social media as marketing tools: valuable for smes?

School of Management & Governance

Dr. Efthymios Constantinides Assistant Professor Marketing / e-MediaSchool of Management and Governance

NIKOS / UNIVERSITY OF TWENTEe.constantinides@utwente.nl

Social Media as Marketing Tools: Social Media as Marketing Tools: Valuable for SME’s?Valuable for SME’s?March 17, 2011March 17, 2011

AGENDAAGENDA Introduction

Web 2.0 and Social Media

What is Social Media Marketing

SMEs experiences from the field

Social Media research inSocial Media research inUT / MB / NIKOSUT / MB / NIKOS

SOMERE:SOMERE: a junior research center (BS / M&G) Master Research on Web 2.0 / Social Media

3 PhDs Own research: User behavior in online social

enviroments, Social market segments, influence of social media on buying behavior.

Ex. Adoption and Market Segments of SNS users in NL; Use of Social Media by WVO 5/6 children and effect on choice of HE study and University

Bottom line: How marketers can effectively Bottom line: How marketers can effectively engage the Internet and the Social Media engage the Internet and the Social Media as Marketing Toolsas Marketing Tools

What is Web 2.0 and Social Media?What is Web 2.0 and Social Media?

What is Social Media Marketing?What is Social Media Marketing?The Definitive End of Push Marketing!The Definitive End of Push Marketing!

The power of the Social Media

The Internet and the Social Media are changing the marketing practice

Marketing Marketing IsIs

ChangingChanging

Declining Effects of Declining Effects of Traditional MarketingTraditional Marketing

ModelModel

Increasing Increasing CustomerCustomer

PowerPower

Decreasing Decreasing CustomerCustomer

TrustTrust

1. The importance of the Marketing model is declining1. The importance of the Marketing model is declining

2. The buying / decision making process is 2. The buying / decision making process is changingchanging

Traditional MarketingTraditional Marketing

Marketing in Web 1.0 environmentMarketing in Web 1.0 environment

Marketing in Web 2.0 environmentMarketing in Web 2.0 environment

The way customers make decisions is The way customers make decisions is changing: Model of Customer Behavior changing: Model of Customer Behavior (( Kotler et al. Marketing Management, 2009) Kotler et al. Marketing Management, 2009)

Customer Empowerment

Customers become Brand AmbassadorsCustomers become Brand Ambassadors

……but also Brand Detractorsbut also Brand Detractors

And it can get even worst!

Example 1: Kryptonite bicycle locks

Example 2: AOL

Example 3: United Airlines

Customer trust to business declines: The new influencers are the peers

84% of Americans influenced by online customer reviews (Opinion research Co, April 2009)

Bizrate survey (2007): 59% of users consider customer reviews to be

more reliable than those from experts

Study of Deloitte Touche USA: 62% of the US consumers read

consumer-generated online reviews and 98% of them find these

reviews reliable enough

80% of these consumers say that reading these reviews has affected

their buying intentions

85% of consumers will recommend a company with which they have a

trusted relationship (Carlson Marketing)

Web Web 2.0 Dimensions2.0 Dimensions

SOCIAL MEDIASOCIAL MEDIA Social EffectsSocial Effects Enabling TechnologiesEnabling Technologies

BlogsSocial Networking SitesOnline CommunitiesForums/BulletinBoardsContent aggregators

EmpowermentParticipationOpennessNetworkingConversationCommunityDemocratization /User control

Open SourceRSSWikisWidgetsMashupsAJAX

Source: Constantinides and Fountain, 2008

Weblogs

Online communities

Forums

Content aggregators

Social Media MarketingSocial Media Marketing

Turning the Social Media Threat in a Turning the Social Media Threat in a Strategic Opportunity: The (E-)Marketing Strategic Opportunity: The (E-)Marketing StrategyStrategy

Product/ service

Marketing/ E-Marketing

Organization

Web 1.0 Web site

Web 2.0Social Media

Level Level 11

Level Level 33

Level Level 22

Level 4Level 4

Social Media as Marketing Tools: Social Media as Marketing Tools: Generic approachesGeneric approaches

ACTIVEPASSIVE

Marketing

Strategy

Listening In PR / Direct Marketing /CS

Reach the Influencers

Personalize Experience

Tapping Tapping

CreativityCreativity

Social

HOW SOCIAL IS

YOUR BRAND?

