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Social and Mobile Marketing
Chapter 16 Social and Mobile Marketing Chapter 16 will focus on Social and Mobile Marketing.
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Chapter 16: Social and Mobile Marketing
LEARNING OBJECTIVES LO1 Describe the 4E framework of social media marketing LO2 Understand the types of social media LO3 Understand the types of mobile applications LO4 Recognize and understand the three components of a social media strategy LO5 Understand the methods for marketing yourself using social media These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.
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Checkout 51 – the leading mobile coupon app
LO3 The power of a grocery store receipt A mobile app that showcases new coupon offers each week Gives marketers complete control Manufacturers build direct relationships with shoppers Per chapter introduction: the case study focuses on how Checkout 51 was able to build upon the power of a grocery store receipt to build a mobile app that showcases new coupon offers each week. Each time a coupon is redeemed, the users account balance grows until a payout is requested. Consumers get real dollars refunded without having to fumble with coupon clippings at the register. Having CO51 on your smartphone allows you to have the coupons in-store with you while you shop. It is appealing to marketers because the app’s digital nature gives them complete control. The company drove the value proposition through extremely targeted Facebook and Google advertising. Within one year, over 500k Canadians were using it, making CO51 the leading mobile coupon app. Enrollment numbers made it possible to attract major corporate interest from companies such as Kraft and VISA. The rapid success also caught the attention of investors. In 2013, the company raised $9M in capital, allowing them to further expand. In the end, everyone is happy: consumers have a new and convenient way to save money, manufacturers can build a direct relationship with their shoppers and access valuable consumer data, and retailers can expedite register times. .
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The diffusion of technology
The diffusion of technology used to bring us social media has been accelerating since the Internet came on the scene in the mid to late 1990’s. This evolution is shown within the slide. Social media has gotten more serious & professional. Today, we have entered the entrepreneurial era, in which companies work to find ways to earn profits from the ways that consumers use & enjoy social media.
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The 4e framework for social media
LO1 The 4e framework for social media Social media is an integral component of any integrated marketing communications strategy. Social media refers to content distributed through online & mobile technologies to facilitate interpersonal interactions. The changing role of traditional media, sales promotions, and retail, coupled with the new media of social, media & online has led to a different way of thinking about the objectives of marketing communications. We use the 4E framework as noted in the slide. This focuses on exciting the consumer, educating them, helping them to experience products & giving them the opportunity to engage with their social network.
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LO1 Excite the customer How can firms excite customers about an idea, product, brand or company? Marketers use many kinds of social media-related offers to excite customers, including mobile applications & games to get customers excited about an idea, product, brand or company. Firms actively use social networks such as Facebook & Google+ to communicate deals that are likely to excite consumers. This could include: Groupon price promotion
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Well-designed marketing offers have a clear call to action
LO1 Educate the customer Well-designed marketing offers have a clear call to action Well-designed social media marketing offers must have a clear call to action: to draw customers through their computers, tablets & mobile devices into online websites or traditional retail stores. Marketers then have a great opportunity to educate them about the value proposition & communicate the offered benefits. This is a great method to develop a sustainable competitive advantage. Tools to help marketers educate customers include: WordPress, Twitter, HubSpot, YouTube, Google+, Roost & Schedulicity See link in the slide to HubSpot Draw customers into online websites or retail stores HubSpot
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Experience the product or service
LO1 Experience the product or service The Power of Experience-Based Information Vivid Information Digital Learning Try before you buy Many videos on YouTube are funny, silly & entertaining. However, they also provide very vivid information about a firm’s goods & services. You can see how they work, how to use them, & where to find them. These sites can help a consumer to visualize & to simulate a real-life experience. DIYers Simulate Real Experiences Tutorials Two-way dialogue
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Engage the customer ACTION LOYALTY POTENTIAL RELATIONSHIP COMMITMENT
The most important element is to engage the customer. With engagement comes action, the potential for a relationship, & possibly even loyalty & commitment. Through social medial tools such as blogging & microblogging, customers actively engage with firms & their own social networks. Positively engaged customers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers. COMMITMENT
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LO1 The objectives of marketing communications under the 4E framework include all of the following EXCEPT: A) Educate B) Implement C) Excite D) Experience Answer: B; see page 505
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Categories of social media
LO2 Categories of social media Spending on social media continues to rise. Canadian marketers spent $257M on paid social advertising in 2013, an increase of 35% over the previous year. Marketers rely on three types of social media as noted in the slide. Three objectives are typically sought: members promote themselves to gain more friends, the sites promote to get more members, outside companies promote their products & services to appeal to the potential consumers that are active on the sites. Detailed slides follow or one can use this slide independently if pressed for time.
