BA104 Chapter 17

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Using Social Media and
Mobile Marketing to
Connect With Consumers
CHAPTER
17
Roger A. Kerin
Steven W. H artley
MARKETING
THE CORE
Eighth Edition

2. ©McGraw-Hill Education.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:
(1 of 2)
1. Define social media and describe how they differ
from traditional advertising media.
1. Identify the four major social media and describe
how brand managers integrate them into marketing
actions.
1. Describe the characteristics of a social media
program, including selecting social media and
choosing social media content.
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:
(2 of 2)
4. Compare the performance measures of social
media linked to costs (inputs) versus revenues
(outputs).
4. Identify the cause of the convergence of the real
and digital worlds and how this will affect the future
of social media.
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MOBILE MOMENTS WILL SOON
INCLUDE A NICE RIDE!
Consumers experience 150 –
200 “mobile moments” each day
(example: social media).
Connected cars.
Mobile apps for special
advertising.
61% of Internet advertising
targets mobile devices.
Messaging combined with
internet bots are
“conversational commerce.”
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©Pozdeyev Vitaly/Shutterstock; ©Hilch/Shutterstock

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UNDERSTANDING SOCIAL MEDIA
WHAT ARE SOCIAL MEDIA? (1 of 2)
Social media
• Social network
• Conversation
How social media came about
• Web 3.0 - personalization
• Blog
• Wiki – shows a single entry
• User-generated content (UGC)
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©Wright Studio/Shutterstock

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UNDERSTANDING SOCIAL MEDIA
WHAT ARE SOCIAL MEDIA? (2 of 2)
Classifying social media:
1. Media richness
• Acoustic, visual, personal contact
2. Self-disclosure
• Achieve favorable image
• Greater self-disclosure likely to increase
influence
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FIGURE 17-1 Social media classified by media
richness and self-disclosure
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UNDERSTANDING SOCIAL MEDIA
COMPARING SOCIAL AND TRADITIONAL MEDIA
Social media complements traditional media
But, there are some differences in:
• Ability to reach both large and niche
audiences
• Expense and access
• Training and number of people involved
• Time to delivery
• Permanence
• Credibility and social authority
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UNDERSTANDING SOCIAL MEDIA
EMERGENCE OF INFLUENCER MARKETING
Influencer marketing
Consumer’s purchases are influenced by
others.
• Influencers on social media based on
number of followers.
• 75% of U.S. companies use influencer
marketing.
• $101 billion on marketing initiatives.
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FIGURE 17-2 How brand managers can use four social
networks to develop marketing actions.
Basis of
Comparison
Social Media
Facebook Twitter LinkedIn YouTube
Male–Female
Breakdown
(U.S.)
47% male, 53% female 48% male, 53% female 56% male, 44% female 50% male, 50% female
Brand Exposure Powerful for gaining
brand exposure
through convenient
user posting of links,
photos, and videos
Consistent placement
of brand messages is
easy with applications
like HootSuite and
TweetCastor.
Sponsored tweets
promote brands.
Free opportunities
exist, like Business
Pages and LinkedIn
Influencer posts. Paid
Sponsored Updates
provide added reach.
Powerful in gaining
attention and
explaining a complex
product, and branding.
Channels unite users
on content and
heighten viewership.
Customer
Communication
Great for people who
like your brand and
want to share their
opinions. Leads all
social networks for this.
Twitter is powerful for
gaining online
customer support.
Engaging one-on-one
is simple and easy to
track.
Half of those using
social media for
customer service use a
LinkedIn Company
Page while 40% do so
with LinkedIn Groups.
YouTube gains user’s
ready attention in
attracting customer
support. Easy to allow
responses to user
comments and ratings.
Traffic to
Website
Is the traffic leader
through rewording
engaging content with
better newsfeed
placement. But its
share of referred visits
is falling.
Referral traffic from
Twitter is growing
faster than any other
social network. Photos
and videos make
tweets even more
clickable.
LinkedIn generates
referrals—though less
than many other social
networks—but can be
valuable for B2B and
business development.
YouTube is an
important source of
traffic. Get traffic back
to user’s site by adding
a hyperlink in the video
description.
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FOUR IMPORTANT SOCIAL NETWORKS:
FACEBOOK (1 of 2)
Facebook
• Adds 7,246 people every 15 minutes.
• Each day, processes 300 million photos, 5.7 billion
likes, and 730 million comments.
• 85% of users live outside of North America.
• 2.5 million advertisers.
Facebook in a brand manager’s strategy:
• Be creative: use links, photos, videos.
• Make it familiar, but with a twist.
• Keep it fresh.
• Learn users’ passions and let them guide content.
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FOUR IMPORTANT SOCIAL NETWORKS:
FACEBOOK (2 of 2)
Mobile marketing at Facebook:
• New privacy protections
• Data feature
• Live streaming
• E-mail marketing for Facebook app
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FOUR IMPORTANT SOCIAL NETWORKS:
TWITTER
Twitter
Twitter in a brand
manager’s strategy:
• Connect in real time.
• Interactive and live video.
• Generate brand buzz.
• Follow the twitter
profiles.
Wendy’s Twitter
Website
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©Ken Wolter/Shutterstock

