Deck 13: Digital Marketing and Social Networking

Question 1

Smirnoff's Mixhibit: An Example of Ethical Digital Marketing
Smirnoff Vodka is taking digital marketing to a new level. The company has developed Mixhibit, a mobile application allowing users to create short videos made up of snapshots from various social networking platforms. Users can scour their Facebook, Twitter, Instagram, and Foursquare profiles for photos and posts they want to include in their video. Then they can set the motion picture to music with any one of the 10,000 tracks available on the app. The goal of Mixhibit is to generate global consumer participation with the brand that extends beyond liking, following, and sharing-such activities are passive and do not optimize consumer participation. Mixhibit brings the physical world in closer contact with the digital world, which is a more realistic form of consumer participation.
Smirnoff is the top global seller of vodka in value and volume. As a major player in 133 countries, it is gaining traction in developing economies. The use of social networking is a way to include participants on a global scale and get them involved together in the physical world. The influence Smirnoff holds comes with two major responsibilities in marketing, however. First, it has an economic responsibility not to become complacent in its success. Despite its numberone status around the world, Smirnoff must be sensitive to environmental changes. Mixhibit achieves this goal by keeping the brand fresh and interesting to customers. Second, Smirnoff has a sociocultural and legal responsibility to market only to those who are of legal drinking age. 57
How is Smirnoff Vodka using digital marketing to encourage consumer participation?

Answer 1

The topic highlights the usage of digital marketing by today's corporations. Their success in gaining attention of consumers and impact of digital marketing on company operations.
Digital marketing refers to the process of marketing through online means. It is the process of selling and promoting services, and products through online platforms. Various modes of digital marketing are internet, social media, email, and search engines.
In order to encourage consumer participation SV Company has developed an entertaining mobile app that allow users to make videos of snap-shots obtained from different social networking sites. Users are allowed to put in and paste photos and posts from their social media accounts. Then they can set any track of their choice as background music from more than 9,000 tracks that are readily available on the application.
The goal of creating this application is to generate and accelerate customer participation to like, follow, share the product brand and beyond that.

Question 2

Developing Successful Freeware
Paul Easterwood, a recent graduate of Colorado State University with a degree in computer science, entered the job market during a slow point in the economy. Tech sector positions were hard to come by, and Paul felt he wouldn't be making anywhere near what he was worth. The only offer he received was from an entrepreneurial firm, Pentaverate Inc., that produced freeware. Freeware, or public domain software, is offered to consumers free of charge in exchange for revenues generated later. Makers of freeware (such as Adobe and Netscape) can earn high profits through advertisements their sites carry, from purchases made on the freeware site, or, for more specialized software, through fee-based tutorials and workshops offered to help end users. Paul did some research and found an article in Worth magazine documenting the enormous success of freeware.
Pentaverate Inc. offered compensation mainly in the form of stock options, which had the potential to be highly profitable if the company did well. Paul's job would be to develop freeware that people could download from the Internet and that would generate significant income for Pentaverate. With this in mind, he decided to accept the position, but he quickly realized he knew very little about business. With no real experience in marketing, Paul was at a loss to know what software he should produce that would make the company money. His first project, IOWatch, was designed to take users on virtual tours of outer space, especially the moons of Jupiter (Paul's favorite subject), by continually searching the Internet for images and video clips associated with the cosmos and downloading them directly to a PC. The images would then appear as soon as the person logged on. Advertisements would accompany each download, generating income for Pentaverate.
However, IOWatch experienced low end-user interest and drew little advertising income as a result. Historically at Pentaverate, employees were fired after two failed projects. Desperate to save his job, Paul decided to hire a consultant. He needed to figure out what customers might want so he could design some useful freeware for his second project. He also needed to know what went wrong with IOWatch, because he loved the software and couldn't figure out why it had failed to find an audience. The job market has not improved, so Paul realizes how important it is for his second project to succeed.
How will it make money?

Answer 2

Consider a freeware which suggests the consumer to replace his old products with new and greener products based on energy and monetary calculations.
The freeware can make money by advertising revenue. It can also make money by suggesting consumers to buy products from a network of producers and the freeware producers would have a share in the sale.

