CAM DIPLOMA IN DIGITAL MARKETING. Communications Advertising and Marketing Education Foundation (CAM) Example Materials LESSON 3.

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1 LESSON 3 Hardware e-tools

2 Hardware e-tools By the end of this lesson you should be able to: Describe Hardware e-tools available: Mobile or handheld devices: mobile phones, laptops, two-way radios, PDAs and pagers Fixed appliances: phones; desktop computers, TV, radio, kiosks A world gone mobile According to Nielson Wire, the average teenager sends or receives 3,339 text messages per month. Thankfully many of these will be free! This connectedness is fuelled of course by the mobile phone and, increasingly, Tablets too. Each year, the onslaught of Christmas fuels a significant increase in shopping activity across the world. Mobile and Tablets cannot be ignored. Have a look at the following research to see why this is. According to research conducted by Pew Internet in the USA, Tablet, sales increased dramatically for Christmas This increase in sales of course drives up digital behaviour too. Take a look at the results. Think carefully what are the implications? Ownership of Tablet computers almost doubled (from 10% to 19%) between mid-december 2011 and early January In this time frame, competitive strategies were at play too, as e-readers, such as Amazon s Kindle Fire and Barnes & Nobles Nook were offered at much lower prices (under $100) than other Tablets. Interestingly this fuelled Americans owning more than one device (e-reader and Tablet), with sales jumping from 18% to 29% for Americans who owned a least one digital reading device over the Christmas/New Year period. For Tablets, there were no major differences between gender for ownership (both 19%) as at mid-jan However there were differences by income and age group: Of those households whose earnings were over $75,000, 36% owned a tablet, versus 20% for those earning $50,000-74,999 and 16% for $30,000-$39,999. So the most significant purchasers were high net worth individuals who bought into Tablet technology Contrast this with the age profiles of ownership and you find some interesting trends, with 27% of those aged years old owning a tablet, followed by 24% of years old and then 16% of those aged acquiring them too. This could reflect that a number of high earners were buying them as gifts for family / household members Comparing the results from November 2010 to January 2012 inclusive, across all income and age groups, Tablet

3 ownership has more than trebled in every category The implications? Tablets offer a large screen size and web access, enabling more online searching, reading, browsing, seeking entertainment/fun and shopping. Given their size, even though Tablets are portable, Google research has found that most are used in the evenings. Useful for targeting, coupons and news updates in private or social time. Tablets are a third screen that customers use to gain access online. Fixed appliances (telephones, desktop computers, TV, radio, kiosks) tend to stay put, whilst mobile or handheld devices journey with the customer (mobile, laptop, two-way radio, personal digital assistants, pagers and of course Tablets). The purpose of Lesson Three is to explore the role of Hardware e-tools and how consumers and businesses view their role and usage. Google (Google Mobile Ads blog January 2012 and December 2011) comment that the mainstream consumer got mobilised in Key findings have identified that: 1. Mobile usage is complementary to desktop 2. More people look for deals on their way to the shops as well as when in-store too 3. Mobile queries (USA) were 200% higher in 2011 than in 2010 on Black Friday (the day after Thanksgiving) 4. Smartphones are being used to locate a business, compare prices in-store, visit an app and search online 5. The challenge: marketers need to speak mobile and therefore gain skills with mobile and online advertising techniques. Campaigns now need to work across several screens (desktop, mobile, Tablet) instead of just one. The advent of mobile does not mean the decline of all other tools, but the arrival of consumers ability to switch between devices. Whilst this is not effortless at the moment, it will soon become so. SO WHAT IS A SMARTPHONE? It is a very clever tool. It combines the benefits of mobile computing, personal digital assistant (contact address book, diary, reminders) with a mobile phone, camera, video camera, portable media player, high resolution touch screens and web access. Typically, smartphones are able to run third party applications (Apps) using advanced application programming interfaces (APIs). These Apps, which are often free or available at a nominal cost, allow you to download recipes, play games or for brands, allow a complete brand experience with a useful service. As Apps can be popular, they also benefit from a viral effect because smartphone users recommend and share Apps with friends, colleagues and family. This endorsement speeds adoption of the app and brings on additional customers and users, often at no additional cost to the App provider. Apps can be sponsored and can contain advertisements which fund their

4 creation too. The skill, of course, is to come up with an app that fuels users enthusiasm and encourages them to share with others. We need you to investigate your customer behaviour One of the key tasks you will be asked to complete in Lesson Three, is to identify when and how your customers are using Mobile and Tablets. In particular, try and find out what they are trying to do with these mobile tools, whether browsing, comparing prices or searching for store locations they can visit in person. Draw your customer s journey, marking which hardware tools they use, and when Map the journey from start to finish all the stages and contact points BUT only from the customer s perspective Start trigger Purchase What do they do /access along the way? Ongoing relationship tools? Ongoing relationship tools? Within Lesson Three, you will have access to an infographic (Nielsen) on mobile customer behavior - in particular look at what they use in the bath (yes, seriously!). This may help you gain ideas for behaviour that your customers may pursue too. What is an infographic? You will begin to notice that more and more companies are beginning to produce infographics. These are simply visual ways to display key findings or insights in a more engaging and accessible way. These findings tend to be snapshots of behaviour, changes in trends or ways to illustrate complex information in a simplified way. Given that we live in a visually driven era, icons help us to grasp information more quickly and to understand the underlying concepts being discussed. Have a think about whether infographics could be useful for your organisation. Check out the Nielsen infographic on the mobile web and how customers use their time with mobile devices. You will find this stored with Lesson Three slides on the Home Learning College VLC. In the online Lesson Three, there is also a useful table, which helps you diagnose the role of the fixed appliance or hardware tool. As you review this table, consider what your customer habits are now and think carefully about how they could change over the next twelve months.

5 A template is provided for you to compare and contrast your chosen hardware tool. HARDWARE TOOL CHOSEN IS: Advantages Disadvantages Plan ahead for Christmas and beyond Google research (based on findings over the last two years) has uncovered a triple peak around Christmas time. The peaks follow particular events in customers lives: Peak one end of November, representing the last salary before Christmas day Peak two the final countdown to Christmas day the critical final days approaching the event Peak three the start of the January sales How does this research impact on the UK? The research findings help us understand the impact of Mobile and Tablet on purchasing patterns. For retailers, many make the majority of their annual profits around Christmas time. The benefit to you and your market, whether business to business or business to consumer or not-for-profit or public sector, is to identify trigger events (such as Christmas) where buying behaviour can be influenced or may change. For example, annual conferences, industry exhibitions, seasonal events or trends. Think carefully about how your customers buy now and how it could change with the adoption of Smartphones and Tablets.

6 Key tips for Lesson Three Make sure you look out for: The different types of hardware e-tools mobile and fixed appliances Diagnose which hardware e-tools your customers use during purchase or interaction with your organisation Compare the advantages and disadvantages of different hardware tools and identify which offers the most relevant capability for building relationships with your customers or stakeholders online or on the move. Now it is time to go online and go through Lesson Three on the VLC. Do remember to complete the activity as requested at the end of Lesson Three on the VLC. You do not need to send this to your Tutor as we want you to use the findings from this activity in later assessments that you send for marking and feedback.

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