Leading Change in Turbulent Times Executive Education Seminar BRINGING ‘MARKET’ INTO MARKETING: MARKET CHANGES, VALUE CREATION AND SOCIAL MEDIA October 2013

321 Understanding the current market environment Exploring social media as a business tool Outlining a social media startegy Discussion topics

Discuss within your group/table and come up with one of the ‘social media marketing trends’ that can be perceived as new and innovative!

“A global bank executive recently described to us a challenge for our times. It turns out that a customer who normally would qualify for the lowest level of service has an impressive 100,000 followers on Twitter. The bank isn’t doing much yet with social media and has no formula for adapting it to particular customers, but the executive still wondered whether the customer’s “influence” might merit special treatment.” From: What’s Your Social Media Strategy? Wilson and colleagues (2011), Harvard Business Review

Customer Value Organization’s Social Capital Social Capital… What? Structural Dimension Interactions to maintain Social Structure Relational Dimension Interactions to Build & Maintain Trust/Trustworthiness Cognitive Dimension Interactions focused toward Vision Sharing Social Media Use (Kothandaraman, Agnihotri, and Kashyap 2011)

So, the question becomes… How can we Co-Create the value? Como podemos Co-Create o valor? -The answer is...

OrganizationConsumerProduct t Organization Product t+1 Consumer Value Co-Creation Market Evolution Collaborator (Agnihotri and Hu 2009) EXAMPLES:

Ford Fiesta Movement, a campaign to promote the Fiesta model Giving cars to 100 social “agents” and let them promote vehicle through Social Media All without spending a dollar on traditional media Results of six month campaign -4.3 million YouTube views -500,000+ Flickr views -3 million+ Twitter impression -50,000 interested potential customers, 97% of which don’t own a Ford currently.

A Social Media Framework for Sales Organizations  Developing/Assessing Business Specific Social Strategy Elements  Formulating/Assessing Business Specific Value Drivers  Establishing/Assessing Business Specific Performance Metrics Social- Strategy Elements Social- Strategy Elements Value Drivers Value Drivers Performance Metrics Performance Metrics Social Media Organization Customers

Finding a Fit Diagnóstico a aplicar (From: Agnihotri et al. 2012) Information Sharing Customer Service Trust Building SOCIAL CONTENT ENABLER [Blogs, Micro-blogging (Twitter), Etc.] SOCIAL NETWORK ENABLER [Networking Websites (Facebook, LinkedIn), Online communities/ Discussion forums] ORGANIZATION ACTIONS Customer Perceived Value Organization Perceived Value Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections VALUE CREATION ibm.com/connections/blogs/ player_embedded&v=F5CF1FEm_oA#t=12

ROI: commonly used metrics* ROI: métricas comumente usadas * 73% Customer Acquisition rate *Gleansight: social media marketing, November 2010 Organizations can set milestones in terms of – i)Marketing efforts (e.g., number of tweets posted per week, number of blogs written and followed, etc.) ii)Outcomes (e.g., number of leads generated through blogs) Performance evaluation should include - i)Objective (e.g., changes in service support costs) ii)Subjective criteria (e.g., number of referrals and/or positive recommendations by existing customers through social networks) 86% Audience growth rate -e.g., # of facebook fans, twitter followers, etc., per week 77% Volume of relevant posts/comments 81% Customer engagement rate -e.g., # of click-thrus, registrations, etc., per week 73% Customer Acquisition rate

Do your research before investing in SM Remember the ‘Market’ in marketing strategy Create value ….and finally Connect with people because nothing can replace the - personal touch Tips to Remember Dicas para lembrar

Thank You and Good Luck! Obrigado e boa sorte!