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Social media Marketing 2012-2013


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What is social media marketing? Why should companies use it? How does it support CRM? What is the future of social media marketing?
This presentation looks at social media marketing utilizing the latest marketing theories. Blending real-world application with the latest studies and academic rationale for Social Media Marketing, we look at how SMM can bring ROI to your business.

© Copyright Marie Howell 2012

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Social media Marketing 2012-2013

  1. 1. @MarieHowell StartMarie Howell, Wesley George, Tom Siejka
  2. 2. Contents Introduction and impact of Social Media on MarketingThe role of Social Media in Marketing benefits and warnings How is Starbucks using Social Media in their Marketing campaign The Future of Social Media in Marketing
  3. 3. What is Social Media? Social Media is a group of Internet-based applications that build on the ideological and technologicalfoundations of Web 2.0, and that allow the creation and exchange of User Generated Content. “Users are in control – as content consumers, as publishers and as influencers.” Andreas & Michael (2009); IAB (2012)
  4. 4. Social Media McKinsey 2011
  5. 5. Social Web /Digital Ethnography Wesch (2007)
  6. 6. Hayden & Tomal 2012
  7. 7. Hayden & Tomal (2012)
  8. 8. Hayden & Tomal (2012)
  9. 9. • 2010 - 400 Mil • 2011 - 750 Mil • 2012- 1 Bil Top 10 Facebook Countries 1. USA 1. UK 2. Brazil 2. Turkey 3. India 3. Philippines 4. Indonesia 4. France 5. Mexico 5. GermanyThe social ecosystem continues to grow and evolve at a speed that creates increasing risks, challengesand opportunities for market participants. Hayden & Tomal 2012; IAB 2012; McKinsey 2011
  10. 10. What is Social Media Marketing? Social media marketing consists of the attempt to use social media to persuade consumers that ones company, products and/or services are worthwhile. Social media marketing is marketing using online communities, social networks, blog marketing and more.• Devising a strategy that utilises carefully selected tools to engage directly with customers, other brands… …. IF appropriate to the business Neti (2011)
  11. 11. @MarieHowell
  12. 12. Marketing Traditional Digital (new) (old)Billboard Radio TV Print Website Email RSS Widgets Social Content Banners Podcast Media / PPC
  13. 13. Marketing Mix Coupon, bulk buy, BOGOF PriceTV advertisement, Marketing Coffee, book Promotion ProductPrint advert (bottom Mixright) Place Magazine, business network
  14. 14. Marketing Mix Discount code, flash sale, Price grouponViral YouTubevideo Promotion Product eBook, software, insurance Marketing Mix Place Participation Upload, download, LinkedIn, share, review, Facebook, comment Twitter Belicove (2012)
  15. 15. Impact of Social Media on MarketingTraditional marketing Social Media marketingReach limited by Massive potential reachcirculation/viewingSlower delivery Speedy delivery of messageLongevity of message Fast update lead to loss of messageSlow customer engagement Real time customer engagementWord of mouth Ambassadors and e- advocates for brandsSlow communication Constant communicationImpersonal EmotionalPaid EarnedSynergy with social media Synergy with traditional media Strauss (2012); IAB (2012)
  16. 16. Impact of Social Media on CRM • Traditional • Social Media Marketing Marketing • Focus on Single Sales • Focus on customer • Focus on volume retention • Short-term timescales • Focus on customer value • Emphasis on product • Long-term timescales features and quality • Emphasis on relationship • Little emphasis on quality customer service • High emphasis on • Moderate but dis- customer service continuous customer • High level of continuous contact customer contact…listen in on conversations, engage users … generate insight…adding valuable insight throughmeasurement…rounding out the paid, owned, and earned offering with intelligence…” Ellis 2011 (adapted from Christopher el al. 2002); IAB (2012)
  17. 17. Social media self segmentationTraditional Marketing:Segmentation by marketers demographics- generic groupings Gatorade (traditional segmentation + social media)Social Media Marketing:Self segmentation micro-segmentation identify influencers; advocates linked in business groups money savings groups castrol Gatorade Case Study (2011); IAB (2012)
