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Chapter 16: Direct, Online, Social Media, and Mobile Marketing

Every problem in the chapter beside the book’s answer, a chapter at a time as you scroll.

Chapter 16: Direct, Online, Social Media, and Mobile Marketing

18 problems · 0 figures

Knowledge Check 16.1.1 §16.1 source ↗

Which of the following best describes the difference between traditional direct marketing and online direct marketing?
  1. a.
    Online direct marketing uses digital tools to individually engage with consumers and call them to take some desired action. Traditional direct marketing does not allow a quick call to action.
  2. b.
    Traditional direct marketing is more effective than online direct marketing.
  3. c.
    Online direct marketing allows marketers to target consumers based on factors such as their location, age, and income. Traditional direct marketing can also be based on demographic factors.
  4. d.
    Traditional direct marketing channels do not include a call to action, and online direct marketing channels do.

Answer

A. Online direct marketing uses digital tools to individually engage with consumers and call them to take some desired action. Traditional direct marketing does not allow a quick call to action.
Online direct marketing includes digital tools such as email, websites, online videos, and blogs to communicate and engage with individual consumers and elicit a desired consumer response or action.

Knowledge Check 16.1.2 §16.1 source ↗

Which of the following best summarizes the cause for the emergence of online direct marketing as a promotion tool?
  1. a.
    The explosion of internet usage, online shopping, and smartphone usage and the advancement of digital marketing technologies best explains the emergence of online direct marketing.
  2. b.
    Consumers are spending less time watching movies and shows.
  3. c.
    Traditional direct marketing tools have gotten too expensive and are no longer effective at engaging customers.
  4. d.
    Traditional direct marketing doesn’t offer the same degree of message relevance that online direct marketing does.

Answer

A. The explosion of internet usage, online shopping, and smartphone usage and the advancement of digital marketing technologies best explains the emergence of online direct marketing.
As consumers are more connected to the internet via their mobile devices and digital technologies have evolved, online direct marketing has emerged as a practical promotion tool for reaching consumers.

Knowledge Check 16.1.3 §16.1 source ↗

Which type of marketing involves creating and distributing content that is valuable and relevant to a company’s target customers?
  1. a.
    Website marketing
  2. b.
    Blog marketing
  3. c.
    Email marketing
  4. d.
    Content marketing

Answer

D. Content marketing
Content marketing involves creating and distributing content that consumers find meaningful and valuable. With content marketing, marketers must anticipate what type of content their audience wants and tell their story in a way that the audience can relate to.

Knowledge Check 16.1.4 §16.1 source ↗

Which form of online marketing is permission-based, meaning that consumers must consent to receiving online messages?
  1. a.
    Website marketing
  2. b.
    Blog marketing
  3. c.
    Content marketing
  4. d.
    Email marketing

Answer

D. Email marketing
Email marketing is permission-based marketing. Consumers must opt in to receive messages from companies. This typically occurs when a consumer purchases a product or service and asserts that they would like to receive messages from the company from which they’ve purchased.

Knowledge Check 16.1.5 §16.1 source ↗

Which of the following represents an advantage of using online direct marketing tools?
  1. a.
    Online direct marketing allows marketers to target consumers globally because of worldwide access to the internet.
  2. b.
    Online direct marketing is highly targeted in that marketers can reach customers through a variety of digital channels that are inexpensive compared to other promotion tools.
  3. c.
    Online direct marketing allows for easier measurement of ROI on campaigns.
  4. d.
    All of these are advantages of online direct marketing.

Answer

D. All of these are advantages of online direct marketing.
Advantages of online direct marketing are that it has global reach, is highly targeted, and can be much easier to measure ROI.

Knowledge Check 16.2.1 §16.2 source ↗

Which of the following is an advantage of social media marketing?
  1. a.
    Social media is highly targeted in its ability to reach segments of consumers who share common interests and demographics.
  2. b.
    With social media, marketers have complete control of the message.
  3. c.
    Social media is very easy to manage and requires few resources.
  4. d.
    Social media is the best channel for the B2B market.

Answer

A. Social media is highly targeted in its ability to reach segments of consumers who share common interests and demographics.
An advantage of social media marketing is that companies can concentrate their promotional efforts on very specific groups of consumers who share common interests and demographics.

Knowledge Check 16.2.2 §16.2 source ↗

Which of the following is a challenge that marketers face when using social media marketing?
  1. a.
    Social media marketing does not allow companies to target multiple audiences at the same time.
  2. b.
    Social media use is unpredictable, with users only logging in once or twice per week.
  3. c.
    Companies do not have control over the message.
  4. d.
    Social media does a poor job of driving traffic to websites.

Answer

C. Companies do not have control over the message.
Lack of control over the message is a challenge for social media marketers. Consumers who are dissatisfied with the company can use social media to make negative comments that could hurt brand reputation.

