Social Media Marketing

Dr. Efthymios ConstantinidesDr. Efthymios Constantinides

Assistant Professor Assistant Professor

School of Management and School of Management and GovernanceGovernance

/ NIKOS Institute/ NIKOS Institute

University of TwenteUniversity of Twente

[email protected]@utwente.nl

The Social Web as The Social Web as MarketplaceMarketplace

A Primer in Social Media A Primer in Social Media MarketingMarketing

44thth Mediterranean Conference on Information Mediterranean Conference on Information SystemsSystems

Athens 25 – 27 September 2009Athens 25 – 27 September 2009

E. Constantinides ©E. Constantinides ©

- What is Social Media / Web 2.0?- What are the effects of Social

Media 2.0 on customer behavior?- What is the position of Social

Media as part of the (online) marketing strategy?

- How Social Media applications can be engaged as marketing tools.


Why is Web 2.0 / Social Why is Web 2.0 / Social Media an issue for Media an issue for

Marketers?Marketers?


Marketing isMarketing ischangingchanging

Declining Effects of Declining Effects of Traditional MarketingTraditional Marketing

Strategies / ToolsStrategies / Tools

Increasing CustomerIncreasing CustomerPowerPower

Decreasing CustomerDecreasing CustomerTrustTrust


More Information More Alternatives

Easy Transaction

The Customer has much more Power than ever The Customer has much more Power than ever before: 3 main reasons: the Internet (1995 – before: 3 main reasons: the Internet (1995 – 2005) provided users with2005) provided users with

Source: Glen Urban, 2005


Customer power further increased with Customer power further increased with Social Media / Web 2.0Social Media / Web 2.0


Question 1Question 1

What is Social Media / Web 2.0?

Web 2.0 / Social Media= Web 2.0 / Social Media= User Generated ContentUser Generated Content


Web 2.0: DefinitionWeb 2.0: Definition

Web 2.0 is a collection of open source, interactive and user-controlled online applications expanding the experiences, knowledge and market power of the users as participants in business and social processes. Web 2.0 applications support the creation of informal users’ networks facilitating the flow of ideas and knowledge by allowing the efficient generation, dissemination, sharing and editing/refining of content.

Source: Constantinides and Fountain, 2008


Web Web 2.0 Dimensions2.0 Dimensions

ApplicationApplication types/ types/Social MediaSocial Media

Social EffectsSocial Effects Enabling TechnologiesEnabling Technologies

BlogsSocial Networks

(Content) CommunitiesForums/Bulletin

BoardsContent aggregators

EmpowermentParticipation

OpennessNetworking

ConversationCommunity

Democratization /User control

Open SourceRSSWikis

WidgetsMashups

AJAX

Source: Constantinides and Fountain, 2008



What are the effects of Web 2.0 on customer

behavior?


Traditional MarketingTraditional Marketing

Marketing in Web 1.0 environmentMarketing in Web 1.0 environment

Marketing in Web 2.0 environmentMarketing in Web 2.0 environment


Social Media: Customer generates Social Media: Customer generates contentcontent

> talking and listening online, > talking and listening online, mistrusts our message, trusts mistrusts our message, trusts peer opinionpeer opinion


The new consumer The new consumer influencersinfluencers

Bizrate survey (2007): 59% of users consider Bizrate survey (2007): 59% of users consider customer reviews to be more reliable than customer reviews to be more reliable than those from expertsthose from experts

Study of Deloitte Touche USA: 62% of the US Study of Deloitte Touche USA: 62% of the US consumers read consumer-generated online consumers read consumer-generated online reviews and 98% of them find these reviews reviews and 98% of them find these reviews reliable enoughreliable enough

80% of these consumers say that reading these 80% of these consumers say that reading these reviews has affected their buying intentions reviews has affected their buying intentions

85% of consumers will recommend a company 85% of consumers will recommend a company with which they have a trusted relationship with which they have a trusted relationship (Carlson Marketing)(Carlson Marketing)



What is the position of Web 2.0 as part of the (online) marketing

strategy?


The E-Marketing Strategy The E-Marketing Strategy PyramidPyramid

Product/ service

Marketing/ E-MarketingOrganization

Web 1.0 Web site

Web 2.0Social Media

Level 1Level 1

Level 3Level 3

Level 2Level 2

Level 4Level 4



How Web 2.0 applications can be engaged as marketing tools


Corporate OptionsCorporate Options

Option 1Option 1

The Passive approach/Listening-In: The Passive approach/Listening-In:

Using the Web 2.0 as intelligence Using the Web 2.0 as intelligence source i.e. as source of customer source i.e. as source of customer voice and market information.voice and market information.