  18. 18. Not Everyone Engages in Social Media· 79% don’t ‘like’ on Facebook· Only 42 % Facebook users agree that ‘like’ means that they are a fan or advocate of the company· 1% brands engage on Facebook· 59% consumers don’t engage with their favourite brands through any social network· 71% say they are more selective when ‘liking’ than a year ago· 78% customers who ‘like’ brands, ‘like’ fewer than 10 brands· 75% don’t follow any brands on Twitter· More than half feel overwhelmed by brands on SM· 20% feel that incentives are not worth the effort· 60% find it annoying when brands communicate with them directly via SM· 64% hate being targeted by their SM profiles· 58% find SMM invasive· 3 in 4 think 2 brand messages a day is SM is too much· 81% consumers have ‘unliked’ a company· 58% consumers have never had conversations with brands via SM Thefinancialbrand (2012)
  19. 19. However, the center of gravity is shifting Social Media without an effective Marketing Strategy is Lame; however, Marketing without an Effective Social Media Strategy is Blind.Image: Danilo Rizzuti /
  20. 20. @MarieHowellWord of mouth is the currency and now we have infrastructure for Word of Mouth to be on steroids Vaynerchuck (20110
  21. 21. The role of Social Media in MarketingPart of a wider marketing strategy: amelioration notreplacement•Engagement•CRM•Knowledge•Granular Data•Combining online and offline world•Online PR / SEO / Content Marketing Strategy Wilson et al. 2009; Barwise & Meehan 2010
  22. 22. Customer Knowledge Listen: read, understand, respond“Brands that use their data intelligently will be the long-term winners of customer trust.Using the client intelligence is the next step, in driving innovation across their entire organizations”“A brand’s social strategy starts with identifying its entire audience on and off channel,segmenting the audience into different types of users, and developing an engagementstrategy for each type…” Edelman (2010); IAB 2012; 2012
  23. 23. Customer Engagement • Create (multiple) touch points • Online consumer is no longer linear • Relationship after purchase • CRM“These small per-event impacts of social earned media activity can accumulate tohave a substantial long term impact on sales…” Stephen and Galak ( 2012); Pardot 2011; Edelman (2010)
  24. 24. 12/12/2012 24 Divol et al. 2012
  25. 25. Drive Footfall / BusinessWhat metric is important?• Attention?• Footfall?• Lead?• Purchase?• Loyalty?• Referral?• Check-in?
  26. 26. Massive Viral Potential Forbes 2012 ; Carson 2012
  27. 27. Online – Offline Synergy• Link print media to the online world• Give users a short URL on TV /radio campaigns• Consider: do you need to move to different mediums? Purchase directly in FB?• Consistent brand message across platforms• Foursquare promotes offline action• Groupon• Content / authority Hotelnewsnow 2009; Kolmes 2012
  28. 28. Massive Growth Appdata (2012)
  29. 29. SWOT ANALYSISS • Large market reach or penetration W • Ever-changing environment • Build a conversation and converse with others and build close networking bonds • Reputation Warfare • Human factor: Your “brand” becomes more • Time investment & Personnel HUMAN • Pull marketing • Direct contact with audience (almost like • KPI’s: must be measurable face-to-face) • Lack of privacy • Tap into the wisdom of consumers • Increase in customer complaints • Engages prospects through customer evangelism • Reach out to certain groups thatO traditional media didn’t allow you to T • Competitor is going after the same space or same audience with similar • Developing a following/ audience campaign that auto-nurtures itself • Has no solid revenue model • It may become the dominant • Advertisements on the sites • way for businesses to communicate with • Account hacking their customers • Employees • Quick delivery, branding opportunities, and • Emotion / irresponsibility enhanced marketing opportunities • #Fail • Develop applications to interact with target • Customers desensitivity audience, e.g. students • Victim of own success
  30. 30. Reputation Management #fail
  31. 31. Reputation Management Gizmodo (2006)
  32. 32. Victim of Success Larsen (2012)
  33. 33. #Fail: People as Brands Forbes 2011; Rumorfix (2012)
  34. 34. Social Media Triage Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Assess the Does customer Do you want Evaluate the need/deserve more to respond? message purpose info? Yes Unhappy Yes Are the facts No Gently correct theNo Response Customer? correct? facts No Yes Can you add No Dedicated Yes Are the facts No value? Complainer? correct? No Yes Is the Explain what is being Respond in Thank the Comedian Yes problem done to correct thekind & share person Want-to-Be? being fixed? issue. No Yes Let post stand and monitor. Clearverve (2009)
  35. 35. The role of Social Media in Marketing
  36. 36. @WesleyGeorge
  37. 37. Brand Overview: Building the Digital Environment• Starbucks wanted to extend the experience to their customer through Online channels and Social Media channels, a natural next step in their relational and communal evolution as a brand.• Starbucks CEO Howard Schultz encourages technology initiatives and was aggressive in using consumer-focused new media Starbucks (2012)
