©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 9
Digital Marketing and Social Networking
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 1
Lecture Outline
IRM, p. 2
Discussion Starters
IRM, p. 12
Class Exercises
IRM, p. 13
Chapter Quiz
IRM, p. 14
Answers to Issues for Discussion and Review
IRM, p. 15
Answers to Developing Your Marketing Plan
IRM, p. 18
Comments on Video Case 9
IRM, p. 20
PowerPoint Slides
Instructor’s website
Note: Additional resources may be found on the accompanying student and instructor websites at
www.cengagebrain.com.
PURPOSE AND PERSPECTIVE
The purpose of this chapter is to provide students with an overview of changes and innovations in
marketing. The digital revolution has generated new technologies that make the field of marketing
simultaneously faster, easier, different, and more complex. First, the chapter presents definitions of key
terms, such as digital media and electronic marketing. It stresses their increasing importance in the
strategic planning process. Next, students are provided with an understanding of the role of digital media
in marketing strategy and how digital media can be used as an effective marketing tool. Then the chapter
provides information on how digital marketing influences consumer behavior and the marketing mix.
Finally, the chapter outlines legal and ethical concerns related to digital media and electronic marketing.
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Chapter 9: Digital Marketing and Social Networking
LECTURE OUTLINE
I. Defining Digital Marketing
A. Digital media—media available via computers, mobile devices, and other digital devices that have
been released in recent years—are electronic media that function using digital codes.
B. Digital marketing uses all digital media, including the Internet and mobile and interactive
channels, to develop communication and exchanges with customers.
C. Electronic marketing, or e-marketing, refers to the strategic process of distributing, promoting,
pricing products, and discovering the desires of customers using digital media and digital
marketing.
II. Growth and Benefits of Digital Marketing
A. The phenomenal growth of the Internet has provided unprecedented opportunities for marketers to
forge interactive relationships with consumers.
1. As the Internet and digital communication technologies have advanced, they have made it
possible to target markets more precisely and reach markets that were previously
inaccessible.
B. One of the most important benefits of e-marketing is the ability of marketers and customers to
share information.
1. The Internet is changing the way marketers communicate and develop relationships.
a. Today’s marketers can use the Internet to form relationships with a variety of
stakeholders, including customers, employees, and suppliers.
2. For many businesses, engaging in digital and online marketing activities is essential to
maintaining competitive advantages.
a. Increasingly, small businesses can use digital media to develop strategies to reach new
markets and access inexpensive communication channels.
C. Digital media offer a whole new dimension to marketing that marketers must consider when
concocting their companies’ marketing strategies.
D. Some of the characteristics that distinguish online media from traditional marketing include (Table
9.1):
1. Addressability
2. Interactivity
3. Accessibility
4. Connectivity
5. Control
III. Types of Consumer-Generated Marketing and Digital Media
A. Social media are more consumer-driven than traditional media.
B. Two major trends have caused consumer-generated information to gain importance.
1. The increased tendency of consumers to publish their own thoughts, opinions, reviews, and
product discussions through blogs or digital media.
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2. Consumers’ tendencies to trust other consumers over corporations. Consumers often rely on
the recommendations of friends, family, and fellow consumers when making purchasing
decisions.
C. By understanding where online users are likely to express their thoughts and opinions, marketers
can use these forums to interact with consumers, address problems, and promote their companies.
1. Types of digital media in which Internet users are likely to participate include social
networking sites, blogs, wikis, media-sharing sites, virtual reality sites, mobile devices,
applications and widgets, and more.
D. Social Networks
1. A social network is a website where users can create a profile and interact with other users,
post information, and engage in other forms of Web-based communication.
2. Marketers are using social networks and their popularity with consumers to promote
products, handle questions and complaints, and provide information to assist customers in
buying decisions.
3. As the number of social network users increases, interactive marketers are finding
opportunities to reach out to consumers in new target markets.
4. As social networks evolve, both marketers and the owners of social networking sites are
realizing the incredible opportunities such networks offer—an influx of advertising dollars
for social networking owners and a large reach for the advertiser.
a. The challenge to improve the brand is to expand the range of social media used and to
target various stakeholders that should be part of the dialogue.
b. Therefore, social media could be a part of corporate communication and brand
building strategy.
