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Social Media and Marketing

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1 Social Media and Marketing
Chapter 18 Social Media and Marketing Chapter 19 Social Media and Marketing MKTG9 Lamb, Hair, and McDaniel © 2016 Cengage Learning. All Rights Reserved.

2 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing LEARNING OUTCOMES 19-1 Describe social media, how they are used, and their relation to integrated marketing communications 19-2 Explain how to create a social media campaign 19-3 Evaluate the various methods of measurement for social media 19-4 Explain consumer behavior on social media © 2016 Cengage Learning. All Rights Reserved.

3 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing LEARNING OUTCOMES 19-5 Describe the social media tools in a marketer’s toolbox and how they are useful 19-6 Describe the impact of mobile technology on social media 19-7 Understand the aspects of developing a social media plan © 2016 Cengage Learning. All Rights Reserved.

4 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing What Are Social Media? 19-1 Describe social media, how they are used, and their relation to integrated marketing communications © 2016 Cengage Learning. All Rights Reserved.

5 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing What Are Social Media? Any tool or service that uses the Internet to facilitate conversations. Notes: Social media can also be defined relative to traditional advertising like television and magazines in that traditional marketing media offers a mass media method of interacting with consumers, while social media offers more one-to-one ways to meet consumers. © 2016 Cengage Learning. All Rights Reserved.

6 Social Media Tools and Platforms
Chapter 18 Social Media and Marketing Social Media Tools and Platforms Media sharing sites Microblogs Blogs Social networks Notes: Social media have several implications for marketers and the ways that they interact with their customers: Marketers must realize that they often do not control the content on social media sites. The ability to share experiences quickly and with such large numbers of people amplifies the impact of word of mouth in a way that can eventually affect a company’s bottom line. Social media allow marketers to listen. Social media provide more sophisticated methods of measuring how marketers meet and interact with consumers than traditional advertising does. Social media allow marketers to have much more direct and meaningful conversations with customers. © 2016 Cengage Learning. All Rights Reserved.

7 Social Media and Consumers
Chapter 18 Social Media and Marketing Social Media and Consumers At the basic level, social media consumers want to: Exchange information Collaborate with others Have conversations 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. Notes: Social media has changed how and where conversations take place, making human interaction global. Social media have changed how and where conversations take place, even globalizing human interaction through rapidly evolving technology. © 2016 Cengage Learning. All Rights Reserved.

8 How Consumers Use Social Media
Chapter 18 Social Media and Marketing How Consumers Use Social Media Before beginning to understand how to leverage social media for brand building, it is important to understand what consumers are using and how they are using it. Every day: 350 million photos are uploaded on Facebook 400 million tweets are written Five million photos and eighty-six million comments are uploaded to Instagram More than 50,000 hours of video are uploaded to YouTube Notes: In the United States, ninety percent of American adults own a cell phone, while forty-five percent own a smartphone. These numbers jump to ninety-three percent and sixty-three percent for adults age eighteen to twenty-nine. Among all adults, fifty-five percent access the Internet on a mobile phone, and forty percent have accessed a social media Web site. Tablet usage has hit critical mass among mobile surfers—one in four smartphone users owns a tablet as well. © 2016 Cengage Learning. All Rights Reserved.

9 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Social Commerce 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. Notes: Social commerce generated $23.9 billion in 2014. © 2016 Cengage Learning. All Rights Reserved.

10 Social Media and Integrated Marketing Communications
Chapter 18 Social Media and Marketing Social Media and Integrated Marketing Communications Allows marketers to: Allows consumers to: Have conversations with consumers Forge deeper relationships Build brand loyalty Connect with each other Share opinions Collaborate on new ideas according to interests Notes: While marketers typically employ a social media strategy alongside traditional channels, many marketers are increasingly incorporating social media into their budgets. Crowdsourcing, or using consumers to develop and market products, is one example of how social media has enabled companies to use the input of many where before it had the input of few. © 2016 Cengage Learning. All Rights Reserved.

11 Explain how to create a social media campaign
Chapter 18 Social Media and Marketing Creating and Leveraging a Social Media Campaign 19-2 Explain how to create a social media campaign © 2016 Cengage Learning. All Rights Reserved.