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FOUR IMPORTANT SOCIAL NETWORKS:
LINKEDIN (1 of 2)
LinkedIn
LinkedIn in a brand manager's
strategy:
• Building B2B image
• Networking with industry-related
groups and professionals
• Identifying sales leads and
locating vendors
• Direct advertising at specific
companies and people
LinkedIn
Website
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FOUR IMPORTANT SOCIAL NETWORKS:
LINKEDIN (2 of 2)
LinkedIn in a college senior’s job
search
• Write informative, short headline.
• Include professional photo.
• Create professional summary.
• Fill the skills and expertise
section.
• Include recommendations.
• Set profile to public and create
URL.
LinkedIn
for
Students
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FOUR IMPORTANT SOCIAL NETWORKS:
YOUTUBE
YouTube
• 1.5 billion users.
• 4 billion views per day.
• Upload 300 hours of video per minute.
• 50% of traffic from mobile devices.
YouTube in a brand manager’s strategy:
• Exploit visual aspects of your message.
• Create a brand channel with key words.
• Use YouTube analytics to target viewers.
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MARKETING MATTERS
Vloggers Are the New Power Players,
Worldwide!
Half of web video ads are never seen!
Hard to hold audience’s attention.
Vloggers – video bloggers
• Online version of celebrities
• Zoella – 12 million subscribers
• PewDiePie – 62 million subscribers
• Forbes publishes 30 Top Power
Players on social media list.
Zoella:
Life, Beauty &
Chats
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SOCIAL MEDIA MARKETING PROGRAMS AND
CUSTOMER ENGAGEMENT
Social media marketing program:
• Is part of IMC focused on creating and
delivering content online.
Social media reaches consumers who are:
• Active receivers
• Influential
• Delighted
• Evangelists
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
Customer engagement: Degree and
depth of interactions
1. Select social media by assessing
characteristics of viewers and
number of visitors
2. Create content
3. Measure results
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FIGURE 17-3 The number of users and unique visitors for
four social network sites: YouTube, Facebook, Twitter, and
LinkedIn
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
SELECTING SOCIAL MEDIA CONTENT
Different types of social media content:
1. Educational
2. Inspirational
3. Interactive
4. Connecting
5. Promotional
6. Newsworthy
7. Entertaining
Pepsi MAX
Friend Finder
Video
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
MEASURING THE RESULTS OF SOCIAL MEDIA (1 of 3)
Performance measures linked to inputs
or costs:
• Cost per action (CPA)
• Cost per thousand (CPM)
• Cost per click (CPC)
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FIGURE 17-4 Performance measures for social networks linked mainly
to inputs or costs, as seen by a brand manager.
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Performance
Measure
Costs to
Advertisers
Who Provides It Who Uses It An Assessment
Advantages Disadvantages
Cost per
thousand
(CPM)
"I will pay $0.50
cents for every
1,000 times this
ad loads, up to
$100 per month."
Small websites
that sell ads
directly (may be
using a third-
party service).
Advertisers who
simply want to
build
“awareness.”
Simple to use. Impressions don’t
always lead to
sales.
Cost per click
(CPC)
"I will pay $1 for
every visitor who
clicks on this ad
and goes from
your website to
mine."
Most websites
use this
method—
executed by a
third party like
Google/AdWords.
Advertisers who
want to pay for
success, but may
not be able to
track sales from
advertisement to
purchase.
I only pay for a
visitor who has
expressed an
interest in my ad.
Ads may not
display if they are
a poor fit for the
viewing audience.
Cost per
action (CPA)
"I will pay $5
dollars for every
purchase that
originates from an
ad on your site."
Usually executed
through third
parties; Google
AdSense offers
this feature.
Sophisticated
advertisers who
want to pay for
success.
I only pay for
what works.
Similar to CPC but
harder to track
and more
expensive per
action.

