Please Answer below questions based on the text!

1. Briefly describe the problems or decision facing the organization in the case.

2. For question 2, consider how the five external environments (see about these areas in your text: Economic, Competitive, Technological, Political/Legal, and Sociocultural environments) affect the decision. Discuss how each of the five could impact the problem, either positively or negatively.

3. Give two or more possible alternatives or solutions to the problem described in answer 1.

4. Select one (or a combination of two or more) of your solutions from response 3 and explain why you chose it.

5. Explain how the organization could implement the solutions you selected in #4. The more detailed your explanation, the better your score will be. Make sure you have an in depth discussion as to why you selected your solution.

CHAPTER 13 | PROMOTION |: PLANNING AND ADVERTISING 533 Marketing in Action Case Real Choices at Nestle Digital advertising has revolutionized the promotion component of the marketing mix. Digital advertising allows businesses large and small to reach prospects and customers more quickly and campaigns in real time. This approach helped to flag campaign personally than advertising that uses old-school media, like print impressions that the company believed consumers would find and broadcast. It is also much more complex, with multiple objectionable. In one example, 3.7 percent of a campaign's impressions were flagged as potential problems, representing intermediaries, each having a part in the sale of the digital ad 9.23 percent of the campaign budget. Will Luttrell of Nestle space. With that complexity comes the opportunity for ineffi- technology partner Amino Payments said, "Hundreds of thou- ciency and ad fraud. Some companies, like food giant Nestle, sands of domains being purchased programmatically are are turning to the nascent technology blockchain to determine reduced down to a much more manageable view of the inven- whether ads are actually viewed by people (not "bots") and tory grouped by sellers: publishers, conglomerates, aggregators, what amount of the ad spend goes to middlemen. resellers, etc. . . . Viewing the world through the lens of 'who is Digital advertising offers the opportunity to reach specific pros- supplying your inventory' is transformative." Amino Payments pects who are likely to be interested in a company's product and to claims that advertisers that use its blockchain technology save do so in real time. This requires millisecond communication between an average of 10-15 percent in their media spend the marketer with a message to share (through a digital ad) and the Along with Nestle, major marketers such as Unilever, "publisher," such as a particular website, handled through an auto- Mcdonald's, Toyota, and Kellogg have piloted blockchain tech- mated process known as programmatic ad buying. Determining nology to increase transparency in online advertising. Nestle which prospects are of interest and then handling a payment for also uses blockchain to trace-and allow customers to learn- the ad placement involves several parties-trading desks, media the origin of the coffee beans used in its products. Walmart agencies, exchanges, and technology platforms, to name a few. also uses the technology to trace food products through the supply chain, and Chinese shipper COSCO employs blockchain Each middleman in the process expects to be paid. With so many to speed data flow and goods in ocean transportation. moving parts, there is not only cost, but also opportunity for fraud- Some warn that blockchain may not be ready for prime ulent reporting of the actual number of consumers who see the ad time. Successful use of the technology depends upon the coop- and determine the cost to the marketer. eration of the many middlemen in the digital advertising pro- Enter blockchain. Best known as the underlying technology cess, some of which may not be so enthusiastic about coming of the somewhat mysterious currency bitcoin, blockchain is at a under the authority of a consortium. A universal infrastructure basic level a distributed ledger of transactions. Unlike most sys- has not yet emerged that is widely accepted by the many parties tems that facilitate exchanges, there is no central control; the that are involved in the process. Also, some of the intermediaries database is instead distributed across many computers, which is may find the status quo more profitable. Donny Dovorin of key to the integrity of the process. Once a transaction or "block" Brave, a blockchain solution, says, "There are companies-I'm is recorded in the ledger, it can only be updated when all the not going to name names of specific [demand-side platforms] or computers involved evaluate and confirm it (via algorithms) whatever-that don't want this technology to succeed." Once approved, that block can become part of the "chain" of Companies like Nestle have the market power to coax reluc- transactions. By eliminating the need for all transactions to pass tant digital ad intermediaries into playing ball. It has created a set through a central clearinghouse, transactions can happen much of standards that digital media suppliers must meet, including more quickly, and the verification by multiple computers helps contractual guarantees for quality, scale, and analytics. Sebastien to reduce fraud. It's easy to see why these features would be Szczepaniak, the former head of e-business at Nestle, suggested mportant to those who purchase and exchange bitcoin cur- that contracts could include a requirement to use a blockchain ency. While purchasing ads does not involve the use of bitcoins, technology solution. The effort to deploy the technology may be Nestle and other companies have realized that the underlying worth it. Digital advertising is expected to grow to over $427 billion blockchain technology can also be used as a tool to streamline by 2022, and Juniper Research estimates that advertising losses the process of purchasing and tracking digital ads. could reach $100 billion by 2023. In 2019, Nestle spent 40 per- In the past, about 85 cents per advertising dollar was cent of its ad budget on digital. Given its heavy use of this received by the digital publisher. Largely due to the many mid- medium, Nestle and other companies will likely continue to use dlemen in today's digital advertising environment, that number disruptive technologies like blockchain to ensure that its advertis- has dropped to 40 cents. Using blockchain, the many transac- ing messages actually reach their intended targets and that the tions that occur in the digital ad buying process can each be company's investment in promotion pays off. 54 treated as a block and verified through multiple computer sys- tems across which the transaction ledger is distributed. Discrep- Questions for Discussion ancies can be flagged and actions taken to correct payment amounts or to spot unauthorized or unnecessary intermediaries 13-30. The success of a blockchain approach is largely depen- that add costs to the process. The technology can also help dent upon the cooperation of the many parties in the ad buying process. What arguments could Nestle and other determine whethera ether ads are running on websites (or pages on likeminded companies use to convince reluctant inter- those websites ) that 's) that web surfers actually see and can help ions in which internet "bots" (rather than real mediaries to get on board with a blockchain strategy? cover situations in human users ) are drivin ire driving up clicks and with them, ad costs. 13-31. What role, if any, could consumers play in encouraging At Nestle, blockchain is providing real results. The company more accountability among the parties in the digita advertising process? What arguments might convince has used a blockchain technology (along with other third-party verification providers) to ensure fee transparency and to modify consumers to do this