E. Facebook
1. Facebook is the most popular social networking site in the world.
a. It has 1.2 billion users worldwide.
2. Organizations are using Facebook and other digital media sites to give special incentives to
customers.
3. Social networking sites are useful for relationship marketing, or the creation of relationships
that mutually benefit the marketing business and the customer.
a. Thanks to Facebook, companies that are focused upon building and enhancing
customer relationships are able to understand who their customers are and how they
can meet their needs.
F. Twitter
1. Twitter s a hybrid mix of a social networking site and a micro-blogging site that asks viewers
one simple question—“What’s happening?”
a. Users can post answers of up to 140 characters, which are then available for their
“followers” to read.
b. A limitation of 140 characters may not seem like enough for companies to send an
effective message, but some companies have become experts at using Twitter in their
marketing strategies.
2. Like other social networking sites, Twitter is also being used to enhance customer service
and create publicity about company products.
a. Its acquisition of Vine, a mobile video app that allows users to post videos of up to six
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seconds and share them with other users, expanded Twitter’s offerings and has
become popular among celebrities and teenagers.
G. Google+
1. In 2011 Google launched its Google+ network, a social media site intended to rival
Facebook and identify users across Google’s various services.
2. To get more people using Google+, if you use a Google service (like Gmail or YouTube)
you have to have a Google+ account.
a. Integration between the different Google platforms means users can no longer post
reviews or comments anonymously.
3. Google+ gives digital marketers an opportunity to capitalize on its growing user base.
a. Because Google+ is linked with search results on Google, sharing a firm’s
information on Google+ could push the firm up through the ranks of Google
search results.
b. Although Google+ does not yet have the same influence as Facebook, marketers
are discovering a number of possibilities to engage users with Google+.
H. Blogs and Wikis
1. Blogs (short for “weblogs”) are web-based journals in which writers can editorialize and
interact with other Internet users.
2. Blogs give consumers control, sometimes more than companies would like.
a. Whether or not the blog’s content is factually accurate, bloggers can post whatever
opinions they like about a company or its products.
(1) Although companies have filed lawsuits against bloggers for defamation, they
usually cannot prevent the blog from going viral.
b. In other cases, a positive review of a product posted on a popular blog can result in
large increases in sales.
(1) Thus, blogs can represent a potent threat to corporations as well as an
opportunity.
3. Blogs have major advantages:
a. Rather than trying to eliminate blogs that cast their companies in a negative light,
some businesses are using such blogs to answer consumer concerns or defend their
corporate reputations.
b. Many major corporations have created their own blogs or encourage employees to
blog about the company.
4. A wiki is a type of software that creates an interface that enables users to add or edit the
content of some types of websites.
a. One of the best known is Wikipedia, an online encyclopedia with more than 34 million
entries in more than 288 languages on nearly every subject imaginable.
(1) The site is expanded, updated, and edited by a large team of volunteer
contributors.
(2) For the most part, only information that is verifiable through another source is
considered appropriate.
(3) Because of its open format, Wikipedia has suffered from some high-profile
instances of vandalism in which incorrect information was disseminated.
b. Wikis on controversial companies like Walmart and Nike often contain negative
publicity about the companies, such as worker rights violations.
(1) However, some companies have begun to use wikis as internal tools for teams
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working on a project requiring lots of documentation.
(2) Additionally, monitoring wikis provides companies with a better idea of how
consumers feel about the company brand.
5. There is too much at stake financially for marketers to ignore blogs and wikis.
a. Marketers who want to form better customer relationships and promote their
company’s products must not underestimate the power of these two tools as new
media outlets.
I. Media-Sharing Sites
1. Media-sharing sites allow marketers to share photos, videos, and podcasts but are more
limited in scope in how companies interact with consumers.
2. While firms can promote their products through videos or photos, they usually do not
interact with consumers through personal messages or responses.
a. At the same time, the popularity of these sites provides the potential to reach a global
audience of consumers.
3. Photo-sharing sites allow users to upload and share their photos with the world.
a. Well-known photo sharing sites include Flickr, Picasa, Shutterfly, Snapfish, and
Instagram.
b. Flickr is owned by Yahoo! and is one of the most popular photo-sharing sites on the
Internet.
