TCP/IP is the communications protocol that provides the common “language” of Internet computing.
Hypertext is the feature of the Internet that allows users to move easily from one document to another.
Which is not among the four distinct generic goals of Internet marketing?
Mobile access
Four distinct generic goals
- Customer acquisition – is a foundation goal of all marketers.
- Customer conversion – is the process of changing visitors, shoppers, or prospects into actual customer.
- Customer retention – involves turning the newly found customer into a loyal one who will remain with the enterprise over an extended period.
- Customer value growth – the equity that exists in the enterprise’s customer base, is the end goal of the acquisition, conversion, and retention process.
The Sabre System is an example of an information product
Objectives that can be appropriate for Internet marketing include building loyal customer relationships
Which of the following is not an element of the Internet infrastructure stack
Website content
Components of internet infrastructure stack:
- Computer equipment.
- Storage service.
- Server applications.
- Data centre.
Which of the following is not a strategic driver of the Internet economy
Employees can easily be substituted for one another
Term often used when software is made available on a fee for usage basis
Software as a Service
Web 2.0 is characterized by
services and co-creation
Which of the following is a true statement about the origins of the Internet
The Internet was initially developed by DARPA to fund research in communications technology for defense purposes
The Internet experienced slow but steady growth until __ allowed users to move around in easy graphical fashion
Mosaic
The phenomenon we call “the Internet bubble” was characterized by
many Internet businesses that had not attained profitability.
venture capital available to even questionable business models.
The Sabre System is an example of
an information product that existed prior to the Internet.
the evolution of an internal system into a commercial product.
The basic business models used on the Internet include
multi-channel marketing
Which of the following is a true statement about the Internet infrastructure stack
It describes activities that can be performed inside the business or outsourced to independent suppliers.
It describes the manner in which different elements come together to create the Internet environment.
Sales force.com exemplifies
a “cloud computing” product that shows the power of connectivity in a network.
One of the ways in which the Internet is changing business is
increasing the need for speed and agility
Herman Miller realized __ as a benefit of its value chain improvements
improvement in the time it takes to deliver an order to a customer
Two concepts Herman Miller employed as part of its ongoing process of value chain improvement are:
. Greening and Lean Thinking
A phrase that describes value chains is
seamless end-to-end integration throughout the channel of distribution
The core processes of marketing include
-Supply chain management
-Product development and management
-Customer relationship management
Outcomes-driven supply chains should be recognized as
one means of achieving business profitability
__ is one criterion for a successful supply chain
Responsiveness to changes in customer demands
Supply chain transparency might include
assuring customers that products are made and transported in ways that correspond with their values.
__ is an element of the supply chain management process
Managing multiple channels of distribution
Zara is successful in the highly competitive fashion industry because
it is able to get what fashion consumers want into stores quickly
Del promotes customer loyalty by
soliciting their input in social media
__ is the term used to describe information systems that provide a complete picture of a supply chain
Mirroring
Over the years FedEx has enhanced customer value by
giving customers tools to track their own shipments.
giving customers tools to activate FedEx Office orders
The marketing concept of service-dominated logic includes which of the following concepts
Customers are always co-creators of value
Which of the following is not an example of an integration process used in the creation of virtual value chains?
ML
The term “Web Services” in value chains describes
business applications on the Internet that allow suppliers and customers to work together
Firms like Amazon and eBay use APIs to
encourage other businesses to link to the firm’s site and sell their products there.
enable programmers to create software solutions that incorporate their technology.
__ is a term that is descriptive of Cloud Computing
SaaS
RFID tags
allow product codes to be read without passing over a scanner screen
The benefits of business integration include
use existing bar code technology to track products
__ is an important element of any business model
Value proposition
Music file sharing is an example of which Internet business model
Community
__ is making recommendations to visitors based on preferences generated by the purchases of similar visitors
Collaborative filtering
Disintermediation means
Eliminate the middleman
__ is the business model used to describe a site that resells large amounts of content on the web.
Infomediary
Among the functions filled by business models are
to describe the value proposition
Which of the following is not an element to be considered when preparing an Internet business model?
How customers will use the product or service.
