Social Media Marketing

by: Berk TUNCALI

Lets first start with marketing…

What is Marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.(American Marketing Association, 2013)

Now, lets focus on the Social Media

What is Social Media Marketing?

Social media is defined as websites and computer programs that allow people to communicate and share;

o informationo ideasopersonal messages, andoother content

over the internet.Carrying out marketing activities over this playing field is what is referred to as the Social Media Marketing.

What is Social Media Marketing? Contd.

Social media comes in many forms, but all of them are related: blogs, forums, podcasts, photo sharing, social bookmarking, widgets, videos, and many more.

It is a fusion of sociology and technology

Social Media Marketing is a form of internet marketing that implements various social media networks in order to achieve marketing communication and branding goals. Social media marketing primarily covers activities involving sharing of content for marketing.

Social Media Marketing is not;• Just another website

• Series of posts one after the other

• One-way conversation

The Communication Model• There are 2 types of communication models;

- Basic Communication

This is generally a one-way process with the message moving from sender to receiver.

- Interactive Communication

This communication goes two ways, a dialogue if you will, and this is where marketing communication is headed.

Basic Communication Model

Feedback is obtained by monitoring the receiver’s response to the message.

Moriarty, Advertising Principlesand Practices, 2009

Interactive Communication Model

The source and receiver change positions as the message bounces back and forth between them.

Moriarty, Advertising Principlesand Practices, 2009

Now, it’s time for some History…

How it started?

History part 1 Throughout history, people came up with various ways of communicating through:

o Fire Smokeo Pigeons o Telegrapho Light signalsoThe post

Getting responses a few hundred years ago meant waiting for months or a year. Thankfully humans never stopped looking for a faster method to communicate.

It all started with the first e-mail in the world….

History part 2

The 21st century brought us the internet. Social networking was born in 1971, when the first email was sent by Ray Tomlinson to himself. The two computers were sitting right next to each other. The message said “qwertyuiop’.

History part 3

In 1978 Usenet, the earliest online bulletin board of the time, was created. Users posted news, articles and funny posts. This concept soon inspired the ‘Groups’ feature we know today; such as Yahoo! Groups, Google Groups and Facebook Groups. The first ever version of instant messaging was in 1988, called IRC.

History part 3

In 1978 Usenet, the earliest online bulletin board of the time, was created. Users posted news, articles and funny posts. This concept soon inspired the ‘Groups’ feature we know today; such as Yahoo! Groups, Google Groups and Facebook Groups. The first ever version of instant messaging was in 1988, called IRC.

In 1994, the first social networking site was created, Geocities. It allowed users to create and customize their own web sites, grouping them into different ‘cities’ based on the site’s content. The following year, TheGlobe.com launched to public, giving users the ability to interact with people who have the same hobbies and interests, and to publish their own content.

History part 4 A few years later, AOL Instant Messenger launched. Instant messaging was born, giving users the freedom to chat with friends, and create a profile. The member profiles allowed its users to write a biography and share details about themselves. The profiles were searchable so people could look your profile up.

SixDegrees.com was one of the very earliest social networking sites, but did not gain the same success. The idea is based on the theory that people are separated by no more than six degrees from one another.

This growth was followed by Friendster, MySpace, LinkedIn, Facebook, Twitter and many others…

How Big is the Social Media?

Source: SBR Technologies

How Big is the Social Media?

• The population of the world is 7,095,476,818 people and growing.

• 37 % of the people in the world uses the internet. This is equal to 2.64 billion people.

•26% of the people in the world are active on the social media networks. That means 1.85 billion people.

The 10 Biggest Social Networks

F a c e b o o k T w i t t e r L i n k e d i n P i n t e r e s t G o o g l e + T u m b l r I n s t a g r a m V K F l i c k r V i n e

900 Mil.

310 Mil.

255 Mil. 250 Mil.

120 Mil. 110 Mil. 100 Mil. 80 Mil. 65 Mil.

42 Mil.

NUMBER of Monthly Unique Visitors

Source: Alexa Rank(2014)

Lets focus on the largest social network in the world …

Why do businesses utilize social media marketing?

Why do businesses utilize social media marketing?

• To increase their salesAccording to LinkedIn, “82% report that it is effective for lead generation.”

• To increase awareness“100% of business decision-makers use social media for work purposes,” according to Forrester.

•To gain CredibilityAccording to an Omnibus Report 68% of Facebook users say a recommendation from a Facebook friend would make them more likely to buy a specific product.

•Competitive intelligenceIt can be clearly seen what competitors are up to in regard to social media marketing.

• Improved brand loyaltyAccording to a report published by Texas Tech university, brands who engage on social media channels enjoy higher loyalty from their customers.

•Increase web site trafficIn a study done by Balihoo Infographics, it was found that 15% of consumers search for business websites on Facebook

Why do businesses utilize social media marketing?

• See what consumers are thinking about your business

• Better Search Engine Rankings

• Save on advertising costs

• Faster customer service and better relationships

• Targeting

Why do businesses utilize social media marketing?

Consumers Vs. Businesses

Source: IBM From social mediato Social CRM?

