Part 3
CUSTOMER BEHAVIOR
AND E-MARKETING.
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Dr. Chen, Principle of Marketing
6: Consumer Buying Behavior
7: Business Markets and
Buying Behavior
8: Reaching Global Markets
9: Digital Marketing and Social
Networking
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Dr. Chen, Principle of Marketing
Chapter 9
Digital Marketing and
Social Networking
Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga University
Spokane, WA 99258
chen@jepson.gonzaga.edu
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Marketing Applications
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 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
manufacturing
healthcare companies, ___________
groups on its homepage - __________
human resources
companies, and companies looking for _________
________solutions.
The company also provides products and services to energy companies
and any company that requires IT services like cloud computing.
 Because Covisint products would be researched and purchased by
managers and executives at these companies, banner ads are not
appropriate. Other B2B industries would benefit from such a hub.
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Internet Exercise
 Victors & Spoils

 To learn more about the world’s first
creative ad agency built on crowdsourcing
principles, including an opportunity to
engage the world’s most talented creatives,
look at the Victors & Spoils site at
http://victorsandspoils.com.
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 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 advertising campaigns. For
private projects, V&S matches certain members to client
briefs and pays them up front. For public projects, V&S
shares client briefs and then accepts submissions from
members and pays them for the ideas that the client buys.
 These public projects provide V&S with several ideas that
can be combined and refined to better meet client needs. The
company believes that this strategy makes them more
successful than a traditional ad agency, which has a limited
number of creative people.
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 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?

 Students’ answers will vary. Although crowdsourcing may
change marketing and other industries, students may argue
that many industries are set up to prefer the services of
traditional ad agencies.
 However, with more jobs becoming temporary or contract,
and with V&S providing access to more ideas,
crowdsourcing may challenge the traditional advertising
process.
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 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:



1. Opportunity: Access to the best brands and briefs out there.
2. Experience: You get to work with top creative directors in your area of
expertise.
3. Connection: A community of friends and peers: create your own team
and work with who you want from wherever you want.
 Any aspiring advertiser would build a strong portfolio and gain
valuable skills without having to work his or her way up a
corporate ladder.
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Video Case 9.1
 ROGUESHEEP’S POSTAGE APP: THE
POSTCARD OF THE FUTURE.
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 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 90 postcard designs, customize
the design by inserting their own photos, and send the
postcard to their friends or relatives. Since its introduction,
the Postage app has won several awards and has broken into
the social networking world. To create awareness of the
product, RogueSheep uses a combination of traditional
media, apps, social networking sites like Facebook, and free
trials.
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 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 special
events. This application could potentially be
customized to be a less expensive, more impactful
business-to-the-consumer promotional postcard.
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 2. Is it possible for RogueSheep to advance its
digital postcards to those who do not have access
to iPhone apps?

 Since RogueSheep is continually creating new
products and looking into new technologies, it
seems feasible that digital postcards can be
advanced beyond iPhones. Other likely candidates
for non-iPhone digital postcards are laptops (some
people bring their laptops with them on trips),
smartphones, or iPads.
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 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
postcard can reach the recipient (versus snail mail),
the ability to customize their postcards and share
their designs with others via social networks, and
the reduction of paper waste.
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Discussion Point
The Postcard of the Future
 RogueSheep is a software development company
who’s postage application is giving the traditional
postcard a run for its money
 For $4.99, iPhone users can purchase the app,
choose from more than 90 postcard designs,
customize the design and send
? How do you think businesses could effectively use
RogueSheep postcards?
? What are the advantages of the RogueSheep digital
postcards over traditional postcards?
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