Chapters 1-2 “The World as it was no longer is”
Top Uses of the Internet In Information Business Social Media Shopping In 2014Top Sites Social MediaGoogle EntertainmentFacebook GamingYouTube
Is Word of Mouth the Most Important Form of Promotion? Simple Model I buy a SUV at the local GMC dealer and LOVE it! I tell my buddy looking for a SUV that I LOVE the GMC but was not thrilled with my buying experience at the local dealer My friend then has a friend that is looking for an SUV and passes along my recommendations (and not!) Why is this SO significant? CREDIBILITY
Word of Mouth (Can I Count on It as a Promotional Strategy?) Negatives Slow to disperse Unlike advertising, you don’t control the message and it can be modified as it passes “down the grapevine” MY credibility and influence may not be as significant as the information passes down the grapevine.
What is the Role of Social Media in Word of Mouth? Social Media Timeliness … Facebook – your posts update to friends immediately Reach … Twitter can enable millions to see your message immediately 70% of large companies not participating?? Breadth of Coverage … Geography not an issue anymore Credibility …. original source traceable Original intent not lost because of digital format
Socialnomics Socialnomics: The value created and shared via social media and its efficient influence on outcomes [economic, political, relational, etc.]. Simply put: Word of Mouth on Digital Steroids
Advertising’s Future Bob Garfield of NPR and formerly of Advertising Age “I and traditional marketing and advertising are f*&%ed!” Premiums for the March Madness, Sports Illustrated swimsuit editions a thing of the past.
What does Socialnomics Mean for Traditional Marketing Communication? Advertising Revenues from traditional outlets plummeting – how effective is mass marketing now? Direct Marketing declining News Medias Scrambling Traditional Business Models no longer applicable – stumbling blocks? NY Post, CareerBuilder News must find me! Fragmentation and niche
National Advertising Newspaper ads declined 18.1% National ads fell 18.4% Classifieds dropped 30.9% Online ads dropped 3%
Negative Word of Mouth British Airways lost a customer’s luggage and then did not answer his s. The customer didn’t just tell his 500+ followers, he bought “promoted tweets” (Twitter’s form of advertising) to spread his message. “Don’t fly British Airways … their customer service is horrendous!” Ads targeted BA followers (300k+)
Viral Viewing destroys-pc-monitor/ destroys-pc-monitor/ What to do?? Do you agree with the FedEx response? Matt and Slide – example of importance of tags SNL – Power to Impact an Election? Sarah Palin spoofs 50 million viewed; half over internet replays; most pushes to social media Impacted sketch writing to target social graphs (your online connections of peers, friends, family)
Negative Blogs and Posts In advertising one negative WOM cannot be undone with 5 positive advertising messages … why? Credibility Social Media enables consumers to post complaints immediately, retain credibility and reach large numbers of individuals swiftly. Companies should embrace ALL consumers, even unhappy customers (and in a timely fashion)
Stats for Unsatisfied Customers 4% of unhappy customers complain 7 out of ten will do business again with the firm if complaint handled properly 19 of 20 if grievance handled quickly Rule of Thumb I have a bad experience I tell 6-10 people; I have 100 Twitter followers; 10% share this information and so on …
Companies on Top of Using Social Media Capital One – contest to name 2012 College Mascot attracted 120,000 voters Mayo Clinic – provides top notch information via FB, YouTube and Twitter Mercedes – Owner’s Stories for great WOM
What’s Out There About Your Company? Disney Sucks – 11.1 M results including a FB entitled, “Disney Sucks”; 10.9M videos Google Sucks – 84.9M results Chrysler Sucks – 1.2M results Amazon Sucks – 14.9M results cial-media/ Must-See-Social- Media-Marketing-Success-Stories.html cial-media/ Must-See-Social- Media-Marketing-Success-Stories.html