D373 Marketing in the Digital Era

Explanation

Dynamic retargeting is a sophisticated form of online advertising where ads are tailored in real time based on an individual user’s prior interactions with a website or app. For example, if a user browsed specific products but did not purchase, dynamic retargeting can show ads featuring those exact items or related products, thereby increasing the likelihood of conversion.

Correct Answer

Dynamic retargeting utilizes real-time data to personalize and display ads based on a user's past online behavior.

Why Other Options Are Wrong

Dynamic retargeting involves displaying the same generic ad to all users who visited a website.

This describes standard retargeting, not dynamic retargeting, which uses individualized content rather than generic ads.

Dynamic retargeting is a static advertising approach, where the content remains constant regardless of user behavior.

Dynamic retargeting is inherently dynamic, adjusting content based on user activity, making this statement incorrect.

Dynamic retargeting is exclusively focused on targeting new users who have not interacted with the website previously.

Retargeting specifically targets users who have already shown interest or interacted with the site, not new users.

Dynamic retargeting relies on fixed algorithms that do not adapt to changes in user preferences.

The process depends on adaptive, real-time algorithms that adjust to current user behavior, not fixed methods.

Explanation

Word-of-mouth marketing thrives when satisfied customers share their positive experiences. The restaurant can amplify this effect by actively engaging with happy customers—thanking them for their reviews, encouraging them to spread the word, and perhaps offering referral incentives such as discounts or loyalty rewards. This approach builds trust, strengthens customer relationships, and attracts new patrons based on authentic recommendations rather than traditional paid advertising.

Correct Answer

By encouraging satisfied customers to share their experiences and offering incentives for referrals.

Why Other Options Are Wrong

By ignoring the reviews and focusing on traditional advertising.

This wastes an organic opportunity to expand reach and credibility through genuine customer endorsements.

By only responding to negative reviews.

While addressing negative feedback is important, ignoring positive reviews misses the chance to strengthen positive word-of-mouth.

By reducing the quality of food to cut costs.

Lowering quality damages the very experiences that drive positive reviews and repeat business.

Explanation

For a local bakery, local SEO is crucial to ensure that people searching for baked goods nearby can easily find them. Optimizing the website with location-specific keywords such as “fresh bread in [city]” and maintaining an accurate Google My Business profile helps the bakery appear in local search results and on Google Maps. This approach directly targets customers in the area who are ready to purchase.

Correct Answer

Optimizing their website with local keywords and Google My Business

Why Other Options Are Wrong

Creating a blog about baking recipes

While blogging can boost SEO, a recipe blog without local keywords does little to improve local search visibility for customers seeking a nearby bakery.

Using generic keywords like 'food' and 'treats'

Generic keywords are highly competitive and too broad, making it difficult for the bakery to stand out to local customers.

Posting daily on social media without a website

Social media can increase engagement, but without a properly optimized website, it won’t significantly improve search engine rankings or visibility in local searches.

Explanation

In marketing, a channel refers to the specific platforms or routes a business uses to reach and communicate with its target audience. Examples include email, social media, websites, and paid advertising. Channels facilitate the delivery of marketing messages across different stages of the customer journey, from awareness to purchase and beyond. Unlike a strategy, which is the overarching plan, or a segment, which is a portion of the market, a channel is the actual medium through which communication occurs.

Correct Answer

Channel

Why Other Options Are Wrong

Touchpoint

A touchpoint is an individual interaction between a customer and a brand, such as a customer service call or a website visit, not the broader method or platform used to deliver messages.

Strategy

Strategy refers to the overall plan or approach to achieving marketing objectives, not the specific mediums for communication.

Segment

A segment is a distinct group of customers within a market who share similar characteristics, not the platform or method of delivering marketing communications.

Explanation

The advertising model where the advertiser pays only when a user clicks on the advertisement is known as pay-per-click. PPC is commonly used in search engine advertising, such as Google Ads, where businesses bid on keywords and pay only when their ad receives a click. This method ensures that advertisers are charged for measurable engagement rather than for impressions or other actions, making it cost-effective for driving traffic directly to a website.

