Strategic Business LeadershipExecutive Education Seminar
Bringing ‘Market’ into Marketing:Value Creation and Social Media
Raj AgnihotriAugust 2014
2
• Industrial Experience in Sales & Marketing with Start-ups to Major Corporations
• Author of Sales-Force Automation and CRM Implementation
• James Comer Award for the Best Contribution to Sales Management Theory
• Excellence in Teaching Award from Marketing Management Association
Dr. Raj AgnihotriFreeman Professor of Sales Leadership Chair of Marketing Department
3
2
1Understanding the current market environment
Exploring social media as a business tool
Outlining a social media startegy
Discussiontopics
Today’s Agenda
What Would You Do?
“A global bank executive recently described to us a challenge for our times. It turns out that a customer who normally would qualify for the lowest level of service has an impressive 100,000 followers on Twitter. The bank isn’t doing much yet with social media and has no formula for adapting it to particular customers, but the executive still wondered whether the customer’s “influence” might merit special treatment.”
From: What’s Your Social Media Strategy?Wilson and colleagues (2011), Harvard Business Review
CustomerValue
Organization’sSocial Capital
Social Capital… What?
Communication to maintain Social Structure
Communication to Build & Maintain Trust
Communication to Share the Vision
Social MediaUse
(Kothandaraman, Agnihotri, and Kashyap 2011)
Communication-Social Capital Link
Now the Question Becomes…
How to facilitate this link?
Organization ConsumerProductt
Organization Productt+1Consumer
Value Co-Creation
Value Co-Creation
Market Evolution
CollaboratorCollaborator
Collaborator Collaborator
(Agnihotri and Hu 2009)
Co-Evolution
EXAMPLES: http://cloroxconnects.com/pages/homehttp://mystarbucksidea.force.com/
A Strategic Approach
(From: Agnihotri et al. 2012)
InformationSharing
CustomerService
TrustBuilding
SOCIAL CONTENT ENABLER[Blogs, Micro-blogging (Twitter), Etc.]
SOCIAL NETWORK ENABLER[Networking Websites (Facebook, LinkedIn),
Online communities/ Discussion forums]
ORGANIZATION ACTIONS
Customer Perceived
Value
OrganizationPerceived
Value
Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content
Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections
VALUE CREATION
https://www-304.ibm.com/connections/blogs/
http://www.youtube.com/watch?feature=player_embedded&v=F5CF1FEm_oA#t=12
Work within your group/table and come up with the ‘social media marketing strategy’ for Ford Fiesta,that has potential to offer organizational and customer value.
Let’s Put Theory into Action
This is How They Did It
http://inside.flipboard.com/2013/09/27/on-the-red-couch-with-fords-social-media-chief-scott-monty/
Target Market
Generation Y/ Millennial
Find
a fit
Empty Nesters/Baby Boomers
Content Creators Content Consumers
Different language Different mix of media
Different ratio of visuals and textBlog
Social Revenue
http://fiestamovement.com/
• Ford Fiesta Movement, a campaign to promote the Fiesta model
• Giving cars to 100 social “agents” and let them promote vehicle through Social Media
• All without spending a dollar on traditional media
Results of six month campaign - 4.3 million YouTube views - 500,000+ Flickr views- 3 million+ Twitter impression- 50,000 interested potential customers, 97% of
which don’t own a Ford currently.
How are you going to measure the ROI when implementing your Social Media Strategy?
ROI: commonly used metrics*
73%Customer Acquisition rate
*Gleansight: social media marketing, November 2010
Organizations can set milestones in terms of –i) Marketing efforts (e.g., number of tweets posted per week,
number of blogs written and followed, etc.) ii) Outcomes (e.g., number of leads generated through blogs)
Performance evaluation should include -iii) Objective (e.g., changes in service support costs) iv) Subjective criteria (e.g., number of referrals and/or positive
recommendations by existing customers through social networks)
86%Audience growth rate
-e.g., # of facebook fans, twitter followers, etc., per
week
77%Volume of relevant
posts/comments
81%Customer engagement rate
-e.g., # of click-thrus, registrations, etc., per week
73%Customer Acquisition rate
• Do your research before investing in SM
• Remember the ‘Market’ in marketing strategy
• Create value
….and finally
• Connect with people because nothing can
replace the - personal touch
Tips to Remember
Thank You and Good Luck!