Chapter 21 ♦ Customer Relationship Management (CRM) 21-1
CHAPTER 22 Social Media and Marketing
CHAPTER FEATURES
Chapter Features
Key Points
✓ Marketing & You
Students are given a survey to determine how much other people’s
opinions influence their decisions.
✓ Customer Experience
Location-Based social networks are offering incentives for customers
who check-in to a place. This gives companies information about
platforms used by customers and more ways to bring them into
stores.
✓ Company Clips
There is an increasing number of children with cell phones. This
video addresses some conflicts between parents and service
providers over who controls children’s access to sign up for
subscription services on cell phones.
USING THIS MANUAL
Chapter twenty-two includes six learning outcomes that help students become more familiar with social media and
has become more advanced. The horrible earthquake in Haiti was a
highly successful charity drive through texting.
✓ Application Exercise
Students find a social media policy for a brand of their choice, and a
large nonprofit after researching social media governance.
✓ Case Study
Gatorade’s mission control center acts as a focal point for the
products social media monitoring.
21-2 Chapter 21 ♦ Customer Relationship Management (CRM)
LEARNING OUTCOMES
1 Describe social media, how it is used, and its relation to integrated marketing
communications
Social media is any tool or service that uses the Internet as a basis to facilitate communication and conversation. At a
2 Explain how to create a social media campaign
3 Evaluate the various methods of measurement for social media
Measurement is an important area within social media. Three primary areas include social media measurement that
4 Explain consumer behavior on social media
Social media usage is growing and has changed the way we do everything, from how people communicate with family
and friends to how brands provide service to its customers.
5 Describe the social media tools in a marketer’s toolbox and how they are useful
A number of tools and platforms can be employed as part of an organization’s social media strategy. These include
6 Describe the impact of mobile technology on social media
Mobile technology (including devices like the iPad) have revolutionized the way people access information and stay
CHAPTER OUTLINE
1 Describe social media, how it is used, and its relation to
integrated marketing communications.
PowerPoint 22-4:
What is Social Media?
I. What Is Social Media?
A. Social Media Any tool or service that uses the Internet to facilitate
conversations.
1. While social media is a great way to interact with customers, there are
Chapter 21 ♦ Customer Relationship Management (CRM) 21-3
PowerPoint 22-5:
Social Media Tools and
Consumers
PowerPoint 22-7:
How Consumers Use
Social Media
Review Question 1.1
PowerPoint 22-9:
Social Media and
PowerPoint 22-10:
Crowdsourcing
implications for marketers using the platform:
o Marketers do not control the Internet
o Word of mouth can directly affect the bottom line
2. Consumers use social media to exchange information with each
other, collaborate with others, and have conversations.
B. Consumers are found on various types of social media platforms, including
social networks, blogs, and media sharing sites. Alternative platforms
such as Smartphones and tablets have increased social media usage.
2. Social Commerce—A subset of e-commerce that involves the
C. Many marketing budgets are swinging more towards social media
strategies. Social media allows one–on-one communication (opposed to
the one-to-many communication in traditional media).
2 Explain how to create a social media campaign
PowerPoint: 22-13:
PowerPoint 22-14:
Leveraging Different
PowerPoint 22-15:
The Listening System
II. Creating a Leveraging a Social Media Campaign
It is important for companies to develop a strategy before diving into social
media. There are three key distinctions between a brand or company’s presence
on the Internet:
1. Owned Media Online content that an organization creates and
2. Earned Media A PR term connoting free media such as mainstream
media coverage.
3. A customer-centric focus requires learning, knowledge management,
A. Listening System
Customers assume brands are on social media. To have an effective
21-4 Chapter 21 ♦ Customer Relationship Management (CRM)
PowerPoint 22-17:
Social Media Objectives
Review Question 2.2
PowerPoint 22-18:
RLO: Create a Social
Media Campaign
nothing changes, that the brand is insincere.
B. Social Media Objectives
Social media objectives need to be developed with an understanding
of how social media changes the communication dynamic with and
for customers.
