Social Media Chapters 3-4

1. Can we talk? Social Media Chapters 3-4

2. What is Marketing all about? • Are we simply concerned with transactions? • Is our “relationship” with customers the thing that matters? Is it a transaction or a lifelong relationship we should be courting? • GM • Chevy to GMC to Buick/Cadillac

3. The Evolution of Marketing • For many years marketers and salesman focused on the hard sell, closing the deal and hoping for a satisfied customer • We then shifted to a more soft sell oriented approach to marketing building longer term relationships with advertising, sales promotion and personal selling • The era of Social Media has changed the game once again

4. Humans Buy from Humans! • When new markets are formed (1000 A.D.) there were a number of characteristics associated with how people did business: • 1) It was highly personal and interactive • 2) There was immediacy . Were you cheated or wronged? Feedback was immediate on quality, service and price • 3) Success depended on word of mouth recommendations • 4) There was a primal need to connect – people need social interaction and they gossip, share news, talk about themselves

5. Evolution of Marketing Behavior • Around 1439 everything changed. The printing press was invented. • The era of advertising was invented! First step away from person to person interactions. • November 2, 1920 began the era of mass communications … KDKA commercial broadcast radio began in Pittsburgh. • Nothing personal about this .. No customization, massive amounts of airtime, large number of customers quickly and cost efficiently. No ads, press releases, website communication all available.

6. What is the Problem? • Traditional communication forms and marketing approaches are evaporating … • Newspaper Association of America states ad revenues down to 1950’s levels • Nielsen reports TV viewership (hours) is declining for the first time EVER! • No such thing as regularly scheduled programs • Hulu, Netflix, Apple TV, DVR • Websites for 2/3 of Fortune 500 companies report fewer visitors.

7. The Emergence of Social Media • Social media platforms are becoming the new town squares to exchange news, photos, videos, and personal life events. • 80% of Americans under 24 have a Facebook account! • FB represents the most significant immersion in a brand ever witnessed and the largest media entity in history

8. Back to the Future • So social media offers consumers: • A highly personal and interactive experience • Immediacy • Success depends on word of mouth recommendations • There is a primal need to connect. People want to enter the new town square but are connecting with 6,000 people instead of 6 neighbors!

9. Impact of Facebook • Dessert Gallery has 3,000 loyal Facebook followers. • Their FB followers have a profound impact on the business. • 36% more visits than non-Facebook customers • 45% more of their dining budget spent at the bakery • 33% spent more at the bakery than at other restaurants • Far greater emotional attachment to the brand

10. Dessert Gallery • Owner of the Dessert Gallery (Houston) • Gains market insights • Gets feedback on new product idea • Addresses customer problems • Communicates promotions • It’s personal, immediate, generates positive word of mouth, and customers like connecting and getting information and promos

11. What Do We Do? • Develop the online brand .. Use social media to introduce and reinforce brand .. And make it a brand people want to associate with in the space of social media interaction. • Like the page (this is shared in their newsfeed) • Brag about using or acquiring this product (word of mouth)

12. Value of Value of Providing Content and Tools • iFit • Online retailer that enables individuals to customize, track and design their fitness routines • Enables cooperative retailers and manufacturers to tie their products and services to this series of apps, website tools, downloads and broadcasts. • Treadmills (Nordic), shoes (Nike), Celebrity exercise gurus (Jillian Michaels) • I am developing a relationship with my customers and fellow manufacturers and retailers

13. Did Social Media Kill Email? • Well .. How old are you?? • Generation Y and Z find it antiquated and too formal • Some baby boomers miss traditional letters and written content • Generation X still embraces email as a successful and evolving form of communication utilizing databases • Feels more like “closing the deal”

14. Social Media and Marketing • Won’t shorten your sales cycle • Keeps information flow going • Allows deeper relationships with customers than email • Easier flow and more conversational • AND consumers like to share your content and brag on your brand! BINGO!!

15. Pros and Cons Social Media • Loss of written skills • Loss of the ability to relate to one another on a face to face basis • Ability to form a sense of community • Expand our reference groups • Learn about and from one another across geography

16. Viral Videos http://www.youtube.com/watch?v=cvH6cDT6No0 The Mentos and Diet Coke Guys (Grobe and Voltz) discuss viral videos and technique.

17. Politics • Barack Obama became the President of the United States because his campaign managers recognized the value of social media and younger voters and the opportunity they presented. • Employed a strategy of transparency and having people connect with the brand because the brand helps define them … or the political platform …