FRS 001FF — Sec. 001 — (1 unit) — CRN 73909— M 10:00-11:50 AM — 161 AOB IV
Stealth Marketing: Opportunities and Ethical Issues

Instructor: Eitan Gerstner, Graduate School of Management

Description: In recent years companies started to use stealth marketing to help cut through the traditional clutter of advertising. Stealth marketing attempts to present new products by creating and spreading “buzz” in a covert and sometimes tricky way. It relies heavily on the power of word-of-mouth to make customers feel they just “stumbled” upon new products or services themselves. This can be achieved by recruiting the right people and asking them to spread the word about a product or service without it appearing to be company-sponsored. While companies may see stealth marketing as an innovative way to help create awareness and demand for new products, these practices also set-off alarms with consumer groups who claim that they are unethical and deceiving. The purpose of this seminar is to (a) provide an overview of traditional marketing, (b) examine stealth marketing critically, and (c) explore ways of using stealth marketing in a way that will be acceptable to both companies and consumer groups, based on ethical standards.

Format: Individual overall performance will be earned based on the originality and creativity of the work, contribution to class discussions, class presentations, and professionalism (listening to other students, not being late to the meetings, etc…). Grading: Course credit will be accumulated based on activities you will complete (no exams)
• In-class activities, up to 30 points.
• Individual overall performance and contribution to class and team : up to 30 points
• Team Project: up to 40 points

About the Instructor: Eitan Gerstner is Professor of Marketing at the University of California, Davis. His articles on pricing, service marketing, and channels of distribution appeared in marketing and economics journals including the Journal of Marketing Research, Marketing Science, Journal of Service Research, Journal of Business, the American Economic Review, and Quarterly Journal of Economics. His most recent research focused on pricing under uncertain demand, customer acquisition and referrals, and on service and satisfaction guarantees. He serves on the Editorial Board of Marketing Science, and served on the Editorial Board of the International Journal of Research in Marketing, and as consultant on service quality management and marketing strategy.