Page 281 - Foundations of Marketing

248 Part 3 | Customer Behavior and E-Marketing

The software industry is particularly hard-hit when it comes to the pirating of materials
and illegal file sharing. The Business Software Alliance estimates that the global computer
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software industry loses more than $ 63.4 billion a year to illegal theft. Consumers view illegal
downloading in different ways, depending on the motivation for the behavior. If the motivation
is primarily utilitarian, or for personal gain, then the act is viewed as less ethically acceptable
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than if it is for a hedonistic reason, or just for fun.
Consumers rationalize pirating software, video games, and music for a number of rea-
sons. First, many consumers feel they just do not have the money to pay for what they
want. Second, because their friends engage in piracy and swap digital content, they feel
influenced to engage in this activity. Third, for some, the attraction is the thrill of getting
away with it and the slim risk of consequences. Fourth, to some extent, there are people
who think they are smarter than others; engaging in piracy allows them to show how tech
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savvy they are.
As digital media continues to evolve, more legal and ethical issues will certainly arise. As
a result, marketers and all other users of digital media should make an effort to learn and abide
by ethical practices to ensure they get the most out of the resources available in this growing
medium. Doing so will allow marketers to maximize the tremendous opportunities digital
media has to offer.

Chapter Review

1. Describe the growths and benefits of digital 2. Learn how types of consumer-generated
marketing. marketing and digital media can be used as

Digital media are electronic media that function using digital effective marketing tools.
codes—when we refer to digital media, we are referring to Digital media in marketing is advancing at a rapid rate.
media available via computers, cellular phones, smartphones, The self-sustaining nature of digital technology means that
and other digital devices that have been released in recent current advances act as a catalyst to spur even faster develop-
years. Digital marketing uses all digital media, including ment. As faster digital transmissions evolve, marketing appli-
the Internet and mobile and interactive channels, to develop cations are emerging that offer an opportunity for companies
communication and exchanges with customers. Electronic to reach consumers in new ways.
marketing refers to the strategic process of distributing, pro- There are many types of digital media that can be used
moting, and pricing products, and discovering the desires of as marketing tools. A social network is a web-based meeting
customers using digital media and digital marketing. Our place for friends, family, coworkers, and peers that allows
definition of e-marketing goes beyond the Internet and also users to create a profile and connect with other users for
includes mobile phones, banner ads, digital outdoor market- purposes that range from getting acquainted, to keeping in
ing, and social networks. touch, to building a work-related network. Blogs (short for
The phenomenal growth of the Internet has provided “weblogs”) are web-based journals in which writers can
unprecedented opportunities for marketers to forge interac- editorialize and interact with other Internet users. A wiki
tive relationships with consumers. As the Internet and digi- is a type of software that creates an interface that enables
tal communication technologies have advanced, they have users to add or edit the content of some types of websites.
made it possible to target markets more precisely and reach Media-sharing sites allow marketers to share photos, videos,
markets that were previously inaccessible. One of the most and podcasts but are more limited in scope in how compa-
important benefits of e-marketing is the ability of market- nies interact with consumers. One type of media sharing is
ers and customers to share information. Through websites, podcasts, which are audio or video files that can be down-
social networks, and other digital media, consumers can learn loaded from the Internet with a subscription that automati-
about everything they consume and use in life. As a result, cally delivers new content to listening devices or personal
the Internet is changing the way marketers communicate computers. Virtual realities are user-created, three-dimen-
and develop relationships. For many businesses, engaging in sional worlds that have their own economies and curren-
digital marketing activities is essential to maintaining com- cies, lands, and residents who come in every shape and size.
petitive advantages. Advertising over mobile devices is becoming increasingly

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