Chapter 18—Social Media and Marketing TRUE/FALSE 1. For most people, social media is a marketing experience. Answer: False Rationale: For most people, social media is meant to be a social experience, not a marketing experience. 2. A new alt-country band, Pike 27, wants to use a social media Web site to generate some buzz about their first album. Because of its safe, uncluttered, ad-free setting, MySpace would be a good site for the band to choose. Answer: False Rationale: What initially attracted users to Myspace (the freedom to code your own page, play with widgets and music, freely explore other people’s pages) became too much and drove users away—often to Facebook. 3. Social commerce combines social media with the basics of e-commerce. Answer: True Rationale: Social commerce leverages social media platforms to facilitate online buying and selling, integrating social interaction with e-commerce functionalities. 4. In 2000, Jones Soda used its Web site to ask its mostly teenage customers to suggest new flavors, names, and labels and let other customers vote on which flavors should be introduced into stores. Jones Soda was practicing co-creation. Answer: False Rationale: Using consumers to develop and market product is called crowdsourcing. 5. Erica was so impressed by the customer service she received from Mindware Toys that she tweeted all of her followers about her experience. Erica’s tweets are a good example of owned media. Answer: False Rationale: Erica’s tweets are an example of earned media, not owned media. Earned media includes viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence. 6. Marketers need to understand that, in cyberspace, paid media is essentially dead; consequently, they should no longer expend any resources into paid media. Answer: False Rationale: Paid media is not dead but should serve as a catalyst to drive customer engagement. 7. Customers are on social media, and they expect their favorite brands will be there as well. Answer: True Rationale: Customers use social media to engage with brands and expect their favorite companies to have a presence there for interaction and support. 8. The best way a company can increase sales using social media is to improve customer service. Answer: False Rationale: The clearest path to increasing the bottom line using social media is to get customers talking about products and services, which usually translates into sales. 9. While hundreds of metrics have been developed to measure social media’s value, these metrics are meaningless unless they are tied to key performance indicators. Answer: True Rationale: Metrics need to be aligned with key performance indicators (KPIs) to effectively measure social media’s impact on business goals. 10. Monette has posted over 100 book reviews on Amazon.com. She also frequently reviews products and services on opinions and posts her impressions of local restaurants on Yelp. As a social media user, Monette would best be characterized as a joiner. Answer: False Rationale: Joiners are those who maintain a social networking profile and visit other sites. Monette would best be characterized as a critic because she posts comments, ratings, and reviews of products and services on blogs and forums. 11. Research indicates that the number of people who contribute content on social media sites is actually decreasing. Answer: True Rationale: Studies have shown a decline in active content contributors on social media, with more users consuming rather than creating content. 12. A publicly accessible Web page that serves as an interactive journal is called a tweet. Answer: False Rationale: A publicly accessible Web page that serves as an interactive journal is called a blog. A tweet is the name given to a post on Twitter. 13. Anil hopes to use social media to find some new customers for his bicycle shop. Writing a corporate blog that discusses the shop’s inner workings would be a good tool for this purpose. Answer: True Rationale: A corporate blog can attract new customers by providing insights into the business, sharing expertise, and engaging with the community. 14. Mary is a stay-at-home mom who loves to cook. She shares recipes and cooking tips on her popular blog, What’s Cooking with Mary. Because of her blog’s popularity, many food and cookware companies send her products to try, hoping for a good review. Sometimes Mary even receives money in exchange for a review. Under Federal Trade Commission regulations, Mary is obligated to disclose any financial relationship she may have with these companies. Answer: True Rationale: FTC regulations require bloggers to disclose any financial relationships or received products to ensure transparency and trust with their audience. 15. A large part of Twitter’s success results from the one-dimensional nature of the platform—it is limited to text messages only, which makes it simpler for people to use than platforms that allow the sharing of photos or external links. Answer: False Rationale: Twitter is actually a very versatile platform, and tweets can be amended with photos, videos, and external links. 16. Facebook can best be characterized as a media sharing site. Answer: False Rationale: Facebook is best characterized as a social networking site. 17. Estefan works as a production editor for a major textbook publisher. He hopes to build a list of freelancers whom he can call on to edit and proofread materials for his company. LinkedIn would be a good place for Estefan to find such individuals. Answer: True Rationale: LinkedIn is a professional networking site where Estefan can connect with and find qualified freelancers for editing and proofreading. 18. Teenage boys make up the vast majority of YouTube users. Answer: False Rationale: YouTube attracts a diverse base of users: Age and gender demographics are remarkably balanced. 19. Alison visits Reddit and Digg several times each day, where she posts links to material she finds interesting. She also votes either up or down links that others have posted based on whether she liked or disliked them. Alison clearly enjoys using social news sites. Answer: True Rationale: Alison's active participation in posting and voting on links indicates her enjoyment of social news sites like Reddit and Digg. 20. A review site allows consumers to post, read, rate, and comment on opinions regarding a wide variety of goods and services. Answer: True Rationale: Review sites are designed for consumers to share their opinions and rate products and services, facilitating informed purchasing decisions. 21. Marketers have largely been frustrated in their attempts to engage with consumers through virtual worlds and online gaming because consumers of these environments are usually so intent on playing the games that they notice little else. Answer: False Rationale: The field of virtual worlds is a growing consideration for social media marketing. Several businesses have developed advantageous presences in virtual world environments. 22. Because of the widespread adoption of Android-based phones and other Smartphones, millions of applications have been developed for the mobile market. Answer: True Rationale: The popularity of smartphones has led to the development of millions of mobile applications catering to various needs and interests. 23. This morning, Katrina received the following text message on her cell phone: Don’t forget your haircut appointment today at 10 am with Jane at Hair Now. See you soon. This is an example of a mobile ad. Answer: False Rationale: Hair Now is using mobile marketing, but this specific example would best be characterized as an SMS (short message service), not a mobile ad. 24. Marketers have so far found few ways to integrate apps into their marketing strategies. Answer: False Rationale: An app can generate customer engagement when it is well branded and integrated into a company’s overall marketing strategy. 25. Sebastian operates a local coffee shop. He publishes a blog about the shop but updates it only occasionally. He usually posts entries on coffee-related trivia. Every now and then, he posts an entry promoting a new product. Given Sebastian’s relatively weak online presence, a marketing-oriented widget would likely be just the thing to generate some buzz about his coffee shop. Answer: False Rationale: A marketing-oriented widget can be an effective tool for organizations that regularly publish compelling online content, such as news, daily specials, or coupons—but Sebastian’s blog would not seem to be one of them. MULTIPLE CHOICE 1. Social media: A. cannot be compared to traditional advertising in any meaningful way. B. is thought of by most people as any tool or service that assists conversation. C. has less sophisticated ways of measuring how marketers meet and interact with consumers than traditional advertising. D. offer more one-to-one ways to meet consumers than traditional marketing media. E. has not yet had a major impact on the way marketing works. Answer: D Rationale: In many ways, social media can be defined relative to traditional advertising. For example, while traditional marketing media offers a mass media method of interacting with consumers, social media offers more one-to-one ways to meet consumers. 2. All of the following are examples of social media tools and platforms EXCEPT: A. a media sharing Web site. B. an AM/FM transistor radio. C. an iPhone. D. a blog. E. Twitter. Answer: B Rationale: Social media includes tools and platforms such as social networks, blogs, microblogs, and media sharing sites. 3. Marla is a 55-year-old woman who wants to use a social network site to stay in touch with her son, who is away at college. She also hopes to make contact with some old high school friends. Which of the following is Marla most likely to use for this purpose? A. Last.fm B. YouTube C. Facebook D. Bebo E. Flickr Answer: C Rationale: The largest area of growth in new profiles on Facebook is the baby boomer segment, who use it as a way to connect with old friends and keep up with family. Other social networks, like Last.fm and Bebo, offer alternative networks to other demographics. YouTube and Flickr are media sharing sites, not social network sites. 4. Noah is a budding photographer who is proud of his work. He wants to share his photos with others online. Which of the following is Noah MOST likely to use to share his photos? A. Twitter B. Google C. Bebo D. Flickr E. Groupon Answer: D Rationale: Flickr is a popular photo sharing site, where millions of people upload new photos daily. 5. Groupon.com offers discounts on products and services in specific cities. The concept of Groupon is that the discount for the product or service can be claimed only if a certain number of people purchase it. Groupon would BEST be described as a: A. media sharing site B. microblog C. social networking site D. virtual world E. social commerce site Answer: E Rationale: Social commerce is a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist the online buying and selling of products and services. 6. More and more companies are increasing their interactive marketing budgets. Most of this investment will be made in: A. search marketing. B. display advertising. C. mobile marketing. D. social media. E. e-mail marketing. Answer: A Rationale: Most spending in this area will go to search marketing (almost doubling by 2014), but substantial investments will also be made in mobile marketing and social media. 7. Because of the influence of social marketing, the interaction between producer and consumer has become LESS focused on: A. engaging. B. listening. C. understanding. D. entertaining. E. influencing. Answer: D Rationale: Because of social media, the interaction between producer and consumer has become less about entertaining and more about listening, influencing, and engaging. 8. Using consumers to develop and market product is called: A. crowdfunding. B. co-creation. C. brainstorming. D. closed innovation. E. crowdsourcing. Answer: E Rationale: This is the definition of crowdsourcing, which describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people. 9. Which of the following is an example of owned media? A. The tweet that Winnie—who works out regularly at FitBody Bootcamp—sent to her followers about how much weight she’s lost since she’s been working out B. An e-mail sent by Garrett to the manager of FitBody Bootcamp, asking about what types of workout programs the gym offers C. The Facebook page created by FitBody Bootcamp to let members know about special events at the gym D. The display advertisement that FitBody Bootcamp purchased on the local newspaper’s Web site E. The personal blog “Feeling the Burn,” maintained by Andy, who is one of the instructors at FitBody Bootcamp Answer: C Rationale: Owned media is online content that an organization itself creates and controls. 10. Content that a company purchases to be placed online is called: A. owned media. B. paid media. C. controlled media. D. earned media. E. broadcast media. Answer: B Rationale: This is the definition of paid media, which is similar to marketing efforts that use traditional media, such as newspaper, magazine, and television advertisements. 11. One reason why negative customer comments and complaints are important to an organization is that they can: A. quickly be hidden from competitors. B. be used in future advertising campaigns. C. help the organization identify “problem” customers, who are then typically removed from mailing lists. D. bring to light unknown brand flaws. E. generate sympathy for the organization when consumers realize that “no one is perfect”. Answer: D Rationale: Negative comments and complaints are of particular importance to an organization because they can illuminate unknown brand flaws and because they are the comments that tend to go viral. 12. Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resource would best meet their needs? A. A listening platform with key word report capabilities B. An insight platform that offers online focus group solutions C. Web analytics software D. An advanced customer database with predictive application E. A social customer relationship management system Answer: A Rationale: Such a platform would allow the organization to track discussions, understand sentiment, and identify influencers to improve overall marketing strategy. See Exhibit 18.1 13. After establishing a listening platform, an organization should: A. develop a list of objectives for its social media team to accomplish B. attempt to develop a unique social media platform to generate buzz about the brand C. identify potential consumers D. decide which tools and platforms to use as part of its social media strategy E. implement measurement tools to determine the benefits of social media Answer: A Rationale: These objectives must be developed with a clear understanding of how social media changes the communication dynamic with and for customers. 14. Social media strategist Jeremiah Owyang has identified eight stages of effective listening. Which of the following scenarios is an example of “Stage 8” listening? A. An online clothing retailer asks customers to complete a satisfaction survey, which it uses to improve customer service B. A local restaurant searches Twitter to find out what people are saying about today’s specials C. A software company allows customer service representatives to make real-time responses to customer queries D. A soft drink manufacturer uses social media notification tools to learn what the competition might be up to E. An online bookseller examines customers’ product reviews, comments, and past purchases to suggest additional titles customers might enjoy Answer: E Rationale: Stage 8 listening involves being proactive and anticipating customer demands; organizations at this level examine previous patterns of data and social behavior to anticipate customer needs. See Exhibit 18.1. 15. All of the following are practical ideas that marketing managers should consider when setting social media objectives EXCEPT: A. promoting products and services. B. listening and learning. C. building relationships and awareness. D. creating static messages to reach mass audiences. E. reaching out to unhappy customers and engaging them directly. Answer: D Rationale: Attempting to reach a mass audience with a static message will never be as successful as influencing people through conversation. 16. Crock of Love prepares and delivers from-scratch meals directly to their customers’ homes. Crock of Love has its own Web site, Facebook page, and Twitter account, but the company’s owner, Nikki, frequently makes helpful comments on food-related blogs and participates in online discussions about recipes and desserts. In so doing, Nikki is MOST LIKELY trying to: A. control what is being said online about Crock of Love. B. improve Crock of Love’s reputation. C. measure customer satisfaction with Crock of Love. D. improve customer service. E. monitor Crock of Love’s competitors. Answer: B Rationale: Organizations can position themselves as helpful and benevolent—and thus improve their reputations—by participating in other forums and discussions. 17. Which of the following statements about the use of social media in marketing is TRUE? A. All marketers understand that social media is mostly about return on investment (ROI). B. Marketers have plenty of hard evidence as to the effectiveness of the measurements and metrics that track social media. C. Given the relative ease and efficiency with which organizations can use social media, a positive return on investment is likely for many—if not most—organizations. D. Fewer than 30 percent of marketers plan on increasing their investments in social media. E. All of the above are true. Answer: C Rationale: Most marketers understand that social media is a worthwhile investment. 18. Without context, measurements are _____: A. Not very costly. B. invaluable. C. more accurate. D. hard to capture. E. meaningless. Answer: E Rationale: Without context, measurements are meaningless. 19. Which type of social media user posts comments, ratings, and reviews of products and services on blogs and forums? A. Critic B. Conversationalist C. Boaster D. Collector E. Assigner Answer: A Rationale: This is the definition of a critic. 20. Bethany follows several blogs every day and checks into YouTube frequently to watch the latest videos. She doesn’t have her own Web site, and she almost never makes any comments on the sites she visits; she just enjoys reading and watching. Bethany would best be characterized as which type of social media user? A. Creator B. Spectator C. Collector D. Joiner E. Inactive Answer: B Rationale: Spectators read blogs, listen to podcasts, watch videos, and generally consume media. 21. “Conversationalists” are social media users who: A. post comments, ratings, and reviews of products and services on blogs and forums. B. read blogs, listen to podcasts, and watch videos. C. visit many social media sites every day. D. post status updates on social networking sites and microblogging services such as Twitter. E. use RSS feeds to collect information and vote for Web sites online. Answer: D Rationale: The relatively new category of “conversationalists” represents 31 percent of social media users. 22. A publicly accessible Web page that functions as an interactive journal is called a(n): A. blog. B. profile. C. tweet. D. electronic diary. E. status page. Answer: A Rationale: This is the definition of a blog, on which readers can post comments on the author’s entries. 