Social Media and Marketing
Chapter 18: Social Media and Marketing
Learning Outcomes
At the end of this chapter, you should be able to:
Describe social media, how they are used, and their relations to integrated marketing communications.
Explain how to create a social media campaign.
Evaluate the various methods of measurement for social media.
Explain consumer behavior on social media.
Describe the social media tools in a marketer’s toolbox and how they are useful.
Describe the impact of mobile technology on social media.
Understand the aspects of developing a social media plan.
18-1 What Are Social Media?
Definition and Importance
Social media: Any tool or service that uses the Internet to facilitate conversations.
Social media has revolutionized marketing by allowing two-way communication between businesses and consumers.
There are billions of social media users worldwide.
In the United States, 81 percent of Internet users are social media users, with the largest growth in countries like China and India.
Major platforms include: Facebook (largest), YouTube, Instagram, and Qzone.
Key Insights for Marketers
Marketers do not control content on social media; rather, they can facilitate conversations and engagements.
The amplification of word of mouth through social sharing is significant.
Marketers can listen more effectively to consumer sentiment and feedback.
Social media offers sophisticated ways to measure consumer interaction compared to traditional advertising methods.
Consumer Engagement and Communication
Social media fosters direct and meaningful conversations with customers, influencing relationship building.
This emerging culture may represent a fifth "P" in marketing (People).
Consumers engage in social media primarily to exchange information, collaborate, and converse.
Social Commerce
Social commerce: Interaction and user contributions facilitate online buying/selling of products and services.
Social commerce heavily relies on user-generated content to assist in purchasing decisions.
In the U.S., 96 percent of adults have mobile phones, and 77 percent own smartphones.
Revenue Generation through Social Commerce
Social commerce has generated billions in revenue, with nearly half of online sales occurring through various social media channels:
Peer-to-peer sales platforms (e.g., eBay, Etsy).
Social networking sites driven by sales (e.g., Instagram, Twitter).
Group buying platforms (e.g., Groupon).
Peer recommendation sites (e.g., Yelp, JustBoughtIt).
User-curated shopping sites (e.g., The Fancy, Lyst).
Social shopping sites (e.g., Motilo, GoTryItOn).
Shoppable videos (from retailers like Burberry, Diesel).
Impact on Integrated Marketing Communications
Marketing budgets are increasingly focusing on social media, with digital marketing spending expected to rise.
Marketers must adapt to new consumer interactions, focusing less on entertainment and more on engagement and listening.
Companies gather feedback through social media for marketing campaigns and product development.
Crowdsourcing: Utilizing feedback from many users, particularly heavy users, to influence decision-making and increase brand loyalty.
18-4 Social Behavior of Consumers
Changes in Advertising
Social media has transformed advertising from a mass-media model to one based on relationships and conversations.
Marketers must understand the target consumers, the platforms they use, and their behavior on these platforms.
Types of Social Media Users
Creators: Individuals who produce and share online content (e.g., blogs, videos).
Conversationalists: Users who create content primarily to communicate (e.g., status updates).
Critics: Users posting comments, ratings, and reviews on products/services.
Collectors: Users who gather information and vote on websites using RSS feeds.
Joiners: Individuals maintaining social networking profiles and visiting other sites.
Spectators: Users consuming content (e.g., reading blogs, watching videos); the largest category of users.
Inactives: Users who do not engage with social media in any form, the smallest category.
Influence of Social Media Personalities
Social media celebrities: Influential individuals with large followings (e.g., actors, artists).
Social media stars: Popular users in specific domains (e.g., fashion, gaming).
Micro-influencers: People with smaller yet impactful followings.
18-5 Social Media Tools: Consumer- and Corporate-Generated Content
Blogs
Blog: An interactive journal accessible online, encouraging dialogue between consumers and brands.
Corporate blogs: Sponsored and maintained by companies, fostering relationships and thought leadership.
Noncorporate blogs: Independent and viewed as more authentic, enhancing consumer trust.
Microblogs
Short-form content with strict length limits found on platforms like Twitter.
Companies are shifting from in-depth corporate blogs to quicker, interactive formats on social media platforms.
Social Networks
Platforms for connecting with peers (e.g., Facebook, LinkedIn).
Used to increase awareness, promote products/services, and forge relationships.
Largest social network with over 2 billion users.