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Social network sites Facebook – 1.1B active users
LO2 Social network sites Facebook – 1.1B active users LinkedIn – a professional business site Google+ - attracting gamers & competing with Facebook Social network sites are an excellent way for marketers to create excitement. People can interact with their friends (Facebook) or business acquaintances (LinkedIn) Research indicates that these sites are widely used.
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Enables users to share content they have generated.
LO2 Media-sharing sites Enables users to share content they have generated. YouTube – video sharing social media platform Photo Sites – Flickr, Picasa, Instagram Media sharing sites enable users to share content they have generated, from videos on YouTube, Vimeo and Vine to pictures on Flickr, Picasa & Instagram. Companies use these sites to highlight how consumers can experience their goods & services, as well as encourage consumers to engage with the firm, its other social media outlets, & other consumers.
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Thought-sharing sites
LO2 Thought-sharing sites Sites that contain different types of blogs. Corporate Professional Personal Micro Blogs are particularly effective at educating & engaging users, & in many cases enhance their experience with the products & services being discussed. Blogs – a web log; allows us to air our thoughts to the world through thought-sharing websites. Corporations often use this to create two-way dialogue directly with the end users. Bloggers use WordPress, Blogger, TypePad. Professional blogs are those written by people who review & give recommendations on products/services. Personal blogs are written by people who receive no products or remuneration for their efforts. Microblogs – uses short sentences, short videos or individual images. Twitter is an example of this.
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Paid, owned, earned media
LO2 Paid, owned, earned media Marketers must use a combination of media when implementing their IMC plans. As shown in the slide, they use paid media such as TV, print, radio or display ads to reach mass markets. Paid media is created & controlled by the advertiser. Owned media such as a website, is also controlled by the advertiser. This may include a company’s blog, YouTube channel or Facebook fan page. The costs are usually less expensive than paid media. Earned media comes as a result of word of mouth buzz, or publicity. Brand mentions are given voluntarily by customers and so the company earns the visibility.
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LO2 Owned media is media controlled by the advertiser & includes mediums such as a website, a Facebook fan page or a YouTube channel . Is this true or false?: A) True B) False Answer: A; see page 515
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Understanding mobile applications
LO3 Understanding mobile applications 37% of consumers access social media via their mobile phones Creates excitement for consumers at sale time Price Check Apps Fashion Apps Location-based Gamified Apps 100 million people have smartphones in North America. Approximately half of them make purchases on them. This is a huge market. Consumers are generally younger & wealthier than others who own older model mobile phones or none at all. Mobile marketing is great at creating excitement with consumers at the time of sale. Several apps have been developed to better market goods/services to attract consumers. These include the app categories as noted in the slide.
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Entrepreneurial marketing 16.1: pumpedup on social media
LO3 Entrepreneurial marketing 16.1: pumpedup on social media A Personal trainer in your pocket! Mobile fitness app Personalized workout routines Makes it easy to incorporate fitness into busy lives A personal trainer in your pocket is how PumpedUp wants consumers to see its mobile fitness app. PumpedUp is a high-quality, personalized workout routine that emulates having a personal trainer. It makes incorporating fitness into our busy lives easy. The app removes the guesswork out of working out & provides a low-cost, personal training experience that isn’t tied to an expensive gym or trainer. Social media promotion allowed PumpedUp to generate over 1 million downloads.
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Engaging customers using social media
LO4 Engaging customers using social media Three-Stage Process It is important to determine how firms should go about engaging customers through social & mobile media. The three-stage process is to listen to what customers have to say, analyze the information available through various touch points, & implement social media tactics to excite customers. Let’s explore each one. LISTEN ANALYZE DO
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Listen to what your customers are saying & monitor it frequently!
LO4 listen Listen to what your customers are saying & monitor it frequently! Sentiment Analysis (e.g. using Radian6) Analyze data from sources such as Facebook, Twitter, blogs From a market research perspective , companies can learn a lot about their customers by listening & monitoring what they say on their social network s, blogs, review sites etc. Marketers can analyze the content found on sites like Facebook, Twitter to assess how favourable the sentiments are. This is done by using a technique called sentiment analysis. It allows data to be analyzed from source & to collect consumer comments about companies & their products. There are several companies that specialize in monitoring social media, including Radian6. Sentiment analysis is fundamentally transforming how companies interact with & engage their customers.
