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 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?
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?
Discussion Starter 2: Is Electronic Marketing for Everyone?
ASK: In general, do you think that electronic marketing is effective at reaching target markets?
ASK: When you indicate that you ‘Like’ or are a ‘Fan’ of 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?
ASK: Can you think of any products that should not be marketed online?
Discussion Starter 3: Using Social Networking to Reach Clients
ASK: Should law firms solicit for clients on digital media sites?
Like many businesses, law firms are embracing social media in a quest to reach potential clients. On legal
site called YazTalk.com, which provides information on side effects from the birth control pill YAZ, has
ASK: Are law firms using social media merely to make more money? Or are they helping people who are
traditionally underserved in the courtroom?
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Discussion Starter 4: Social Networking in the Workplace
ASK: Should employees be allowed to use social networking sites at work?
While employers agree that social media isn’t going away, they disagree on what to do about its use in the
workplace. It is estimated that the average employee spends one hour a day on social media sites during
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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
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; or the blogger may profess a love of a certain brand of clothing
on a fashion blog, for example.
Then have students brainstorm on how they might be able to utilize blogs to market a particular product
or service. Have them think about whether any products are particularly not appropriate for marketing via
blogs.
Class Exercise 3: Pinterest and Marketing
Pinterest is a bulletin board site that combines photo sharing with elements of bookmarking and social
networking. Users can share photos and images with other Internet users, communicating mostly through
images that they “pin” to their boards. Other users can “re–pin” these images to their boards, follow each
other, “like” images, and make comments. Marketers have found that an effective way of marketing
through Pinterest is to post images conveying a certain emotion that represents their brand.
1. Which type of Internet user does Pinterest appear to target the most: creator, critic,
conversationalist, or spectator?
2. What element of the promotion mix is Pinterest most suited for? Product, promotion, distribution,
or pricing?
Answers:
1. The most likely Internet user to be targeted by Pinterest is probably the spectator. People can post
original content, but it is generally not used for this. Additionally, it is possible to comment on
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Class Exercise 4: Snapchat and Privacy
Snapchat is a photo messaging application that is unique because users can set a time limit for how long
their friends can see their material. After the time limit is completed, the “snap” is hidden from the
recipient’s device and deleted from Snapchat’s servers. However, in 2014 Snapchat settled with the FTC
regarding claims that users and outsiders could access messages beyond the time limit. They also stated
that Snapchat didn’t inform users their locations were being tracked and didn’t do enough to protect user
data from being hacked.
1. Describe the ethical and legal issues that Snapchat faced.
2. As part of the settlement, Snapchat agreed to 20 years of privacy audits. How did Snapchat
violate user privacy?
3. Snapchat claims that content sent through the app would disappear in 10 seconds or less. The
FTC found this to be false. Is this an example of puffery (exaggeration) or deceptive promotion?
Answers:
1. Snapchat got in trouble because it tracked user locations without informing them, did not ensure
that all content was deleted in a certain time period, and did not do enough (according to the
FTC) to prevent hackers from getting into the network.
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1. Review the key concepts of addressability, interactivity, accessibility, connectivity, and control
in Table 10.1, and explain how they relate to new social media. Think about how a marketing
strategy focused on new 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.
Many websites encourage visitors to register to maximize their use of the site or to gain access to
premium areas. Interactivity allows customers to express their needs and wants directly to the firm in
response to its marketing communications. It represents a significant shift because traditional
marketing media usually involved one-way forms of communication. The ability to obtain digital
information is referred to as accessibility. Because customers can access in-depth information about
competing products, prices, and reviews, they are much better informed about a firm’s products and
while also giving consumers more power than ever before.
Digital media technology makes it possible for visitors on a website to identify themselves and
provide information about their product needs and wants before making a purchase. Armed with
knowledge about individual customers, marketers can tailor marketing mixes more precisely to target
customers with narrow interests. Addressability on social networks is achieved through their ability to
provide a meeting ground for individuals and groups with similar interests and consumption patterns.
Consumer control is higher in a digital age because consumers can generate publicity, negative or
positive, that is out of the control of the firm and can significantly affect sales. Customers can
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.
3. Discuss different digital media and the pros and cons of using each as part of your
marketing plan.
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ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. How does e-marketing differ from traditional marketing?
There are many ways in which e-marketing differs from traditional marketing. Characteristics that
separate e-marketing from traditional marketing include addressability, interactivity, accessibility,
connectivity, and control. The interactivity of digital media allows e-marketing to be a two-way
process, in which marketers can engage in conversations with consumers and consumers can provide
online.
2. Define interactivity and explain its significance. How can marketers exploit this characteristic to
improve relations with customers?
Interactivity allows customers to express their needs and wants directly to the firm in response to its
marketing communications. It represents a significant shift in how marketing is done because
traditional marketing media usually involved one-way forms of communication. The feedback
3. Explain the distinction between push and pull media. What is the significance of control in
terms of using websites to market products?
Push involves a company producing a product and pushing to get it in front of consumers. Pull
4. 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.
