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MAKING USE OF ‘FREE’ MARKETING TOOLS: INTEGRATION OF SOCIAL MEDIA

J.P.J.C. van Dorst | S. Syamsuddin

ROTTERDAM SCHOOL OF MANAGEMENT, ERASMUS UNIVERSITY

Department of Strategic Management and Entrepreneurship

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Field Research

Course BKMME160-10

MAKING USE OF ‘FREE’ MARKETING TOOLS:

INTEGRATION OF SOCIAL MEDIA

J.P.J.C. VAN DORST

ROTTERDAM SCHOOL OF MANAGEMENT, ERASMUS UNIVERSITY

Department of Strategic Management and Entrepreneurship

Burgemeester Oudlaan 50

3062 PA Rotterdam

Tel: (0031) 6-30545543

E-mail: jeffreyvandorst@student.eur.nl

S. SYAMSUDDIN

ROTTERDAM SCHOOL OF MANAGEMENT, ERASMUS UNIVERSITY

Department of Strategic Management and Entrepreneurship

Burgemeester Oudlaan 50

3062 PA Rotterdam

Tel: (0031) 6-21683930

E-mail: syamsuriasyamsuddin@student.eur.nl

Submitted on the 26th

of May, 2011

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This report shows the results of a study on how social media can be incorporated as a

marketing tool. For this purpose a roadmap is developed which can guide practitioners

who want to start making use of social media as a tool to communicate their business. In

order to develop this roadmap a literature study is done, but also in-dept interviews are

conducted with users and experts from the field. As these participants are in different

phases of incorporation, practical insights are included.

oday social media is a widely used

medium and with almost 12 million

Internet users of the Dutch population of

15 years and older (comScore, Inc., 2011)

this can be seen as a fact. Moreover they

state that 96.1 percent of the Dutch Internet

population makes use of social networking,

which can be seen as an indicator of the

reach of social networks in the

Netherlands. This large reach makes them

attractive for business purposes as they

form a new and powerfull place for

marketing activities (Wigmo & Wikström,

2010). Since social networks are used to

share, link, collaborate and include content

made by the user, users are able to engage

in the generation of online content

(Thackeray, Neiger, Hanson, & McKenzie,

2008) and can choose between several

kinds of platforms that are available. Those

platforms consist of social networks,

weblogs (blogs), microblogging, video-

sharing, photosharing, social bookmarking,

social news ranking, wikis and custom

communities (Social Media Modellen,

2011). By this, it is the perfect place for

viral marketing since it makes use of the

ability of peope to spread a message within

their network if they can personaly benefit

of it (Kraus, Harms, & Fink, 2010). That

viral marketing is a method which is usable

as a ‘free’ marketing tool becomes clear by

the statement of Lahm (2007) that

bootstrappers are willing to make use of

viral marketing to spread a message for

free. The reason that free is put between

inverted commas in the title is that

spreading your message via social media is

not totally without costs. This is made

clear by Thackeray et al. (2008) by

viewing the costs of a social media

campaign from a business and individual

perspective. From the business perspective

costs can be found in the scope of the

activities (timeframe, reach, used

applications) and the needed internal

T

The Authors

Jeffrey P.J.C. van Dorst is a master student Entrepreneurship and New

Business Venturing at Rotterdam School of Management, Erasmus

University in Rotterdam, The Netherlands.

Syamsuria Syamsuddin is a master student Entrepreneurship and

New Business Venturing at Rotterdam School of Management, Erasmus

University in Rotterdam, The Netherlands.

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resources like hardware and software,

knowlegde and the development of it and

the full time equivalents required for the

social media campaign. On the other hand,

from the individual perspective, costs can

be minimal since only time and effort are

needed to participate in the social media

campaign by

generating content and

sharing knowledge.

Considering this, costs

of using social media

as a marketing tool can

be seen as minimal

because the

infrastructure needed to

make use of social

media is in most cases

available and platforms

and application are free

too. Only costs that are

needed is the time to

spend and perhaps for

gaining knowledge or

making use of a

training. As a lot of

information is

nowadays widely

available when

searching the Internet

or inside social

networks, a thing

which is also

mentioned by Wigmo

and Wikström (2010)

as they state: “the best

information is often

right there for free”, costs can be reduced

drastically. As this makes the use of social

media available for a wide and large group

of entrepreneurs, including the

bootstrappers, the purpose of this article is

to provide a road map on how to

incorporate social media marketing into the

marketing activities of a business. For this

purpose the target group for this report is

the practitioner from the field who wants to

know how to incorporate social media

marketing with minimal costs to improve

their business.

