MARKETING & SOCIAL MEDIAA FIVE PART PRESENTATION BY AILEEN, JAMES, NOEMI & TANITA

Common social media platforms used in marketing for businesses are…

FACEBOOK• Founded on February 4, 2004, by

Mark Zuckerberg

• By 2007, Facebook had 100,000 business pages (pages which allowed companies to promote themselves and attract customers).

• By 2014, Facebook’s COO declared they had fulfilled their vision of connecting the world

BING• Bing was unveiled by Microsoft

CEO Steve Ballmer on May 28, 2009

• In 2012, Bing search engine can now have friends appear alongside search results, an effort to make the site more social.

• The ability to recall an ad improves 55% if your friend’s name or picture is beside that ad, this is called social context.

References include computerworld.com and techcrumch.com

Marketing PlanA marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts

Strategy enhancementStrategic marketing integrates consumer research, product enhancement and new product development, and marketing to increase sales and market share

Result measuringMeasuring the contribution that a given marketing program has on revenue and profits

MARKETING PROCESS

Textbook Reference

Local Businesses

Financial

publics

Inte

rnal

Pub

lics

Local P

ublics

Social Media

MARKETING Strategy

Suppliers• Vendors• Advertising

Agencies

MarketingIntermediaries • Banks• Insurance firms• PR Firms

Competitors• Companies that

compete for the same consumer dollars.

• Companies that offer similar services

Publics• Political• Religious • Cultural

Allows businesses to integrate all of these at once Textbook Reference

Businesses & Social MediaMcDonald’s

www.mcdonalds.com• McDonalds was one of the first businesses

to begin using social media since Facebook’s inception in 2004

• First ones to start using the “check in” feature in 2010

• Facebook was one of the major sources of marketing and advertising for large businesses

• Today, McDonald’s has 31,842,589 followers

• Although sales have dropped 16%, McDonalds is still #1 among young adults 16 to 34

Burger Kingwww.bk.com

• Burger King did not arrive on the Facebook scene as quickly as McDonalds did, currently having 7210535 followers

• Facebook helped the BK chain do a major brand and image change

• Social Media allows for businesses to get feedback on how business is going, taking it back to the step of result measuring.

• Between 2004 & 2008 BK struggled to find their image, today they rank #3 in fast food coming in behind Wendy’s

References include burgerbusiness.com, forbes.com & bluewolf.com

Cost of Facebook• Businesses pay FB $1 B

per quarter to advertise• McDonalds operates on a

cost per click basis for advertising

• FB offers different budget categories for businesses

• McDonald’s has an annual global advertising budget of $2.3 billion

Cost of Bing• Bing operates on a keyword

search cocept• The business sets its budget

on how much they are willing to pay to be shown when someone types a relatable word in the search box

• Burger King uses Bing to advertise and uses the Bing Rewards Program to customers who use the search engine

• BK has an annual global advertising budget of $4.2 billion

How much do businesses spend on

References include burgerbusiness.com

Gender Age IncomeTime

Spent on Site

Most Popular

Locations

Average $ spent

• McD does not have a specific gender. They are popular among men & women.

McD average consumer age is 16 to 34. McD average FB follower is 40

McD avg consumer income is $60K. The more they make, the more they eat out.

McD consumers spend 12 mins on their FB page and 14 mins on their website

McD most popular locations are in neighborhoods with schools, businesses & apartment complexes

McD sells 75 burgers a second with a monthly check avg of $14.

BK is also popular among men & women

BK avg age of consumer is 18 to 34.

BK has an avg consumer income of $29K.

BK consumers spend 8 mins on their FB page and 18 mins on their website

BK most popular locations are in urban neighborhoods

BK sells more $1 burgers than value meals with a monthly check avg of $6

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Demographics that affect McDonalds and Burger King

References include entrepreneur.com, businessweekly.com, fastfoodmarketing.org, burgerbusiness.com

FacebookKeeps businesses such as McD and BK at TOMA(TOP OF MIND AWARENESS)

CONSUMER SEARCHBing

Uses AIDA to influence consumer’s searches on the internet(ATTENTION, INTEREST, DESIRE, ACTION)

NEED OR WANT IS DETERMINED

CONSUMER CHOOSES

BUSINESS FEELS IMPACT OF

CONSUMER DECISION

Social Media has a major effect on business growth and sustainability

References include socialmediaexamner.com

Is Social Media controlling our minds?

• The first thing a business needs to do is brand in order to get fans on Facebook. This is referred to as connecting.

• Once that is accomplished, they create unique content and provide value for the attention of those fans. This is known as engaging.

• The third thing businesses want to do is get their fans to influence their friends. Influencing their friends, really, is the key to marketing through social media.

• It’s the newest form of “word of mouth”

References include canadianmarketingassociation.com

Benefits Restaurants benefiting from Social

Media:Starbucks - 37 Million FB Followers

17 Million Bing Reward Members

McDonalds- 31 Million FB Follower30 Million Bing Reward

Members

Burger King- 7 Million FB Followers11 Million Bing Reward

Members

Chick-fil-A- 7 Million FB FollowersNOT a Bing Rewards

Affiliate

Outback- 2 Million FB FollowersNOT a Bing Rewards

Affiliate

•Is a useful tool for seeing what users are saying about that particular brand

•A great resource for generating brand awareness

•Provides potential to build the relationship with the consumer

•Ability to offer discounts, promotions, and reward programs

References include marketingjive.com, nationalrestaurantnews.com, facebook.com, and bing.com

What could go wrong?

REVIEWSOne negative review can have long term

effects on a business

DEMOGRAPHYIf not careful, the

wrong type of customer could be

attracted

COMPETITIONCompeting

businesses can attempt to discredit

one another

CONTENTPosts or

advertisements can be offensive to a

particular demographic

REWARDSReward redemptions are not always available in all locations

POTENTIAL PROBLEMS

Reference includes forbes.com

$1 Million grand prize

with purchase

CONTENT UPDATESHow often are these deals & promotions offered?

Chain-wide sales declined

6.1% after promotion was over

Collective Revenue in 2013 was $1.52B

McDonalds offers a yearly

monopoly promotion

YearlyPromotion

Maximum Exposure

References include Forbes.com and cbsnews.com

Free Fruit and Berry Oatmeal for breakfast purchases from 8AM to 9AM.

Free Medium Fries with the purchase of the new $2 Jalapeno Double.

MCDONALDS

The fruit and berry oatmeal is a healthy choice, however, its only 8.9 oz.

Free fries are nice, but purchase of the value meal is a difference of $1.33. Most people want something to drink with their meal.

PROS/CONS

Get the new Mushroom & Swiss Big King and a second burger of your choice for $5.

Free Medium Onion Rings with the purchase of the new Ultimate Bacon Cheeseburger (for a limited time only)

BURGER KING

BOGO is good, but a drink or side is extra causing consumer to spend more than $5.

Average consumer enjoys fries with their burger, not onion rings.

PROS/CONS

CURRENT PROMOTIONS BEING OFFERED AS OF 6 AUG 2014

References include burgerbusiness.com