Nyserda Week 3 08 Oct2009

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Nyserda Week 3 08 Oct2009

  1. 1. Marketing Class #3 October 21, 2009 John W. Huppertz, Ph.D. Associate Professor of Management Christie M. Griner, MBA Adjunct Instructor
  2. 2. Agenda <ul><li>Quick Review of Concepts </li></ul><ul><li>Presentations (10 minutes, and I mean it) </li></ul><ul><li>Social Network Marketing </li></ul><ul><li>Media planning & buying </li></ul><ul><li>Direct Marketing </li></ul>
  3. 3. Quick Review <ul><li>BDI & CDI </li></ul><ul><li>Target Market: Which customer offers the greatest opportunity? </li></ul><ul><li>Market Segmentation </li></ul><ul><ul><li>Demographic </li></ul></ul><ul><ul><li>Psychographic/Lifestyle </li></ul></ul><ul><ul><li>Purchase patterns </li></ul></ul><ul><ul><li>Other </li></ul></ul><ul><li>Three reasons to segment the market: </li></ul><ul><ul><li>Select a target customer </li></ul></ul><ul><ul><li>Better understand the customer </li></ul></ul><ul><ul><li>Reach customers more efficiently </li></ul></ul><ul><li>Green Marketing Practices </li></ul>
  4. 4. Marketing “best practices” <ul><li>Teams: </li></ul><ul><ul><li>Marketing Services </li></ul></ul><ul><ul><li>EES, EA, Clean Energy, REAP </li></ul></ul><ul><ul><li>Economic Development </li></ul></ul><ul><ul><li>New Technologies </li></ul></ul><ul><li>  10 pages, 10 minutes. </li></ul>
  5. 5. Presentations
  6. 6. Quiz.... <ul><li>Widget </li></ul><ul><li>Blog </li></ul><ul><li>Tweet </li></ul><ul><li>Status update </li></ul><ul><li>Social targeting </li></ul><ul><li>Adword </li></ul>
  7. 7. Social Networking Defined <ul><li>Focuses on building online communities of people who share interests and activities, or who are interested in exploring the interests and activities of others </li></ul><ul><li>Connecting and sharing information with other like-minded people via the Web </li></ul><ul><li>It’s not why are you on this site,…it’s why aren’t you? </li></ul>
  8. 8. Social Networking <ul><li>Facebook </li></ul><ul><ul><li>Married, White, retired, extremely loyal, increased usage </li></ul></ul><ul><ul><li>2 nd highest income, average 121 connections </li></ul></ul><ul><li>MySpace </li></ul><ul><ul><li>Single, Black, Hispanic, students </li></ul></ul><ul><li>Twitter </li></ul><ul><ul><li>Part-time, average income $58K, average 28 followers, follow 32 </li></ul></ul><ul><ul><li>Not loyal, 43% can live without it </li></ul></ul><ul><li>LinkedIn </li></ul><ul><ul><li>Highest income $89K, into gym, spa, yoga, soap-operas, gambling, gadgets, blue-ray </li></ul></ul><ul><ul><li>More men than women, can afford luxury items </li></ul></ul>Bulik, B., What Your Favorite Social Net Says About You. Advertising Age. (Midwest Region Edition). Chicago: July 13, 2009. Vol. 80, Iss. 25, p. 6 (1 pp.)