Social media

roadmap

To incorporate

social media marketing

in your business

activities it is important

to complete several

steps in certain order

(Wigmo & Wikström,

2010; Zak, 2009;

ClickZ OMS, 2009).

This is important

because social media

marketing needs a

different approach than

the classical marketing

platforms, like

magazines and

television campaigns.

The nature of social

media is fundamental

to this as users form the

centre of the

communication

process. They can seek,

create and share

information via several

channels and devices

whenever they want

and without limitations from their current

location (Thackeray & Neiger, 2009). This

means that practitioners have to find out on

which social media platforms their target

groups are active. Since the nature of

social media is sharing knowledge and

information, viral marketing is an

Our research

In order to develop the road map qualitative research is conducted to examine how social media is used as a marketing tool by users. Exciting part of the topic is that it is still very fresh, which can be seen by the limited scientific research on it and the different perspectives and visions from the field. By conducting four in dept-interviews with five different users, we were able to discover their ways of using and their visions on it. By creating diversity in our sample as we interviewed both beginners and advanced users, but also experts, we were able to conlude how Dutch entrepreneurs can make use of social media as a marketing tool. Combined with the insights from the desk research and the literature review this resulted in a roadmap to guide practioners during their social media marketing activities.

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important method to use. Due to this,

practitioners have to discover how they can

motivate their target groups to share

information within their network

(Thackeray & Neiger, 2009) as the success

of viral marketing depends on the personal

benefits the receivers of the message

experience by forwarding the message and

by not being pushed to forward the

message (Dobele, Toleman, & Beverland,

2005).

Because this indicates the

importance of the different approach for

social media usage, this report is equiped

with a roadmap which is displayed in

figure 1. The purpose of this roadmap is to

make clear which steps practitioners have

to fulfil in a certain order to establish a

proper way of using social media

marketing.

Preparing for social media

Before becoming active on social

media platforms, preparation is a must in

order to prevent your business from

backfires (Kim, Jeong, & Lee, 2010). To

prepare your business for the use of social

media as a marketing tool the first three

steps from the roadmap have to be

fulfilled.

Step 1: Listen

The first step to be taken is ‘Listen’

(e.g. Eck, 2011; Wigmo & Wikström,

2010; Zak, 2009; ClickZ OMS, 2009).

Besides this is the first step, it is even the

most important and a neverending step as it

will provide you with information and

knowledge for free. First of all it will make

clear which platforms are used by your

customers. Second, knowledge can be

Figure 1 Roadmap to incorporate social media

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gained about what customers think about

you and what they want to have, but also

about their problems and frustrations. By

monitoring this you are able to fulfill a

need for information (Reece, 2010).

Step 2: Create a plan

The second step to be taken is the

creation of a social media marketing plan.

After more information is gained about the

target group of your social media activities

during the first step, the second step will

continue on this obtained knowledge.

During the second step it is important to

make clear the objectives of the social

media marketing activities. When the

objectives are clear a strategy can be

developed. More precise, the strategy must

consist of the following aspects: content,

interaction and discovery & sharing

(ClickZ OMS, 2009). First it must be clear

what kind of content your target group

expect from you: new or user generated.

Second, your strategy must make clear

how to maintain an expected level

interaction. This is what customers expect

from you (ClickZ OMS, 2009) and besides

it is important to contribute more than you

consume (Reece, 2010). The third and last

aspect of the strategy is a vision on how

your target group can discover and share

your information. Unless there are several

things to use, for example hashtags on

Twitter, most important is how your target

group can reach your contributions on the

most easiest way. Therefore it is important

to know how your target group is searching

for information and knowledge.

When the strategy is developed it is

time to determine a prefered attitude to

make clear which behaviour is expected

from the users inside your business.

