○ Actions by which others can add value, beyond that of the original content.
○ Derived from activities such as:
■ Content dissemination: sharing and organizing content through networks
■ Content completion: comments on a blogpost that contribute to previous content,
tagging
■ Content modifications in social networks: repurposing content, such as a video or
image meme
● Crowd-based power
○ Ability to pool, mobilize, and structure resources in ways that benefit both individuals and the
groups.
○ Examples of crowd-based power include
■ crowd-creation (Wikipedia, Soundcloud)
■ crowdfunding (Kickstarter, Bandalive)
■ crowd-sourcing (Amazon Mechanical Turk)
■ crowd-selling ( Etsy)
■ crowd-support in peer-to-peer problem solving (HP)
, Article: Informational Challenges in Omnichannel Marketing: Remedies and Future Research
- Tony Haitao Cui
- Anindya Ghose
- Hanna Halaburda
- Raghuram Iyengar
- Koen Pauwels
- S. Sriram
- Catherine Tucker
- Sriraman Venkataraman
Multichannel and omnichannel
● Multichannel marketing: the design, deployment, coordination, and evaluation of the channels to
enhance customer value. Therefore, although customers may interact with the firm across multiple
channels before a conversion occurs, the firm’s focus is on managing and optimizing the performance
of each channel separately.
● Omnichannel marketing: the synergistic management of all customer touchpoints and channels both
internal and external to the firm to ensure that the customer experience across channels as well as
firm-side marketing activity, including marketing-mix and marketing communication (owned, paid,
and earned), is optimized for both firms and their customers.
● Seamless “omnichannel retailing” experience is turning the world into a showroom without walls.
○ Boundaries between traditional and internet commerce are blurring
○ Companies can interact consumers through multiple touch points
○ Rich blend of offline sensory information and online content
Three main challenges
● Three main interrelated challenges that have prevented omnichannel marketing from realizing its full
potential:
○ Data access and integration
■ Firms need information on all their interactions with each customer during the
different stages of the customer journey
■ Gain access to data → Know what kind of data exists on the same customer within
the firm (and beyond the firm). Sharing data between different departments with the
same company can be very difficult.
