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THE HORIZONTAL
REVOLUTION
Chapter 11-1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
 What are social media?
 How does the Social Media Value Chain explain the
relationships among the In...
Chapter Objectives (cont.)
 What are the major media channels associated
with social media?
 What is social software?
 ...
You’re a DIGITAL NATIVE!
You are constantly ‘wired’ in the networked,
always-on world.
4-1
Copyright © 2013 Pearson Educat...
Web 2.0
The interactive social system that is available to
users 24 hours a day, 7 days a week.
5-1
Copyright © 2013 Pears...
 Horizontal Revolution: Today information flows
ACROSS people, not just from big companies to
people
 Social Media: The ...
Living a Social (Media) Life
 The Internet and its related technologies make what
we know today as social media possible ...
If Facebook were a country, it would be the third
most populated in the world!
8-1
Copyright © 2013 Pearson Education, Inc...
Social Behavior and the Philosophy
of Participation
 Culture of Participation: The ability to freely
interact with other ...
Social Media Zones
 Media: a means of communication
 Mass Media: means of communication that can reach
a large number of...
 Communication travels using a medium (or
channel) such as word-of-mouth, television, radio,
newspaper, magazine, signage...
The 4 Zones of Social Media Channels
12-1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice
Hall
Zone 1: Social Communities
Social communities: channels of social media
focusing on relationships and the common
activitie...
Social Networking Sites
Online hosts that enable site members to construct
and maintain profiles
 Social identity – profi...
Social Media Zones and Exemplar
Vehicles
Forums
The oldest venue of social media. Essentially
forums are interactive, online versions of
community bulletin boards....
Zone 2: Social Publishing
Social publishing: sites which aid in the dissemination
of content to an audience.
The channels ...
Blogs
Websites that host regularly updated online content
Microsharing Sites
Work much like blogs except there is a limit ...
Zone 3: Social Entertainment
Social entertainment: encompasses channels and
vehicles that offer opportunities for play and...
Zone 4: Social Commerce
Social commerce: encompasses channels and vehicles
that offer opportunities for play and enjoyment...
Web 2.0: The Defining
Characteristics of Social Media
 The Web Is the Platform
 User Participation, User-Generated Conte...
The Web “IS” the Platform
Cloud computing. The general term for
anything that involves delivering hosted services
online.
...
User-Defined Content
 Taxonomies are classifications that experts create.
 Folksonomies are sets of labels (tags) indivi...
Network Effects and Scalability
 Network effects. The value added for all users by
each individual user.
 Scalability. T...
Perpetual Beta and Reputation
Economy
 Perpetual Beta. Developers are able to introduce
new features in products even if ...
The Infrastructure of Social Media
 Social Software are computer programs that enable
users to interact, create, and shar...
Show Me the Money!
 Business Models and Monetization
 Psychic Income
27-1
Copyright © 2013 Pearson Education, Inc. publi...
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offe...
The 5th P of Marketing
Today, we need to add the fifth P to the Marketing
Mix.
Participation
29-1
Copyright © 2013 Pearson...
Marketing Communication: From
Top-Down to Bottom-Up
A micromarket is a group of consumers once
considered too small and in...
Social Media Achieves Marketing
Objectives
 Promotion and Branding
 Customer Relationship Management and Service
Recover...
Social Media Achieves Marketing
Objectives (cont.)
Social Media Achieves Marketing
Objectives
 Promotion and Branding
 Extend and leverage the brand’s media coverage
 Inf...
Core Types of Media
 Paid Media: Media for which you assessed
monetary fees
 Owned Media: Media channels the brand contr...
The Role of Social Media in the
Consumer Purchase Process
Increase Awareness
Influence Desire
Encourage Trial
Facilitate P...
Social Media Achieves Marketing
Objectives
 Customer Relationship Management (CRM) and
Service Recovery
 Social CRM uses...
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SMM 01

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  • The term Digital Native originated in a 2001 article by Marc Prensky entitled “Digital Natives, Digital Immigrants. ”He tried to explain a new type of student who was starting to enter educational institutions. These students were born in an era in which digital technology had always existed. You and your fellow Digital Natives grew up “wired” in a highly networked, always-on world.