Some ideas for setting objectives:
o listen and learn
C. Building Trust Online
Trust is at the center of customer relationships. If customers trust you,
they will engage with you, provide feedback, and promote your
products. To promote trust:
o Be responsive.
3 Evaluate the various methods of measurement for social
media.
PowerPoint 22-20:
Evaluation and
Measurement of Social
Media
PowerPoint 22-21:
Three Areas of
Measurement
Review Questions 3.1, 3.2
III. Evaluation and Measurement of Social Media
Despite the numerous tracking metrics available for social media, there is a lack
of distinct performance indicators to attach those metrics to, making true
There are 3 key areas for marketers to monitor for measurement:
1. Social media measurement—measures conversion from social media
follower to actual customer.
2. Public relations measurement—measures the impact social media has
4 Explain consumer behavior on social media.
IV. Social Behavior of Consumers
Determining who the social marketer is trying to reach helps companies
determine whether or not a social media campaign is even appropriate for
the company.
Chapter 21 ♦ Customer Relationship Management (CRM) 21-5
Powerpoint 22–24, 22-25:
Categories of Social
Media Users
There are 6 established catetgories of social media users, and on emerging
category:
1. Creators
2. Critics
5 Describe the social media tools in a marketer’s toolbox and
how they are useful.
Virtual Worlds and Online
Review Question 5.1
PowerPoint 22–29:
Blogs
PowerPoint 22-30:
Microblogs
PowerPoint 22-31
Social Networks
PowerPoint 22-35:
Location-Based Social
Networking Sites
V. Social Media Tools: Consumer an Corporate Generated Content
times, or even by all companies.
A. Blogs
Blogs allow marketers to create content in the form of posts, which build
trust.
Corporate Blogs are sponsored by a company or one of its brands and
1. Microblogs— Blogs with strict post limits. These tend to be very
short, such as Twitter, medium, such as Facebook status updates, or
can be fairly lengthy, such as Tumblr, which can post video and whole
news stories.
B. Social Networks—allow individuals to connect with friends, peers, and
business associates. There is a niche social network for most groups.
Facebook is the largest social network.
E. Location-Based Social Networking Sites—sites combining the fun of social
networking with the utility of GPS technology. Foursquare and Facebook
Places are some examples.
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Gaming
PowerPoint 22-38:
RLO: Social Media
Marketer’s Toolbox
Review Question 5.2
Life.
Social gaming is another phenomenon, with the largest growth in 43 year old
women.
MMOGs target the 18- to 34-year-old male.
6 Describe the impact of mobile technology on social media.
VI. Social Media and Mobile Technology
The major implications of new platforms such as Smartphones, netbooks, and
PowerPoint 22-40:
Mobile and Smartphone
Technology
PowerPoint 22-41
PowerPoint 22-42:
Common Mobile
Marketing Tools
PowerPoint 22-45:
The Changing World of
Social Media
Review Question 6.1
Smartphones allow consumers to do nearly everything a desktop computer
does from anywhere, which has opened the door for mobile advertising. Part
of the popularity comes from:
1. low barrier to entry due to platform standardization.
2. fewer customers concerned with privacy associated with their phones.
Common mobile marketing tools include SMS, MMS, MOBI and WAP sites,
Mobile ads, Bluetooth marketing, and apps
B. Applications and Widgets
C. Social media changes more rapidly than texts like this can keep up with
in print. What are some changes from this chapter that students can
point out? Are there new developments they would include?
KEY TERMS
Chapter 21 ♦ Customer Relationship Management (CRM) 21-7
Suggested Homework:
• The end of this chapter contains an assignment on the Marketing to Kids video and the Starbucks case.
REVIEW AND APPLICATIONS
1.1 What are some ways that social media has changed your daily life? What can marketers take advantage of
for their promotional purposes?
Students’ answers will vary. Some examples could include constant communication with family and friends, the
2.1 Why is having a social media campaign strategy important?
Strategy is important because it links social media tactics to a larger plan. For example, if gaining awareness is a
2.2 With a partner, choose a local business that is utilizing social media effectively. Analyze what they are doing
by conducting your own social media monitoring. What tools can you use? What are the company’s
objectives? What are they doing right?