23. _____ disseminate marketing-controlled information and are effective platforms for developing thought leadership and fostering better relationships with stakeholders. A. press releases B. corporate blogs C. virtual worlds D. radio advertising E. media sharing sites Answer: B Rationale: Corporate blogs disseminate marketing-controlled information and are effective platforms for developing thought leadership, fostering better relationships with stakeholders, maximizing search engine optimization, attracting new customers, endearing the organization with anecdotes and stories about brands, and providing an active forum for testing new ideas. 24. Corina is a big fan of the British television program Doctor Who. She writes about her love of all things Whovian on her ______, called Wibbly Wobbly Ramblings, where readers can post comments about what she has written. A. social news site B. electronic diary C. toolbox D. blog E. virtual world Answer: D Rationale: Corina has a blog about Doctor Who. 25. The most popular microblog is: A. Twitter. B. YouTube. C. Facebook. D. Tumblr. E. Poink. Answer: A Rationale: Twitter is the most popular microblogging platform; it requires that posts be no more than 140 characters long. 26. Patrick goes to the movies three or four times each week. He operates a blog where he writes long, detailed reviews of the latest releases. Patrick’s blog would best be described as a: A. media sharing blog. B. Microblog. C. noncorporate blog. D. collaborative blog. E. corporate blog. Answer: C Rationale: Noncorporate blogs are independent and not associated with the marketing efforts of any particular company or brand. The information on noncorporate blogs is not controlled by marketers. 27. Blogs with strict post length limits are called: A. password-protected blogs. B. beta blogs. C. Miniblogs. D. private blogs. E. Microblogs. Answer: E Rationale: This is the definition of microblogs. 28. Marcie and Alyssa are going to the football game this afternoon. Alyssa notices that Marcie is sitting at her computer, and she calls out to ask if Marcie is ready to go. “Just a second,” replies Marcie. “I just want to tweet to everyone where we’ll be.” Because Alyssa knows a lot about social media, she knows that Marcie is: A. sending e-mail messages to their friends. B. posting a message on Facebook. C. leaving voice mail messages on their friends’ cell phones. D. using MapQuest to find out how to get to the football stadium. E. posting a message on Twitter. Answer: E Rationale: Twitter posts are commonly called tweets. 29. A company would probably NOT want to use Twitter to: A. provide a customer with complex, hard-to-understand instructions on how to use a product. B. direct customers to its corporate blog. C. promote a brand-new product. D. share links to the official company Web site. E. reply to customer queries. Answer: A Rationale: Twitter’s 140-character limit would likely make it difficult for a customer to follow difficult instructions. The company could, however, use Twitter to direct the customer to a Web page where the instructions could be found. 30. A Web site that allows individuals to connect with friends, peers, and business associates is called a: A. virtual world. B. social networking site. C. media sharing site. D. social news site. E. microblog. Answer: B Rationale: This defines a social networking site, which people use to make connections around shared interests, shared environments, or personal relationships. 31. Which of the following is NOT a social networking site? A. Match.com B. Last.fm C. LinkedIn D. Facebook E. All of the above are social networking sites. Answer: E Rationale: All of these are social networking sites. 32. Brands, organizations, and nonprofits that use Facebook: A. have thus far been unsuccessful in their attempts to use the platform to create viral marketing campaigns. B. are public and are thus subject to search engine indexing. C. must never use the Facebook Wall to communicate with consumers. D. need to use all of Facebook’s privacy options to ensure that only the right people have access to company information. E. create profiles, as opposed to pages. Answer: B Rationale: As opposed to individual profiles, corporate Facebook pages are public and subject to search engine indexing. 33. From a marketing standpoint, the most useful Facebook feature is probably _____, which allows a brand to communicate directly with fans via status updates. A. the Profile page B. the search engine C. the Fans list D. the Wall E. the Real or Fake application Answer: D Rationale: The Wall allows marketers to build databases of interested stakeholders. 34. Of the following, who is MOST likely to be a LinkedIn user? A. Erin, a 13-year-old junior high student and music lover B. Mitch, a 24-year-old songwriter who hopes to make it big in Nashville C. Sharika, a 35-year-old attorney just opening her own practice D. Jose, a 50-year-old Los Angeles Dodgers fan looking for conversation with other baseball lovers E. Amanda, a 70-year-old retiree and avid cook Answer: C Rationale: LinkedIn is used primarily by professionals who wish to build their personal brands online and businesses who are recruiting employees and freelancers. 35. TwitPic, Flickr, and Photobucket are all examples of: A. media sharing sites. B. corporate blogs. C. virtual worlds. D. microblogs. E. social networking sites. Answer: A Rationale: Media sharing sites allow users to upload and distribute multimedia content like videos and photos. 36. A movie studio wants to give fans a sneak peek of the trailer for an upcoming film. Which of the following would be the best platform for the studio to use? A. Picasa B. Photobucket C. YouTube D. Imgur E. TwitPic Answer: C Rationale: YouTube is the highest-trafficked video-based Web site. The other answer choices are photo sharing sites. 37. Videos made by teens that focus on fashion are called: A. flames. B. hauls. C. caches. D. feed dumps. E. heaves. Answer: B Rationale: Some teen clothing brands build followings on YouTube by posting hauls. 38. Which of the following is the best description of a podcast? A. Podcasts are like library card catalogs that users can search electronically to find information they need quickly and efficiently. B. Podcasts are like radio shows that are distributed through various means and not linked to a scheduled time slot. C. Podcasts are like newspapers that people can upload to their Smartphones and read anywhere. D. Podcasts are like calendars that people can use to keep track of the important events in their lives. E. Podcasts are like books that users can read directly on their PC screens. Answer: B Rationale: Podcasts are digital audio or video files that are distributed serially for other people to listen to or watch. 