teachthe4ps.com - For instructors of marketing.

I recently gave a talk at Colorado State University’s Future Visions program titled, “Marketing and Social Media:  Creepy or Cool.”  As I prepared for my presentation, I was surprised to see that some marketing practices I thought were years away — are being practiced now.

For example, did you know that Facebook apps are gathering data about users and user’s friends?  You can read more about this in “Selling You on Facebook” (Wall Street Journal, April 10, 2012).  Looking ahead, you can be sure that Facebook and Google are developing techniques for mining many types of data — everything from your “likes,” gender, and political leanings — to your status posts and photo stream. Facebook wants to be able to anticipate your needs — so that it can help marketers address those needs.  Yes, that is the reason the company is worth $100 billion.

The video below is kind of long (7:54) provides an overview you could show to stimulate class discussion.  Students may be interested in this topic.  I have found that my students are much less concerned about the invasion of privacy than I would have suspected.  Also posted at Learn the 4 Ps.

The article and video might be used when you discuss social media, advertising, targeting, and privacy.

I thought I understood how much my privacy was being compromised as I surfed the web — well I didn’t know the half of it.  The future is now.  Recently the NPR Fresh Air show titled “How Companies are ‘Defining Your Worth” Online” (February 22, 2012, the link will take you to the 39 minute interview as well as a shorter written set of highlights) included an interview with Joseph Turow (Professor at the Annnenberg School for Communication at University of Pennsylvania) about his new book The Daily You .  Marketers are increasingly connecting data from our credit cards, web-surfing and search, Facebook, etc. to create fairly specific profiles of many individual consumers.  Marketing managers can go to catalogs from companies like Acxiom and purchase e-mail or street addresses of target customers: a) likely to have diabetes,  b) likely to vacation in an RV, c) who are overweight, and much more.

The interview raises a lot of questions about consumer privacy and ethics.  On the one hand, receiving ads and perhaps coupons for new skis when we are in the market for new skis might be a good thing.  I tell my students that it is only junk mail or spam when we don’t want it.

But what if we prefer our privacy?  What if  we are diabetic and there are new products to help make my life easier — do I want to know?  Or if I am overweight — do I want to receive promotional materials from health clubs and diet programs?  What if potential employers can also pull this information — and don’t want to hire me because my health problems might lead to higher health insurance costs down the line?

This whole issue is complex and in a state of flux.  This interview and book might help get you up to speed.  The topic can be used to stimulate a discussion of marketing practices and related legal and ethical issues.

Imagine walking along a city street and seeing your own face in ad for a shirt you are checking out.  Or perhaps a friend’s face in an ad inviting you into a restaurant.  Technology may not be too far from making this a possibility.  How creepy would that be? Or perhaps it wouldn’t be creepy at all. Would we get used to it? This Slate article, “How’d My Avatar Get Into That Sneaker Ad?” (January 4, 2012) lays out this type of scenario as a thought experiment.

There are already examples of parts of this technology. My Virtual Model allows you to build an avatar with your body type and face can be placed on a “virtual model” — allowing you to virtually try on clothing. Lands’ End has used this technology for several years now. What is to prevent Facebook ads from using the photos you post to put you in a Facebook ad?  The natural next step, suggested by the article, is that you may walk by a billboard or store and see yourself in an ad.  Also posted at Learn the 4 Ps.

It might be fun to engage your students in the same thought experiment described in the article as a way to open a discussion into technology, privacy, and ethics.

A couple of interesting stories about how retailers utilize high-tech analytics to better understand customer shopping behavior.  I heard “The secret life of discounts” (Marketplace radio, December 16, 2011, link to listen or read the transcript) as I drove to the airport last night to pick up my daughter who was coming home from college.  There are some examples about how stores use analytics to try to remain profitable with consumers conditioned to buy only at a steep discount.