12 Categorizing Media Types
Chapter 18 Social Media and Marketing Categorizing Media Types Owned Media Earned Media Notes: Recall from Chapter 16: Owned media is online content that an organization creates and controls. Earned media is a public relations term connoting free media such as mainstream media coverage. Paid media is content paid for by a company to be placed online. Paid Media © 2016 Cengage Learning. All Rights Reserved.

13 Leveraging Different Types of Media
Chapter 18 Social Media and Marketing Leveraging Different Types of Media Key Guidelines Maximize owned media by reaching out beyond their existing Web sites to create portfolios of digital touch points Recognize that aptitude at public and media relations no longer translates into earned media. Paid media must serve as a catalyst to drive customer engagement and expand into emerging channels. Notes: To leverage all three types of media, marketers must follow a few key guidelines. If balanced correctly, all three types of media can be powerful tools for interactive marketers. © 2016 Cengage Learning. All Rights Reserved.

14 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing The Listening System The first action a marketing team should take when initiating a social media campaign is simple: LISTEN! Notes: Social media monitoring is the process of identifying and assessing what is being said about a company, individual, product or brand. It can involve text mining specific key words on social networking Web sites, blogs, discussion forums, and other social media. Once a company has started listening, it typically wants to develop a more formalized approach. Social media monitoring is the process of identifying and assessing what is being said about a company, individual, product, or brand. © 2016 Cengage Learning. All Rights Reserved.

15 19.1 Eight Stages of Effective Listening Stage 1: Stage 2: Stage 3:
Chapter 18 Social Media and Marketing Stage 1: Stage 2: Stage 3: Stage 4: Stage 5: Stage 6: Stage 7: Stage 8: Without objective Tracking brand mentions Identifying market risks and opportunities Improving campaign efficiency Measuring customer satisfaction Responding to customer inquiry Better understanding of customers Being proactive and anticipating customer demands Stage Description SOURCE: Jeremiah Owyang, “Web Strategy Matrix: The Eight Stages of Listening,” Web Strategy, November 10, 2009, Jim Sterne, Social Media Metrics (Hoboken, NJ: John Wiley & Sons, 2010). © 2016 Cengage Learning. All Rights Reserved.

16 Social Media Objectives
Chapter 18 Social Media and Marketing Social Media Objectives Listen and Learn Build relationships and awareness Promote products and services Manage your reputation Improve customer service Open dialogues with stakeholders. Answer customer questions candidly. Get customers talking about products and services. Respond to comments and criticisms. Participate in forums and discussions. Seek out displeased customers and engage them directly to solve issues. Monitor what is being said about the brand. Develop a listening strategy. Notes: Here are some practical ideas that marketing managers should consider when setting social media objectives. © 2016 Cengage Learning. All Rights Reserved.

17 Evaluate the various methods of measurement for social media
Chapter 18 Social Media and Marketing Evaluation and Measurement of Social Media 19-3 Evaluate the various methods of measurement for social media © 2016 Cengage Learning. All Rights Reserved.

18 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Social Media Metrics Buzz Search Engine Interest Influence Participation Sentiment Analysis Notes: This slide lists some of the top social media metrics used today. However, these measurements are only valuable if they are tied to performance indicators that allow marketers and managers to see how social media directly impact the business. Given the relative ease and efficiency with which organizations can use social media, a positive return on investment (ROI) is likely for many—if not most—organizations. Web Site Metrics © 2016 Cengage Learning. All Rights Reserved.

19 Explain consumer behavior on social media
Chapter 18 Social Media and Marketing Social Behavior of Consumers 19-4 Explain consumer behavior on social media © 2016 Cengage Learning. All Rights Reserved.

20 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 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. Rookies are classified as joiners. Conversationalists are people who post status updates on social networking sites and microblogging services such as Twitter. Conversationalists represent 31 percent of users. © 2016 Cengage Learning. All Rights Reserved.