(1) A Flickr user can upload images, edit them, classify the images, create photo
albums, and share photos or videos with friends without having to e-mail bulky
image files or send photos through the mail.
c. Instagram is a mobile photo-sharing site that has surpassed Flickr in popularity. Users
can manipulate their photos on Instagram with different tints and share them with their
friends.
d. Pinterest takes photo sharing to a new level. It is a photo-sharing bulletin board that
combines photo sharing with elements of bookmarking and social networking.
(1) Users can share photos and images among other Internet users, communicating
mostly through images that they “pin” to their boards. Other users can then
“repin” these images.
(2) Because Pinterest users create boards that deal with their interests, marketers
also have a chance to develop marketing messages encouraging users to
purchase the product or brand that interests them.
e. Photo sharing represents an opportunity for companies to market themselves visually
by displaying snapshots of company events, company staff, and/or company products.
4. Video-sharing sites allow virtually anybody to upload videos to the Internet.
a. Some of the most popular video-sharing sites include YouTube, Vimeo, and Hulu.
b. Video-sharing sites give companies the opportunity to upload ads and informational
videos about their products.
c. A few videos become viral at any given time, and although many of these gain
popularity because they embarrass the subject in some way, others reach viral status
because people find them entertaining.
d. Businesses have begun to realize that they can capitalize upon consumer-generated
content. Consumer-generated videos also appear more authentic to other consumers.
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a. QR codes are black-and-white squares that sometimes appear in magazines, posters,
and storefront displays.
b. Smartphone users that 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.
c. Marketers are using QR codes to promote their companies and offer consumer
discounts.
4. Mobile technology is also making inroads in transforming the shopping experience.
a. 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.
b. As mobile payments gain in traction, companies like Google Wallet, Apple Pay, and
Square are working to seize on this opportunity. Some organizations have also begun
to accept virtual peer-to-peer currency such as Bitcoin in their stores.
5. Widgets are small bits of software on a website, desktop, or mobile device that performs a
simple purpose, such as providing stock quotes or blog updates.
a. Marketers might use widgets to display news headlines, clocks, or games on their
webpages.
b. Widgets downloaded to a user’s desktop can update the user on the latest company or
product information, enhancing relationship marketing between companies and their
fans.
c. Widgets are an innovative digital marketing tool to personalize webpages, alert users
to the latest company information, and spread awareness of the company’s products.
IV. Changing Digital Media Behaviors of Consumers
A. Consumers now have a greater ability to regulate the information that they view as well as the rate
and sequence of their exposure to that information.
B. The Internet is sometimes referred to as a pull medium because users determine which websites
they are going to view; the marketer has only limited ability to control the content to which users
are exposed, and in what sequence.
C. Some companies are using the power of the consumer to their advantage.
1. While negative ratings and reviews are damaging to a company, positive customer feedback
is free publicity that often helps the company more than corporate messages do.
2. Because consumer-generated content appears more authentic than corporate messages, it can
go far in increasing a company’s credibility.
3. While consumers can use digital media to access more information, marketers can also use
the same sites to get information on the consumer—often more information than could be
garnered through traditional marketing venues.
4. They can examine how consumers are using the Internet to target marketing messages to
their audience.
5. Marketers are also using the Internet to track the success of their online marketing
campaigns, creating an entirely new way of gathering marketing research.
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Chapter 9: Digital Marketing and Social Networking
D. Online Consumer Behavior
1. As Internet technology evolves, digital media marketers must constantly adapt to new
technologies and changing consumer patterns.
2. With so many new technologies emerging, the attrition rate for digital media channels is very
high, with some dying off each year as new ones emerge.
3. Forrester Research, a technology and market research company, emphasizes the importance
of understanding the changing relationships in the online media world.
a. By grouping online consumers into different segments based on how they utilize
digital online media, marketers can gain a better understanding of the online market
and how best to proceed.
b. The Social Technographics Profile developed by Forrester Research groups the online
community into seven segments according to how they interact with new digital media
(Table 9.2). Internet users can be in more than one category.
(1) Creators are those consumers who create their own media outlets, such as
blogs, podcasts, consumer-generated videos, and wikis.
(2) Conversationalists regularly update their Twitter feeds or status updates on
social networking sites.
(3) Critics are people who comment on blogs or post ratings and reviews.
(4) Collectors gather information and organize content generated by critics and
creators.
