Chapter 7Social Commerce: Foundations,

Social Marketing, and Advertising

Learning Objectives1. Define social commerce and describe its roots

and evolution.2. Describe the scope, drivers, and content of the

social commerce field. 3. Summarize the benefits and limitations of social

commerce. 4. Describe the major models of social shopping.5. Explain how advertising and promotions are

conducted in social networking environments.6. Describe how social networking can facilitate

customer service, customer support, and CRM.

Social Commerce: Definitions and

Evolution• Definitions and Characteristics

o * Social commerce (SC)• The Evolution of Social Commerce

The Foundation of Social Commerce

The Major Roots of Social Commerce

The Content of the Social

Commerce Field• The Landscape and Major

Components of the Field• *Social Media Marketing (SMM)• *Enterprise 2.0

oExamples of Social Enterprise Applications

The Major Dimensions of Social

Commerce

The Benefits and Limitations of Social

Commerce• Benefits to Customers • Benefits to Retailers• Benefits to Other Types of Enterprises• The Social Business: An IBM Approach

o * Social business

• New or Improved Business Modelso * Business model

• Concerns and Limitations of Conducting Social Commerce

Social Shopping: Concepts, Benefits, and

Models• Definitions, and Drivers of Social

Shoppingo * Social shoppingoThe Drivers of Social CommerceoConcepts and Content of Social

ShoppingoWhy Shoppers Go Social• * Communal shopping

Social Shopping: Concepts, Benefits, and

Modelso The Roles in Social Commerce

• Connectors• Salesmen• Seekers• Mavens• Self-sufficients• Unclassifieds

o Benefits of Social Shoppingo What Components to Expect in a Social Shopping

Site• Visual Sharing• Online discussions• Journals of products and their use• Guides

Social Shopping: Concepts, Benefits, and

Models• Traditional E-Commerce Sites with

Social Media Additions• The Major Types and Models of

Social Shoppingo Group Buyingo Deal Purchases (Flash Sales)o Online Shopping Together in Real-Time

• Shopping Together Sites• Co-Shopping

o Online Shopping Communities

Social Shopping: Concepts, Benefits, and

Modelso Common Features in Communities and

Forums• User forums• User galleries• Idea boards• Q&A forums• Brand communities• Comprehensive (multipurpose communities)

o Examples of Shopping Communities• Polyvore.com• Kaboodle -- a Unique Social Shopping

Community• Private Online Shopping Clubs

Social Shopping: Concepts, Benefits, and

Models• Other Innovative Models

o Find what your friends are buyingo Waneloo Filtering consumers reviewso RealGiftso Virtual giftso Social auctionso Getting help from friendso Shopping without leaving Facebooko Crowdsourcing shopping adviceo Helping bloggers sell productso Event shopping

Social Shopping: Concepts, Benefits, and

Models• Social Shopping Aids: From

Recommendations to Reviews, Ratings, and Marketplaceso Recommendations in Social Commerceo Ratings and Reviewso Social Recommendations and Referralso Illustrative Examples of Recommendation Siteso Example: How Intuit Corp. Helps Consumers with

Recommendationso Concerns about Social Reviews and Recommendations

• Other Shopping Aids and Serviceso Yelp: The Shoppers’ Best Helpero Collaborative Reviewso Dealing with Complaints

Social Shopping: Concepts, Benefits, and

Models• Social Marketplaces and Direct Sales

o * Social marketplaceoDirect Sales from Within Social

NetworksoSocially-Oriented Person to Person

(P2P) Selling, Buying, Renting, or Bartering• P2P Lending• P2P Sharing (also known as collaborative

consumption)

Social Shopping: Concepts, Benefits, and

Models• Shopping for Virtual Goods in a Virtual

Economyo * Virtual goodso * Virtual Economyo Why People Buy Virtual Goods

• Generating special experiences• Generating emotions• Small purchases make people happier• Virtual goods are low cost and low hassle

• Real-Time Online Shopping• Social Shopping in the Near Future

Social Advertising: From Viral

Advertising to Location-Based

Advertisement/Marketing• Social Ads and Social Apps• Viral (Word-of-Mouth) Marketing

and Social Networkingo * Viral marketingo * Viral Bloggingo Other Viral Marketing Methods

• Location-Based Advertisement and Social Networks

Social Advertising: From Viral

Advertising to Location-Based

Advertisement/Marketing• Geosocial Networks

o * Geosocial networkingo The Technology for Location-Based Social

Networks• How LBS Works

o Foursquare and its Competitors • How Foursquare Works• Changes in Business Model• Competition: Brightkite and Facebook Places

o Strategy for Small Businesses in LBSo Privacy Concerns for LBS

• Opt-In Versus Op-Out

Social Advertising: From Viral

Advertising to Location-Based

Advertisement/Marketing• Using YouTube and Other Social Presentation

Sites for Advertisingo * Viral Videos

• Using Twitter as an Advertising and Marketing Toolo Recruiting and finding jobso Brand displayo Market researcho Delivering offerso Collaborationo Customer serviceo Using professionals to enhance company presence on

Twittero Cost effectiveness

Social Advertising: From Viral

Advertising to Location-Based

Advertisement/Marketing• Other Innovative Ways to Advertise

in Social Mediao The Changing Rules of Brandingo Using Blogso Using Couponso Mobile Advertising

Social Customer Service and CRM

• How Does Social Networking Empower Customers?o Social CRM

• * Customer relationship management (CRM)• * Social customer relationship management (SCRM)

o The Components of Social CRM

• How to Serve the Social Customerso * Social customerso Methods and Guidelines for Social Customer

Service

• Methods and Guidelines for Social Customer Service

• The Evolution of Social CRM

The Elements of Social CRM

Social Customer Service and CRM

• Cipriani’s Multidimensional Presentationo The Landscapeo Touch Pointso Evolution of Business Processes in

CRMo The Evolution of Technologyo Organizational Mindseto Conclusions

The Landscape of CRM vs. SCRM

Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

Touch Points in CRM versus SCRM

Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

The Evolution of Business Processes in

SCRM

Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

The Evolution of Technology from CRM to

SCRM

Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

The Organizational Mindset for SCRM

Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.

Social Customer Service and CRM

• Implementation of Social Customer Service and CRM

• Some Recent Applicationso Social Networking Helps Customer

Service in Small Companies

• Reputation Management System

Managerial Issues1. How will social commerce influence businesses?2. Do companies need to sponsor a social network?3. Is it wise for a small business to be on Facebook?4. How to deal with false reviews and fake

followers?5. Should we embark on selling via social

networking?

Summary1. Social commerce definition and evolution.2. The scope, content, and drivers of social

commerce3. Benefits and limitations of social

commerce.4. Describe social shopping.5. How advertisings and promotions are

conducted in social networking.6. Conducting social customer service and

CRM.