39. A _____ allows users to decide which content is promoted on a given Web site by voting that content up or down. A. media sharing site B. social networking site C. review site D. virtual world E. social news site Answer: E Rationale: This is the definition of a social news site, where users post news stories and multimedia for the community to vote on. 40. Social bookmarking sites such as Delicious and StumbleUpon differ from social news sites such as Reddit and Digg in that: A. the objective of their users is to collect, save, and share interesting and valuable links. B. they allow users to edit the stories they find for accuracy. C. users can change their profiles and update their status whenever they wish. D. they treat location-based micro-networking as a game. E. posts are limited to no more than 140 characters in length. Answer: A Rationale: On these sites, users categorize links with short, descriptive tags; search the sites’ databases of links by specific tags; or add their own tags to others’ links. 41. Location-based social networking sites: A. are a hybrid of media sharing and social networking sites. B. distribute digital audio and video files serially for other people to listen to or watch. C. are essentially short messaging systems designed primarily for internal communication. D. combine the fun of social networking with the utility of location-based GPS technology. E. allow users to archive and share photos and interesting external links. Answer: D Rationale: Location-based social networking sites combine the fun of social networking and location-based GPS technology. 42. Molly is a frequent Foursquare user; she enjoys earning badges and special statuses based on the number of: A. reviews she has written. B. visits she makes to particular locations. C. times she “Likes” a certain link or post. D. followers she has. E. times her posts are retweeted. Answer: B Rationale: Foursquare, one of the most popular location sites, treats location-based micro-networking as a game: Users earn badges and special statuses based on their number of visits to particular locations. 43. Which type of social media site allows users to post, read, rate, and comment on opinions about many different kinds of products and services? A. A virtual world B. A review site C. A corporate blog D. A media sharing site E. A microblog Answer: B Rationale: This defines a review site. Research indicates that people trust the consumer opinions they read on Internet review sites much more than traditional advertising. 44. Customers and business owners can do all of the following on the Yelp Web site EXCEPT: A. business owners can set their pages to block negative reviews. B. customers can write about bad experiences they’ve had at local businesses. C. business owners can edit their organizations’ pages. D. customers can read about what others think about particular businesses. E. business owners can respond directly to customers who have written reviews. Answer: A Rationale: Yelp allows customers to write and read reviews of local businesses. Owners can edit their organizations’ pages and respond directly to customers, but they cannot block negative reviews. 45. By far, the largest social network for gaming is: A. Twitter. B. LinkedIn. C. MySpace. D. Facebook. E. YouTube. Answer: D Rationale: Facebook is by far the largest social network for gaming, and nearly 25 percent of people play games within social networking sites like Facebook and MySpace. 46. Which of the following games is probably the MOST appropriate for marketing and advertising? A. Dungeon Runners B. World of Warcraft C. Texas Hold’em Poker D. Legends of Future Past E. The Chronicles of Spell born Answer: C Rationale: Social and real-world–like titles (as opposed to fantasy games) are the most appropriate for marketing and advertising. 47. Danny is a 19-year-old college student and avid gamer. Based on his demographics, which of the following games is Danny MOST likely to play regularly? A. Café World B. Mafia Wars C. Bejeweled Blitz D. Farmville E. World of Warcraft Answer: E Rationale: Massive multiplayer online games (MMOGs) such as World of Warcraft target 18- to 34-year-old males. The typical player of social games such as Farmville or Bejeweled Blitz is a 43-year-old woman with a full-time job. 48. Which of the following statements about online gaming is CORRECT? A. Games such as Angry Birds and CityVille have proven unattractive to marketers because it takes so long to play them. B. Almost 90% of people play games within social networking sites or on mobile devices. C. The typical online gamer is a 43-year-old woman with a full time job and college education. D. Social gaming is one of the few areas of social media that is not growing. E. The demographic of gamers who favor mobile devices tends to skew older than those who play on traditional PCs. Answer: C Rationale: This correctly describes the typical online gamer. 49. SMS is different from MMS in that: A. SMS allows the attachment of multimedia to text messages. B. SMS is designed specifically for viewing and navigation on mobile devices. C. MMS allows the attachment of multimedia to text messages. D. MMS is designed specifically for viewing and navigation on mobile devices. E. SMS and MMS are actually identical marketing tools. Answer: C Rationale: MMS is similar to SMS but allows the attachment of images, videos, ringtones, and other multimedia to text messages. 50. Which mobile marketing tool allows 160-character text messages to be sent to and from cell phones? A. Mobile ads B. SMS C. Web widgets D. MMS E. MOBI Answer: B Rationale: SMS (short message service) is typically integrated with other tools. 51. Much of the growth in social media sites can be attributed to: A. good old-fashioned word-of-mouth promotion. B. new platforms like iPads and Smartphones. C. media hype. D. the proliferation of new Web sites like Flickr and Reddit. E. new technology uses for social media. Answer: B Rationale: Much of the excitement in social media has centered on Web sites and new technology uses, but much of social media’s growth lies in new platforms. The major implication of new platforms mean consumers can access popular social media sites from almost anywhere. 52. _____ percent of the world’s mobile phones can receive text messages. A. 25 B. 40 C. 55 D. 75 E. 90 Answer: D Rationale: Worldwide, there are almost 5 billion mobile phones in use, more than 25 percent of which are smartphones and 75 percent of which can receive text messages. 