Important is to listen and only contribute to

a conversation when you can add value to

it. Besides a policy can be developed to

make clear what you expect from your

employees while using social media.

Regarding to Veldwijk (2011) a social

media policy will have the following

benefits:

• You express confidence in your

own staff;

• You have a framework to

implement a strategy;

• You reduce the gap between

younger and older employees;

• You can react in time to prevent

damage to your reputation;

• You impove internal

communication through mutual

cooperation.

To obtain these benefits a social media

policy has to provide an answer to the four

following questions (Wigmo & Wikström,

2009):

• What can we talk about and what

not?

• What steps do we have to take

when something goes wrong?

• Who is responsible for which

contributions?

• Which platforms do we have to use

for reaching the objectives?

Unless all questions are important, not all

questions have to be answered in the social

media policy. Of course some answers are

already given within the other parts of the

social media marketing plan. That a good

policy does not have to exist of all the

questions becomes clear by the social

media policy of the TNT Group. Their plan

consists of the following chapters (TNT

Group, 2010):

• Introduction:

to make clear why the policy exists;

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• Basic principles:

to let your employees make use of

social media in a proper way;

• Guideline for using social media:

to indicate what you expect from

your employees and what not;

• Guideline on when to react:

to indicate what your employees

should do in different

circumstances.

Now the important tactical and

strategical aspects are completed it is time

to select facilitators to spread the message

(Baer, 2009; Wigmo & Wikström, 2010).

Dissapointing fact is that there is no exact

answer to the question what the right social

media platforms are. This can be seen as

which weapon a soldier has to use to

conquer his enemies. As this depends on

the characteristics of the weapon, the

enemies and the place, no single answer

can be given to this question. For choosing

the most effective social media platforms

there are no differences and the words

“depend on” will be heard many times.

Unless the question about which

social media platform is effective in a

certain situation is hard to answer, the

interviews with the users and experts

provided some valuable insights to handle

this question. Aspects to consider while

selecting the most effective social media

platforms for your social media marketing

activities are the following:

• The objectives of the company

The most important thing to

consider, before deciding which

social media platforms the

company have to use, is how to

align with the company's

objectives. By using social media,

it is expected that the company will

benefit from it. Which social media

platform is effective to use as a free

marketing tools also depends on

how the company/entrepreneur is

willing to use social media to

support the business activity.

• The product's characteristic

Every product has its own

characteristics. Thus by deciding

which social media platforms to

use, the company should consider

what the best-suited social media

platforms will be to promote their

products.

• The target group

Knowing the target group is an

important aspect before start using

social media. It is important that the

company is using the same social

media platforms as the target

group. The company should find

out where the potential customer

primarily can be found and it is

important that the company is

present on the same platforms

(Bark, 2009 in Wigmo &

Wikström, 2010). Furthermore, the

company should listen to the people

about what they want and attract

them by using the right social

media platforms to reach and

involve them.

When the right social media

platforms are selected a last important

aspect can be added to the social media

marketing plan, namely the content

calendar (Eck, 2011). This tool makes it

possible to plan your contributions to the

several social media platforms that are

intended to use. Besides this also makes it

possible to evaluate the frequency of your

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contributions. An example is show in

figure 2.

Figure 2 Social media content calendar

Incorporating social media

After completing the first two steps

of the roadmap, enough knowledge is

obtained to make use of social media

platforms and a social media marketing

plan is developed. Now practitioners are

able to register their business an account

on the relevant social media platforms,

building an online brand and start adding

value to the community. To develop

yourself to a practitioner who is able to

create their own content on social media

platforms, the remaining steps of the

roadmap have to be fulfilled.

Step 3: Join

When the framework for the social

media activities is completed, social media

platforms can be joined. First step for

joining the social media is registering an

account. By listening and by creating a

plan it became clear which platforms are

relevant for your business and which have

been chosen to use.

Second step is to develop the

profiles on the different platforms.

Important aspects to consider while

developing the profile are (Biemans &

Kammers, 2011; Schoone, 2011):

uniformity of identity in real-life and on

the Internet and to be transparent. Besides

it is important to consider that this profile

must promote your business, but as social

media is a social environment the content

has to be not too commercial. This can be

done by introducing your business and

indicating your strengths. Besides,

information about for example the

company, products and owners can be

provided. This is similar to personal

profiles where information like

employment, education and relationship is

submitted.

