Chapter 19 – Using Social Media to Connect with Consumers
19-1
Using Social Media and Mobile Marketing to
Connect with Customers
CHAPTER CONTENTS
PAGE
POWERPOINT RESOURCES TO USE WITH LECTURES …………………………………… 19-2
LEARNING OBJECTIVES (LO) ……………………………………………………………………………. 19-3
KEY TERMS ………………………………………………………………………………………………………….. 19-3
LECTURE NOTES
• Chapter Opener: Mobile Moments Will Soon Include a Nice Ride! ……………………… 19-4
• Understanding Social Media (LO 19-1) ……………………………………………………………. 19-5
• A Look at Four Important Social Networks (LO 19-2) ………………………………………. 19-10
• Integrating Social Media into Today’s Marketing Strategies (LO 19-3; LO 19-4) … 19-19
• The Future: Social Media + Smartphones + Exotic Apps (LO 19-5) …………………… 19-28
APPLYING MARKETING KNOWLEDGE …………………………………………………………… 19-33
BUILDING YOUR MARKETING PLAN ………………………………………………………………. 19-36
VIDEO CASE (VC)
• VC-19: StuffDOT™ Inc.: Rewarding Users for Actively Shopping and
Sharing! ………………………………………………………………………………………….. 19-38
APPENDIX D CASE (D)
• D-19: AOI Marketing: Using Facebook to Launch Bitter Girls® …………………………. 19-41
IN-CLASS ACTIVITY (ICA)
• ICA 19-1: What are the Most Popular Facebook Brands? ………………………………….. 19-45
CONNECT APPLICATION EXERCISES ………………………………………………19-50
• Integrating Social Media Case Analysis
• StuffDOT, Inc.: Rewarding Social Media Users for Shopping & Sharing Video Case
• Social Media Performance Measures Click & Drag*
• iSeeit! Video Case: Social Media Metrics Video Case
*Note: An alternate version of each Click and Drag exercise is available in Connect for students with
accessibility needs.
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POWERPOINT RESOURCES TO USE WITH LECTURES
PowerPoint
Textbook Figures Slide
Figure 19-1 A sample of social media classified by media richness and self-disclosure …………….. 19-7
Figure 19-2 How brand managers can use four social networks in developing their marketing
strategies ……………………………………………………………………………………………………… 19-9
Figure 19-3 The Facebook Page for StuffDOT shows elements that are of interest to its
brand manager ……………………………………………………………………………………………… 19-11
Figure 19-4 The number of users and unique visitors for four social network sites: YouTube,
Facebook, Twitter, and LinkedIn …………………………………………………………………….. 19-20
Figure 19-5 Performance measures for social networks linked mainly to inputs or costs,
as seen by a brand manager …………………………………………………………………………… 19-23
Videos
19-1: Zoella: Life, Beauty, & Chats Video …………………………………………………………………………… 19-17
19-2: Pepsi MAX Video …………………………………………………………………………………………………… 19-21
19-3: Carmex Video ………………………………………………………………………………………………………….. 19-26
19-4: Clash of Clans Video ………………………………………………………………………………………………… 19-29
19-5: StuffDOT Video Case ………………………………………………………………………………………………. 19-33
In-Class Activity (ICA)
ICA 19-1: What are the Most Popular Facebook Brands? ………………………………………………………. 19-38
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LEARNING OBJECTIVES (LO)
After reading this chapter students should be able to:
LO 19-1: Define social media and describe how they differ from traditional advertising media.
LO 19-2: Identify the four major social media and describe how brand managers integrate them
into marketing actions.
LO 19-3: Describe the differing roles of those receiving messages through traditional versus
social media and how brand managers select social media.
LO 19-4: Compare the performance measures of social media linked to costs (inputs) versus
revenues (outputs).
LO 19-5: Identify the cause of the convergence of the real and digital worlds and how this will
affect the future of social media.
