Page 272 - Foundations of Marketing

Digital Marketing and Social Networking | Chapter 9 239

mobile marketing strategy, the company experienced a 20 percent boost in mobile site jumps
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per month. Another application that marketers are fi nding useful is the QR scanning app. QR
codes are black-and-white squares that sometimes appear in magazines, posters, and store-
front displays. Smartphone users who have downloaded the QR scanning application can open
their smartphones and scan the code, which contains a hidden message accessible with the
app. The QR scanning app recognizes the code and opens the link, video, or image on the
phone’s screen. Marketers are using QR codes to promote their companies and offer consumer
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discounts.
Mobile technology is also making inroads in transforming the shopping experience.
Not only can shoppers use mobile applications to compare prices or download electronic
discounts, they can also use mobile applications to tally up purchases and pay through
their smartphones. As mobile payments gain traction, companies like Google are
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working to seize this opportunity. Google Wallet is a mobile app that stores credit card
information on the smartphone. When the shopper is ready to check out, he or she can tap
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the phone at the point of sale for the transaction to be registered. The success of mobile
payments in revolutionizing the shopping experience will largely depend upon retailers
to adopt this payment system, but companies like Starbucks are already jumping at the
opportunity. Since an estimated 70 percent of U.S. consumers will own smartphones
by 2014, businesses cannot afford to miss out on the chance to profit from these new
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trends.
Widgets are small bits of software on a website, desktop, or mobile device that enable
users “to interface with the application and operating system.” Marketers might use widgets
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to display news headlines, clocks, or games on their webpages. Widgets have been used by
companies like A&E Television Network as a form of viral marketing—users can download
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the widget and send it to their friends with a click of a button. Widgets downloaded to a user’s
desktop can update the user on the latest company or product information, enhancing relation-
®
ship marketing between companies and their fans. For instance, Krispy Kreme Doughnuts widgets Small bits of software
®
developed a widget that alerts users when their Original Glazed doughnuts are hot off the on a website, desktop, or
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oven at their favorite Krispy Kreme shop. Widgets are an innovative digital marketing tool mobile device that enable users
to personalize webpages, alert users to the latest company information, and spread awareness to interface with the application
of the company’s products. and operating system

Emerging Trends

Mobile Payments Change the Relationship between Retailer and Customer

Carrying around a wallet may soon be a distant memory. and their customers. All the necessary aspects, such as
Mobile payments have become an innovation that has filling out card information, are completed at home before
progressively gained traction in the small business arena stepping into the store. When ready to pay, consumers
and is set to gradually reach larger corporations. For can simply accept the charge on their smartphone using
instance, select Starbucks stores are already accepting apps such as Google Wallet or Square or give their name
payments through smartphones. Starbucks has even to the clerk to complete the transaction.
partnered with Square, a mobile payments company, to Square and Google Wallet applications have the potential
use its electronic credit card readers to process credit and to create new marketing opportunities as well. For instance,
debit card transactions. Mobile payments have the ability the Google Wallet app might be used to present additional
to create an easier and more efficient way for customers products to customers to complement or enhance features
to pay for their purchases. of what they are purchasing, creating a way to increase store
The ability to upload credit card information and save spending. If used properly, mobile payments could trans-
it to their smartphones might create obsolescence for form the way consumers spend and create a new purchas-
c
cash and transform the relationship between retailers ing behavior that positively impacts the retail industry.

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