21 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Categories of Social Media Users A study of social media users determined that: 24 percent functioned as creators 36 percent functioned as critics 23 percent functioned as collectors 68 percent functioned as joiners 73 percent functioned as spectators 14 percent functioned as inactives © 2016 Cengage Learning. All Rights Reserved.

22 Social Media Tools: Consumer- and Corporate-Generated Content
Chapter 18 Social Media and Marketing Social Media Tools: Consumer- and Corporate-Generated Content 19-5 Describe the social media tools in a marketer’s toolbox and how they are useful © 2016 Cengage Learning. All Rights Reserved.

23 Social Media Tools Blogs Microblogs Social Networks
Chapter 18 Social Media and Marketing Social Media Tools Blogs Microblogs Social Networks Media Sharing Sites Social News Sites Notes: These are all tools in a marketing manager’s toolbox, available when applicable to the marketing plan but not necessarily to be used all at once. Location-Based Social Networking Sites Review Sites Virtual Worlds and Online Gaming © 2016 Cengage Learning. All Rights Reserved.

24 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Blogs Non-corporate 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. © 2016 Cengage Learning. All Rights Reserved.

25 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Microblogs Microblogs are blogs that entail shorter posts than traditional blogs. 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. © 2016 Cengage Learning. All Rights Reserved.

26 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 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. © 2016 Cengage Learning. All Rights Reserved.

27 © 2016 Cengage Learning. All Rights Reserved.
19.2 Chapter 18 Social Media and Marketing Facebook Lingo Non-Individual (Usually Corporate) Individual Page Profile Fan of a page, tells fan’s friends that the user is a fan, creates mini viral campaign Friend a person, send private messages, write on the wall, see friend-only content Public, searchable Privacy options, not searchable unless user enabled © 2016 Cengage Learning. All Rights Reserved. 27

28 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Media Sharing Sites 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. © 2016 Cengage Learning. All Rights Reserved.

29 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing 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. Notes: Marketers have found that these sites are useful for promoting campaigns, creating conversations around related issues, and building Web site traffic. If marketing content posted to a crowdsourced site is voted up, discussed, and shared enough to be listed among the most popular topics of the day, it can go viral across other sites, and eventually, the entire Web. © 2016 Cengage Learning. All Rights Reserved.

30 Location-Based Social Networking Sites
Chapter 18 Social Media and Marketing Location-Based Social Networking Sites Web sites that combine the fun of social networking with the utility of location-based GPS technology. © 2016 Cengage Learning. All Rights Reserved.

31 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Review Sites Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services. Notes: According to Nielsen Media Research, more than 70 percent of consumers said they trusted online consumer opinions. By giving marketers the opportunity to respond to their customers directly and put their businesses in a positive light, review sites certainly serve as useful tools for local and national businesses. © 2016 Cengage Learning. All Rights Reserved.

32 Virtual Worlds and Online Gaming
Chapter 18 Social Media and Marketing Virtual Worlds and Online Gaming Virtual worlds and online gaming include massive multiplayer online games (The Elder Scrolls Online) and online communities (Poptropica). Almost 800 million people participate in some sort of virtual world experience. Annual revenue is near $1 billion. Nearly 25 percent of people play games within social networking sites or on mobile devices. Notes: The top five games on Facebook are Candy Crush Saga, FarmVille 2, Texas HoldEm Poker, Pet Rescue Saga, and Dragon City. Candy Crush Saga nets 93 million users per day. A growing trend among mobile games is to use mobile ads to generate revenue for the game-makers. © 2016 Cengage Learning. All Rights Reserved.

33 Describe the impact of mobile technology on social media
Chapter 18 Social Media and Marketing Social Media and Mobile Technology 19-6 Describe the impact of mobile technology on social media © 2016 Cengage Learning. All Rights Reserved.

34 Mobile and Smartphone Technology
Chapter 18 Social Media and Marketing Mobile and Smartphone Technology Worldwide, there are more than 6 billion mobile phones in use, 17 percent of which are smartphones. The mobile platform is such an effective marketing tool—especially when targeting a younger audience. Notes: In 2013, mobile advertising grew by more than eighty percent in the U.S. market. That rate is expected to slow down to about fifty percent by 2015, when mobile advertising will make up about ten percent of ad spending. Digital advertising alone will account for twenty-eight percent of all U.S. ad spending by 2015. © 2016 Cengage Learning. All Rights Reserved.