Question 3

How are multinational companies using Chinese microblogging sites to reach consumers?

Answer 3

The topic highlights the usage of digital marketing by today's corporations. Their success in gaining attention of consumers and impact of digital marketing on company operations.
Digital marketing refers to the process of marketing through online means. It is the process of selling and promoting services, and products through online platforms. Various modes of digital marketing are internet, social media, email, and search engines.
Microblogging refers to a web based service by which a subscriber can broadcast short messages or information to other subscribers subscribed to the service. Microblogging allows companies to distribute their posts to their subscribers
Microblogging is widely used in country C and businesses use it as a method of online marketing. For companies microblogging sites serve as a platform to undertake customer service operations because it allows customers to contact representatives of companies in real time. Hence, helps to improve the overall consumer satisfaction. Additionally, companies have flexibility to collect and obtain feedback and other required data from customers, which is used to improve consumer experience, product, and service targeting.

Question 4

Should Employees Use Social Media Sites at Work?
As Facebook and other social media sites have gained popularity and expanded, managing their use at work has become an increasingly hot topic. Studies on the use of social media in the workplace conflict over how much it inhibits productivity. Should employees be allowed to access social media at work? Many offices have banned access to the Facebook site. The results are as mixed as the research. A National Business Ethics Survey (NBES) revealed that 11 percent of employees who engage in social networking are "active" social networkers who spend 30 percent or more of the workday on social networking sites. Many managers are conflicted as to whether this constitutes enough of a problem to be banned outright.
Another study conducted by Nucleus Research (an IT research company) revealed a 1.5 percent loss of productivity for businesses allowing social media access. It found that 77 percent of Facebook users used the site during work for as much as two hours a day; 87 percent of those surveyed admitted they were using social media sites to waste time. NBES also found that active social networkers were more likely to find certain questionable behaviors to be acceptable, such as criticizing the company or its managers on social networking sites. Procter Gamble realized that many of its employees were using social networking sites for nonwork purposes. Its investigations revealed that employees across the company were watching an average of 50,000 five-minute YouTube videos and listening to 4,000 hours of music on Pandora daily.
However, an outright ban could cause problems. Some younger employees have expressed that they do not want to work for companies without social media access; they view restricting or eliminating access like removing a benefit. Employees at companies with an outright ban often resent the lack of trust associated with such a move and feel that management is censuring their activities. Other employees who use Facebook during their lunch hours or break times may feel that they are being punished because of others' actions. Additionally, Procter Gamble uses YouTube and Facebook extensively for marketing purposes. Banning these sites would disrupt the firm's marketing efforts.
An Australian study indicates that employees taking time out to pursue Facebook and other social media were actually 9 percent more productive than those who did not. Brent Coker, the study's author and University of Melbourne faculty member, says people are more productive when they take time to "zone out" throughout the workday. Doing so can improve concentration. Coker's study focused on those using less than 20 percent of the workday on such breaks, which is less than the amount of time "active" social networkers spend on these sites.
Some companies actually encourage employees to use social networking as part of their integrated marketing stra tegy. In fact, not having a social media page such as Facebook or LinkedIn might be seen as a missed opportunity for marketing the firm. Even the law industry is starting to use social media on a more daily basis. One study of the top 50 highest ranked law firms in the country determined that 64 percent use Facebook and 90 percent are on Twitter. Approximately 80 percent post something every day or once a week. Although larger law firms tend not to use social media as effectively as smaller law firms, the use of social media to interact with clients is clearly gaining throughout the industry.
Despite the benefits that companies have received from allowing their employees to use social media, many companies have gone ahead with social media bans. Procter Gamble has restricted the use of Netflix and Pandora, but not Facebook or YouTube. Companies all need to ask, "Can management use social media to benefit the company?" If so, it may be more advantageous to take the risks of employees using social media for personal use if they can also be encouraged to use social networks to publicize their organizations, connect with customers, and view consumer comments or complaints. By restricting social media use, companies may be forfeiting an effective marketing tool. 98
What are the downsides to restricting employee access to social networking sites?

