(Stanford BUS-21)Martin Westhead

Mastering Marketing

Communities

How to make money by giving things away

Overview

Motivation

What is a community?

Why do people participate in community?

Communities: Relevance to Free Businesses?

1. Free typically used to create mindshare- Communities amplify mindshare- Drives higher engagement/attention

2. Free products need scalable costs- Community can provide scalable support and

marketing

3. All businesses need to hear from customers- Online community is a great way to do this at scale

WHAT IS A COMMUNITY

What do we mean by community?

94 sociological definitions of community by 1950 Derivation

- communité - old French- communitas (cum, "with/together" + munus, "gift")

Community is NOT defined by technology- Blogs, emails lists, listserv,

Social Network is NOT (necessarily) a community- Facebook friends not working together- Weak second degree connections

Group of people interacting over common interests, goals or passions

(Who get to know each other better over time)

Social Network vs. Community

Social Network Community Structured around 1-1

relationships Weak secondary

relationships Good for sharing activities

Structured around shared purpose

Strong, predictable secondary relationships

Good for activities requiring sharing and cooperation

Types of Online Community

WHY DO PEOPLE PARTICIPATE IN COMMUNITY?

Creators

Critics

Collectors

Joiners

Spectators

Inactives

Social Technographics Ladder – Li and Bernhoff Groundswell

Creators

18% online adult population Publish a blog Publish Web Page Upload video/audio they created Write articles or stories and post them

Critics

25% online adult population Post ratings/reviews of products/services Comment on someone else’s blog Contribute to online forums Contribute to/edit articles on a Wiki

Collectors

12% US online adult population Use RSS feeds Add tags to Web pages or photos “Vote” for Web sites online using Digg, Redit,

Stumbleupon etc.

Joiners

25% US online adult population Maintain a profile on a social networking site Visit social networking sites

Spectators

48% US online adults Read blogs Watch videos of others Listen to podcasts Read online forums Read customer ratings/reviews

Inactives

44 % US online adults

Do none of these activities

RIBS

Remuneration –return on their investment Influence – having a voice in the community Belonging – developing a collective identity Significance – community has impact

“Design to Thrive” - Tharon Howard

Remuneration?

It’s not about money- Lawrence Lessig, Remix – “Money in a sharing economy is

not just inappropriate it is poisonous” It’s about the experience

- A nice restaurant about more than food- Google clean useful UI experience

It’s about Sociability – opportunities to connect Clear benefit to contributing to a community Remuneration is what drives Engagement E.g. Facebook and CNN Obama inauguration

Influence

The need to feel control Ability to shape our environment Historical examples

- Migration of many groups to the USA- Protestants leaving the catholic church

Need for influence in the workplace In an online community

- Am I being heard?- Are my contributions valued?- Do I have a say in how things are run?

Needs on the Ladder

Creators• Shape the thoughts of community• Creations to be read critically but fairly• Need to know they’re being read• Input on policies and governance

Critics • Comments are being viewed• Consensus builders – lining up values• Input on policies and governance

Needs on the Ladder

Inactives• Needs are not met

Collectors

• Collections are valued by community• Correlation of taxonomy

Joiners • Profile is being viewed• Contribution to the membership count

Spectators

• Acknowledgements of their presence

Belonging

Stories Rituals and Events Symbols and Codes

- Red Hat Society- “…verve, humor and

elan…”

- Military Uniform

Significance

Is my community important? Well recognized Established as the “Go-to” place for

users needs Valued by people user respects Populated by people who are serious

and passionate Distinguished as a reputable brand

It is about building gravitas, brand and reputation

You are here

Summary

Motivation

What is a community?

Why do people participate in community?