MKTG

Principles Of Marketing
Twelfth Edition

Chapter 18
Social Media
Marketing

© 2019 Cengage. All rights reserved.

 Learning Outcomes

18-1 Describe social media, how they are used, and

their relations to integrated marketing communications
18-2 Explain how to create a social media campaign
18-3 Evaluate the various methods of measurement
for social media
18-4 Explain consumer behavior on social media
18-5 Describe the social media tools in a marketer’s
toolbox and how they are useful
18-6 Describe the impact of mobile technology on social
media
18-7 Understand the aspects of developing a social
media plan

© 2019 Cengage. All rights reserved.

 What Are Social Media?
(slide 1 of 3)

• Social media: Any tool or service that uses the

Internet to facilitate conversations
• It can also be defined relative to traditional
advertising like television and magazines, but social
media offer a more one-to-one interaction with
customers

© 2019 Cengage. All rights reserved.

 What Are Social Media?
(slide 2 of 3)

• Social media have several implications for marketers and

the ways that they interact with their customers:
– Marketers must realize that they often do not control the
content on social media sites
– The ability to share experiences quickly and with such large
numbers of people amplifies the impact of word of mouth in
a way that can affect a company’s bottom line
– Social media allow marketers to listen
– Social media provide more sophisticated methods of
measuring how marketers meet and interact with consumers
than traditional advertising does
– Social media allow marketers to have much more direct and
meaningful conversations with customers

© 2019 Cengage. All rights reserved.

 What Are Social Media?
(slide 3 of 3)

• Social media have changed how and where

conversations take place, globalizing human
interaction
• Companies are also beginning to understand the
implications of their employees’ activities on social
media

© 2019 Cengage. All rights reserved.

 How Consumers Use Social Media

• It is important for marketers to understand which social

media consumers are using and how they are using them
– Young adult singles use Match.com, OkCupid, and Tinder
– Teens use Snapchat, Instagram, Twitch, and Tumblr
– Older teens and adults use Facebook
• Increased use of smartphones and tablet computers has
contributed to the spread of social media usage

© 2019 Cengage. All rights reserved.

 Social Commerce
(slide 1 of 2)

• Social commerce: a subset of e-commerce that

involves the interaction and user contribution aspects
of social online media to assist online buying and
selling of products and services
• Social commerce sites
– Include ratings and recommendations
– Help consumers make more informed decisions on
purchases and services

© 2019 Cengage. All rights reserved.

 Social Commerce
(slide 2 of 2)

• Types of social commerce

– Peer-to-peer sales platforms
– Social networking websites driven by sales
– Group buying platforms
– Peer recommendation sites
– User-curated shopping sites
– Participatory commerce platforms
– Social shopping sites
– Shoppable videos

© 2019 Cengage. All rights reserved.

 Social Media and Integrated
Marketing Communications
• Marketers can use social media to have
conversations with consumers, forge deeper
relationships, and build brand loyalty
• Consumers connect with each other, share opinions,
and collaborate on new ideas according to interests
• Crowdsourcing: using consumers to develop and
market products

© 2019 Cengage. All rights reserved.

 Creating and Leveraging a
Social Media Campaign
• Companies should start with a strategy before diving
head first into social media
– Start with a marketing or communications plan
– Situation analysis, objectives, and evaluation are still
essential
• Marketers can categorize media types into owned,
earned, and paid media
• To leverage all three types, markets must:
– Maximize owned media
– Public relations do not translate to earned media
– Paid media must drive customer engagement
© 2019 Cengage. All rights reserved.
 The Listening System

• Developing an effective listening system is necessary

in understanding and engaging an online audience
• Social media monitoring: the process of identifying
and assessing what is being said about a company,
individual, product, or brand
• Failure to respond to criticism leads to a larger crisis

© 2019 Cengage. All rights reserved.

 Social Media Objectives

• The organization should develop a list of objectives

for its social media team to accomplish
• Considerations when setting objectives:
– Listen and learn
– Build relationships and awareness
– Promote products and services
– Manage your reputation
– Improve customer service

© 2019 Cengage. All rights reserved.

 Evaluation and Measurement
of Social Media
• Social media have the potential to revolutionize the
way organizations communicate with stakeholders
• Five steps to help gauge the effectiveness of a social
media effort:
– Identify your key performance indicators (KPIs)
– Align your social media goals with your business
objectives
– Set up Google Analytics to track conversions
– Assign values to your KPIs (such as lifetime value or
average sales)
– Benchmark against your competitors

© 2019 Cengage. All rights reserved.