Question 5

Developing Successful Freeware
Paul Easterwood, a recent graduate of Colorado State University with a degree in computer science, entered the job market during a slow point in the economy. Tech sector positions were hard to come by, and Paul felt he wouldn't be making anywhere near what he was worth. The only offer he received was from an entrepreneurial firm, Pentaverate Inc., that produced freeware. Freeware, or public domain software, is offered to consumers free of charge in exchange for revenues generated later. Makers of freeware (such as Adobe and Netscape) can earn high profits through advertisements their sites carry, from purchases made on the freeware site, or, for more specialized software, through fee-based tutorials and workshops offered to help end users. Paul did some research and found an article in Worth magazine documenting the enormous success of freeware.
Pentaverate Inc. offered compensation mainly in the form of stock options, which had the potential to be highly profitable if the company did well. Paul's job would be to develop freeware that people could download from the Internet and that would generate significant income for Pentaverate. With this in mind, he decided to accept the position, but he quickly realized he knew very little about business. With no real experience in marketing, Paul was at a loss to know what software he should produce that would make the company money. His first project, IOWatch, was designed to take users on virtual tours of outer space, especially the moons of Jupiter (Paul's favorite subject), by continually searching the Internet for images and video clips associated with the cosmos and downloading them directly to a PC. The images would then appear as soon as the person logged on. Advertisements would accompany each download, generating income for Pentaverate.
However, IOWatch experienced low end-user interest and drew little advertising income as a result. Historically at Pentaverate, employees were fired after two failed projects. Desperate to save his job, Paul decided to hire a consultant. He needed to figure out what customers might want so he could design some useful freeware for his second project. He also needed to know what went wrong with IOWatch, because he loved the software and couldn't figure out why it had failed to find an audience. The job market has not improved, so Paul realizes how important it is for his second project to succeed.
As a consultant, what would you do to help Paul figure out what went wrong with IOWatch?

Question 6

What is e-business?

Question 7

Should Employees Use Social Media Sites at Work?
As Facebook and other social media sites have gained popularity and expanded, managing their use at work has become an increasingly hot topic. Studies on the use of social media in the workplace conflict over how much it inhibits productivity. Should employees be allowed to access social media at work? Many offices have banned access to the Facebook site. The results are as mixed as the research. A National Business Ethics Survey (NBES) revealed that 11 percent of employees who engage in social networking are "active" social networkers who spend 30 percent or more of the workday on social networking sites. Many managers are conflicted as to whether this constitutes enough of a problem to be banned outright.
Another study conducted by Nucleus Research (an IT research company) revealed a 1.5 percent loss of productivity for businesses allowing social media access. It found that 77 percent of Facebook users used the site during work for as much as two hours a day; 87 percent of those surveyed admitted they were using social media sites to waste time. NBES also found that active social networkers were more likely to find certain questionable behaviors to be acceptable, such as criticizing the company or its managers on social networking sites. Procter Gamble realized that many of its employees were using social networking sites for nonwork purposes. Its investigations revealed that employees across the company were watching an average of 50,000 five-minute YouTube videos and listening to 4,000 hours of music on Pandora daily.
However, an outright ban could cause problems. Some younger employees have expressed that they do not want to work for companies without social media access; they view restricting or eliminating access like removing a benefit. Employees at companies with an outright ban often resent the lack of trust associated with such a move and feel that management is censuring their activities. Other employees who use Facebook during their lunch hours or break times may feel that they are being punished because of others' actions. Additionally, Procter Gamble uses YouTube and Facebook extensively for marketing purposes. Banning these sites would disrupt the firm's marketing efforts.
An Australian study indicates that employees taking time out to pursue Facebook and other social media were actually 9 percent more productive than those who did not. Brent Coker, the study's author and University of Melbourne faculty member, says people are more productive when they take time to "zone out" throughout the workday. Doing so can improve concentration. Coker's study focused on those using less than 20 percent of the workday on such breaks, which is less than the amount of time "active" social networkers spend on these sites.
Some companies actually encourage employees to use social networking as part of their integrated marketing stra tegy. In fact, not having a social media page such as Facebook or LinkedIn might be seen as a missed opportunity for marketing the firm. Even the law industry is starting to use social media on a more daily basis. One study of the top 50 highest ranked law firms in the country determined that 64 percent use Facebook and 90 percent are on Twitter. Approximately 80 percent post something every day or once a week. Although larger law firms tend not to use social media as effectively as smaller law firms, the use of social media to interact with clients is clearly gaining throughout the industry.
Despite the benefits that companies have received from allowing their employees to use social media, many companies have gone ahead with social media bans. Procter Gamble has restricted the use of Netflix and Pandora, but not Facebook or YouTube. Companies all need to ask, "Can management use social media to benefit the company?" If so, it may be more advantageous to take the risks of employees using social media for personal use if they can also be encouraged to use social networks to publicize their organizations, connect with customers, and view consumer comments or complaints. By restricting social media use, companies may be forfeiting an effective marketing tool. 98
Why do you think results are so mixed on the use of social networking in the workplace?

