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Managing Digital Communications: Online, Social Media, and Mobile

In this chapter, we will address the following questions:

  • 1. What are the pros and cons of online marketing? (Page 275)
  • 2. How can companies carry out effective social media campaigns? (Page 277)
  • 3. What are some tips for enjoying positive word of mouth? (Page 278)
  • 4. What are important guidelines for mobile marketing? (Page 280)

Marketing Management at PepsiCo

PepsiCo has been an early champion of digital marketing. For its Mountain Dew soft drink, its first “Dewmocracy” contest had consumers go online to determine the flavor, color, packaging, and name of a new Mountain Dew product. The winning flavor, Voltage, generated several hundred million dollars in revenue for the company in its first year. For its Doritos brand, PepsiCo runs the annual “Crash the Super Bowl” contest, giving contestants a chance to develop an ad to be run during the game broadcast and win $1 million. In 2014, anyone from Doritoss 35 global markets was allowed to enter the competition. The winning ad, “Time Machine,” cost only $200 to make and one day to film, but it was one of the most positively received Super Bowl ads by viewers that year. During the contest, Doritos always enjoys a healthy uptick in Twitter, Facebook, and other social media activity.1

The newest and fastest-growing channels for communicating and selling directly to customers are digital, providing opportunities for greater interaction and individualization. Companies like PepsiCo are asking not only “How should we reach our customers?” but also “How should our customers reach us?” and “How can our customers reach each other?” In this chapter, we consider how marketers can use online marketing, social media, and mobile marketing to create loyal customers, build strong brands, and generate profits. We also consider the broader topic of word-of-mouth marketing.

 
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