Chapter 16
Mobile Marketing and Related Developments
Learning Objectives:
By the time students complete this chapter they should be able to:
• Identify important concepts that apply to the adoption and diffusion of technological
innovations and the accelerating speed of their adoption.
• Describe the environment described as pervasive computing and explain changes it could
make in the way we live and work.
• Discuss the current status of mobile adoption in one or more countries around the world
and explain why penetration rates and usage behaviors differ between countries.
• Identify the strategic drivers of mobile technology and why they contribute to the
adoption of mobile.
• Discuss the channels of mobile marketing with special emphasis on the ones that are
unique to mobile.
• List the steps in developing a mobile marketing campaign.
• Discuss the role smartphones and mobile apps are playing in the world of mobile
marketing.
• Describe the uses of location-based and barcode marketing with special emphasis on their
relevance to small, local businesses.
• Explain the meaning and implications of digital convergence with emphasis on media
convergence.
Chapter Perspective
Those familiar with this chapter from the second edition will find it substantially changed. The
wireless world is moving so quickly that was necessary and you will likely want to do some
updating each time you teach it. For the first time there are examples of real mobile campaigns in
the U.S., but the most well-developed mobile marketing is still taking place in the E.U.,
Australia, and Asia as examples in the chapter show. Instructors in other countries should find it
easy to find good, current examples of campaigns in their own area—perhaps on their own smart
devices!
On that score, the attempt was to make the chapter device agnostic except for specific data and
campaign examples. The marketer needs to be thinking “mobile marketing,” not smart phones,
tablets or operating systems. The effort is about reaching the customer anywhere, any time, on
any mobile device.
As good general sources:
• comScore has a MobiLens product
http://www.comscore.com/Products_Services/Product_Index/MobiLens
• Nielsen has Mobile Measurement service
http://www.nielsen.com/us/en/measurement/mobile-measurement.html
• The Mobile Marketing Association is a global organization that has a wealth of resources
http://www.mmaglobal.com.
The theme of the chapter is laid out in the first paragraph: mobile is fast becoming the dominant
way to access the Internet—faster in some developing countries where access to the wired
Internet is not widely available, more slowly in countries like the U.S. where desktop/laptop
usage is deeply ingrained, but it is becoming dominant.
That will change the way marketers do their work and that, and its corollary, media convergence,
is the theme of this chapter.
Consumer Adoption of Technology Innovations
Students should recall the concept of the consumer adoption process from their introductory
marketing course and perhaps from others. It does, however, have a final stage that is not always
included. The internalization stage is especially important in the case of innovative products,
and that includes most electronics, that take some learning on the part of customers in order to
achieve a satisfactory use experience. Adding this stage stresses the importance of customer
support, especially in the time immediately following purchase, to ensure that successful learning
takes place. Marketing all complex electronics products can benefit from emphasis on this final
step. Students probably need to be walked through this process step by step with a brief example
of how it might take place in an Internet-relevant purchase.
This concept of product factors that promote adoption is also likely to represent a review, but
perhaps less likely to be remembered than the first two concepts. Again, it would probably be
useful to walk through the factors briefly giving students, or asking them to give, a brief example
of a product that has the features. Software is a good example, because all the factors apply.
They need to have relative advantage and to be compatible with existing systems. Most are
complex, especially business applications that require integration with existing systems.
Complex products like CRM software often come in literally dozens of modules. The virtual
demonstrations that are part of most software sites are a good example of communicability.
Figure 16.2 is a recent chart chronicling the speed of adoption of technology innovations. The
speed of all the newer innovations, the Internet, PCs, and Cellular is astonishing. Where will it
run out of steam? Not with iApple products it seems. The text chronicles the first generation of
2. It requires collaboration across scientific and technical disciplines.
3. The traditional concept of intellectual property is being questioned. It needs to evolve
from being a possession that is hoarded to being a productive asset that is invested or
even shared to encourage further progress.
Those are all powerful statements. Number 3 is particularly challenging, especially because it
Table 16.1 sets forth the dimensions of the pervasive environment according to the “6 As” of
pervasive computing. Encourage students to pay special attention to the Marketer Requirements
column. These are all changes in the way marketing is done—some evolutionary, ones like
consumer-initiated and many small transactions may be revolutionary.
The next section makes the point that mobile is becoming dominant and gives statistics to
support that view, most of which will be out of date by the time you read this. The resources
listed at the beginning of the chapter and/or a quick search will provide updates. We will post
items of general interest on the Google+ page for the text when we find them.
Global examples of mobile marketing campaigns are:
• The Discovery Channel/Tourism Australia tour is a creative matching of message and
execution. Unfortunately we couldn’t get permission of use the image of Paul Sr., Paul
Jr., and Mikey because they are quite adorable. You can get an image at
http://communicator.com.au/case-studies.html. While you are doing it, look at a site that
is highly creative and visually beautiful but hard to use.
• The J&J Hong Kong campaign is a great example of the precise targeting available to
marketers who plan and execute with care, and the metrics suggest a successful outcome.
• The English National Opera example demonstrates success in an area that is challenging
to opera companies throughout the world—attracting younger patrons. We didn’t get
permission to use an image of the app, apparently because they were phasing it out. They
are active in social media including Internet radio, but apparently didn’t continue with the
app. Wonder why? They do have some apps in a channel called Electric Ears
1. Who are the customers and where are they accessing content?
2. What attitudes do members of the target audience hold about our brand?
3. What message will be compelling?
4. When to send messages and how often?
5. What action do we want the mobile user to take?
6. What metrics will be used to measure the success of the campaign?
16.10 and the commercial use (note MSLO again!) in Figure 16.11. We couldn’t resist a promo
of our own in Interactive Exercise 16.2. The codes tend to work over several transfers from one
medium to another, but they don’t work on PPT, so be warned if you want to use them in class!
