The document outlines the definition, classification, and application of social media, emphasizing its significance in modern consumer behavior and marketing strategies. It defines social media as internet-based applications allowing user-generated content and classifies it based on social presence, media richness, and types such as blogs, social networking sites, and collaborative projects. Additionally, it provides ten pieces of advice for companies leveraging social media effectively.

1. Social Media – Theoretical module
Andreas M. Kaplan
Mail: kaplan@escpeurope.eu
This presentation is mainly based upon :
Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite!
The challenges and opportunities of social media, Business Horizons, 53(1), 59-68.

2. 1) Defining - 2) Classifying - 3) Applying Social Media
Defining Social Media
Social Media is a group of Internet-based applications that build on
1) the ideological and technological foundations of Web 2.0, and that
allow the creation and exchange of User Generated Content (UGC)
(Kaplan and Haenlein, 2010, p. 61)
Classifying Social Media
Social presence / Media richness
2) Self-
presentation
Blogs &
Microblogs
Social
networking site
Virtual social
worlds
/ Self- Collaborative Content Virtual game
disclosure projects communities worlds
Applying Social Media
Social media = Media + Social
3) Media Social
Andreas M. Kaplan 2010 2

3. 1) Definition and importance of Social Media
2) Classification of Social Media
3) Application of Social Media: 10 pieces of advice
Andreas M. Kaplan 2010 3

4. Defining social media and differentiating it from
Web 2.0 & User-Generated Content (UGC)
Social Media is a group of Internet-based applications that build on the
ideological and technological foundations of Web 2.0, and that allow the
creation and exchange of User Generated Content (UGC)
(Kaplan and Haenlein, 2010, p. 61)
Web 2.0 User Generated Content (UGC)
• Term first used in 2004 to describe 3 characteristics of UGC:
a new way to use the WWW, i.e. as
a platform in which content and • Published on a publicly accessible
applications are no longer created website or on a social networking
and published by individuals but site accessible to a selected group
instead are continuously modified by of people
all users in a participatory and
collaborative fashion • Shows a certain amount of creative
effort
• Web 2.0 does not refer to any
specific technical update of the • Has been created outside of
WWW. However, there is a set of professional routines and practices
basic functionalities that are
necessary for its functioning
(Adobe Flash, RSS, AJAX)
Andreas M. Kaplan 2010 4

5. Importance of social media (1):
Consumers change their behavior
Users trust more in UGC than in corporate content
According to Deloitte Consumer Product Group (2008), about 8 in 10 shoppers trust
brands which offer customer ratings / reviews more than those that do not
Users migrate from traditional to social media
Over 100 million blogs exist; 120 000 new blogs launched every day; 1.5 million posts
per day; If Myspace was a country, it would be the 8th largest country in the world,
etc. (Source: Technorati 2009)
Users take over control in the cyberspace and become prosumers*
Negative public relations (PR) of a Comcast technician sleeping on a client’s couch
went through the press world-wide. The client filmed the technician and put the video
on Youtube in 2006 (Several million consumers have seen this video and talked about
it – and still do)
* Prosumer = Producer + Consumer
Andreas M. Kaplan 2010 5

6. Importance of social media (2):
Companies enter the social media landscape
How important are these services What is the biggest barrier to you
to your business? employing Marketing 2.0?
3,2%
8,5%
22,3% 35,1%
23,4%
Budget
Technology
Staffing
Knowledge
Exec Buy-in
Community is not receptive
Pursuit Group 2009
Andreas M. Kaplan 2010 6

7. 1) Definition and importance of Social Media
2) Classification of Social Media
3) Application of Social Media: 10 pieces of advice
Andreas M. Kaplan 2010 7

8. Classification of social media
Social presence/ Media richness
Low Medium High
Blogs and Social networking Virtual social
High microblogs sites worlds
(e.g. Twitter) (e.g. Facebook) (e.g. Second Life)
Self-
presentation/
Self-
disclosure Virtual game
Collaborative Content
worlds
Low projects communities
(e.g. World of
(e.g. Wikipedia) (e.g. Youtube)
Warcraft)
Kaplan and Haenlein, 2010, p. 62
Andreas M. Kaplan 2010 8

9. Classification of social media
Social media differ in the degree of “social presence”
(i.e. acoustic, visual, and physical contact that can be
achieved) and in the degree of “media richness” they
possess (i.e. the amount of information they allow to
be transmitted in a given time interval)
Social media differ in the Social presence/ Media richness
degree of “self-disclosure” it
requires (i.e. the conscious
or unconscious revelation of
personal information that is
consistent with the image Self-
one would like to give) and disclosure/
the type of self-presentation Self-
it allows (i.e. the desire to presentation
control the impressions
other people form of oneself)
Andreas M. Kaplan 2010 9

10. Collaborative projects
(e.g. Wikipedia)
Collaborative projects enable the joint creation of content by many end-
users. Within collaborative projects one differentiates between wikis (e.g.
Wikipedia), i.e. websites that allow users to add, remove, and change text-
based content, and social bookmarking sites (e.g. Delicious), which enable
the group-based collection and rating of Internet links of media content.
Exemplary marketing functions performed via collaborative projects
E.g. the computer software producer Adobe Systems
improves its marketing intelligence by maintaining a
Marketing research
list of bookmarks to company-related websites and
conversations on Delicious
E.g. Intuit (company developing financial and tax
preparation software) maintains a free collaborative
Relationship marketing
tax resource and research wiki (Tax Almanac) which
helps to create long-term client relationships
E.g. consumers who desire information about a
Communication company or brand often have a first look at the
respective Wikipedia entry
Andreas M. Kaplan 2010 10

