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McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
LO1
Define social media and describe how they
differ from traditional advertising media.
LO2
Identify the four major social networks and how
brand managers integrate them into their
organizations’ marketing actions.
16-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
LO3
Describe the differing roles of those receiving
messages through traditional media versus
social media, and the factors brand managers
use to select a social network.
LO4
Explain how social media can produce sales
revenues for a brand and compare the
performance measures linked to inputs or costs
versus outputs or revenues.
16-3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
LO5
Describe how the convergence of the real and
digital worlds affects the future of social media.
16-4
CONNECTING WITH TODAY’S COLLEGE STUDENTS
USING FACEBOOK AND TWITTER
Q) When Kimmy Summers had to
communicate with other students to
recruit volunteers at their respective
universities to help freshmen during
campus move-in day
10 years ago
Now
• Flyers slid under
• Social Media –
dorm-room doors.
Why?
• Phone solicitations • ? Ambassadors
• Ads in their campus
newspapers or on
walls.
What firms? XYZ, …
16-5
UNDERSTANDING SOCIAL MEDIA
LO1
WHAT ARE SOCIAL MEDIA?

How Social Media Came About
• Web 2.0
• Blog – a web page that serves as a publicly accessible personal journal
or online forum for individual & organization (why ?)
• User Generated Content (UGC)

Defining Social Media
16-6
Blog
A blog, which is a contraction of
“web log,” is a web page that
serves as a publicly accessible
personal journal and online forum
for an individual or organization.
16-7
User Generated Content (UGC)
User generated content (UGC)
consists of the various forms of
online media content that are
publicly available and created by
end users.
16-8
Social Media
Social media consist of online
media where users submit
comments, photos, and videos—
often accompanied by
a feedback process to identify
“popular” topics.
16-9
LO1

UNDERSTANDING SOCIAL MEDIA
WHAT ARE SOCIAL MEDIA?
Classifying Social Media
• Media Richness – involves the degree of acoustic, visual, and personal
contact between two communication partners (> telephone, email) :
The higher the media __________________________, the greater
___________________________________________have on each other’s
behavior.
• ? – Individuals in any social media want to make favorable
image and the image is affected by the degree of self-disclosure about
a person’s thoughts, feelings, likes and dislikes.
: Greater self-disclosure is likely to increase one’s influence
on those reached (Not always).
16-
FIGURE 16-1 Social media classified by media
richness and self-disclosure
16-11
LO1
UNDERSTANDING SOCIAL MEDIA
COMPARING SOCIAL AND TRADITIONAL MEDIA

Ability to Reach Both Large and Niche Audiences

Expense and Access

Training and Number of People Involved

Time to Delivery (D: instantly?)

Permanence

Credibility and Social Authority (NYT vs. Sender’s messages)
LO2
FOUR IMPORTANT SOCIAL NETWORKS
FACEBOOK

Facebook: An Overview

Facebook in a Brand Manager’s Strategy
• Facebook Pages: Generate Awareness, promote business
• Make It Familiar, But with a Twist
• Keep It Fresh (# of posts)
• Let Users Get Engaged and Guide Content (e.g. POLL)
16-13
LO4
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
HOW SOCIAL MEDIA PRODUCE SALES
Facebook – uses (?) both CPC & CPM metrics
: in 2012, charged advertisers $8 every 1000 times their sponsored
story ads were viewed or loaded in the main news feed (CPM)

Q) You are a brand manager fro Pepsi or Others. How
would you spend your adv budget, $1 mil?
1) 125 mil views on Facebook
2) two 30 sec TV commercials on American Idol
3) 6.5 full-page color ads in People magazine
16-14
Facebook
Facebook is a website where
users may create a personal
profile, add other users as friends,
and exchange comments, photos,
videos, and “likes” with them.
16-15
FIGURE 16-2 The Bitter Girls Facebook Page
shows elements of interest to its manager
Notifications
People who take
a specific, measurable
action on the page
Insights
Analytics that include
information on users
and interactions
Profile & Cover Image
Brand identifying image;
usually includes a logo or
promotional image
People Like This
The number of
people who have
clicked the Like
Facebook Page Post
Messages created by a
brand manager that
appear in the News Feed
of people who like the page
Post Likes
The number of
people who Like
a specific post
16-16
FIGURE 16-3 How brand managers can use
four social networks in developing their
marketing strategies
16-17
LO2
FOUR IMPORTANT SOCIAL NETWORKS
TWITTER

Twitter: An Overview

Twitter in a Brand Manager’s Strategy – Q) extensive comments?
• Generate ? ? – by developing a official
profile, recruiting followers, and showing pics
• Follow the Twitter profiles that mention their
product and monitor what being said
• Respond to User Criticism
• Tweet on Topics of Interest to Consumers
16-18
Twitter
Twitter is a website that enables
users to send and receive
“tweets,” messages up to 140
characters long.
16-19
LO2
FOUR IMPORTANT SOCIAL NETWORKS
LINKEDIN

LinkedIn: An Overview

LinkedIn in a Brand Manager’s Strategy
• Promote the Brand in ? ways
• For B2B image building & networking with Industry-Related Groups
• Business Development to find sales leads & vendors and to organize
focus groups
• Can demonstrate organization’s expertise & create discussion groups
LinkedIn
LinkedIn is a business-oriented
website that lets users post their
professional profiles to connect to
a network of businesspeople.
16-21
LO2
FOUR IMPORTANT SOCIAL NETWORKS
YOUTUBE
OK Go Music Video