Corporate Corporate OptionsOptionsOption 2Option 2

The Active Approach:The Active Approach:

UUsing Web 2.0 applications as PR, Direct sing Web 2.0 applications as PR, Direct Marketing and Customer Influence tool as Marketing and Customer Influence tool as well as means for personalizing the well as means for personalizing the customer experience and tapping customer experience and tapping customer creativity.customer creativity.

4 alternative ways4 alternative ways


Alt 1Alt 1Use Web 2.0 applications as PR and Use Web 2.0 applications as PR and (Direct) Marketing tools(Direct) Marketing tools seeking seeking communication, interaction and communication, interaction and customer feed backcustomer feed back

- Management Blogs:Management Blogs: Jonathan SwartzJonathan Swartz, CEO of Sun , CEO of Sun Microsystems, Steve Jobs, CEO of Apple Computers and Microsystems, Steve Jobs, CEO of Apple Computers and McDonalds Vice President Bob Langert etcMcDonalds Vice President Bob Langert etc

- Employee blogsEmployee blogs- Use Social Media as advertising Use Social Media as advertising channelschannels or PR or PR channelschannels - Combine it with traditional media / interactive marketing Combine it with traditional media / interactive marketing

James Bond James Bond www.youtube.com/watch?v=ddaCvyfAYis

SULTANA fun club in hyves fun club in hyves


Alt 2Alt 2

Find the (online) New Influencers Find the (online) New Influencers and engage them as publicity and engage them as publicity channels: Identify, reach and channels: Identify, reach and inform theminform them

- Review, discuss, comment or recommend your Review, discuss, comment or recommend your productproduct

How? Technorati Who How? Technorati Who areare the the New InfluencersNew Influencers??


Alt 3Alt 3Personalize customer experience Personalize customer experience (UGC)(UGC)

http://coca-http://coca-cola.comcola.com LEGOLEGO The SunThe Sun OnlineOnline 2006 figures: is claiming 56 million new readers to 2006 figures: is claiming 56 million new readers to

its website, 1.2 billion page impressions and around 160 million its website, 1.2 billion page impressions and around 160 million individual readersindividual readers http://http://www.thesun.co.uk/portal/site/mysunwww.thesun.co.uk/portal/site/mysun//

IKEA IKEA iedereniederen = designer = designer Kleenex (myklenextissue.com), photostamps.com Heinz Kleenex (myklenextissue.com), photostamps.com Heinz

(myheinz.com) and M&M (nymms.com) Our Pepsi Can Contest ((myheinz.com) and M&M (nymms.com) Our Pepsi Can Contest (www.designourpepsican.comwww.designourpepsican.com) NIKE) NIKE ((http://nikeid.nike.comhttp://nikeid.nike.comhttp://www.designyourheineken.nl/

Configurators


Alt 4Alt 4Engage the user as co-developer.Engage the user as co-developer. I. Participatory Marketing: I. Participatory Marketing:

Motivate amateurs who create viral films or Motivate amateurs who create viral films or TV commercials TV commercials SONY, Frito-Lay’s, Sunkist or SONY, Frito-Lay’s, Sunkist or evaluate commercials (evaluate commercials (NespressoNespresso) )

II. Co-Creating Products: II. Co-Creating Products: www.threadless.comwww.threadless.com LEGO, LEGO, www.sap.comwww.sap.com

Often Often Idea CompetitionsIdea Competitions Peugeot: invited online Peugeot: invited online car designs, 4 mil visitors. Demo model for car designs, 4 mil visitors. Demo model for exhibitions, in video game exhibitions, in video game

Examples: RedisignMe, Dell, Examples: RedisignMe, Dell, NokiaNokia, , SamsungSamsung, , TomTom, TomTom, HPHP, , TalpaTalpa, Ilse, Google Android KLM, , Ilse, Google Android KLM, Starbucks, P&G, RobecoStarbucks, P&G, Robeco

III. Use personnel experience for better strategic III. Use personnel experience for better strategic decisionsdecisions

• Prediction MarketsPrediction Markets


How firms could profit from the How firms could profit from the Web 2.0 / Social Media Web 2.0 / Social Media

movement?movement? Deal effectively with the first 3 steps of Deal effectively with the first 3 steps of

the E-Marketing Pyramidthe E-Marketing Pyramid Approach Web 2.0 / Social Media as a Approach Web 2.0 / Social Media as a

Strategic opportunityStrategic opportunity Review options (based on the large firm Review options (based on the large firm

experience)experience) Engage Web 2.0 as passive and/or Engage Web 2.0 as passive and/or

active Marketing toolsactive Marketing tools


Thank youThank you

Social Media Marketing

Business

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