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Chapter 9
Social Media
CHAPTER OBJECTIVES
Students should be able to answer the following questions:
9.1 What constitutes a social network?

9.2 What are the unique characteristics of the primary social media websites?
9.3 What is the nature of social media marketing?
9.4 Which social media marketing strategies do companies employ?
9.5 How can marketers use social media strategies in international operations?
OVERVIEW
The continual growth of social network websites presents opportunities and challenges to
marketing departments from the smallest single-family business to major corporations.
Instant communication creates the potential to create buzz and excitement in a short period of
time. More sophisticated interactions with customers can be readily achieved.
Negative word of mouth and other developments can quickly damage a brand across a wide
range of customers and the general public.
Wholly Guacamole
A new production process allowed Wholly Guacamole to expand its network of business
and individual customers.
The company uses social media in combination with traditional media to expand its reach.
Questions for Students:
1. Have you heard of or purchased Wholly Guacamole products?

2. Do you think the company has made effective use of tie-ins with other products
and businesses?
Copyright © 2018 Pearson Education Ltd. Page 9-1

Objective 9.1: What constitutes a social network?
Social media includes any digital tool or venue that allows individuals to socialize on the
web.
A social network is a social structure of individuals and/or organizations that are tied together
in some manner.
Social media marketing is the utilization of social media and/or social networks to market a
product, company, or brand.
Social Networks
General social networking sites are broadly based and are designed to appeal to all
demographics, regardless of gender, age, race, income, or education (Twitter).
A niche social networking site focuses on a specific interest, hobby, or demographic group
(Our Time, Farmers Only).
Social bookmarking sites allow individuals to share bookmarks of websites.
Figure 9.1 identifies types of social networking sites.
Objective 9.2: What are the unique characteristics of the primary social media
web sites?
Social Media Sites
Figure 9.2 depicts characteristics of social media users.
Women tend to use social media more than men; blacks trend toward using Twitter and
Instagram.
Facebook
Facebook, the largest social media site, houses more than 1.2 billion users worldwide.
Facebook generates almost $2 billion in advertising revenue.
Facebook recently expanded its advertising services to allow marketers to target customers
on mobile devices based on an individual’s activity outside of Facebook, for “custom
audiences”
The number of teen users has declined more than 25 percent in the last three years.

The number of older consumers, individuals 55 years old or older, increased 80 percent to 28
million.
A behavioral targeting tool—called custom audiences—allows marketers to gather

information from the company’s websites and applications, and then uses that data to target
individuals when they visit Facebook.
Question for Students: What do you think is the future of Facebook?
Instagram
Instagram is a mobile photo and video social sharing network with more than 200 million
users.
Instagram users tend to be young, wealthy, and female. Almost 60 percent visit Instagram
every day.
The two most popular marketing tactics on Instagram are contests and crowdsourcing for
photos.
A new trend in retailing involves individuals uploading personal pictures wearing a particular
brand of clothing, which provides a consumer-to-consumer recommendation.
Twitter
Twitter’s users are more racially diverse than the internet as a whole or Facebook.
Approximately 41 percent of the 54 million Twitter users are of a minority race.
Marketers may monitor what customers are saying about a company or brand by using
Software, such as Tweetscan or Summize, to locate a brand or company name mentioned in
tweets.
Twitter works well for local businesses.
Figure 9.3 offers tips for using Twitter.
Pinterest
Pinterest is bulletin-board style social site that allows users to post photos and image-
based articles about events, special interests, or hobbies.
Currently, 70 million people use Pinterest and 70 percent are female.

YouTube
Figure 9.4 summarizes trends in video sharing.
Some videos depict how consumers interact with brands.
Consumer product reviews are also popping up on YouTube.
Some consumers enjoy modifying or re-creating ads they see.
YouTube can be used to show how to use or repair a product.
Branded videos tie posts by individuals to various companies and products.
Objective 9.3: What is the nature of social media marketing?
Social Media Marketing
Figure 9.5 identifies some of the more common reasons for engaging in social media
marketing.
Two frequently reported rationales are to stay in engaged with customers and increase
brand exposure to potential customers.
To do so, most brands utilize multiple social media networks.
Increase Traffic and Enhance Brand Image
Social media can also drive traffic, normally to the brand’s website.
To enhance a brand’s image. Social media should offer a venue for solving problems,
gathering useful information, and gaining insights.
Improve Search Rankings
Social media can boost organic search rankings with search engines.
When individuals more frequently mention the brand name on social media networks, the
ranking improves.
When the content or comments made about the brand fit the search terms, then the quality
of those interactions are increased and various search engines give more credibility to the
brand.

