Part ISocial Media Redefines Marketing, Branding

© 2008

Greetings!I am Ira Kaufman, President Optimized Strategies, Ph.D. Marketing

As a Marketing Strategist, I combine 30 years of rich experiences with businesses and nonprofits to develop the potential of companies and institutions.Marketing is evolving and expanding. It requires an integration of traditional advertising, online marketing, social media and networking to develop competitive advantage.

I challenge owners and senior executives to clarify their goals and translate them into a consistent Brand. Then our team develops an Integrated Marketing Strategy that leverages social media and online marketing.

Please join me on a journey to discover the Power of Social Media in building a WEB2.0 Brand and Competitive Advantage.

Connect with me: ira@osadvantage.com540-563-2249 (office); 540-875-8510 (cell)

Blog http://www.attractingtalenthub.comLinkedIn http://www.linkedin.com/in/optimizedstrategiesTwitter http://twitter.com/ira9201Facebook http://profile.to/irakaufman

Invite you on a Journey

Opening the doorway to new experiences and insights into the future of marketing…

Challenging your assumptions

Building Your New Brand

Who Are You?What's Your Brand?

Pew Internet & American Life Project Tracking surveys (Last updated: July 22, 2008)

What’s the Marketing Explosion?

From Traditional Advertising to

Online Marketing to

Integrated Social Marketing Strategy

From Traditional Advertising to

Online Marketing to

Integrated Social Marketing Strategy

/

McKinsey & Co Report • By 2010, traditional TV advertising will be one-third

as effective as it was in 1990. It assumes:

• 15% decrease in buying power driving by cost-per-thousand rate increases

• 23 % decline in ads viewed due to switching off• 37% decrease in message impact due to

saturation

• Prime-time TV ad spending has increased over last decade by about 40%, as viewers have dropped almost 50%. Paying more for less translates into a much higher cost-per-viewer-reached.

http://www.mediabuyerplanner.com/2006/08/07/mckinsey_tv_selling_power

Crisis In Mass Marketing• 18%: Proportion of TV advertising campaigns generating

positive ROI

• 54 cents: Average return in sales for every $1 spent on advertising

• 84%: Proportion of B2B marketing campaigns resulting in falling sales

• 100%: The increase needed in advertising spend to add 1-2% in sales

• 14%: Of people who trust advertising information

• 90%: Of people who can skip TV ads who do skip TV ads

• 56%: People who avoid buying products from companies who they think advertise too much

• 65%: People who believe that they are constantly bombarded with too much advertising

Source: Justin Kirby & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. xix

Power of the Internet

Stats from Internet WorldStats (Census, Nielson)

Internet Usage

USA Population: 303,824,646

Internet Usage: 220,141,969

Penetration Rate: 72.5%

Growth from 2000-2008: 130.9%

Social Media Will Change Your Business

“Look past the yakkers, hobbyists, and political mobs.

Your customers and rivals are figuring blogs out.

Our advice:

Catch up… or catch you later”

Business Week February 20, 2008

• Common intention to open networking

• Gain access to previously blocked contacts

• Expands access to other vast networks

Social Media Opens Blocked Communications

Power of

• More than 100 million active users, 4th most-trafficked website in the world • Over 55,000 regional, work-related, collegiate, and high school networks

• More than 50% users are outside of college

• #1 site for people ages 17-25

• Fastest growing demographic is those 25-35 years old

• Maintain 85 %market share of 4-year U.S. universities

• 50% of users return daily.

• Group Facebook for Business for a rich source of information. 25,000+ members. 

