Introduction to Chapter 22: Social Media and Marketing Notes: What are some of the challenges of using social media in marketing? How can marketers develop an effective social media strategy? Designed & Prepared by Laura Rush B-books, Ltd. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Learning Outcomes Describe social media, how it is used, and its relation to integrated marketing communications Explain how to create a social media campaign Evaluate the various methods of measurement for social media Explain consumer behavior on social media Describe the social media tools in a marketer’s toolbox and how they are useful Describe the impact of mobile technology on social media LO1 LO2 LO3 LO4 Notes: In Chapter 22, you will learn what social media is, how it differs from traditional media, and how to create a social media campaign. You will also learn the various methods of measuring social media and how to evaluate each one's effectiveness. LO5 LO6 Copyright Cengage Learning 2013 All Rights Reserved

Social Media Tools and Platforms Chapter 22 Social Media and Marketing Social Media Tools and Platforms Media sharing sites Microblogs Blogs Social networks Notes: Social media technology changes daily, offering consumers new ways to experience social media platforms, which must constantly innovate to keep up with consumer demands. Copyright Cengage Learning 2013 All Rights Reserved

Social Media and Consumers Chapter 22 Social Media and Marketing Social Media and Consumers At the basic level, social media consumers want to: exchange information collaborate with others have conversations Notes: Social media has changed how and where conversations take place, making human interaction global. Research shows that more than 73 percent of active online users have read a blog and more than half belong to at least one social network. It is up to the marketer to DECIDE if ENGAGING in those conversations will be PROFITABLE and to find the most effective method of ENTERING the conversation. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Social Commerce Social Commerce is… a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Crowdsourcing Crowdsourcing Using consumers to develop and market product. Notes: Crowdsourcing offers a way for companies to engage heavy users of a brand and receive input. This in turn increases those users’ brand advocacy and lessens the likelihood that a change will be disliked enough to drive away loyal customers. Copyright Cengage Learning 2013 All Rights Reserved

Categorizing Media Types Chapter 22 Social Media and Marketing Categorizing Media Types Owned Media Earned Media Paid Media Notes: Owned media – online content that an organization creates and controls Earned media – a public relations term connoting free media such as mainstream media coverage Paid media – content paid for by a company to be placed online Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing The Listening System The first action a marketing team should take when initiating a social media campaign is simple: LISTEN Copyright Cengage Learning 2013 All Rights Reserved

Three Areas of Measurement Chapter 22 Social Media and Marketing Three Areas of Measurement Public relations measurement Social media measurement Social media monitoring Notes: Social media measurement – Ever-changing metrics that are used to determine the ROI of each tool. Public relations measurement – PR measurement exists to calculate the impact of social media on press coverage and other elements of PR. Social media monitoring – Tools that are used less for campaign metrics and more for customer service improvement, brand management, and prospecting. Copyright Cengage Learning 2013 All Rights Reserved

Categories of Social Media Users Chapter 22 Social Media and Marketing Categories of Social Media Users Creators Critics Collectors Joiners Spectators Inactives Notes: Creators – Those who produce and share online content like blogs, Web sites, articles, and videos. Critics – Those who post comments, ratings, and reviews of products and services on blogs and forums. Collectors – Those who use RSS feeds to collect information and vote for Web sites online. Joiners – Those who maintain a social networking profile and visit other sites. Spectators – Those who read blogs, listen to podcasts, watch videos, and generally consume media. Inactives – Those who do none of these things. Recent classifications include conversationalists– people who poststatus updates on social-networkign sites and microblogging services such as Twitter, and rookies—joiners who are new to the entire social media scene. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Blogs Noncorporate Blogs Blog Corporate Blogs Independent blogs that are not associated with the marketing efforts of any particular company or brand. A publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author’s entries. Blogs that are sponsored by a company or one of its brands and maintained by one or more of the company’s employees. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Microblogs Microblogs are blogs with strict post limits. Useful for disseminating news, promoting longer blog posts, sharing links, announcing events, and promoting sales. The ways a business can use Twitter to engage customers are almost LIMITLESS. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Social Networks Marketing Goals for Social Networking Sites Increasing awareness Targeting audiences Promoting products Forging relationships Highlighting expertise and leadership Attracting event participants Performing research Generating new business Notes: Social networking sites allow individuals to connect—or network—with friends, peers, and business associates. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Media Sharing Sites Media Sharing Sites are… Web sites that allow users to upload and distribute multimedia content like videos and photos. Notes: Photo sharing sites allow users to archive and share photos. Video creation and distribution have gained popularity among marketers because of video’s rich ability to tell stories. A podcast is a digital audio or video file that is distributed serially for other people to listen to or watch. Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Social News Sites Social News Sites Web sites that allow users to decide which content is promoted on a given Web site by voting that content up or down. Copyright Cengage Learning 2013 All Rights Reserved

Location-Based Social Networking Sites Chapter 22 Social Media and Marketing Location-Based Social Networking Sites Location-Based Social Networking Sites Web sites that combine the fun of social networking with the utility of location-based GPS technology Copyright Cengage Learning 2013 All Rights Reserved

Copyright Cengage Learning 2013 Chapter 22 Social Media and Marketing Review Sites Review Sites are… Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services. According to Nielsen Media Research, more than 70 PERCENT of consumers said they trusted online consumer opinions. Copyright Cengage Learning 2013 All Rights Reserved

Virtual Worlds and Online Gaming Chapter 22 Social Media and Marketing Virtual Worlds and Online Gaming Virtual worlds and online gaming include massive multiplayer online games (World of Warcraft) and online communities (Second Life). Almost 800 million people participated in some sort of virtual world experience. Annual revenue near $1 billion. Nearly 25 percent of people play games within social networking sites. Copyright Cengage Learning 2013 All Rights Reserved

Mobile and Smartphone Technology Chapter 22 Social Media and Marketing Mobile and Smartphone Technology More than 25 percent of the world’s population owns a mobile phone More than 75 percent of the U.S. population owns a mobile phone U.S. mobile marketing spending reached nearly $593 million in 2010 Copyright Cengage Learning 2013 All Rights Reserved

Applications and Widgets Chapter 22 Social Media and Marketing Applications and Widgets Apps Widgets Harness mobile technology Platform-specific or convert existing content to mobile format Can generate buzz and customer engagement aka “gadgets” or “badges” Run within existing online platforms Cheaper to develop Extend reach beyond existing platforms Notes: When an app is well branded and integrated into a company’s overall marketing strategy, it can create buzz and generate customer engagement. A web widget allows a developer to embed a simple application such as a weather forecast, horoscope, or stock market ticker into a Web site, even if the developer did not write (or does not understand) the application’s source code. Copyright Cengage Learning 2013 All Rights Reserved 20