53. Modern mobile advertising as a viable marketing strategy has become possible primarily because of the development of: A. the microchip. B. the PC. C. Smartphone technology. D. tablet laptops. E. GPS technology. Answer: C Rationale: With a Smartphone, individuals can read a blog, post to Facebook, write an e-mail, play a multiplayer game, use GPS technology—among many other tasks. Smartphone technology has opened the door to modern mobile advertising as a viable marketing strategy. 54. Johanna is a loyal customer of The Beanery, a regional coffee shop chain. Whenever Johanna is found to be within a geofenced area owned by The Beanery, she receives a text message on her BlackBerry offering her money off a coffee drink at a nearby store. The Beanery appears to be using: A. stealth marketing. B. viral marketing. C. Micro-networking. D. Bluetooth marketing. E. Widgets. Answer: D Rationale: With Bluetooth marketing, a signal is sent to Bluetooth-enabled devices, allowing marketers to send targeted messages to users based on their geographic locations. 55. One difference between apps and widgets is that: A. widgets are often cheaper to develop than apps. B. apps cannot be used in a mobile-ready format. C. widgets cannot be run entirely within online platforms. D. apps tend to broaden an organization’s listening system, while widgets narrow it. E. apps offer new content only, while widgets offer new and already-existing content. Answer: A Rationale: Widgets are software applications that run entirely within existing online platforms. They are often cheaper than apps to develop. 56. One of the most recent developments on the social media scene is that: A. it will soon be possible to repost another user’s message on Twitter. B. organizations will be able to host virtual networking events and “meet and greets” in the virtual world. C. searches on Bing will feature a Facebook module that shows you what your friends have liked as it relates to the search. D. marketers will be able to send short, 160-character text messages to your cell phone. E. YouTube users will not only be able to watch videos, they will also be able to upload their own videos to the site. Answer: C Rationale: The partnership linking bringing “like” data from Facebook to Bing searches is expected to be one of the next big things in social media. The other answer choices have been part of the social media scene for quite a while now. See Exhibit 18.3. Hallmark Cards Hallmark Cards is just one of thousands of companies that have a strong online presence. Hallmark’s Twitter account and Facebook page allow the company to talk directly to customers and also lets the customers talk to each other. Hallmark Social Calendar is a Facebook app that helps users stay on top of special events like birthdays and anniversaries; customers can use the app to send electronic cards to their friends’ PCs and cell phones. In addition, Hallmark operates several blogs, where it shares anecdotes about the company and often solicits opinions on various aspects of greeting card design and on ideas for gifts and their pricing. The company encourages Facebook fans to talk about their lifestyles and even upload photos of themselves so that it can better understand its market. The conversations consumers have with each other often result in interesting insights, such as gift ideas for specific occasions and the prices they are willing to pay for different gifts. 57. Refer to Hallmark Cards. When Hallmark asks it customers to weigh in on product design and pricing, it is practicing: A. virtual volunteering. B. mass customization. C. scripting. D. crowdsourcing. E. social commerce. Answer: D Rationale: Using consumers to develop and market product is called crowdsourcing. 58. Refer to Hallmark Cards. Hallmark’s Facebook page is best characterized as: A. owned media. B. secured media. C. shared media. D. paid media. E. earned media. Answer: A Rationale: Owned media is online content that an organization creates and controls. 59. Refer to Hallmark Cards. Kimberlee is a big fan of Hallmark products. She often uploads photos of her Hallmark ornament collection to the company’s Facebook page, she reads and comments on Hallmark blog posts, and she loves chatting with and tweeting other Hallmark lovers. What type of social media user is Kimberlee? A. A critic B. A joiner C. An inactive D. A noob E. A collector Answer: B Rationale: Joiners maintain a social networking profile and visit other sites. 60. Refer to Hallmark Cards. The blog operated by Hallmark Cards is an example of a: A. corporate blog. B. media sharing site. C. Microblog. D. noncorporate blog. E. location-based social networking site. Answer: A Rationale: Corporate blogs are sponsored by a company or one of its brands and are maintained by one or more of the company’s employees. 61. Refer to Hallmark Cards. Which of the following is an example of Hallmark’s use of mobile marketing? A. Asking customers’ opinions about products B. Encouraging customers to talk about their lifestyles C. Establishing a Twitter account D. Enabling customers to send electronic cards to friends’ cell phones E. Sharing company anecdotes on its blog Answer: D Rationale: Mobile marketing refers to marketing on or with a mobile device, such as a mobile phone. Allowing customers to send cards to their friends’ cell phones is one way Hallmark is using mobile marketing. Using Social Media Effectively Many marketers define their social media objectives around five core concepts: (1) listening––understanding what customers are saying and who those customers are, (2) talking––promoting products/services through conversations with customers, (3) energizing––finding enthusiastic customers and using them to sell to others, (4) supporting––enabling customers to help one another, and (5) embracing––using customers as a source of product innovation. Marketers should also keep in mind that, more and more, customers expect companies to use social media. According to a recent survey, more than half of all consumers want ongoing conversations with companies and brands—and of consumers who use social media themselves, a whopping 85 percent believe that companies should have an active social media presence. Marketers who embrace such consumers can harness the power of social media and ultimately improve profits and brand loyalty. 62. Refer to Using Social Media Effectively. Consumers’ opinions about the value of social marketing reflect: A. the decreasing influence of marketing as an important factor in business. B. the fact that paid media is no longer relevant in the marketing world. C. the widespread shift in marketing from one-to-many communication to many-to-many communication. D. marketers’ continuing reluctance to wholeheartedly dive into social media. E. customers can be easily manipulated by the onslaught of information available in the social media universe. Answer: C Rationale: Social media allows marketers to have conversations with consumers, which more and more consumers are demanding. 