ENHANCING PROMOTIONAL STRATEGIESUse of Web 2.0 Social Media

-Chhavi Vatwani

INTRODUCTION

How Web 2.0 holds promise to significantly enhance promotional efforts.

How to incorporate Web 2.0 social media into promotional strategy.

MARKETING

3 Purposes for Promotion (Kotler & Keller, 2007)- To increase product awareness- To persuade people to purchase the product- To remind people that the product exists

Planners make Strategic Decisions about the Marketing Mix (4Ps):- Product -Price- Place - Promote

Traditional Forms of Marketing: Billboards, Commercials on TV, radio.

Former Internet Marketing Tactics: Banner Advertisements Sponsorships Pop-ups and –unders Links Paid Searches

Web 1.0 One-way communication Lecturing

Modern Forms of Marketing: Web 2.0 Second generation internet-based applications Users control communication Engages customers via

- Collaborative Writing (WIKI)- Content Sharing (images, videos)- Social Networking (Facebook)- Social Bookmarking (ratings, followers)- Syndication (RSS feeds)

Two-way communication Inclusion of user-generated content + distribution Collective Intelligence

SOCIAL MEDIA TRENDS MORE AMONG YOUNGER PEOPLE

2006-07: 45% increase in visits, video sharing site (Rainie, 2007)

2007: 120,000 new blogs created every day (Technorati, Sifry, 2007)

2004-06: 9% increase in number of teens reported blogging (Lenhart, Madden, Macgill & Smith, 2007)

2006: 38% teens reported reading blogs where only 27% adults did the same (Lenhart & Fox, 2006)

Web 2.0 has potential to transform social marketing promotion.

SHARPIE ENGAGING WITH TEENS

July 2012: 1 million teens (12-17) visited Instagram

93% of social-media using teens have Facebook account (Pew Internet Research)

32% use Twitter

Sharpie garnered 89% market share (Gained 5 share points) in 2012.

Organization: Sharpie Campaign: Back to School Social Media Handles & Stats:

Facebook: 4 million + likes Twitter: 227,463 followers Youtube: 2,556 subscribers; 1,552,568 video views Instagram: 49,966 followers Pinterest: 6,669 followers

WHY WEB 2.0 SOCIAL MEDIA HOLDS SUCH POTENTIAL?

Direct Engagement with Consumers Boost in Viral Marketing

DIRECT ENGAGEMENT WITH CUSTOMERS

Paradigm: Customer is creator Increase buy-in, loyalty More likely to talk about product with friends Eg. During 2007 Super Bowl, 30 sec spot for

Doritos produced in just a few days for less than $13 was an instant hit.

BOOST IN VIRAL MARKETING

Facilitates + encourages people to pass marketing message

E.g. Georgetown Cupcake after being open for aprox. 2 weeks, was selling 800 cupcakes a day at $2.75 each. No advertising. Heard on blogs and other websites. (2008)

Social Media does not always work

INCORPORATING WEB 2.0 SOCIAL MEDIA INTO SOCIAL MARKETING PROMOTIONAL PLANS

Key questions: - Audience preferences? Their

demographics, lifestyle and motivation to use social media

- Related costs? Timeframe (short/long term budget), type of Web 2.0 SM apps to be used, internal resources available (h/w, s/w, people), resources for market research.

CREATIVE

E.g. use of Web 2.0 SM altruistically as community service or volunteerism.

Perceived costs among participants related to time, money, energy – less problematic!

SUMMARY

Web 2.0 SM helps in enhancing promotional strategies by:

- allowing direct engagement with customers

- boosting viral marketing Incorporating Web 2.0 SM considering

- audience preferences- related costs

EG. OF ENGAGEMENT WITH CUSTOMERS