Statistics gathered directly from Facebook

Professional Resource

• Launched in May 2003

• 26+ million experienced professionals from around the world

• Represents 150 industries

• 10+ Million unique visitors per month

• Grew almost 200% from 2007

Data from LinkedIn

Goes Mainstream

Businesses are finding ways to tweet• Doctors update patients about office

hours

• Zappos, shoe retailer updates 14,000

followers

• COMCAST use it for customer services

• Real estate agents are selling Houses

• HCA uses for recruiting nurses Journal October 27, 2008

WordPress Transforms Websites

Businesses are adopting WEB2.0

• Search engine optimization friendly

• Interactive

• Content managed

• Builds relationships

• Real time metrics

Widgets Rule

Businesses use widgets to gain and distribute information • Free

• Easy to upload

• Collect information

• Viral, Self-Distributing

• Distribute your published posts

• Engage conversations

• Customer service, Feedback, Promotion,

Job boards

Social Media Marketing Examples

•

1. Blogs (Johnson & Johnson, Delta Air Lines)

2. Bookmarking/Tagging (Adobe, Kodak)

3. Brand monitoring (Dell, MINI)

4. Content aggregation (Alltop, EMC)

5. Crowdsourcing/Voting (Oracle, Starbucks)

6. Discussion boards and forums (IBM, Mountain Dew)

7. Events and meetups (Molson, Pampers)

8. Mashups (Fidelity Investments, Nike)

9. Microblogging (method, Whole Foods)

10. Online video (Eukanuba, Home Depot)

11. Organization and staffing (Ford, Pepsi)

1. Blogs (Johnson & Johnson, Delta Air Lines)

2. Bookmarking/Tagging (Adobe, Kodak)

3. Brand monitoring (Dell, MINI)

4. Content aggregation (Alltop, EMC)

5. Crowdsourcing/Voting (Oracle, Starbucks)

6. Discussion boards and forums (IBM, Mountain Dew)

7. Events and meetups (Molson, Pampers)

8. Mashups (Fidelity Investments, Nike)

9. Microblogging (method, Whole Foods)

10. Online video (Eukanuba, Home Depot)

11. Organization and staffing (Ford, Pepsi)

www.mashable.com/2008/11/07/social-media-marketing-plan/

Social Media Marketing Examples … continued

•

12. Outreach programs (Nokia, Yum Brands)

13. Photosharing (Rubbermaid, UK Government)

14. Podcasting (Ericsson, McDonalds)

15. Presentation sharing (CapGemini, Daimler AG)

16. Public Relations - social media releases (Avon, Intel)

17. Ratings and reviews (Loblaws, TurboTax)

18. Social networks: applications, groups, personalities (British Airways, Saturn)

19. Sponsorships (Coca-Cola, Whirlpool)

20. Virtual worlds (National Geographic, Toyota)

21. Widgets (Southwest Airlines, Target)

22. Wikis (Second Life, T-Mobile Sidekick)

12. Outreach programs (Nokia, Yum Brands)

13. Photosharing (Rubbermaid, UK Government)

14. Podcasting (Ericsson, McDonalds)

15. Presentation sharing (CapGemini, Daimler AG)

16. Public Relations - social media releases (Avon, Intel)

17. Ratings and reviews (Loblaws, TurboTax)

18. Social networks: applications, groups, personalities (British Airways, Saturn)

19. Sponsorships (Coca-Cola, Whirlpool)

20. Virtual worlds (National Geographic, Toyota)

21. Widgets (Southwest Airlines, Target)

22. Wikis (Second Life, T-Mobile Sidekick)

Web2.0 Trends Updated 12/07 Jo,SanKuKT

1. Desperate Housewives ABC 22.3 million

2. Dancing With the Stars ABC 22.0

3. CSI: Crime Scene Investigation

CBS 20.8

Nielsen Rating – Nov 6- Nov 12 2006

Evolution of Dance 35.7 MM

Pokemon Theme Music 17.3

Quick Change Artists 12.7

TOP 3 (20 nov 2006)

Power of YouTube “play for real”

The traditional marketing model is being challenged,

and Chief Marketing Officers can foresee a day when it will no longer work.