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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
MEASURING THE RESULTS OF SOCIAL MEDIA (2 of 3)
Performance measures linked to outputs or revenues:
1. Users/members
2. Fans
3. Share of voice
4. Page views
5. Visitors
6. Unique visitors
7. Average page views/visitors
8. Interaction rate
9. Click-through rate
10.Fan source
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
MEASURING THE RESULTS OF SOCIAL MEDIA (3 of 3)
Specialized focus for other social
networks:
Pinterest
• Virtual pinboard
• Shares content
• 150 million users
• 80% female
• 75% traffic from mobile apps
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
CARMEX AND LEBRON JAMES (1 of 2)
Background: Carmex partnership with LeBron
James
The Half-Court Hero Contest: Make a half-court
shot for $75,000!
Carmex
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SOCIAL MEDIA MARKETING PROGRAMS
AND CUSTOMER ENGAGEMENT
CARMEX AND LEBRON JAMES (2 of 2)
The “shot” goes viral.
Brand manager social media lessons:
“Watch for opportunities to manage
luck…use both social and traditional
media...”
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THE FUTURE: CONVERGENCE AND MOBILITY
Social commerce technologies: Changes
how consumers shop and pay.
Databases and algorithms: To find
prospective customers.
Apps: Run on smartphones and tablets.
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Successful video games:
• Personal real-world
satisfaction and reward.
• It’s better with friends.
• It never ends.
• It makes player feel special.
• It lets player–sort of–cheat.
• It’s challenging.
THE FUTURE: CONVERGENCE AND MOBILITY
Clash of Clans
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THE FUTURE: CONVERGENCE AND MOBILITY
MOBILE MARKETING: TIGHTENING LINKS TO ACTIONS
Mobile marketing – interactive messaging that
communicates through personal devices:
• Price-comparison searches – scan bar codes
or QR codes
• Location-based promotions – GPS enables
location check-in
• Loyalty programs – win loyalty points for
walking into stores
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THE FUTURE: CONVERGENCE AND MOBILITY
MOBILE MARKETING: TIGHTENING LINKS TO ACTIONS
Near field communications
Consumer purchase where sensors have
some control
Purchases where the buyer controls all
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THE FUTURE: CONVERGENCE AND MOBILITY
WHERE TO NOW?
On privacy: how much convergence is too
much?
• 2,000+ times online activity of average user
is tracked per day.
• 3,500+ “shopping tendencies” that can be
measured for nearly every U.S. household.
• 2.5 billion adult consumers in global
database of Acxiom corp. (leading data
broker).
The future?
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Social Media
Social media consist of online media where
users submit comments, photos, and
videos—often accompanied by a feedback
process to identify “popular” topics.
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Blog
A blog, which is a contraction of “web log,”
is a web page that serves as a publicly
accessible personal journal and online forum
for an individual or organization.
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User-Generated Content (UGC)
User-generated content (UGC) consists of
the various forms of online media content
that are publicly available and created by
end users.
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Facebook
Facebook is a website where users may
create a personal profile, add other users as
friends, and exchange comments, photos,
videos, and “likes” with them.
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Twitter
Twitter is a website that enables users to
send and receive “tweets,” messages up to
140 characters long.
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LinkedIn
LinkedIn is a business-oriented website that
lets users post their professional profiles to
connect to a network of businesspeople.
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YouTube
YouTube is a video-sharing website in
which users can upload, distribute, view,
and comment on videos.
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Apps
Apps are small, downloadable software
programs that can run on smartphones and
tablet devices. Also called mobile apps or
applications.
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Influencer Marketing
Influencer Marketing is the practice of
focusing on the identification and
recruitment of influencers to advocate a
company’s products, services, and
brands.
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