Step 4: Participate

When the relevant accounts are

registred and developed it is time to start to

participate on the social media platforms.

During this step an online brand is built by

actively contributing to discussions and

questions and giving your view on

products and services. By adding value to

the social media, users start to respect you

and will voluntary start promoting you by

spreading the message. Remember that this

effect will disappear if your contribution

becomes too much, a thing which is also

know as spamming. Besides, it will even

result in a situation where users of social

media platforms will not voluntarilly

promote you anymore (Wigmo &

Wikström, 2010) and the contributions by

viral marketing will disappear.

As this step consist of a large

process, it is clear that users go through a

learning curve during this step. This can

also be seen when placing this step in the

Social Media Ladder of Forrester Research

Inc. (Gain, 2010). As all other steps consist

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of just one rung, the step participate

consists of three rungs.

The first rung that is reached when

users enter this phase is those that is called

the collectors. Since their profiles are

created and developed they are ready for

participation. They will do this by using

RSS feeds to collect information and

knowledge, vote for websites and add

“tags” to content that is distributed through

social media platforms. Examples of those

content are photos, status updates and

websites.

When users are used to this way of

acting they are becoming more active on

the social media platforms by contributing

to wikis and online forums, reacting on

blog posts of other users and providing

products and services with a rating and/or a

review. By doing this, users have

developed themselves and are recognized

as critics on the scale of the Social Media

Ladder (Gain, 2010). As the use of social

media became common for users at this

stage, users are starting to develop

themselves towards the final rung of this

step, namely conversationalists. During

this stage their frequency of participating

becomes higher. Besides, they start using

other tools to communicate like Twitter

and status updates on their social media

profiles.

While developing yourself through

the above described process, users are able

to listen and contribute to others which will

create goodwill. When you have created

enough goodwill and established yourself

in the social media environment the time

has come to go to the final step of the

roadmap in order to get something back

from the network. Important lesson till

now is that the incorporation and also the

participation is done by small steps in

order to optimize the learn curve.

Step 5: Create

The final and the most important

step in using social media for marketing

activity is the creation step. The company

should create the content based on what

kind of information that the company get

from the customers. The content can be

shared in the social media channel to other

users and the company is free to decide

what kind of content to share (e.g update

information about product, the company's

news and even share the content that is not

related at all to the company).

The create step is not about creating

the social media profile, but on creating

value and offering the right value on the

right time at the right place. Value means

relevant content, useful information, tailor

made promotion depending on the signal

the company gets from the observation of

the customer. By contributing and offering

value to the community, the company will

receive value from the community. The

users become interested in you and want to

know more about your business. Satisfied

customers or so called "fans" or

"followers" will be the strongest sales force

of the company as they contribute to the

viral marketing. As users are now in the

ability to create their own content, they

reached the final rung of the Social Media

Ladder and are known as Creators (Gain,

2010).

There is a common rule that is

adopted by many social media users for

business regarding to the creation and

information of offering. It is highly

recommended that the company delivers

the message not in a commercial way,

otherwise the message will be read as an

advertisement or spam. Thus,

communicate your message by the way the

users communicate.

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Success factors for using social

media

The development of social media is

good news for marketers, because it is part

of almost any Internet user's life and

changed the way people communicate. It

means that the marketers have an

additional channel to spread the marketing

message to the customers or potential

customers. However, social media content

is different with the content in general

web. Social media content is more

fragmented. Companies that focus on

websites maybe improve readability,

especially for higher conversion, but this is

not similar social media content. In social

media, the readability is the most important

aspect to manage since the content

circulation is incredibly fast and widely

distributed. When the content is not clear

for the receivers, this will lead to

misunderstandings and perhaps even in

negative effects.

In order to create success of using

social media, there are some common key

factors and strategy. Based on the

interviews, some proven key success

factors of using social media as a free

marketing tool are retrieved and displayed

below.

Good product is a good start!

