Social Media Webinar 090109 Final

CMOWerks®

Social Media and the Lost Art of Marketing Principles

September 1st, 2009

www.352media.comCMOWerks.com

CMOWerks®

Every one seems to be rushing to create ‘social media’ campaigns! But

what ever happened to the basic principles of marketing which used to

guide messaging and media decisions?

• Jeff Cohen is President of CMOWerks™, an Atlanta based strategic marketing consultancy that combines

classic Packaged Goods discipline and experience in consumer goods, durable products and consumer healthcare

with the latest thinking in the ever changing on-line marketing and social media arenas. Jeff will show you how to

use ‘tried and true’ marketing principles in the development of your on-line and social media marketing efforts.

• Peter VanRysdam is CMO of 352 Media , a full-service interactive marketing firm headquartered in Gainesville,

FL. Peter has been with 352 Media since it was founded in 1999, and helped the company quickly grow into a

significant player in the Web Design and Development market by landing several of the company’s larger

accounts including American Express, Porsche, and Microsoft. Peter manages all aspects of the company’s

marketing efforts including everything from SEO and Social to viral campaigns to 352’s own Web site.


CMOWerks®

Basic Principles of Marketing Revisited

• 5 P’s of Marketing

• Purchase Funnel


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4 P’s of Traditional Marketing (The Marketing Mix)


Product - The physical product

or service, including

packaging, warranty, etc

Price - Accounts for profit margins, competitor pricing

Promotion – Communication

and selling through

advertising, PR, etc.

Place(ment) – Distribution

channels, market coverage, logistics

People - Customer service,

appearance, attitude

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Stages of Consumer Involvement

Objectives Strategic Tactics Measures

Awareness “Breakthrough to Target Prospect

Create “ Brand Awareness”

Brand Recognition

Interest “Engage Prospect”

Provide Relevant Information Purchase

Intent

Consideration

“Drive Purchase

Consideration”

Offer “Purchase “Incentives

Purchase Considerati

on

Purchase “Deliver the Purchase”

4P’s: Product, Price,Promotion, Place

Purchase Transaction

Loyalty“Motivate

Repeat Purchase”

Provide Repeat Purchase Incentive

Repeat Purchase

Overview of Traditional Consumer Products Purchase Funnel

CMOWerks®


Top Half of Purchase Funnel: Engage the Prospect



Awareness “Breakthrough to Target Prospect

Create “ Brand Awareness”

Brand Recognitio

n

Interest “Engage Prospect”

Provide Relevant Information

Purchase Intent

• Goal of Top Half of the Purchase Funnel is to engage your primary Target.

• Target needs clear and precise definition: demographic, psychographic, geographic.

• Need to thoroughly understand what motivates the target to fully engage them.

CMOWerks®


Bottom Half of Purchase Funnel: Create a Customer for LifeStages of

Consumer Involvement


Consideration

“Drive Purchase

Consideration”

Offer “Purchase “Incentives

Purchase Consideratio

n

Purchase “Deliver the Purchase”

4P’s: Product, Price,Promotion, Place

Purchase Transaction

Loyalty“Motivate

Repeat Purchase”

Provide Repeat Purchase Incentive

Repeat Purchase

• Information motives the prospect through a series of actions:

• First, Purchase Consideration: does the product or service meet my needs/value?

• Second, completing the purchase transaction.

• Third, creating a satisfied, loyal customer and influential to others in your market.

CMOWerks®

5 P’s Related to Social Marketing


Product - Is it engaging and buzzworthy?

Price - Value of the product

community is now a factor

Promotion – Product itself

drives promotion from within the

community

Place(ment) – Where does the

product fit in your life?

People - The customer is the new medium.

Value of a new, happy customer is higher than ever!

CMOWerks®

The “New” 5 P’s of Social Marketing

Source: http://www.fastcompany.com/

blog/lon-safko/ten-commandments-social-

media/five-p-s-social-media-where-do-you-start


Profiles – Individual or

groups

Propagate – Bios, avatars,

linking platforms

Produce – Fresh, engaging content

Participate – Stop talking, start

listening

Progress – Measure results

(comments, views, followers, friends, retweets, etc.) and adapt

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“Participate” done wrong:


Bad ratio, low overall considering the market.

Really? 30 Tweets since May 2007?

Last post: June 17th (of this year at least)

Engaging an influencer = good. David

Archuleta = bad.

Textbook examples of one-

sided conversations.

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“Participate” done wrong:


Another missed customer service opportunity.

And another…

…and another.

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“Participate” done right:


Pushing the other

channels.

That’s more like

it!

Fresh content.

Actually responding to

comments about the company!

Admitting you’re a person, not a

company!

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Comment from someone with 13k followers at 7:52pm.

Reply from SW at 8:57pm.

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Comment from someone with 50k followers at

11:55am.

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Omni Hotels respond in under a half an hour

His follow-up soon after.

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Top of Funnel using Online Marketing and Social MediaStages of Consumer Involvement

Strategic Elements Tactics & Execution Measures

AwarenessMake your site easy

to find and fun to explore; use Social Media to drive site

traffic

• Compelling, easy to navigate site• Prospect information capture• Prospect search optimization• Easy way to come back to site

• Site Visits/CTR• Social Media tracking• Prospect information capture

Interest Build Prospect’s

Knowledge of Your Product, Service

and Company

• Reference points via Social Media• Testimonials via Social Media• Value Proposition clear• Allow prospect to see selves using product or service

• Heavy users to site• Social Media heavy users• 3P related downloads• Direct contacts

• Awareness Building through Easy Site Navigation, Search Optimization.

