Social Media Lecture Summer 2011

Social Media Marketing
g
or
the Basics of
Person‐to‐
Person‐to‐Person (P2P)
Marketing

Dr. Ute Hillmer, MFG Baden Württemberg mbH
Dr. Ute Hillmer, MFG Baden‐Württemberg mbH
Innovationsagentur für IT und Medien

Reutlingen, July 15th, 2011
eut ge , Ju y 5t , 0

Dr. Ute HIllmer 15.07.2011

MFG Baden‐
MFG Baden Württemberg
MFG B d ‐Wü b
MFG Baden-Württemberg mbH
Innovationsagentur des Landes für IT und Medien

 Gesellschafter der MFG:
Land Baden‐Württemberg (51 %)
SWR Media Services GmbH (49 %)
 Auftraggeber: Land BW, Ministerien, die EU, Universitäten,
Forschungseinrichtungen, Unternehmen
 > 50 Mitarbeiter
 Jährlich über 100 Maßnahmen für Innovationsförderung und
Technologietransfer, Cluster‐ und Netzwerkmanagement sowie
Standortentwicklung und ‐marketing
g g
 > 14 Jahre Erfahrung in Beratung, Veranstaltungen, Training,

Stand: Dezember 2008
Technologietransfer, Netzwerke


Ute Hillmer
 24 Jahre internationales Marketing (HP, CoCreate, Better
J h i t ti l M k ti (HP C C t B tt
Reality Marketing, MFG Innovationsagentur)
 weltweite Kommunikationsverantwortung überwiegend 3
weltweite Kommunikationsverantwortung, überwiegend 3
Kontinente (Amerika, Europa, Asien)
 Produkt‐, Programm , Channel , Partnermarketing,
Produkt Programm‐ Channel‐ Partnermarketing
Marketingkommunikation, Branding, Firmenpositionierung
 Verantwortung für operatives, strategisches + corporate
Verantwortung für operatives, strategisches corporate
Marketing, Branding, Vertriebstrainingverantwortung
 Erfahrungen im Großkonzern, Mittelständler und
g ,
Einzelunternehmen sowie polit. Institution
 Erste internationale HP Webseite 1993


Content of the SM Marketing Lecture
1.
1 The Basics of Social Media Marketing
• Why marketing is changing
• Social marketing vs. traditional marketing
• How social marketing works
• How to get started
• Consequences of Social Media

2.The Toolbox + Best Practices
• Corporate Website • Crowd Sourcing
C d S i
• Corporate Blog • Online Shops
• Social Networks • Microblogging
• Content Sharing Platforms • Social CRM

3
3. Social Media Marketing in Practice –
g
Hands On

How did you buy yesterday?
How do you buy today?
How will you buy tomorrow?
y y

“… SOCIAL MEDIA TECHNOLOGIES changes the way
individuals and companies form their opinion and buying
decision, often it changes how they buy…”

I‘ll Have WhatShe is Having
I ll HaveWhat She


Why is Marketing changing?
y g g g

Why is SM Marketing
y g
different?


Change Engines on the Meta Level
Technological Development
 Digitalisation  Visualisation tech.
 Network technologies  Social Media
 Converging media  Digitale distribution
 Storage technologies  Intellig. automation
…
Social Development
„der mündige Mensch“
der Mensch
 Selfconfidence
 Participation
 S lf d t
Self‐determination
i ti
 Individualisation


Customer Centric Business Model

Product/Service

Marketing
k

Customer

T. Hannagan, Management: Concepts & Practices, 2005. Dr. Ute HIllmer 15.07.2011

From Product‐
From Product‐ to Customerfocus

Product Customer Needs
Price Customer Cost
Pllace Convenience / Access
Promotion Communication
McCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993

Development Steps in Marketing
(Meffert, 2008 S. 8)
(M ff t 8 S 8)
Inhaltlicher Fokus
des Marketings