(5) Joiners are anyone who becomes a member of Twitter, Facebook, or other
social networking sites.
(6) Spectators are those consumers who read what other consumers produce but do
not produce any content themselves.
(7) Inactives are online users who do not participate in any digital online media.
4. Marketers need to consider if their online consumers are creating, conversing, rating,
collecting, joining, or simply reading online materials.
a. As with traditional marketing efforts, marketers need to know the best ways to reach
their target market.
V. E–Marketing Strategy
A. More than one-third of the world’s population uses the Internet, and this number is growing at a
high rate.
1. There is a growing need for businesses to use the Internet to reach an increasingly Web–
savvy population.
2. This makes it essential for businesses, small and large alike, to learn how to effectively use
new social media.
3. Most businesses are finding it necessary to use digital marketing to gain or maintain market
share.
B Product Considerations
1. Digital media provide an opportunity to add a service dimension to traditional products and
create new products that could only be accessible on the Internet.
a. The ability to access product information for any product can have a major impact on
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Chapter 9: Digital Marketing and Social Networking
buyer decision making.
b. With larger companies now launching their own extensive marketing campaigns, and
with the constant sophistication of digital technology, many businesses are finding it
necessary to continually upgrade their product offerings to meet consumer needs.
2. Some companies now use online advertising campaigns and contests to develop better
products.
C. Pricing Considerations
1. Pricing relates to perceptions of value and is the most flexible element of the marketing mix.
2. Digital online media marketing facilitates both price and nonprice competition because
Internet marketing gives consumers access to more information about costs and prices.
a. As consumers become more informed about their options, the demand for low-priced
products has grown, leading to the creation of daily deal sites.
b. Several marketers are also offering buying incentives like online coupons or free
samples to generate consumer demand for their product offerings.
3. Digital connections can help the customer find the price of the product available from
various competitors in an instant.
a. While this new access to price information benefits the consumer, it also places new
pressures on the seller to be competitive and to differentiate products so that customers
focus on attributes and benefits other than price.
4. Retailers and other organizations are developing e-commerce stores on Facebook so that
consumers can purchase items directly.
D. Distribution Considerations
1. Digital marketing can be viewed as a new distribution channel that helps businesses increase
efficiency.
2. The ability to process orders electronically and increase the speed of communications via the
Internet reduces inefficiencies, costs, and redundancies while increasing speed throughout
the marketing channel.
3. Shipping times and costs have become an important consideration in attracting consumers,
prompting many companies to offer consumers low shipping costs or next-day delivery.
4. Distribution involves a push-pull dynamic—the firm that provides a product will push to get
that product in front of the consumer, while at the same time connectivity aids those channel
members that desire to find each other—the pull side of the dynamic.
a. This process can help push products through the marketing channel to consumers or
enable customers to pull products through the marketing channel.
E. Promotion Considerations
1. Online advertising includes many types of display advertising, including the use of text,
logos, animation, videos, photographs, or other types of graphic display.
a. A major advantage of online advertising is that marketers can track advertising
statistics.
2. Digital media has also opened opportunities for business–to-business promotions.
3. Digital promotions all attempt to increase brand awareness and market to consumers.
a. Consumer consumption patterns are changing radically, and marketers must adapt
their promotional efforts to meet these new patterns.
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VI. Ethical and Legal Issues
A. How marketers use technology to gather information—both online and offline—raise many ethical
and legal questions.
1. The popularity and widespread use of the Internet grew so quickly in the 1990s that global
regulatory systems were unable to keep pace.
B. Privacy
1. One of the most significant privacy issues involves the use of personal information that
companies collect from website visitors in their efforts to foster long-term relationships with
customers.
a. Some people fear that the collection of personal information from website users may
violate users’ privacy, especially when it is done without their knowledge.
b. Governments have issued subpoenas to companies like Google and Microsoft for user
information when pursuing action.
c. The European Union has been particularly cautious regarding the collection of user
data and has even passed a “right to be forgotten” law.
2. Due to consumer concerns over privacy, the FTC is developing regulations that would better
protect consumer privacy by limiting the amount of consumer information that businesses
can gather online.
a. Web advertisers, who use consumer information to better target advertisements to
online consumers, see it as a threat.
b. In response to impending legislation, many Web advertisers are attempting self-
regulation in order to stay ahead of the game.
