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NEW YORK ( TheStreet) -- Don't panic in the face of this correction, Jim Cramer urged his Mad Money viewers Wednesday. While the markets may still have further to fall, investors need to be ready with their shopping list of stocks to buy when the bottom finally comes.

Cramer explained to viewers exactly what happens during a correction such as the current one. First, the stocks in the primary blast zone get hit. In this market, those are the industrial stocks, the ones that suffer from the weakness in Europe that has now spread to Russia, China and South America. The estimates for these stocks are still too high, Cramer noted, which means their stocks have farther to fall.

Next to be hit are the stocks in the secondary blast zone, which are the consumer packaged goods companies such as Kellogg (K - Get Report) and Procter & Gamble (PG - Get Report) . These stocks are usually shielded from economic weakness, but with the dollar so strong they're getting hit by a strong U.S. dollar.

Also in the secondary blast zone are the banks, which need higher interest rates to thrive but won't likely see them anytime soon.

But then there are the stocks receiving collateral damage. Those are the ones that don't deserve to be going lower and can be bought into the weakness. Cramer reiterated that the restaurant and retail stocks are in this group, as are the biotechs and the defense companies.

Cramer said there's no rush to buy this last group because the markets are only 3% from their highs and may have further to fall. However,they will be the first to bounce when the bottom is finally reached.

Executive Decision: Spencer Rascoff

For his "Executive Decision" segment, Cramer sat down with Spencer Rascoff, CEO of Zillow (Z - Get Report) , the online real estate Web site that's seen its shares rise 36% so far in 2014.

Rascoff commented on the recent news that Rupert Murdoch is buying Move (MOVE) , purveyors of Realtor.com, Zillow's only competing Web site after Zillow snapped up Trulia earlier this year. He said Zillow is still the largest player in the market and remains very focused on real estate agents and brokers, which is why the company continues to gain market share every quarter.

Rascoff noted that when it comes to the Internet, user experience rules. Once you have an audience the advertisers will follow, he said, which is why the Trulia acquisition makes sense. Zillow will operate both brands when the acquisition closes, allowing users to pick the brand that fits them best while advertisers can quickly advertise on both platforms.

Finally, when asked about whether a slowing housing market will hurt Zillow, Rascoff said the continued migration from offline to online in the real estate market will far outweigh any short-term weakness in home prices.

Cramer remains a fan of Zillow.

Why Cramer Was Right About Angie

Message to CEOs of publicly traded companies: Sometimes Cramer actually knows what he's talking about.

That was Cramer's self-assessment after hearing that Angie's List (ANGI - Get Report) is exploring strategic options, including putting itself up for sale, advice he suggested the company follow just last week on Mad Money. Shares of Angie's List soared almost 20% today on the news.

Cramer said Angie's subscription-based business model just doesn't work in a world where free reviews and advice are everywhere. That's why the company spends nearly 84% of its revenue on sales and marketing to attract new subscribers. Cramer said investors who still own Angie's should ring the register and sell the stock as soon as possible.

Then there's eBay (EBAY - Get Report) , a stock that rallied 7.5% on the news that it's spinning off PayPal, something that Cramer has been advocating for years.

But in the case of eBay, it may be too little, too late because several analysts have downgraded the stock on fears that rising competition from Apple (AAPL - Get Report) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, and others may soon make PayPal far less relevant. Cramer said the move certainly appears reactive to Apple Pay, which may signal serious problems down the road.

Time to Move On

When the facts change, you have to change your mind, Cramer reminded viewers. You can only make investment decisions based on the information you have today, but if that information changes tomorrow you need to be able to cut your losses and live for another day.

That was certainly the case with Ford (F - Get Report) , a company that told us a few months ago that things were improving in both Europe and South America. Cramer said he believed Ford's former CEO Alan Mulally when he made those statements. However, today, when the company said things are weakening not only in those regions but also in the U.S., that makes Ford a sell, even if that means taking a loss.

As an investor, you need to admit your mistakes, Cramer concluded. In the case of Ford, many people, including himself, got it wrong.

Lightning Round

In the Lightning Round, Cramer was bullish on Manitowoc (MTW - Get Report) and Salix Pharmaceuticals (SLXP) .

Cramer was bearish on New York Community Bancorp (NYCB - Get Report) , Harman International (HAR) , Lazard (LAZ - Get Report) and Chart Industries (GTLS - Get Report) .

Executive Decision: Al Monaco

In his second "Executive Decision" segment, Cramer sat down with Al Monaco, president and CEO of pipeline operator Enbridge (ENB) , a stock that yields 2.7% and is on the forefront of America's oil and gas revolution.

Monaco acknowledged that increased regulation is slowing down pipeline development in the U.S., but also noted that his company has been executing on projects that have already been approved and shareholders have gained as a result.

While regulators are adding costs to the pipeline process, Monaco said pipelines still represent a better value than alternatives like railroads, which have a worse safety record.

When asked why we need so many new pipelines in the U.S., Monaco explained that not all oil is the same. Heavy oil from Canada fits best with Gulf Coast refiners, for example, while lighter crude from the shale fields works well with East coast refineries. Monaco was in favor of building the Keystone XL pipeline from Canada and said he supports any additional capacity from our neighbors to the north.

Finally, when asked if continental energy independence is possible by 2018, Monaco said he believes it is, as long as projects like Keystone can get the oil from where it is to where it needs to go.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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-- Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.