Social Media Marketing

AARHUS

UNIVERSITY

ASB AU MAPP

SOCIAL MEDIA MARKETING

Jacob L. Orquin, Ph.D.

Department of Business Administration

Aarhus University

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SOCIAL MEDIA

Still no consensus on how to categorize social media …

www.fredcavazza.net/2008/06/09/social-media-landscape

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MYTHS ABOUT SOCIAL MEDIA MARKETING

Social media marketing is free

there is no free lunch, there has never been one, and there will never be one …

Social media marketing can create sales

well, in some cases it can create leads or sign-ups. but direct sales, hardly.

Social media marketing can create viral spread of marketing

messages

viral spread is seldom as ”viral” as we would like to believe,..

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WHAT IS SOCIAL MEDIA MARKETING?

Is it social media marketing to place you adds on facebook?

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REALLY IT’S ABOUT …

… using social network relations for marketing purposes.

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IT’S ALSO ABOUT …

… SOCIAL IMITATION

Van den Bulte and Wuyts 2007 / nlpweeklymagazine.com/uploads/nlp1071.jpg

Awereness and interest

Belief updating

Normative pressure

Competetive concerns

Complementary network effects

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NETWORK EFFECTS

What positive network effects could your company benefit from?

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SOCIAL ROLES

Who would you want to activate through social media marketing?

Salesmen

Mavens

Connectors

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TALK MATTERS

AIDA + some talking = social feedback cycle

Evans (2008)

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SOCIAL FEEDBACK CYCLE

Decision making influenced by social media cyclus by Constantinides and

Fountain (2008).

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SOCIAL MEDIA MARKETING PERSPECTIVES

PR, reputation management Direct marketing

advertising

Relationship marketing

user-innovation Customer service

Marketing research P2P support

listening-in

Marketing Communication

Customer Service

Marketing Research

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USE OF SOCIAL MEDIA MARKETING

McKinsey . ( 2007 ) ‘ How business are using Web 2.0: A McKinsey global survey ’ , The McKinsey Quarterly

mckinseyquarterly.com/Marketing/How_businesses_are_using_Web_20_A_McKinsey_Global_Survey_1913_abstract

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USE OF SOCIAL MEDIA MARKETING

McKinsey . ( 2007 ) ‘ How business are using Web 2.0: A McKinsey global survey ’ , The McKinsey Quarterly

mckinseyquarterly.com/Marketing/How_businesses_are_using_Web_20_A_McKinsey_Global_Survey_1913_abstract

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CUSTOMER SERVICE COMMUNITIES

90 – 9 -1 rule: 90 % reads answers, 9 % write answers, 1 % are superusers

and generate most of the activity.

community.dell.com

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REVIEWS / RATINGS

User generated content and reviews can support the consumer decision

making in a positive direction.

Trustpilot.dk / skatepro.dk

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BLOGGING

The personality and credibility of the blogger will be transmitted to the

company which creates a unique possibility for improving customer or

stakeholder relations.

www.arla.dk

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APPLICATIONS

One of these applications outperformed the other 10 times across 7

different European countries. Guess which one?

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SOCIAL NETWORKS

A profile at linkedin, facebok, naymz, plaxo etc. can be used for both

personal and company branding.

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RELATIONSHIP MARKETING

The company profile on a social network can function as a platform for

marketing events, products and coordinating stakeholder activities.

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VIRAL MARKETING

Most ”viral marketing” campaigns need massive seeding.

http://blogs.hillandknowlton.com/meghanstuyvenberg/files/2009/08/viral-marketing.jpg

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THE TIPPING POINT

1,001 = viral expansion loop?

www.fastcompany.com/magazine/125/nings-infinite-ambition.html?page=0%2C0

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SOCIAL MEDIA STRATEGIES

putting social media to work (according to Forrester)

1. Listening

2. Talking

3. Engaging/energizing

4. Supporting

5. Innovation

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LISTENING-IN

What does you brand mean to your customers?

Understand how the talk changes

Save analysis resources while increasing insights

Identify the sources of influence

Manage PR crises

Generate new product ideas

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LISTENING-IN THROUGH COMMUNITIES

It might be worth the trouble if your employer is called Proctor & Gamble …

the costs associated in maintaining a community site are massive.

