Right now, a conversation is going on… That conversation has your old customers talking to your former employees, while investors and prospective new customers review the conversation to help them make “informed” decisions about what to do next. Are you engaged in that conversation? Das Global Media McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

14-2  An Introduction to Social Marketing Cause-related marketing Social marketing networks Behavioral implications of networks  The Networked Enterprise  The Growth of Global Social Marketing Advertising  Case Studies of Social Marketing Campaigns Starbucks; Kraft Legal aspects of social marketing  Summary

14-3 Kotler and Zahman: The design, implementation and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution and market research. Kotler: Determining the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserve or enhances the consumer’s and the society’s well- being. SMI: The planning and implementation of programs designed to bring about social change using concepts from commercial marketing.

14-4  Cause-related marketing is an offshoot of the social marketing concept.  Combines a cause with a for-profit firm to improve fund-raising for the former and profits for the latter  The major difference between social and cause related marketing is the absence of a continuing relationship between the two. CRM campaigns are limited to a specific time frame Social marketing is long lasting.

14-5  A “group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-generated content.” – Kaplan and Haenlein  Social marketing networks are synonymous with internet marketing Blogging Press releases Social network websites People connect locally, regionally and globally through these sites, based on common interests.

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14-7 Figure 14-1

14-8  Network analysis (social network theory) studies how the social structure of relationships affects beliefs or behaviors. The internet provides an ideal venue for this study. Social networking establishes interconnected internet communities  Network analysis determines which actors have the greatest influence within the network

14-9 For marketers, this analysis identifies network members with greatest influence, thus, the members whose championing of a product will have the greatest marketing impact. Communications are targeted accordingly. Figure 14-2

14-10  Knowing the framework of network influence, marketers can optimize their communications by: Focusing on people with large numbers of connections within a network Reducing the density of a network in which risk behaviors are concentrated Understanding the members of a network who are most responsive to the behaviors of others Enhancing the attractiveness of the ‘out group’

14-11  Motivation to use social networks varies by country and culture:

14-12  Businesses are employing social networks, which provides them: Internal and supplier/partner-related  Speed of access to knowledge  Reduced communication costs  Increased employee and supplier/partner satisfaction  Management insight into employee relationships and topics of interest Customer-related  Increased marketing effectiveness  Increased customer satisfaction  Reduced marketing costs

14-13 Figure 14-3

14-14  The dialog between consumer and marketer is two-way. Using social media to reach consumers requires manpower dedicated to monitoring social media to determine what consumers have experienced with the company’s products.

14-15 Advertising and promotion are major uses of social networks. Growth of this application is significant, and not limited to the developed nations. Figure 14-4 Social Network Ad Spending Worldwide,

14-16  Starbucks has created a Fan Page on Facebook  Aimed at the U.S. market, but also localized for foreign markets. Starbuck’s fan page is the largest on Facebook Promotions and messages are localized for individual markets The strategy allows Starbucks to advertise globally, and measure its effectiveness across target markets.

14-17  The Coca Cola Village is a special summer experiential event in Israel. Every year Coca-Cola (Israel) invites 10,000 teens to the village. Teens are tasked to obtain 10 Coke caps and gather 8 friends to do the same, then register for entry via Facebook. Through technology, visitors to the Village automatically post Facebook ‘like’ messages and photos of their visit, making the Coke site the most ‘liked’ in Israel.

14-18  Kraft’s Aladdin chocolates are a popular Christmas gift for Swedes. To introduce a new type of chocolate to the assortment, Aladdin set up a digital polling place for people to elect which chocolate would be eliminated to make room for the new entry  Organizers of the campaign designed a “personality test” on Facebook based on based on consumers’ favorite chocolate flavor. The result? 400,000 votes, and an increase of both sales (26.5 percent) and market share (2.8 percent).

14-19 Figure 14-5

14-20  The privacy question Unwarranted access to private information is a concern to anyone who uses the web It is especially an issue when third parties gain access to information stored on social network platforms Globally, users may not be aware of potential privacy issues The dichotomy is that users want to see the “publicly articulated social networks” of others, yet also want more privacy options for themselves

14-21  Social media has a global reach.  Social media networks are aimed at both consumer and B2B markets.  Successful companies will be social businesses that forge two-way customer relationships.  While the nature of the social network venue or format differs by region, the use of the tool for marketing communications is almost universal  Privacy protection for social media users is a critical and complex issue for both consumers and marketers