The basic and the most important

thing on marketing is the product. A good

product combined with good promotion

will create success. A good product will

benefit the customers and it will be easy to

promote (Eck, 2011). Before starting to use

social media, the most important thing is

making sure that the company can offer a

good product to the customers. Bad quality

products will easily ruin all of the

marketing efforts and spontaneously

change the image of the products and the

brand.

Knowledge about using social media

The knowledge of using social

media and its features is the foundation of

the success. Every social media platform

was created with some features that aim to

help the users in reaching their goals by

using the social media. Optimizing the key

feature will improve the likelihood of

success.

Regarding to the social media

content, it is very important for the

company to have a good management of

the content. Social media content and

information will reflect the image or brand

of the company or product. Good content

will contribute to the increase of attention

to the company and could be a

distinguishing feature. On the other hand,

if social media content is not managed

well, it will imply to the negative image of

the company or products since the effect of

mass social media is uncontrollable and

difficult to change. As this implies that

social media success is something that has

to be earned, it is important to know how

to listen and respond to both positive and

negative developments (Corcoran, 2009).

Besides, Corcoran (2009) also indicates

that it is important to know when to try and

stimulate the viral marketing effect.

Good understanding of target Customer

For successful use of social media

as a marketing tool, the company must

focus on the relationships with the

customer, not merely on the technology.

Maintaining the relationship with the

customers’ need a good understanding of

customer needs and wants can be obtained.

If the company is able to listen to the

customer, knowing what they are talking

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about and what they want, it will be easy to

develop and create a product based on that

kind of information. Through the right

channel and right social media platform,

the customer will be easy to approach thus

the company can serve a wide public by

following the audiences in different social

media platforms.

However, it is not easy to get the

attention from the social media users to the

company's product. Some companies that

use social media as a marketing tool start a

community to create a hype around their

product. Another way around, instead of

starting the community, it is also good to

plug into an existing community (Eck,

2011). In addition, the employees of the

company should have enthusiasm to be

active on social media platforms and to

communicate the information about the

company on several social media

platforms.

The collaboration of the crowd

Some users/experts think that, the

most important thing in using social media

as the marketing tools is the collaboration.

Collaboration with the community is

important to create a large network to

spread the message. In order to collaborate

with the crowd, the company could plug in

with the existing community. After that,

the company should post or write a content

that will be found by the community as

beneficial information for them and for the

others (Bosch, 2011). Thus, the message

will be sent by itself and create a viral

effect. For example, in microblogging

media like twitter, another way of building

a network and a larger number of follower

is to retweet other people’s tweets. If the

follower find something interesting from

the user they are following, the followers

will do a favour by sharing that

information. In addition, the follower is

also acknowledging the person they are

retweeting (Jantsch, 2009). New

developments can be shared in a message

and if this is interesting enough people and

other large communities will retweet.

Based on this, there are two main reasons

why people forward the message: first

because information is considered as

important in forwarder’s point of view, the

second reason is because the information is

made by someone who is reputable and

respected by message forwarders.

In case of using the power of the

crowd in a proper way the company will be

close to success, because the power of the

crowd is very strong. The collaboration of

the company and the crowd can be a

mutual benefit for both of them. On the

one hand, the company can reach a wide

audience in a fast and efficient way. On the

other hand, the users benefit from it

because they obtain knowledge or

information they like, can share this with

their friends and are able to act on it.

The social media platforms can be

an efficient channel to spread the messages

by making use of viral marketing. A clear

example on the importance of

collaboration by the crowd when using

viral marketing, becomes clear by an

example of the social media campaign of

the Dutch beer brand Grolsch. In 2009 they

created a rumour that something unique

was going to happen on a roof top. That no

one knew about the specific date and

location started people wondering and

interacting about it with each other. Just

two days before the event the artists who

would contribute to the event were

announced, but the location still remained

secret. This created a load of discussions

on several social media platforms and

when it actually started, the word was

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spread very quickly. This wide distribution

and the created hype were not anymore

small and national media stations picked

up the news. This resulted in the creation

of a central platform where followers could

keep track on all the created content, but

even more important was the positive

effect on the branding, image and the

turnover (Isobar Human Media, 2010). In

sum, the result of this example was on the

one hand an experience for the followers

and on the other hand benefits for Grolsch.