Social networks are appealing for a number of reasons. First of all, many different demographic
groups (including hard–to-reach teenagers and young adults) are active on social networks. The low
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5. How has digital media changed consumer behavior? What are the opportunities and challenges
that face marketers with this in mind?
Consumers now have more control than ever before. They have access to greater amounts of
information and are more likely to conduct research online before purchases. Consumers can also post
and features in order to retain a competitive advantage.
6. Describe the different Technographic segments. How can marketers use this segmentation in
their strategies?
Creators are those consumers who create their own media outlets, such as blogs, podcasts,
consumer-generated videos, and wikis. Conversationalists regularly update their Twitter feeds or
status updates on social networking sites. Critics are people who comment on blogs or post
ratings and reviews. Collectors are perhaps the most newly recognized group of the seven.
Collectors gather information and organize content generated by Critics and Creators. Anyone
7. How can marketers exploit the characteristics of the Internet to improve the product element of
their marketing mixes?
The Internet can help firms better address the needs of their consumers through product features
8. How do the characteristics of digital marketing affect the promotion element of the marketing
mix?
Promotion is the element of the marketing mix best suited for digital media. E-marketing allows for
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9. How has digital media affected the pricing of products? Give examples of the opportunities and
challenges presented to marketers in light of these changes.
Digital media facilitate both price and nonprice competition, because Internet marketing gives
consumers access to more information about costs and prices. As consumers become more informed
10. Name and describe the major ethical and legal issues that have developed in response to the
Internet. How should policy makers address these issues?
The major ethical and legal issues are privacy, intellectual property protection, and online fraud. All
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COMMENTS ON THE CASES
VIDEO CASE 10.1: 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 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
get involved by regularly providing status updates. It often shares postings or comments on a variety
2. How does Zappos encourage word-of-mouth marketing through digital media?
Zappos shares posts or comments from Facebook on Twitter, Google+, YouTube, and Pinterest to
3. How does Zappos use digital media to create an authentic relationship with consumers?
Zappos views digital media more as a cultural tool. It does not have a specific social media policy,
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CASE 10.2: THE CHALLENGES OF INTELLECTUAL PROPERTY IN
DIGITAL MARKETING
Summary
Approximately 72 percent of online adults claim to use some form of social media. Marketers are
well aware of the strong presence on these sites, as 93 percent of them state they use social media for
business purposes. However, with the growing popularity of digital media also comes the growing
tendency to violate the intellectual property of other people. Intellectual property (IP) refers to any
creation that is both tangible and intangible and used in commerce. File–sharing websites such as
Pirate Bay provide a platform for people to pirate, or illegally download, music and movies. It might
seem relatively simple for an organization’s marketers to ensure that employees do not place content
the Internet complicates this issue. Additionally, many digital marketing campaigns make use of
user-generated content, such as videos or postings. This provides a significant advantage to marketers
as content developed by other users is generally considered more trustworthy than corporate
marketing initiative. However, marketers must also be careful that the users do not post content that
infringes on another’s intellectual property. One way companies can protect themselves is through
websites to display these browse wrap agreements so that they meet all relevant conditions.
Questions for Discussion
1. How has Internet piracy impacted organizations?
Internet piracy has significantly impacted the profits of many industries. For instance, it caused sales
2. Why is it hard for firms to monitor and protect against intellectual property violations over the
Internet?
3. What are some ways organizations can guard against intellectual property violations on their
websites?
One way companies can protect themselves is through browse wrap agreements, which is the part of
the website that informs users about the conditions of using the site. These agreements should have
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STRATEGIC CASE 4: EATON CORPORATION: EXPERTS AT
TARGETING DIFFERENT MARKETS
Summary
Eaton Corporation has been one the most profitable companies, with its stock price surpassing the
government markets. Eaton markets to its business customers in a variety of ways. It uses digital
media such as its website to describe products, and also has a Success Stories page that describes
how Eaton technologies improved their customers’ operations. While the majority of Eaton’s
products are sold to business markets, some of its products also target end-use consumers. Most of
Eaton’s products represent high-involvement products for consumers due to the expense of the
is a truly multinational company with 55 percent of its revenues coming from outside the U.S. and 24
percent from developing countries. Eaton has found that an effective way of communicating with
global customers is through the use of digital media. Eaton maintains an active presence of
Facebook, Twitter, and YouTube, allowing the firm to answer customer questions and provide
updates. Eaton maintains different product categories on these social media sites to address different
target markets.
Questions for Discussion
1. How does Eaton target business and consumer markets? Are there any differences?
Eaton is more likely to use its sales force to market large business products because of greater risk. It
maintains a 24-hour customer service line to answer questions or address emergencies. Eaton uses
2. Describe ways that Eaton is addressing global challenges.
Eaton faces global challenges involving local regulations, sustainability, and ethics and compliance.
For instance, China is experiencing increases in safety laws, land prices and taxes, and minimum
wage laws. Eaton is locating more facilities in China to increase its localization so it can handle these
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3. How is Eaton using digital marketing to reach its customers?
To reach business customers, Eaton uses digital media such as its website to describe products, and
also has a Success Stories page that describes how Eaton technologies improved their customers’
operations. To help consumers learn about the quality of its products, Eaton offers a virtual tour of a