  38. 38. Model used by Starbucks Social Media tightly align with Starbuck’s strategy, from brand definition to execution through service delivery Clark & Shapiro (2012)
  39. 39. How is Starbucks using Social Media Marketing Proprietary Social Media Channels Starbucks (2012)
  40. 40. How is Starbucks using Social Media Marketing Starbucks’ Wheel & Spoke Visualized Starbucks (2012)
  41. 41. How is Starbucks using Social Media Marketing12/12/2012 42 Starbucks (2012)
  42. 42. Starbucks Facebook Facts Starbucks Costa Coffee Fan Likes 32,510, 186 Fan Likes 831,873Talking about this 37,4257 Talking about this 49,902We’re here 4,357,771 We’re here N/AStarbucks UK Likes 955, 234Stores: 19,972 stores in 60 countries Stores: 1300 shops across the UK and 600790 in the UK internationally SocialBakers (2012)
  43. 43. Costa (2012)
  44. 44. Twitter Facts
  45. 45. Challenges faced with Social Media Kirby 2012; Komego 2012
  46. 46. SWOT ANALYSISS • Strong brand loyalty W • Easy to replicate e.g (Costa) • High ROI on social media $67m • Negative feedback on multiple • High CRM social networks (UK) • Mobile phone payment • Time investment & Personnel • Implements ideas of customers in their • Pull marketing products • Increase in customer complaints • High use of multiple social media network • Micro campaigns (e.g 12 days of Christmas) • Diversifying to TV advertisingO • Linking online and offline T • Increase competition on SM networks (e.g Costa) • Expand social media in stores • Reputation management • Reward engagement in social media • Account hacking • Home-made coffee machine (Verismo) • Employees (potential) • Increase SMM involving fair trade (9% • #Fail increase Q1 2012) • Customer desensitivity • Link with businesses via social media to elicit Starbucks machines in offices/universities
  47. 47. @MarieHowell
  48. 48. Future of Social MediaThe ‘Future’• Two worlds combine• Social Dashboards• Social commerce stores• The right info for the right person at the right time• NFC, Promo & Upsell• Closer Global Interaction• Passive to Active Consumers• Crowdsourced services
  49. 49. Future of Social Media Falling stock pricesCustomer migration Information overloaded Addiction Neocortex Thebrainbank (2012)
  50. 50. Future of Social Media Marketing• Reputation management• Evolution of new tools• Less push > more pull• Semi-automated responses?: a reduction in authority / trust?• Sentiment analysis• Customer Engagement & CRM• Guerilla Marketing & Viral Marketing• Marketers to become better listeners• Finally understanding that a 22 yo cannot undertake a SM campaign• Advent of new tools & swift rise (e.g. Pinterest in 2011/12)• social technologies stand to unlock $1.3 trillion in business value Holloman 2012; The Cloud 2012; McKinsey 2011
  51. 51. Future of Social Media Marketing• User engagement manuals: detailed back-house manuals• In-house marketers to become user engagement specialists• More effective monetization of Social Media• Marketers to finally understand that social media is a tool to promote long term engagement not short term• Marketers to plan short, medium & long term SMM campaigns• KPI’s to be carefully selected & measured, then campaigns adjusted• Withdrawal from SMM (e.g. selected financial services)• Better selection of SM platforms/Mergers• Massive growth internationally: 23% Middle East / Africa; 21% Asia- Pacific• Local market SM tools & niche markets expand, e.g. Sina Weibo Holloman (2012); Hootsuite 2012
  52. 52. Future of Social Media Marketing: Mobile• Smartphones and social media have a symbiotic relationship, with both feeding off each other• Mobile Internet use in the US is set to overtake wired use by 2015• Mobile marketing- universities, mobile apps for children, Medical apps.• Mobile advertising more viable, e.g. native ads (sponsored / promoted) Hootsuite 2012; The Cloud 2012; Marketingmagazine 2012
  53. 53. Future of Social Media Marketing Estimated future performance• The Social Media feeds can be effective indicators of real world performance• The results have shown that the buzz from Social Media can be acurate indicator of future outcome Jansen (2009)
  54. 54. The Future Role of Social Media - Generations 57 percent of the Gen-Y population spend half their salaries on social purchases like holidays and technology. Gen X – The service industries most concerned about the GenX should be restaurants, banks & credit card companies GEN C Socialmediatoday (2012)
  55. 55. 12/12/2012 56 Castronovo & Lei 2012
  56. 56. Summary• Social media and marketing mix• Impact and role – medium of innovation• Massive coverage• Organizations – use as another marketing platform to increase exposure of brand• Treating social media as a “bolt-on” or silo will never work.• The future – new generation of buyers• Co-create products- build relationships• Value that companies generate from technologies will be passed on to consumers.