  9. 9. Why should Marketers consider this? <ul><li>88% of marketers are now using some form of social media to market their business </li></ul><ul><li>If a friend uses a brand—customer 5x more likely to respond to a marketing message </li></ul>http://marketingwhitepapers.s3.amazonaws.com/smss09/SocialMediaMarketingIndustryReport.pdf
  10. 10. <ul><li>Business objectives accomplished </li></ul>http://www.techsoup.org/learningcenter/internet/archives/page9215.cfm
  11. 11. Interesting Facts <ul><li>LinkedIn used primarily by small businesses (2-100 employees) </li></ul><ul><ul><li>Preferred over blogging </li></ul></ul><ul><li>Twitter used by 94% of experienced marketers </li></ul><ul><li>Sole proprietors usage on the rise </li></ul><ul><ul><li>30.2% reporting just getting started </li></ul></ul><ul><li>A social networker on average visits a social site 5x per week and checks in about 4x a day for a total of an hr each day </li></ul><ul><li>Non-social networkers exist but not because they hate technology </li></ul><ul><ul><li>Don’t have time </li></ul></ul><ul><ul><li>Don’t think it’s secure </li></ul></ul><ul><ul><li>Think it’s stupid </li></ul></ul><ul><ul><ul><li>Will use--within 3 months: 22%; within a year: 27% </li></ul></ul></ul>
  12. 12. Current Popular Social Networking Modes http://marketingwhitepapers.s3.amazonaws.com/smss09/SocialMediaMarketingIndustryReport.pdf
  13. 13. Growth Trends <ul><li>Social Networks are now more popular than Email (68% v. 65%) </li></ul><ul><ul><li>Facebook </li></ul></ul><ul><ul><ul><li>300M WW </li></ul></ul></ul><ul><ul><ul><li>35+ fastest growing </li></ul></ul></ul><ul><ul><li>MySpace </li></ul></ul><ul><ul><ul><li>76M </li></ul></ul></ul><ul><ul><li>LinkedIn </li></ul></ul><ul><ul><ul><li>48M </li></ul></ul></ul><ul><ul><li>Twitter </li></ul></ul><ul><ul><ul><li>grew at 2,565% </li></ul></ul></ul><ul><ul><ul><li>Reached 14M </li></ul></ul></ul>
  14. 14. Retention Rates <ul><li>Confusion with purpose-- Is FB turning into Twitter? </li></ul><ul><ul><li>90% of Twitter activity is generated from 10% of users </li></ul></ul><ul><ul><li>60% of Twitter users drop off within a month </li></ul></ul>http://www.businessinsider.com/60-of-twitter-users-quit-after-a-month-2009-4
  15. 15. Statistics-Overlapping <ul><li>Audience duplication across networks </li></ul>http://www.readwriteweb.com/archives/who_uses_social_networks_and_what_are_they_like_part_1.php
  16. 16. Statistics <ul><li>48% of US adults have a MySpace or FB account </li></ul><ul><ul><li>16% update page daily </li></ul></ul>
  17. 17. I. Twitter <ul><li>Brand Monitoring </li></ul><ul><li>Changed the way the world views news </li></ul><ul><li>Humanizes the brand </li></ul><ul><ul><li>Companies are following how consumers are shaping their brand </li></ul></ul><ul><ul><ul><li>It’s now in consumers hands </li></ul></ul></ul><ul><ul><ul><li>Tweets can be both +/- PR instantly </li></ul></ul></ul><ul><li>Early warning system </li></ul><ul><ul><li>Allows for rapid response before spillover occurs </li></ul></ul><ul><ul><ul><li>. </li></ul></ul></ul>
  18. 18. I. Twitter: JetBlue <ul><li>JetBlue </li></ul><ul><ul><li>Provide customer service, i.e. promote travel deals, give flight schedules </li></ul></ul><ul><ul><ul><li>Importance of informal updates </li></ul></ul></ul><ul><ul><li>Discount airline </li></ul></ul><ul><ul><li>1,350,407 followers </li></ul></ul>
  19. 19. I. Twitter: Zappos <ul><li>Evolved into corporate identity </li></ul><ul><li>Complete transparency </li></ul><ul><li>Online retailer </li></ul><ul><li>1,431,006 followers </li></ul><ul><li>CEO Tony Hsieh tweets about his life and Zappos’ offbeat corporate culture </li></ul>
  20. 20. I. Twitter: Dell <ul><li>20 accounts </li></ul><ul><li>Face with company </li></ul><ul><li>Feedback forum </li></ul><ul><li>Online retailer of refurbished Dell computers and electronics </li></ul><ul><li>Used the site to sell more than $3 million in refurbished computers (http://bits.blogs.nytimes.com/2009/06/12/dell-has-earned-3-million-from-twitter/) </li></ul>
  21. 21. I. Twitter: Dell
  22. 22. I. Twitter: Dell
  23. 23. NYSERDA
