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Discusses the role of social media as marketing tools and the significance of these for SMEs
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School of Management & Governance
School of Management & Governance
1
Dr. Efthymios Constantinides Assistant Professor Marketing / e-MediaSchool of Management and Governance
NIKOS / UNIVERSITY OF [email protected]
Social Media as Marketing Tools: Social Media as Marketing Tools: Valuable for SME’s?Valuable for SME’s?March 17, 2011March 17, 2011
School of Management & Governance
AGENDAAGENDA Introduction
Web 2.0 and Social Media
What is Social Media Marketing
SMEs experiences from the field
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Social Media research inSocial Media research inUT / MB / NIKOSUT / MB / NIKOS
SOMERE:SOMERE: a junior research center (BS / M&G) Master Research on Web 2.0 / Social Media
3 PhDs Own research: User behavior in online social
enviroments, Social market segments, influence of social media on buying behavior.
Ex. Adoption and Market Segments of SNS users in NL; Use of Social Media by WVO 5/6 children and effect on choice of HE study and University
Bottom line: How marketers can effectively Bottom line: How marketers can effectively engage the Internet and the Social Media engage the Internet and the Social Media as Marketing Toolsas Marketing Tools
School of Management & Governance
School of Management & Governance
What is Web 2.0 and Social Media?What is Web 2.0 and Social Media?
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School of Management & Governance
What is Social Media Marketing?What is Social Media Marketing?The Definitive End of Push Marketing!The Definitive End of Push Marketing!
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The power of the Social Media
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The Internet and the Social Media are changing the marketing practice
Marketing Marketing IsIs
ChangingChanging
Declining Effects of Declining Effects of Traditional MarketingTraditional Marketing
ModelModel
Increasing Increasing CustomerCustomer
PowerPower
Decreasing Decreasing CustomerCustomer
TrustTrust
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1. The importance of the Marketing model is declining1. The importance of the Marketing model is declining
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School of Management & Governance
School of Management & Governance
2. The buying / decision making process is 2. The buying / decision making process is changingchanging
Traditional MarketingTraditional Marketing
Marketing in Web 1.0 environmentMarketing in Web 1.0 environment
Marketing in Web 2.0 environmentMarketing in Web 2.0 environment
The way customers make decisions is The way customers make decisions is changing: Model of Customer Behavior changing: Model of Customer Behavior (( Kotler et al. Marketing Management, 2009) Kotler et al. Marketing Management, 2009)
© E. Constantinides
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Customer Empowerment
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Customers become Brand AmbassadorsCustomers become Brand Ambassadors
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School of Management & Governance
……but also Brand Detractorsbut also Brand Detractors
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School of Management & Governance
And it can get even worst!
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Example 1: Kryptonite bicycle locks
Example 2: AOL
Example 3: United Airlines
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Customer trust to business declines: The new influencers are the peers
84% of Americans influenced by online customer reviews (Opinion research Co, April 2009)
Bizrate survey (2007): 59% of users consider customer reviews to be
more reliable than those from experts
Study of Deloitte Touche USA: 62% of the US consumers read
consumer-generated online reviews and 98% of them find these
reviews reliable enough
80% of these consumers say that reading these reviews has affected
their buying intentions
85% of consumers will recommend a company with which they have a
trusted relationship (Carlson Marketing)
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Web Web 2.0 Dimensions2.0 Dimensions
SOCIAL MEDIASOCIAL MEDIA Social EffectsSocial Effects Enabling TechnologiesEnabling Technologies
BlogsSocial Networking SitesOnline CommunitiesForums/BulletinBoardsContent aggregators
EmpowermentParticipationOpennessNetworkingConversationCommunityDemocratization /User control
Open SourceRSSWikisWidgetsMashupsAJAX
Source: Constantinides and Fountain, 2008
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Weblogs
SNS
Online communities
Forums
Content aggregators
© E. Constantinides
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Social Media MarketingSocial Media Marketing
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Turning the Social Media Threat in a Turning the Social Media Threat in a Strategic Opportunity: The (E-)Marketing Strategic Opportunity: The (E-)Marketing StrategyStrategy
Product/ service
Marketing/ E-Marketing
Organization
Web 1.0 Web site
Web 2.0Social Media
Level Level 11
Level Level 33
Level Level 22
Level 4Level 4
Social Media as Marketing Tools: Social Media as Marketing Tools: Generic approachesGeneric approaches
© E. Constantinides
ACTIVEPASSIVE
Marketing
Strategy
Listening In PR / Direct Marketing /CS
Reach the Influencers
Personalize Experience
Tapping Tapping
CreativityCreativity
Social
Media
HOW SOCIAL IS
YOUR BRAND?
Web logs MobileCrunch Direct2Dell MashableMashable Toyota
Communities /
Microblogs
Wecando Threadless Twittorati NIKENIKE Heinz Heinz NOKIA
Dell
Social Networks H&M Hyves AA McDonalds McDonalds
HyvesHyves
XXXXXX LEGOLEGO
Forums /
B. Boards
Epinions
ReviewcenterReviewcenter
AmericanExp KLM
BookScanner
Content
Aggregators / V.O.C.
Monitoring
BizReport
BuzzCupture
DELL RSSDELL RSS
Grolsch
MyMuesli Innocentive
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A few cases
How SMEs can harness the Social Media: Examples from the field
Social Media as MarketingTools: Generic approachesSocial Media as MarketingTools: Generic approaches
ACTIVEPASSIVE
Marketing
Objective
Listening InListening In PR / Direct PR / Direct
Marketing/ CSMarketing/ CS
Reach the Reach the
InfluencersInfluencers
Personalize Personalize
ExperienceExperience
Tapping Tapping
CreativityCreativity
Application Type
Web logs XXXXXX XXXXXX XXXXXX
XXXXXX
XXXXXX
Communities /
Microblogs
XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
XXXXXX
Social Networks XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
Forums /
B. Boards
XXXXXX XXXXXX XXXXXX
Content
Aggregators /
V.O.C. Monitoring
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX XXXXXX
© E. Constantinides
School of Management & Governance
Case 1: Case 1:
BlendtecBlendtec
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FactsBefore October 2006, Blendtec had spent more than a decade selling blenders to the commercial market (restaurants and so
on) but had little name recognition with mainstream consumers.
“Will It Blend” became a viral phenomenon generating 100 mil views, presence in mass media, about 700.000 fans and national distribution, sales up by 600% since the launch of the videos
Will it Blend?
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Case 2: Red Scarf Case 2: Red Scarf EquestrianEquestrian
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Joanna Wiseberg
Case 3:Case 3:The Dessert Gallery Facebook ExperimentThe Dessert Gallery Facebook ExperimentUtpal M. Dholakia and and Emily Durham HBR March 2010
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Social Media and CRM / Social Media and CRM / customer servicecustomer service
School of Management & Governance
School of Management & Governance
School of Management & Governance
Social Media as MarketingTools: Generic approachesSocial Media as MarketingTools: Generic approaches
ACTIVEPASSIVE
Marketing
Objective
Listening InListening In PR / Direct PR / Direct
Marketing/ CSMarketing/ CS
Reach the Reach the
InfluencersInfluencers
Personalize Personalize
ExperienceExperience
Tapping Tapping
CreativityCreativity
Application Type
Web logs XXXXXX XXXXXX XXXXXX
XXXXXX
XXXXXX
Communities /
Microblogs
XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
XXXXXX
Social Networks XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
Forums /
B. Boards
XXXXXX XXXXXX XXXXXX
Content
Aggregators /
V.O.C. Monitoring
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX XXXXXX
© E. Constantinides
School of Management & Governance
What my students What my students diddid
Soocial.com
Distimo.com
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Social Media as MarketingTools: Generic approachesSocial Media as MarketingTools: Generic approaches
ACTIVEPASSIVE
Marketing
Objective
Listening InListening In PR / Direct PR / Direct
Marketing/ CSMarketing/ CS
Reach the Reach the
InfluencersInfluencers
Personalize Personalize
ExperienceExperience
Tapping Tapping
CreativityCreativity
Application Type
Web logs XXXXXX XXXXXX XXXXXX
XXXXXX
XXXXXX
Communities /
Microblogs
XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
XXXXXX
Social Networks XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
Forums /
B. Boards
XXXXXX XXXXXX XXXXXX
Content
Aggregators /
V.O.C. Monitoring
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX XXXXXX
© E. Constantinides
School of Management & Governance
School of Management & Governance
School of Management & Governance
School of Management & Governance
Social Media as MarketingTools: Generic approachesSocial Media as MarketingTools: Generic approaches
ACTIVEPASSIVE
Marketing
Objective
Listening InListening In PR / Direct PR / Direct
Marketing/ CSMarketing/ CS
Reach the Reach the
InfluencersInfluencers
Personalize Personalize
ExperienceExperience
Tapping Tapping
CreativityCreativity
Application Type
Web logs XXXXXX XXXXXX XXXXXX
XXXXXX
XXXXXX
Communities /
Microblogs
XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
XXXXXX
Social Networks XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX
Forums /
B. Boards
XXXXXX XXXXXX XXXXXX
Content
Aggregators /
V.O.C. Monitoring
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX XXXXXX
© E. Constantinides
School of Management & Governance
Seth Haber
School of Management & Governance
Conclusions Declining Effects of Traditional Marketing Increasing Customer Power,
transparency, alternatives customer generated content / Decreasing Customer Trust
Social Media: New Tools of Marketing for SMEs Listen to customer voice PR, Advertising Reach the New Influencers Mass Customization Distributed co-creation