YouTube: An Overview

YouTube in a Brand Manager’s Strategy
• Create a Channel with ? Words
• Use YouTube Analytics to ?
16-22
YouTube
YouTube is a video-sharing
website in which users can
upload, distribute, view, and
comment on videos.
16-23
LO2
MARKETING MATTERS
Other Favorite Social Networks?
16-24
LO3
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
SOCIAL MEDIA & THE STRATEGIC MARKETING PROCESS

Traditional Media: ? Receivers

Social Media: seek to ensure that the message doesn’t ? with an
individual receiver. The ? is to reach …
Active
Receivers
?
Delighted
“?”
: to friends
& to advertiser
16-25
LO3
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
SELECTING THE SOCIAL NETWORK

How Brand Managers ?:
• 1) Number of Daily Visitors
• 2) Characteristics of the Visitors

Recent Growth of the 4 Social Networks

Audience Data for Social Networks
16-26
FIGURE 16-4 Monthly unique U.S. visits to
four social networking sites: Facebook,
YouTube, Twitter, and LinkedIn
16-27
LO4
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
MEASURING SOCIAL MEDIA PROGRAM RESULTS

Performance Measures Linked to Inputs or
Costs (and Output or Revenue)
• Cost per Action (CPA)
• Cost per Thousand (CPM)
• Cost per Click (CPC)
FIGURE 16-5 Performance measures for
social networks linked mainly to inputs or
costs, as seen by a brand manager
16-29
LO4
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
MEASURING SOCIAL MEDIA PROGRAM RESULTS

Performance Measures
Linked to Outputs or Revenues
• Fans
• Share of Voice
• Page Views
• Visitors
• Unique Visitors
• Average Page Views
per Visitors
• Interaction Rate
• Click-Through Rate
• Fan Source
16-30
LO4

Specialized Focus for Other Social Networks:
A virtual pinborad and content-sharing social network, allows
people to pin or share image of their favorite things such as
clothing, craft ideas, home décor and recipes
(Q) who & how benefits?
16-31
LO4
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
GREENPEACE VS. NESTLÉ’S KIT KAT

The Background

Greenpeaces’ Actions and Results

Nestle’s Overreaction and Its Effects
16-32
LO4
INTEGRATING SOCIAL MEDIA INTO
TODAY’S MARKETING STRATEGIES
GREENPEACE VS. NESTLÉ’S KIT KAT

Social Media Lessons for Brand
Managers
• Respond with Transparency and
an Approachable Tone
• Communicate with Key Influencers
Using Fcebook, Twitter, Blogs, etc.
16-33
LO5
THE FUTURE: SOCIAL MEDIA +
SMARTPHONES + EXOTIC APPS
THE CONVERGENCE OF REAL & DIGITAL WORLDS

The Convergence – of the real and digital worlds has resulted in
increasing use of mobile marketing

The Devices

Apps – small, downloadable software programs that can run on
smartphones and tablet devices: Q) Benefits?
16-34
FIGURE 16-6 An array of diverse elements
leads to a convergence of the real and
digital worlds that trigger marketing actions
16-36
LO5
MARKETING MATTERS
Coolest, Wildest, and Best Apps?
Tiny
Wings
16-37
LO5
THE FUTURE: SOCIAL MEDIA +
SMARTPHONES + EXOTIC APPS
MOBILE MARKETING: TIGHTENING LINKS TO ACTIONS

Price-Comparison Searches

Location-Based Promotions

Loyalty Programs
16-38
LO5
THE FUTURE: SOCIAL MEDIA +
SMARTPHONES + EXOTIC APPS
WHERE TO NOW?

Personalization of Social Media Connections

Purchases Made with Fobs and Smartphones

Socially-Networked Communities

Measurement of Social Media ROI
16-39
LO5
THE FUTURE: SOCIAL MEDIA +
SMARTPHONES + EXOTIC APPS
THE GLOBAL MARKETING REACH OF SOCIAL MEDIA

Example: T-Mobile Promotion
16-40
VIDEO CASE 16
AOI MARKETING: USING FACEBOOK
®
TO LAUNCH BITTER GIRLS
16-41
VIDEO CASE 16
BITTER GIRLS
1. (a) What is the image you first
have when you hear the brand
name “Bitter Girls”? What are
both (b) the strengths and (c)
the weaknesses in linking this
brand name to the concept of
empowering tweens and teens?
16-42
VIDEO CASE 16
BITTER GIRLS
2. How can social media be used
to drive traffic to the Bitter Girls
website?
16-43
VIDEO CASE 16
BITTER GIRLS
3. How can Bitter Girls (a) bring
people from its website to its
Facebook Page and (b) increase
their involvement and
participation on its Facebook
Page? (c) Why are these
important goals?
16-44
VIDEO CASE 16
BITTER GIRLS
4. (a) How can Bitter Girls find new
likes? (b) On what other
Facebook Pages should Bitter
Girls advertise?
16-45
VIDEO CASE 16
BITTER GIRLS
5. (a) What products besides
apparel and mobile phone cases
might Bitter Girls license? (b)
How can Bitter Girls promote its
products through Facebook?
16-46
Apps
Apps are small, downloadable
software programs that can run on
smartphones and tablet devices.
16-47