© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

Social Media © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Marketing Framework 3

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Social Media Social media Traditionally, customers were recipients With social media, customers now have dialogue with brands 4

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Media Trends Media trends Social media & mobile marketing are growing Newspaper & magazines are declining The number of radio stations is growing, but listeners listen less The number of TV channels is growing, audience is fragmented Facilitates targeting 5

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Social Media Properties/Types Some social media Offer very rich, vivid sensory experiences Are simple Are primarily social Are industrious Vary in commerciality 6

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Word of Mouth Social media facilitates word of mouth 7

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Word of Mouth Word of mouth works well with Exciting products Clever ad campaigns Extraverted consumers 8

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Social Network Example Strong mutual link between actors B & E Weak unidirectional link from C to B F is isolated B, C, and E form a group 9

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Identifying Influentials In social networks, some members are more connected & influential than others Locating “central” members 10

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Identifying Influentials Centrality Central = many links; Peripheral = fewer Cliques 11

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Recommendation Systems Structural equivalence Used in recommendation agents 12

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Social Media ROI Social media seems “free” but is not Key performance indicators (KPIs) Reach, frequency, monetary value of customers, customers’ behaviors, attitudes, memory, etc. 13

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Social Media ROI Pre-Purchase: awareness Pre-purchase: brand consideration SEO Purchase or Behavioral Engagement Post Purchase 14

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. How to Proceed Engaging in all social media is not desirable Some media fit the target market better than others 15

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. How to Proceed Companies can learn from Monitoring tweets, blogs and discussions Analyzing text on Facebook to understand customers opinions about brands Search brand page or search for brand name on other postings Analyzing content to detect consumer trends Checking websites for misinformation 16

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. How to Proceed Companies can actively Enter online communities and ask for volunteers for beta testing Conduct experiments: measure attitudes, click through rates, sign-up rates, etc. Use GPS data to track customers and give offers 17

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Managerial Recap Social media are web-based means of interacting with others by posting opinions, pictures, and videos Social media usage is growing 18

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13. Managerial Recap Word of mouth feels authentic making social networks important Social networks are interconnections among customers Networks can be drawn and analyzed 19