BRINGING ‘MARKET’ INTO MARKETING: MARKET CHANGES, VALUE CREATION AND SOCIAL MEDIA Raj Agnihotri, PhD Assistant Professor of Marketing Director of Research at the Schey Sales Centre www.Agnihotri-Raj.com October 2013
Today’s Agenda Na ordem do dia de hoje 3 2 1 Discussion topics Outlining a social media startegy Exploring social media as a business tool • Understanding the current market environment
Let’s Do Some Thinking! Vamospensar um pouco! Discuss within your group/table and come up with one of the ‘social media marketing trends’ that can be perceived as new and innovative!
What Would You Do?O quevocêfaria? “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
A Social Capital Perspective UM Capital Social Perspectiva 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 (Kothandaraman, Agnihotri, and Kashyap 2011)
So, the question becomes… • How can we Co-Create the value? • Como podemos Co-Create o valor? • -The answer is...
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)
Generate Social RevenueSocial gerarreceita? • 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/
A Strategic Approach Uma AbordagemEstratégica 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
Finding a Fit • Diagnóstico a aplicar 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)
ROI: commonly used metrics* ROI: métricascomumenteusadas * 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
Tips to Remember • Dicasparalembrar • 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