978-1259709074 Chapter 3 Solutions Manual

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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

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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Student answers will vary. When trying to increase awareness about a product, Starbucks should use

Listen—Starbucks can use sentiment analysis to analyze the content found on sites like Facebook,

Analyze—The 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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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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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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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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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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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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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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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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