  57. 57. References• Andreas, M. K., and Michael, H., 2009. Users of the world, unite! The challenges and opportunities of social media. Business Horizons, 53, 59-68.• Gatorade case study: Using consumer segmentation and social media to drive market growth 1-18 (MarketLine, a Datamonitor business 2011).• Barwise, P., and Meehan, S., 2010. The one thing you must get right when building a brand. Harvard Business Review, 88 (12), 80- 84.• Belicove, M. Where social media fits in the marketing mix. Available from: [Accessed: 4 December 2012].• Bennett, W. L., 2012. The personalization of politics: Political identity, social media, and changing patterns of participation. Annals of the American Academy of Political and Social Science, 644 (1), 20-39.• Bort, J., 2011. How starbucks and other companies use complex math algorithms to read your feelings. Available from:• [Accessed: 9 December 2012].• Castronovo, C., and Lei, H., 2012. Social media in an alternative marketing communication model. Journal of Marketing Development & Competitiveness, 6 (1), 117-136.• Clark, M., and Shapiro, M. Developing a socialmedia strategy. Available from: [Accessed: 3 December 2012].• Clearverve. Reacting to social media. Available from: social-media.pdf [Accessed: 4 December 2012].• Costa., 2012.. An announcement for all cycling loving costa fans! Available from: [Accessed: 5 December 2012].• Divol, R., Edelman, D., and Sarrazin, H., 2012. Demystifying social media. McKinsey Quarterly (2), 66-77.• Edelman, D. C., 2010. Branding in the digital age: Youre spending your money in all the wrong places. Harvard Business Review, 88 (12), 62.• Hayden, B., and Tomal, R. A history of social media. Available from: [Accessed: 4 December 2012].• Holloman, C., and Adeyeri, E., 2012. The social media mba : Your competitive edge in social media strategy development and delivery. Chichester, West Sussex, U.K. ; Hoboken, N.J. : John Wiley and Sons, 2012
  58. 58. References• Kirby, P. Starbucks ceo called me to apologise. Available from: apologise/ [Accessed: 5 December 2012].• Kolmes, K., 2012. Social media in the future of professional psychology. Professional Psychology: Research and Practice.• Larsen, J. Viral video case study of dollar shave club : What we can learn. Available from: [Accessed: 5 December 2012].• Lewellen, J., and Nagel, S., 2006. The conditional capm does not explain asset-pricing anomalies. Journal of Financial Economics, 82 (2), 289-314.• Marketingcharts. Social media poised to become a stronger force for innovation. Available from: 24879/?utm_campaign=newsletter&utm_source=mc&utm_medium=textlink [Accessed: 4 December 2012].• McKinsey, 2012. The social economy: unlocking value and productivity through social technologies: Available from: [Accessed: 5 December 2012• Miller, R., and Lammas, N. 2010. Social media and its implications for viral marketing (Vol. 11, pp. 1-9).• Neti, S., 2011. Social media and its role in marketing. International Journal of Enterprise Computing and Business Systems, 1 (1), 1- 15.• Rumorfix., 2012. Alec baldwin quits twitter over airline scandal. Available from: quits-twitter-over-airline-scandal/ [Accessed: 5 December 2012].• Scott, P. R., and Jacka, J. M., 2011a. Auditing social media : A governance and risk guide. Wiley.• Strauss, K. Obama beats romney in internet savvy & social media. Available from: [Accessed: 5 December 2012].• Thefinancialbrand.,(2012). Brands struggle in social media, data shows sobering stats. Available from: [Accessed: 5 December 2012].• White, C. Dell laptop explodes in flames. Available from: [Accessed: 5 December 2012].• Wilson, H. J., Guinan, P. J., Parise, S., and Weinberg, B. D., 2011. Whats your social media strategy? Harvard Business Review, 89
  59. 59. @MarieHowell
  60. 60. @MarieHowellMarie Howell, Wesley George