Customer Intelligence
Social listening, or listening to social chatter, often provides enlightening information to

marketing professionals.
Comments can be either negative or positive, but in most cases they will be honest opinions.
Figure 9.6 displays other functions related to social listening.
Social listening can be an excellent source of ideas for branded content.
A trend being examined by marketing professionals involves wearable devices, such as

mobile wallets and eye glasses that also serve as cameras.
Marketers use social listening to detect patterns or shifts in views of consumers.
Social listening patterns assist in identifying customer advocates. These brand advocates
often exhibit three characteristics:
 Behavioral commitment
 Emotional connection
 Quality communication skills
Increase Sales and Build Brand Loyalty
Developing brand loyalty and increasing sales are the ultimate goals of any marketing
program, including social media marketing.
Question for Students: How often do you use social media to investigate companies
or brands?
L’OREAL
L’Oreal provides an excellent example of successful social media marketing.
The company employs differing marketing strategies and unique Facebook pages for each
country in which products are sold.
Marketers seek to create content that will lead to social conversation.
Social media works best when customers encounter it before and after a purchase.
L’Oreal’s marketers believe that social media provides a unique venue for businesses to
connect with loyal customers while at the same time positively influencing others.

Objective 9.4: Which social media marketing strategies do companies employ?
Social Media Marketing Strategies
Social interaction remains as the fundamental basis for social media.
Figure 9.7 identifies ways to build a social media presence.
Building a Social Media Presence
Each brand has a personality, whether intentional or by default.
The personality chosen for social media should match the voice used in other venues and
marketing communications.
Figure 9.8 lists social media strategies.
Content Seeding
Content seeding involves providing incentives for consumers to share content about a brand.
The incentive does not have to be financial, although financial incentives tend to be the most
frequently used. A common method of seeding is offering a coupon, rebate, contest or other
financial incentive.
Occasionally a mistake, or what appears to be a snafu, can create social buzz.
A value-added incentive that can be part of a seed sharing program is offering customers
something exclusive that makes them feel special.
Appealing to consumer altruism, such as a campaign to donate blood in the wake of a

tragedy, offers an additional content seeding approach.
Real-Time Marketing
Real-time marketing is the creation and execution of an instantaneous marketing message in

response to and in conjunction with an occurrence during a live event.
Effective real-time marketing requires upfront strategic planning before assembling a war
room and prior to any live event.
Rules, procedures, and processes must be in place that allows the war team to react quickly.

Video Marketing
Figure 9.9 notes types of video marketing tactics.
Spending on advertising in videos on sites such as YouTube has reached $4.6 billion
annually and continues to rise.
Ads embedded in videos can be pre-roll (before the video starts), mid-roll (in the middle of
the video content), or post-roll (at the end of the content).
Most companies maintain YouTube channels in order to share various types of videos.
Videos can be (1) instructional or (2) cause-related.
Paying individuals to promote a brand has become a recent and new strategy in the video
arena. These individuals are known as vloggers.
Influencer Marketing
Influencer marketing involves an individual marketing a brand through social media.
It is word-of-mouth communication from individuals who are seen as thought or opinion

leaders within their social circles or as experts within particular fields.
Aligning a brand’s message with an influencer’s motivation will be the key to success.
To be effective, influencers must be deemed authentic and not as paid spokespersons.
Interactive Blogs
Interactive blogs permit visitors to send comments or posts, making them another important
component of social media.
Figure 9.11 lists three types of interactive blogs. A company can

 Create a blog
 Sponsor a blog
 Monitor individuals who like a brand and blog about it without financial
compensation
Consumer-Generated Reviews
Amazon and Best Buy pioneered this approach.
The increased use of online reviews by consumers has led to an increase in websites devoted
to providing them.