Netzwerk‐
orientierung Netzwerke

Umwelt‐
orientierung Umwelt

Wettbewerbs‐ Wett‐
orientierung
g bewerber

Handels‐
Handel
orientierung

Verbraucher‐ Ver‐
orientierung braucher

Distributions
Distributions‐
Unter‐
U t
orientierung
nehmung
Anspruchs‐ 1950‘er 1960‘er 1970‘er 1980‘er 1990‘er 2000‘er
spektrum des Zeit
Marketings


Changing Kommunication

Sender Receiver


„Push Communication
Push“ Communication

Agency  Media  Fulfillment
g y

Unique Products / Offers
q /
Marketer Customer /
Messages and Incentives Prospect

D. Schultz et al., Building Customer-Brand Relationships , 2009, p. 5 Dr. Ute HIllmer 15.07.2011

„Pull Communication
Pull“ Communication
cers
Web Search
s/Influenc

Agency  Media  Fulfillment
enders/Distributers

Competitors

Unique Products / Offers Competitors
q /
Marketer Customer
Messages and Incentives / Prospect
Recomme

Competitors

Competitors
mployees/R

Word‐of‐Mouth New Forms of Media
Em

D. Schultz et al., Building Customer-Brand Relationships , 2009, p. 6 Dr. Ute HIllmer 15.07.2011

Konvergenz des Mediensystems (Gläser 2010, S. 274)
Traditionelle Trägermedien Traditionelle Übertragungsmedien Universalmedium

Form der Text/ Bild        Ton         AV Ton         AV        Sprache       Daten      Multi‐ Text/Bild/Ton/
Kommunikation media Sprache/AV/
Daten/Multimedia
Medium Film/ Fern‐ T l f D t O li
F Telefon ‐ Daten ‐ Online ‐ Universalmedium
U i l di
Buch    Presse    Audio  Video Hörfunk sehen dienste dienste dienste

Produktions‐
P d ki Verlag  Verlag Verlag Verlag
V l   V l V l V l Sender    Sender Dienst ‐ Di
S d     S d Di Dienst ‐ Di
Dienst ‐
Universalmedium‐
U i l di
unternehmen leister leister leister unternehmen

Distribution:
Terrestrische Breitbandkabel Internet Satellit Telefonnetz
Konvergente
Sender Mobilfunk
Datennetze

Radio, TV, Pay‐per‐channel/view, Video‐on‐demand, Audio‐/Video‐Streaming, Internetdienst, Teleshopping,E‐Mail

Konsum:
konvergente Fernsehgerät PC Handy Print
Konsumgüter

3
360°
360° integrated Marketing Communication
g g
(Don Schulz 2009)

Botschaft

360°
360°
Marketing‐
Marketing‐
k
Kommunikation

Kunde/ Media
Community y

Social Media Basics

Not just for nurds


How Social Marketing Works 1
The Basics
h

#1 Built credibility and trust

#2 Built and maintain networks “Communities”

#3 Place and distribute backlinks


Traditional Marketing


New Marketing


Backlinks and Textanchors
Textanchors


How to get started
1. Stay focused on your objective
 Define marketing goal
 Define target markets
 Which channel, which medium,
which platform will help me reach
my target?

Choice of Media

Be were your customers are!!

What do you intent to achieve?
y

• Win ddi i
Wi additionall customers • I
Increase communication
i i
• Gain a new customer base with customers
• Increase sales • Increase website traffic
• Increase awareness g
• Increase image
• Enter new markets • Change image
• Increase online reputation

As with traditional marketing:
set yourself realistic goals!

How to get started
3. Where are your customers having their
3 Where are your customers having their
conversations?
LISTEN

talk

energize
i

support

integrate
g

bond

Types of Social Media Interaction
Social Questions &
Service complaints

Social Market
Market‐ Sales Information

triggered social
Social Customer
interactions
i t ti Marketing Preferences
(outside‐to‐outside) Market
Corporate Social Content Existing Social Media
Corporate Blogs, Forums, (Facebook, Xing, Twitter,
branded / unbranded Social Linkedin, etc.)
Li k di t )
Networks, etc.)

