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Social Media Marketingin a Nutshell

Faculty Club Business & Science Meeting April 2013

Dr. Efthymios Constantinides

Assistant Professor Marketing / E-Media

University of Twente

Faculty of Management and Governance / NIKOS Institute

e.constantinides@utwente.nl

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Questions keeping Marketers busy• How can I survive / grow in a fast evolving, global

marketplace? • What is the meaning and value of the New Media /

Social Media and new technologies for me?• What is the impact of the New Media on the Old

Media, on Customers and Marketing? • How to deal with the Empowered Customer?• Is my brand still my property ?. • Is the Market and the Marketing Paradigm changing?• What next?

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Digitalization and new ICTs: Dramatic shift in marketing practice

• Internet: e-commerce threat for many traditional branches

• Mobile internet and Smatrtphone apps disrupt industries

• “Wearable” Technologies

• Gamification : Value Pursuit of Accenture

• New Logistics Technologies (ex RFID)

• New Marketing models in retail: Tesco

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Agenda

• What is Social Media?• How Important is Social Media for

Marketing?• Effects of Social Media on Marketing• Effects of Social Media on Customer Buying

Behavior• Social Media Marketing Strategies

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What is Social Media?

• Everyone knows Facebook, Twitter, LinkedIn, Hyves and maybe Google+, MySpace

But Social Media is more:

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Citizen Journalism: Theuniversityblog Paper.li

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Knowledge sharing: Wikipedia Quora EDX Slideshare

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Video and photo sharing: Vimeo Youtube Flickr Instagram

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Product Review sites Epinions YouTube TripadvisorTypophile

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Academic Social Networks: Academia Research Gate

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Social Bookmarking Delicious, Digg StumbleUpon AddThis

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Common aspects of Social Media

• Domain: Interactive Internet / Web 2.0

• Special characteristics: Open access, interactive, content: customer generated

• One-to-one / one-to-many / many-to-many

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Web 2.0 Dimensions

Application typesSOCIAL MEDIA

Social Effects Enabling Technologies

• Weblogs / Blogs• Social Networks• Online Communities• Online Forums and

Bulletin Boards• Content aggregators

• Empowerment• Participation• Openness• Networking• Conversation• Community• Democratization /• User control

• Open Source• RSS• Wikis• Widgets• Mashups• AJAX• ………

Source: Constantinides and Fountain, 2008

Web 2.0 and Social Media

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Agenda

• What is Social Media?• How Important is Social Media for

Marketing?• Effects of Social Media on Marketing• Effects of Social Media on Customer Buying

Behavior• Social Media Marketing Strategies

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Social Media: 92% of Top-100 businesses and millions of consumers involved

Newcom Research & Consultancy 2013

20122008 2009 2010 2011

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Agenda

• What is Social Media?• How Important is Social Media for

Marketing?• Effects of Social Media on Marketing• Effects of social Media on Customer Behavior• Social Media Marketing Strategies

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Power to the people: Social media activism

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2. No More Secrets

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3. Unhappy customers can cause substatial damage

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But my customer is happy!(don’t be so sure!)

• Example 1: Kryptonite

• Example 2: AOL

• Example 3: UA

• Example 4: FedEx

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Agenda

• What is Social Media?• How Important is Social Media for

Marketing?• Effects of Social Media on Marketing• Effects of social Media on Customer Buying

Behavior• Social Media Marketing Strategies

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Customer: Needs Black Box: Processing Response: Decision

(Traditional) 4Ps Marketing Mix StimuliCONTROLLABLE

Other StimuliUNCONTROLLABLE

Traditional Marketing Environment3.500 BC – 1994

Source: Model of Customer Behavior ( Kotler and Keller, Marketing Management, 2012, p. 183)

Web 1.0 Marketing Environment:“Broadcasting” Internet 1994 - 2004

“Broadcasting” InternetWeb 1.0Online ExperienceCONTROLLABLE

Web 2.0 Marketing Environment:Interactive Internet 2004 - today

Interactive InternetWeb 2.0 Social Media / CGCUNCONTROLLABLEE. Constantinides © 30

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Agenda

• What is Social Media?• How Important is Social Media for

Marketing?• Effects of Social Media on Marketing• Effects of Social Media on Customer Buying

Behavior• Social Media Marketing Strategies

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The Marketing Process in 2013

Product/ service

Marketing/ E-MarketingOrganization

Web 1.0 Web site

Web 2.0Social Media

Level 1

Level 3

Level 2

Level 4

• Traditional Marketing Theory:

Orchestrating The 4Ps

•4S Web Marketing-Mix Framework

• Strategy•Online Experience •Customer Behavior

• Customer Behavior•Social Media as Marketing

Tools

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SOCIAL MEDIA MARKETING

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Social Media Applications

Blogs Online Communities

Social Networks

Forums/ Bulletin Boards

Content Aggregators

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Use of Social Media as Marketing Tools

Passive: Listen the customer’s voiceActive: Engage the customer

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Marketing

Objectives

Listening In

COOSTO

PR /Direct Marketing

CRM

Reach the Influencers

Personalize Experience

Tapping Creativity (Co-Innovation)

Social Media Applications

HOW SOCIAL IS YOUR BRAND?

TwitterReach

Social Media Marketing examples

ConfiguratorDatabase

Web logsMobileCrunch Direct2Dell

Clorox

DISTIMO

SOOCIAL

Online Communities Threadless

KLM1 KLM 2

TechnotatiTwittorati

NIKE

Social NetworksStarbucks

AppleAppStore

BestBuy

1-800flowers

McDonalds

Starbucks

FACEBOOK

Forums /

B. BoardsEpinions

Reviewcenter

AmericanExp

AA

Content Aggregators BizReport

BuzzCupture

DELL RSS

Grolsch

MyMuesliDesign yourHeineken

PASSIVE

ACTIVE

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Co-Innovation Examples

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Co-Innovation Examples• Starbucks Build Your Drink My Starbucks Idea• Dell Computers Idea Storm• LEGO CUUSOO• NOKIA Developer• OSRAM Emotionalize your Light• P&G Swiffer BOEING newairplane.com• KLM SuperFly Fly 2Miami• HEINZ Commercial SONY Commercial• Innocentive Challenges

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Main Challenges in Social Media Marketing• Manage the Total Customer Experience: Social Media,

Web and traditional media: cross-media strategies• Renewed emphasis on the Customer: Understand the

New Customer– Win Customer Trust and Create Customer Advocates (but also become Advocate of

your Customers)– Harness the Crowd Wisdom: The customer as Co-Innovator– From Consumer (segments) to Consumer Networks

• Keep up with technology developments: mobile, wearable technologies, RFID, Cloud, Semantic Web

• Be ready for the Big Data - A marketing nightmare or the new competitive advantage?

- Will facts now definitively defeat intuition?

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THANK YOU

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