 Social Media Metrics

• Buzz
• Interest
• Participation and engagement
• Search engine ranks and results
• Influence
• Sentiment analysis
• Website metrics

© 2019 Cengage. All rights reserved.

 Social Behaviors of Consumers

• Understanding an audience necessitates

understanding how that audience uses social media
• Six categories of social media users:
– Creators
– Critics
– Collectors
– Joiners
– Spectators
– Inactives
– Conversationalists

© 2019 Cengage. All rights reserved.

 Discussion Point
Categories of Social Media Users

• Have students identify which category or social

media users they fall into.
• What types of companies or products are students
interacting with online?
• Does their categorization impact these interactions?

© 2019 Cengage. All rights reserved.

 Social Media Tools: Consumer- and
Corporate-Generated Content (slide 1 of 4)

• Blog: a publicly accessible web page that functions

as an interactive journal, whereby readers can post
comments on the author’s entries
– Corporate blogs: blogs that are sponsored by a company
or one of its brands and maintained by one or more of the
company’s employees
– Noncorporate blogs: independent blogs that are not
associated with the marketing efforts of any particular
company or brand
• Microblog: blogs with strict post length limits

© 2019 Cengage. All rights reserved.

 Social Media Tools: Consumer- and
Corporate-Generated Content (slide 2 of 4)
• Social networking sites: websites that allow
individuals to connect—or network–with friends,
peers, and business associates
– A company may create a brand-specific social network
or community
– Facebook can help a brand increase its social media
presence and optimize search engine results
– LinkedIn is used primarily by professionals who wish to
build their personal brands online and businesses that
are recruiting employees and freelancers

© 2019 Cengage. All rights reserved.

 Social Media Tools: Consumer- and
Corporate-Generated Content (slide 3 of 4)

• Media sharing sites: websites that allow users to

upload and distribute multimedia content like videos
and photos
• Social news sites: websites that allow users to
decide which content is promoted on a given website
by voting that content up or down
• Location-based social networking sites: websites
that combine the fun of social networking with the
utility of location-based GPS technology

© 2019 Cengage. All rights reserved.

 Social Media Tools: Consumer- and
Corporate-Generated Content (slide 4 of 4)

• Review sites: websites that allow consumers to post,

read, rate, and comment on opinions regarding all
kinds of products and services
• Virtual worlds and online gaming
– Massive multiplayer online (MMO) games
– Competitive online games
– Online communities (or virtual worlds)

© 2019 Cengage. All rights reserved.

 Discussion Point
Social Media Tools

• Have students identify which social media tools they

use and how often they use them.
• What companies or products do you recall seeing
advertised?
• Were the advertisements effective? Why or why not?

© 2019 Cengage. All rights reserved.

Social Media and Mobile Technology
(slide 1 of 2)

• Reasons for recent popularity of mobile marketing

– Low barrier to entry
– Consumers acclimating to privacy and pricing policies
– Effective at garnering consumer attention in real time
– Measurable
– In-store notification technology
– Higher response rate than traditional media types

© 2019 Cengage. All rights reserved.

Social Media and Mobile Technology
(slide 2 of 2)

• Common mobile marketing tools:

– SMS (short message service)
– MMS (multimedia messaging service)
– Mobile website (MOBI and WAP website)
– Mobile ads
– Bluetooth marketing
– Smartphone applications (apps)
• Apps and widgets

© 2019 Cengage. All rights reserved.

 The Social Media Plan

• The social media plan is linked to promotional plans

or marketing plans
• Six stages involved in creating an effective social
media plan:
– Listen to customers
– Set social media objectives
– Define strategies
– Identify the target audience
– Select the tools and platforms
– Implement and monitor the strategy

© 2019 Cengage. All rights reserved.

 The Changing World of Social Media

• The rate of change in social media is astounding—

usage statistics change daily for sites like Facebook
and Twitter

© 2019 Cengage. All rights reserved.

 Key Terms
• Social media
• Social commerce
• Crowdsourcing
• Social media monitoring
• Blog
• Corporate blogs
• Noncorporate blogs
• Microblogs
• Social networking sites
• Media sharing sites
• Social news sites
• Location-based social networking sites
• Review sites
© 2019 Cengage. All rights reserved.