  • Widespread access to devices like personal computers, digital video and audio recorders, webcams, and smartphones ensures that consumers who live in virtually any part of the world can create and share content.
  • Synchronous interactions: Facebook is an example as is texting back-and-forth with a friend. Asynchronous interactions: Email is a good example; you email a friend today and get a response tomorrow. Also, e-retailing, photo sharing and games are examples.
  • A community that got its start as a social network, Facebook offers functionality far beyond basic relationship-building. It competes with social channels ranging from video and photo sharing to blogs to e-commerce sites.
  • Mass media (means of communication that can reach a large number of individuals) such as broadcast, print, and digital channels. Personal media (channels capable of two-way communications on a small scale) such as email, surface mail, telephone, and face-to-face conversations.
  • For instance, within the medium of television, marketers may choose How I Met Your Mother as one vehicle to broadcast their message. Cosmopolitan and BusinessWeek are vehicles for the magazine medium. Social media also have a set of online channels with numerous vehicles within each channel.
  • Social communities feature two-way and multi-way communication, conversation, collaboration, and the sharing of experiences and resources.
  • Connections , who might be called friends, followers, or fans, communicate and share content in a variety of ways including direct messages (akin to email within the social networking site), wall posts (posts to a profile, visible to others), and chat or instant messaging (IM) options. Thus, SNS offers both synchronous and asynchronous forms of communication.
  • Forums focus entirely on discussions held among members. Members establish profiles as they do in SNS and participate by posing content including questions, opinions, news, and photos.
  • Here are some prominent vehicles within different types of media: • Video sharing : YouTube, Vimeo, and Ustream • Photo sharing: Flickr, Snapfish, and Photobucket • Music and audio sharing: iTunes, Live365, and Podcast Alley • Presentations and documents: Scribd, SlideShare, SplashCast, BrightTalk, and SlideBoom • Social bookmarking services (i.e., sharing links to other sites): Diigo and Digg.
  • Social commerce refers to the use of social media to assist in the online buying and selling of products and services. Social commerce leverages social shopping behaviors when online shoppers interact and collaborate during the shopping experience.
  • These are the most important distinguishing characteristics of Web 2.0 that will be examined now. Crowdsourcing means to harness the collective knowledge of a crowd to solve problems and complete tasks . Internet users search for information with Britannica Online ; Internet users create, publish, rate, edit, and share information with Wikipedia. A small army of zealous volunteers serve as “editors” who verify others’ entries—and they do so for personal satisfaction  only. A single person would not have the resources or knowledge to publish an exhaustive, stellar online encyclopedia, but a mass of individual experts can.  
  • The first feature of Web 2.0 relates to the value of social software and multiple Internet-enabled devices for social access. The focus is on delivery of service over software—this means that we don’t necessarily have to purchase a software program via CD or download and physically install it on each of your computers.
  • In Web 2.0, each additional user adds value for all users. Economists refer to this as a network effect. Click on the logo or the underlined text in the slide to view examples.
  • We utilize hardware devices like tablet PCs, iPads, smartphones, Internet-connected game consoles, and traditional laptops and desktops for access, but we also rely upon other devices in the creation of social content. In the world of social media, there is one key attribute of a device that is extremely valuable—portability.
  • A revenue stream is a source of income detailed in the business model. Psychic income is perceived value that is not expressed in monetary form.
  • Social media marketing is the utilization of social media technologies, channels, and software to create, communicate, deliver, and exchange offerings that have value for an organization’s stakeholders.
  • Social media marketing is the utilization of social media technologies, channels, and software to create, communicate, deliver, and exchange offerings that have value for an organization’s stakeholders.
  • In the i nterruption disruption model the source of a communication delivers messages to audiences whether they want to receive them or not, and regardless of whether these messages are directly relevant to their unique needs.
  • Each will be discussed following.
  • These are the two overarching objectives relevant to the use of social media marketing as part of a brand’s promotional mix.
  • Examples of Paid Media include advertising, public relations, and search engine marketing. Examples of Owned Media include corporate websites, e-commerce sites, and corporate blogs. Examples of Earned Media include word or mouth and publicity.