KEY TERMS
apps
social media
blog
Twitter
Facebook
user generated content (UGC)
LinkedIn
YouTube
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LECTURE NOTES
MOBILE MOMENTS WILL SOON INCLUDE A NICE RIDE!
Consumers experience 150–200 “mobile moments” each day. These are experienced by
smartphone users through social media, messaging, or e-mail.
And, cars with Internet access means connected cars and more mobile!
• Smartphone-enabled dashboards, voice recognition software, and large screens.
• Auto industry will change more in the next 5 – 10 years than the past 50.
• Convenience stores are attractive to busy millennials; nearly half of convenience
stores offer mobile apps for real-time special advertising.
What the Future Holds
• Integrated paths for the evolving customer journey.
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I. UNDERSTANDING SOCIAL MEDIA [LO 19–1]
Brand managers must know about “social media” to choose the most effective one to use.
A. What Are Social Media?
1. Defining Social Media.
a. Social media:
• Are online media where users:
– Submit comments, photos, and videos…
– Often accompanied by a feedback process to identify “popular” topics.
• Represent a unique blending of technology and social interaction to create
personal value for users.
• Involve a genuine online conversation among people:
• Involve games and virtual worlds, in which the online interaction includes:
– Playing a game. – Controlling an avatar.
– Completing a quest.
b. Business firms also refer to social media as “consumer–generated media.”
c. Social network. Is a social medium site like Facebook or YouTube.
2. How Social Media Came About.
a. Social media is used interchangeably with the terms “Web 2.0” and user
generated content.
b. Web 2.0:
• First appeared in 2004 to describe a new way to use the World Wide Web.
• Doesn’t refer to any technical update of the World Wide Web (Internet).
• Content:
– Is no longer seen as being created and published in final form
exclusively by one author.
– Can be modified continuously by all users in a participatory fashion
and customized to each individual and location.
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c. Web 3.0:
• New functionalities that allow personalization and customization to
individuals.
• It will integrate new Web features such as Cloud computing, big data, the
Internet of Things, security solutions, and privacy protection.
d. A blog:
• Is a contraction of “web log.”
• Is a web page that serves as a publicly accessible journal and online forum
for an individual or organization.
e. User-generated content (UGC):
• Refers to the various forms of online media content that are publicly
available and created by end users.
• Is also referred to as consumer-generated content.
• Covers all the ways people can use social media.
• Satisfies three basic criteria:
1. UGC:
* Is published either on:
2. UGC:
3. UGC:
3. Classifying Social Media.
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a. Marketing managers need a system to classify the more than 400 specialized
and diverse social networks…
b. As they try to select the best one(s) to reach potential customers.
c. A proposed a classification system for marketers is based on two factors:
• Media richness.
– Involves the degree of acoustic, visual, and personal contact between
two communication partners.
• Self-disclosure.
– In any type of social interaction:
* Individuals want to make a positive impression to…
– This favorable image is affected by the degree of self-disclosure about
a person’s thoughts, feelings, likes, and dislikes.
d. [Figure 19-1] Uses media richness and self-disclosure to position a number of
social media sites in two-dimensional space. Examples:
• Wikipedia:
– Is a collaborative project.
– Is low on both self-disclosure and media richness.
• LinkedIn:
– Contains detailed career and résumé information for business
• World of Warcraft (WoW):
– Multiplayer, online role-playing game
e. Marketing managers look carefully at the positioning of the social networks
shown in Figure 19-1 in selecting those to use in their marketing plans.
B. Comparing Social and Traditional Media
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• Consumers receive information, news, and education from print (newspapers,
magazines) and electronic media (radio, television).
• Studies indicate that social media complements traditional media when focused
on building brand and acquiring customers.
• Social media and traditional media have both similarities and differences that
impact marketing strategies, as described below:
a. Ability to reach both large and niche audiences.
• Both kinds of media can be designed to reach either a mass market or
specialized segments.
• However, good execution is critical, and audience size is not guaranteed.
b. Expense and access.