Procter & Gamble’s beinggirl.dk

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TALKING THROUGH SOCIAL MEDIA

Viral marketing

Involvement in social networks

Corporate blogging

Create a community

viral video for Nokia

Microsoft employee blog

Procter & Gamble’s

beinggirl.dk

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ENGAGE AND ENERGIZE

Do you have loyal or enthusiastic customers that would endorse your

brand? - Reviews and communities

How can you create value for your customers that enhances product

experience? - Social networks end platforms

Telmore to Telmore

application Roskilde Festival camp

planner application

Trustpilot company reviews

and ratings

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INNOVATION THROUGH SOCIAL MEDIA

aka. Crowdsourcing …

Lego Mindstorms community

My Starbucks Idea community

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METHODS AND PROCESSES

managing social media marketing

1. Forrester’s POST model

2. Dave Evans’ approach

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FORRESTER’S POST MODEL

people

objectives

strategy

technology

Who are they and what are your customers

ready for?

What objectives should you aim at?

How will you acomplish your goals?

What apllications should you use?

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DAVE EVAN’S APPROACH

Simple overview:

I. Analysis of social feedback cycle, touchpoint mapping, Net Promoter

Score

II. Mapping of social media channels

III. Identify business goals, KPI’s and ROI for social media campaigns

IV. Write the social media marketing plan

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MEASURING SOCIAL MEDIA

measuring social media marketing

1. Measuring content

2. Measuring relevance

3. Measuring impact

4. ROI on social media marketing

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WHAT TO MEASURE?

• Social media monitoring (content)

• Web analytics (relevance)

• Pipeline metrics (impact)

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MEASURING CONTENT

What are they talking about and how much are they talking?

Social media monitoring: Buzzmetrics, Cymphony, Google blogsearch,

Blogpulse.com

Facebook Lexicon Google blogsearch

Blogpulse.com

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MEASURING RELEVANCE

Do social media activities lead to any increase in interest or user

engagement on corporate web site or in search activity?

Google analytics

Google insights

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MEASURING IMPACT

Do the increased interest and engagement generate sales leads or

increased turnover?

Focus on conversion rate and

average sales value.

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ROI ON SOCIAL MEDIA MARKETING

42 % - 100 % ROI during first year, perhaps you should invest in stock

options instead?

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THE QUORN CASE

Doing Social Media Marketing using the POST method:

1. People

2. Objectives

3. Strategy

4. Technology

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4 STAGES

Following the POST method:

People: who are they?

Objectives: should we listen or talk to them?

Strategy: how do we reach our goals?

Technology: what applications should we use?

Meat free frozen foods

introduced in the British

market in 1985, US market

2002

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POST - PEOPLE

Social technology profile

http://www.forrester.com/empowered/tool_consumer.html

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POST - PEOPLE

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POST - PEOPLE

Yes they are already out there discussing your products whether you like it

or not!

A positive discussion of

Quorn on Facebook

A group who wants to make

Quorn vegan

A group who thinks that Quorn

is an evil nazi product

A positive discussion on a

Danish vegetarian forum

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POST - OBJECTIVES

What would be relevant and feasible for Quorn?

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POST - STRATEGY

How should we engage our customers and how should this relationship

develop over time?

What could Quorn gain from social media marketing?

What’s the relevance of KPI’s for social media marketing?

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POST - TECHNOLOGY

What applications do we want to use?

Where are the customers and how do we want to reach them?

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SOCIAL MEDIA MARKETING REFERENCES

Li, C., & Bernoff, J. (2008). Groundswell: Winning in a world transformed by

social technologies. Boston, MA: Harvard Business Press.

Evans, D. (2008). Social Media Marketing: An hour a day. Wiley Publishing,

Inc. Indianapolis

Shuen, A. (2008). Web 2.0: A strategy guide. O'Reilly Media, Inc.

Constantinides, E. (2004). Influencing the online consumer’s behavior: The

web experience. Internet Research, 14(2), 111-126.

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CONTACT

Jacob L Orquin, Ph.D.

Department of Business Administration

Aarhus University

E-mail: [email protected]

Check out my company:

www.userpilot.dk