How the Average Consumer have changed

• Seeks quality

• More involved

• Detail oriented

• Communicates

How the Average Consumer have changed

Use social media extensively.

Communicate at the marketplace.

Seeks values in purchases.

Consumer Habits A study by Ipsos found out that the average social network user spends 3.6 hours on social media every day.

Considering you may only be awake for 16 hours each day, that means nearly 25 percent of our waking time is spent on Facebook, Twitter, and the rest.

The age breakdown shows the average daily use for younger social media users is even higher.

4.2 hours per day - age 35 and under

3.1 hours per day - 35-49-year-olds

2.8 hours per day - age 50 and over

Popularity of the Social media• Politicians use the social media regularly

• Artists and singers also use social media extensively

• Even The White House has its own social media page.

How does Social Media Marketing relate to Word Of Mouth• Social Media Marketing is Word-of-Mouth Marketing with high technology.

• Technology has changed the way people connect, discover, and share information.

• Social media is the technology that connects people—whether it’s to share content or just to chat.

Social media marketing is the way to use that technology to build relationships, drive repeat business and attract new customers through friends sharing with friends.

75% of people are somewhat or highly likely to share content they like online with friends, co-workers or family—49% do this at least weekly.

Source: Chadwick Martin Bailey Consumer Pulse 2010

The Marketing Mix – 4 P’s – into 4 C’sOne of the famously known and effective tools in marketing is the concept of the Marketing Mix

Also known as the 4 P’s, which was introduced by Edmund Jerome McCarthy in his book called ‘‘Basic Marketing. A Managerial Approach’’

•Product

•Price

•Place

•Promotion

However, this was a business oriented model. It focused on the business instead of the consumer.

The Marketing Mix – 4 P’s – into 4 C’sOne of the famously known and effective tools in marketing is the concept of the Marketing Mix

Also known as the 4 P’s, which was introduced by Edmund Jerome McCarthy in his book called ‘‘Basic Marketing. A Managerial Approach’’

•Product

•Price

•Place

•Promotion

However, this was a business oriented model. It focused on the business instead of the consumer.

- Consumer

- Cost

- Convenience

- Communication

The Marketing Mix – 4 P’s – into 4 C’s

• Promotion

• Price

• Place• Product

Consumer

Convenience

CommunicationCost

Source: Lauterborn, B., 1990. New Marketing Litany: Four p's passe; C-words take over

“Consumer” instead of “Products”

Rather than pre-defining the customer into a product, the consumer model tries satisfying the customer’s wants and needs.

Companies cannot develop products and then try to sell them to a mass market.

They would need to study the consumer needs and wants in detail and carry out production accordingly.

Therefore the Consumer model should be seen as a two way dialogue between the customer and the business.

“Cost” instead of “Price”

The price is only one part of the cost to satisfy.

Affordability, satisfaction and value are all parts of the cost.

Businesses has to consider what will the consumer’s total, or real, cost be for obtaining your product or service. It has to be realized that Cost reflects the cost of using the product or service as well.

Example: If a business sells hamburgers, it has to consider the

cost of consumers driving to the restaurant. This means that the businesses will be thinking not only by the cost of production and their own profit but also take a more consumer oriented approach.

“Convenience” instead of “Place”

Convenience affects the perceived value of a product.

How easily a consumer might purchase a product or a service is crucial for every business. This can be both geographical convenience and online (internet) convenience.

This brings about the fact that every business must know how each subset of the market prefers to buy whether on the internet, from a catalogue, by telephone, using credit cards and etc.

“Communication” instead of “Promotion”

Communication is as much about listening to the consumers as it is talking to them.

Traditional mode of promotions mostly involve a one way communication which is vertical in structure and almost no feedback is received from consumers.

We are at the age of technology and communication. Engaging with consumers through meaningful communication builds customer confidence which also drives sales.

Social media is a powerful two way communication tool.

The Marketing Mix – 4 P’s – into 4 C’sDue to the advancements in technology, the 4P’s of marketing are becoming less relevant and less effective to the ‘‘new consumers’’ in comparison with ‘‘old consumers’’.

Consumers today are able to connect anywhere at any time

They are changing both their shopping behaviour and their values

This brings about the need to switch to the 4C’s model

Brand Advocates During the time which word of mouth was used extensively, businesses relied on people known as ‘WOM Agents’.

These were Word of Mouth Agents hired by businesses to spread the word for them.

Today, businesses use Social Media Marketing. The playing field has changed, and therefore the name as well.

Now, there are ‘Brand Advocates’ and ‘Brand Ambassadors’.

Brand Advocates Brand Advocates are consumers who have good relations and loyalty to the organization that they are willing to support the brand online.

This creates free and honest advertisement.

There are many examples of this over the social media.

Companies support these consumers and they give all the necessities to them in order to advocate their brand.

Mobile phone advantage

• Informs consumers instantly

• Mobile, no fixed location

• No boundaries (even when you sleep)

• Camera option available on the go

• People are fee to publish and write about however they feel at that time

•No one can block, change or delete the information.

Some very effective uses of Social Media Marketing