McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. USING SOCIAL MEDIA TO CONNECT WITH CUSTOMERS

Social Media 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 19, you should be able to : LO2 LO1 LO3 Identify the four major social networks and how brand managers integrate them into their organizations’ marketing actions Describe the differing roles of those receiving messages through traditional media versus social media and the factors brand managers use to select a social network Define social media and describe how they differ from traditional advertising media

Social Media 1-3 LEARNING OBJECTIVES (LO) After reading Chapter 19, you should be able to : LO5 LO4 Explain how social media can produce sales revenues for a brand and compare the performance measures linked to inputs or costs versus outputs or revenues Describe how the convergence of the real and digital worlds affects the future of social media

Connecting with Today’s Tourists Using Social Media Opening Story – Korea Tourism Organisation 1-4

1-5 Social Media differs from Traditional Media LO1 What are ‘Social Media’? Defining & Classifying Social Media Defining Social Media Classifying Social Media Popularity is promoted User generated/submitted content & comments Self-Disclosure Media Richness

1-6 Social Media differs from Traditional Media LO1 FIGURE 19-1 FIGURE 19-1 Social media classified by self- disclosure and media richness. Observe that media richness increases from words and photos to videos and animation

1-7 Social Media differs from Traditional Media LO1 Traditional vs. Social Media Understanding Social Media Ability to reach both large & niche audiences Expense & Access Training & Number of people involved Time to delivery Permanence (immutability) Credibility and Social Authority

1-8 Four Important Social Networks LO2 Facebook: an Overview Social Media for the Brand Manager Association with Groups Status Updates Privacy Privacy settings Open system – can be Googled Nov Opt-in Ruling Pages

1-9 Four Important Social Networks LO2 FIGURE 19-2 FIGURE 19-2 Facebook Profile for Bitter Girls, with elements of interest to the brand manager highlighted.

1-10 Four Important Social Networks LO2 FIGURE 19-2A FIGURE 19-2A Right Sidebar of Facebook Profile for Bitter Girls, with elements of interest to the brand manager highlighted.

1-11 Four Important Social Networks LO2 FIGURE 19-2B FIGURE 19-2B Header of Facebook Profile for Bitter Girls, with elements of interest to the brand manager highlighted.

1-12 Four Important Social Networks LO2 FIGURE 19-2C FIGURE 19-2C Left Sidebar of Facebook Profile for Bitter Girls, with elements of interest to the brand manager highlighted.

1-13 Four Important Social Networks LO2 Facebook: an Overview Social Media for the Brand Manager Guidelines for engaging Fans Make it familiar with a twist Leverage your Assets Keep it Fresh Let users get engaged and guide content

1-14 Four Important Social Networks LO2 Facebook: an Overview Social Media for the Brand Manager Why Users ‘unlike’ Too frequent, trivial posts Posts about controversial topics

1-15 Four Important Social Networks LO2 FIGURE 19-3 FIGURE 19-3 How brand managers can use social networks in developing marketing strategies.

1-16 Four Important Social Networks LO2 Twitter: an Overview Social Media for the Brand Manager “A discovery engine for what’s going on” Six-category breakdown Pointless Babble – 41% Conversational – 38% Pass-along Value – 9% Self-Promotion – 6% Spam – 3% News – 3%

1-17 Four Important Social Networks LO2 Twitter: an Overview Social Media for the Brand Manager Guidelines for engaging Fans Generate brand buzz: official profile, recruit followers Tweet photos of products Follow people who mention the product, and listen to their comments Tweet information of value: Starbucks’ Free Pastry Day

1-18 Four Important Social Networks LO2 LinkedIn: an Overview Social Media for the Brand Manager Useful for B2B Image Building Business development to find sales leads & vendors Create discussion groups to demonstrate expertise

1-19 Four Important Social Networks LO2 YouTube: an Overview Social Media for the Brand Manager Streaming User-Generated Video Content UGC & Corporate material OK Go has used YouTube to gain fans, licensees, live shows and sponsors