Business‐ Customer‐facing
triggered social p y
employee

interactions Monitoring /
Data Mining
(inside‐to‐outside Corp.
inside‐to‐inside)
Website

Socially‐enabled Socially‐enabled Socially‐enabled Socially‐enabled
y y y y
Marketing Sales Service F&E

based on Cipriani 2009 Marketing Sales Service
Dr. Ute HIllmer
F&E
15.07.2011

360°
360° Medienmanagement
Kundenprofile beachten
 Was machen Silver Surfer (>50 J )
Surfer (>50 J.)
Online?


360°
360° Medienmanagement
Kundenprofil: Digital Natives
Was machen Digital Natives (zwischen 14 und 29 J.) online?
W h Di i l N i ( i h d J ) li ?


How to get started
3. Which Media to choose?
Marketinggoal  Get visitors to the generate interest for a
website conference
 Media

maybe

maybe


Which Media to choose?


How to get started
g
4. The Content
LISTEN
Relevance talk

energize

Benefit support
Entertainment
integrate

bond

Groundswell 2008, S.77

How to get started
5. Set a Strategy
Ask yourself
 Where are my customers =>
y  Which social networks will
What product(s) are suitable be suitable?
for social networks?  What reactions should I be
 How do I position these
d h prepared to get?
d
products?  How will I react to negative
 Does my CI and brand fit the feedback from blogs, etc.?
feedback from blogs etc ?
online community?  Do I communicate
 How do I communicate online centralized or distributed?
(tone and stile)?

Have a look how your competitors do it!

Consequences of Social Media Marketing
Consequences for the Brand
A brand is no longer only what we
– the marketeers tell the
consumer/user/buyer it is.

The band is what the
consumer/user/buyer tell each
y
other it is!

„the intelligence of the masses“


Consequences for the Product Range
“The Long Tail”
g


Chris Anderson: The Long Tail, 2006. Dr. Ute HIllmer 15.07.2011

Consequences for the Customer
“The Cluetrain
“The Cluetrain Manifesto (2001)”
( )
95 Theses Excerpt
1. Markets are conversations.
12. There are no secrets. The networked market knows more than companies do
about their own products. And whether the news is good or bad, they tell
everyone.
y
17. Companies that assume online markets are the same markets that used to
watch their ads on television are kidding themselves.
18. Companies that don't realize their markets are now networked person‐to‐
8 C i h d ' li h i k t k d t
person, getting smarter as a result and deeply joined in conversation are
missing their best opportunity.
19. Companies can now communicate with their markets directly. If they blow it,
it could be their last chance.
21. Companies need to lighten up and take themselves less seriously. They need
p g p y y
to get a sense of humor.
Levine , Locke, Searls ,Weinberger: The Cluetrain Manifesto: The End of Business as Usual, 1999.

Recap Social Media Basics
 What was most important to you so far?
h f ?
Tell your neighbour to the right and left.

 What open question emerged? What is
unclear?


 Pull Communication
ll C

 Customer centric thinking

 4P‘s to 4C‘s
4 4

 The mechanism of backlinks count

 How to get started: LISTEN + think


The Social Media Toolbox !?


Select YOUR Tools


Center Stage: The Corporate Website


SM Staring Point: The Corporate Blog


The Corporate Blog as a Starting Point


DELL

“Obviously a lot of people are in the blogosphere talking about their
issues with Dell products, why aren’t we doing anything about it?”
p , y g y g
Michael Dell, 2006

2011: Dell named most social brand of 100 top brands
2011: Dell named “most social brand of 100 top brands”


Dell‘s zielgruppenspez Kundendialog
Dell s zielgruppenspez. Kundendialog


Dell Blogs Bl F
Blogs ,Forums

Objective
j
 Kundeninsight
 Plattformen für
Problemlösungen und Ideen
 Kundenbonding, pos. Marken‐
wahrnehmung
Target
 Segmentierte Kundengruppen +
zukünftige Kunden
SM Strategie
 Beteiligung + Lernen von und
mit Kunden
 „Be were your customer is“
Resultate
 Ca. 1.7 M registrierte Mitglieder
 2.300‐2.500 Posts/Woche
3 5


Direct2Dell Bl
Blog


TechCenter Blog Chat Community
TechCenter Blog, Chat, Community


Dell Shares Investor Relations


The Corporate Blog
Employees as Experts


Types of Social CRM Interaction
Social Questions &
Service complaints

Social Market

triggered social
Social Customer
interactions
Existing Social Media
Corporate Social Content Networks
( , g, ,
Networks, etc.)

employee

(inside‐to‐outside Data Mining

y y y y
Marketing Sales Service R&D

Dr. Ute HIllmer
R&D
15.07.2011

Areas of Action in Social CRM

Marketing Sales Service/Support Innovation

Social Marketing Social Sales Social Support Social Innovation
Insight Insight Insight Insight

Rapid Social Rapid Social Rapid Social Crowedsourced
Marketing Response Sales Response Support Response F&E

Social Event Socially‐enabled
Sales Referal
Management Service

Social Campaign Proactive Lead
oact e ead
Tracking Generierung

based on Altimeter Group 2010 Dr. Ute HIllmer 15.07.2011

Ansatzpunkte für Social Customer
Relationship Management

Marketing Sales Service/Support Innovation

Social Marketing Social Sales Social Support Social Innovation
Insight Insight Insight Insight

Rapid Social Rapid Social Rapid Social Crowedsourced
Marketing Response Sales Response Support Response F&E

Social Event Socially‐enabled
Sales Referal
Management Service

Social Campaign Proactive Lead
oact e ead
Tracking Generierung

based on Altimeter Group 2010 Dr. Ute HIllmer 15.07.2011

The Corporate Blog as a Starting Point

 You can show that you know a lot about a topic
 You are easily found by search engines
 A good article easily generates 10‐50 backlinks in a
g yg 5
few days
 It is free for the customer and free media for you as a
vendor
 Search engines follow backlinks
 You can segment your target market nicely


The Corporate Blog
Make some rules.
Make some rules.
Empower all employees… they are the brand.
E ll l h h b d

• Behave professionally and ethically
Behave professionally and ethically.
• Take personal responsibility.
• Include a disclaimer: your opinions are yours,
y p y
not IBM’s.
• Don’t pick fights.

“Use social media as a means to expose IBM’s
experts and expertise to the world.
experts—and expertise—to the world ”
Adam Christensen
Manager, Social Media Communications

Dr. Ute HIllmer http://www.ibm.com/blogs/zz/en/guidelines.html
15.07.2011

Social Networks


Social Networks 2
Social networks are network communities on the
S l k k h
internet. Users can add friends or followers and send
them messages or notify them about updates
h if h b d
concerning themselves.


Built and Maintain Networks
and Maintain
 Individuals, professionals and companies look for
d d l f l d l kf
suitable networks and clusters
 Within a network, they look for suitable groups and
joint them


How Social Networks work

Think about a sports club!

How Social Networks work 2
 V l
Voluntary active or passive membership
i i b hi
 Special areas of interests
 One communicates where one has something to say (or
not), has an opinion, answers questions, asks questions,
…
 If one is open, friendly and nice, friendships will develop
that value ones expertise and opinion
 Once one has built a reputation, it will be accepted, even
appreciated if one recommends and hints one ones
products and services, online shop, other products…


How Social Networks work 3
Friends are easily found,
d l f d
one links up, meets, networks, …
and own expertise distributes …


Dell on Facebook Community
C it

Objective
 Kundeninsight
 Kundenbonding, pos. Marken‐
wahrnehmung
Target
 Segmentierte Kundengruppen
+ zukünftige Kunden
SM Strategie
 „Be were your customer is“
 Community Experience bieten

Resultate
 644.723 Personen gefällt das


Dell on Facebook Ratings
R ti


Social Networks Practice

 Direct customer  Privacy problems
communication  Uncontrolled
 Many forms of interaction
y environment
becomes possible
 Time‐consuming
„Entertainment“
 Full display of pictures,
movies, games, ...
 Many active users


Business Oriented Social Networks

 More serious environment  Increasingly
 Suitable for personal commercial
business profile pages
b i fil  Only partially ready
l ll d
 Business oriented groups for business
 Backlinks increasingly presentations
p
possible  Not all audiences are
in these networks


Content Sharing Platforms

 Online Communities for archiving and sharing
content such as:
 Photographs and images
 Vid
Videos
 Audios
 Presentations


Content Sharing Platforms

 Easy way to display,  Copyright problems
archive and share  Free data upload or
 No need to own information spread is
p
infrastructure and limited
storage
g  No quality control of
 Possible real time content and material
reporting of events
 Poducts / content is
ranked by audience

Crowd Sourcing / Open Innovation


Dell‘s Crowdsourcing Aktivitäten
Dell s Crowdsourcing Aktivitäten


IdeaStorm Id bö d I ti t
Ideenbörse und Innovationszentrum

Objective
Objecti e
 Kundenideen + –problemen
generieren
 Kundeninsight zu
Dringlichkeiten
Target
 M k ti
Marketing
 Kunden
 Potentielle Kunden  F&E

SM Strategie
 Beteiligung + Lernen
Resultate
 15.000 Ideen
 >900.000 Stimmen abgegeben
 500 Ideen Implementiert


Dell Design Studio Mass Individualisation
d d l

Objective
 Mass Customization
 Brand‐
Wahrnehmung
Wahrnehm ng
 Target
 Individualist.
Kunden
K d
 Potentielle Kunden
SM Strategie
g
 Online Angebot


Online Shops


Dell Shop eCommerce mit sozialen Inhalten
l hl

Objective
Obj i
 Verkauf
 Brand
Brand‐
Wahrnehmung ändern
Target
 Kunden
SM Strategie
 Shop mit Rankings +
Reviews


Microblogging


Twitter
Microblogging is a form of blogging that allows
users to send brief text updates (or micromedia
such as photos or audio clips) and publish them.
such as photos or audio clips) and publish them
These messages can be submitted by a variety of
means like text messaging, instant messaging, E‐
means like text messaging instant messaging E
mail, digital audio or the web. (Wikipedia)


Dell on Twitter


Dell‘s Twitter Aktivitäten
Dell s


DellOutlet Twitter als Outletstore
l l

Objective
 Verkauf
 Brand‐Wahrnehmung ändern
g
Target
 Kunden
PPotentielle Kunden
i ll K d
SM Strategie
 Twitter als Geschäftsplattform
Resultate
 Juni 2009: $6,5 M Umsatz
 Twitter USA: 1,6 Mio Follower
 (D: 131 seit Feb. 2011)


DellOutlet Deutschland Twitter als Outletstore
l l


DellOutlet China Twitter als Outletstore
l l


DellCares Twitter als Supportkanall
l k

Objective
 Kundenprobleme lösen
 Brand‐Wahrnehmung ändern
Brand Wahrnehmung ändern
Target
 Kunden
SM Strategie
 Twitter als Supportkanal
Resultate
 10.000 Follower
F ll
 10.000 Tweets


Twitter

 fast  only short messages
 cheap (Twitter 140 characters)
(T itt h t )
 real‐time communication  short lifetime of tweets
 real‐time market research  A lot of meaningless
information in
 advertising allowed
twittersphere
 direct customer
 difficult to measure


Social CRM

CRM 1.0 CRM 2.0

Targeting Establishing
bl h
need

ons
on

Acquisition
A

impressio
Expansio

Sharing

Decision
Targeting

Expansion

Acquisition
Retention Experience
Retention

Customer Support processes
Marketing Sales Value
Service
Operation processes


Definition Social CRM
Social CRM is the business strategy of engaging
S i lC i h b i f i
customers through Social Media with the goal of
building trust and brand loyalty.
b ildi d b d l l
Loyalty is defined as attitude towards a brand that inclines a
customer to repurchase it and/or recommend it to others.
h d d h

Social CRM ist di G häf
S i lC i die Geschäftsstrategie, Kunden
i d
über Social Media einzubinden mit dem Ziel der
Vertrauendsbildung und dem A fb von Brand
V d bild d d Aufbau B d
Loyalität.
Harish Kotadia, Definition of Social CRM, 2011.