  • Click on the logo or the underlined text in the slide to view examples. Brands can increase awareness with social media marketing by maintaining an active presence in the social spaces where target consumers “live.” That means engaging in social communities and publishing content as well as encouraging word of mouth communication and consumer reviews. It may even include social entertainment. Social media can even be used to support sampling and loyalty programs. Sampling means to offer a free trial of a product; these are usually mailed to consumers ’ homes or distributed in stores or on the street. Social media can be used to recruit interested prospects to qualify for samples. Emergen-C, a health supplement, used this tactic to promote free samples. Whenever a user on Twitter tweeted something like “need energy” or “need to focus” Emergen-C sent a tweet requesting the person’s mailing address. A couple of days later, the tired tweeter received a gift of three samples. Social media venues offer engaging activities for consumers that can ensure they spend more time with the brand, hopefully resulting in higher levels of brand loyalty. Look no farther than social games that offer rewards for the most loyal visitors. That’s just what FourSquare does. Starbucks “mayors” earn one dollar off a cup of coffee when they visit. Tasti D-Lite, a regional ice cream chain, went even further when it developed its social media loyalty program. Customers use TreatCards—which also double as gift cards—to earn points for purchases, and those that opt in to the social media bonuses automatically earn additional points. Twitter and Foursquare accounts are updated each time the card is swiped and points are earned or redeemed. As a customer earns points, he or she can redeem them for free cones.
  • One helpful set of guidelines that some companies use in Service Recovery is known as the LARA framework. • Listen to customer conversations. • Analyze those conversations. • Relate this information to existing information within your enterprise. • Act on those customer conversations.
  • Transcript of "SMM 01"

    1. 1. THE HORIZONTAL REVOLUTION Chapter 11-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    2. 2. Chapter Objectives  What are social media?  How does the Social Media Value Chain explain the relationships among the Internet, social media channels, social software, and the Internet-enabled devices we use for access and participation?  What is Web 2.0? 2-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    3. 3. Chapter Objectives (cont.)  What are the major media channels associated with social media?  What is social software?  Why is social media valuable to marketers?  What marketing objectives can organizations meet when they incorporate social media in their marketing mix?
    4. 4. You’re a DIGITAL NATIVE! You are constantly ‘wired’ in the networked, always-on world. 4-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    5. 5. Web 2.0 The interactive social system that is available to users 24 hours a day, 7 days a week. 5-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    6. 6.  Horizontal Revolution: Today information flows ACROSS people, not just from big companies to people  Social Media: The online means of communication, conveyance, collaboration and cultivation among interconnected people, communities and organizations 6-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    7. 7. Living a Social (Media) Life  The Internet and its related technologies make what we know today as social media possible and prevalent.  Synchronous Interactions: Occur in real time  Asynchronous Interactions: Do not require all participants to immediately respond 7-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    8. 8. If Facebook were a country, it would be the third most populated in the world! 8-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    9. 9. Social Behavior and the Philosophy of Participation  Culture of Participation: The ability to freely interact with other people and companies; open access to venues that allow users to share content. 9-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    10. 10. Social Media Zones  Media: a means of communication  Mass Media: means of communication that can reach a large number of individuals  Personal Media: channels capable of two-way communication on a small scale Social Media crosses the boundaries of mass and personal media 10-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    11. 11.  Communication travels using a medium (or channel) such as word-of-mouth, television, radio, newspaper, magazine, signage, Internet, direct mail, or telephone.  Within each medium, marketers can choose specific vehicles to place a message. 11-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    12. 12. The 4 Zones of Social Media Channels 12-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    13. 13. Zone 1: Social Communities Social communities: channels of social media focusing on relationships and the common activities people participate in with others who share the same interest or identification. Channels in the social community zone include: * Social networking sites (SNS) * Message boards * Forums * Wikis 13-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    14. 14. Social Networking Sites Online hosts that enable site members to construct and maintain profiles  Social identity – profile picture or avatar and basic information.  Social presence – indicating availability, mood, friend list and status.  Connection – friends, followers or fans. 14-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    15. 15. Social Media Zones and Exemplar Vehicles
