Introduction to Mobile Marketing

Mobile marketing is set apart from other marketing

strategies by its hyper-context personalized targeting. In
other words, marketers can design and deliver highly relevant and
personalized mobile targeting content through mobile channels
(SMS, in-app, and push notifications) based on the instantaneous
customer context of location, time, environment, companion, and
dynamic competition.

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 Moreover, mobile devices integrate digital experience with offline behaviors,
exposing new business opportunities. The success of the sharing economy
depends largely on the prevalence of mobile usage.
• Uber, as a pure mobile app, satisfies real time riding requests with dynamic
pricing and optimal route assignment.
• Mobike, a sharing bike company in Asia, fulfills commuters’ last-mile gap
needs by making shared bikes available near users through mobile geo-
tracking data. Each bike is equipped with a smart lock, which enables riders
to simply scan the QR code on the bike to unlock it and enable pedaling.
• all major commercial banks in the U.S. now promote mobile payment apps
because an increasing number of customers are adopting mobile wallets for
convenience.

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 Mobile Marketing Mix

Mobile marketing extends the traditional marketing

mix by introducing a central piece of
personalization. (See figure on next slide)

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 Mobile Marketing Mix

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 Mobile Product

• Mobile products include both hardware mobile devices and virtual mobile
applications and are rapidly transforming into digital services to satisfy
customers’ personal needs through m-commerce, mobile apps, mobile
social, mobile streaming, mobile wallet, and virtual assistants. M-commerce
is an emerging business model wherein business communications and
activities are conducted on mobile devices, and it provides customers with
the flexibility of any-time, any-place access to browse products and make
purchases
• New mobile platforms combining social elements with streaming content
have attracted considerable popularity and a significant number of
downloads. The Vblog app TikTok rose to No. 2 in app downloads with more
than 30 million active users in the U.S. within 3 months of its debut.

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 Mobile Chanel

• Mobile place Mobile channels represent not only a medium for information
delivery (i.e., SMS, in-app ad, push notification, live streaming, and smart
speakers) but also include the dynamic interactions when customers use
mobile services and products in the physical world for information search
and purchases.
• On the one hand, the ubiquity of mobile devices in brick and mortar stores
enables customers to easily access product information and explore
promotions.
• Marketers have a better access to customers’ purchase intent with mobile
search and trajectory data when they travel in the store, offering ample
opportunities to target in-store shoppers for product browsing and impulsive
purchases. Thus, mobile channel is becoming a hub across digital channels
and physical locations.

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 Mobile Channel (Research Perspective)

• Customer interactions with mobile channels also affect physical

shopping behaviors.
• Ui et al. (2013) conducted a field experiment at a grocery store and
empirically tested the relationship between in-store travel distance
and unplanned purchases. They found that sending a mobile
coupon that requires customers to travel a longer distance from their
planned path resulted in a significant increase in unplanned
spending.
• Grewal et al. (2018) used eye-tracking technologies in their studies
to identify mobile usage during the shopping process and showed
that mobile usage at stores lead to higher overall spending. They
proposed that mobile usage was a distraction for shoppers, resulting
in more time spent in-stores to browse products and check prices in
nonconventional shopping paths.

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 Social and Mobile Marketing

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 The 4E Framework For Social Media

http://www.youtube.com/watch?v=ah8aHIsAJfc

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 Excite the Customer

Offer must be relevant

to its targeted
customer.

Relevancy can be
achieved by providing
personalized offers.

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 Educate the Customer

Golden opportunity:
Product’s value proposition and
offered benefits

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 Experience the Product or Service

Information about a
firm’s goods and
services.

Simulating real
experiences.

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 Engage the Customer

Action, loyalty, and

commitment

Positively engaged
consumers lead to more
profitability.

Engagement can also

backfire.

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 PROGRESS CHECK (1 of 2)

1. What are the 4 Es?

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

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 The Wheel of Social Media Engagement

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 The Information Effect

Outcome in which relevant information is spread

by firms or individuals to other members of the
social network

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 The Connected Effect

Outcome that satisfies humans’ innate need to

connect with other people

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 The Network Effect

Outcome in which every post is spread

instantaneously across social media

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 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.

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 The Timeliness Effect

Firms must engage with the customer at the right

place and time

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 PROGRESS CHECK (2 of 3)

1. What are the five drivers of social media

engagement described in the Wheel of Social
Media Engagement?

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 Categories of Social Media

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 Social Network Sites

Excellent way for

marketers to create
excitement
– Facebook
– LinkedIn
– Google+

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 Media-Sharing Sites

Highlight Encourage
how consumers
consumers to engage
can
experience

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 Thought-Sharing Sites

Blogs
– Corporate blogs
– Professional blogs
– Personal blogs

Microblogs
– Twitter

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 Going Mobile and Social

Need for Me Time

Need to Socialize
Need to Shop
Need to Accomplish
Need to Prepare
Need to Discover
Need to Self-Express

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 App Pricing Models

Ad-supported apps

Freemium apps

Paid apps

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 PROGRESS CHECK (3 of 3)

1. What are the seven types of customer

motivations for using mobile apps?
2. What are the four options to price mobile apps?
3. What are some of the most popular types of
mobile applications?

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 How to Do a Social Media Marketing
Campaign

1. Identify strategy goals

2. Target audience

3. Campaign: experiment and engage

4. Budget

5. Monitor and change

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