This document discusses how social media has changed consumer behavior and marketing. It outlines how online research has shifted power to consumers, allowing them to research products before purchase. Classic consumer behavior involved store-dependent decisions based on biased information from salespeople. Now consumers can research online, compare options, and purchase without interacting with stores. While social media gives marketers new ways to engage customers, it also enables "fake news" and questionable marketing tactics. The document advocates for ethical and respectful practices to attract consumers rather than create fear, uncertainty, or doubt about competitors' products. It also discusses how corporate social responsibility can build customer loyalty.
2. Social media have changed
marketing by shifting the scalability
of influence and the ways in which
consumers share, evaluate and
choose information Moustakas, E (2015)
3. Digital Ad Market Share (2016)
Google and Facebook
control 57.6% of the
digital ad market, and their
slices of the pie are only
growing
Source: Visual Capitalist
4. Sellers can only meet the needs of the
buyers, determine what added value is
required and how to do it, if they engage
with consumers.
Moustakas, E (2015)
5. Satisfying customers by
providing superior value
than competitors to build
trust and commitment in
long term relationships
Sashi, 2012,
Social media creates end to end
product lifecycle relationship with
customers:
Growth
Decline
Introduction
Maturity
7. Classic Consumer Behavior
Advertising
New Product
Classic advertising on
billboards, newspapers
and magazines
Store dependant
Decision
Purchase decision is
based on biased
perception from
salesman
Acquisition
Purchase
Acquisition is defined in
the last minute and the
result of last minute
comparison without
customers feedback
8. Opportunity to buy cheap things
Buy the things
you need not
those you are
forced to
9. Current Consumer Behavior
Advertising
New Product
With Social Media,
marketers are capable to
actively engage
customers and establish
an real time
communication channel.
Research
Decision
Access to information
put the consumer in a
powerful position
Buyers research first and
select the product before
going to store
Acquisition
Purchase
Purchase process is
simplified, less
interaction with store
dependents, evenly zero
contact when online
buying is an option.
10. Smart, skillful, honest marketers use
psychology legally, ethically, and
respectfully to attract and engage
consumers, and compel them to buy
Rosenthal. R (FastCompany)
11. Fake News Equals to Fake
Products
● Kids cannot differentiate between
ads and real results in Google
● Facebook is full of fake news and
miraculous solutions
● Telemarketing is targeting an
audience group that is easily to
convince
Government and regulators
cannot ignore forever the
impact of the Google-
Facebook duopoly.
Ashley Highfield, NMA
12. Strategy intended to make a company's
customers insecure about future product
plans with the purpose of discouraging
them from adopting competitors' products
The Fear Uncertainty Doubt Concept
http://whatis.techtarget.com/
13. The FUD Messages
FEAR - UNCERTAINTY
- DOUBT
● Your product will be obsolete and requires replacement
● Newer features are not compatible with your current product
● Newer products from competitor are not as good as ours
● The promised version to be released in months from now
● Our new products are bestsellers, we are running out of stock
15. References
Moustakas, E (2015). The impact of Social Networking on consumer behaviour. [Online]. Available from:
https://www.researchgate.net/profile/Evangelos_Moustakas/publication/291691535_The_impact_of_So
cial_Networking_on_consumer_behaviour/links/56a4cca708ae1b651132638e/The-impact-of-Social-
Networking-on-consumer-behaviour.pdf (Accessed: 16 Aug 2017)
Rosenthal, R (2014). 5 Psychological Tactics Marketers Use To Influence Consumer Behavior. [Online]
Available from: https://www.fastcompany.com/3032675/5-psychological-tactics-marketers-use-to-
influence-consumer-behavior (Accessed: 16 Aug 2017)
Sashi, CM (2012),"Customer engagement, buyer-seller relationships, and social media",
Management Decision, Vol. 50 Iss: 2 pp. 253 – 272
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