Social Media as Marketing Tools: Valuable for SMEs?

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Discusses the role of social media as marketing tools and the significance of these for SMEs

Discusses the role of social media as marketing tools and the significance of these for SMEs

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  • Visited Constantinides' presentation last week . Presentation combines concise overview and practical information, see for instance sheet 29: passive and active approach of social media.
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  • 1. Dr. Efthymios Constantinides Assistant Professor School of Management and Governance / NIKOS Institute University of Twente (NL) [email_address] BLOG: http:// Web 2.0 and SME’s December 5, 2007
  • 2. Web 2.0 and SME’s
    • Based on the research paper ”Connecting SMEs to the New Consumer: The Web 2.0 as Marketing Tool”
    • Under review
  • 3. Content
    • What is Web 2.0 /Social Media
    • Web 2.0: Main Principles
    • Importance of Web 2.0 as marketing parameter
    • Corporate approaches
    • SMEs (potential) approaches
  • 4. Recent Internet: 2003 – today
    • 2 main developments:
    • - Broadband
    • - Web 2.0
  • 5. What is Web 2.0 /Social Media?
    • Web 2.0 is a collection of open source , interactive and user-controlled online applications expanding the experiences , knowledge and market power of the consumer/customer as participant in business and social processes.
    • Web 2.0 applications support the creation of informal users’ networks facilitating the flow of ideas and knowledge by allowing the efficient generation, dissemination, sharing and editing/refining of informational content .
    • (Constantinides and Fountain, 2007)
  • 6. Web 2.0 main principles
    • 1. Focus on service-based, simple and open-source solutions in the form of online applications
    • 2. Continuous and incremental application development requiring the participation and interaction of users in new ways: not only “consuming” but also contributing, reviewing and editing content.
    • 3. New service-based business models and new opportunities for reaching small individual customers with low-volume products .
  • 7.  
  • 8. Web 2.0 Dimensions Application types Social Effects Enabling Technologies Blogs Social Networks (Content) Communities Forums/Bulletin Boards Content Aggregators Empowerment Participation Openness Networking Conversation Community Democratization / User control Open Source RSS Wikis* Widgets** Mash-ups*** AJAX**** * Wikis: systems for collaborative publishing ** Widget: A generic term for the part of a Graphical User Interface that allows the user to interface with the application and operating system *** Mash-up: Aggregators of content from different online sources to create a new service ****AJAX: Asynchronous JavaScript and XML
  • 9. Application types
    • 1. Blogs: Short for Web logs: online journals, often combined with Podcasts Examples: http:// , ,
    • 2. Social Networks: allow users to build personal websites accessible to other users for exchange of personal content and communication. Examples: http:// , http:// , , http:// /
    • 3. (Content) Communities: Web sites organizing and sharing particular types of content. Examples are applications of Video sharing: http:// , , http:// , Photos sharing: http:// , Social Bookmarking , http:// and publicly edited Encyclopedias ,
    • 4. Forums / Bulleting Boards: sites for exchanging ideas and information usually around special interests Examples: , , http:// .
    • 5. Content aggregators: applications allowing users to fully customize the web content they wish to access. Examples http:// / , http:// , http:// /
  • 10.
    • Web 2.0 as Marketing parameter / as part of the (online) marketing activity
  • 11. The (E-)Marketing Pyramid Product/ service Marketing/ E-Marketing Organization Web 1.0:Web site Web 2.0 Social Media Level 1 Level 3 Level 2 Level 4
  • 12. Influence of Web 2.0 on Consumer Behavior
  • 13. Social Media: The new consumer influencers?
    • 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)
  • 14. Traditional Marketing Marketing in Web 1.0 environment Marketing in Web 2.0 environment
  • 15. Corporate Options
    • Option 1
    • The Passive Approach/Listening-In
    • Option 2
    • The Active approach
    • PR / Direct Marketing
    • Influence the New Influencers
    • Personalize Customer Experience
    • Tapping Customer Creativity
  • 16. Corporate Options
    • Option 1
    • The Passive approach/Listening-In:
    • Using the Web 2.0 as intelligence source i.e. as source of customer voice and market information.
  • 17. Sources
    • Who talks about us online?
    • TIMES Online List with the 50 best business blogs, the Corporate Responsibility Group or Biz/ed
    • Nielsen Buzz Metrics
    • Technorati (, blog search engines like BlogPulse ( or the “index aggregator” TalkDigger ( )
  • 18. Corporate Options
    • Option 2
    • The Active Approach:
    • U sing Web 2.0 applications as PR, Direct Marketing and Customer Influence tool as well as means for personalizing the customer experience and tapping customer creativity.
    • 4 alternative ways
  • 19. Alt 1
    • Use Web 2.0 applications as PR and (Direct) Marketing tools seeking communication, interaction and customer feed back
    • Management Blogs: Jonathan Swartz, CEO of Sun Microsystems, Steve Jobs, CEO of Apple Computers and McDonalds Vice President Bob Langert etc
    • Employee blogs
    • Use Social Media as advertising channels
  • 20. Alt 2
    • Find the (online) New Influencers and engage them as publicity channels: Identify, reach and inform them
    • Review, discuss, comment or recommend your product
    • How? Technorati Who are the New Influencers ?
  • 21. Alt 3
    • Personalize customer experience (UGC)
    • http://coca-
    • http:// /time/
    • Hearst Magazines Digital Media, the online unit of Hearst Magazines, has acquired, Inc., a top entertainment/community network for teens and young adults
    • The Sun Online 2006 figures: is claiming 56 million new readers to its website, 1.2 billion page impressions and around 160 million individual readers http:// /
    • IKEA iederen = designer
  • 22. Alt 4
    • Engage the customer as co-developer.
    • I. Advertising: SONY, Frito-Lay’s, Sunkist and other corporations are partnering with talented amateurs who create viral films or TV commercials for them.
    • II. Product customization: Kleenex (, Heinz ( and M&M ( allowing customers to customize product packaging/labels. Pepsi Co. invites fans to design their soft drink cans in the Design Our Pepsi Can Contest ( ) with the best idea adopted as the new look of the product in regular intervals and NIKE offers similar tools to its customers allowing customizing the sport articles they order online ( http://
  • 23. SME’s and Web 2.0 / social Media
  • 24.  
  • 25.  
  • 26. How SMEs could profit from the Web 2.0 / Social Media movement?
    • Deal effectively with the first 3 steps of the E-Marketing Pyramid
    • Approach Web 2.0 / Social Media as a Strategic opportunity
    • Review options (based on the large firm experience)
    • Engage Web 2.0 as passive and/or active Marketing tools
  • 27. Active Passive X XXX Content Aggregators XXX X XXX Forums / Bulletin Boards XX XX XX X Social Networks XXX XXX X XXX (Content) Communities XXX XXX XXX Web logs APPLICATION TYPE Tapping customer creativity Personalizing customer Experience Reaching the New Influencers PR and Direct Marketing Listening In MARKETING OBJECTIVE Web 2.0 Applications as SME Marketing Tools
  • 28. Thank you