Question 8

How is the Internet changing the practice of marketing?

Question 9

How can marketers utilize digital media to improve business?

Question 10

What impact do digital media have on the marketing mix?

Question 11

Facebook Praised for Tackling Carbon Emissions
It's no secret that Facebook and Google are competitors, particularly when it comes to advertising. Both companies have a wide global reach and the ability to segment the market. However, there is one area in which Facebook performs better than Google: its carbon footprint. Facebook's yearly carbon emissions amount to approximately 285,000 metric tons per year compared to Google's 1.5 million.
As concern for the planet increases, consumers are demanding that companies become more sustainable. Therefore, the fact that Facebook is more carbon-efficient than competitors places it at an advantage. Greenpeace has praised the company for its transparency after Facebook released a detailed report describing its carbon footprint. In the report, Facebook announced its goals of getting 25 percent of its energy from renewable sources by 2015. This report provided information about Facebook's goals and data centers as well as the carbon footprint from the company's more than 90 million Facebook users.
So how much energy does each user's Facebook use emit? Facebook has calculated that each user's annual use is equivalent to the carbon footprint of a medium latte. Unfortunately, with more than 900 million users, this adds up significantly. And while the firm plans to create a hydropowered data center in Sweden, other expansions will likely increase its carbon emissions in the short term. Despite these downsides, Facebook's transparency has earned it accolades from stakeholders-including environmental groups. 17
Why do you think Facebook released a report on its sustainability accomplishments?

Question 12

How can businesses utilize new digital and social networking channels in their marketing campaigns?

Question 13

Visit some of the social networking sites identified in this chapter. How do they differ in design, audience, and features? Why do you think some social networking sites like Facebook are more popular than others?

Question 14

What are some of the privacy concerns associated with the Internet and e-business? How are these concerns being addressed in the United States?

Question 15

Smirnoff's Mixhibit: An Example of Ethical Digital Marketing
Smirnoff Vodka is taking digital marketing to a new level. The company has developed Mixhibit, a mobile application allowing users to create short videos made up of snapshots from various social networking platforms. Users can scour their Facebook, Twitter, Instagram, and Foursquare profiles for photos and posts they want to include in their video. Then they can set the motion picture to music with any one of the 10,000 tracks available on the app. The goal of Mixhibit is to generate global consumer participation with the brand that extends beyond liking, following, and sharing-such activities are passive and do not optimize consumer participation. Mixhibit brings the physical world in closer contact with the digital world, which is a more realistic form of consumer participation.
Smirnoff is the top global seller of vodka in value and volume. As a major player in 133 countries, it is gaining traction in developing economies. The use of social networking is a way to include participants on a global scale and get them involved together in the physical world. The influence Smirnoff holds comes with two major responsibilities in marketing, however. First, it has an economic responsibility not to become complacent in its success. Despite its numberone status around the world, Smirnoff must be sensitive to environmental changes. Mixhibit achieves this goal by keeping the brand fresh and interesting to customers. Second, Smirnoff has a sociocultural and legal responsibility to market only to those who are of legal drinking age. 57
How do you think the Mixhibit app helps to keep the firm from becoming complacent in its success?