3.1 What are some tools businesses can use to measure social media? How effective are these tools?
Social media measurement: Ever-changing metrics that are used to determine the ROI of each tool. Social media
3.2 What are some problems with measuring social media (e.g., what does a “like” on Facebook really mean?)?
While social media does offer more measurement than traditional advertising, it is still evolving. There are some
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4.1 Go online to your favorite social media sites. What are brands that have garnered success there? What are
some brands that have not been successful with social media? Based on this comparison, what are the key
ingredients to getting customers to engage with a brand?
Students’ answers will vary. Starbucks, Coca-Cola, Pepsi, and M&Ms are a few good examples of brands that have
5.1 Which social media tools do you think are the most useful for most businesses? Why?
Right now, the social media tools that are most useful are Facebook because of its size, Linked In because of its
5.2 Assume you are starting a new yogurt store on campus. Develop a profile of your likely target market. What
social media tools do you think will be most effective at reaching that audience? Why?
6.1 What do you think is the future of mobile technology? How do you think mobile technology will change
people’s daily lives? How will it change marketing?
Mobile technology has been predicted to be the “next big thing” for marketing, and finally it looks like this has
Supplemental Exercise: Group Work
Review and Applications
Review and Application Question 1.2 and the Application Exercises are well suited for group work. For Question
1.2, divide the class into small groups of 4-5 people. Students from each group should read the question and then use
their textbooks, or any work that was completed previously, to perform the exercise. Then each group should discuss
or present its work to the class. For the Application Exercise, students should form groups, complete the project in–
class, and report results back to the entire class.
APPLICATION EXERCISE
Purpose: To allow students to grasp the implications of personal social media use and social media use by companies,
and how the two can overlap with negative outcomes. Also, to understand why many companies have social media
policies.
Setting It Up: The exercise in the text is formatted as an individual assignment. To adapt for class, assign the research
One major issue regarding social media is the development of a company-wide social media policy—that is, a
policy that states who can say what, when, and where on social media platforms (e.g., Facebook, blogs, Twitter).
Chapter 21 ♦ Customer Relationship Management (CRM) 21-9
Companies and nonprofit organizations alike are struggling with social media policies, and there has been an
Questions
1. Why do you think social media policies are important?
Social media policies provide guidelines as to what can be said and who can say it. It is important to make sure that
2. What are some of the common elements you see in each of the examples of social media policies?
Students’ answers will vary. Generally you will see rules for each tool such as Facebook, Twitter, and so forth.
3. How do you think social media policies should extend to employees? Should what an employee posts on
his personal Facebook page regarding his work life be held against him? Why or why not? Are there
situations in which firing an employee for private posting is fair?
ETHICS EXERCISE
1. Do think that this practice violates privacy, or is it acceptable since it uses information that a person has
posted voluntarily?
2. What are some promising ways that companies can use this data?
Targeting, segmentation, and behavioral analysis are all promising. Using preferences and searching patterns can
3. What are some questionable ways that companies can use this data?
MARKETING PLAN EXERCISE
Your final strategic marketing plan exercise is to identify the ways in which your company will leverage the capabilities
of social media into the plan you have developed throughout the class. You will need to determine if social media is
right for your plan, and which tools will best reach your target market. Use the following exercises to guide you through
the social media aspects of the strategic marketing plan.
21–10 Chapter 21 ♦ Customer Relationship Management (CRM)
1. Return to your Part 1 worksheet. Review your entries for advantages and disadvantages of entering the Internet
space. With your additional knowledge of segmenting markets and your more extensive marketing plan, re-evaluate your
2. Review the Internet capabilities of your target market from your Part 2 worksheet. Do these capabilities change with
the addition of various types of social media?
3. Review your company URLs from your Part 3 worksheet and add any social media URLs that you will be using to
develop your brand’s online presence.
4. Look at your Part 5 worksheet and revise or add to your online promotion section with a specific eye to social
5. Review your part 6 worksheet to see if the costs associated with on-line promotion, media costs, and other costs will
changed based on your social media promotion strategy. Also, will social media customers be offered different
promotions/discounts than other online customers? Than off-line customers?
