978-1259709074 Chapter 3 Solutions Manual

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subject Authors Grewal Dhruv, Michael Levy

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Chapter 3 - Social and Mobile Marketing Marketing 6th
Answers to End of Chapter Learning Aids
Marketing Digitally
1 Go to http://www.facebook.com/business and learn about how to build pages, ads, and
sponsored stories and how to take advantage of mobile applications. What are some of the
steps that Facebook suggests a person consider when using ads for marketing?
Facebook outlines a step-by-step process for customers using Facebook ads. The steps are: 1- Decide
1 Go to Hubspot.com and check out its top case studies. How do these case studies provide
insights into how listening and analytics can help firms improve their social media
marketing?
The different case studies highlight the results of the HubSpot services. HubSpot provides tools for social
2 Learn about Coca-Cola’s “#shareacoke” social media campaign on YouTube
(https://www.youtube.com/watch?v=5l0cCyElfgg). Which of the 4E components does this
campaign leverage?
Coca-Cola is attempting to help customers experience products, whether directly or indirectly. They are
3 A student who graduates with a marketing degree likely has a good foundation for jobs
that utilize social media. Go to Monster.com and search for jobs in your area, using the
keyword “social media.” Would you be interested in pursuing one or more of these
positions? Why or why not?
Marketing Applications
1 Examine Under Armour's social media strategy using the 4E framework.
The 4Es are: excite customers with relevant offers, educate them about the offering, help them
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Chapter 3 - Social and Mobile Marketing Marketing 6th
4 Using the components of the 4E framework, outline how an entrepreneur marketing
low-sugar candy might apply it to their marketing mix efforts.
An entrepreneur marketing low-sugar candy probably has a limited promotional budget and should use
social media to interact with customers. The candy manufacturer should use the 4Es to support his/her
marketing efforts.
5 Suppose an herbal tea company introduced a new product called Mint-Enhanced Tea—a
mint and lemon herbal tea. How should it go about creating excitement using various
social and mobile media tools?
6 If you were marketing a new running shoe, what sort of mobile applications might enhance
your marketing efforts?
7 Assume you work for a large consumer packaged-goods firm that has discovered that its
latest line of snack foods is moving very slowly off store shelves. Recommend a strategy
for listening to what consumers are saying on blogs, review sites, and the firm’s website.
Describe how your strategy might provide insights into consumers’ sentiments about the
new product line.
8 As an intern for Starbucks, you have been asked to develop a social media campaign for a
new latte. The objective of the campaign is to increase awareness and trial of this new line.
Use the listen-analyze-do framework to outline a new campaign.
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Student answers will vary. When trying to increase awareness about a product, Starbucks should use
ListenStarbucks can use sentiment analysis to analyze the content found on sites like Facebook,
AnalyzeThe analysis requires well-trained marketing managers, marketing analytic software, and
9 You were just hired by a company that wants to produce apps that help people become
healthier by exercising, eating well, and reducing stress. On which customer motivations
would you recommend the company focus? Describe the app you would design, the
customer motivations it meets, and why your app is the right design for your potential
customers.
Students will respond with many different types of apps using the following customer motivations:
Creators, those hip, cool contributors, sit at the cutting edge and plan to stay there. Social media
10 The company loves the idea for the app you suggested in the previous question, but is
concerned about how it will make money on the app. Suggest a pricing model for the app
and discuss why this model will maximize profits.
There are four basic ways of generating revenue from apps:
Ad-supported apps are free to download, but place ads on the screen when using the program to
generate revenue.
Quiz Yourself
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Chapter 3 - Social and Mobile Marketing Marketing 6th
1 Through its Facebook page, a major restaurant chain is offering its customers a Groupon coupon for
50 percent off the purchase of a meal. In doing so, the restaurant is focusing on which aspect of the
4E framework?
a. educating
b. enlightening
c. experiencing
d. employing
e. exciting
11 To get customers excited about a social media–related offer, the offer must be:
a. innovative and substantial.
b. timely and aimed at a broad-based audience.
c. relevant and aimed at a target audience.
d. isolated and trendy.
e. general and unique.