1-20 Four Important Social Networks LO2 Youtube: an Overview Social Media for the Brand Manager Guidelines for engaging Fans Create a channel rich in Keywords, to improve the odds of showing up in user searches Target viewers using YouTube’s insights and analytics research, especially to determine what key words are driving User Visits Remember that money matters; brand channels could require upwards of $200,000 / quarter of media spending

1-21 Four Important Social Networks LO2 Marketing Matters Other Favourite Social Networks Vimeo StumbleUpon Foursquare Hi5 Qzone Cyworld Wretch Zing Me Flickr Groupon Meetup Tumblr

1-22 Integrating Social Media LO3 Integrating Social Media Social Media & Strategic Marketing Social Media differs from Traditional Communication TC: One-way communication ending with the audience SM: Seeks out active receivers, converts to evangelists / immediate action to buy e.g. Groupon

1-23 Integrating Social Media LO3 Integrating Social Media Social Media & Strategic Marketing Selecting the Social Network: Criteria Visitors and Registered Users Audience Data Available Specialised focus

1-24 Integrating Social Media LO3 FIGURE 19-4A FIGURE 19-4A Unique visitors to Facebook, Twitter, LinkedIn and YouTube in selected Asian countries.

1-25 Integrating Social Media LO3 FIGURE 19-4B FIGURE 19-4B Unique / registered viewers of social networking sites in selected Asian countries

1-26 Integrating Social Media LO3 FIGURE 19-5 FIGURE 19-5 Demographics of Global Facebook visitors

1-27 How Social Media produces Sales LO4 Facebook Ad Platform Example How Social Media Produces Sales Role of the Zappos.com Brand Manager (advertiser) Role of Facebook (publisher

1-28 How Social Media produces Sales LO4 Measuring Results of Social Media How Social Media Produces Sales Performance Measures Linked to Input/Costs Cost per Action (CPA) Cost per Thousand (CPM) Performance Measures Linked to Output/Revenues Fans Share of Voice Page Views / Visitors / Unique Visitors Average page views per visitor Interaction Rate Click-Through Rate (CTR) Fan Source

1-29 How Social Media produces Sales LO4 FIGURE 19-6 FIGURE 19-6 Performance measures for social networks linked to inputs or costs

1-30 How Social Media produces Sales LO4 Greenpeace vs Nestle’s Kit Kat Social Media Nightmare Greenpeace’s Shock Campaign Uploaded graphic YouTube video “Killer Kat” Kit Kat logo Kit Kat’s Response Removal from YouTube – attention on Flickr/Vimeo “Thanks for the lesson in manners.” Immediate negative response Nestle needed to back down immediately

1-31 How Social Media produces Sales LO4 Greenpeace vs Nestle’s Kit Kat Social Media Nightmare Social Media Lessons for Brand Managers Do not be aggressive; instead be transparent and approachable Communicate directly with Key Influencers Respond swiftly with honesty, transparency, empathy, facts, a will to listen, and an openness to change Communicate the solution through social media Listen & address feedback for brand recovery Have an emergency plan before it erupts

1-32 The Future of Social Media LO5 Convergence of Real & Digital Worlds The Future of Social Media Smartphones Apps

1-33 The Future of Social Media LO5 FIGURE 19-7 FIGURE 19-7 Convergence of real and digital world allows better measurement of marketing actions

1-34 The Future of Social Media LO5 In the future, we may see Creative ways to personalise social media connections Bar codes, QR, RFID linked to apps Purchases made with fob or credit card-linked smartphone Social network charging for user actions Emphasis on measuring marketing ROI Convergence of Real & Digital Worlds The Future of Social Media

1-35 The Future of Social Media LO5 Global Marketing – Chuck Norris in Czech Political and International Affairs Facebook censored in China Arab Spring & Middle East riots The Global Reach of Social Media The Future of Social Media