Question 16

What is identity theft? How can consumers protect themselves from this crime?

Question 17

Why do you think Sina Weibo is a good platform for digital marketing in China?

Question 18

Why do creators want to protect their intellectual property? Provide an example on the Internet where intellectual property may not be protected or where a copyright has been infringed.

Question 19

Developing Successful Freeware
Paul Easterwood, a recent graduate of Colorado State University with a degree in computer science, entered the job market during a slow point in the economy. Tech sector positions were hard to come by, and Paul felt he wouldn't be making anywhere near what he was worth. The only offer he received was from an entrepreneurial firm, Pentaverate Inc., that produced freeware. Freeware, or public domain software, is offered to consumers free of charge in exchange for revenues generated later. Makers of freeware (such as Adobe and Netscape) can earn high profits through advertisements their sites carry, from purchases made on the freeware site, or, for more specialized software, through fee-based tutorials and workshops offered to help end users. Paul did some research and found an article in Worth magazine documenting the enormous success of freeware.
Pentaverate Inc. offered compensation mainly in the form of stock options, which had the potential to be highly profitable if the company did well. Paul's job would be to develop freeware that people could download from the Internet and that would generate significant income for Pentaverate. With this in mind, he decided to accept the position, but he quickly realized he knew very little about business. With no real experience in marketing, Paul was at a loss to know what software he should produce that would make the company money. His first project, IOWatch, was designed to take users on virtual tours of outer space, especially the moons of Jupiter (Paul's favorite subject), by continually searching the Internet for images and video clips associated with the cosmos and downloading them directly to a PC. The images would then appear as soon as the person logged on. Advertisements would accompany each download, generating income for Pentaverate.
However, IOWatch experienced low end-user interest and drew little advertising income as a result. Historically at Pentaverate, employees were fired after two failed projects. Desperate to save his job, Paul decided to hire a consultant. He needed to figure out what customers might want so he could design some useful freeware for his second project. He also needed to know what went wrong with IOWatch, because he loved the software and couldn't figure out why it had failed to find an audience. The job market has not improved, so Paul realizes how important it is for his second project to succeed.
What ideas for new freeware can you give Paul? What potential uses will the new software have?