• Messages and ads in traditional media like newspapers or television:
– Are expensive to produce.
– Have restricted access by individuals.
– Are typically owned privately or by the government.
• Messages on social media networks:
c. Training and number of people involved.
• Producing traditional media:
– Requires specialized skills and training.
– Often involves teams of people.
• Sending messages on social media:
d. Time to delivery.
• Traditional media:
– Can involve days or even months of continuing effort to deliver the
communication.
– Time lags can be extensive and expensive.
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e. Permanence.
• Once created, traditional media (print or TV ads) cannot be altered.
• Social media can be altered instantaneously by comments or editing.
f. Credibility and social authority.
• With traditional media:
• With social media:
– A sender often simply begins to participate in the “conversation”…
g. Privacy.
• Recipients of traditional media like TV or radio ads are completely
anonymous.
• Subscribers to newspapers or magazines are somewhat less so because
publishers can sell subscription lists to advertisers.
• Social media have much less privacy and anonymity:
LEARNING REVIEW
19-1. What are social media?
19-2. In classifying social media, what do we mean by (a) media richness and (b) self-
disclosure?
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LEARNING REVIEW CONTINUED
19-3. Compare traditional media and social media in terms of time to delivery of the
communication.
II. A LOOK AT FOUR IMPORTANT SOCIAL NETWORKS [LO 19–2]
• Facebook, Twitter, LinkedIn, and YouTube are the four important social networks.
• Marketing managers:
a. Integrate these four website platforms into their marketing strategies to…
b. Supplement the traditional media they already use.
A. Comparing Four Social Networks
• [Figure 19-2] Compares them from a brand manager’s perspective.
• The green boxes show the special strengths of each social network.
• The red boxes show the special weaknesses of each social network.
• Figure 19-2 suggests that:
a. Facebook:
• Increases brand exposure by…
• Encouraging brand-loyal customers to…
b. Twitter. Is effective in:
• Sending crisp messages about a brand.
• Learning what people say about it.
d. YouTube’s videos make it useful in explaining a complex product.
B. Facebook
• Is the first choice among people seeking to create and maintain online connections
with others by using photos, videos, and short text entries.
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• Enhanced its capabilities with acquisitions of Instagram (photo sharing),
WhatsApp (messaging), and Oculus (virtual reality).
• Has over 1.94 billion active users—1 in every 4 people on the planet.
[ICA 19-1: What are the Most Popular Facebook Brands?]
1. Facebook: An Overview.
a. Facebook is a website where users:
• Create a personal profile.
• Add other users as friends.
b. Facebook’s impact:
• Has 1.28 billion daily active users.
• Processes 300 million photos, 5.7 billion likes, and 730 comments each
day.
2. Facebook in a Brand Manager’s Strategy.
a. Facebook Business Pages:
• Were created as a method for brand managers to generate awareness for
their product, service, or brand within Facebook.
• Allow brand managers to:
• Information from a Facebook Business Page:
– Is generally public.
– Cataloged by search engines like Google and Bing…
– So brand managers can identify influencers within their customer base.
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b. Within its advertising platform, brand managers use paid ads and sponsored
stories to generate customers and increase traffic to a Facebook Page.
c. Facebook ads:
• Migrate the content into Facebook conversations among friends.
d. The marketing challenges for a Facebook Page are to:
e. The following guidelines should be used to engage fans on Facebook:
• Be creative in using links, photos, and videos.
• Make it familiar, but with a twist.
– Focus content strategy on imagery and messaging that:
* Is familiar to fans.
* Punctuated with something unique.
– Example: Aflac.
• Keep it fresh.
• Learn users’ passions and let them guide content.
f. User loyalty enables a firm to target promotional offers to its best customers.
g. “Likes” or “Followers” to a brand’s Facebook Page is worth $174 in product
spending, brand loyalty, and ‘propensity to recommend’ the site to others.