    16. 16. Forums The oldest venue of social media. Essentially forums are interactive, online versions of community bulletin boards. Wikis Collaborative online workspaces that enable community members to contribute to the creation of a useful and shared resource. 16-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    17. 17. Zone 2: Social Publishing Social publishing: sites which aid in the dissemination of content to an audience. The channels of social publishing include: * Blogs * Microsharing sites * Microblogging sites * Media sharing sites * Social bookmarking * News sites 17-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    18. 18. Blogs Websites that host regularly updated online content Microsharing Sites Work much like blogs except there is a limit to the length of content you can post Host content but also typically feature video, audio, photos, and other presentations rather than text Media Sharing Sites 18-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    19. 19. Zone 3: Social Entertainment Social entertainment: encompasses channels and vehicles that offer opportunities for play and enjoyment. Social entertainment includes: * Social games * Socially enables console games * Alternate reality games * Virtual worlds * Entertainment communities 19-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    20. 20. Zone 4: Social Commerce Social commerce: encompasses channels and vehicles that offer opportunities for play and enjoyment. Social commerce includes: * Reviews and ratings * Deal sites * Deal aggregators * Social shopping markets * Social storefronts 20-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    21. 21. Web 2.0: The Defining Characteristics of Social Media  The Web Is the Platform  User Participation, User-Generated Content, and Crowdsourcing  User-Defined Content  Network Effects  Scalability  Perpetual Beta  Reputation Economy 21-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    22. 22. The Web “IS” the Platform Cloud computing. The general term for anything that involves delivering hosted services online. 22-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    23. 23. User-Defined Content  Taxonomies are classifications that experts create.  Folksonomies are sets of labels (tags) individuals choose in a way that makes sense to them.  Tagging refers to the process social media users undergo to categorize content according to their own folksonomy. 23-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    24. 24. Network Effects and Scalability  Network effects. The value added for all users by each individual user.  Scalability. The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business. 24-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    25. 25. Perpetual Beta and Reputation Economy  Perpetual Beta. Developers are able to introduce new features in products even if testing and refinement are not yet complete. It is continual, on- going development.  Reputation Economy. The value that people exchange is measured in esteem as well as money. 25-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    26. 26. The Infrastructure of Social Media  Social Software are computer programs that enable users to interact, create, and share data online.  Devices are products we use to access the Internet and to participate online.  People interacting online is the only way social media can work. 26-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    27. 27. Show Me the Money!  Business Models and Monetization  Psychic Income 27-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    28. 28. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The marketing mix includes the 4 Ps of Product, Price, Promotion, and Place (distribution). 28-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    29. 29. The 5th P of Marketing Today, we need to add the fifth P to the Marketing Mix. Participation 29-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    30. 30. Marketing Communication: From Top-Down to Bottom-Up A micromarket is a group of consumers once considered too small and inaccessible for marketers to pursue. Niche products appeal to small, specialized groups of people. 30-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    31. 31. Social Media Achieves Marketing Objectives  Promotion and Branding  Customer Relationship Management and Service Recovery  Marketing Research  Retailing and E-commerce 31-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    32. 32. Social Media Achieves Marketing Objectives (cont.)
    33. 33. Social Media Achieves Marketing Objectives  Promotion and Branding  Extend and leverage the brand’s media coverage  Influence the consumer throughout the decision- making process 33-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    34. 34. Core Types of Media  Paid Media: Media for which you assessed monetary fees  Owned Media: Media channels the brand controls  Earned Media: Media channels beyond the control of the company 34-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    35. 35. The Role of Social Media in the Consumer Purchase Process Increase Awareness Influence Desire Encourage Trial Facilitate Purchase Cement Brand Loyalty 35-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
    36. 36. Social Media Achieves Marketing Objectives  Customer Relationship Management (CRM) and Service Recovery  Social CRM uses software to fine tune the offer and build intimacy with the customer  Social recovery is the actions an organization takes to correct mishaps and win back unhappy customers Retailing and E-commerce  Retailing and E-commerce 36-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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