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Page 1: Chapter Nine Social Media - deu.edu.trkisi.deu.edu.tr/sumeyra.kurt/MRK 4222/PPT/clow_imc7_inptt_09_rev.pdf• Covergirl, Revlon –99% views consumer generated ... •Enhance brand

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Copyright ©2016 Pearson Education, Inc. 9-1

9 Chapter Nine

Social Media

Copyright ©2016 Pearson Education, Inc.

Chapter Objectives

1. What constitutes a social network?

2. What are the unique characteristics of the primary social media web sites?

3. What is the nature of social media marketing?

4. Which social media marketing strategies do companies employ?

5. What social media measurement metrics are available to marketers?

6. How can marketers use social media strategies in international operations?

Social Media9

9-2

Copyright ©2016 Pearson Education, Inc. 9-3

Wholly Guacamole

• High pressure processing

• Staple item, popular

• Leverage social media

• Brand alliances

• Biggest Loser

• Sonic

• Disney

9

Copyright ©2016 Pearson Education, Inc. 9-4

Chapter Overview

• Altered communications

• Basics of social networks

• Popular social networks

• Social media marketing

• Social media metrics

• International issues

9Social Media

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Social Media Terms• Social media – digital tool or venue that

allows for social interaction

• Social network – social structure of

individuals or organizations

• Social media marketing – utilization

of social media or social networks to

market a product, company, or brand

Copyright ©2016 Pearson Education, Inc. 9-6

F I G U R E 9 . 1

Types of Social Networking Sites

• General social networking sites

• Niche social networking sites

• Business

• Family and lifestyle

• Dating

• Special interests and hobbies

• Shopping

• Social bookmarking sites

Copyright ©2016 Pearson Education, Inc. 9-7

F I G U R E 9 . 2

Social Media Users

Social Networking Site Percent of

Internet Users

Primary users

Facebook 67% Adults 18-29

Females

Twitter 16% Adults 18-29

African-Americans

Urban residents

Pinterest 15% Adults under 50

Females

Caucasians

Some college

Instagram 13% Adults 18-29

Females

African-Americans, Latinos

Urban residents

Source: Based on Maeve Duggan and Joanna Brenner, “The Demographics of Social Media Users – 2012,” Pew Research Center,

www.pewresearch.org, February 14, 2013.

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Facebook• Largest social media site

• 1.2 billion users worldwide

• Advertising• $2 billion in ad revenue

• 17.7% of display ads

• Demographics• Teens decline 25%

• Individuals 55+ increase 80%

• Usage• Only 10% update status daily

• Only 15% comment daily

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Copyright ©2016 Pearson Education, Inc. 9-9

Advertising Effectiveness

Facebook versus Twitter

• 10 times more shares

• 20 times more site traffic

• 20 times more new customers

Compared to Twitter, Facebook generates:

Two-way versus one-way communication

Copyright ©2016 Pearson Education, Inc. 9-10

Twitter• Micro-blogging service

• Maximum of 140 characters per message

• 54 million users

• 41 percent are minority

• Effective method of reaching customers

• Monitor what customers are saying

• Effective for small businesses

Copyright ©2016 Pearson Education, Inc. 9-11

F I G U R E 9 . 3

Trends in Consumer Video Sharing

• Uploading broadcast ads

• Video reviews of products

• Re-creation of ads

• Creating consumer produced how-to videos

• Capturing real-time events

• Creating branded videos

Copyright ©2016 Pearson Education, Inc. 9-12

YouTube

• By 2017 YouTube will surpass Facebook and Twitter

• Covergirl, Revlon – 99% views consumer generated

• Swiffer ad re-creations – 10.5 million views

• Fan-produced videos exceed brand-produced

• Product usage or repair – videos instead of manuals

• Brands monitor fan-created videos• Positive videos – support

• Negative videos – creatively respond

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Copyright ©2016 Pearson Education, Inc. 9-13

Instagram• Mobile photo and video sharing

• Owned by Facebook

• 200 million users

• Users young, wealthy, and female

• 60% visit daily

• Popular marketing tactics• Contests

• Crowdsourcing of photos

• Uploading personal photos with brand clothes

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Pinterest

• Bulletin-board style social network

• 70 million users

• 70% are female

• Popular topics

• Food

• Fashion

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F I G U R E 9 . 4

Reasons for Social Media Marketing

• Engage fans

• Increase brand exposure

• Avenue for customer interaction

• Increase traffic

• Generate leads

• Enhance brand image

• Improve search rankings

• Gather customer intelligence

• Develop loyal fans

• Increase sales

Source: Based on “Social Strategies for 2014,” Wildfire by Google Whitepaper, Ad Age Content Strategy Studio, October 2013; M ichael

A. Stelzner, “2013 Social Media Marketing Industry Report,” Social Media Examiner, www.socialmediaexaminer.com, 2013.

Copyright ©2016 Pearson Education, Inc. 9-16

Reasons for Social Media Marketing

• Engage fans

• Increase brand exposure

• Interact with customers

Hooters

Brand rejuvenation

Social media integral component

Engage females

Share experiences

Wholly Guacamole

Lion King DVD giveaway

95,000 impressions on Facebook

Increase customer interactions

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Copyright ©2016 Pearson Education, Inc. 9-17

Reasons for Social Media Marketing

• Drive traffic

• Generate leads

• Enhance brand image

Provide Web URL in social media

Generate leads – business-to-business

Enhance brand image

Solve problems

Provide information

Gain insights into product usage

JD Powers

Online interactions impact brand perceptions

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Reasons for Social Media Marketing

