1. Engaging Customers with Social Media E-M ARKETING /6E C HAPTER 13

2. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-2 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-2 C HAPTER 13 O BJECTIVES  After reading Chapter 13, you will be able to:  Define social media and compare it with traditional websites.  Discuss how marketers use social media.  Identify social media tools.  Describe the role and important measures of social media performance.

3. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-3 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-3 D ELL S TARTS L ISTENING  In 2005, Dell was brought to its knees by bloggers who posted customer service complaints.  As Dell outsourced its technical customer service, customer complaints also increased.  A 2005 Google search for “Dell customer service problems” returned nearly 3 million links.  Dell initiated several blogs in multiple languages to handle customer complaints and to have conversations with stakeholders about problems and actions to fix them.  Dell Hell on BuzzMachine; IdeaStorm Dell Hell on BuzzMachineIdeaStorm

4. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-4 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-4 S OCIAL M EDIA  Social media is a term used to describe media based on conversation and interaction between people online.  Social media focuses on bringing information, photos, and video to an audience that wants to learn and to be entertained.  Content is generated as a conversation, with all participants able to upload, discuss, edit or rate.

5. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-5 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-5 T YPES OF S OCIAL M EDIA

6. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-6 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-6 C OMMUNICATION & N ETWORKING  Blogs (Web Logs) (Wordpress)Wordpress  Microblogs (Tumblr)Tumblr  Social networks (43things)43things  Social network aggregation (Contextmine)Contextmine

7. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-7 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-7 E VENTS  Local event sites allow residents to post to a calendar. (The Tennessean)The Tennessean  Personal event sites allow individuals to create events and invite people via e-mail. (Evite; Wedquarters)EviteWedquarters  Group member event sites are for public groups that others can join. (Meetup)Meetup

8. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-8 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-8 C OLLABORATION  Tagging involves attaching keywords to video, photos, or text to help users find content.  Wikis allow users to create, edit, and link content collaboratively. (Wikihow; Wetpaint)WikihowWetpaint  Social bookmarking allows users to share, organize, search, and manage web resources.  Social News are sites where users submit links to online stories and readers vote or comment. (Digg; Reddit)DiggReddit

9. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-9 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-9 D IGG. COM

10. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-10 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-10 M ULTIMEDIA SHARING  Photos and Art – (Flickr; Photobucket)  Video (Youtube; Vimeo)  Live Casting (Skype; Livecast)  Music (MyspaceMusic; Pandora)Pandora  Presentations (Slideshare; Scribd)SlideshareScribd

11. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-11 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-11 ENTERTAINMENT  Virtual worlds (Secondlife; SIMS onine)Secondlife  Game sharing (Minclip; MMORPG)MMORPG

12. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-12 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-12 R EVIEWS AND OPINIONS  Product Reviews (Epinions; Mouthshut; Amazon)EpinionsMouthshut  Business Reviews (Yelp)Yelp  Community questions and answers (Yahoo! Answers)Yahoo! Answers

13. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-13 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-13 H OW B USINESSES U SE S OCIAL M EDIA  25% of the top 100 online retailers do not have a Facebook page, but 91% say that will start one within a year.  Only 22% of Fortune 500 companies have an active blog, but 70% of small businesses maintain blogs.

14. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-14 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-14 SOCIAL MEDIA & ADOPTION BY SMALL BUSINESSES

15. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-15 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-15 S OCIAL M EDIA S TRATEGIES  Exhibit 13.7 displays social media goals from strategies to tactics.

16. 13-16

17. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-17 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-17 S OCIAL M EDIA & E-M AIL  Marketers use a variety of e-mail strategies:  Follow us links in e-mail messages.  Sign up forms for Facebook-type pages.  Links to e-mail messages on social media pages.  Options to share e-mail with others.

18. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-18 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-18 B RAND PERCEPTION M ANAGEMENT  Online chatter can make or break a reputation within hours.  JetBlue in 2007.  Nestle in 2010.

19. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-19 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-19 S OCIAL N ETWORKS  Starbucks has the largest corporate Facebook page, with over 7 million fans.  JC Penney launched a widget targeted at teens on its Facebook page called “Stuck on You” in 2008.  Facebook is not just for teens. Strongest growth is coming from ages 35-49 and 50-64.

20. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-20 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-20 SOCIAL NETWORK MARKET SHARE (EXCLUDING TWITTER)

21. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-21 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-21 B LOG  There are more than 24,000 blogs started each 24 hours.  It can be helpful to have multiple blog authors to keep posts frequent.  CEOs  Consultants and thought leaders  Companies can blog without starting their own by following bloggers in one’s industry and adding comments.

22. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-22 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-22 M ICROBLOGS  Tumblr.com offers free micro content blogs.  Twitter members send text messages up to 140 characters.  Many executives use Twitter to talk about the company and gain feedback and ideas from followers.

23. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-23 O THER S OCIAL M EDIA FOR B USINESS U SE  Videos  Wikis  Social book-marking sites  Online forums (bulletin boards)  Online gaming

24. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-24 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-24 C OMMUNITY B UILDING PRINCIPLES 1. Observe 2. Recruit 3. Evaluate Platforms 4. Engage 5. Measure 6. Promote 7. Improve

25. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-25 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-25 P ERFORMANCE M ETRICS  Three areas of social media performance metrics:  Earned media publicity  Company owned social media  Paid media

26. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-26 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-26 E ARNED M EDIA M ETRICS

27. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-27 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-27 G ENERAL S OCIAL M EDIA M ETRICS  Actions taken by users.  Conversations in blogs and elsewhere.  Social media dashboard.

28. ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-28 ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 13-28 S OCIAL M EDIA D ASHBOARD

29. 13-29 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall