1. The document discusses how social media can be used as marketing tools for small and medium-sized enterprises (SMEs). It provides examples of SMEs that have successfully used social media for marketing. 2. Some effective social media marketing strategies discussed are using social media for public relations, reaching influencers, personalizing customer experiences, and tapping into customer creativity. 3. Case studies are presented of companies like Blendtec and Red Scarf Equestrian that saw increased sales and brand awareness by actively engaging customers on social media.

1. Dr. Efthymios Constantinides Assistant Professor Marketing / e-Media School of Management and Governance NIKOS / UNIVERSITY OF TWENTE [email_address] Social Media as Marketing Tools: Valuable for SME’s? March 17, 2011 School of Management & Governance

2. AGENDA Introduction Web 2.0 and Social Media What is Social Media Marketing SMEs experiences from the field

3. Social Media research in UT / MB / NIKOS SOMERE: a junior research center (BS / M&G) Master Research on Web 2.0 / Social Media 3 PhDs Own research: User behavior in online social enviroments, Social market segments, influence of social media on buying behavior. Ex. Adoption and Market Segments of SNS users in NL; Use of Social Media by WVO 5/6 children and effect on choice of HE study and University Bottom line: How marketers can effectively engage the Internet and the Social Media as Marketing Tools

5. What is Web 2.0 and Social Media?

8. What is Social Media Marketing? The Definitive End of Push Marketing!

9. The power of the Social Media

10. The Internet and the Social Media are changing the marketing practice

11. Marketing Is Changing Declining Effects of Traditional Marketing Model Increasing Customer Power Decreasing Customer Trust

12. 1. The importance of the Marketing model is declining

15. 2. The buying / decision making process is changing

16. Traditional Marketing Marketing in Web 1.0 environment Marketing in Web 2.0 environment The way customers make decisions is changing: Model of Customer Behavior ( Kotler et al. Marketing Management, 2009) © E. Constantinides

17. Customer Empowerment

18. Customers become Brand Ambassadors

20. … but also Brand Detractors

22. And it can get even worst!

23. Example 1: Kryptonite bicycle locks Example 2: AOL Example 3: United Airlines

24. Customer trust to business declines: The new influencers are the peers 84% of Americans influenced by online customer reviews ( Opinion research Co , April 2009) Bizrate survey (2007): 59% of users consider customer reviews to be more reliable than those from experts Study of Deloitte Touche USA: 62% of the US consumers read consumer-generated online reviews and 98% of them find these reviews reliable enough 80% of these consumers say that reading these reviews has affected their buying intentions 85% of consumers will recommend a company with which they have a trusted relationship (Carlson Marketing)

25. Source: Constantinides and Fountain, 2008 Web 2.0 Dimensions SOCIAL MEDIA Social Effects Enabling Technologies Blogs Social Networking Sites Online Communities Forums/Bulletin Boards Content aggregators Empowerment Participation Openness Networking Conversation Community Democratization / User control Open Source RSS Wikis Widgets Mashups AJAX

26. Weblogs  SNS  Online communities  Forums  Content aggregators  © E. Constantinides

27. Social Media Marketing

28. Turning the Social Media Threat in a Strategic Opportunity: The (E-)Marketing Strategy Product/ service Marketing/ E-Marketing Organization Web 1.0 Web site Web 2.0 Social Media Level 1 Level 3 Level 2 Level 4

29. Social Media as Marketing Tools: Generic approaches © E. Constantinides ACTIVE PASSIVE Marketing Strategy Listening In PR / Direct Marketing /CS Reach the Influencers Personalize Experience Tapping Creativity Social Media HOW SOCIAL IS YOUR BRAND? Web logs MobileCrunch Direct2Dell Mashable Toyota Communities / Microblogs Wecando Threadless Twittorati NIKE Heinz NOKIA Dell Social Networks H&M Hyves AA McDonalds Hyves XXX LEGO Forums / B. Boards Epinions Reviewcenter AmericanExp KLM BookScanner Content Aggregators / V.O.C. Monitoring BizReport BuzzCupture DELL RSS Grolsch MyMuesli Innocentive

30. Online customer intelligence

31. A few cases How SMEs can harness the Social Media: Examples from the field

32. Social Media as MarketingTools: Generic approaches ACTIVE © E. Constantinides PASSIVE Marketing Objective Listening In PR / Direct Marketing/ CS Reach the Influencers Personalize Experience Tapping Creativity Application Type Web logs XXX XXX XXX XXX XXX Communities / Microblogs XXX XXX XXX XXX XXX XXX Social Networks XXX XXX XXX XXX XXX Forums / B. Boards XXX XXX XXX Content Aggregators / V.O.C. Monitoring XXX XXX XXX XXX XXX XXX

33. Social Media as PR tool : KLM

35. Case 1: Blendtec

36. Will it Blend? Facts Before October 2006, Blendtec had spent more than a decade selling blenders to the commercial market (restaurants and so on) but had little name recognition with mainstream consumers. “ Will It Blend” became a viral phenomenon generating 100 mil views, presence in mass media, about 700.000 fans and national distribution, sales up by 600% since the launch of the videos

37. Case 2: Red Scarf Equestrian

38. Joanna Wiseberg

39. Facts Red Scarf Equestrian is an one woman Toronto-based business making stylish handbags and other luxury goods for horse lovers. Problem: Niche of a Niche, need to go global, the market in Canada is too small Two years after launch Ms. Wiseberg was invited to showcase her goods at elite places like the Cannes Film Festival, The Monaco Grand Prix and a luxury goods conference in China (NYT 29 Sept. 2010) Business strategy: LinkedIn. Joining groups related to her field and participating in discussions. She is now member of more than a dozen groups including Luxury and Lifestyle Professionals, Luxury Addict Groups, Woman 2 Woman Business, and Horse Lovers of the Business World Source: NYT 29 Sept. 2010

40. Case 3: The Dessert Gallery Facebook Experiment Utpal M. Dholakia and Emily Durham HBR March 2010

41. We began by e-mailing a survey to 13,270 customers from DG’s mailing list to gather store evaluations and data on shopping behavior; 689 people responded. Then, we launched the Facebook page and invited everyone on the mailing list to become a fan. DG updated its page several times a week with pictures of goodies, news about contests and promotions, links to favorable reviews, and introductions to DG employees. Three months later, we resurveyed customers, this time receiving 1,067 responses from DG’s Facebook fans, Facebook users who did not become fans, and customers not on Facebook. We analyzed the data sets separately and then compared participants in the first survey with those in the second who had become DG fans. As it turned out, Facebook changed customer behavior for the better. People who had replied to both surveys and had become fans ended up being DG’s best customers: Though they spent about the same amount of money per visit, they increased their store visits per month after becoming Facebook fans and generated more positive word of mouth than nonfans. They went to DG 20% more often than nonfans and gave the store the highest share of their overall dining-out dollars. They were the most likely to recommend DG to friends and had the highest average Net Promoter Score—75, compared with 53 for Facebook users who were not fans and 66 for customers not on Facebook. DG fans also reported significantly greater emotional attachment to DG—3.4 on a four-point scale, compared with 3.0 for other customers. Additionally, fans were the most likely to say they chose DG over other establishments whenever possible.

43. Social Media and CRM / customer service

48. Social Media as MarketingTools: Generic approaches ACTIVE © E. Constantinides PASSIVE Marketing Objective Listening In PR / Direct Marketing/ CS Reach the Influencers Personalize Experience Tapping Creativity Application Type Web logs XXX XXX XXX XXX XXX Communities / Microblogs XXX XXX XXX XXX XXX XXX Social Networks XXX XXX XXX XXX XXX Forums / B. Boards XXX XXX XXX Content Aggregators / V.O.C. Monitoring XXX XXX XXX XXX XXX XXX

49. What my students did Soocial.com Distimo.com

51. © E. ConstantinidesGeneral Introduction to the University of Twente

52. Social Media as MarketingTools: Generic approaches ACTIVE © E. Constantinides PASSIVE Marketing Objective Listening In PR / Direct Marketing/ CS Reach the Influencers Personalize Experience Tapping Creativity Application Type Web logs XXX XXX XXX XXX XXX Communities / Microblogs XXX XXX XXX XXX XXX XXX Social Networks XXX XXX XXX XXX XXX Forums / B. Boards XXX XXX XXX Content Aggregators / V.O.C. Monitoring XXX XXX XXX XXX XXX XXX

56. Social Media as MarketingTools: Generic approaches ACTIVE © E. Constantinides PASSIVE Marketing Objective Listening In PR / Direct Marketing/ CS Reach the Influencers Personalize Experience Tapping Creativity Application Type Web logs XXX XXX XXX XXX XXX Communities / Microblogs XXX XXX XXX XXX XXX XXX Social Networks XXX XXX XXX XXX XXX Forums / B. Boards XXX XXX XXX Content Aggregators / V.O.C. Monitoring XXX XXX XXX XXX XXX XXX

57. Seth Haber

58. Conclusions Declining Effects of Traditional Marketing Increasing Customer Power, transparency, alternatives customer generated content / Decreasing Customer Trust Social Media: New Tools of Marketing for SMEs Listen to customer voice PR, Advertising Reach the New Influencers Mass Customization Distributed co-creation

59. Thank you [email_address]