35 Reasons for Mobile Marketing Popularity
Chapter 18 Social Media and Marketing Reasons for Mobile Marketing Popularity Mobile marketing is measurable. It is effective at garnering consumer attention in real time. Consumers are acclimating to mobile privacy and pricing standards. There is a low barrier to entry. It has a higher response rate than traditional media types. Notes: There are several reasons for the recent popularity of mobile marketing. © 2016 Cengage Learning. All Rights Reserved.

36 Common Mobile Marketing Tools
Chapter 18 Social Media and Marketing Common Mobile Marketing Tools SMS MMS Mobile Web Sites Mobile ads Bluetooth Smartphone Apps Notes: QR codes and Near Field Communication are also popular trends that allow marketers to communicate web messages while people are on the go. © 2016 Cengage Learning. All Rights Reserved.

37 Applications and Widgets
Chapter 18 Social Media and Marketing Applications and Widgets Apps Widgets Also called “gadgets” and “badges” Run within existing online platforms Cheaper to develop Extend reach beyond existing platforms Harness mobile technology Platform-specific or convert existing content to mobile format Can generate buzz and customer engagement 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. © 2016 Cengage Learning. All Rights Reserved. 37

38 Applications and Widgets
Chapter 18 Social Media and Marketing Applications and Widgets The following questions should be considered before investing in a marketing-oriented widget. Does my organization regularly publish compelling content? Does my content engage individuals or appeal to customer needs? Is my content likely to inspire conversations? Will customers want to share my content? © 2016 Cengage Learning. All Rights Reserved. 38

39 Understand the aspects of developing a social media plan
Chapter 18 Social Media and Marketing The Social Media Plan 19-7 Understand the aspects of developing a social media plan © 2016 Cengage Learning. All Rights Reserved.

40 © 2016 Cengage Learning. All Rights Reserved.
The Social Media Plan Chapter 18 Social Media and Marketing 1. Listen 2. Set social media objectives 3. Define strategies 4. Identify the target audience Notes: The social media plan should be linked to other factors in the overall marketing plan, and fit with those established objectives. The social media plan should also be evaluated regularly to take into account new platforms and the rapid changes in social media. This slide lists the six stages of developing a social media plan. 5. Select tools and platforms 6. Implement and monitor the strategy © 2016 Cengage Learning. All Rights Reserved.

41 The Changing World of Social Media
Chapter 18 Social Media and Marketing The Changing World of Social Media The rate of change in social media is astonishing—usage statistics often change daily. © 2016 Cengage Learning. All Rights Reserved. 41

42 © 2016 Cengage Learning. All Rights Reserved.
19.3 Chapter 18 Social Media and Marketing Social Media Trends Notes: In Exhibit 19.3, we’ve listed some of the items that seem to be on the brink of exploding on to the social media scene. Have you heard of it? Has it come and gone? Maybe it is still rumored, or maybe it has petered out. This exercise highlights not only the speed with which social media changes but also the importance of keeping tabs on rumors. © 2016 Cengage Learning. All Rights Reserved. 42

43 © 2016 Cengage Learning. All Rights Reserved.
Chapter 18 Social Media and Marketing Chapter 19 Video Zappos Zappos, a large online retailer, has a vibrant culture focused on customer service. The company uses social media to help customers and interact with them personally. Part of each customer reaction involves taking the time to demonstrate individual personality and the Zappos culture, all of which make Zappos one of the top in customer service. CLICK TO PLAY © 2016 Cengage Learning. All Rights Reserved.

44 Part 5 Video Scripps Networks Interactive Promotional Decisions
Chapter 18 Social Media and Marketing Part 5 Video Scripps Networks Interactive Promotional Decisions Scripps Networks Interactive is a media network that runs popular television brands such as Food Network, HGTV, and Cooking Channel. CLICK TO PLAY © 2016 Cengage Learning. All Rights Reserved. 44


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