63. Refer to Using Social Media Effectively. Of the social media objectives often defined by marketers, the foundational objective is undoubtedly: A. energizing. B. talking. C. embracing. D. supporting. E. listening. Answer: E Rationale: The first action a marketing team should take when initiating a social media campaign is just to listen. Only after establishing an effective listening platform should an organization move on to developing a list of objectives for its social media team to accomplish. 64. Refer to Using Social Media Effectively. Which of the following resources would be MOST likely to help an organization achieve the goal of energizing customers? A. Buzzillions, a product review site that works with retailers to identify customers who have purchased products and asks them to write reviews B. Google Analytics, a free service that shows businesses how visitors found their site and how they interact with it C. Site Volume, a service that measures the frequency of search terms across Digg, MySpace, and YouTube D. Converseon, a service that helps marketers find out what people are saying about their product/brand on newsgroups, blogs, podcasts, and social media sites E. InnoCentive, a service that enables its clients to source ideas from their customers Answer: A Rationale: The clearest path to increasing sales using social media is to get customers talking about products and services. Ratings and reviews are a good way to achieve this; they are probably the easiest way to energize customers to sell to others. 65. Refer to Using Social Media Effectively. One way an organization might effectively use noncorporate blogs to help achieve its social media goals is by: A. providing bloggers with products and/or money in exchange for a review. B. flooding the comments section of such blogs with positive comments about the brand or company. C. purchasing the blogs from the owners and converting them into corporate blogs. D. endearing the organization with anecdotes and stories about the brand. E. designing their own corporate blogs to mimic the look of their noncorporate rivals. Answer: A Rationale: Because noncorporate blogs contain information not controlled by marketers, they are often perceived to be more authentic than corporate blogs, which can be highly beneficial to an organization. ESSAY 1. What is social media? Answer: Social media is any tool or service that uses the Internet to facilitate conversations. Social media have changed the way that marketers can communicate with their brands—from mass messages to intimate conversations. As marketing moves into social media, marketers must remember that for most people, social media are meant to be a social experience, not a marketing experience. 2. Social media offers more one-to-one ways for marketers to meet customers. Use this fact to identify five implications for marketers. Answer: 1. Marketers must realize that the often do not control the content. Having a great ad campaign is not enough—the product or service must be great, too. 2. The ability to share experiences amplifies the impact of word of mouth to whole new levels that can eventually affect the bottom line. Many companies are developing mascots (like Progressive’s Flo) to drive their marketing message on social media. 3. Social media allows marketers to listen. Domino’s, Dell, and Gatorade exemplify this. 4. Social media has more sophisticated methods of measuring how marketers meet and interact with customers than traditional advertising. Technology changes daily, offering consumers new ways to experience social media platforms. 5. Social media allows marketers to have much more meaningful and direct conversations with customers. It offers a form of relationship building that will ultimately bring the customer and brand closer. 3. How has social media changed the way marketers and consumers communicate with one another? How has it changed who is in control of the communication? Answer: Social media has facilitated the shift from one-to-many communication to many-to-many communication. Instead of simply creating a brand advertisement with no way to receive consumer feedback, social media allows marketers to have conversations with consumers, forge deeper relationships, and build brand loyalty. Social media also allows consumers to connect with each other, share opinions, and collaborate on new ideas according to their interests. With social media, the audience is often in control of the message, the medium, the response, or all three. Some companies have had trouble adjusting to this new distribution of control, but the focus of social marketing is on the audience and the brand must adapt to succeed. The interaction between producer and consumer becomes less about entertaining and more about listening, influencing, and engaging. 4. Distinguish between owned media and earned media and give several examples of each. Answer: OWNED MEDIA is online content that an organization creates and controls; examples include blogs, Web sites, Facebook pages, and other social media presences. EARNED MEDIA is a public relations term connoting free media such as mainstream media coverage; examples include viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence. 5. To leverage owned media, earned media, and paid media, marketers must follow three key guidelines. What are they? Answer: First, marketers must maximize owned media by reaching out beyond their existing Web sites to create portfolios of digital touch points. This is especially true for brands with tight budgets, as the organization may not be able to afford much paid media. Second, marketers must recognize that aptitude at public and media relations no longer translates into earned media. Instead, marketers must learn how to listen and respond to stakeholders. This will stimulate word of mouth. Finally, marketers must understand that paid media are not dead but should serve as a catalyst to drive customer engagement. 