Knowledge Check 16.2.3 §16.2 source ↗

Which of the following is a characteristic of a good mobile strategy?
  1. a.
    Mobile websites should have a responsive design so visitors have a good user experience.
  2. b.
    Emails should be sent to consumers on a weekly basis in order to stay engaged with mobile users.
  3. c.
    Avoid using push notification features to avoid overcommunicating with your users.
  4. d.
    Measure whether or not a mobile device user has seen a push notification.

Answer

A. Mobile websites should have a responsive design so visitors have a good user experience.
An important element of a good mobile strategy is ensuring that your website has a responsive design. Simply put, this means ensuring that menus and content are easy to read and that the user has a good experience on the site regardless of the device.

Knowledge Check 16.2.4 §16.2 source ↗

When a company’s website adapts to whatever screen consumers are using and users don’t need to pinch, expand, or scroll the screen to view content, this is known as ________.
  1. a.
    website design
  2. b.
    responsive marketing
  3. c.
    content marketing
  4. d.
    responsive web design

Answer

D. responsive web design
Responsive web design is a website development approach that results in a website’s display dynamically changing to adapt to whatever device a consumer uses. This approach is important to ensuring that consumers have a good user experience regardless of the device they are using.

Knowledge Check 16.2.5 §16.2 source ↗

Which of the following represents a challenge for mobile marketing?
  1. a.
    Mobile device usage is on the decline.
  2. b.
    It’s challenging to measure mobile marketing campaigns.
  3. c.
    Responsive design is difficult to implement.
  4. d.
    People are using email less and less.

Answer

B. It’s challenging to measure mobile marketing campaigns.
Measuring mobile campaigns can be challenging because it’s difficult to measure whether a consumer has seen a push notification or in-app message.

Knowledge Check 16.3.1 §16.3 source ↗

Which of the following best describes why online marketing metrics are important?
  1. a.
    Online marketing metrics help marketers understand whether or not their products and services create value for consumers.
  2. b.
    Online marketing metrics are an important part of understanding the factors that influence consumer behavior.
  3. c.
    Online marketing metrics help marketers measure the effectiveness of marketing managers.
  4. d.
    Online marketing metrics help marketers measure the performance of their online marketing campaigns.

Answer

D. Online marketing metrics help marketers measure the performance of their online marketing campaigns.

Knowledge Check 16.3.2 §16.3 source ↗

An online automotive magazine is running a social media campaign to increase paid subscriptions. Which of the following would be an example of a conversion on its website given the campaign’s goal?
  1. a.
    A visitor uses the search tool on the website to search “vintage European cars.”
  2. b.
    A visitor enters their email address to receive updates.
  3. c.
    A visitor enters their payment information and contact information and clicks on “place order.”
  4. d.
    A visitor downloads the app on their mobile phone.

Answer

C. A visitor enters their payment information and contact information and clicks on “place order.”
Because the goal of the campaign is to increase paid subscriptions, a visitor who enters their payment information and contact information and clicks “place order” would be a conversion.

Knowledge Check 16.3.3 §16.3 source ↗

The Warton Hotel is running an online marketing campaign and would like to measure the percentage of people who only visit its site one time. Which online marketing metric would be most helpful to the hotel in this situation?
  1. a.
    Counting new and returning customers who visit the site
  2. b.
    Counting page views
  3. c.
    Examining the bounce rate
  4. d.
    Counting unique users

Answer

C. Examining the bounce rate
The bounce rate measures the percentage of times visitors leave your site after visiting only one page.

Knowledge Check 16.3.4 §16.3 source ↗

Which of the metrics could be used to measure the performance of a social media campaign?
  1. a.
    Social engagement
  2. b.
    Page views
  3. c.
    Bounce rate
  4. d.
    Cost per click

Answer

A. Social engagement
Social engagement relates to the actions that users take when they engage with content on social media. Online marketers measure clicks, likes, shares, and comments to help online marketers assess the quality of their content.

Knowledge Check 16.3.5 §16.3 source ↗

Jax’s Sushi House wishes to compare DoorDash’s and Google’s performance in driving traffic to the restaurant’s website. Which of the following explains why Jax’s Sushi House wants to compare sources?
  1. a.
    Measuring traffic by source provides insight to online marketers about the effectiveness of sources that best drive traffic to a company’s website.
  2. b.
    Measuring traffic by source allows marketers to measure the effectiveness of the online shopping cart experience.
  3. c.
    Online marketers can determine the effectiveness of their home page by examining traffic by source.
  4. d.
    Evaluating traffic by source means looking at the total numbers of visitors to a website and comparing it to the total number of visitors from a source.

Answer

A. Measuring traffic by source provides insight to online marketers about the effectiveness of sources that best drive traffic to a company’s website.
Jax’s Sushi House will learn which source is more effective at driving traffic to the restaurant’s website.

Marketing Dashboard 16.3 §16.3 source ↗

Table 16.1 in the book ↗
Campaign Total Campaign Cost Number of Clicks
Dog Food $12,000 18,100 clicks
Cat Food $10,000 20,200 clicks
Aquariums $7,000 19,050 clicks
Bird Feeders $5,500 5,000 clicks

As a consumer, have you ever wondered why you see certain advertisements on social media but not others? The answer is targeted advertising. Targeted advertising allows marketing professionals to specify a target audience of their choosing. For example, you may see advertisements for winter boots if you have recently initiated a search with those terms. At the same time, a friend might see advertisements for winter tires for the same reason.