Chapter Case Study: Images, Sales, Brands: How Red Bull Uses Various Social
Media Techniques to Achieve All Its Objectives
1 What social and mobile media tools is Red Bull using?
The Red Bull Stratos project
A video taken from the camera mounted on Baumgartner’s helmet targeted extreme sports
New York Red Bull MLS team sponsorship
Twitter meme as amateur photo editors placed a photo of a player against various background.
12 Evaluate Red Bull’s social media marketing strategy using the 4E framework.
13 How should Red Bull assess the effectiveness of these campaigns? Describe how it
should respond to insights gained by this assessment.
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Red Bull can use sentiment analysis to assess the favorableness or unfavorableness of the sentiments
In addition, Red Bull can:
Determine amount of traffic through measuring hits, visits to a particular site or page, unique
visitors to the site, and page views.
Measure the bounce rate, which refers to the percentage of times a visitor leaves the site almost
Additional Teaching Tips
This chapter explores how social and mobile marketing have revolutionized how companies communicate
with, listen to, and learn from their customers. Listening and analysis—or social media monitoring—is key,
enabling companies to identify salient customer input and trends.
Students will be familiar with the latest software and hardware. This will generate a good deal of interest.
It is important to teach students that social media is becoming an integral component of any integrated
marketing communications strategy.
The changing role of traditional media, sales promotions, and retail, coupled with the new media of social,
mobile, and online, has led to a different way of thinking about the objectives of marketing
communications using the 4E framework. It is important that instructors stress that the framework
includes: Exciting customers with relevant offers, Educating them about the offering, helping them
Experience products, whether directly or indirectly, and giving them an opportunity to Engage with their
social network.
Ninety-seven percent of consumers access social media through their computers, 37 percent access
these media via their mobile phones, 3 percent through iPads, and 2 percent through e-readers. Students
need to understand that these numbers are constantly changing. Importantly, of the more than 100 million
people that have smartphones in the U.S., approximately half of them make purchases on these devices.
Connect Activities
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Activity Type Learning Objectives 03-
01 02 03 04 05
Dell: Successfully Using Social Media Case Analysis X X X
Types of Social Media Click & Drag X X
Healthymagination: How GE is Using Social
Dell: Successfully Using Social Media
Activity Type: Case Analysis
Learning Objectives: 03-01, 03-03, 03-05
Difficulty: Hard
Activity Summary: This case discusses Dell’s social media efforts, after which students answer
questions applying chapter concepts to the case.
Activity
Introduction: From its start in 1984, Michael Dell had a vision to put customer relationships at the
forefront of Dell's business model. He used a simple mantra: "Be direct." By the early 2000s, Dell had
changed its interaction with customers by making a major commitment to social media. Dell was one
of the first corporate social media adopters and is now a leader in the use of social media to
transform company performance. With a corporate culture that fully embraces social media
connectivity, Dell is leveraging powerful interactions with consumers to improve products and
services, retain loyal customers, and increase revenues.
Concept Review: Through social media connections, marketers and customers share information of
all forms—from their thoughts about products or images to uploaded pictures, music, and videos. The
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Follow-Up Activity
Types of Social Media
Activity Type: Click & Drag
Learning Objectives: 03-03, 03-04
Difficulty: Medium
Activity Summary: In this activity, students match descriptions of social media needs to different
social media tools.
Activity
Introduction: The term social media refers to content distributed through social interactions. These
media use various firms that offer services or tools to help consumers and firms build connections.
Through these connections, marketers share information of all forms with their customers and can
have customers connect and interact with each other. Since their infancy in the late 1990s, social
media have now entered the entrepreneurial era. Now, companies work to find ways to earn profits
Concept Review: There are three main categories of social media. First are social networking sites.
Healthyimagination: How GE Is Using Social Media
Activity Type: Video Case
Learning Objectives: 3-01, 3-03, 3-05
Difficulty: Medium
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Activity Summary: This video case explores GE’s social media strategy for its health-related
products. Questions related to the case are embedded in the video. After the video ends, students are
asked questions about the video and related course concepts.