CASE STUDY
Gatorade’s Effort’s at Integration
1. Why do you think having the Mission Control central to the marketing department is important to
Gatorade?
Because social media requires constant monitoring to respond to customer posts (especially managing negative
2. Why do you think social media is so important to Gatorade? Do you think it deserves this placement
within the marketing mix?
Students should consider Gatorade’s target market—based on their commercials, it seems that Gatorade is
3. Do you think that social media will be this important to most brands in the near future? Why or why
not?
Part 7 ♦ Technology-Driven Marketing – Solutions 21–11
LESSON PLAN FOR VIDEO
Company Clips
Segment Summary: Hard to Sell to Kids
Marketing to Kids
As more and more kids today are getting cell phones, concerns about marketing to children through mobile phones have
increased. Children can easily subscribe to services that are then billed to the parents’ phone bill without the parents’
prior knowledge or consent. Although some mobile phone companies have taken measures to limit children’s ability to
make purchase decisions, it is largely up to the parents to monitor such activity. Pay–as-you-go services are ideal for
kids’ cell phones because the kids can only spend what their parents approve of and pay for ahead of time.
1. What type of marketing is often used in the types of games children purchase?
2. Describe the mobile marketing tools used by companies to influence children to purchase items on their
phones.
3. Who is Kajeet targeting? Explain your reasoning.
21–12 Part 7 ♦ Technology-Driven Marketing – Solutions
PRE-CLASS PREP FOR YOU:
PRE-CLASS PREP FOR YOUR STUDENTS:
• Preview the video segment for Chapter 22. This
exercise reviews concepts for LO6.
• Review your lesson plan.
• Make sure you have all of the equipment needed to
show the video to the class, including the DVD and a
way to project the video.
• Have students familiarize themselves with the
following terms and concepts: mobile technology,
consumer protection and privacy, and marketing to
children.
• Review Web sites of cell phone providers such as
AT&T, T-Mobile, Verizon, and Sprint.
VIDEO REVIEW EXERCISE
ACTIVITY
Begin by asking your students the following questions:
• “What is an appropriate age for children to begin using cell phones?”
• Segue into a lecture that centers around these questions: “How does technology compromise
consumer privacy?” and “Who should be responsible for protecting consumer privacy?”
• Review the negatives and benefits of cell phone technology and what it means to have a cell
Viewing
1. Should cell phone companies be held responsible for ensuring that children are not targeted for
purchasing decisions, or is this the responsibility of parents?
2. Do you think that federal laws should forbid marketers from having direct access to children about
• Spark a debate in class by asking students to respond to the following statement: “Parents should
screen cell phone usage of all minor children.”
students to be prepared to share their research at the next class meeting.
Supplemental Exercise: Group Activity
Corporate Social Networking
The group activity should be completed after some chapter content has been covered, probably in the second or third
session of the chapter coverage. For the activity listed below, divide the class into small groups of four or five people.
Provide the information and the questions asked by the class activity.
Group Activity – Corporate Social Networking
Companies are increasingly using social networking sites such as Facebook and Twitter as part of ongoing business
practices. The outcome of this exercise is to get students to understand the impact of corporate social networking.
Divide the class into groups of four or five students. Each group should identify one company that engages in corporate
1. What social media Web site(s) does the company utilize?
2. Who is the company’s target market? Does the company do a good job of targeting these individuals through its
social networking site? Why or why not?
After each group is finished, have them share their ideas with the class.
GREAT IDEAS FOR TEACHING CHAPTER 21
Mandeep Singh, Illinois University
ANALYZING AN ORGANIZATION’S WEB PRESENCE
Assignment Overview
The rapid proliferation of the World Wide Web (Web) has seen the emergence of a multitude of Web sites
accompanied by a multitude of business models. While there is no certainty of who will survive in the competitive Web
environment, one thing is for certain: the Web has changed the way business is conducted. The intent of this assignment
Project Objective
Company Websites should mirror the ‘marketing strategy’ of the business those sites drive. This assignment serves the
dual purpose of:
1. Making students critically evaluate an organization’s Web presence. Students are expected to identify the
21–14 Part 7 ♦ Technology-Driven Marketing – Solutions
2. Requiring students to evaluate an organization’s Website from the Integrated Marketing Communications
(IMC) perspective.