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analyze Three main categories of analysis used:
LO4 analyze Three main categories of analysis used: Site traffic (hits, visits) Who is visiting the site, what are they doing, & what is important to them Keyword analysis Analytic tools are available to assess what customers are saying about the firm & its competitors. There are three main categories of analysis used for understanding data collected from social media as noted in the slide. These analyses require well-trained marketing managers, marketing analytic software & perhaps some help from consulting specialists (e.g.. IBM, SAS) But almost everyone seems to be turning to Google Analytics. It offers a sophisticated, in-depth form of analysis, all for free. Google Analytics tracks the elements as shown in the next slide. It is also highly customizable.
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LO4 Analytics Google Analytics tracks the elements as shown in the slide.
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do Which tactics to use? When to employ them?
Doing is implementing what has been learned from analyzing social & mobile media activity A well-developed marketing strategy involves a host of social & mobile tools working together with the firm’s traditional IMC tactics. This moves the consumer up the purchase decision hierarchy from awareness to purchase to loyalty. There are a number of steps involved in developing & implementing a marketing campaign. Steps include: identify strategy & goals, identify target audience, develop the campaign, develop the budget and monitor and change. Which tactics to use? When to employ them?
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LO4 Google Analytics is a popular and free form of conducting an in-depth analysis of online behaviour. It tracks many elements. Which of the below are tracked by Google Analytics. A) Conversion B) Mobile C) Advertising D) All of the above Answer: D; see page 522
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Managing your personal brand in a social media world
LO5 Managing your personal brand in a social media world SELF-BRANDING Build Awareness Develop Loyalty Exert an Impact As we saw in Chapter 9, branding concepts apply in unique ways in the social media world, in which people engage in self-branding in new & exciting ways. Brands attempt to build awareness, aim to develop loyalty & exert an impact. One can also think of individual brand management in some of the following ways as noted in the next slide.
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Individual brand management
LO5 Individual brand management How is individual social media effectiveness measured? Metrics such as: Social Reach Influence Extended Network Measures of individual social media effectiveness or equity use metrics such as social reach: the number of people a person influences, and Influence: the extend to which a person influences others; Extended network: the influence of a person’s extended network. Different metrics have been developed to assess a person’s social impact such as Klout, PeerIndex, Twitalyzer, Kred. To visit PeerIndex click on the link in the slide. PeerIndex
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What types of jobs are available in social media?
LO5 What types of jobs are available in social media? Strategist Community Manager Blogger Marketing Specialist Search Engine Marketing Associate Online Customer Service Representative A student who graduates with a marketing degree, likely has a good foundation for one of the jobs in social media as noted in the slide. Social media jobs are increasing. Go to the link in the slide for Monster.ca, to do a search of various examples of social media jobs. Monster.ca
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What does personal branding really mean?
LO5 What does personal branding really mean? Leverage your personal brand to induce action It takes time & consistent effort! Being influential means you excite, educate, give experience & engage Getting one of the jobs noted in the previous slide implies that candidates truly have influence, & these social media impact scores offer some ideas about what personal branding really means. Three key things to focus on are noted in the slide.
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Ethical considerations
LO5 Ethical considerations THINK BEFORE YOU POST, TWEET OR BLOG! Are metrics being used without consent? “Gaming the system” HR manager assess social media sources before hiring Information can be used in legal proceedings Personal branding needs to take ethical considerations into account. We need to think carefully about the spread of metrics especially with reports about the ways these metrics are being used – especially if being used without knowledge or content. The importance of social media scores also implies the potential for abuse. If firms ‘game’ the system, in that they only search engines results based upon paid followers to tweet about the offering, this is misleading to the consumer. Sites such as Facebook that post personal information & pictures, can be detrimental to a future career since HR managers search these sites to gain insight into potential candidates. One must always remember to be vigilant in everything that is done online since it can also have legal implications.
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D) Monitoring & changing
LO5 Managing your own personal brand in a social media world can be overwhelming. A number of metrics are used to measure personal effectiveness. They include all of the following EXCEPT: A) Extended network B) Social reach C) Influence D) Monitoring & changing Answer: D; see page 523
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