Social Media and the Lost Art of Marketing Principles September 16th, 2009www.352media.com

Social Media and the Lost Art of Marketing PrinciplesEvery 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?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. www.352media.com

Social Media and the Lost Art of Marketing PrinciplesBasic Principles of Marketing Revisited5 P’s of MarketingPurchase Funnel www.352media.com

5 P’s of Marketing

Purchase Funnel

Social Media and the Lost Art of Marketing Principles4 P’s of Traditional Marketing (The Marketing Mix)Product - The physical product or service, including packaging, warranty, etcPrice - Accounts for profit margins, competitor pricingPeople - Customer service, appearance, attitudePromotion – Communication and selling through advertising, PR, etc.Place(ment) – Distribution channels, market coverage, logisticswww.352media.com

Social Media and the Lost Art of Marketing PrinciplesOverview of Traditional Consumer Products Purchase Funnelwww.352media.comCourtesy of CMOWerks.com

Social Media and the Lost Art of Marketing PrinciplesTop Half of Purchase Funnel: Engage the ProspectGoal of Top Half of the Purchase Funnel is to engage your primary Target. Target needs clear and precise definition: demographic, geographic. Need to thoroughly understand what motivates the target to fully engage them.www.352media.comCourtesy of CMOWerks.com

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

Target needs clear and precise definition: demographic, geographic.

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

Social Media and the Lost Art of Marketing PrinciplesBottom Half of Purchase Funnel: Create a Customer for LifeInformation 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.www.352media.comCourtesy of CMOWerks.com

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.

Social Media and the Lost Art of Marketing Principles5 P’s Related to Social MarketingProduct - Is it engaging and buzzworthy?Price - Value of the product community is now a factorPeople - The customer is the new medium. Value of a new, happy customer is higher than ever!Promotion – Product itself drives promotion from within the communityPlace(ment) – Where does the product fit in your life?www.352media.com

Social Media and the Lost Art of Marketing PrinciplesThe “New” 5 P’s of Social MarketingSource: http://www.fastcompany.com/blog/lon-safko/ten-commandments-social-media/five-p-s-social-media-where-do-you-startProfiles – Individual or groupsPropagate – Bios, avatars, linking platformsProgress – Measure results (comments, views, followers, friends, retweets, etc.) and adaptProduce – Fresh, engaging contentParticipate – Stop talking, start listeningwww.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done wrong:Bad ratio, low overall considering the market.Last post: June 17th (of this year at least)Really? 30 Tweets since May 2007?Engaging an influencer = good. David Archuleta = bad.Textbook examples of one-sided conversations.www.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done wrong:Another missed customer service opportunity. And another……and another.www.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done right:Admitting you’re a person, not a company!That’s more like it!Pushing the other channels. Fresh content.Actually responding to comments about the company!www.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done right:Comment from someone with 13k followers at 7:52pm.Reply from SW at 8:57pm.www.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done right:Comment from someone with 50k followers at 11:55am.www.352media.com

Social Media and the Lost Art of Marketing Principles“Participate” done right:Omni Hotels respond in under a half an hourHis follow-up soon after.www.352media.com

Social Media and the Lost Art of Marketing PrinciplesTop of Funnel using Online Marketing and Social Media 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?www.352media.comCourtesy of CMOWerks.com

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?

Social Media and the Lost Art of Marketing PrinciplesAvoiding 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 1960www.352media.com

“The vision of most businesses is too constricted by the narrow understanding of what business they are in.” – Theodore Levitt, Harvard Business Review 1960

Social Media and the Lost Art of Marketing PrinciplesMarketing Myopia Examples:Railroads fall from dominance by not positioning themselves as transportation companiesOil companies rebranding as energy companiesToday’s Music industry, Newspapers?www.352media.com

Railroads fall from dominance by not positioning themselves as transportation companies

Oil companies rebranding as energy companies

Today’s Music industry, Newspapers?

Social Media and the Lost Art of Marketing PrinciplesSocial Media Myopia:“Social Media Myopia” applies to promotion and placementWhat new channels are available to distribute my brand (not just my product)?Don’t treat the new channels like the old – tailor your messageDon’t simply copy social media success stories – help the medium evolvewww.352media.com

“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

Social Media and the Lost Art of Marketing PrinciplesSocial Media Myopia & Evolving Communication Mediums:Source: http://www.baekdal.com/articles/management/market-of-information/www.352media.com

Social Media and the Lost Art of Marketing PrinciplesDell Avoids Myopia:Dell starts as “PC’s Limited,” a computer OEM w/ print adsEvolved to “Dell Inc,” a techcompany offering TV’s, etcExpands 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 overallwww.352media.com

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

Social Media and the Lost Art of Marketing PrinciplesBottom of Funnel using Online Marketing and Social Media 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.www.352media.comCourtesy of CMOWerks.com

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.

Social Media and the Lost Art of Marketing PrinciplesRelationship Marketing:Relationship marketingemphasizes customer retention and satisfaction, rather than a dominant focus on point-of-sale transactions.Source: http://en.wikipedia.org/wiki/Relationship_marketingwww.352media.com

Social Media and the Lost Art of Marketing PrinciplesRelationship Marketing:Social Media platforms have expanded relationship marketing’s reach vs. costProven methods (face to face) shouldn’t be abandoned (until they’re no longer proven)Mistakes are more damning than everwww.352media.com

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

Social Media and the Lost Art of Marketing PrinciplesRelationship Marketing Done Wrong:Mistakes are tolerable, silence is notwww.352media.com

Mistakes are tolerable, silence is not

Social Media and the Lost Art of Marketing PrinciplesRelationship Marketing Done Wrong:Mistakes are tolerable, silence is notwww.352media.com

Mistakes are tolerable, silence is not

Social Media and the Lost Art of Marketing PrinciplesRelationship Marketing Mistakes:Habitat’s Response:Removed offending postsReposted specials and offersWaited over 48 hours to respond to the backlashSuggested Remedies:Apologize publically immediatelyApologize to individualsOffer discountwww.352media.com

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

Social Media and the Lost Art of Marketing PrinciplesRelationship 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 campaign6% of players clicked through to “buy now,” while another 6% clicked “share”www.352media.com

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”

Social Media and the Lost Art of Marketing PrinciplesPurchase Funnel Principles with Online and Social Mediawww.352media.comCourtesy of CMOWerks.com

Social Media and the Lost Art of Marketing PrinciplesIn SummaryTried and True Principles for Social MediaTarget Awareness = ParticipateEngage/Consider = Avoiding MyopiaCustomer Loyalty = Relationshipwww.352media.com

Social Media and the Lost Art of Marketing PrinciplesThank you for your time!Questions?www.352media.com