  24. 24. Case Study: Skittles <ul><li>“ Taste the Rainbow”  “Chat the Rainbow” </li></ul><ul><ul><li>Prompts DOB </li></ul></ul><ul><ul><li>Homepage: Wikipedia </li></ul></ul><ul><li>“ Skittles.com is home to everywhere you already are. Yes, it sounds strange, but it’s true.” </li></ul><ul><li>Risk </li></ul><ul><ul><li>Let consumers speak for brand image </li></ul></ul><ul><ul><li>Encouraging false conversation </li></ul></ul>
  25. 25. Case Study: Skittles
  26. 26. II. Facebook <ul><li>Is about friends, not news (like Twitter) </li></ul><ul><li>Allows for a deeper dive into details </li></ul><ul><ul><li>Individual Profiles </li></ul></ul><ul><ul><li>Creates brand advocacy </li></ul></ul><ul><ul><li>Greater control of privacy </li></ul></ul><ul><li>Group Pages </li></ul><ul><li>Fan Pages </li></ul><ul><li>Events </li></ul><ul><li>Applications </li></ul><ul><li>Advertising </li></ul>
  27. 27. II. FB Applications: Green Your PC
  28. 28. II. FB Application: Green Your PC <ul><li>Optimizes computer power settings for energy efficiency </li></ul><ul><ul><li>External:  support.com </li></ul></ul><ul><li>Guided by recommendations from Energy Star and Carbonfund.org , support.com makes sure your computer is not using too much electricity </li></ul><ul><li>Quantifies how the user helped environment </li></ul>
  29. 29. II. FB: Group Pages <ul><li>Better for viral marketing, meaning that any group member can also send bulk invites to their friends </li></ul><ul><ul><li>Better for hosting an active discussion and attracting quick attention </li></ul></ul><ul><ul><ul><li>Example- Empire State Wine Club </li></ul></ul></ul><ul><ul><ul><li>Free market research </li></ul></ul></ul><ul><ul><ul><li>Invite only, allows control of branding </li></ul></ul></ul><ul><ul><ul><ul><li>Promotes exclusivity </li></ul></ul></ul></ul>
  30. 30. II. FB Group: Empire State Wine Club
  31. 31. II. FB Group: Empire State Wine Club
  32. 32. II. FB: Fan Pages <ul><li>Better for a long-term relationships with your fans, readers and customers </li></ul><ul><ul><li>Users make decision to connect with company </li></ul></ul><ul><ul><ul><li>Giveaways, contests, coupons attract fans </li></ul></ul></ul><ul><ul><ul><li>52% of social networkers have “friended” or become a fan of at least one brand </li></ul></ul></ul><ul><ul><li>Somewhat interrelates to Twitter’s main platform </li></ul></ul>
  33. 33. II. FB: Green Energy Watch Fan Page <ul><li>Example- Green Energy Watch Fan Page </li></ul><ul><ul><ul><li>Provides link to website on company </li></ul></ul></ul><ul><ul><ul><ul><li>Lets you track fans without being “friends” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Allows picture posting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Allows for instant communication to “fans” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Can write on wall which whole group can see </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Populates in newsfeed automatically when “friends” Become Fans, creating automatic marketing potential </li></ul></ul></ul></ul>
  34. 34. II. FB: Green Energy Watch Fan Page
  35. 35. Google Ad-Words
  36. 36. Seven Deadly Sins <ul><li>Don’t Spam </li></ul><ul><ul><li>Seek out people who will be truly interested in what you have to say </li></ul></ul><ul><li>Don’t be a Stranger </li></ul><ul><ul><li>Social networking thrives on relationships-the more the better </li></ul></ul><ul><li>Don’t be Noise </li></ul><ul><ul><li>Once you have people’s attention, focus on adding value </li></ul></ul><ul><li>Don’t be Lazy </li></ul><ul><ul><li>You have to participate to get anything out of SN. Don’t just build a profile and let it gather dust while you wait for people to notice, they won’t </li></ul></ul><ul><li>Don’t put your eggs in one basket </li></ul><ul><ul><li>Diversify efforts. Seek out specialized social networks for advertisers and in the fields you serve </li></ul></ul><ul><li>Don’t be Fake </li></ul><ul><ul><li>Don’t pretend to be a satisfied user of a product, for example. When you’re found out, the backlash will far outstrip any short-term gain </li></ul></ul><ul><li>Don’t be Selfish </li></ul><ul><ul><li>SN is about community, not about you. “You must contribute more than you want to get out of it” </li></ul></ul>Kugler, L. Make Social Networks Work For You. Advertising Age. (Midwest Region Edition). Chicago: Sep 22, 2008. Vol. 79, Iss. 35, pg. C6, 2 pgs.
