Social Network enables transfer of marketing power from enterprise to end users.

1. Social Network Marketing-
A New Openness Concept
George Wang

2. In the Past
 Communicate to larger groups were expensive
(e.g. TV or newspaper advertising)
 Only large companies had the money to spend
on distributing product information to large
groups
 This structure led to companies creating,
distributing, and controlling most of what was
said about their organization and their products

3. The Early Days of the Internet
 Companies, large and small
communicate to larger groups through
Website
 People rely on Search Engine to look for
information:
 News
 Products and services
 Companies
 The goal of eMarketing was to ensure
your company appears on the first 2
pages of the Internet search

4. The Search Engine Ranking Game
 It is all about relevancy
 The company and keyword pair
 How frequently does it appear
 Within your website
 In new releases
 In other websites
 Basically, you are in control of how
you are ranked
Source: Key word survey conducted on November 15, 2010 on Google search result appearing on first 2 pages.

5. The Web2.0 Era
 The relevancy took a whole new
meaning because in addition to website
we now have
 Blog
 Tag
 Wiki
 Forum
 Community
 Social network site, Facebook, twitter,
LinkedIn, YouTube
 You are no longer in control, people are

6. The Cortina Systems Web2.0
Litmus Test
 How well known is Cortina in the
Web2.0 sphere?
 Delicious
 Wikipedia
 YouTube
 Digg
Cortina is virtually non-existent in this new
marketing platform. How about your company?

7. Today - Social Computing
 Internet can reach over 1.45 billion people
 Uses common functionality such as “email a
friend”, “promote”, and “rate”
 Easy for humorous or shocking content to
spread like wildfire - a groundswell of word-of-
mouth activity
 Seen a funny video lately from a friend?

8. Beer Commercial

9. Why We’re Here Today
 Social computing offers new and
effective ways to reach and engage
B2B tech buyers
 Relying on traditional marketing
practices is now insufficient
 Marketers embracing this new
paradigm can build customer
relationships that increase market
share and loyalty

10. Website and Email Still
Dominate but…
Source: Forrester Q1 2009 B2B Marketing Budgets and Tactics Online survey with Marketing Profs

11. B2B Marketers Begin To Adopt
Social Media
Source: Forrester Q1 2009 B2B Marketing Budgets and Tactics Online survey with Marketing Profs

12. Top Marketers Break Out of
Traditional Habits
 Think buyer first: Know buyer’s propensity to use
social media and how to engage them
 Set measurable goals: Clearly communicate what
success looks like; anticipate what can go wrong
 Perfect their basics: ensure search, email, and Web
site are fine-tuned into lead generation machines
 Experiment: set aside 10% of marketing dollars to
spend on new digital tactics
 Embrace and integrate digital: Dig deep into what’s
happening with social media in your industry

13. Integrate Different Media/Tactics
Together

14. Make Product Demos Interesting, Fun, and
Viral

15. Social Technographics
 Social technographics is used to diagnose current
practice before setting a new strategy — and for
understanding how Web 2.0 impacts buyer
behavior in the sales process.
 Buyer behavior can be categorized into the
following:
 Creators
 Critics
 Collectors
 Joiners
 Spectators
 Inactives
16

16. Social Technographics Groups
19%
25%
12%
25%
48%
44%
Publish a blog
Publish your own Web pages
Upload video you created
Upload audio/music you created
Write articles or stories and post them
Post ratings/reviews of products or services
Comment on someone else’s blog
Contribute to online forums
Contribute to/edit articles in a wiki
Use RSS feeds
Add “tags” to Web pages or photos
“Vote” for Web sites online
Maintain profile on a social networking site
Visit social networking sites
Read blogs
Watch video from other users
Listen to podcasts
Read online forums
Read customer ratings/reviews
None of the above
Source: Q2 2007 US Social Technographics® Online Survey, N= 10,010
US online
adult population
(at least monthly
participation)
Creators
Critics
Collectors
Joiners
Spectators
Inactives

17. Tech Buyers are Socially Active
Crowd

18. Your Options
An organization can choose to
 Ignore
 Control
 Mimic
 Embrace

19. Ignore
 Denial about the impact social
computing is easy
 An over-hyped fad that is best to ignore
 Especially true for industry yet to feel
the effects of this new openness
 Younger demographics are already
immersed in social openness
 Ignorance is dangerous- Social
openness can move very fast once it
starts

20. Control
 The Legal departments of most
organizations perceive openness as
violation of copyrights and trademarks
 The entertainment industry is deeply
engaged in Digital Right Management
(DRM)
 Video/audio rights - pay per play
 Alienate new product suggestion websites
in fear of legal claim from customers
 Some control on trademark and copyright
is necessary but try not to over do it

21. Mimic
 “If you can’t beat them, join them.”
Interactive advertising agencies are all
aggressively promoting this option to
their clients
 Consumer behavior online can be
segmented into groups
 Companies advertise their brands online
mimic social networks by adding similar
functionality to company sites
 Place branded offers in these new online
communities (mySpace, Facebook)

22. Mimic is Not the Real Thing
 Not simply a new technology to display
advertising
 It empowers customers to share their
thoughts about products with greater
credibility and with as much reach as
marketing departments
 Customers expect an honest direct
conversation with companies — not an
advertising message
 The new openness makes advertising
approaches less effective

23. Embrace
 Customers are now in control of a
company’s perception in the market
 Customers will share their positive
experiences with many others online
 Customers will share their negative
experiences, which will negatively
impact the company
 Current marketing approaches becomes
ineffective
 It scares Legal and confuses Sales

24. Focus on the Product or Service
 Openness makes it harder for an inferior product
to success
 Negative product information will spread faster
than you can ever imagine
 Engaging in the new openness is ineffective and
dangerous if it is done only at the time of
product launch
 Began at product inception and development
 Engage customers in a process to help improve
your product
 Create ambassadors to help promote the next
release

25. Adopt Open Innovation
 Most companies are still rely on internal
individuals for product ideas and
enhancements
 “Voice of the customer” is done under
assumption that company is in control
 Open innovation asserts that a
significant portion of new ideas and
enhancements come from outside
organizations
 Finer enhancements will have to come
from the end users

26. Overcome Change Inertia
 Disruptive change is hard to getting
started
 Leadership start in product development
 Everyone in the executive core must be
prepared for the change
 Anyone who has direct interaction with
customers regarding the product can
begin the process of openness
 Active customers are ambassadors for
new product launches and could help
spread positive word-of-mouth

27. Groundswell
 A social trend in which people use
technologies to get the things they need
from each other, rather than from
traditional institutions like corporations
Year 2000 or Earlier Now
You buy things from stores You buy from other people in eBay
You read movie reviews from critics
on TV or Newspaper
You read movies reviews from others
through Rotten Tomatoes
You buy movies and music from
stores
You download music and videos from
P2P network like Foxy or PPS

28. This is Your Company…

29. This is Your Customers…

30. This is Your Customers in the
Groundswell

31. Four-step Approach to the
Groundswell
P People
Assess your customer’s social activities
O Objectives
Decide what you want to accomplish
S Strategy
Plan for how relationships with customer will
change
T Technology
Decide which social technologies to use

32. Key Roles and their Groundswell
Objectives

33. The New Collaborative Culture
 Share how the
product is evolving
 Users are helping you
to shape your product
 User get connected
from different regions
 Engage education and
energize customers
 Continuous learning
 Real life testimonials
Energizing
Supporting
TalkingEmbracing
Spreading

34. Openness Attitude
 Humility
 Your customers know more then you do
 Believe the customers are smarter than you
 Customers are in control, not you
 Passion
 Engaging with customers because you
enjoying it, not because it is your job
 Legal
 Adjustment may be necessary to enforce
legality to a social group (not a legal entity
but a socially connected individuals)

35. Case Examples
Collaborative Innovation

36. Captive Community Yield
Insights on Demand

37. A Conversation with
Customers
Del Monte: What does your dog
eat for breakfast
George: she would definitely
want bacon and eggs and she
would want ketchup on her
eggs. She loves ketchup!!!
Del Monte: Would you buy more
treats if they had vitamins and
minerals as ingredients?”
George: I would buy healthier
treats over ones that didn’t
have vitamins and
minerals. . . . I try to look for
amino acids and omega 3 and
fish oils.

38. More Insights from a Private
Community

39. Credit Mutual
 What would you
improve if you
were the banker?
 I will explain the
complicated fee
more clearly
 Done through
contest
 Crucial to let each
other to see their
ideas and vote
for it

40. Salesforce.com Encourages Third
Party Application add-ons

41. Loblaw Supermarket Energizes its
Customers through Product Rating
 Rate all products
online and in stores
 Solicit opinions
from shoppers
 Implement changes
as suggested by
shoppers and
publish it in store
and online

42. Microsoft Encourages People to
Share Templates

43. Cisco Delivers Key Content and
Asks Partners to Critique/Vote on It

44. Useful Reference
 Groundswell, winning in a world
transformed by social technologies,
Harvard Business Press, 2008
 Check out the related web resources at
http://www.forrester.com/empowered/in
dex.html
 American Business Media
 http://americanbusinessmedia.ning.com/