Particularly valued by older generations for maintaining personal connections.
Brands can optimize their presence through popular pages which enhance search engine results.
A professional platform for personal branding and recruitment, effectively utilized in B2B marketing.
Company pages allow for promotion of products, services, and company news.
Media Sharing Sites
Platforms (e.g., YouTube, Pinterest) for uploading and sharing multimedia content.
Instagram, particularly popular among younger audiences, supports storytelling through visual content.
Social News Sites
Platforms enabling users to vote content up or down, promoting virality and conversation creation.
Location-Based Social Networking Sites
Platforms that combine social networking with GPS technology to engage local consumers.
Particularly effective for local businesses to establish loyalty through promotions.
Review Sites
Allow users to post and read reviews, crucial for influencing consumer behavior early in the purchasing cycle.
Trust in online reviews significantly surpasses traditional advertising trust levels due to perceived authenticity.
Virtual Worlds and Online Gaming
Offers opportunities for engagement through social gaming platforms, online communities, and advertising in mobile games.
The U.S. gaming market significantly contributes to revenue, especially in mobile segments.
18-2 Creating and Leveraging a Social Media Campaign
Strategy Development
Initiate with a marketing/communications plan that outlines analysis, objectives, and evaluation methods.
Link communication objectives (e.g., improved customer service) to effective social media tools (e.g., Twitter).
Types of Media in Social Campaigns
Owned media: Content generated by the brand (e.g., Facebook posts, webinars).
Paid media: Includes display advertisements and paid search keywords.
Earned media: Refers to organic mentions like viral videos, retweets, and consumer feedback.
Effective Media Utilization
Maximize owned media by expanding digital touch points.
Adapt to the evolving nature of public relations and media influence.
Utilize paid media to catalyze engagement and promote new channels.
Listening Systems
Essential for understanding audience engagement.
Social media monitoring: Process of assessing online mentions of a company or product.
Tools such as Google Alerts, HootSuite, and others can aid in monitoring perspectives and feedback.
18-3 Evaluation and Measurement of Social Media
ROI Measurement Steps
Develop formal measures to gauge the effectiveness of social media efforts:
Identify key performance indicators (KPIs).
Align social media goals with business objectives.
Utilize Google Analytics for tracking conversions.
Assign monetary values to KPIs.
Benchmark performance against competitors.
Key Social Media Metrics
Buzz: Volume of consumer-created posts and impressions across channels.
Interest: Metrics such as likes, followers, and virality rates.
Engagement: Time spent on platforms, including comments, shares, and page views.
Influence: Evaluated by media mentions and blogger engagement.
Sentiment analysis: Measure of positive/negative consumer sentiment trends.
Discussion Points
The challenges surrounding the quantification of social media marketing impact.
The significance of setting KPIs to evaluate social media strategies.
18-6 Social Media and Mobile Technology
Mobile Marketing
Mobile marketing is more accessible, measurable, and yields higher response rates than traditional methods.
Increasing consumer comfort with privacy policies enhances mobile usage.
Common Mobile Marketing Tools
SMS (Short Message Service): 160-character text messages.
MMS (Multimedia Messaging Service): Text messages with multimedia content.
Mobile Websites: Designed for ease of navigation on mobile devices.
Mobile Ads: Ads integrated within mobile environments.
Bluetooth Marketing: Targeted messaging based on user location.
Smartphone Applications: Apps that enhance brand interactions and consumer engagement.
18-7 The Social Media Plan
Stages of Creating a Social Media Plan
Listen to Customers: Analyze customer feedback and engagement.
Set Social Media Objectives: Must be specific and measurable.
Define Strategies: Assess trends and design cohesive messaging.
Identify Target Audience: Align with marketing objectives and analyze the audience's online behavior.
Select Tools and Platforms: Choose relevant social tools based on audience engagement and behavior.
Implement and Monitor Strategy: Continuously evaluate the effectiveness and adapt as necessary.
Trends and Changes in Social Media
The rise of trends like fake news, social commerce, integrated file hosting, augmented reality, digital payments, and online personal shopping subscriptions is reshaping how brands engage with consumers.
Group Activities and Discussions
Activities designed to enhance understanding of social media usage and strategies adopted by brands, such as analysis of campaigns across platforms, user demographic research, and measurement discussions to enhance learning and practical application.