  37. 37. References <ul><li>Bulik, B., What Your Favorite Social Net Says About You. Advertising Age. (Midwest Region Edition). Chicago: July 13, 2009. Vol. 80, Iss. 25, p. 6 (1 pp.) </li></ul><ul><li>Kugler, L. Make Social Networks Work For You. Advertising Age. (Midwest Region Edition). Chicago: Sep 22, 2008. Vol. 79, Iss. 35, pg. C6, 2 pgs. </li></ul><ul><li>McKay, L. Skittles: A Rainbow of Social Media Marketing. Customer Relationship Management. Medford: May 2009 Vol. 13, Iss. 5, p. 18 (1 pp.) </li></ul><ul><li>Morrissey, B. Connect The Thoughts. Adweek. June 29, 2009. Vol. 50, Iss. 26. pg. AM10 </li></ul><ul><li>Stelzner, M. Social Media Marketing Industry Report: How Marketers Are Using Social Media to Grow Their Businesses. March 2009. Found at: http://www.whitepapersource.com/socialmediamarketing </li></ul><ul><li>http://www.techsoup.org/learningcenter/internet/archives/page9215.cfm </li></ul><ul><li>http://www.readwriteweb.com/archives/who_uses_social_networks_and_what_are_they_like_part_1.php </li></ul><ul><li>http://www.businessinsider.com/60-of-twitter-users-quit-after-a-month-2009-4 </li></ul>
  38. 38. QUIZ <ul><li>What’s the most popular show on TV tonight? </li></ul>
  39. 40. Nielsen Overnights, Monday October 19 Time Net Show 18-49 Rating/Share Viewers (Millons) 8:00 FOX ALCS Overrun 4.8/13 14.00 CBS How I Met Your Mother 3.5/10 8.76 ABC Dancing With the Stars 3.3/9 15.98 NBC Heroes 2.5/7 5.67 CW One Tree Hill 1.1/3 2.29 8:30 FOX ALCS Overrun/House 4.2/11 11.24 CBS Accidentally on Purpose 3.4/9 8.62 9:00 CBS Two and a Half Men 4.7/12 13.83 FOX House 4.1/10 10.17 ABC Dancing With the Stars 3.8/9 17.04 NBC Trauma 1.8/4 5.52 CW Gossip Girl 1.0/2 1.93 9:30 CBS The Big Bang Theory 5.1/12 13.12 FOX House/Lie To Me 3.5/8 9.33 10:00 CBS CSI: Miami 3.8/10 12.65 FOX Lie To Me 2.6/7 7.45 ABC Castle 2.4/6 9.88 NBC The Jay Leno Show 1.4/4 4.74 10:30 FOX Lie To Me/Various 1.9/5 5.26
  40. 41. Where does this information come from? <ul><li>See Nielsen handouts. </li></ul>
  41. 42. Advertising Concepts <ul><li>DMA: Designated Market Area - Traditionally, the geography defined by strength of broadcast signals from metropolitan markets. </li></ul><ul><li>HUT: Households Using Television </li></ul><ul><li>PUT: Persons Using Television </li></ul><ul><li>GRP Gross Rating Point: 1% of the TV or radio households * </li></ul><ul><li>Share: Number of HH’s tuned in to a program/station divided by number of HHs or persons watching TV in time period (HUTs or PUTs). </li></ul><ul><li>Reach: Percentage of the HH’s (audience) reached by advertising. </li></ul><ul><li>Frequency: # of times advertising reaches the audience. </li></ul><ul><li>Reach x Frequency = GRPs. </li></ul><ul><ul><ul><ul><li>* TRP Target Rating Point: = 1% of the TV or radio audience in your target demographic group (e.g., Females ages 25-54). </li></ul></ul></ul></ul>
  42. 43. Advertising Concepts <ul><li>Reach x Frequency = GRPs . </li></ul><ul><li>Example: </li></ul><ul><ul><li>4.8 + 3.8 + 3.4 + 1.4 = 13.4 </li></ul></ul><ul><ul><li>x 4 weeks </li></ul></ul><ul><ul><li>= 53.6 GRP’s </li></ul></ul><ul><ul><li>Reach: 21.4% of audience </li></ul></ul><ul><ul><li>Frequency: 2.5 times </li></ul></ul>Time Net Show 18-49 Rating/Share Viewers (Millons) 8:00 FOX ALCS Overrun 4.8/13 14.00 CBS How I Met Your Mother 3.5/10 8.76 ABC Dancing With the Stars 3.3/9 15.98 NBC Heroes 2.5/7 5.67 CW One Tree Hill 1.1/3 2.29 8:30 FOX ALCS Overrun/House 4.2/11 11.24 CBS Accidentally on Purpose 3.4/9 8.62 9:00 CBS Two and a Half Men 4.7/12 13.83 FOX House 4.1/10 10.17 ABC Dancing With the Stars 3.8/9 17.04 NBC Trauma 1.8/4 5.52 CW Gossip Girl 1.0/2 1.93 9:30 CBS The Big Bang Theory 5.1/12 13.12 FOX House/Lie To Me 3.5/8 9.33 10:00 CBS CSI: Miami 3.8/10 12.65 FOX Lie To Me 2.6/7 7.45 ABC Castle 2.4/6 9.88 NBC The Jay Leno Show 1.4/4 4.74 10:30 FOX Lie To Me/Various 1.9/5 5.26