Correct Answer

PPC

Why Other Options Are Wrong

PPA

Pay-per-action (or pay-per-acquisition) requires payment when a specific action occurs, such as a purchase or sign-up, rather than simply for a click. This goes beyond the scope of paying only when a user clicks on the ad.

CPM

Cost per thousand impressions (mille) charges advertisers based on the number of times an ad is displayed, not on the number of clicks. It measures exposure rather than direct user interaction.

CPI

Cost per install is primarily used in app marketing, where advertisers pay when users install an application. This is not the same as paying per click on an ad.

CPE

Cost per engagement requires payment when a user engages in a specific interaction, such as liking, sharing, or commenting on an ad. It differs from paying solely for clicks.

Explanation

Email newsletters and social media ads are highly effective digital tools for engaging potential customers. Newsletters allow the bakery to share promotions, new products, and personalized updates directly with subscribers, while social media ads target specific demographics and local audiences. Together, these methods provide measurable results, cost efficiency, and interactive opportunities that traditional advertising methods cannot match.

Correct Answer

Email newsletters and social media ads

Why Other Options Are Wrong

Billboards and flyers

These are traditional, not digital, marketing tools and lack the targeted reach and analytics of online campaigns.

Television commercials

TV ads can be costly and less targeted compared to digital options, making them less efficient for a small local business.

Direct mail campaigns

While direct mail can reach local customers, it lacks the immediacy, interactivity, and data-driven targeting of digital marketing tools.

Explanation

Influencer marketing is a strategy in which businesses collaborate with individuals who have established credibility and a substantial following on social media or other digital platforms. These influencers promote products or services to their audiences, leveraging their trust and reach to increase brand awareness and drive sales. The defining feature is the paid partnership where influencers share authentic endorsements with their followers.

Correct Answer

Companies pay influencers to promote products to their social media followers.

Why Other Options Are Wrong

Companies influence people to purchase their products via flyers.

Using flyers is a traditional form of marketing and does not involve digital influencers or their audiences.

Companies influence friends and relatives of existing customers to purchase a product.

This describes word-of-mouth or referral marketing, which relies on customers recommending products, not influencer partnerships.

Companies try to be influential in the marketplace.

While many companies aim to be influential, this is a general business goal and not the specific practice of influencer marketing.

Explanation

Social media marketing is a branch of digital marketing focused on promoting products, services, or brands using social media networks such as Facebook, Instagram, X (Twitter), or LinkedIn. It includes creating and sharing content, running paid advertisements, and interacting with users to build brand awareness and drive engagement. While maintaining profiles and monitoring activity are important components, the key goal is promotion and engagement.

Correct Answer

The process of promoting products and services through social media platforms

Why Other Options Are Wrong

The process of creating and maintaining social media profiles for a business

This describes account management rather than the broader promotional strategies and campaigns that define social media marketing.

The process of monitoring social media activity for a business

Monitoring is a supporting activity (social listening), but by itself it is not social media marketing, which focuses on active promotion and engagement.

The process of conducting market research through social media

This relates to social media analytics or research, not the marketing activities aimed at promoting products or services.

Explanation

Search Engine Optimization (SEO) is the practice of improving a website’s structure, content, and technical elements so that it ranks higher in search engine results. By optimizing keywords, meta tags, site speed, and other factors, SEO increases the likelihood that a page appears prominently when users search for relevant information. The goal is to enhance visibility and drive organic traffic from search engines like Google or Bing.

Correct Answer

Search engine Optimization (SEO)

Why Other Options Are Wrong

Meta-descriptions

Meta-descriptions are short summaries of a webpage that appear in search results, but they are only one component of SEO, not the full process of ranking pages higher.

Search engine results pages (SERPs)

SERPs are the actual pages displayed after a user submits a query, not the process of improving a website’s ranking within them.

Content management system

A content management system (CMS) is software used to create and manage digital content, which can assist SEO efforts but is not the process of ranking pages higher.