Class Leadership AssignmentSocial Media Market Research Chiara Regalia & Grant Thibault October 22, 2012 1
What is market research?Overview Traditional 3 D’s Advantages Challenges Key Takeaways• The pursuit to articulate the voice of theconsumer• Two main types of market research arequalitative and quantitative: Qualitative Quantitative Examples: • Focus groups / • Questionnaires brainstorming • Includes a wide array of • In-depth interviews statistical techniques such • Ethnographies as conjoint, segmentation, max -diff, etc. 2
Impact of social media on market researchOverview Traditional 3 D’s Advantages Challenges Key Takeaways • Social media has impacted market research in two ways: 1) Complementing traditional research techniques 2) Creating the need to conduct new types of market research on social media channels In either case, social media has shifted the research technique from asking to listening 3
Social media complements traditional market researchOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Complementary research techniques include: Traditional Social Media Social Media Technique Complements Sources • Focus group • Online focus groups, • Google+ hangouts, Qualitative crowdsourcing Facebook, mobile apps • In-depth interviews • Online interviews • Google+ hangouts, online chats • Ethnographies • Netnographies • Facebook, brand forums, Twitter, etc. • Questionnaire • Online polls • Facebook, LinkedIn Quantitative • Sourcing sample from • Surveymonkey, Zoomerang social media for larger surveys 4
Crowdsourcing: Mountain Dew DewmocracyOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Original Dewmocracy concept originated in2007, asking consumers to develop a new lineof Mountain Dew, including flavour, colour,name, and graphics• Resulted in Voltage, a blue-coloured raspberrycitrus drink charged with ginseng• In 2009, Dewmocracy returned with a new twist - fans of the brand used social mediato tell Mountain Dew why they should be the ones to come up with a new flavour• Fifty fans were selected and sent test kits to come up with their own flavour;Mountain Dew selected the top three, dividing participants into three ‘Flavour Nations’• The Flavour Nations competed head-to-head in the retail environment, with eachnation responsible for all aspects of the product launch including naming, design,selecting an ad agency, and coming up with a digital advertising plan• Ultimately, White Out beat Distortion and Typhoon in a fan vote, and can still be foundon store shelves today 5
Researching the social media marketOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Depending on budget and the quality of information you want to gather,there are three types of research you can conduct on a brand’s social mediapresence: The 3 D’s of Social Media Market Research Do-It-Yourself Devices Dedicated Firms Low Investment Level High 6
Do-It-YourselfOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Social media has empowered brands andbusinesses to conduct their own market research • Free, vast panels of “respondents” • User-generated content readily available• Qualitative environment scans • Netnographies Pictured: Do you like to do it yourself?• Quick metric analysis • Facebook ‘likes’ • Twitter followers • Retweets • YouTube subscribers Do-It-Yourself Devices Dedicated Firms Low Investment Level High 7
DevicesOverview Traditional 3 D’s Advantages Challenges Key Takeaways• A number of companies have developed onlineself-serve tools that brands can use to measure theirown social media presence • HootSuite • Sprout Social • VerticalResponse Source: Sprout Social• Typically low cost ($20-$100 / month) or even free• Features include one-stop social media management, dashboards, social media activity& growth, follower demographics, top performing posts, and customer targeting• Integrate with Google Analytics to look at key metrics (website traffic, purchaseconversion, reach, page views, time on page, etc.) Do-It-Yourself Devices Dedicated Firms Low Investment Level High 8
Dedicated FirmsOverview Traditional 3 D’s Advantages Challenges Key Takeaways• There are also a number of companies who will useproprietary technology to measure, analyze, andinterpret a brand’s social media presence • Crimson Hexagon • Salesforce (Radian6) • Converseon Source: Crimson Hexagon• Costly service, typically custom-priced depending on scope• Features include much more in-depth analysis as well as acting as consultants togenerate the insight from this analysis • Sentiment analysis (sentiment as well as the subject of that sentiment) • Key influencer identification • Geo-tagging / geographic result breakdown Do-It-Yourself Devices Dedicated Firms Low Investment Level High 9
