Social Commerce: Foundations, Social Marketing, and Advertising Chapter 8 Social Commerce: Foundations, Social Marketing, and Advertising

Learning Objectives Define social commerce and describe its roots and evolution. Describe the scope, drivers, and content of the social commerce field. Summarize the benefits and limitations of social commerce. Describe the major models of social shopping. Explain how advertising and promotions are conducted in social networking environments. Describe how social networking can facilitate customer service, customer support, and CRM.

Social Commerce: Definitions and Evolution Definitions and Characteristics * Social commerce (SC) The Evolution of Social Commerce

The Major Roots of Social Commerce

The Content of the Social Commerce Field The Landscape and Major Components of the Field *Social Media Marketing (SMM) *Enterprise 2.0 Examples of Social Enterprise Applications

The Major Dimensions of Social Commerce

The Benefits and Limitations of Social Commerce Benefits to Customers Benefits to Retailers Benefits to Other Types of Enterprises The Social Business: An IBM Approach * Social business New or Improved Business Models * Business model Concerns and Limitations of Conducting Social Commerce

Social Shopping: Concepts, Benefits, and Models Definitions, and Drivers of Social Shopping * Social shopping The Drivers of Social Commerce Concepts and Content of Social Shopping Why Shoppers Go Social * Communal shopping

Social Shopping: Concepts, Benefits, and Models The Roles in Social Commerce Connectors Salesmen Seekers Mavens Self-sufficients Unclassifieds Benefits of Social Shopping What Components to Expect in a Social Shopping Site Visual Sharing Online discussions Journals of products and their use Guides

Social Shopping: Concepts, Benefits, and Models Traditional E-Commerce Sites with Social Media Additions The Major Types and Models of Social Shopping Group Buying Deal Purchases (Flash Sales) Online Shopping Together in Real-Time Shopping Together Sites Co-Shopping Online Shopping Communities

Social Shopping: Concepts, Benefits, and Models Common Features in Communities and Forums User forums User galleries Idea boards Q&A forums Brand communities Comprehensive (multipurpose communities) Examples of Shopping Communities Polyvore.com Kaboodle -- a Unique Social Shopping Community Private Online Shopping Clubs

Social Shopping: Concepts, Benefits, and Models Other Innovative Models Find what your friends are buying Wanelo Filtering consumers reviews RealGifts Virtual gifts Social auctions Getting help from friends Shopping without leaving Facebook Crowdsourcing shopping advice Helping bloggers sell products Event shopping

Social Shopping: Concepts, Benefits, and Models Social Shopping Aids: From Recommendations to Reviews, Ratings, and Marketplaces Recommendations in Social Commerce Ratings and Reviews Social Recommendations and Referrals Illustrative Examples of Recommendation Sites Example: How Intuit Corp. Helps Consumers with Recommendations Concerns about Social Reviews and Recommendations Other Shopping Aids and Services Yelp: The Shoppers’ Best Helper Collaborative Reviews Dealing with Complaints

Social Shopping: Concepts, Benefits, and Models Social Marketplaces and Direct Sales * Social marketplace Direct Sales from Within Social Networks Socially-Oriented Person to Person (P2P) Selling, Buying, Renting, or Bartering P2P Lending P2P Sharing (also known as collaborative consumption)

Social Shopping: Concepts, Benefits, and Models Shopping for Virtual Goods in a Virtual Economy * Virtual goods * Virtual Economy Why People Buy Virtual Goods Generating special experiences Generating emotions Small purchases make people happier Virtual goods are low cost and low hassle Real-Time Online Shopping Social Shopping in the Near Future

Social Advertising: From Viral Advertising to Location-Based Advertisement/Marketing Social Ads and Social Apps Viral (Word-of-Mouth) Marketing and Social Networking * Viral marketing * Viral Blogging Other Viral Marketing Methods Location-Based Advertisement and Social Networks

Social Advertising: From Viral Advertising to Location-Based Advertisement/Marketing Geosocial Networks * Geosocial networking The Technology for Location-Based Social Networks How LBS Works Foursquare and its Competitors How Foursquare Works Changes in Business Model Competition: Brightkite and Facebook Places Strategy for Small Businesses in LBS Privacy Concerns for LBS Opt-In Versus Op-Out

Social Advertising: From Viral Advertising to Location-Based Advertisement/Marketing Using YouTube and Other Social Presentation Sites for Advertising * Viral Videos Using Twitter as an Advertising and Marketing Tool Recruiting and finding jobs Brand display Market research Delivering offers Collaboration Customer service Using professionals to enhance company presence on Twitter Cost effectiveness

Social Advertising: From Viral Advertising to Location-Based Advertisement/Marketing Other Innovative Ways to Advertise in Social Media The Changing Rules of Branding Using Blogs Using Coupons Mobile Advertising

Social Customer Service and CRM How Does Social Networking Empower Customers? Social CRM * Customer relationship management (CRM) * Social customer relationship management (SCRM) The Components of Social CRM How to Serve the Social Customers * Social customers Methods and Guidelines for Social Customer Service The Evolution of Social CRM

The Elements of Social CRM

Social Customer Service and CRM Cipriani’s Multidimensional Presentation The Landscape Touch Points Evolution of Business Processes in CRM The Evolution of Technology Organizational Mindset Conclusions

Touch Points in CRM versus SCRM Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

Social Customer Service and CRM Implementation of Social Customer Service and CRM Some Recent Applications Social Networking Helps Customer Service in Small Companies Reputation Management System

Merchants Sign up Deal (Offers) Deal finalized Groupon Customers Redeem coupons Groupons (coupons) to customers Pay Groupons Email, daily deals Buy Merchant Figure 8.5 The business model and process of Groupon

Managerial Issues How will social commerce influence businesses? Do companies need to sponsor a social network? Is it wise for a small business to be on Facebook? How to deal with false reviews and fake followers? Should we embark on selling via social networking?

Summary Social commerce definition and evolution. The scope, content, and drivers of social commerce Benefits and limitations of social commerce. Describe social shopping. How advertisings and promotions are conducted in social networking. Conducting social customer service and CRM.