Elements of a value proposition do not include
a description of customer service strategy
Revenue models for online businesses include
Bringing buyers and sellers together.
Reaching buyers directly.
Which of the following is a true statement about Internet business models
Nonprofit organizations and governmental agencies make use of a variety of business models
Examples of the infomediary business model include
Wall Street Journal Online
Companies share information within the organization on
Intranet
The __ manages and distributes data on the Internet
infomediary
Which of the following is a type of business marketplace
Consortium
Private exchange
Which of the following is an example of the utility model
Skype
Slashdot
A statistical technique to identify underlying patterns in data
predictive modeling
A company selling shoes online to consumers is following which business model?
Merchant
Selling software-based services on the Internet is an example of which type of model
Manufacturer
RSS feeds are
a method of syndicating content.
The advertising model is an extension of which traditional model
Media Broadcast
eToys illustrates the following concept
Internet firms often have large initial investments in technology and order fulfillment facilities
The key function of the affiliate model is to
provide financial incentives to partners.
The basic direct-response strategies are
acquisition, conversion, and retention
Which of the following is a true statement about the front end of marketing
Front-end activities are the most visible aspects of marketing
Among the uses of CLV data to Harrah’s is
to drive programs that increase customer value.
to provide a powerful way to segment markets.
__ is a simple type of test frequently used in various marketing media
Control group
Factorial design
Which of the following is a true statement about data mining
Data mining can uncover previously unsuspected patterns in the data
Among the interactive strategies marketers can pursue are:
information, transaction, and personalization
All Direct-Response promotions must have __
a clear call to action
__ is the term used to describe the marketing activities that involve fulfillment and customer service
back end
Which of the following is a true statement about the front end of marketing
The front end involves customer acquisition activities
Which of the following is not a true statement about CLV
It can be used only by traditional direct marketers
The “best customer model: called RFM:
helps marketers determine what kinds of new customers to acquire.
is a multiplicative model composed of recency, frequency and monetary value.
A hierarchy of interactive activities suggests that __ is a customer-focused activity that can be pursued after a foundation of less information-intensive activities is built
personalization
type of firm that typically has established capabilities in fulfillment and customer service
DIRECT MARKETERS
__ is the development of web pages in a manner that is friendly to search engine spiders
seo
The objective of keyword bidding is to
BEST RANKING LOWEST COST
__ is the set of techniques designed to make web pages rank highly on search engine result pages.
SEM
Among the techniques that can downgrade a page’s rank on the search engines are:
flash pages.
links from sites with questionable or irrelevant content.
The most important influencer of organic search ranking is estimated to be
LINK ACTIVITY
Where do “organic” or “natural” search rankings appear on a search results page
To the left underneath the paid search terms
- Which of the following is not a Meta Tag?
SEARCH METATAG
One method of measuring the results of a paid search campaign is
GOOGLE ANYLITICS
A good goal for keyword density on a website should be
1-3 %
5 main reasons people go to the internet
-Connect
-Create
-Enjoy
-Share
-Learn
List the 4 elements of the internet marketing paradigm
-Acquire
-Convert
-Retain
-Growth in value
How did Annheiser-Busch manage their supply chain
They tried to vertically integrate everything they could. This led to them eventually buying hop farms, aluminium collection companies, can production companies, and eventually even a railroad.
List the 4 levels of the Brand Loyalty Pyramid
Advocate
Loyalty
Trial
Awareness
What are the 3 components of the “value proposition”?
Supply Chain
Value Proposition
Distribution Chain
Who are the 4 different players in an “affiliate” model?
Customer
Merchant
Affiliate
Intermediary
Value is a function of
Core competencies & customer needs
What was the main issue that AliBaba, eBay, Napster and other brokerage models faced?
They had to take responsibility for what is sold on their site (People using Napster’s file sharing service for pirating music or people on AliBaba selling fraudulent art).
Why did P&G resort to direct marketing for Cheer Free & Clear?
They had such a small & concise target customer base
Front end activities
-Branding, marketing (focus on customer acquisition)
Back end activities
-Loyalty programs (focus on customer retention)
What does CLV stand for, and what are some of the main points / advantages we learned about customers and retention?