3. Launching a New Social Network Using Facebook.
a. StuffDOT (where sharing meets rewards): “Share, Shop, Earn!”
• Is a place where people can:
– Post the things they like.
– Earn rewards for their recommendations and online purchases.
• Differs from other social-sharing websites because users…
• Reward money can be:
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– Cashed in via PayPal.
– Redeemed for gift cards with major retailers such as Amazon and
Target.
• College students create most of the content.
b. [Figure 19-3] Shows the Facebook Page for StuffDOT.
• This new start-up targets college-aged women.
• The notes in the margin:
– Show how elements on the StuffDOT Facebook Page…
c. StuffDOT’s challenge is to:
• Break through the clutter and attract loyal users because…
• There are dozens of new social networks launched annually.
d. The StuffDOT brand manager:
• Works continuously with its website designer to…
• Present an attention-getting, user-friendly Facebook Page.
e. As a start-up, StuffDOT:
f. StuffDOT campus ambassadors:
• Are a major force behind the platform’s growth.
• Actively promote the site nationally through:
4. Mobile Marketing at Facebook.
a. Keeping 1.9 billion users happy is a tall order—even for Facebook.
b. Facebook is changing its mobile capabilities.
• Live Streaming.
– Service to allow users to broadcast up to four hours of live streaming
• Integrated news publishing.
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– Feature called Instant Articles collaborates with Google and Apple to
encourage publishers to provide articles for Facebook users.
– Prevent the Facebook experience from being interrupted.
• Photo-Sharing and Facial Recognition.
– App called Moments uses facial recognition to identify which friends
• E-mail Marketing for Facebook App.
– Program called Customer Audiences Facebook helps advertisers target
C. Twitter
• “Tweets” are so well-known that Twitter has become part of American life.
• Twitter worldwide:
a. Has over 313 million active monthly users.
b. Posts an average of 500 million tweets a day.
1. Twitter: An Overview.
a. Twitter:
• Is a website that:
– Enables users to send and receive…
– Tweets—messages up to 280 characters long.
• Is based on the principle of “followers:”
– When you choose to follow another Twitter user…
b. Twitter can be a good information source about a brand or product because of:
• Its short message length.
• The ease of posting, receiving, and forwarding (“retweeting”) tweets.
c. Wendy’s uses Twitter to as an important tool to communicate brand messages
to followers.
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• Teenager Carter Wilkerson asked Wendy’s how many retweets it would
d. Twitter’s immediacy allows Wendy’s to:
• Operate promotions in real time.
2. Twitter in a Brand Manager’s Strategy.
a. Brand managers:
• Cannot expect extensive comments on their brands with the 140-character
(280 for some users) limit on tweets.
• Can use keyword search monitoring like TweetDeck or HootSuite to…
– Read what Twitter users are saying—good and bad…
b. Brand managers also can use Twitter for listening to and interacting with
present and potential consumers. They can:
• Generate brand buzz by:
– Developing an official Twitter profile. – Recruiting followers.
– Showing photos and videos of their products.
• Follow the Twitter profiles that mention their product.
D. LinkedIn
LinkedIn’s main purpose is professional networking and job searching.
1. LinkedIn: An Overview.
a. LinkedIn:
• Is a business-oriented website that…
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• Lets users post their professional profiles to…
• Connect to a network of businesspeople who…
• Are also called connections.
b. LinkedIn:
• Has about more than 500 million registered users who…
• Have conducted about 6 billion professionally-oriented searches.
2. LinkedIn in a Brand Manager’s Strategy.
a. Marketing managers can use LinkedIn to promote their brand in subtle ways:
• Business-to-business (B2B) image-building and networking with other
professionals.
b. A company can also use LinkedIn Groups to join groups to share ideas, and…
• Demonstrate the organization’s expertise.
• Recruit qualified employees use the website’s algorithms.