Question 20

Should Employees Use Social Media Sites at Work?
As Facebook and other social media sites have gained popularity and expanded, managing their use at work has become an increasingly hot topic. Studies on the use of social media in the workplace conflict over how much it inhibits productivity. Should employees be allowed to access social media at work? Many offices have banned access to the Facebook site. The results are as mixed as the research. A National Business Ethics Survey (NBES) revealed that 11 percent of employees who engage in social networking are "active" social networkers who spend 30 percent or more of the workday on social networking sites. Many managers are conflicted as to whether this constitutes enough of a problem to be banned outright.
Another study conducted by Nucleus Research (an IT research company) revealed a 1.5 percent loss of productivity for businesses allowing social media access. It found that 77 percent of Facebook users used the site during work for as much as two hours a day; 87 percent of those surveyed admitted they were using social media sites to waste time. NBES also found that active social networkers were more likely to find certain questionable behaviors to be acceptable, such as criticizing the company or its managers on social networking sites. Procter Gamble realized that many of its employees were using social networking sites for nonwork purposes. Its investigations revealed that employees across the company were watching an average of 50,000 five-minute YouTube videos and listening to 4,000 hours of music on Pandora daily.
However, an outright ban could cause problems. Some younger employees have expressed that they do not want to work for companies without social media access; they view restricting or eliminating access like removing a benefit. Employees at companies with an outright ban often resent the lack of trust associated with such a move and feel that management is censuring their activities. Other employees who use Facebook during their lunch hours or break times may feel that they are being punished because of others' actions. Additionally, Procter Gamble uses YouTube and Facebook extensively for marketing purposes. Banning these sites would disrupt the firm's marketing efforts.
An Australian study indicates that employees taking time out to pursue Facebook and other social media were actually 9 percent more productive than those who did not. Brent Coker, the study's author and University of Melbourne faculty member, says people are more productive when they take time to "zone out" throughout the workday. Doing so can improve concentration. Coker's study focused on those using less than 20 percent of the workday on such breaks, which is less than the amount of time "active" social networkers spend on these sites.
Some companies actually encourage employees to use social networking as part of their integrated marketing stra tegy. In fact, not having a social media page such as Facebook or LinkedIn might be seen as a missed opportunity for marketing the firm. Even the law industry is starting to use social media on a more daily basis. One study of the top 50 highest ranked law firms in the country determined that 64 percent use Facebook and 90 percent are on Twitter. Approximately 80 percent post something every day or once a week. Although larger law firms tend not to use social media as effectively as smaller law firms, the use of social media to interact with clients is clearly gaining throughout the industry.
Despite the benefits that companies have received from allowing their employees to use social media, many companies have gone ahead with social media bans. Procter Gamble has restricted the use of Netflix and Pandora, but not Facebook or YouTube. Companies all need to ask, "Can management use social media to benefit the company?" If so, it may be more advantageous to take the risks of employees using social media for personal use if they can also be encouraged to use social networks to publicize their organizations, connect with customers, and view consumer comments or complaints. By restricting social media use, companies may be forfeiting an effective marketing tool. 98
What are some possible upsides to utilizing social media as part of an integrated marketing strategy, especially in digital marketing?

Question 21

Define accessibility, addressability, connectivity, interactivity, and control. What do these terms have to do with digital marketing?

Question 22

Planning a Digital Marketing and Social Networking Site
Background
Many companies today utilize digital media in a way that reflects their images and goals. They can also help to improve customer service, loyalty, and satisfaction while reaching out to new target markets. Companies use these sites in a variety of ways, sometimes setting up Facebook pages or Twitter accounts to gather customer feedback, to promote new products, or even to hold competitions.
The U.S. economy has experienced many ups and downs in recent decades, but e-commerce has been an area that has continued to grow throughout economic ups and downs. Many dot-com companies and social networking sites have risen and collapsed. Others such as www.amazon.com, eBay, Facebook, and Twitter have not only survived, but thrived. Many that succeed are "niche players"; that is, they cater to a very specific market that a brick-and-mortar business (existing only in a physical marketplace) would find hard to reach. Others are able to compete with brick-and-mortar stores because they offer a wider variety of products, lower prices, or better customer service. Many new digital media outlets help companies compete on these fronts.
As a manager of Biodegradable Packaging Products Inc., a small business that produces packaging foam from recycled agricultural waste (mostly corn), you want to expand into ebusiness by using digital media to help market your product. Your major customers are other businesses and could include environmentally friendly companies like Tom's of Maine (natural toothpaste) and Celestial Seasonings (herbal tea). Your first need is to develop a social networking site or blog that will help you reach your potential customers. You must decide who your target market is and which medium will attract it the best.
Task
Plan a digital media marketing campaign using online social networking sites, blogs, or another digital media outlet using the template below.
Social networking/blog/other site: _______________________________________
Overall image and design of your site: ____________________________________
Strategy for attracting followers to your site: _______________________________
Potential advertising partners to draw in more customers: _____________________

Question 23

Facebook Praised for Tackling Carbon Emissions
It's no secret that Facebook and Google are competitors, particularly when it comes to advertising. Both companies have a wide global reach and the ability to segment the market. However, there is one area in which Facebook performs better than Google: its carbon footprint. Facebook's yearly carbon emissions amount to approximately 285,000 metric tons per year compared to Google's 1.5 million.
As concern for the planet increases, consumers are demanding that companies become more sustainable. Therefore, the fact that Facebook is more carbon-efficient than competitors places it at an advantage. Greenpeace has praised the company for its transparency after Facebook released a detailed report describing its carbon footprint. In the report, Facebook announced its goals of getting 25 percent of its energy from renewable sources by 2015. This report provided information about Facebook's goals and data centers as well as the carbon footprint from the company's more than 90 million Facebook users.
So how much energy does each user's Facebook use emit? Facebook has calculated that each user's annual use is equivalent to the carbon footprint of a medium latte. Unfortunately, with more than 900 million users, this adds up significantly. And while the firm plans to create a hydropowered data center in Sweden, other expansions will likely increase its carbon emissions in the short term. Despite these downsides, Facebook's transparency has earned it accolades from stakeholders-including environmental groups. 17
Do you feel that Facebook's sustainability initiatives will give it an edge over Google?

Question 24

What is digital marketing?

Question 25

It has been stated that digital technology and the Internet are to business today what manufacturing was to business during the Industrial Revolution. The technology revolution requires a strategic understanding greater than learning the latest software and programs or determining which computer is the fastest. Leaders in business can no longer delegate digital media to specialists and must be the connectors and the strategists of how digital media will be used in the company. Outline a plan for how you will prepare yourself to function in a business world where digital marketing knowledge will be important to your success.

Question 26

Facebook Praised for Tackling Carbon Emissions
It's no secret that Facebook and Google are competitors, particularly when it comes to advertising. Both companies have a wide global reach and the ability to segment the market. However, there is one area in which Facebook performs better than Google: its carbon footprint. Facebook's yearly carbon emissions amount to approximately 285,000 metric tons per year compared to Google's 1.5 million.
As concern for the planet increases, consumers are demanding that companies become more sustainable. Therefore, the fact that Facebook is more carbon-efficient than competitors places it at an advantage. Greenpeace has praised the company for its transparency after Facebook released a detailed report describing its carbon footprint. In the report, Facebook announced its goals of getting 25 percent of its energy from renewable sources by 2015. This report provided information about Facebook's goals and data centers as well as the carbon footprint from the company's more than 90 million Facebook users.
So how much energy does each user's Facebook use emit? Facebook has calculated that each user's annual use is equivalent to the carbon footprint of a medium latte. Unfortunately, with more than 900 million users, this adds up significantly. And while the firm plans to create a hydropowered data center in Sweden, other expansions will likely increase its carbon emissions in the short term. Despite these downsides, Facebook's transparency has earned it accolades from stakeholders-including environmental groups. 17
How is Facebook trying to increase its sustainability?

Question 27

Smirnoff's Mixhibit: An Example of Ethical Digital Marketing
Smirnoff Vodka is taking digital marketing to a new level. The company has developed Mixhibit, a mobile application allowing users to create short videos made up of snapshots from various social networking platforms. Users can scour their Facebook, Twitter, Instagram, and Foursquare profiles for photos and posts they want to include in their video. Then they can set the motion picture to music with any one of the 10,000 tracks available on the app. The goal of Mixhibit is to generate global consumer participation with the brand that extends beyond liking, following, and sharing-such activities are passive and do not optimize consumer participation. Mixhibit brings the physical world in closer contact with the digital world, which is a more realistic form of consumer participation.
Smirnoff is the top global seller of vodka in value and volume. As a major player in 133 countries, it is gaining traction in developing economies. The use of social networking is a way to include participants on a global scale and get them involved together in the physical world. The influence Smirnoff holds comes with two major responsibilities in marketing, however. First, it has an economic responsibility not to become complacent in its success. Despite its numberone status around the world, Smirnoff must be sensitive to environmental changes. Mixhibit achieves this goal by keeping the brand fresh and interesting to customers. Second, Smirnoff has a sociocultural and legal responsibility to market only to those who are of legal drinking age. 57
Are there any risks associated with promoting the Mixhibit app? If so, how can Smirnoff Vodka overcome them?

Question 28

amazon.com is one of the most recognized e-businesses. Visit the site ( www.amazon.com ) and identify the types of products the company sells. Explain its privacy policy.

Question 29

Twitter is currently blocked in China. How do you think the success of Sina Weibo may affect Twitter if it is eventually able to enter the country?