Marketers carefully study customer-generated reviews because they provide important
information about how customers evaluate brands and how an item compares to its
competition.
Viral Marketing
Viral marketing takes the form of an email or a video posted to a personal blog and passed to
other blogs or websites such as YouTube.
It can evolve into a form of advocacy or word-of-mouth endorsement.
Figure 9.12 lists methods for successful viral marketing programs.
Individuals should receive an incentive to pass the message along.
Following Brands on Social Media
Figure 9.13 highlights reasons consumers follow brands in social media.
Although they vary by social media site, the two top reasons tend to be (1) to keep up with
activities of the brand and (2) to learn about the product or service.
Objective 9.5: How can marketers use social media strategies in international
operations?
International Implications
In international settings additional complexities include, language differences, social norms,

and technological issues.
MyMarketingLab
Go to mymktlab.com to complete the problems marked with this icon .
Important Note to Professors:
The MyLab feature at Pearson will grant you access to the Integrated Campaigns in Action
within the Instructor’s Resource section.
The authors’ blog for professors and students may be found at http://blogclowbaack.net/

Both methods contain actual print materials produced for the campaign. Broadcasts
material such as video ads, TV ads, and radio ads are embedded using YouTube and
Pearson servers.
These features bring to life the exciting process of building integrated advertising and
marketing campaigns. Most important, you will have access to insights and background
information from the agencies and the companies involved in how the campaigns were
created.
IMPLICATIONS FOR MARKETERS

(Note to professors—these materials are not in the text. They provide a method for you
to summarize the chapter in a different way.)
Make sure your company investigates all possible social media venues.
Set quality goals for a social media program.
Recognize the ability to build relationships with customers through social media.
Watch for negative posts that can quickly damage your company’s image.
Target the best social media marketing strategies for the company.
Make certain messages that appear in social media outlets blend with the firm’s overall IMC
program.
REVIEW QUESTIONS
9-1. What is the primary function of social media?
Social media is designed for individuals to interact with one another. Social media
is both a means and a venue to allow socializing between people (and of course
businesses and their customers).
9-2. What value could a niche social network have for a business?
A niche social networking site focuses on a specific interest, hobby, or demographic

group. Others cater to family or lifestyle interests. Shopping networks provide venues
for individuals to share product reviews and information about brands and products.
These are not e-commerce sites but rather provide a meeting place that enables
individuals to share information with others about products or brands along with their
shopping experiences. They could inform the business about trends and fashions in
the market as well as provide a means to harvest customer details.

9-3. What makes Twitter radically different to Facebook?
Twitter is a microblogging service that allows individuals and companies to send

out tweets with a maximum of 140 characters per message. Twitter’s users are
more racially diverse than the internet as a whole or Facebook.
9-4. How has video posting changed the nature of social media networking?
They have broad exposure, and companies spend more money on them each year.
9-5. Describe Instagram and the typical user of the service.
Instagram is a mobile photo and video social sharing network owned by Facebook,
which has enjoyed an explosion in popularity during the past few years, with more
than 200 million users. Instagram users tend to be young, wealthy, and female.
Almost 60 percent visit Instagram every day.
9-6. List the characteristics of brand advocates.
Behavioral commitment, emotional connection, and quality communication skills

are the characteristics of brand advocates.
9-7. How can social media boost the organic search engine rankings for a
business?
Social media can boost organic search rankings with search engines. These increased
rankings occur for two reasons. First, individuals more frequently mention the brand
name on social media networks, because most algorithms on search engines examine
numbers of mentions. Second, if content or comments made about the brand fit the
search terms, then the quality of those interactions are increased and various search
engines assign greater credibility to the brand.
9-8. For businesses, social media is just about selling. Comment on this statement.
Developing brand loyalty and increasing sales are the ultimate goals of any marketing
program, including social media marketing. At the same time, if customers view a
social media outreach program as merely a masquerade for selling, they might be
alienated by such efforts. Instead, marketers should set the primary objective of a
social media program to engage consumers with the brand. Increasing sales should be
viewed as a by-product of social media marketing.
9.9. Describe content seeding.