In “Big Brother is Watching You Shop” (Bloomberg Businessweek, December 15, 2011), you can read about retailers using in-store video cameras and tracking your cell phone to better understand how you move through a retail store.  Analyzing video from a Miami store allowed Montblanc managers to more strategically locate merchandising, signage, and salespeople.  The result — a 20% bump in sales.  Other retailers follow customers’ cell phone signals to track and map movement through stores.  This of course is raising privacy concerns.

These two stories can be useful examples for marketing research (where we cover dashboards and marketing models), retailing, and in discussions of privacy.  Also posted at Learn the 4 Ps.

Is the future of online advertising one of incredibly targeted advertising based on your interests, online activities and Facebook “likes,” or is it one dictated by robust privacy controls that keep those details out of the hands of marketers?

This article at CNN.com “‘Like’ it or not, online ads are getting personal” (January 31, 2011) starts by asking this question.  It seems to me that many of our students care very little about their personal privacy.  The article describes behavioral advertising and notes that the Federal Trade Commission is considering a “Do Not Track” list similar to the “Do Not Call” list created to curb telemarketing.  It looks like the browser makers are getting out in front of the issue by creating the “no track” option — Microsoft Explorer, Google Chrome and Mozilla Firefox offer the opportunity to “opt out” of behavioral tracking, few users are likely to select this option (that assumes the default is that you will be tracked — but that is another issue). Also posted at Learn the 4 Ps.

This issue raises important questions about ethics and legal issues in marketing, privacy, technology, and promotion.

Here at Teach the 4 Ps we often highlight stories on the selling power of online reviews and personal recommendations.  Last year’s Nielsen survey on trust showed that we really trust recommendations from people we know.  But how can they leverage that at Facebook.  If Facebook masters it, they will have the keys to a new direction for Promotion.  This recent Wall Street Journal article “Facebook Touts Selling Power of Friendship” (Wall Street Journal, July 7, 2010 – subscription required click here for a back door link, follow the search results).  The video is 6:52 long, but the most interesting stuff for class would be the first 3:30 or so.  It could be assigned to students or shown in class.  You could show it in class and natural discussion opportunities will follow — there are the effectiveness issues and the privacy issues as well.

We have just finished up the next edition of Basic Marketing which includes our take on this transformation and how it fits into teaching the introductory marketing class.  Look for the book in October.

Almost all of our students has a Faecbook profile.  I have always been amazed at how permissive this generation has been with its privacy.  In fact, as we work on revising Basic Marketing, I had planned to develop a new in-chapter box about Facebook and privacy.  The problem is that this topic has been such a fast-moving target.  By the time the book has been published — and out a year or two – things are likely to have changed a great deal.  So I have decided not to do that.  The graphics in this post by Matt McKeon  “The Evolution of Privacy on Facebook.”  Click on the graphic to see how privacy has evolved on Facebook in the last five years.

[UPDATE, May 9, 2010]  Maybe I spoke too soon — or I am biased by my 16 and 18-year old kids.  Shortly after I wrote this post, I read a New York Times article, “Tell-All Generation Learns to Keep Things Offline,” (May 8, 2010) that gives me hope that our students are becoming more cautious with their online privacy.

Wow!  I am continually amazed at how our privacy is compromised on the web.  Interestingly, I am not sure our students care all that much — they post on Facebook about their love, life, and escapades where it is broadcast to their 684 “friends.”  Anyway, be wary when you use web coupons because “Web Coupons Know Lots About You, and They Tell,” (The New York Times,April 16, 2010).  In our books we discuss privacy in the last chapter — so it might fit as an example in these last weeks in class.  It might also be a useful ethics topic in pricing.

We are amazed at how little concern our students (and my kids) have about their privacy.  Are our students aware of what they sacrifice and the potential future problems they may encounter with this carefree attitude?  You might find it helpful to assign or discuss “Rogue Marketers Can Mine Your Info on Facebook,” in Wired, January 5, 2010.