Chapter 18 Social Media and Marketing

Learning Outcomes Describe social media, how they are used, and their relations to integrated marketing communications Explain how to create a social media campaign Evaluate the various methods of measurement for social media Explain consumer behavior on social media

Learning Outcomes (continued) Describe the social media tools in a marketer’s toolbox and how they are useful Describe the impact of mobile technology on social media Understand the aspects of developing a social media plan

Any tool or service that uses the Internet to facilitate conversations Social Media Chapter 18 Social Media and Marketing LO 1 Any tool or service that uses the Internet to facilitate conversations Tools and platforms Social networks Blogs Microblogs Media sharing sites Social media can also be defined relative to traditional advertising like television and magazines: whereas traditional marketing media offer a mass media method of interacting with consumers, social media offer more one-to-one ways to meet consumers. 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 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. Social media have changed how and where conversations take place, globalizing human interaction.

Social Media and Integrated Marketing Communications Chapter 18 Social Media and Marketing Usefulness of social media Marketers have conversations with consumers, forge deeper relationships, and build brand loyalty Consumers connect with each other, share opinions, and collaborate on new ideas according to interests Crowdsourcing: Using consumers to develop and market products While marketers typically employ a social media strategy alongside traditional channels, many marketers are increasingly incorporating social media into their budgets. Unique consequence of social media is the shift from one-to-many communication to many-to-many communication. Interaction between producer and consumer becomes less about entertaining and more about listening, influencing, and engaging. Crowdsourcing: Describes how the input of many can be leveraged to make decisions that used to be based on the input of only a few

Categorizing Media Types Chapter 18 Social Media and Marketing LO 2 Owned media - Brand's presence on social platforms Earned media - Word of mouth or online buzz about a brand Paid media - Use of traditional media Owned media Brand's presence in Facebook, YouTube, Twitter, Pinterest, etc. Videos, webinars, recommendations, ratings, and blog posts Earned media - Viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence Paid media - Display advertising, paid search words, and other types of direct online advertising

Social Media Objectives Chapter 18 Social Media and Marketing Listen and learn Build relationships and awareness Promote products and services Manage one's reputation Listen and learn Monitor what is being said about the brand and competitors Develop a listening strategy Build relationships and awareness Open dialogues with stakeholders Engage in conversations and answer customers' questions candidly Promote products and services Get customers talking about products and services Manage one's reputation Respond to comments and criticisms Participate in forums and discussions Improve customer service Seek out displeased customers and engage them directly to solve issues Improve customer service

Social Media Metrics LO 3 Buzz Search engine ranks and results Chapter 18 Social Media and Marketing LO 3 Buzz Search engine ranks and results Interest Influence Participation and engagement Sentiment analysis Website metrics The 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.

Categories of Social Media Users Chapter 18 Social Media and Marketing LO 4 Creators Critics Collectors Joiners Spectators Inactives Conversationalists Rookies are classified as joiners

Microblogs: Blogs with strict post length limits Social Media Tools Chapter 18 Social Media and Marketing LO 5 Blog: Publicly accessible web page that acts as an interactive journal, whereby readers can post comments on the author’s entries Microblogs: Blogs with strict post length limits Social networking sites: Allow individuals to connect with friends, peers, and business associates 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. Corporate blogs: Sponsored by a company or one of its brands and maintained by one or more of the company’s employees Noncorporate blogs: Independent blogs that are not associated with the marketing efforts of any particular company or brand Twitter is effective for disseminating news, promoting longer blog posts, sharing links, announcing events, and promoting sales. The ways a business can use microblogs to engage customers are almost limitless. Marketing goals for social networking sites are increasing awareness, targeting audiences, promoting products, forging relationships, highlighting expertise and leadership, attracting event participants, performing research, and generating new business.

Social Media Tools (continued 1) Chapter 18 Social Media and Marketing Media sharing sites: Allow users to upload and distribute multimedia content like videos and photos Social news sites: Allow users to decide which content is promoted on a given website by voting that content up or down Location-based social networking sites Combine the fun of social networking with the utility of location-based GPS technology Media sharing sites 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. Social news sites Marketers have found that these sites are useful for promoting campaigns, creating conversations around related issues, and building website 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.

Social Media Tools (continued 2) Chapter 18 Social Media and Marketing Review sites: Allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services Virtual worlds and online gaming Include massive multiplayer online games and online communities Becoming an important, viable, and growing consideration Review sites 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. Virtual worlds and online gaming The top five games on Facebook are Candy Crush Saga, Clash of Clans, Candy Crush Soda Saga, Farm Heroes Saga, and 8 Ball Pool. Many mobile games use advertising to generate revenue for the game developers and publishers. Microtransactions account for 79 percent of app revenue in America. Promotions include special events, competitions, and sweepstakes.

Reasons for Mobile Marketing Popularity Chapter 18 Social Media and Marketing LO 6 Low barrier to entry Consumers acclimating to privacy and pricing policies Effective at garnering consumer attention in real time Measurable In-store notification technology Higher response rate than traditional media types 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.

Common Mobile Marketing Tools Chapter 18 Social Media and Marketing LO 6 SMS (short service message) MMS (multimedia messaging service) Mobile website (MOBI and WAP website) Mobile ads Bluetooth marketing Smartphone applications (apps) Quick Response (QR) codes and near field communication (NFC) are also popular trends that allow marketers to communicate web messages while people are on the go. Mobile marketing is powerful when combined with geo-location platforms. These platforms allow retailers and other businesses to incentivize multiple visits, visit at certain times of the day, and positive customer reviews.

Apps and Widgets Apps Widgets Chapter 18 Social Media and Marketing LO 6 Apps Perform platform-specific or convert existing content to mobile format Can generate buzz and customer engagement Widgets Called gadgets and badges Run within existing online platforms Cheaper than apps to develop Extend reach beyond existing platforms Dozens of new and unique apps that harness mobile technology are added to mobile market-places every day. A web widget allows a developer to embed a simple application such as a weather forecast, horoscope, or stock market ticker into a website, even if the developer did not write (or does not understand) the application’s source code. Widgets can extend an organization's reach beyond existing platforms.

Stages in Creating an Effective Social Media Plan Chapter 18 Social Media and Marketing LO 7 Listening to customers Setting social media objectives Defining strategies Identifying the target audience Selecting tools and platforms Implementing and monitoring the strategy Social media plan should be: Linked to other factors in the overall marketing plan and fit with those established objectives Evaluated regularly to take into account new platforms and the rapid changes in social media

Social media Social commerce Crowdsourcing Social media monitoring Blog Corporate blogs Noncorporate blogs Microblogs Social networking sites Media sharing sites Social news sites Location-based social networking sites Review sites

Summary Social media have changed the way that marketers communicate with their brands Social media's potential for expanding a brand’s impact is enormous Social media have the potential to revolutionize the way organizations communicate with stakeholders Some of the social media metrics marketers should consider are buzz, interest, and influence

Summary (continued) Understanding an audience necessitates understanding how that audience uses social media Blogs, microblogs, social networks, media creation, virtual worlds, and review sites are some of the social media tools Social media is available on platforms like smartphones, iPads, and other tablets A social media plan should be outlined to effectively use social media tools