IST3005

Lec:-04

Social Media & the Marketing

Objectives

Lecturer: Patrick Afundi 1

 Objectives

 The Marketing Mix

 Why is social media valuable to marketers?

 Goals of Social Media Marketing
 What marketing objectives can organizations meet when they
incorporate social media in their marketing mix?
 Evolution of the Marketing Communication

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 Review:

Web 2.0: The Defining Characteristics of Social Media

 The Web Is the Platform

 User Participation, Collaboration, User-Generated Content, and
Crowdsourcing
 User-Defined Content
 Network Effects
 Scalability
 Reputation Economy

Crowdsourcing means to harness the collective knowledge of a

crowd to solve problems and complete tasks

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The Web “IS” the Platform

Cloud computing. The general term for

anything that involves delivering hosted services
online.

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Network Effects and Scalability

 Network effects. The value added for all users by

each individual user.
 Scalability. The ability to grow and expand capacity
as needed without negatively affecting the
contribution margin of the business.

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Perpetual Beta and Reputation Economy

 Perpetual Beta. Developers are able to introduce new

features in products even if testing and refinement are
not yet complete. It is continual, on-going development.
 Reputation Economy. The value that people exchange
is measured in esteem as well as money.

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Show Me the Money! -Monetization

 Business Models and Monetization

 Psychic Income

A revenue stream is a source of income detailed in the business model.

Psychic income is perceived value that is not expressed in monetary form.

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The Marketing Mix

Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.

The marketing mix includes the

4 Ps of Product, Price,
Promotion, and Place
(distribution).

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The 5th P of Marketing

Today, we need to add the fifth P to the Marketing Mix.

Participation

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Social media marketing
Social media marketing is the utilization of social media
technologies, channels, and software to create, communicate,
deliver, and exchange offerings that have value for an
organization’s stakeholders.

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Social media marketing Goals

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Marketing Communication: From Top-Down to Bottom-Up

A micromarket is a group of consumers once

considered too small and inaccessible for marketers to
pursue.

Niche products appeal to small, specialized groups of

people.

In the interruption disruption model the source of a

communication delivers messages to audiences whether they want
to receive them or not, and regardless of whether these messages
are directly relevant to their unique needs. 12-1
Social Media Achieves Marketing Objectives

 Promotion and Branding

 Customer Relationship Management and Service
Recovery
 Marketing Research
 Retailing and E-commerce

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Social Media Achieves Marketing Objectives (cont.)

The Evolution of Marketing Communications

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Social Media Achieves Marketing Objectives

 Promotion and Branding

 Extend and leverage the brand’s media coverage
 Influence the consumer throughout the decision-
making process

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Core Types of Media

 Paid Media: Media for which you assessed monetary fees

 Owned Media: Media channels the brand controls
 Earned Media: Media channels beyond the control of the
company

Examples of Paid Media include

advertising, public relations, and search
engine marketing.
Examples of Owned Media include
corporate websites, e-commerce sites, and
corporate blogs.
Examples of Earned Media include word 16-1
or mouth and publicity.
The Role of Social Media in the Consumer Purchase
Process

Increase Awareness

Influence Desire

Encourage Trial

Facilitate Purchase

Cement Brand Loyalty

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

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

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 Customers use TreatCards—which also double as gift cards—to
earn points for purchases, and those that opt in to the social media
bonuses automatically earn additional points. Twitter and
Foursquare accounts are updated each time the card is swiped and
points are earned or redeemed. As a customer earns points, he or
she can redeem them for free cones.

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Social Media Achieves Marketing Objectives

 Customer Relationship Management (CRM) and

Service Recovery
 Social CRM uses software to fine tune the offer
and build intimacy with the customer
 Social recovery is the actions an organization
takes to correct mishaps and win back unhappy
customers .
 Retailing and E-commerce
How? –Discuss
(-see David’s Flower case Activity)
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Qns

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