Advantages of social media market researchOverview Traditional 3 D’s Advantages Challenges Key Takeaways Traditional Social Media Market Research Market Research Panels • Costly, limited • Free, nearly unlimited • Questionnaires and focus • Vast quantities of user- Knowledge Limitation groups have imposed time generated content to access limits Timeframe • Snapshot of a point in time • Ongoing in real time • Limited to what you ask • Sift through user content to Insights respondents identify unmet needs and other hidden insights • Limited to qualitative • Rich user-generated content Verbatims research or open-ended questions Cost • Typically costly • Typically little to no cost 10
Challenges of social media market researchOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Difficulty identifying content creators demographically• Repeated postings by one/few social media users canskew results• Data quality and verification issues• Data is largely qualitative and could me miscodedduring data collection• Skew towards demographics that favour social media(generally younger and female)• Ethical issues covertly collecting and analyzing data 11
Key takeawaysOverview Traditional 3 D’s Advantages Challenges Key Takeaways• Social media has impacted market research in two ways:1) Complementing traditional research techniques • Access to vast data and interactive platforms at no cost2) Creating the need to research and measure social media itself • 3 D’s of social media market research depending on the level of investment• Social media has resulted in some key advantages for market research based on the vast, rich, and free data it provides• However, the unstructured nature of social media results in some challenges, particularly around data quality and ethics 12
Works citedOverview Traditional 3 D’s Advantages Challenges Key TakeawaysClifford, S. (2012, July 30). Facebook, Twitter and Foursquare as Corporate Focus Groups. Technology Section.Retrieved October 18, 2012, from http://www.nytimes.com/2012/07/31/technology/facebook-twitter-and-foursquare-as-corporate-focus-groups.html?_r=1Cooke, M. (2009). Social media and market research: We are becoming a listening economy and, while the future ofmarket research is bright, it will be different. International Journal of Market Research, 51(4), 550. Retrieved fromhttp://search.proquest.com.ezproxy.library.yorku.ca/business/docview/214802034/139DA5ABD1844CADF38/2?accountid=15182Emerson, M. F. (2012, August 3). Using Social Media to Test Your Idea Before You Try to Sell It. Small Business Blog -Youre the Boss Blog. Retrieved October 18, 2012, from http://boss.blogs.nytimes.com/2012/08/03/using-social-media-to-test-your-idea-before-you-try-to-sell-it/ForSight™ Data Visualization Reveals Insights in Online Conversations. (n.d.).Social Media Monitoring Analysis andAnalytics | Crimson Hexagon. Retrieved October 18, 2012, from http://www.crimsonhexagon.com/data-visualization/Grove, J. V. (2010, April 19). Mountain Dew Releases 3 Fan-Created Flavors.Social Media. Retrieved October 17,2012, from mashable.com/2010/04/19/dewmocracy-2-flavor-nations/Patino, A., Pitta, D. A., & Quinones, R. (2012). Social medias emerging importance in market research. The Journal ofConsumer Marketing, 29(3), 233-237. doi: http://dx.doi.org/10.1108/07363761211221800Smith, A. (2012, April 20). Three Amazing Crowdsourcing Campaigns.Social Media Today. Retrieved October 15,2012, from socialmediatoday.com/alex-smith/492666/three-amazing-crowdsourcing-campaignsSomosi, A. (2012, June 15). 6 Ways Social Media is Revolutionizing Marketing Research. The Social Marketer.Retrieved October 18, 2012, from http://nmincite.com/6-ways-social-media-is-revolutionizing-marketing-research/West, A. (2012, September 7). The Top 5 Social Media Management Tools for Small Business. Business & FinanceSoftware. Retrieved October 18, 2012, from http://www.pcworld.com/article/260530/the_top_5_social_media_ 13management_tools_for_small_business.html
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