Targeted advertising can be expensive because it is tailored to a marketer’s exact specifications. Therefore, marketing professionals calculate the cost every time a prospective customer clicks on a targeted ad through their website. This cost-per-click metric shows us how much the marketing professional pays every time a prospect clicks on an ad.

Cost per click has a role in search engine marketing as well. For example, if our advertisement is served up on a search engine results page (SERP) and a prospective customer clicks on that advertisement, the marketing team must pay the search provider.

As savvy marketers, we know that not every click results in a purchase. So, we have to be careful not to invest more in clicks than our profitability allows. We also need to consider the average revenue and profit per order and the customer lifetime value when determining the efficacy of a targeted advertising campaign.

The formula for cost per click is the total cost for the digital campaign/number of clicks.

Cost per Click=Total Cost of Digital CampaignNumber of Clicks

Give the cost-per-click calculation a try for yourself. What is the cost per click of each of the four campaigns for a pet store?

Answer

Dog food: $0.66/click

Cat food: $0.50/click

Aquariums: $0.37/click

Bird feeders: $1.10/click

Marketing Dashboard 16.3 (b) §16.3 source ↗

Table 16.1 in the book ↗
Campaign Total Campaign Cost Number of Clicks
Dog Food $12,000 18,100 clicks
Cat Food $10,000 20,200 clicks
Aquariums $7,000 19,050 clicks
Bird Feeders $5,500 5,000 clicks

As a consumer, have you ever wondered why you see certain advertisements on social media but not others? The answer is targeted advertising. Targeted advertising allows marketing professionals to specify a target audience of their choosing. For example, you may see advertisements for winter boots if you have recently initiated a search with those terms. At the same time, a friend might see advertisements for winter tires for the same reason.

Targeted advertising can be expensive because it is tailored to a marketer’s exact specifications. Therefore, marketing professionals calculate the cost every time a prospective customer clicks on a targeted ad through their website. This cost-per-click metric shows us how much the marketing professional pays every time a prospect clicks on an ad.

Cost per click has a role in search engine marketing as well. For example, if our advertisement is served up on a search engine results page (SERP) and a prospective customer clicks on that advertisement, the marketing team must pay the search provider.

As savvy marketers, we know that not every click results in a purchase. So, we have to be careful not to invest more in clicks than our profitability allows. We also need to consider the average revenue and profit per order and the customer lifetime value when determining the efficacy of a targeted advertising campaign.

The formula for cost per click is the total cost for the digital campaign/number of clicks.

Cost per Click=Total Cost of Digital CampaignNumber of Clicks

What additional information would we need to know to determine whether the cost per click for each product is a good investment?

Answer

Average revenue and profit per order, percentage of people who click through who make a purchase, and/or customer lifetime value

Marketing Dashboard 16.3 (c) §16.3 source ↗

Table 16.1 in the book ↗
Campaign Total Campaign Cost Number of Clicks
Dog Food $12,000 18,100 clicks
Cat Food $10,000 20,200 clicks
Aquariums $7,000 19,050 clicks
Bird Feeders $5,500 5,000 clicks

As a consumer, have you ever wondered why you see certain advertisements on social media but not others? The answer is targeted advertising. Targeted advertising allows marketing professionals to specify a target audience of their choosing. For example, you may see advertisements for winter boots if you have recently initiated a search with those terms. At the same time, a friend might see advertisements for winter tires for the same reason.

Targeted advertising can be expensive because it is tailored to a marketer’s exact specifications. Therefore, marketing professionals calculate the cost every time a prospective customer clicks on a targeted ad through their website. This cost-per-click metric shows us how much the marketing professional pays every time a prospect clicks on an ad.

Cost per click has a role in search engine marketing as well. For example, if our advertisement is served up on a search engine results page (SERP) and a prospective customer clicks on that advertisement, the marketing team must pay the search provider.

As savvy marketers, we know that not every click results in a purchase. So, we have to be careful not to invest more in clicks than our profitability allows. We also need to consider the average revenue and profit per order and the customer lifetime value when determining the efficacy of a targeted advertising campaign.

The formula for cost per click is the total cost for the digital campaign/number of clicks.

Cost per Click=Total Cost of Digital CampaignNumber of Clicks

Let’s suppose that Najja found our pet store website on a targeted ad, clicked through, and placed a $70 order for bird feeders that had a 10 percent profit margin for our pet store. Was the click-through rate a good investment?

Answer

Yes. The pet store profited $7 on the single purchase at a click-through rate of just $1.10. In addition, Najja may purchase more in the future, making the click-through rate an even better investment.

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Problems and answers are adapted from Principles of Marketing by Maria Gomez Albrecht, Mark Green and Linda Hoffman, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.