C. Online Fraud
1. Online fraud includes any attempt to conduct dishonest activities online.
2. Online fraud includes, among other things, attempts to deceive consumers into releasing
personal information.
3. Hacking has also become a widespread problem.
4. Organizations and social networking sites alike are developing ways to combat fraudulent
activity on digital media sites.
a. However, the best protection for consumers is to be careful when divulging
information online.
b. Privacy advocates advise that the best way to stay out of trouble is to avoid giving out
personal information, such as social security numbers or credit card information,
unless the site is definitely legitimate. Using a different password for each website that
users visit is another way to help avoid fraud.
D. Intellectual Property
1. The Internet has also created issues associated with intellectual property, the copyrighted or
trademarked ideas and creative materials developed to solve problems, carry out
applications, and educate and entertain others.
2. The software industry is particularly hard-hit when it comes to the pirating of materials and
illegal file sharing.
a. Consumers view illegal downloading in different ways, depending on the motivation
for the behavior.
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Chapter 9: Digital Marketing and Social Networking
DISCUSSION STARTERS
Discussion Starter 1: Online Shopping, Technology, and Privacy
Amazon.com is one of the Web’s most recognizable marketers. Visit the company’s website at
www.amazon.com and describe how the company adds value to its customers’ buying experience.
ASK: Have you ever shopped on Amazon.com?
ASK: What did you think about the experience? Did you enjoy it?
Students may have a range of answers to this question—from complete satisfaction to dissatisfaction.
ASK: Do you like how Amazon remembers you and recommends things to purchase based on your past
purchases? Other companies, like Netflix, do a similar thing. Do you think more companies should
employ similar technology? Would it convince you to buy more things?
Other students may appreciate how it makes finding interesting products easier.
Discussion Starter 2: Is Electronic Marketing for Everyone?
ASK: In general, do you think that electronic marketing is effective at reaching target markets?
Students may answer this question in a variety of ways. If strong sides emerge, you may want to set up a
ASK: When you indicate that you ‘Like’ a product or company on Facebook, does that make you more
likely to be a customer of that company? Or are you merely passively indicating that you think that
company makes quality products?
It should be interesting to see how students answer this question. Reason would stand that they would be
ASK: Can you think of any products that should not be marketed online?
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Chapter 9: Digital Marketing and Social Networking
CLASS EXERCISES
Class Exercise 1: Online Social Networking and Marketing
Note: This could easily be converted into a take-home assignment for either individuals or groups.
Social networking is a popular method of communication for individuals, businesses, and organizations of
all kinds. Conduct some research online and identify how companies are utilizing some of the most
popular social networking sites in their marketing strategies. Consider the target markets businesses are
trying to reach and whether you think they have been successful in reaching those markets via social
networking sites. Are some companies doing really creative things to get customers’ attention? What are
they doing, and how successful have they been?
Class Exercise 2: Blogs are Big Business (and a Powerful Tool for Marketers)
Whether businesses like it or not, bloggers have tremendous power. A positive review on a popular blog
can mean exponential increases in sales. The opposite situation could be true for a negative review.
Regardless of whether or not most bloggers are qualified to give advice about products, their readers pay
attention and so, therefore, must marketers. Many companies now send out samples, free trips, stays in
hotels, etc. to bloggers in the hopes of garnering praise on popular (and moderately popular) blogs. With
literally millions of blogs already in existence, and new ones popping up all the time, this can amount to
an overwhelming task for marketers. However, blogs can be a great way for companies to generate some
low-cost publicity. This is why so many firms have resorted to appealing to bloggers.
Have students do some research of their own on blogs. Undoubtedly, most students are aware of different
blogs that they enjoy. Have them suggest a few (school appropriate) blogs and search for ways that
marketers are utilizing the sites. They may find advertisements on the site. They may find reviews. They
also may find brand names prominently displayed in the posts. If it is a blog about cooking, the blogger
may prefer a particular kind of olive oil. Another blogger may profess a love of a certain brand of clothing
on a fashion blog.
Then have students brainstorm on how they might be able to utilize blogs to market a particular product.
Have them think about whether any products are particularly not appropriate for marketing via blogs.