• Improve [organic] search rankings

Brand name mentioned in social media

Search engine algorithms examine mentions

Content or comments fit search terms

Quality of interactions enhanced

Copyright ©2016 Pearson Education, Inc. 9-19

Reasons for Social Media Marketing

• Customer intelligence

Social listening, social chatter

Provides insight into customer thoughts

Occasionally, social buzz requires a reaction

General Mills

Cheerios ad

Negative racist comment

Comment section disabled

Believed comments were a minority

Did not discontinue ad

Copyright ©2016 Pearson Education, Inc. 9-20

F I G U R E 9 . 5

Functions of Social Listening

• React to negative feedback

• Detect problems

• Gather topics for branded content

• Predict trends

• Detect patterns or shifts in views

• Identify brand advocates

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Brand AdvocatesSocial Listening

• 4.7% fans generate most social buzz

• Most customers do not make comments

• Brand advocate characteristics• Behavioral commitment

• Emotional connection

• Quality communication skills

• Recruit brand advocates

Copyright ©2016 Pearson Education, Inc. 9-22

Reasons for Social Media Marketing

• Increase sales

• Build brand loyalty

Should be secondary objectives

Coca-Cola study

No relationship between buzz and sales

McKinsey study

Negative buzz – 8% sales decline

Copyright ©2016 Pearson Education, Inc. 9-23

F I G U R E 9 . 6

Social Media Strategies

• Content seeding

• Real-time marketing

• Interactive blogs

• Consumer-generated reviews

• Viral marketing

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Content Seeding• Provide incentives to encourage sharing

• Financial incentives• Coupons

• Rebates

• Contests

• Mistakes can be a seed

• Value-added incentives• Exclusivity

• Altruism

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Save The Children: Video 1 – Video 2

Always – Like a Girl

McDonald’s Super Bowl-2015

Mercedes Benz

KFC

Burberry

WWF-Last Selfie

Turkish Airlines

Examples of Successful Social

Media Campaigns

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Real-Time Marketing• 2013 Super Bowl – Oreos

• Instantaneous marketing message

• Sporting events

• War rooms

• Upfront strategic planning

• Policies and rules

• Natural events

• The Oreo Eclipse

• Major Electricity Shutdown-2015

Copyright ©2016 Pearson Education, Inc. 9-27

Interactive Blogs• Internet provides platform for

• Dissatisfied consumers

• Satisfied consumers

• Interactive allows two-way communication

• Higher level of risk

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F I G U R E 9 . 7

Types of Interactive Blogs

• Brand blog

• Individuals sponsored by a brand

• Individual speaking about a brand

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Company-Sponsored Blogs

• Benefits

• Reassure shoppers

• Glimpse of how firm deals with customers

• Release company information

• Customers can voice opinions

• Company controls site

• Difficult to solicit honest opinions

• Employees may be more sensitive to negative comments

Copyright ©2016 Pearson Education, Inc. 9-30

Personal Blogs• Sponsored by brands

• New FTC regulations

• Limited freedom since blog is sponsored

• Visitors’ comments may be tempered

• Individuals speak about brands• No financial connection

• Visitors feel more comfortable in commenting

• Brands can learn

• Brands can post comments or questions

Copyright ©2016 Pearson Education, Inc. 9-31

Consumer-Generated Reviews

• Amazon.com – leader

• Best Buy – online reviews of brands

• Provide important information

• Challenge – managing reviews

Copyright ©2016 Pearson Education, Inc. 9-32

Viral Marketing• Message passed from one consumer to another

• E-mail

• Blogs

• Form of advocacy or word-of-mouth endorsement

• Viral marketing messages• Advertisements

• Hyperlinked promotions

• Online newsletters

• Streaming videos

• Games

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Copyright ©2016 Pearson Education, Inc. 9-33

• Focus on the product or business

• Determine why individuals would want to

share the message

• Offer an incentive

• Make it personal

• Track the results and analyze the data

F I G U R E 9 . 8

Keys to Successful Viral Marketing

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F I G U R E 9 . 9

Why Consumers Follow Brands

• Keep up with activities

• Learn about products or services

• Sweepstakes or promotion

• Provide feedback

• Join community of fans

• Make purchases

• To complain

Source: Based on Lenna Garibian, “Digital Influence: Blogs Beat Social Networks for Driving Purchases,” MarketingProfs,

www.marketingprofs.com/charts/print/2013/10336, March 18, 2013.

Copyright ©2016 Pearson Education, Inc. 9-35

F I G U R E 9 . 10

Internet Sites Most Likely to Influence Purchases

• Retail sites (56%)

• Brand sites (34%)

• Blogs (31.1%)

• Facebook (30.8%)

• Groups/Forums (28%)

• YouTube (27%)

• LinkedIn (27%)

• Google+ (20%)

• Online magazines (20%)

• Pinterest (12%)

• Twitter (8%)

• Instagram (3%)

Source: Based on Lenna Garibian, “Digital Influence: Blogs Beat Social Networks for Driving Purchases,” MarketingProfs,

www.marketingprofs.com/charts/print/2013/10336, March 18, 2013.

Copyright ©2016 Pearson Education, Inc. 9-36

F I G U R E 9 . 11

Social Media Metrics

• Brand buzz (total mentions)

• Reach (number of fans)

• Facebook likes

• Twitter tweets and retweets

• Traffic from social media

• Clickthrough rate to website

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Measuring Facebook ROI

• Growth (number of likes, over time)

• Engagement (number of likes, comments, shares)

• Total reach (number of people who viewed content)

• Popular posts (posts with highest engagement)

• Budget spent

• Leads (number generated)

• Sales (sales closed, number and amount)

Based on Kathi Kruse, “7 Ways to Measure Facebook’s ROI,” www.ragan.com/Main/Articles/46722, May 22, 2103.

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International Implications

• Social media worldwide

• Most Facebook users outside U.S.

• Language differences

• Social norms

• Technological issues