Students are assigned specific Websites and are required to evaluate the key elements driving an organization’s Web
strategy.
Overview of the Web site
• Identify the nature of site (product/service) provider? Develop a brief industry profile.
• What is the value source from the customer vantage point?
Competitor Analysis
• Who are the main non-web competitors? What are their main competitive strengths?
• Who are the Web competitors? What is their Web strategy? What are their unique strengths? Is their source
of volume and target market share different from ours?
Competitive Advantage—Is It Sustainable?
• The Web Brand: provide a Brand Positioning Statement (the value proposition).
• How is the end users (and intermediary users) value proposition redefined? Compare the “old” benefits
structure with the new Web site driven benefits structure.
Consumer Perspective
• Does this Website provide a personalized and convenient shopping experience? Does it build a customer
profile? Is this profile automatically deployed on subsequent visits?
• Is the Website easy to use? Is it involving? Can it generate loyalty? Will it be in business 5 years from now
(why)?
Part 7 ♦ Technology-Driven Marketing – Solutions 21–15
• What are some suggested improvements/modifications? How will they make for a more
competitive/profitable and sustainable business?
Web Presence from the Integrated Marketing Communications (IMC) Perspective
• Discuss how this Web presence parallels the organization’s overall marketing strategy?
Debbie Easterling, University of Maryland Eastern Shore
COMPLIMENTS & COMPLAINTS:
ONLINE AND ON TIME
For some time, I have used a “Compliment & Complaint” exercise on the first day of a Marketing Principles class.
After I have introduced myself, I ask students to introduce themselves by sharing with the class – a memorable marketing
exchange (with a marketer that the class would recognize). The exchange may have resulted in either positive or negative
feelings. After allowing them a few minutes to organize their thoughts, students then volunteer to tell their stories.
Students frequently mention certain retailers, airline marketers, communications marketers, and footwear and clothing
marketers.
Students are then given their first assignment of the semester: to provide feedback to the selected marketer. I’ve
found the best way to do this is by using PlanetFeedback. PlanetFeedback.com is a web site designed to help consumers
By visiting the site, students will receive help in crafting their letters through a dynamic letter generator and will
also be assured that their letters get to the right person. Moreover, they will begin to understand the significance of
consumer power – as the site describes its mission:
• to empower consumers and increase their control;
industries and companies receiving the most letters (both complaints and compliments). These could be integrated into a
Product or Service discussion. Additionally, the site may be utilized in a discussion of Organizational Buying or Personal
21–16 Part 7 ♦ Technology-Driven Marketing – Solutions
PART 7 – SOLUTIONS
MARKETING MISCUES
Urban Store Format at CVS: Where did all the Cashiers go?
1. Has the electronic checkout supplanted the need for good customer service?
Electronic checkout has not supplanted the need for good customer service. However, the concern among CVS
customers stemmed from underlying issue that a customer could no longer choose between a cashier and a machine.
2. How should CVS respond to customers’ concerns?
There appeared to be major concerns related to the implementation of the self checkout systems at CVS. Given
that the systems themselves were described as clunky, prone to errors, and not intuitive, CVS should probably
CRITICAL THINKING CASE
Lyon College—Taking Control of its Social Media Ecosystem
1. What social media platforms do you think are most critical for Lyon College to engage?
Today’s current and future college have always known about and been immersed in technology—they are truly
2. Pick one social media platform and explain how it might be used from prospect to matriculate to
alumni to donor.
Chances are that students will select Facebook as the social networking provider of choice. According to Facebook
statistics for 2010, users spend over 700 billion minutes per month on Facebook, with more than 30 billion web
Part 7 ♦ Technology-Driven Marketing – Solutions 21–17