-CLV = customer lifetime value
-Your customer retention will not always be 100%, so it is important to continue to grow your customers value, & get them to spend more
As a marketer, what would you say about the importance of testing and how to test?
Testing is important so you can observe the ROI of your investment & compare its performance to other ads to improve it. One way to test an ad is to look at its metrics. For example, one way you could do this is to see what percentage of people that viewed your ad also clicked on it.
What several important discoveries did Harrah’s make when they conducted datamining on their customers?
They found that their whales (the people who spent the most) preferred free chips/ gambling money opposed to free rooms or food. In addition to this, they found that older people were typically the biggest spenders.
What are the four elements of a video marketing strategy?
-Publish
-Promote
-Optimize
-Analyze
Professional production of videos trumps relevance and timeliness
False. People care more about relevance than the video looking nice.
What stage is a demo most effective in?
Consideration stage
What stage is a viral video most effective in?
Awareness stage
What stage is a webinar most effective in?
Consideration Stage
What stage is a customer testimonial most effective in?
Close (Purchase)
What stage are interactive videos most effective in?
Close (Purchase)
Display ads are primarily used for which phase of eMarketing?
Acquisiton
Give an example of an “event triggered” stimulus for communication with customers
A wedding, moving (something that advertisers come to)
What is an “IMU” and why is it important today
An Internet Marketing Unit is important because its what you use to measure ads
When it comes to designing an online ad, creativity is less important than brand message in an online ad
True
List 3 of the 9 specific “customer acquisition techniques” we discussed
-Search Engine Marketing
-Online advertising
-Email promotions
-Offline advertising and promotion
-Events and public relations
-Social media marketing
-Affiliate programs
-Portal deals
-Viral marketing
List the 6 types of targeting for online advertisers. Which type is best?
-Behavioral targeting is considered the best
-Targeting identified users
-Targeting unidentified users
-Targeting with a predictive model
-Targeting on vertical networks (Ex. travel websites that provide lots of varying options)
-Targeting on social media
Disintermediation
When layers in the supply chain fall out (Ex. buying from the manufacturer online instead of a wholesaler)
Intermediation
Adding a layer in the supply chain (Ex. when the manufacturer contracts UPS/FedEx to ship their packages to the consumer
Core marketing processes
-Supply chain management
-Product development and management
-Customer relationship management
Vertical integration
Expanding in the supply chain (Budweiser buying the St. Louis railroad
Horizontal integration
Increasing production of goods or services in the same part of the supply chain. Can be done via internal expansion, acquisition of another company, or merger.
Annheiser Busch supply chain parts
-Hop farms
-Barley farms
-Aluminum
-Recycled cans
-Railroad
Affiliate
Person who advertises for the merchant
Intermediary
Person who tracks what sales come from an affiliate
Merchant
A person who sells a good or service
The cost of acquisition is what in comparison to the cost of retention?
The cost of acquisition is much higher than the cost of retention
Value chain
The process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service
Infomediaries
Reselling useful data
Manufacturer model
The manufacturer directly selling to the consumer
Affiliate model incentives:
-Banner exchange: “I will show your ads on my site if you show my ads on your site”
-Pay per click”: When the affiliate is paid for each click on the merchants ad
-Revenue Sharing: The affiliate receives a cut of the profits from sales that stemmed from them
Community model
Connects individuals and companies
-Crowdsourcing
-Open source software
Subscription model
Pay for content/services
Utility model
Pay as you go
-Metered usage (Skype)
Things that affect acquisition cost
Targeting
Brand recognition
Above the fold
Above the point where you have to scroll to get to the ad
TV vs print media in ad awareness and familiarity
TV is best for awareness while print media is best for creating familiarity
Brand recognition
aided recollection
Brand recall
unaided recollection
To increase viewer purchase rate, you should…
Add a video to your website
Keywords
Words or phrases selected when making a search
Meta name
also known as meta tag or meta element and is the header portion of a site’s HTML code
Title tag
the content that resides within the title tag of a page’s HTML
SERP
Search Engine Results Page: What you get back from your search
The four I’s of internet marketing:
-Interactive
-Information driven
-Immediate
-Involving
Permission email marketing is….
