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How is Social Media Changing the Face ofMarketing?
By Katie Ford
For years, traditional marketing involved a one-way communication effort. Through publicrelations and advertising campaigns, companies put forth value propositions to generatemarket appeal, attract and retain customers, and drive sales. However, with the rise of socialmedia such as blogs, online forums, and social networks like MySpace and Facebook, thevoice of the consumer is quickly drowning out those carefully crafted company messages.With 3.5 million brand-related conversations taking place online daily in the United States,companies are realizing that marketing to today’s technology-driven consumers meansengaging in two-way communication.“With the rise of social media, the transparency of information is increasing and companiesare not able to hide behind their branding experts any longer,” says Micha Mikailian, founderand CEO of eBoost Marketing in San Diego, Calif. “The successful companies of the futureare going to have to establish a sense of community with their customers, listen to theirconcerns, and get them involved in the company.”
Indeed, with democratization of information through social media, marketers are nding that
consumers expect to engage in dialogue with brands rather than merely listen passively, saysEric Weaver, president of Brand Dialogue in Seattle, Wash. “Marketers who leverage thesetools are showing their markets that they are not merely window-dressing when it comes toexpressing an interest in their customers,” Weaver says.
Why Should Companies Include Social Media in TheirMarketing Plans?
Experts say that social media platforms are ideal for building community and soliciting con-sumer feedback. Forward-thinking companies are leveraging blogs, in particular, to open com-munication lines between product developers and end users. Like virtual water coolers, theseblogs become a meeting point for troubleshooting, relaying feedback, and offering ideas forimprovement, which can result in products and services that are more relevant and useful tothe consumer. Not only does this new level of “conversation marketing” enhance customersatisfaction, but it also builds community. End users feel they are a part of the company’sprocess and become evangelists for the brand.
“Brands don’t have to spend money to attract people; they just have to gure out how they
can add value to the existing conversations that are taking place online,” says Kim Gregson,an assistant professor in communications at Ithaca College in New York.Adds Weaver: “If marketers value their customers, they must consider social media as part
of their brand strategy. Any Google search — typically the rst place customers go to nd outmore about your brand — will not only turn up your ofcial company Web site, but it will likely
show customer-generated commentary on your brand — both positive and negative. Market-ers who ignore this community conversation do so at their brand’s peril.”Adds Weaver: “If marketers value their customers, they must consider social media as part
of their brand strategy. Any Google search — typically the rst place customers go to nd outmore about your brand — will not only turn up your ofcial company Web site, but it will likely
show customer-generated commentary on your brand — both positive and negative.
Why Companies Should
Include Social Media
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Social Media Rules of
Engagement
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Social Media Tools: Are
Some Better Than Others?
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Companies Least Likely To
Benet from Social Media
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Measuring Social Media
ROI
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Summary
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INSIDE
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Hoover’s White Paper:
A Guide to Marketing in the Age of Social Media
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Marketers who ignore this community conversation do so attheir brand’s peril.”Mikailian says ignoring the dialogue opens the door for yourcompetitors to forge more meaningful relationships with yourcustomers. “However, it’s important to recognize that socialmedia is more than a marketing tactic, and its success is de-pendent on integrating it with a genuinely open and customer-centric company culture.”
What are the Rules of Engagementfor Marketing through Social Media?
Though technology-based companies were the pioneers of en-gaging consumers through social media, many household con-sumer brands have taken the leap now as well. From Facebook
proles to podcasts to virtual stores in the Second Life virtual
world, mainstream companies like Coca-Cola, Ford Motor Co.,Toyota, Whirlpool, and Target are tapping into the online action.These companies have learned – and some have learned thehard way – that promoting your brand through social media re-quires chucking out old marketing rules of thumb and adoptingnew rules of engagement. Adages like “never let them see yousweat” are mantras of yesterday.“Marketers of old generations were taught to try to displeaseas few people as possible and to be appropriate and acceptableto as wide an audience as possible, in hopes of maximizing rev-enue opportunities,” Weaver says. “In other words: high level ofpolish, avoid dissent, and control your image.”No more, says Weaver. Generation X and Y marketers havelearned to share more with others and to worry less aboutfaçade and more about substance.“To me, they seem less concerned about appearances and moreinterested in being understood. They prefer to be themselves
and to nd others with shared outlooks and afnities rather
than trying to be all things to all people,” he says. “With the
search and afnity tools inherent in social media, younger
marketers seem to embrace these tools more readily, comparedto older marketers who are more likely to vet image and copythrough management, public relations, and legal departments.”According to Weaver, companies that decide to leverage socialmedia in their marketing plans should do four things:1.
Be transparent and honest.
Consumers often assume mar-keters are self-interested. By being transparent, you curtaildoubt.2.
Ask your visitors to provide feedback on your communica-tion efforts.
These tools allow you to easily gather feedback.3.
Be fearless.
Many marketers will cringe when they get
their rst scathingly negative comment. You will receive both
positive and negative commentary. Use it to learn about yourmarket and your brand impression.4.
Draw up engagement boundaries.
When should you respondto a negative critique? When should you be silent? When shouldyou ban someone from your corporate blog? Determine howyou will behave in the public eye – in other words, when you’llassert control and when you’ll let the market be itself.
Cory Trefletti, president and managing partner of marketingcapital rm Catalyst in San Francisco, Calif., says a surere way
to nip negative commentary in the world of social media is tomake sure your promise matches your experience. However, in
the event that you uncover unfavorable comments oating in
virtual space, damage control in social media operates prettymuch like it would with any other medium. You must catch thenegative commentary early on, listen carefully to what is beingsaid, and then react accordingly.“If you ignore it, the momentum of the commentary will only
get stronger and worse,” Trefletti says. “Even though you
might be drawing more attention to the problem initially,you’ll actually increase customer loyalty if you address it andrespond. That says to the consumer, ‘We’re working on it. Wehear you.’ And if you can’t change whatever prompted thenegative comments, you have an opportunity to explain to yourcustomers why that change can’t be made. This type of proac-tive engagement with your customers makes you a leader, nota follower.”John Cass, author of “Strategies and Tools for CorporateBlogging,” says that being genuine with your customers is thecrux of success in social media. In fact, those who have tried tomanipulate the system in their favor have given rise to negative
new terms. One example is “astroturng” -- the practice of rep
-resenting oneself as a disinterested member of an online com-munity when you’re actually paid by a company to post favor-able comments. Another example is “ghost blogging” -- whenthe person doing the writing on a blog is not the showcased
personality, but a hired hand. Says Cass: “I think it’s ne if, for
instance, an executive gets his blogging entry ideas from peers,but he should be the only one doing the writing in the end.”
Are Certain Types of Social Media Tools Betterthan Others?
As with any marketing plan, it’s important to take the time tostudy and participate in all types of social media as an audiencemember before engaging in marketing to those audiences. Mis-steps are painful — and very public.
Trefletti says that the core marketing principles of yesterday
apply to marketing to tech-savvy consumers today: Identify
your audience and then nd the best way to reach the largest
group with minimal waste. “As a general rule, bloggers are very
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