In order to persuade people to be

involved in the company's development,

the six principles of persuasion Robert

Cialdini can be applied (Jong, 2011).

Those principles are Liking (people like

those who like them), Reciprocity (people

repay in kind), Social proof (people follow

the lead of similar others), Consistency

(people align with their clear

commitments), Authority (people defer to

experts they trust) and Scarcity (people

want more of what they can have less of).

If these principles can be applied in using

social media, people will pay much

attention to what you are sharing to them

and will collaborate.

Overcome the barriers

Even though it is a young and fresh

domain, the development of social media is

fast and dynamic. Because of this, it

requires continually updating your

knowledge and making use of it by

performing social media activities. Almost

no company today can grow without

dealing with social media. In many cases,

companies are not doing much more than

opening an account on the various

platforms (Hooijdonk, 2011). But to

develop a social media strategy users

should first deal with some barriers.

From the interviews with the users

and experts some common barriers that

usually occur before using social media are

retrieved. First, The knowledge barriers.

The users should have knowledge about

the social media platform that they want to

use, how they work, what the main features

are and how to optimize the features to

help the company promote their products.

Second, the online culture. In the world of

Internet, facing online culture is inevitable.

Sometimes the language or how people

interact is much more informal. Thus, the

company should be ready to deal with that

kind of culture.

Besides that, there are no facts or

certain guidelines on how social media

usage for marketing tools will benefit the

company. Thus, the company has to learn

how to deal with this uncertainty. Another

important thing is that people or users form

different generation have a different look

towards social media and this has to be

overcome. Another aspect that could be a

barrier for using social media is the

transparency. The social media content is

meant to be shared, thus the fear of

transparency/visibility must be overcome.

The most dangerous effect of transparency

comes from the competition. Some

entrepreneurs do not want to use social

media to communicate with customers,

because of their fear for transparency. The

competitors could make use of certain

information to their benefit and could give

bad impact to the company (Schoone,

2011).

According to what this study

retrieved from the field, the transparency

of social media is not bad as many people

said. Even though it looks riskier to be

transparent and easier to share information,

it is more importantly to be open and

transparent to the public. If there is a

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negative effect of transparency, the

company should able to learn from that and

can keep in front of the competitors

(Schoone, 2011).

Glossary

Bootstrapper

Person that makes use of bootstrapping

techniques.

Bootstrapping

The technique to start and run a business

with limited resources by using external

help.

Custom community

Online software to create your own

communities.

Desk research

A technique to gather data that already

exists from existing resources, such as

previous studies, articles on the Internet,

magazines and another sources.

Hashtags

Hashtags is also known as the "#" symbol.

Used to mark keywords or topics in

Twitter. It is created organically by twitter

users as a way to categorize the messages.

Literature review

Body of text that has a purpose to review

critical points of certain topic and

knowledge from the current literature,

including substantial findings about that

topic.

Microblogging

Kind of weblog that makes use of short

messages.

Photo-Sharing

Platform to share pictures and to react on

it.

Qualitative research

Research technique to reveal certain

behaviour and perceptions by making use

of in-depth studies of small groups of

people to explain certain phenomena.

Roadmap

A technique of reporting that gives the

audience a guidance and example of how

to conduct certain activity.

RSS feeds

RSS feeds is a web feature that is being

used by Internet users around the world to

keep track of favorite websites.

Social bookmarking

Platform to share your favourite websites

and social media platforms with others.

Social media

Various platforms that integrate the

technology, social interaction and the

construction of words, pictures, video and

audio to spread knowledge and

information.

Social networks

Platform to share information and

knowledge, but also to stay in touch with

friends, customers, suppliers and other

professional contacts.

Social News Ranking

Platform to rank news reports.

Spamming

Unsolicited sending large number of

messages to other users.

12

Tags

A label attached to someone or something

for identification or other information.

Video-Sharing

Platform to upload, watch and share

videos. Besides, it is also possible to react

on the uploaded videos.

Viral Marketing

Marketing phenomenon that facilitates and

encourages people to pass along certain

marketing messages.

Weblogs

Kind of online diaries to share information

and finding out how others think about

certain subjects.

Wikis

Together created platform with any kind of

knowledge to make sharing of it possible,

but also knowledge can be obtained.

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