3. LinkedIn in a College Senior’s Job Search.
a. LinkedIn has over 40 million students and recent college grads as members.
b. Key ideas for building an attention-getting LinkedIn profile for students:
• Write an informative short, memorable, profile headline.
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• Set your LinkedIn profile to “public” and create a unique URL that can be
included in your resume.
E. YouTube
YouTube’s ability to reach its audience is amazing. Its one billion users:
1. YouTube: An Overview.
a. YouTube:
• Is a video-sharing website in which users can upload, view, and comment
on videos.
• Uses streaming video technology to:
– Display user generated video content that…
b. Companies can post their material (ads, B-roll) through YouTube channels.
c. Recently, YouTube:
• Redesigned its home page to…
d. YouTube channels:
• Serve as home pages for organizations and individuals.
• Allow organizations and individuals to…
– Upload their own videos.
– Post and share videos created by others.
2. YouTube in a Brand Manager’s Strategy.
a. YouTube offers great opportunities for a brand manager to:
• Produce and show a video that…
• Explains the benefits of a complex product.
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b. Since YouTube is owned by Google, it:
• Incorporates a search engine that…
• Allows users interested in a specific topic to find it easily.
c. In terms of cost advantages, a brand manager:
d. To help small businesses with video advertising, YouTube allows them to:
• Create video ads, buy and manage key words.
e. Example of the creative use of YouTube: OK Go used YouTube to win fans,
licensees, and sponsors.
[Video 19-1: Zoella: Life, Beauty & Chats Video]
f. Guidelines on brand marketing and promotion using YouTube videos include:
• Exploit visual aspects of your message, perhaps sacrificing product
messages to tell a more entertaining story.
MARKETING MATTERS
Technology: Vloggers Are the New Power Players, Worldwide!
Recent studies indicate that nearly half of all web video ads are never seen! It’s
also difficult to hold the attention of millennial and Gen Z audiences.
Video bloggers (vloggers) are becoming the online version of celebrities. Ex:
Zoella started posting videos about cosmetics as a teen and today has 11.8 million
subscribers. PewDiePie today has 55 million subscribers and was recently named one of
Time magazine’s most influential people of the year.
Forbes magazine publishes a list of the 30 Top Power Players on social media,
including influencers in beauty, fitness, and home. Members of the list are from eight
countries and have a total of 250 million social media followers.
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LEARNING REVIEW
19-4. How is user-generated content presented by someone using Facebook?
19-5. What are some ways brand managers use Facebook to converse with a brand’s
fans? How does Facebook facilitate mobile marketing activities?
Answer: A brand manager can create awareness for a product, service, or brand by
creating a Facebook Page for it. To generate new customers and increase traffic to their
19-6. How can brand managers use Facebook and YouTube to converse with its
customers? What is a new form of mobile marketing using online video?
III. INTEGRATING SOCIAL MEDIA INTO TODAY’S
MARKETING STRATEGIES [LO 19-3; LO 19-4]
Marketing managers need to understand how to:
• Tie social media into the strategic marketing process.
• Select the right social networks to generate sales for their brands.
• Measure the results of their social media programs.
A. Social Media and the Strategic Marketing Process
• The strategic marketing process (Chapter 2) and the communications process
(Chapter 17) apply to both traditional and social media.
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• The differences between traditional and social media are:
a. Traditional media:
b. Word-of-mouth:
• May occur among the “passive receivers” but…
• Communications generally end with the receiver.
c. Social media:
• Desires that the message does not end with an individual receiver.
• Instead:
– The goal is to reach “active receivers”…
– Who will become “influentials”…
– Who will become “delighted” with the brand advertised…
d. Success in social media marketing:
• Relies heavily on the ability of a marketing program to…
B. Selecting the Social Network
When selecting a social network, a brand manager assesses factors like:
a. The number of daily visitors to a social media website.
b. The characteristics of these visitors.
1. Audience Data Available for Social Networks.
a. Provides user profile data to help brand managers choose among social
network alternatives.
b. For Facebook: