the horizontal revolution chapter 1 1-1 copyright © 2013 pearson education, inc. publishing as...

THE HORIZONTAL REVOLUTION

Chapter 11-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Chapter Objectives

What are social media?

How does the Social Media Value Chain explain the relationships among the Internet, social media channels, social software, and the Internet-enabled devices we use for access and participation?

What is Web 2.0?

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Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Chapter Objectives (cont.)

What are the major media channels associated with social media?

What is social software?

Why is social media valuable to marketers?

What marketing objectives can organizations meet when they incorporate social media in their marketing mix?

You’re a DIGITAL NATIVE!

You are constantly ‘wired’ in the networked, always-on world.

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Web 2.0

The interactive social system that is available to users 24 hours a day, 7 days a week.

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Horizontal Revolution: Today information flows ACROSS people, not just from big companies to people

Social Media: The online means of communication, conveyance, collaboration and cultivation among interconnected people, communities and organizations

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Living a Social (Media) Life

The Internet and its related technologies make what we know today as social media possible and prevalent. Synchronous Interactions: Occur in real time Asynchronous Interactions: Do not require all

participants to immediately respond

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If Facebook were a country, it would be the third most populated in the world!

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Social Behavior and the Philosophy of Participation Culture of Participation: The ability to freely

interact with other people and companies; open access to venues that allow users to share content.

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Social Media Zones

Media: a means of communication Mass Media: means of communication that can reach

a large number of individuals Personal Media: channels capable of two-way

communication on a small scale

Social Media crosses the boundaries of mass and personal media

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Communication travels using a medium (or channel) such as word-of-mouth, television, radio, newspaper, magazine, signage, Internet, direct mail, or telephone.

Within each medium, marketers can choose specific vehicles to place a message.

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The 4 Zones of Social Media Channels12-1


Zone 1: Social Communities

Social communities: channels of social media focusing on relationships and the common activities people participate in with others who share the same interest or identification.

Channels in the social community zone include:* Social networking sites (SNS)* Message boards* Forums* Wikis

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Social Networking Sites

Online hosts that enable site members to construct and maintain profiles

Social identity – profile picture or avatar and basic information.

Social presence – indicating availability, mood, friend list and status.

Connection – friends, followers or fans.

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Social Media Zones and Exemplar Vehicles

ForumsThe oldest venue of social media. Essentially forums are interactive, online versions of community bulletin boards.

WikisCollaborative online workspaces that enable community members to contribute to the creation of a useful and shared resource.

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Zone 2: Social Publishing

Social publishing: sites which aid in the dissemination of content to an audience.

The channels of social publishing include:* Blogs* Microsharing sites* Microblogging sites* Media sharing sites* Social bookmarking * News sites

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BlogsWebsites that host regularly updated online content

Microsharing SitesWork much like blogs except there is a limit to the

length of content you can post

Host content but also typically feature video, audio, photos, and other presentations rather than text

Media Sharing Sites

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Zone 3: Social Entertainment

Social entertainment: encompasses channels and vehicles that offer opportunities for play and enjoyment.

Social entertainment includes:* Social games* Socially enables console games* Alternate reality games* Virtual worlds* Entertainment communities

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Zone 4: Social Commerce

Social commerce: encompasses channels and vehicles that offer opportunities for play and enjoyment.

Social commerce includes:* Reviews and ratings* Deal sites* Deal aggregators* Social shopping markets* Social storefronts

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Web 2.0: The Defining Characteristics of Social Media

The Web Is the Platform User Participation, User-Generated

Content, and Crowdsourcing User-Defined Content Network Effects Scalability Perpetual Beta Reputation Economy

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The Web “IS” the Platform

Cloud computing. The general term for

anything that involves delivering hosted services online.

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User-Defined Content

Taxonomies are classifications that experts create.

Folksonomies are sets of labels (tags) individuals choose in a way that makes sense to them.

Tagging refers to the process social media users undergo to categorize content according to their own folksonomy.

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Network Effects and Scalability

Network effects. The value added for all users by each individual user.

Scalability. The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business.

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Perpetual Beta and Reputation Economy Perpetual Beta. Developers are able to

introduce new features in products even if testing and refinement are not yet complete. It is continual, on-going development.

Reputation Economy. The value that people exchange is measured in esteem as well as money.

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The Infrastructure of Social Media

Social Software are computer programs that enable users to interact, create, and share data online.

Devices are products we use to access the Internet and to participate online.

People interacting online is the only way social media can work.

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Show Me the Money!

Business Models and Monetization Psychic Income

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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

The marketing mix includes the

4 Ps of Product, Price,

Promotion, and Place

(distribution).

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The 5th P of Marketing

Today, we need to add the fifth P to the Marketing Mix.

Participation

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Marketing Communication: From Top-Down to Bottom-Up

A micromarket is a group of consumers once considered too small and inaccessible for marketers to pursue.

Niche products appeal to small, specialized groups of people.

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Social Media Achieves Marketing Objectives Promotion and Branding Customer Relationship Management and

Service Recovery Marketing Research Retailing and E-commerce

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Social Media Achieves Marketing Objectives (cont.)

Social Media Achieves Marketing Objectives Promotion and Branding

Extend and leverage the brand’s media coverage Influence the consumer throughout the decision-

making process

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Core Types of Media

Paid Media: Media for which you assessed monetary fees

Owned Media: Media channels the brand controls Earned Media: Media channels beyond the

control of the company

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The Role of Social Media in the Consumer Purchase Process

Increase Awareness

Influence Desire

Encourage Trial

Facilitate Purchase

Cement Brand Loyalty

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Social Media Achieves Marketing Objectives Customer Relationship Management

(CRM) and Service Recovery Social CRM uses software to fine tune the

offer and build intimacy with the customer Social recovery is the actions an

organization takes to correct mishaps and win back unhappy customers Retailing and E-commerce

Retailing and E-commerce

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the horizontal revolution chapter 1 1-1 copyright © 2013 pearson education, inc. publishing as...

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