Marketing White Paper Social Media

8/10/2019 Marketing White Paper Social Media

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22 percent of all time onlinenow is being spent on socialmedia and blog sites.

Social networks and the like canbe used to attract and influencecustomers.

Community, Identity, Stability

If you disregard the dark subtext, Aldous Huxleys motto for his BraveNew World might well fit the social networking revolution. In the 21

st

century, this is the way your customers interact, collaborate, formcommunities, influence each another, and, most importantly for

businesses, how companies reinforce brand loyalty.

While some organizations are tempted to dismiss social media as aconsumer phenomenon, it offers businesses powerful brand-buildingand customer-engagement tools. One key reason for the success ofsocial media marketing: its where your customers are. According to asurvey conducted by Nielsen in April 2010

2, social media sites account

for three of the worlds most popular online brands Facebook,YouTube and Wikipedia. Additionally, 22 percent of all time online nowis being spent on social networks and blog sites an increase of 24percent over 2009.

And that time means money. Recent research indicates that socialmedia is having a strong influence on consumer preferences. It isincreasingly on social media that retail brand awareness is establishedand brand image is built, explains Ivano Ortis, research director, IDCRetail Insights. Social networks, blogs, price comparison Web sites,and the like can all be used by retailers of all kinds and sizes to attractand influence customers, to study demand patterns, to improve brandreputation, and finally, to provide customer support.

New Trends

IDC researchers found that the innovative nature of social media canturn multiple account profiles into an opportunity for retailers tocapitalize on same-shopper sales growth prospects

3. Additionally,

shoppers are making greater use of mobile social networks, a trend that

is likely to bridge the gap between online and physical shopping.

Another important factor businesses must consider when evaluatingsocial network marketing is the fact that a majority of consumers rely tosome extent on social networks to guide them in their purchasedecisions. According to a new report by Gartner

4, these social networks

often include individuals who fulfill different roles or functions inrecommending products to people with whom they are connected.

Companies attempting to use social networks should developrelationships with key customers over a period of time andprogressively refine the social network profiles of those individuals,says Nick Ingelbrecht, research director at Gartner. In this way, the

most suitable individuals can be targeted with the right information,products and promotions in the most cost-effective way. Retailers who

2Social Networks/Blogs Now Account For One In Every Four and a Half Minutes

Online http://blog.nielsen.com/nielsenwire/global/social-media-accounts-for-22-percent-of-time-online/3IDCs report, Business Strategy: Social Commerce Opportunities, Strategies, and

Risks for Retailers Globally4The Gartner report, "User Survey Analysis: Consumer Marketing Using Social Network

Analysis, Worldwide, 2010." http://www.gartner.com/resId=1381514.


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Succeeding in social mediamarketing depends on the rightinvestment, analytical tools,integration with traditionalmarketing and executivesupport.

Once again, we see some companies taking bold steps to invest, evenamid massive uncertainty, says John Rose, a senior partner in BCGsNew York office and an author of the report. He points out that there isno single winning formula for integrating social network marketing intothe overall organization, however, businesses most likely to succeed indigital marketing share certain characteristics:

They are more likely to set minimum levels for investment in digitalmarketing.

They are more likely to possess analytical tools required to maketradeoffs across media vehicles

They are more likely to integrate campaigns across digital andtraditional marketing

More of their marketing executives will believe that digital marketingis important to their personal success

Partnering with firms that have an expertise in social network marketingalso can yield good results, particularly for smaller organizations orthose that are less technology focused.

Companies know that by failing to effectively integrate digitalcampaigns, they risk wasting marketing dollars by the millions, saysJens Harsaae, a BCG partner and co-author of the report. By fumblingconversations with digital consumers, they risk damaging a brandsreputation. Inaction is not the safe option.

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Marketing White Paper Social Media