Because NASCAR is the most popular spectator sport and the second most popular television sport of the citizens of the United States, the organization has always been a popular choice for advertisers. This case looks at NASCAR's use of digital marketing and how the company is implementing social networking into its long-term marketing strategy.
It is estimated that two-thirds of consumers in the United States have visited social networks or blogs. As social networks evolve, both marketers and the owners of social networking sites are realizing the opportunities such networks offer—an influx of advertising dollars for site owners and a large reach for the advertiser. As a result, marketers are experimenting with promotion on social networks. Three of the most prominent sites are Facebook, LinkedIn, and Twitter.
Read the case below and answer the questions that follow.
NASCAR (the National Association for Stock Car Auto Racing), was founded in 1948 by Bill France Sr. as a sanctioning body for stock car racing and held its first race less than a week later. In the early 1970s, when television coverage of sports exploded, corporations began marketing their products by sponsoring NASCAR events and drivers. Today, NASCAR racing is the United States' most popular spectator sport and the second most popular television sport. Whether you watch NASCAR or not, you have likely seen that the cars and drivers' jumpsuits are covered in advertisements. In 2009, the organization also announced a three-year deal to run ads in movie theaters. All this has worked out well—statistics show that NASCAR fans do patronize its sponsor companies. NASCAR and its sponsors also use social media to connect with fans.
NASCAR.com is a popular site that features links to sponsors via Facebook, Twitter, and YouTube. Sprint, one of NASCAR's cup sponsors, created Facebook and Twitter "Miss Sprint Cup" accounts, which have just over 100,000 fans. Miss Sprint Cup representatives travel the NASCAR circuit and post updates to their pages. NASCAR fans tune in to these posts for information about favorite drivers and images from races that Miss Sprint Cup representatives post. Extending one step further, NASCAR reviewed independent NASCAR fan sites and awarded journalist status to some, giving selected fan bloggers access to media events and resources and even press boxes. NASCAR was awarded the Forrester Groundswell Award for business-to-consumer listening based on the handling of its NASCAR Fan Council, an online community founded to learn more about its fans.
1. Which of the following is NOT an appropriate description of NASCAR?
NASCAR is primarily an e-business.
NASCAR is using digital media to communicate with fans.
NASCAR is using digital marketing to communicate with fans.
NASCAR is using social networks to communicate with fans.
NASCAR is encouraging consumer-generated marketing.
2. NASCAR awarded journalist status to some fan bloggers, encouraging them to post information for other fans to view. This is an example of which of the following characteristics of digital marketing?
Interactivity
Addressability
Accessibility
Connectivity
Control
3. Which of the following considerations best represents how NASCAR is using digital media to create effective marketing strategies on the web?
Product considerations.
Distribution considerations.
Promotion considerations.
Pricing considerations.
Emergency messaging considerations.
4. Which of the following reasons is least likely to explain NASCAR's decision to encourage blogging by giving some fans journalist passes?
NASCAR realized consumers were not influenced by blogs.
Consumers tend to trust other consumers over corporations.
Consumers tend to rely on recommendations of friends, family, and fellow consumers when making purchasing decisions.
NASCAR hopes to interact with consumer-generated marketers to address problems.
NASCAR hopes to use consumer-generated forums to create a buzz around drivers.
5. Which of the following Forrester Research Social Technographic consumer types are most likely to receive journalist status?
Creators
Conversationalists
Critics
Collectors
Joiners