Bringing ‘Market’ into Marketing: Value Creation and Social Media

1. Bringing ‘Market’ into Marketing:Value Creation and Social Media Raj Agnihotri August 2014

3. 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

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. Communication-Social Capital Link Customer Value Communication to maintain Social Structure Communication to Build & Maintain Trust Communication to Share the Vision Social Capital… What? Organization’s Social Capital Social Media Use (Kothandaraman, Agnihotri, and Kashyap 2011)

6. Now the Question Becomes… • How to facilitate this link?

7. Co-Evolution Organization Consumer Productt+1 Collaborator Value Co-Creation Collaborator Market Evolution Organization Consumer Productt Collaborator Value Co-Creation Collaborator EXAMPLES: http://cloroxconnects.com/pages/home http://mystarbucksidea.force.com/ (Agnihotri and Hu 2009)

8. A Strategic Approach 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 https://www-304.ibm.com/connections/blogs/ 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 http://www.youtube.com/watch?feature=player_embedded&v=F5CF1FEm_oA#t=12 SOCIAL NETWORK ENABLER [Networking Websites (Facebook, LinkedIn), Online communities/ Discussion forums] • (From: Agnihotri et al. 2012)

9. Let’s Put Theory into Action Work within your group/table and come up with the ‘social media marketing strategy’ for Ford Fiesta, that has potential to offer organizational and customer value.

10. This is How They Did It Target Market Empty Nesters/Baby Boomers Generation Y/ Millennial Content Creators Find a fit Content Consumers Different language Different mix of media Different ratio of visuals and text Blog http://inside.flipboard.com/2013/09/27/on-the-red-couch-with-fords-social-media-chief-scott-monty/

11. Social Revenue • 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://fiestamovement.com/

12. How are you going to measure the ROI when implementing your Social Media Strategy?

13. ROI: commonly used metrics* 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 *Gleansight: social media marketing, November 2010

14. 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

15. Thank You and Good Luck!