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Chapter 10: Digital Marketing and Social Networking 215

CHAPTER QUIZ

1. A ________ is a web-based meeting place for users to create a profile and communicate with other

users.

a. podcast

b. social network

c. connectivity platform

d. linked communication tool

e. virtual link

2. Marketers are taking advantage of mobile technology to help customers do all of the following

except________.

3. ________ is free publicity that often helps the company more than corporate messages do.

a. Interactivity

b. Enterprise 2.0

c. Company websites

d. Mobile advertising

e. Positive customer feedback

4. A digital consumer who regularly posts comments on a company’s blog is mostly likely a ________.

a. Conversationalist

b. Joiner

c. Collector

d. Critic

e. Spectator

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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,

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

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

on the Web 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

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5. How has new 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

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

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 e-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

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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ANSWERS TO APPLICATION QUESTIONS

1. 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

experiences.

Students should have a variety of examples of how Amazon enhances the consumer experience.

2. Social networking has become a popular method of communication not only for individuals

but for businesses as well. Visit the various social networking sites, such as Facebook and

Twitter, and identify how companies are utilizing each of these sites in their marketing

strategies.

Again, students should be able to find several companies using social media to communicate with

3. Some products are better suited than others to electronic marketing activities. For example,

Art.com specializes in selling art prints via its online store. The ability to display a variety

of prints in many different categories gives customers a convenient and efficient way to

search for art. On the other hand, General Electric has a website displaying its appliances,

but customers must visit a retailer to purchase them. Visit www.art.com and

www.geappliances.com and compare how each firm uses the electronic environment of the

Internet to enhance its marketing efforts.

Students will recognize several differences between the products of Art.com and GE. Students

4. Visit the information technology company website www.covisint.com and evaluate the

nature of the business customers attracted. Who is the target audience for this business

marketing site? Describe the types of firms currently doing business through this exchange.

What other types of organizations might be attracted? Is it appropriate to sell any banner

advertising on a site such as this? What other industries might benefit from developing

similar digital media exchange hubs?

Covisint targets several different business customers but features three groups on its homepage:

5. Based on the information provided in the text, identify and map your social habits on social

networking sites for the past week. Did you create content through blogs? Did you rate or

recommend products or companies? Did you post photos of yourself at particular events or

places on Facebook? Rate each of your online social activities according to how much

influence you think they have had upon your friends or followers. Use 0 if you believe a

particular activity had zero influence, 1 for slight influence, 2 for moderate influence, and 3

for significant influence. After you are finished ranking how much of an impact each of

your online activities has had upon your friends and followers, determine whether you are

an influencer of consumption behaviors. Do you think your friends would agree with you ?

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ANSWERS TO INTERNET EXERCISE

Victors & Spoils

To learn more about the world’s first creative ad agency built on crowdsourcing principles, including

1. How can Victors & Spoils be used to outsource advertising campaigns through co-creation

and mass collaboration?

Victors & Spoils has over 6,000 global community members working to develop ideas for

2. Victors & Spoils and crowdsourcing is built on the foundation that good ideas should come

from anywhere. Is it possible that this new approach will eliminate traditional ad agencies

and creative departments?

Student answers will vary. Although crowdsourcing may change marketing and other industries,

access to more ideas, crowdsourcing may challenge the traditional advertising process.

3. If you want to engage in activities related to what would be found in the creative

department of an advertising agency, how can Victors & Spoils help you launch your

career?

According to the website, Victors & Spoils provides three key membership benefits:

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ANSWERS TO DEVELOPING YOUR MARKETING PLAN

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

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

was slow to gauge and often inaccurate. New digital media have improved the flow of

communications in both directions, allowing marketers to design better and more targeted campaigns

while also giving consumers more power than ever before.

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.

Again, student answers will vary. Each student will have a different marketing plan, and each

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COMMENTS ON THE CASES

VIDEO CASE 10.1: ROGUESHEEP’S POSTAGE APP: THE

POSTCARD OF THE FUTURE.

Summary

This case discusses how a company is using mobile apps to supplant traditional postcards with digital

ones. RogueSheep created the “Postage” iPhone app, a mobile app that allows users to choose from over

Questions for Discussion

1. How do you think businesses could effectively use RogueSheep postcards in their

communications program?

Businesses can use the app to send digital postcards to remind customers about their products or

2. Is it possible for RogueSheep to advance its digital postcards to those who do not have access to

iPhone apps?

3. What are the advantages of the RogueSheep digital postcard over traditional postcards?

Advantages include saving money on postcard and mailing costs, the speed with which a digital

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CASE 10.2: TWITTER EMERGES AS A DIGITAL MARKETING TOOL

Summary

This case discusses how companies have begun to use the social networking site Twitter as a new and

effective marketing tool. Businesses big and small are using Twitter as a way to generate interest in

their companies. Some of these companies have achieved immense success. Wine makers have used

becoming a major opportunity to connect with consumers.

Questions for Discussion

1. Why is Twitter appealing to companies?

Businesses are finding Twitter to be an effective communications tool for attracting consumers.

2. How could Twitter be used as a tool to strengthen customer relationships and to gather

consumer feedback?

Companies can utilize the site to address consumer concerns and even dialogue with consumers.

3. What are some of the drawbacks of using Twitter as a marketing tool?

Students may list several drawbacks to the third question. One might be that people could

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STRATEGIC CASE 4: MCDONALD’S CONTINUES TO BE A GLOBAL

MARKETING SUCCESS

Summary

This case discusses how McDonald’s has evolved its marketing strategies to respond to the “what,

when, where, why, and how” of its global customer base. In an extremely competitive landscape, this

Questions for Discussion

1. In what ways is McDonald’s generating positive attitudes toward its brand and offerings?

Students should be able to find several answers in the case. McDonald’s excels at adapting its

2. Why would McDonald’s select businesses as a target market for its Arch Cards?

Obviously, businesses are a potentially lucrative target market for McDonald’s. Although the top

3. What are the advantages and disadvantages of McDonald’s using franchising to grow more

quickly in China?

Using franchising would help McDonald’s to grow faster with less investment. The brand would

4. Do you agree with how McDonald’s handled the situation with Twitter messages marked

#McDStories? Explain, in terms of addressability, accessibility, interactivity, connectivity,

and control, why you think this part of McDonald’s Twitter campaign didn’t go as planned.

Student answers will vary, but they should use the terms from the books as a guide. Most answers

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INSTRUCTIONS FOR ROLE-PLAY TEAM CASE

ROLE-PLAY TEAM CASE EXERCISE 3: PARCEL INTERNATIONAL

EXPRESS

This role-play team case exercise is designed to simulate actual marketing decision making in the real

world. Students take on assigned roles and then participate in a team discussion of the case.

Preparation

Break the class into teams of 5. The entire team should read the Background section.

Each student will take on a role of a particular employee within the organization. Even though all of the

Team Meeting

Students should try to accurately represent the motivations and interests of their individual roles during a

team discussion (15-45 minutes depending on class activities). Teams should discuss each of the issues in

the case and complete any activities mentioned in the Background section.

The issues for Parcel International Express include:

• PIE has fallen behind its competitors, even its business customers. Its market share in this

industry also appears to be decreasing.

This case will require students to complete the following activities:

• Develop a plan for improving customer relationships, dealing with employee issues related to

This may be used solely as an in-class activity, or students can finalize reports outside of class.

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Class Discussion (optional)

After the team meetings, instructors may choose to have teams discuss their findings and solutions