Anticipated
Personal
Relevant
Can SPAM act guidelines:
-Must list physical address
-From valid email address with valid reply
-Unsubscribe
-Must label ad advertising
Advantages of SEO
-More return traffic
-Lower cost
-Better response rate since majority of clicks are organic
Disadvantages of SEO
-Results are not immediate
-Ranking is difficult to predict
-Initial time investment is large
Advantages of PPC
-Immediate search results
-Daily budget can be limited
-Unlimited keywords
Disadvantages of PPC
Easy to lose ranking or spot
Potential unqualified clicks
Daily budget can be expensive depending on the keywords
- Different models
- -Community model: connects individuals and companies (open source, crowdsourcing)
- -Utility model: pay as you go
- -Affiliate model: offer incentives to partners
- -Infomediaries: reselling useful data
- -Merchants: provide goods and services
- -Manufacturer (direct) model: manufacturer selling directly to the consumer
The ARPANet was designed as a user-friendly network that would connect businesses around the globe.
F
Websites are typically hosted on a server
T
Mosiac, the first graphical browser, made it easier to move around the Internet and thus accelerated its growth
t
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.
T
There is little room for growth in mobile or broadband in developing countries.
F
Successful global brands rely solely on the Internet for their achievements
F
In the Internet economy it is considered essential to acquire as many customers as possible.
F
Telecommunications technology forms the “backbone” of the Internet Infrastructure.
T
“Scalability” refers to information systems that can only grow with substantial future investment.
F
Less than half of online consumers use email on a daily basis
F
Web 3.0 refers to websites and applications that will understand and respond to the user’s intent.
T
The Internet has fostered a number of Interactive Marketing Channels
T
Lowering costs and increasing quality are not benefits to firms of Internet operations
F
Pets.com demonstrates an example of one of the most successful of the early Internet-only firms.
F
Greening its supply chain has allowed Herman Miller to make products that are mostly recyclable.
T
The value chain refers to the various suppliers a producer utilizes to procure products or services.
F
Supply chain management is one of the core marketing processes
T
- Transaction costs can be minimized while maintaining customer service in an outcomes-driven supply chain
T - Dell’s business has unique characteristics that make it impossible for other businesses to use value chain techniques Dell has pioneered.
F - Transaction costs are part of a value chain but costs of finding information are not
F - Social media tools like blogs and community forums can be useful in communicating with business customers in a value chain.
T - The first step in creating a virtual value chain is to create visibility, which can be defined as the ability for customers to see into inventory systems
F - The value a customer perceives in a product or service is largely determined by its price.
F - Among the benefits of integrated value chains are customer focus and resulting opportunity to create specialized value propositions for customer segments.
T - Electronic Data Interchange is an integration process that is relatively easy for enterprises large and small to implement
F - Enterprise Resource Planning is used to integrate business processes including, but not limited to, marketing-related processes across the enterprise
T - Web Services can be provided “in the cloud.”
T - RFID is a 21st century technology that is destined to revolutionalize supply chains
F - Technology will provide the ultimate solution for efficiently-functioning supply chains
F - The value proposition concept only applies to online banking.
F - A business model describes how the enterprise creates value for customers and generates revenue.
T - Business model and business plan are synonymous terms.
F - A value proposition describes the value created for all customers who purchase this type of product
F - When creating their business model Internet marketers must choose a single, specific revenue model.
F - Business models in the B2C space are entirely different from business models in the B2B space.
F - Advertising is the only feasible revenue stream for most Internet businesses
F - Affiliate programs are worthwhile but expensive for marketers to operate.
F - Application Service Providers (ASPs) provide software applications and services to small companies.
F - Infomediaries are present only in the B2C marketspace
F - With the demise of Napster the Peer-to-Peer application is no longer viable.
F - The advertising model is an excellent way for a new business to consider making money.
F - Ecommerce is not applicable to nonprofit markets:
F - The subscription model is not applicable to nonprofit markets:
F - A proprietary system is usually not sold or licensed
F