Web logs MobileCrunch Direct2Dell MashableMashable Toyota

Communities /

Microblogs

Wecando Threadless Twittorati NIKENIKE Heinz Heinz NOKIA

Social Networks H&M Hyves AA McDonalds McDonalds

HyvesHyves

XXXXXX LEGOLEGO

Forums /

B. Boards

Epinions

ReviewcenterReviewcenter

AmericanExp KLM

BookScanner

Content

Aggregators / V.O.C.

Monitoring

BizReport

BuzzCupture

DELL RSSDELL RSS

Grolsch

MyMuesli Innocentive

A few cases

How SMEs can harness the Social Media: Examples from the field

Social Media as MarketingTools: Generic approachesSocial Media as MarketingTools: Generic approaches

ACTIVEPASSIVE

Marketing

Objective

Listening InListening In PR / Direct PR / Direct

Marketing/ CSMarketing/ CS

Reach the Reach the

InfluencersInfluencers

Personalize Personalize

ExperienceExperience

Tapping Tapping

Application Type

Web logs XXXXXX XXXXXX XXXXXX

XXXXXX

Communities /

Microblogs

XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX

XXXXXX

Social Networks XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX

Forums /

B. Boards

XXXXXX XXXXXX XXXXXX

Content

Aggregators /

V.O.C. Monitoring

XXXXXX

XXXXXX XXXXXX

Case 1: Case 1:

BlendtecBlendtec

FactsBefore October 2006, Blendtec had spent more than a decade selling blenders to the commercial market (restaurants and so

on) but had little name recognition with mainstream consumers.

“Will It Blend” became a viral phenomenon generating 100 mil views, presence in mass media, about 700.000 fans and national distribution, sales up by 600% since the launch of the videos

Will it Blend?

Case 2: Red Scarf Case 2: Red Scarf EquestrianEquestrian

Joanna Wiseberg

Case 3:Case 3:The Dessert Gallery Facebook ExperimentThe Dessert Gallery Facebook ExperimentUtpal M. Dholakia and and Emily Durham HBR March 2010

Social Media and CRM / Social Media and CRM / customer servicecustomer service

ACTIVEPASSIVE

Marketing

Objective

Reach the Reach the

Tapping Tapping

Application Type

XXXXXX

Communities /

Microblogs

XXXXXX

Forums /

B. Boards

Content

Aggregators /

V.O.C. Monitoring

XXXXXX

XXXXXX XXXXXX

What my students What my students diddid

Soocial.com

Distimo.com

ACTIVEPASSIVE

Marketing

Objective

Reach the Reach the

Tapping Tapping

Application Type

XXXXXX

Communities /

Microblogs

XXXXXX

Forums /

B. Boards

Content

Aggregators /

V.O.C. Monitoring

XXXXXX

XXXXXX XXXXXX

ACTIVEPASSIVE

Marketing

Objective

Reach the Reach the

Tapping Tapping

Application Type

XXXXXX

Communities /

Microblogs

XXXXXX

Forums /

B. Boards

Content

Aggregators /

V.O.C. Monitoring

XXXXXX

XXXXXX XXXXXX

Seth Haber

Conclusions Declining Effects of Traditional Marketing Increasing Customer Power,

transparency, alternatives customer generated content / Decreasing Customer Trust

Social Media: New Tools of Marketing for SMEs Listen to customer voice PR, Advertising Reach the New Influencers Mass Customization Distributed co-creation

Thank youThank you

e.constantinides@utwente.nl

social media as marketing tools: valuable for smes?

social media

passive approachlistening

www

online

examples

based

product

www

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