• Enable Target Prospect to come back to your site easily.

• Promote your value proposition in appropriate social media.

• Use Social Media to build credibility and provide reference points for your offer.

• Enable your prospect to ‘see themselves’ with your product or service.

• Clearly communicate your value proposition: what do you get for the money?

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Avoiding Marketing Myopia (shortsightedness):

• “The vision of most businesses is too constricted by the narrow understanding of what business they are in.”

– Theodore Levitt, Harvard Business Review

1960


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Marketing Myopia Examples:

• Railroads fall from dominance by not positioning themselves as transportation companies

• Oil companies rebranding as energy companies

• Today’s Music industry, Newspapers?


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Social Media Myopia:

• “Social Media Myopia” applies to promotion and placement

• What new channels are available to distribute my brand (not just my product)?

• Don’t treat the new channels like the old – tailor your message

• Don’t simply copy social media success stories – help the medium evolve


CMOWerks®

Social Media Myopia & Evolving Communication Mediums:

Source: http://www.baekdal.com/articles/management/market-of-information/


CMOWerks®

Dell Avoids Myopia:

• Dell starts as “PC’s Limited,” a computer OEM w/ print ads

• Evolved to “Dell Inc,” a techcompany offering TV’s, etc

• Expands to retail sector • Offers time sensitive specials,

ideal for twitter users • Recently eclipsed $3m in

sales directly attributed to Twitter promotions

• Over 600,000 followers, ranking in the top 100 overall


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Stages of Consumer Involvement Strategic Elements Tactics & Execution Measures

Consideration Engage in active dialogue with

Qualified Prospect

• Build 1:1 relationship with direct dialogue• Personalize value proposition• Engage HH influencers• Personalize offers

• Depth of contact • Quick Survey of Purchase intent• Response to offers

Purchase Create a ‘flawless’ purchase

experience

• Easy check out process• Info Security Guarantee• Easy return policy• High value delivery for $

• Shopping cart abandon rate• Payment abandon rate• Purchase Transaction

Loyalty Gain Loyal Customers for life

• Customer SatisfactionSurvey 24 hrs post purchase• Next Purchase Incentive with 30-60 day tail• Friend Referrals bonus

• Customer Satisfaction measures on product, purchase experience, delivery, likelihood to repurchase

• Build Consideration by offering ‘live’ engagement 1 to1.

• Begin to personalize the value proposition based on information about the prospect.

• Make the Purchase Process Flawless! And Returns Hassle Free.

• Guard Identity and Information – Guaranteed.

• Satisfaction Survey 24 hours; Loyalty Offer 30- 60 days.

Bottom of Funnel using Online Marketing and Social Media

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Relationship Marketing:

• Relationship marketing emphasizes customer retention and satisfaction, rather than a dominant focus on point-of-sale transactions.

Source: http://en.wikipedia.org/wiki/Relationship_marketing


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Relationship Marketing:

• Social Media platforms have expanded relationship marketing’s reach vs. cost

• Proven methods (face to face) shouldn’t be abandoned (until they’re no longer proven)

• Mistakes are more damning than ever


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Relationship Marketing Done Wrong:

• Mistakes are tolerable, silence is not


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Relationship Marketing Done Wrong:

• Mistakes are tolerable, silence is not


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Relationship Marketing Mistakes:

• Habitat’s Response:• Removed offending posts• Reposted specials and offers• Waited over 48 hours to respond to the backlash

• Suggested Remedies:• Apologize publically immediately• Apologize to individuals• Offer discount


CMOWerks®

Relationship Marketing Done Right:

• Adobe’s “Real or Fake” Photoshop Campaign- (Increased Facebook fans by 6,000)

• Users guessed whether photos were edited or not (5 photos posted per week)

• Edited photos then included how-to tutorials

• Engaging and educating rather than stale “push” marketing campaign

• 6% of players clicked through to “buy now,” while another 6% clicked “share”


CMOWerks®



Strategic Elements Tactics & Execution Measures

AwarenessMake your site easy to find and

fun to explore; use Social Media to drive site traffic

• Compelling, easy to navigate site• Prospect information capture• Prospect search optimization• Easy way to come back to site

• Site Visits/CTR• Social Media tracking• Prospect information capture

Interest Build Prospect’s Knowledge of

Your Product, Service and Company

• Reference points via Social Media• Testimonials via Social Media• Value Proposition clear• Allow prospect to see selves using product or service

• Heavy users to site• Social Media heavy users• 3P related downloads• Direct contacts

ConsiderationEngage in active dialogue with Qualified Prospect

• Build 1:1 relationship with direct dialogue• Personalize value proposition• Engage HH influencers• Personalize offers

• Depth of contact • Quick Survey of Purchase intent• Response to offers

PurchaseCreate a ‘flawless’

purchase experience• Easy check out process• Info Security Guarantee• Easy return policy• High value delivery for $

• Shopping cart abandon rate• Payment abandon rate• Purchase Transaction

Loyalty Gain Loyal Customers for life

• Customer SatisfactionSurvey 24 hrs post purchase• Next Purchase Incentive with 30-60 day tail• Friend Referrals bonus

• Customer Satisfaction measures on product, purchase experience, delivery, likelihood to repurchase

Purchase Funnel Principles with Online and Social Media

CMOWerks®

In SummaryTried and True Principles for Social

MediaTarget Awareness = Participate

Engage/Consider = Avoiding MyopiaCustomer Loyalty = Relationship


CMOWerks®

Thank you for your time!

Questions? Use the questions tab or post to twitter with the tag #352Webinar


Documents

Social Media Webinar 090109 Final