Bringing ‘Market’ into Marketing Market Changes, Value Creation, and Social Media Raj Agnihotri, Ph. D. Assistant Profes

1. Brazil Executive Education Program Bringing ‘Market’ into Marketing Market Changes, Value Creation, and Social Media Raj Agnihotri, Ph. D. Assistant Professor of Marketing Director of Research at the Schey Sales Centre www.Agnihotri-Raj.com

2. Today’s Agenda 3 2 1 Discussion topics Outlining a social media startegy Exploring social media as a business tool • Understanding the current market environment

3. Let’s Do Some Thinking! Discuss within your group/table and come up with one of the ‘marketing trends’ that can be perceived as new and innovative!

4. What Would You Do? “A global bank executive recently described to us a challenge for our times. It turns out that a customer who normally would qualify for the lowest level of service has an impressive 100,000 followers on Twitter. The bank isn’t doing much yet with social media and has no formula for adapting it to particular customers, but the executive still wondered whether the customer’s “influence” might merit special treatment.” From: What’s Your Social Media Strategy? Wilsonand colleagues (2011), Harvard Business Review

5. So, the question becomes… • ~How can we summarize the market changes? • -The answer is...

6. market3.0 “connected, informed, empowered, and active consumers” (Prahalad and Ramaswamy 2004)

7. What’s Happening Out There? Organization Consumer Productt+1 (Agnihotri and Hu 2009) Collaborator Value Co-Creation Collaborator Market Evolution Organization Consumer Productt Collaborator Value Co-Creation Collaborator

8. How It’s Being Done? http://cloroxconnects.com/pages/home

9. Lead the Change • Ford Fiesta Movement, a campaign to promote the Fiesta model • Giving cars to 100 social “agents” and let them promote vehicle through Social Media • All without spending a dollar on traditional media Results of six month campaign • 4.3 million YouTube views • 500,000+ Flickr views • 3 million+ Twitter impression • 50,000 interested potential customers, 97% of which don’t own a Ford currently. http://chapter1.fiestamovement.com/agents/

10. How Firms are Using SM: twitter example (Rick Webb, Why Some Social Media Experts Are Good, May 31, 2011) Customer service/ tech support/warranties/PR/ marketing Array of twitter accounts Marketing/customer service Two different accounts Marketing/reservations/ customer service/billings Separate accounts for activities at an individual hotel or resort http://twitter.com/MarriottIntl https://twitter.com/FallsMarriott

11. How Firms are Using SM(Wilson, Guinan, Parise, and Weinberg 2011, Harvard Business Review) • 40,000 global employees • Internalsocial media use: a test platform, called EMC/ONE, that helped employees reduce the use of outside contractors • Generated more than $40 million in savings overall

12. A Social Capital Perspective (Kothandaraman, Agnihotri, and Kashyap 2011) Customer Value Social Capital… What? Structural Dimension Interactions to maintain Social Structure Relational Dimension Interactions to Build & Maintain Trust/Trustworthiness Cognitive Dimension Interactions focused toward Vision Sharing Organization’s Social Capital Social Media Use

13. A Strategic Approach Social-Strategy Elements Organization Value Drivers A Social Media Framework for Sales Organizations Social Media • Developing/Assessing Business Specific Social Strategy Elements • Formulating/Assessing Business Specific Value Drivers • Establishing/Assessing Business Specific Performance Metrics Customers Performance Metrics

14. Is It Really That Simple? • (From: Agnihotri et al. 2012) ELEMENTS CHANNELS • Goals Delineation • Information Communication • Competitive Orientation • Performance Evaluation • Social Content • Blogs • Audio, video & photo sharing • Microblogging (Twitter) • Social Networks • Social networks (facebook, LinkedIn, etc.) • Discussion/review forums • Wikis • Social • Interaction • Social media and events • Social media case studies CHALLENGES • Technology Reluctance • Marketing process Interruption • Undisciplined Participation • Unrealistic Metrics

15. Finding a Fit • (From: Agnihotri et al. 2012) SOCIAL CONTENT ENABLER [Blogs, Micro-blogging (Twitter), Etc.] • Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content Customer Perceived Value ORGANIZATION ACTIONS Information Sharing Customer Service Trust Building VALUE CREATION • Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections • Organization • Perceived Value SOCIAL NETWORK ENABLER [Networking Websites (Facebook, LinkedIn), Online communities/ Discussion forums]

16. ROI: commonly used metrics* *Gleansight: social media marketing, November 2010 86% Audience growth rate -e.g., # of facebook fans, twitter followers, etc., per week 81% Customer engagement rate -e.g., # of click-thrus, registrations, etc., per week Organizations can set milestones in terms of – Marketing efforts (e.g., number of tweets posted per week, number of blogs written and followed, etc.) Outcomes (e.g., number of leads generated through blogs) Performance evaluation should include - Objective (e.g., changes in service support costs) Subjective criteria (e.g., number of referrals and/or positive recommendations by existing customers through social networks) 77% Volume of relevant posts/comments 73% Customer Acquisition rate 73% Customer Acquisition rate

17. Tips to Remember • Do your research before investing in SM • Remember the ‘Market’ in marketing strategy • Create value ….and finally • Connect with people because nothing can replace the - personal touch

18. Thank You and Good Luck!