11. Blogs and Microblogs
(e.g. Twitter)
Blogs, which represent the earliest form of social media, are special types of
websites that usually display date-stamped entries in reverse chronological
order. Also microblogs (e.g. Twitter) which differ from a traditional blog in
that their content is typically much smaller (nothing but e.g. a short
sentence), belong to this category of social media.
Exemplary marketing functions performed via blogs and microblogs
E.g. the coffeehouse chain Starbucks uses its corporate
Product development blog ‘MyStarbucksIdea’ to collect customer ideas in
order to create new products
E.g. Jonathan Schwartz, CEO of Sun Microsystems,
Communication maintains a personal blog to improve the transparency
of his company
E.g. the low-cost airline Jet Blue Airways sends out its
weekly “cheeps” each Monday morning, i.e. Twitter
Pricing
messages about special promotions on available seats
in flights on the following weekend
Andreas M. Kaplan 2010 11

12. Content communities
(e.g. Youtube)
Content communities offer the possibility of sharing media content between
users. They exist for a wide range of different media types including text
(e.g. Bookcrossing), photos (e.g. FlickR), videos (e.g. Youtube), and PPT
presentations (e.g. Slideshare).
Exemplary marketing functions performed via content communities
E.g. the alcoholic spirits producer, Absolut Wodka,
Relationship marketing strengthens its customer relationships through its own
Youtube channel
E.g. several companies, such as the car manufacturer
Communication BMW, put their company profile in PPT format on
Slideshare ready to use for the interested consumer
E.g. the computer manufacturer Apple (via ITunes)
Distribution proposes consumers to buy their favorite song directly
from Youtube
Andreas M. Kaplan 2010 12

13. Social networking sites
(e.g. Facebook)
Social networking sites (e.g. Facebook, LinkedIn, MySpace) are applications
that enable users to connect by creating personal information profiles,
inviting friends and colleagues to have access to those profiles and sending
e-mails and instant messages between each other.
Exemplary marketing functions performed via social networking sites
E.g. Zappos, online shoe and clothing retailer, analyses
Marketing research consumer comments on their social networking sites for
marketing research purposes
E.g. Warner Brothers, entertainment company,
promoted its movie ‘Fred Claus’ through a Facebook
Communication
profile via which visitors could watch trailers, download
graphics, and play games
E.g. the Internet florist 1-800-Flowers.com offers a
Facebook widget ‘Gimme Love’ whereby users can send
Distribution
virtual bouquets to friends, or be directly transferred to
the company’s website to send real flowers
Andreas M. Kaplan 2010 13

14. Virtual game worlds (MMORPG)
(e.g. World of Warcraft)
Virtual game worlds (e.g. World of Warcraft) are a subgroup of virtual
worlds and require their users to behave according to strict rules in the
context of a massively multiplayer online role-playing game (MMORPG).
Exemplary marketing functions performed via virtual game worlds
E.g. McDonalds enables Sims Online players to operate
a McDonald's kiosk and earn "Simoleons" as a virtual
Marketing research
business. Eating at virtual McDonald's will satisfy a
Sim's hunger and hedonic desires
E.g. car manufacturer Toyota used pictures and
mechanics from the World of Warcraft application in its
Communication
latest Tundra commercial to reach the 2.5 million
players in the US alone
E.g. Pizza Hut permits participants in the EverQuest II
Distribution fantasy, virtual game world to order food for delivery
from Pizza Hut Inc.'s Internet site
Andreas M. Kaplan 2010 14

15. Virtual social worlds
(e.g. Second Life)
Virtual social worlds (e.g. Second Life) are the second subgroup of virtual
worlds and allow residents to choose their behavior more freely and to,
essentially, live a virtual life similar to their real life.
Exemplary marketing functions performed via virtual social worlds
E.g. the hospitality company Starwood Hotels &
Resorts pretested its new hotel ‘Aloft’ virtually within
Marketing research Second Life to obtain feedback of potential customers –
which resulted in the decision to build radios in the
guest rooms’ showers
E.g. the bank Wells Fargo is present on the Active
Communication Worlds, communicating with current and potential
future customers
E.g. shoe and apparel manufacturer Nike sells virtual
Distribution
shoes on the social world There.com
Andreas M. Kaplan 2010 15

16. 1) Definition and importance of Social Media
2) Classification of Social Media
3) Application of Social Media: 10 pieces of advice
Andreas M. Kaplan 2010 16

17. Social media have both a social- and a media-
component
Social media = Media + Social
Media Social
Andreas M. Kaplan 2010 17

18. Ten pieces of advice for companies deciding to
use social media (1)
5 points about using media
Choose carefully
the type of social media
you want to use
Give all employees Pick the application
access to social you want to rely on –
media applications or make your own
Integrate social media Ensure that social
into your traditional media activities are
media plan aligned with each other
Andreas M. Kaplan 2010 18

19. Ten pieces of advice for companies deciding to
use social media (2)
5 points about being social
Be active:
Ensure that your content is fresh
and engage in discussions
Be honest: Be interesting:
Never expect that social media Listen to clients and post
users won’t find out you lying content fitting their expectations
Be unprofessional: Be humble:
Avoid overly-professional Learn the basic rules
Content offerings before participating
Andreas M. Kaplan 2010 19

20. Further reading
• Carter Sandy (2009) The new language of Marketing 2.0 – How to use
angels to energize you market, IBM Press.
• Kaplan, Andreas M., Haenlein, Michael (2011) The early bird catches
the…news: Nine things you should know about micro-blogging, Business
Horizons.
• Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite!
The challenges and opportunities of social media, Business Horizons.
53(1), 59-68.
• Kaplan, Andreas M., Haenlein, Michael (2009) The fairyland of Second
Life – About virtual social worlds and how to use them, Business
Horizons, 52(6), 563-572.
Andreas M. Kaplan 2010 20