Content seeding involves providing incentives for consumers to share content about a
brand.
9-10. Describe real-time marketing.
Real-time marketing is the creation and execution of an instantaneous marketing

message in response to and in conjunction with an occurrence during a live event.
Effective real-time marketing requires upfront strategic planning before assembling a

war room and prior to any live event. Rules, procedures, and processes must be in
place that allows the war team to react quickly.
9-11. What three types of interactive blogs support social media marketing
programs?
 A company or brand sponsored blog

 An individual or person who sponsors a brand and has a connection to the
company
 Individuals who speak about a brand with no financial connection to it
9-12. Describe viral marketing.
Viral marketing takes the form of an email or a video posted to a personal blog and
passed to other blogs or websites such as YouTube. It can evolve into a form of
advocacy or word-of-mouth endorsement. Individuals should receive an incentive to
pass the message along.
 9-13. Discuss the reasons why consumers follow brands on social media.
Student answers will vary based on their personal response. Refer to the MyLab
for an opportunity to assign this question, and all starred MyLab questions, to a
student discussion board.
Although they vary by social media site, the two top reasons tend to be (1) to keep up
with activities of the brand and (2) to learn about the product or service.
9-14. What issues complicate international social media marketing programs?
In international settings additional complexities include, language differences, social

norms, and technological issues.

Critical Thinking Exercises
DISCUSSION QUESTIONS
9-15. Suppose you were in charge of the social media for your college. Discuss the
pros and cons of each of the social media platforms presented in the chapter
(Facebook, Instagram, Pinterest, Twitter, and Tumblr). Which two would be
the most important? Why? Should the social media be targeted to current
students or prospective students? Explain why.
Student answers will depend on the platforms they choose.
9-16. Compare and contrast the social media sites Facebook, Instagram, Twitter,
Pinterest, and YouTube. Discuss ways they are similar and ways they are
different. Describe your level of involvement with each of these social media
platforms.
Student answers will vary based on their personal response. Refer to the MyLab for
an opportunity to assign this question, and all starred MyLab questions, to a student
discussion board.
Student answers will vary.
9-17. Suppose a local pizza chain with nine restaurants has asked you to help them
with their social media strategy. Discuss the pros and cons of each of the
primary social media platforms (Facebook, Instagram, Twitter, Pinterest,
and YouTube) for the pizza restaurants. Which one do you consider to be the
best? Why?
Facebook has wide exposure but a declining number of younger users. Instagram
relies on pictures. Twitter has limited text. Pinterest has a more exclusive audience.
YouTube has clutter.
They are all widely viewed.
9-18. Describe the current trends of consumer video-sharing. For each trend discuss
your personal experience of sharing, creating, or watching a video. Which
trend or trends impact you? Why?
9-19. Why has YouTube gained considerable popularity in recent years? How often
do you use YouTube? What types of videos do you watch? Do your friends and
relatives access YouTube? If so, how often and why? If not, why not?
Student answers will vary. They can share in class the types they watch and why.

9-20. Examine the reasons companies use social media marketing listed in Figure 9.5.
Rank the reasons from most effective to least effective based on your personal
experience with social media and brands that use it. Discuss your rankings.
Explain, with examples, your top three choices.
The reasons include engage fans, increase brand exposure, provide avenue for
customer interaction, increase traffic, generate leads, enhance brand image, improve
search rankings, gather customer intelligence, develop loyal fans, and increase sales.
9-19. Do you follow brands on social media? What is the reason for this? What
types of brands are better suited to following on social media and why? What
about the brands that you don’t like or have fallen out of favor, do you still
follow them? Carry out research and ask ten other people whether they do,
or ever have, followed a brand on social media. What were their reasons for
doing this? From your findings, what seems to be the trend and why?
Student answers will vary. The two reasons consumers follow brands in social
media tend to be to keep up with activities of the brand and to learn about the
product or service. They are not following a brand with the goal of making a
purchase. Instead, they have purchased a brand, liked the brand, and then became
a fan or follower. If they are dissatisfied with a brand, they are not likely to follow
it on social media. They may use social media to lodge the complaint but will not
become a fan or follower.
9-22. Have you made brand purchases based on comments made on social media?
Why or why not? Provide specific details. Have you decided against purchasing
a particular brand based on comments on social media? Why or why not?
Provide specific details.
Student answers will vary. They can discuss them in class.
9-23. Examine the social media strategies listed in Figure 9.8. Discuss each strategy in
terms of your personal experience. Describe whether the strategy impacts your
purchases and views of brands. For each strategy, discuss why it does have an
impact or why it does not. Provide details to support your thoughts.
9-21. What exactly is viral marketing? Find an example of it from your own country
or region. Why was it so effective? How did it become viral? Share your
findings.
Student answers will vary. Usually viral marketing means that the message is
designed to be passed from one consumer to another digitally. It can be an email or a
video posted to a personal blog. It will then move to other blogs or websites such as
YouTube. The message evolves into a form of advocacy or word-of-mouth
endorsement. Viral infers infection; it spreads just like a virus, from an individual to
all their friends. The only difference is that the individual chooses to pass on the
message.
9-25. Do you use consumer-generated reviews in making purchase decisions? Why or

why not? Are they valuable to consumers?
Students may or may not use them. Most probably do. They let people know what
others think about a product or service, which aids in making choices.
9-26. Brand managers often become excited when something the company posts on
the Internet goes viral and spreads like wildfire among consumers. What factors
contribute to a brand’s posting going viral? Discuss how the social media
strategies listed in Figure 9.8 can contribute to a successful viral marketing
attempt or unsuccessful viral marketing. Of the strategies listed in Figure 9.8,
which one would have the greatest chance of becoming viral? Why?
Student answers will vary based on their personal response. Refer to the MyLab for
an opportunity to assign this question, and all starred MyLab questions, to a student
discussion board.
Integrated Learning Exercises
9-27. South America’s fascination with social media is growing fast. Businesses
across South America are realizing the value of having a social media
presence. Argentina, Columbia, Brazil, Chile, Venezuela, and Peru are all in
Facebook’s top 25 markets. It has been estimated that there are 229,242,500
Facebook subscribers across South America as of June 2016. This represents
a 55 percent penetration rate. Visit the Facebook pages of the following
South American businesses, summarize the business approach and customer
engagement, and note the number of followers.
a. Metro Games (www.facebook.com/metrogames)
b. Juan Valdez Café (www.facebook.com/JuanValdezCafe)
c. Cindor (www.facebook.com/cindoronline)
d. Mama Lucchetti (www.facebook.com/MamaLucchetti)
e. Perro Lipigas (www.facebook.com/PerroLipigas)
Student answers will vary based on the site and its current information.

9-28. Name a brand that you really like and for which you have a high level of
loyalty. Access the brand’s website and the social media pages shown on the
brand’s website.. Discuss the information provided on each social media.
Based on the reasons brands use social media shown in Figure 9.5, discuss
what you think is the reason for each social media site. Evaluate how
successful you think the brand is with social media. Provide screenshots of
the social media sites and website to support your thoughts.
Student answers will vary widely.
9-29. Choose one of the following product categories. Select two prominent brands
from that category. Access each of the brand’s website and social media links
shown. Compare and contrast what information is provided for each brand and
social media. Which brand has the best social media presence? Why? Provide
screenshots to illustrate your points.
a. Sports equipment
b. Clothing
c. Restaurants
d. Beverage
Student answers will depend on the brands they select.
 9-30. Examine the reasons brands use social media shown in Figure 9.. Pick three
of the reasons and identify from your personal experience a brand that you
believe did well with each. It could be three different brands or one brand for
all three. Support your answer with specific information, links to the social
media pages, and screenshots illustrating your discussion.
Student answers will vary based on their personal response. Refer to the MyLab
for an opportunity to assign this question, and all starred MyLab questions, to a
student discussion board.
9-31. Figure 9.8 identifies strategies brands can use with social media. Describe
each of the strategies in your own words. Find an example of each strategy in
social media not described in the textbook. Provide the link and a screenshot,
explain why it is an example of the strategy, and give your evaluation of
whether the strategy was good or bad, and why.
Answers will depend on the brands and strategies chosen.
9-32. Figure 9.9 identifies six video marketing tactics. Go to YouTube and find an
example of each strategy. Provide links to your six videos and explain why
you think it is a good example of the particular strategy. Evaluate how well
the brand or company did with the video marketing strategy.

Student responses will depend on the videos they find.
9-33. Using a blog search engine, locate an example of an interactive blog. Evaluate
the blog. Is it effective? Why or why not? Provide a link to the blog and a
screenshot.
Answers will vary based on the blog chosen.
9-34. Use a search engine to locate an example of viral marketing. Evaluate the
viral marketing. Was it effective? Why or why not? Provide a link to the
viral campaign and a screenshot.
Answers will vary based on the example chosen.
9-35. We Are Social compiled a 2016 report focusing on social media use in the
Middle East. They found that 75 percent of the Qatar population were active
users while the United Arab Emirates stood at 69 percent, Saudi Arabia at 40
percent, and Egypt at 30 percent. Overall, this showed a 17 percent rise
compared to 2015. What is the social media use as a population percentage in
your country, and how might businesses make use of it?
Student answers will vary based on current statistics and the business focus adopted.
Blog Exercises
Access the authors’ blog for this textbook at the URLs provided to complete these
exercises. Answer the questions that are posed on the blog.
9-36. Hooters: http://blogclowbaack.net/2014/05/12/hooters-chapter-9/
9-37. Covergirl: http://blogclowbaack.net/2014/05/12/covergirl-chapter-9/
9-38. Social Media: http://blogclowbaack.net/2014/05/12/social-media-chapter-9/
Student Project: Creative Corner

The assignment is for students to work with a Greek fast-food outlet in central London.
Students are asked to create social media programs for the company.

CASES
Case 1 Amoy: An Old Tradition in the New Digital World
9-39. Which social media platforms should Amoy focus on to “attract a larger fan
base”?
Facebook, Instagram, and Twitter are good options. Twitter is perhaps the most
effective as it allows instant interaction and audience building.
9-40. How would you assess the effectiveness of the Amoy cooking competition
campaign?
Accurately measuring effectiveness is difficult, but there are various ways in which it
can be achieved. These include surveying the spikes or gradual increases in sales, the
increased engagement with customers on social media platforms, and the viewing of
content by the public. The figures provided in the case are good examples of
measurement options.
9-41. Which of the key social media strategies listed in Figure 9.8 have been
pursued by Amoy?
Students should identify:

 Content feeding—providing uploaded content
 Real-time marketing—livestreaming of events
 Video marketing—recipes and cooking competition
 Viral marketing—a combination of the above approaches
9-42. Amoy has not really developed an influencer marketing campaign. In the
roles of a specialist advisor, suggest how they should approach this type of
campaign.
Student answers will vary. A good approach might be to use individuals with a wide
social network to endorse the brand. The influencer need not be a celebrity.
9-43. How can Amoy overcome any potential language difficulties when they roll
out their social media campaign to a global audience?
Although language has a propensity to complicate matters, the primary solution is to

use visual images. Emotionally moving images tend to appeal to a broad range of
audiences irrespective of language boundaries.

Case 2 Post-It: Making the Ordinary Extraordinary
9-44. Which social media sites are best suited to this type of promotional campaign?
Why?
Student responses will vary. The company offers links to all of the media outlets
discussed in this chapter.
9-45. How could consumers, fans, and the company take advantage of new video-
posting technologies to promote the Post-it brand?
YouTube is the obvious answer.
9-46. What were the marketing objectives of the “Go ahead” campaign?
The idea was to build brand loyalty, increase interactions with customers, and create
buzz.
9-47. Would social listening be of value to Post-it’s marketing team? If so, how? If
not, why not?
It is a tough sell to get people to become “friends,” some would argue.
9-48. Which social media marketing strategies should Post-it’s team use? Provide
justification for your response.
MyMarketingLab
Go to mymktlab.com for the answers to the following Assisted-graded writing
questions:
9-49. Discuss the current trends of consumer video-sharing. Examine reasons

brands have become involved in social media marketing. For each of the
trends you identify, elaborate on ways brands can use social media
marketing to reach video-sharing consumers. Be sure to justify your choices
of social media marketing.
9-50. Describe in your own words each of the social media strategies (see Figure 9.8).
Suppose you are a marketing intern for a minor league baseball team located in
your region. Identify the pros and cons of each of the social media strategies in
terms of the minor league baseball team. Pick two of the social media strategies.
Describe a social media program the minor league baseball team could use.

Bonus Case
VIVE HOY
The market for carbonated soft drinks represents one of the largest and most lucrative
targets in the United States and around the world. Coca-Cola and PepsiCo have
dominated the industry for many years. As the competition continues to evolve, each
seeks out groups to attract and retain. Recently, PepsiCo reinvigorated its own efforts to
capture the Hispanic share in the United States.
Advertising Age reported that in 2004, PepsiCo ranked number 6 on the magazine’s
list of the Top 50 Advertisers in Hispanic Media, spending $68.5 million. Then, the
company dropped to number 27, spending $41 million in 2007. The next year, the
company dropped off the list and remained in that position for four years. At the same
time, Coca-Cola dropped its spending dramatically to the same group, although the
organization still spent $29.8 million in 2011, with a ranking of number 48 on the Top 50
list.
Javier Farfan, senior director for cultural branding at PepsiCo, noted that, “One of the
key reasons I came here is to figure out how to dive deeper into the Hispanic space.”
Suggesting that the company had somewhat “lost its way,” Farfan said, “In the
carbonated category, exponentially, growth is going to come from Latinos. There’s the
population growth, but we’re also more prone to drink soda. So it became really
important and strategic for Pepsi to get into that space.”
One of the outcomes was the “Vive Hoy” or “Live for Now” campaign and tagline
associated with a new wave of television commercials. Farfan noted, “There’s a new

mainstream evolving. It’s a different state of mind. Latinos don’t want to be separate;
they want to be included. We want to nod and wink to them in places where they actually
engage with media. Latinos watch MTV as much as Univision.”1
To more fully attract Hispanic patrons, Pepsi launched two new products, Paradise
Mango and Cherry Vanilla. Both were designed to attract Hispanic customers.
In addition to mainstream advertising and new products, Marketing Daily notes
another fertile ground. Hispanic consumers are “Social Media Catalysts,” according to
the magazine. A recent study conducted for Unilever revealed that Hispanic consumers
are “twice as likely to either share content or click on shared content than Americans in
general.” The report’s data indicates that “Hispanic consumers are also more influential
on social media: content they share garners more “click-backs” (the act of clicking shared
links to view the shared content) than content shared by non-Hispanic consumers.”
Although Hispanic consumers read more on mobile devices than other groups, they
are less inclined to share from those devices. At the same time, the youngest Hispanic
consumers do not have reservations about sharing from mobile devices, which indicates
the potential to reach them in ways that would lead to a larger community of advocates
for Pepsi.2
The next generation of marketing efforts will likely integrate messages for Hispanic
and non-Hispanic consumers as society becomes more blended. The net result will likely
be an expanding marketplace for companies that are able to attract individual groups
while at the same time reaching the mainstream audience.
(1) The Marketing Daily article noted that Hispanics, “are less likely to use
Pinterest or Twitter, and twice as likely to use email and nearly 50% more

likely to use blogging channels such as Tumblr and Blogger.” How should
PepsiCo’s marketing team respond to these statistics?
The team should focus on those most likely to reach the target market. The
message can then be more tailored and focused.
(2) What social media marketing goals should PepsiCo seek to achieve with
Hispanics? Why?
The company is reintroducing the product to consumers. The goal would be to

develop loyalty, create interaction, and hopefully drive additional sales over time.
(3) Which social media marketing tactics do you believe will be most effective for
PepsiCo when seeking to reach the Hispanic audience? Which would be least
likely to succeed? Defend your responses.
Student choices will vary.
Content seeding would involve incentives such as free Pepsi or other logical tie-
ins to soft drink consumption.
Real-time marketing opportunities might accompany sports with high Hispanic

interest, including soccer and the NBA. Each year, some NBA teams use Hispanic
names, such as Los Suns and Los Lakers.
Interactive blogs provide some opportunities, as noted in Question 1
Consumer-generated reviews would be less valuable.
Viral marketing would be great if the marketing team could discover an inno-
vative way to encourage interest.
(4) How might social listening be of value to PepsiCo with regard to the Hispanic
market? Justify your answer.
Marketers could discover any complaints about the company and its product or
messages. They might also discover what resonates with loyal consumers.

1
Natalie Zmuda, “Pepsi Refocuses on Hispanics,” Advertising Age, July 24, 2013,
http://adage.com/article/hispanic-marketing/pepsi-refocuses-hispanics-flavors-tagline/236269/, retrieved
March 6, 2014.
2
Karl Greenberg, “Hispanic Consumers Are Social Media Catalysts,” Marketing Daily, February 20, 2014,
http://www.mediapost.com/publications/article/219954/hispanic-consumers-are-social-media-
catalysts.html, retrieved March 6, 2014.

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Chapter 9

9.1 What constitutes a social network?

Questions for Students:

1. Have you heard of or purchased Wholly Guacamole products?

Copyright © 2018 Pearson Education Ltd. Page 9-1

Social bookmarking sites allow individuals to share bookmarks of websites.

Figure 9.1 identifies types of social networking sites.

Social Media Sites

Figure 9.2 depicts characteristics of social media users.

Facebook generates almost $2 billion in advertising revenue.

Copyright © 2018 Pearson Education Ltd. Page 9-2

A behavioral targeting tool—called custom audiences—allows marketers to gather

Question for Students: What do you think is the future of Facebook?

Twitter works well for local businesses.

Figure 9.3 offers tips for using Twitter.

Currently, 70 million people use Pinterest and 70 percent are female.

Copyright © 2018 Pearson Education Ltd. Page 9-3

Figure 9.4 summarizes trends in video sharing.

Some videos depict how consumers interact with brands.

Consumer product reviews are also popping up on YouTube.

Some consumers enjoy modifying or re-creating ads they see.

YouTube can be used to show how to use or repair a product.

Branded videos tie posts by individuals to various companies and products.

Objective 9.3: What is the nature of social media marketing?

Social Media Marketing

To do so, most brands utilize multiple social media networks.

Increase Traffic and Enhance Brand Image

Improve Search Rankings

Copyright © 2018 Pearson Education Ltd. Page 9-4

Social listening, or listening to social chatter, often provides enlightening information to

Figure 9.6 displays other functions related to social listening.

Social listening can be an excellent source of ideas for branded content.

A trend being examined by marketing professionals involves wearable devices, such as

Marketers use social listening to detect patterns or shifts in views of consumers.

Increase Sales and Build Brand Loyalty

L’Oreal provides an excellent example of successful social media marketing.

Marketers seek to create content that will lead to social conversation.

Copyright © 2018 Pearson Education Ltd. Page 9-5

Social Media Marketing Strategies

Social interaction remains as the fundamental basis for social media.

Figure 9.7 identifies ways to build a social media presence.

Building a Social Media Presence

Each brand has a personality, whether intentional or by default.

Figure 9.8 lists social media strategies.

Occasionally a mistake, or what appears to be a snafu, can create social buzz.

Appealing to consumer altruism, such as a campaign to donate blood in the wake of a

Real-time marketing is the creation and execution of an instantaneous marketing message in

Copyright © 2018 Pearson Education Ltd. Page 9-6

Figure 9.9 notes types of video marketing tactics.

Videos can be (1) instructional or (2) cause-related.

Influencer marketing involves an individual marketing a brand through social media.

It is word-of-mouth communication from individuals who are seen as thought or opinion

To be effective, influencers must be deemed authentic and not as paid spokespersons.

Figure 9.11 lists three types of interactive blogs. A company can

Amazon and Best Buy pioneered this approach.

Copyright © 2018 Pearson Education Ltd. Page 9-7

It can evolve into a form of advocacy or word-of-mouth endorsement.

Figure 9.12 lists methods for successful viral marketing programs.

Individuals should receive an incentive to pass the message along.

Following Brands on Social Media

Figure 9.13 highlights reasons consumers follow brands in social media.

In international settings additional complexities include, language differences, social norms,

Important Note to Professors: