Social media marketing - MBA RU

Why?

Wednesday, January 19, 2011

Social Media Marketing

ณัฐพัชญ์ วงษ์เหรียญทองProduct & Service Marketing ManagerRS DigitalBlogger:• Appreview.in.th • Barkandbite.net• Dramalessons.net

Twitter: @nuttaputch (4,236 Followers)

Fan Page:•Appreview •Barkandbite•Drama Arts Chula•... and 7 more

What is Social Media?

What is Social Network?

What is Social Commerce?

The importance of being social




750 Million Users

Social Network History

Social Media

Social media are media for social interaction.

6

Social MediaOnline tools for sharing and

discussing information

16

Social Media is changing media users into media producers...

...Journalists ...Experts ...DJs

...Broadcasters ...Publishers ...Critics

...Editors ...Archivists ...Network Owners

Effect to Business...?

The First Age

Uni-Directional

TV, Radio, OOH

1990-1995

The Second Age

Bi-Directional

Interactive

1995-2002

The Third Age

Multi-Directional

Social Media

2002-Present


T THEN THE FUNNEL METAPHORFor years, marketers assumed that consumers started with a large number of potential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or service itself.

NOW THE CONSUMER DECISION JOURNEYNew research shows that rather than systematically narrowing their choices, consumers add and subtract brands from a group under consideration during an extended evaluation phase. After purchase, they often enter into an open-ended relationship with the brand, sharing their experience with it online.

Consider & BuyMarketers often overem-phasize the “consider” and

“buy” stages of the journey, allocating more resources than they should to build-ing awareness through advertising and encourag-ing purchase with retail promotions.

Evaluate & AdvocateNew media make the

“evaluate” and “advocate” stages increasingly relevant. Marketing investments that help consumers navigate the evaluation process and then spread positive word of mouth about the brands they choose can be as important as building awareness and driving purchase.

Bond If consumers’ bond with a brand is strong enough, they repurchase it without cycling through the earlier decision-journey stages.

MANY BRANDS

FEWER BRANDS

FINAL CHOICE

BUYBUY

EVALUATE

ENJOYADVOCATE

CONSIDER

BUY

BONDTHE LOYALTY LOOP

THE INTERNET has upended how consumers engage with brands. It is transforming the economics of mar-keting and making obsolete many of the function’s traditional strategies and structures. For marketers, the old way of doing business is unsustainable.

Consider this: Not long ago, a car buyer would methodically pare down the available choices un-til he arrived at the one that best met his criteria. A dealer would reel him in and make the sale. The buyer’s relationship with both the dealer and the manufacturer would typically dissipate after the purchase. But today, consumers are promiscuous in their brand relationships: They connect with myriad brands—through new media channels be-yond the manufacturer’s and the retailer’s control or even knowledge—and evaluate a shifting array of them, often expanding the pool before narrowing it. After a purchase these consumers may remain ag-gressively engaged, publicly promoting or assailing the products they’ve bought, collaborating in the brands’ development, and challenging and shaping their meaning.

Consumers still want a clear brand promise and o!erings they value. What has changed is when—at what touch points—they are most open to in"uence, and how you can interact with them at those points. In the past, marketing strategies that put the lion’s share of resources into building brand awareness and then opening wallets at the point of purchase worked pretty well. But touch points have changed in both number and nature, requiring a major adjust-ment to realign marketers’ strategy and budgets with where consumers are actually spending their time.

Block That MetaphorMarketers have long used the famous funnel meta-phor to think about touch points: Consumers would start at the wide end of the funnel with many brands in mind and narrow them down to a final choice. Companies have traditionally used paid-media push marketing at a few well-de#ned points along the funnel to build awareness, drive consideration, and ultimately inspire purchase. But the metaphor fails to capture the shifting nature of consumer engagement.

In the June 2009 issue of McKinsey Quarterly, my colleague David Court and three coauthors intro-duced a more nuanced view of how consumers en-gage with brands: the “consumer decision journey” (CDJ). They developed their model from a study of the purchase decisions of nearly 20,000 consumers

SPOTLIGHT ON SOCIAL MEDIA AND THE NEW RULES OF BRANDING

64 Harvard Business Review December 2010

worldmagsworldmags

worldmags

source: Harvard Business Review Dec 2010

In Past....


T THEN THE FUNNEL METAPHORFor years, marketers assumed that consumers started with a large number of potential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or service itself.

NOW THE CONSUMER DECISION JOURNEYNew research shows that rather than systematically narrowing their choices, consumers add and subtract brands from a group under consideration during an extended evaluation phase. After purchase, they often enter into an open-ended relationship with the brand, sharing their experience with it online.

Consider & BuyMarketers often overem-phasize the “consider” and

“buy” stages of the journey, allocating more resources than they should to build-ing awareness through advertising and encourag-ing purchase with retail promotions.

Evaluate & AdvocateNew media make the

“evaluate” and “advocate” stages increasingly relevant. Marketing investments that help consumers navigate the evaluation process and then spread positive word of mouth about the brands they choose can be as important as building awareness and driving purchase.

Bond If consumers’ bond with a brand is strong enough, they repurchase it without cycling through the earlier decision-journey stages.

MANY BRANDS

FEWER BRANDS

FINAL CHOICE

BUYBUY

EVALUATE

ENJOYADVOCATE

CONSIDER

BUY

BONDTHE LOYALTY LOOP

THE INTERNET has upended how consumers engage with brands. It is transforming the economics of mar-keting and making obsolete many of the function’s traditional strategies and structures. For marketers, the old way of doing business is unsustainable.