• Konversations‐ und Prozessorientiert

Evolution im CRM
Evolution imCRM •Kundeneinbindung zum b
d b d besseren
Kundenverständnis, der Vertrauensbildung,
dem Aufbau von Brandloyalität, der
• Transaktions‐und Prozessorientiert Problemerkennung und der besseren
• Technisch gestützte Kundenprozesse um Kundensegmentierung.
Sales‐ Marketing‐ Supportaktivitäten zu
organisieren (Shaw) •Besseres Verständnis über Kunden + seine
Community durch Netzwerkbeziehungen

CRM 2.0
CRM 1.0
Kunde Kunde
Kunde Kunde

Kunde Kunde Kunde
d Kunde

Kunde Kunde
Konkurrenz Supplier / Partner
Konkurrenz Supplier / Partner
Kunde Kunde
Kunde Kunde

Eigenes
Kunde Unternehmen Kunde
Eigenes
Kunde Unternehmen Kunde
Kunde Kunde

„Social Media Listening Command
Center“
Objective
Obj i
 Informieren: Kundenfeedback in
Echtzeit bereitstellen
 Zuhören & Agieren: frühe Warnsignale
h f h l
erkennen und schnell handeln
 Sicherstellen, daß effektive
Kundeninteraktionen stattfinden
u de te a t o e statt de
 Unterstützend – Infos und Support für
die Communities mit Einfluß im Netz
Target
g
 Alle relevanten Abteilungen im
Unternehmen
 Kunden/potentielle Kunden
/p
 Communities / influencer
SM Strategie
 Schalt entrale
Schaltzentrale


Types of Social CRM Interaction
Social Questions &
Service complaints

Social Market

triggered social
Social Customer
interactions
Existing Social Media
Corporate Social Content Networks
( , g, ,
Networks, etc.)

employee

(inside‐to‐outside Data Mining

y y y y

Dr. Ute HIllmer
F&E
15.07.2011

Social CRM functional architecture

Market‐
Corporate Social Content Ext. Social Media Networks
Market
oriented (Corporate Blogs, Forums, Branded  /
(Corporate Blogs Forums Branded  / (Facebook, MySpace, Twitter,
(Facebook MySpace Twitter
Social Tools unbranded Social Networks, etc.) Linkedin, etc.)

Social Channel
Interface

Traditional  Channel Website Letter
Face to face
Interfaces Phone / E‐mail
SMS Internal Social Tools Fax
(
(Internal blogs, wikis, sharing platforms, social
g , , gp ,
Interne POS Business
networks, innovation portal, etc.)
Collaboration Tools Partner

Social CRM Layer

Traditionalle Processes Marketing Sales Service F&E
Based on Cipriani 2009 Dr. Ute HIllmer 15.07.2011

 What was most important to you so far?
h f ?
Discuss in our Workgroup and make one
statement.

 What open question emerged? What is
unclear?


Hands On Exploration
Investigate on the online + social media activities of
h l l d f
one of the following companies

 Mymuesli.com (Online Composition and Retail)
y ( p )
 Krones.de (B2B)
 Litago no (Customer Experience)
Litago.no (Customer Experience)

Present in 5 Minutes, what they do Online, how they do
it and why.


Suggested Reading
 Groundswell by Charlene Li, Josh Bernoff
Groundswell by Charlene Li Josh Bernoff
 Positioning by Trout and Ries
 In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
 What would Google do by Jeff Jarvis
 All Marketeers tell Stories by Seth Godin
y
 1 to 1 Marketing Future by Don Peppers
 CRM at the Speed of light by Paul Greenberg
 The Long Tail by Chris Anderson
 The Wisdom of Crowds by James Surowiecki
 Crossing the Chasm by Geoffery Moore
 Selling the Dream by Guy Kawasaki


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