  43. 44. Advertising Concepts <ul><li>CPM: Cost per thousand = $ you spend to reach 1,000 audience members. </li></ul><ul><li>Example: Pharmaceutical TV (Aleve) </li></ul><ul><li>ABC Evening News, Sunday 6:30 pm, :30 spot = $950 </li></ul><ul><li>Ratings  Audience: </li></ul><ul><ul><li>HH = 7 rating (i.e., 7% x 554,970 = 38,850 households) </li></ul></ul><ul><ul><li>CPM = ($2,000 / 38.8 thousand) = </li></ul></ul><ul><ul><li>P 50+ = 9 rating (i.e., 9% x 442,000 = 39,800 people ages 50+) </li></ul></ul><ul><ul><li>CPM = ($950 / 39.8 thousand) = </li></ul></ul>
  44. 45. Advertising Concepts <ul><li>CPM: Cost per thousand = $ you spend to reach 1,000 audience members. </li></ul><ul><li>Example: Pharmaceutical TV (Aleve) </li></ul><ul><li>ABC Evening News, Sunday 6:30 pm, :30 spot = $950 </li></ul><ul><li>Ratings  Audience: </li></ul><ul><ul><li>HH = 7 rating (i.e., 7% x 554,970 = 38,850 households) </li></ul></ul><ul><ul><li>CPM = ($950 / 38.8 thousand) = </li></ul></ul><ul><ul><li>HH = 7 rating (i.e., 7% x 13.6% x 554,970 = 5,283 households) </li></ul></ul><ul><ul><li>CPM = ($950 / 5.28 thousand) = </li></ul></ul>&quot;arthritis&quot; = all rheumatic diseases Est. prevalence = 13.6%
  45. 46. Advertising Objectives <ul><li>Informative advertising </li></ul><ul><ul><ul><li>Inform </li></ul></ul></ul><ul><ul><ul><li>Educate </li></ul></ul></ul><ul><ul><ul><li>Build awareness </li></ul></ul></ul><ul><li>Competitive / Persuasive Advertising </li></ul><ul><ul><ul><li>Build brand preference </li></ul></ul></ul><ul><ul><ul><li>Encourage brand switching </li></ul></ul></ul><ul><ul><ul><li>Change customer perceptions </li></ul></ul></ul><ul><ul><ul><li>Buy now </li></ul></ul></ul><ul><ul><ul><li>Persuade customer to go to next step </li></ul></ul></ul><ul><li>Reminder Advertising </li></ul><ul><ul><ul><li>Remind customer where to buy it </li></ul></ul></ul><ul><ul><ul><li>Keep product in mind, off the purchase cycle </li></ul></ul></ul><ul><ul><ul><li>Maintain awareness </li></ul></ul></ul>
  46. 47. Major types of media
  47. 48. Sales Promotion <ul><li>“ A short-term inducement to buy...” (Berkowitz) </li></ul><ul><li>energy fairs </li></ul><ul><li>trade shows </li></ul><ul><li>exhibits </li></ul><ul><li>demonstrations </li></ul><ul><li>contests and games </li></ul><ul><li>premiums and gifts </li></ul><ul><li>other </li></ul>
  48. 49. Sales Promotion - Events/Contests
  49. 50. Public Relations “ Free” media? “ We got 1,000 people at our event this weekend!” You spent $20,000 in out-of-pocket costs and staff time. What’s the CPM?
  50. 51. Marketing-Oriented Public Relations Build positive WOM Strengthen brand Generate interest Support marketing comm. Generate news coverage Get out of trouble Demonstrate concern Repair brand damage Reduce interest Turn off spotlight
  51. 52. Direct Marketing “ Occupant” Mailing Targeted & Personalized
  52. 53. Direct Marketing <ul><li>Remember our CPM example? </li></ul><ul><li>For Direct Mail: </li></ul><ul><ul><li>Letter, envelope, brochure, printing, etc. $ 0.80 each </li></ul></ul><ul><ul><li>Pre-sort 1st class postage (automated) $ 0.335 each </li></ul></ul><ul><ul><li>Handling, fulfillment expenses $ 0.155 each </li></ul></ul><ul><ul><li>TOTAL: $ 1.29 each </li></ul></ul><ul><ul><li>What is the CPM? </li></ul></ul>
  53. 54. Direct Marketing Ability to track responses is essential.
  54. 55. Summary <ul><li>What did we learn today? </li></ul>
  55. 56. Next up: <ul><li>Marketing Planning </li></ul>

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