Bringing ‘Market’ into MarketingMarket Changes, Value Creation, and Social Media
Raj Agnihotri, Ph. D.Assistant Professor of Marketing Director of Research at the Schey Sales Centrewww.Agnihotri-Raj.com
Brazil Executive Education Program
3
2
1Understanding the current market environment
Exploring social media as a business tool
Outlining a social media startegy
Discussiontopics
Today’s Agenda
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!
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?Wilson and colleagues (2011), Harvard Business Review
So, the question becomes…~How can we summarize
the market changes?
-The answer is...
“connected, informed, empowered, and active consumers” (Prahalad and Ramaswamy 2004)
market3.0
Organization ConsumerProductt
Organization Productt+1Consumer
Value Co-Creation
Value Co-Creation
Market Evolution
CollaboratorCollaborator
Collaborator Collaborator
(Agnihotri and Hu 2009)
What’s Happening Out There?
Lead the Change
http://chapter1.fiestamovement.com/agents/
• 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.
How Firms are Using SM: twitter example
Customer service/ tech support/warranties/PR/ marketingArray of twitter accounts
Marketing/customer service
Two different accounts
Marketing/reservations/customer service/billings
Separate accounts for activities at an individual hotel or resort
(Rick Webb, Why Some Social Media Experts Are Good, May 31, 2011)
http://twitter.com/MarriottIntl
https://twitter.com/FallsMarriott
How Firms are Using SM(Wilson, Guinan, Parise, and Weinberg 2011, Harvard Business Review)
• 40,000 global employees• Internal social 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
CustomerValue
Organization’sSocial Capital
Social Capital… What?
Structural DimensionInteractions to maintainSocial Structure
Relational DimensionInteractions to Build & Maintain Trust/Trustworthiness
Cognitive DimensionInteractions focused toward Vision Sharing
Social MediaUse
(Kothandaraman, Agnihotri, and Kashyap 2011) A Social Capital Perspective
A Social Media Framework for Sales Organizations
Developing/Assessing Business Specific Social Strategy Elements
Formulating/Assessing Business Specific Value Drivers
Establishing/Assessing Business Specific Performance Metrics
Social-StrategyElements
ValueDrivers
PerformanceMetrics
Social Media
Organization
Customers
A Strategic Approach
ELEMENTS
Goals Delineation
Information Communication
Competitive Orientation
Performance Evaluation
CHANNELS
Social Content BlogsAudio, video & photo sharingMicroblogging (Twitter)
Social NetworksSocial networks (facebook, LinkedIn, etc.)Discussion/review forumsWikis
Social InteractionSocial media and eventsSocial media case studies
CHALLENGES
Technology Reluctance
Marketing process Interruption
Undisciplined Participation
Unrealistic Metrics
Is It Really That Simple?(From: Agnihotri et al. 2012)
Finding a Fit(From: Agnihotri et al. 2012)
InformationSharing
CustomerService
TrustBuilding
SOCIAL CONTENT ENABLER[Blogs, Micro-blogging (Twitter), Etc.]
SOCIAL NETWORK ENABLER[Networking Websites (Facebook, LinkedIn),
Online communities/ Discussion forums]
ORGANIZATION ACTIONS
Customer Perceived
Value
OrganizationPerceived
Value
Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content
Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections
VALUE CREATION
ROI: commonly used metrics*
73%Customer Acquisition rate
*Gleansight: social media marketing, November 2010
Organizations can set milestones in terms of –i) Marketing efforts (e.g., number of tweets posted per week,
number of blogs written and followed, etc.) ii) Outcomes (e.g., number of leads generated through blogs)
Performance evaluation should include -iii) Objective (e.g., changes in service support costs) iv) Subjective criteria (e.g., number of referrals and/or positive
recommendations by existing customers through social networks)
86%Audience growth rate
-e.g., # of facebook fans, twitter followers, etc., per
week
77%Volume of relevant
posts/comments
81%Customer engagement rate
-e.g., # of click-thrus, registrations, etc., per week
73%Customer Acquisition rate
• 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
Tips to Remember
Thank You and Good Luck!