Consider this: Not long ago, a car buyer would methodically pare down the available choices un-til he arrived at the one that best met his criteria. A dealer would reel him in and make the sale. The buyer’s relationship with both the dealer and the manufacturer would typically dissipate after the purchase. But today, consumers are promiscuous in their brand relationships: They connect with myriad brands—through new media channels be-yond the manufacturer’s and the retailer’s control or even knowledge—and evaluate a shifting array of them, often expanding the pool before narrowing it. After a purchase these consumers may remain ag-gressively engaged, publicly promoting or assailing the products they’ve bought, collaborating in the brands’ development, and challenging and shaping their meaning.

Consumers still want a clear brand promise and o!erings they value. What has changed is when—at what touch points—they are most open to in"uence, and how you can interact with them at those points. In the past, marketing strategies that put the lion’s share of resources into building brand awareness and then opening wallets at the point of purchase worked pretty well. But touch points have changed in both number and nature, requiring a major adjust-ment to realign marketers’ strategy and budgets with where consumers are actually spending their time.

Block That MetaphorMarketers have long used the famous funnel meta-phor to think about touch points: Consumers would start at the wide end of the funnel with many brands in mind and narrow them down to a final choice. Companies have traditionally used paid-media push marketing at a few well-de#ned points along the funnel to build awareness, drive consideration, and ultimately inspire purchase. But the metaphor fails to capture the shifting nature of consumer engagement.

In the June 2009 issue of McKinsey Quarterly, my colleague David Court and three coauthors intro-duced a more nuanced view of how consumers en-gage with brands: the “consumer decision journey” (CDJ). They developed their model from a study of the purchase decisions of nearly 20,000 consumers

SPOTLIGHT ON SOCIAL MEDIA AND THE NEW RULES OF BRANDING

64 Harvard Business Review December 2010

worldmagsworldmags

worldmags

source: Harvard Business Review Dec 2010

Present...


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Figure 1.1 shows the classic purchase funnel, connected to the Social Web through “digital word-of-mouth” (aka social media). This loop—from expectation to trial to rating to sharing the actual experience—is now a part of most every purchase or conversion process. Whether consumer-facing, B2B, for-profit or nonprofit, people are turning to people like themselves for the information they need to make smart choices. These new sources of information are looked to by consumers for guidance alongside traditional media; advertising and traditional communications are still very much a part of the overall marketing mix. The result is a new vetting that is impact-ing—sometimes positively, sometimes negatively—the efforts of businesses and organi-zations to grow their markets.

CONSIDERATION

MARKETER-GENERATED USER-GENERATED

PURCHASE USE FORM OPINION TALKAWARENESS

Figure 1.1 The Social Feedback Cycle

Open Access to Information

The Social Feedback Cycle is important to understand because it forms the basis of social business. What the social feedback loop really represents is the way in which Internet-based publishing and social technology has connected people around business or business-like activities. This new social connectivity applies between a business and its customers (B2C), between other businesses (B2B), between customers themselves, as is the case in support communities and similar social applications, and just as well between employees.

As such, this more widespread sharing has exposed information more broadly. Information that previously was available to only a selected or privileged class of indi-viduals is now open to all. Say you wanted information about a hotel or vacation rental property: Unless you were lucky enough to have a friend within your personal social circle with specific knowledge applicable to your planned vacation, you had to consult a travel agent and basically accept whatever it was that you were told. Otherwise, you faced a mountain of work doing research yourself rather than hoping blindly for a good

source: Social Media Marketing, Dave Evans


Brand is what..........a) You say

b) Your customer say

20

80% of CEO’s believe their company offers a superior experience...

...8% of their customers agree

Lake Wobegon Effect

What social media can do for Marketing?







1. Advertising & Awareness2. Public Relation 3. Customer Relationship Management4. Social Monitoring5. Market Research


Social Commerce

Social commerce is a subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services

Helping people buy where they connect and connect where they buy

Social commerce is not new... (coined by Yahoo 2005)

3

FTOAF (forward to a friend), referral programs

ratings & reviews

social platforms (forums, blogs,bookmarking)

realtime social shopping, Facebook Connect

Future: mobile,sCRM, curated marketplaces

It’s about people (influencing people), not technology

9

The social psychology of shopping can help

10

The scarcity cue; scarce stuff is good stuff

17

The COOKIE JAR EXPERIMENT 1975

Using the scarcity cue to cue purchase decisions

18

Using the scarcity cue to cue purchase decisions

21

The affinity cue; follow those you like

22

The NIXON KENNEDY DEBATE 1960

Using the affinity cue to cue purchase decisions

26

The consistency cue; be consistent

27

Drive Carefully

The BIG BILLBOaRD EXPERIMENT 1966

Using the consistency cue to cue purchase decisions

29

The authority cue; follow the leader

30

The SHock Box Experiment 1961

Using the authority cue to cue purchase decisions

31

The reciprocity cue; payback favours

34

The COKE AND RAFFLE TICKET EXPERIMENT 1975

Using the reciprocity cue to cue purchase decisions

36

The popularity cue; follow the crowd

38

The 42ND Street Experiment 1969

Using the popularity cue to cue purchase decisions

40

What’s Happening Now?

Slide Credit:

http://www.slideshare.net/paulsmarsden

Social Commerce: by Paul Marsden