You and or your students are probably users of the scanner and shopping apps needed to use QR
codes and this is another good place to ask for experiences.
NFC codes are likely to be less well known but with powers like Google behind their use, that
may soon change. Keep an eye on developments in mobile wallets which will use NFC
technology.
Podcasting is mentioned briefly to wrap up this section. It has become almost an afterthought for
most marketers, although some who have established an audience continue to use it effectively.
Industry Self-Regulation
This is a brief but important section. It highlights the work of the Mobile Marketing Association
to establish rules of the road for mobile marketers worldwide. They are based on the Fair
Information Practices Principles (Chapter 15):
• Notice
• Choice and consent
• Customization and constrains
• Security
• Enforcement and accountability
These are industry guidelines. Another global principle holds true. The U.S. favors self
regulation; the E.U. and other countries have or are considering legislation regulating, in
particular, mobile commerce.
Digital Convergence
Digital convergence is no longer discussed in terms of one big appliance that would deliver all
services, especially to the household. What has converged is media. How many times has the
ungrammatical term “repurpose” been used in this text, for example? People want content
wherever they are on whatever device is handy at the moment. Media channels have to be
interchangeable in use, even if not in technology.
The Convergence Center at Syracuse University provides this definition:
“Digital convergence” refers to the profound changes in the structure of media caused by
the emergence of digital technologies as the dominant method for representing, storing,
and communicating information. In the past, information and communication
technologies were segmented into discrete economic and technical systems with minimal
capabilities for interoperability.
No explicit mention of devices here!
As far as marketers are concerned, the best conceptualization may be SoLoM, the acronym
supposedly invented by venture capitalist John Doerr of Kleiner Perkins Caufield & Byers. It
describes the convergence of Social, Local, and Mobile to be a single powerful social force and a
key driver for marketing at the moment. KPCB doesn’t permit the use of their graphic, so I had
to make my own. The orange “implications” boxes in Figure 16.13 have been discussed at
various points in this chapter. So have devices and the challenges for marketers in the
“integrating” bars at the bottom. What most commentators seem to miss is the role of search in
this ecosystem. While we may have a few favorites marked and while we may get notifications
of various types, search is at the heart of finding out what is going on where, and which of your
friends are participating. Search, once again, may be the trigger for a SoLoMo activity by a
person or a group.
This point is well made in this graphic, really aimed at marketers, not dummies!
http://socialcommercetoday.com/solomo-for-dummies-chart It suggests some of the
opportunities inherent in some of the major platforms and this is something else that is in its
early stages. The next big thing? Probably—for the moment at least!
1. Explain your understanding of what mobile marketing is and what role it can play in
marketing campaigns.
2. Discuss the concepts of the adoption and diffusion of technology products. Why is the
diffusion process becoming increasingly rapid over time?
3. Do you believe that mobile will become the dominant type of Internet marketing? Why
or why not?
4. What are the strategic drivers of mobile marketing? Why is each important?
5. Mobile marketing content is comprised of various types of media and the corresponding
delivery channels. What are the channels by which mobile content can be delivered?
6. True or False: Receptivity to mobile marketing efforts can be effectively predicted by
knowing the age of the target audience? Discuss your reasoning.
7. Why are smartphones and tablets such an important enabler for mobile marketing?
8. What is a mobile app? Why are mobile apps so important in mobile marketing?
PC Magazine defines an application as “software that is used for business or entertainment.”
That is simple, straightforward and it captures the essence of an app. Create apps that are meant
for use on mobile devices and you have it.
You can illustrate the importance by thinking about what was on the smartphone when you (or
one of your students) first purchased it. There was an operating system and a few apps—supplied
by the device makes, the OS maker, or strategic partners.
After a few weeks or months of use, how many apps are there now? Many more. The number
9. What are some of the uses of location-based mobile marketing?
10. Why do you think couponing sites have become so popular? Do you use any of them?
Why and for what purposes?
11. How can small retailers participate in mobile marketing?
12. What is the difference between QR codes and NFC? Give an example of the use of each.
13. What is meant by digital convergence?
14. Do you expect media convergence to continue to become even more important over the
next few years?
2. Three mobile marketing campaigns—Discovery Channel, Johnson & Johnson, and
ENO—are discussed in this chapter. Dissect the use of media in these campaigns.
Discuss the way in which other Internet and traditional media can be used to enable
and support mobile marketing campaigns.
Discovery Channel/Tourism Australia:
3. Select a B2C, B2B, or nonprofit organization, business, or brand of your choice. Outline
a mobile marketing campaign following the process portrayed in Figure 16.5. (Hint:
1. Who are the customers and where are they accessing content?
2. What attitudes do members of the target audience hold about our brand?
3. What message will be compelling?
4. When to send messages and how often?
5. What action do we want the mobile user to take?
6. What metrics will be used to measure the success of the campaign?
4. Take an inventory of the apps on your own smart device or someone else’s. Even better
do both. Discuss the use of the apps and the impact they have on your lifestyle and
activities. Compare your usage to someone else’s if you are able and draw marketing
implications from the similarities and differences.
This would be a fun exercise because the apps are quite revealing. You could broaden it by
devices and networks.
embedded device device, often a microchip, that becomes part of another device, rendering
various services, often doing so without human intervention.
interoperability the ability to exchange information between different operating platforms.
location-based service content that is delivered based on the user’s current location.