McKinsey Quarterly, 2005, Number 2

The Power Has ShiftedThe Power Has Shifted

Any Time - Any Place - Any Way

Web2.0 Trends Updated 12/07 Jo,SanKuKT

“Social Trend in which people

use technologies to get

things that they need

from each other, rather

from corporations”

“Social Trend in which people

use technologies to get

things that they need

from each other, rather

from corporations”

Marketing Rules are ChangingMarketing Rules are Changing

It was It’s now

Pushing message to client Pulling client to the message

One way message Interactive conversation

Business generated content User generated content

Direct client to immediate action Engage, build relationship

Hard to measure results Real time metrics

Consistent media preferencesGenY/X different media preferences

Coveting information Sharing information

Charging for entry – block entry Giving free ebooks, product

Essence of the Future of Marketing

• It all starts with respect.

• Listening is marketing.

• Participation is marketing.

• Media is marketing.

• Conversations are marketing.

• Comments are marketing.

The Social Media Manifesto

Web2.0 Trends Updated 12/07 Jo,SanKuKT

Integrated Social Marketing Campaign that

made a difference

What was Obama’s brand?

What was McCain’s brand?

Marketing Pundits SpeakMarketing Pundits Speak

Obama• Packaged, marketed and distributed his

charismatic self and easily digestible message of “change”- political, social economic

McCain • Struggled to find an electable identity and

clear voice• Lost himself inside the ambiguous maze of his

“maverick” persona.

Obama• Packaged, marketed and distributed his

charismatic self and easily digestible message of “change”- political, social economic

McCain • Struggled to find an electable identity and

clear voice• Lost himself inside the ambiguous maze of his

“maverick” persona.

Powerful Social Media Strategy

Obama has 380% more supporters than McCainObama: 2,379,102 supportersMcCain: 620,359 supporters

Obama has 380% moresupporters than McCain Obama: Friends: 833,161McCain: Friends: 217,811

Obama has 403% more subscribersthan McCain & 905% moreViewers than McCain

Obama has 240 times morefollowers than McCain Obama:

@barackobama has 112,474 followers

McCain: @JohnMcCain 4,603 followers

www.web-strategist.com/blog/2008/11/03/snapshot-of-presidential-candidate-social-networking-stats-nov-2-2008/

http://www.slideshare.net/saydowin/obama-social

Old 4Ps Marketing

4Ps

Value Creator Customer

WEB2.0 Marketing

5Ps

Value Builder - Company - Employer - Person

Customer

Product (WEB2.0 Brand)

Price ($, time, ease)

Promotion (Integrated Marketing)

Job Seeker

Online Visitor

Participation (Conversations)

Place (online, offline)

Publisher

Factors Distinguishing Traditional, Online and Social

Media Traditional Online Social

Tools

Advertising (TV , radio), billboards, direct mail)

Websites, banners , ecommerce, Search engine optimization

Blogs, wikis, video on demand, RSS, social networks, widgets, cell phones

BrandingControl brand and growth

Promote brand- some control

Set the brand but cannot control - based on user feedback

Approach Closed, directedCan be dynamic and updated regularly

Open , responsive – listen, adapt

Sales process PushCombination push/pull

Pull

Interactivity None – one wayBoth static and interactive

Interactive and real time

Entry High expertise and cost

Moderate expertise and cost

Low expertise and cost/ free

Attention Economy

• A marketplace where consumers agree to receive services in exchange for their attention.

• Include personalized news, personalized search, alerts

and recommendations to buy.

• The consumer has choice - they get to choose where

their attention is 'spent'.

• If content is relevant, site is “sticky” creating more opportunities to sell.

Web2.0 Trends Updated 12/07 Jo,SanKuKT

WEB2.0 MarketingSummary

WEB2.0 MarketingSummary

It’s not about a cheaper product or your idea; It’s about creating engaging conversations.

It’s not about better coffee – it’s about the place

It’s not about the hog, it’s about a lifestyle

It’s not about the entertainment – it’s about delivery

It’s about my space

It’s about my opinion , experience

It’s about your choices, places, and time