Activity
Introduction: Consumers today want to make healthier choices but do not always know how. The
amount of available information is overwhelming. To help consumers manage their health and make
better decisions, GE launched the social media campaign called Healthymagination.
Healthymagination uses different types of social media to allow GE, consumers, patients, and doctors
to gather, share, and discuss healthy ideas. Watch the following video to see how GE is using social
media to help people connect and become healthier together.
Concept Review: Social media have given marketers new opportunities to excite consumers,
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
Visit the GE Healthymagination website (http://www.healthymagination.com/). Evaluate the content; how
engaging is it, and how could GE make it more engaging? How can potential customers learn about the
site?
Spirit Airlines: The Hate Thousand Miles Campaign
Activity Type: Video Case
Learning Objectives: 3-01, 3-03, 3-05
Difficulty: Medium
Activity Summary: In an unusual move, Spirit Airlines acknowledged that many consumers hate air
travel, both on Spirit and on other airlines, and encouraged them to “share the hate.” This video case
explores Spirit’s campaign. After the video ends, students are asked questions about the video and
related course concepts.
Activity
Introduction: Spirit’s ultra-low-cost carrier pricing model isn’t for everyone, and the airline knows
that. One weakness of its strategy is that its pricing model is unfamiliar to U.S. air travelers, which can
lead to unpleasant surprises when consumers have to pay fees in addition to the basic fare. To
address this issue, Spirit created the “Hate Thousand Miles” social media campaign, awarding
customers 8,000 miles in Spirit’s frequent flyer program in return for sharing what they hate about air
travel, whether on Spirit or on other airlines.
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
In small groups, have students discuss: How, besides the “State of Hate” report, could Spirit use the
collected data to grow the company?
oThe video mentions that when consumers create a frequent flyer account with Spirit in order to
Images, Sales, Brands: How Red Bull Uses Social Media
Activity Type: Case Analysis
Learning Objectives: 03-01, 03-03, 03-04, 03-05
Difficulty: Medium
Activity Summary: After reading a case describing social media tactics used by Red Bull, students
Activity
Introduction: Red Bull uses social media in several ways that help to enhance its exciting, edgy
brand image. This activity is important because all marketers must be able to identify opportunities to
leverage social media effectively as part of a marketing plan.
Social/Mobile/Online: SBC
Activity Type: Video Case
Learning Objectives: 03-02, 03-03, 03-05
Difficulty: Hard
Activity Summary: Students view a video describing SBC’s social media program, which is focused
on serving particular niches of cycling enthusiasts. Following the video, students are asked questions
applying chapter concepts to SBC’s program.
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Chapter 3 - Social and Mobile Marketing Marketing 6th
Activity
Introduction: Specialized Bicycle Components, Inc. (SBC) caters to the cycling enthusiast. The
company uses social media in a variety of ways, seeking to engage riders interested in various
aspects of biking. This video explains SBC’s philosophy for social media use, and offers several
examples. This activity is important because effective use of social media is crucial in today’s world,
allowing a brand to express its image and values, and allowing interaction with customers. The goal
of this exercise is to test your understanding of social media frameworks by applying them to the SBC
examples.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
ISeeIt Video Case: Social Media Metrics
Activity Type: Video Case
Learning Objectives: 3-03, 3-05
Difficulty: Medium
Activity Summary: This video case emphasizes the importance of using metrics to evaluate social
media offerings.
Activity
Introduction: Social media represents a unique blending of technology and social interaction to
create personal value for users of these platforms. This growing medium represents a challenging
online environment that businesses can use to make meaningful connections with customers. But in
order to be effective, organizations must use the availability of analytics and performance information
to keep customers engaged. Take for instance the student organizations Green Team and Young
Explorers. As they both try to learn about students' interests through page views, click paths and
conversation rates, the data the clubs are collecting needs to be analyzed so they can create tactics
that create value for potential club members such as Gabbie. While Green Team is very savvy in its
social media techniques, it is not as successful as the Young Explorers. Instead of focusing on the
channels used, Young Explorers uses collected data to create a campaign that engages, connects,
and keeps potential members clicking.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
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