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Chapter 9: Digital Marketing and Social Networking
CHAPTER QUIZ
1. A __________ is a website where users can create a profile and interact with other users, post
information, and engage in other forms of Web-based communication.
a. podcast
b. social network
c. connectivity platform
d. bulletin board site
e. virtual link
2. Marketers are taking advantage of mobile technology to help customers do all of the following
except __________.
a. compare prices and product features
b. download coupons and other discounts
c. connect with other consumers buying the same product
d. make electronic payments
e. receive advertisements
3. __________ is free publicity that often helps the company more than corporate messages do.
a. Interactivity
b. Enterprise 2.0
c. Company website
d. Mobile advertising
e. Positive customer feedback
4. A digital consumer who regularly posts comments on a company’s blog regarding their products is
mostly likely a __________.
a. conversationalist
b. joiner
c. collector
d. critic
e. spectator
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ANSWERS TO ISSUES FOR DISCUSSION AND REVIEW
1. How does e-marketing differ from traditional marketing?
There are many ways in which e-marketing differs from traditional marketing. Characteristics that
2. How can marketers exploit characteristics of digital marketing to improve relations with
customers?
Interactivity allows customers to express their needs and wants directly to the firm in response to its
3. Why are social networks becoming an increasingly important marketing tool? Find an
example online in which a company has improved the effectiveness of its marketing strategy by
using social networks.
©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7. Describe how social media affects the push-pull dynamic of distribution?
8. How do the characteristics of e-marketing affect the promotion element of the marketing mix?
9. How has digital media affected the pricing of products? Give examples of the opportunities
10. Name and describe the major ethical and legal issues that have developed in response to the
Internet. How should policymakers address these issues?
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Chapter 9: Digital Marketing and Social Networking
ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from the following questions should assist you in developing various aspects of
your marketing plan. Develop your marketing plan online using the Interactive Marketing Plan at
www.cengagebrain.com.
1. Review the key concepts of addressability, interactivity, accessibility, connectivity, and control
in Table 9.1, and explain how they relate to social media. Think about how a marketing
strategy focused on social media differs from a marketing campaign reliant on traditional
media sources.
The ability of a marketer to identify customers before they make a purchase is called addressability.
Traditional media marketing campaigns were unidirectional, meaning the marketer put out a message
and hoped that it reached the correct audience and achieved the desired effect. Customer response
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Chapter 9: Digital Marketing and Social Networking
©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
positive, that is out of the control of the firm and can significantly affect sales. Customers can also
generate buzz about products, therefore creating a pull effect and increasing company sales.
2. No matter what marketing media are used, determining the correct marketing mix for your
company is always important. Think about how social media might affect the marketing mix.
Students’ answers will vary. They should be able to defend their reasoning no matter what stance
media, and perhaps also the technographic segments mentioned in the text.
3. Discuss different digital media and the pros and cons of using each as part of your marketing
plan.
Students’ answers will vary. Each student will have a different marketing plan, and each must cater
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Chapter 9: Digital Marketing and Social Networking
COMMENTS ON VIDEO CASE 9: ZAPPOS DRIVES SALES THROUGH
RELATIONSHIP BUILDING ON SOCIAL MEDIA
Summary
Zappos was one of the first companies to incorporate social media into their business, and they have
established themselves as a leader in its use. Zappos focuses on building customer relationships through
human interactions and emphasizes comments related to service and fun. Zappos does not maintain a
specific strategy for marketing on social media, nor do they have a policy for responding to customers. As
with any Zappos activity, marketing is guided by the company’s core values, including creating “WOW”
customer experiences and a culture characterized by fun and a little weirdness. The company has been
able to achieve rapid growth through their use of values in their marketing activities. They are a large
company with a small business feel when it comes to how they treat their customers and how their
customers feel about them. This is due in large part to their presence on social media and the way they
cross-promote their activities across platforms. Zappos also generates interest by encouraging customers
to share promotions and purchases with friends. Overall, Zappos ensures that they are using social media
to build relationships by bringing customers closer to the company.
Questions for Discussion
1. Describe some ways in which Zappos uses digital media tools.
Recognizing consumers’ active presence on Facebook and Twitter, Zappos encourages consumers to
2. How does Zappos encourage word–of-mouth marketing through digital media?
3. How does Zappos use digital media to create an authentic relationship with consumers?