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© 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. 

2. 13
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. 

3. Marketing Framework

4. Social Media Social media Traditionally, customers were recipients
With social media, customers now have dialogue with brands

5. 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

6. Social Media Properties/Types
Some social media
Offer very rich, vivid sensory experiences
Are simple
Are primarily social
Are industrious
Vary in commerciality

7. Word of Mouth
Social media facilitates word of mouth

8. Word of Mouth Word of mouth works well with Exciting products
Clever ad campaigns
Extraverted consumers

9. 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

10. Identifying Influentials
In social networks, some members are more connected & influential than others
Locating “central” members

11. Identifying Influentials
Centrality
Central = many links; Peripheral = fewer
Cliques

12. Recommendation Systems
Structural equivalence
Used in recommendation agents

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.

14. Social Media ROI Pre-Purchase: awareness
Pre-purchase: brand consideration
SEO
Purchase or Behavioral Engagement
Post Purchase

15. How to Proceed Engaging in all social media is not desirable
Some media fit the target market better than others

16. 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

17. 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

18. Managerial Recap
Social media are web-based means of interacting with others by posting opinions, pictures, and videos
Social media usage is growing

19. Managerial Recap
Word of mouth feels authentic making social networks important
Social networks are interconnections among customers
Networks can be drawn and analyzed