6. Identify and discuss five ideas that marketing managers should consider when setting social media objectives. Answer: LISTEN AND LEARN—Monitor what is being said about the brand and competitors, and glean insights about audiences. Use online tools and do research to implement the best social media practices. BUILD RELATIONSHIPS AND AWARENESS—Open dialogs with stakeholders by giving them compelling content across a variety of media. Engage in conversations and answer customers’ questions candidly. This will both increase Web traffic and boost your search engine ranking. PROMOTE PRODUCTS AND SERVICES—The clearest path to increasing the bottom line using social media is to get customers talking about products and services, which ultimately translates into sales. MANAGE YOUR REPUTATION—Develop and improve the brand’s reputation by responding to comments and criticisms that appear on blogs and forums. Organizations can also position themselves as helpful and benevolent by participating in other forums and discussions. IMPROVE CUSTOMER SERVICE—Customer comments about products and services will not always be positive. Use social media to find displeased customers and engage them directly to solve their service issues. 7. Name and briefly describe the six categories of social media users identified by Charlene Li and Josh Bernoff of Forrester Research. Answer: CREATORS—Those who produce and share online content such as blogs, Web sites, articles, and videos. CRITICS—Those who post comments, ratings, and reviews of products and services on blogs and forums. COLLECTORS—Those who use RSS feeds to collect information and vote for Web sites online. JOINERS—Those who maintain a social networking profile and visit other sites. SPECTATORS—Those who read blogs, listen to podcasts, watch videos, and generally consume media. INACTIVES—Those who do none of the above things. 8. Identify the two broad categories of blogs. Which is generally perceived to be more “authentic”? Why? Answer: The two broad categories of blogs are corporate blogs and noncorporate blogs such as personal blogs. Corporate blogs are sponsored by a company or one of its brands and are maintained by one or more of the company’s employees. Noncorporate blogs are independent and not associated with the marketing efforts of any particular company or brand. Because these blogs contain information not controlled by marketers, they are perceived to be more authentic than corporate blogs. 9. What is a blog? Why are blogs considered a key component in any interactive marketing strategy? Answer: A blog is a publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author’s entries. Some experts believe that every company should have a blog that speaks to current and potential customers, not as consumers but as people. Blogs allow marketers to create content in the form of posts, which ideally build trust and a sense of authenticity in customers. Once posts are made, readers can provide feedback through comments. Because it opens a dialogue and gives customers a voice, the comments section of a blog post is one of the most important avenues of conversation between brands and consumers. 10. How might a marketer use Twitter to promote a brand? How might a celebrity use Twitter to promote him- or herself? What other types of applications can Twitter can be used for? Answer: Twitter is effective for disseminating breaking news, promoting longer blog posts and campaigns, sharing links, announcing events, and promoting sales. By following, retweeting, responding to potential customers’ tweets, and tweeting content that inspires customers to engage the brand, corporate Twitter users can lay a foundation for meaningful two-way conversation quickly and effectively. Celebrities also flock to Twitter to interact with fans, discuss tour dates, and efficiently promote themselves directly to fans. Twitter can be used to build communities; aid in customer service; gain prospects; increase awareness; and, in the case of nonprofits, raise funds. 11. What is a podcast? How are they used? Answer: A podcast is a digital audio or video file that is distributed serially for other people to listen to or watch. Podcasts can be streamed online, played on a computer, uploaded to a portable media player, or downloaded onto a Smartphone. Podcasts are like radio shows that are distributed through various means and not linked to a scheduled time slot. They have amassed a steadily growing number of loyal devotees. 12. Explain some ways marketers can effectively use location-based social networking sites. Answer: Location-based social networking sites such as Foursquare can be especially useful marketing tools for local businesses, particularly when combined with sales promotions such as coupons, special offers, contests, and events. Businesses can increase customers’ loyalty by rewarding them for repeat visits. Customers’ tips and reviews can help to build a sense of community around a brand or business. In addition, location-based social networking sites can introduce a business to nearby potential first-time customers who may not have otherwise known of its existence. Businesses might also create custom, real-time promotions to provide incentives for customers to check in and return for future visits. 13. Compare the demographics of a typical game player within a social networking site such as Facebook with those of a typical player of massive multiplayer online games such as World of Warcraft. Answer: The typical game player within social networking sites is a 43-year-old woman with a full-time job and college education; the typical massive multiplayer online game player is an 18- to 34-year-old male. 14. Identify five reasons for the recent popularity of mobile marketing. Answer: First, an effort to standardize mobile platform has resulted in a low barrier to entry. Second, especially given younger audiences, there are more consumers than ever acclimating to once-worrisome privacy and pricing policies. Third, because most consumers carry their mobile devices with them at all times, mobile marketing is uniquely effective at garnering consumer attention in real time. Fourth, mobile marketing can be easily and effectively measured. And finally, mobile marketing’s response rate is higher than that of traditional media types such as print and broadcast advertisement. 15. Briefly explain what apps are and describe how a business can use them from a marketing perspective. Answer: Millions of applications—or apps—have been developed for the mobile market. Dozens of new and unique apps that harness mobile technology are added to mobile marketplaces every day. While many apps perform platform-specific tasks, others convert existing content into a mobile-ready format. Whether offering new or existing content, when an app is well branded and integrated into a company’s overall marketing strategy, it can create buzz and generate customer engagement. Test Bank for MKTG Charles W. Lamb, Jr. Hair, Joseph F., Carl McDaniel 9781285091860
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