1. Marketing Management
MKT500
Social Media
Welcome to Marketing Management. In this lesson we will
discuss social media.
1
Learning Outcomes
Upon completion of this lesson, you will be able to:
Understand social media.
Understand social networks.
Understand the return on investment, key performance
indicators, and web analytics associated with social media.
Upon completion of this lesson, you will be able to:
Understand social media;
Understand social networks, and
Understand the return on investment, key performance
indicators, and web analytics associated with social media.
To meet this overall objectives we will cover the following
supporting topics:
Social media defined;
Media trends;
Types of social media,
Social Networks and;
Social Media, ROI, KPIs, and Web Analytics.

2. 2
Social Media
Social media
People interacting and connecting with others via online
software or alternative electronic access technologies
With social media, customers now have dialogue with brands
Customers post endorsements and vent
Traditionally, customers were recipients
3
Generally speaking, the enormity of today’s media choices—the
Internet alone—makes it a wonderful time to be alive. Media
are part of the “social media” story. Social media can be
defined as people interacting and connecting with others via
online software or alternative electronic access technologies,
such as smartphones or tablet computers.
The other part of the social media story is its social or human
element. Belonging to different communities and interacting
with different people in our social roles is part of our self-
identity.
The most fundamental means of interaction is a dialogue. In
social media, customers have become participants in a dialogue
with marketers or brands. Traditionally customers had been
mere recipients of “one-way” messages that had been shot out
by marketers, but now they have means of talking back.
Customers post positive endorsements about brands, and they
also use the web to vent.
Mobile marketing is growing because our cell phones are
particularly convenient: they contain our identities and those of
the people we talk to frequently. They are our portals to email
and Facebook, a primary means of sharing information and
entertainment to many individuals today.

3. 3
Media Trends
Media trends
Social media & mobile marketing are growing
Newspaper & magazines are declining
The number of radio stations is growing,
but listeners listen less
The number of TV channels is growing, audience is fragmented
Facilitates targeting
4
At the same time that electronic and information technologies
are becoming more accessible and pervasive, traditional media
are experiencing their own changes:
Newspaper circulations are declining, and while optimists
continue to launch new magazines every year, their overall sales
and circulations are down as well.
The number of radio stations has grown, boosted by satellite
servers, but listeners are tuned in for less time each day than
just a few years ago. Television channels also continue to grow.
The bad news about this fragmentation is that with more TV
channels, the audience for any given show is typically smaller.
The good news is that targeting is a facilitated when the
segments of viewers are somewhat more homogeneous.
4
Media Trends, cont.
Social media facilitates word of mouth

4. Word of mouth is powerful; more credible
“Viral”; “buzz”
Word of mouth works well with
Exciting products
Clever ad campaigns
Humor, free give-aways, social causes
5
A particularly important phenomenon for business is that social
media facilitates word of mouth, or W.O.M. Consumers tend to
view ads with some skepticism, knowing that the point of the
message is persuasion. By comparison, if a customer hears the
endorsement of a brand from a friend, that message is seen as
more objective because the friend presumably has nothing to
gain from making any claims. When a message has been
repeated or shared across a wide audience online, the term
“viral” is generally applied to it. These widely shared messages
can also generate a lot of “buzz” around a given product or
service.
Word of mouth works on inherently exciting products, where
the notion of buzz makes sense. Yet creative brand managers
have launched clever ad campaigns that get talked about even
for pretty mundane products too, the key being that the product
and the message are meaningful to the customer. Brand
managers can achieve this through the use of humor, free give-
aways, or associating the product or service with a social cause.
5
Types of Social Media
Some social media
Offer very rich, vivid sensory experiences: e.g., Virtual worlds,
video games, etc.
Are simple: e.g., Blogs, forums, etc.

5. Are primarily social: e.g., Facebook, etc.
Are industrious: e.g., LinkedIn, etc.
Vary in commerciality: e.g., social content & ads for revenue
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Looking at the types of Social Media, we discover that social
media have the following properties:
Some social media offer very rich, vivid, sensory experiences
with their dynamic sights and sounds that compel the user to
interact and engage, such as video games or virtual worlds. By
comparison, other social media seem relatively simple, such as
blogs or forums.
Some social media are primarily social in nature, such as social
network sites, which serve as places to asynchronously hang out
with friends. Other media have more industrious goals. For
example, many people seek jobs via professional sites, such as
LinkedIn.
Lastly, social media vary with regard to whether the
interactions are pointedly commercial or not. For instance,
many social networking sites use social content and ads to
generate revenue.
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Social Networks
Sociogram: networks in graphical form
The set of actors and relational ties
Actors may be customers, firms, brands, etc.
Ties can be symmetric
e.g., Joe and Sally are co-workers
Ties can be directional

6. e.g., Joe likes Sally
Ties vary in strength
Network analysis requires tabular representation (sociomatrix)
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A social network is defined as the set of actors, or nodes, and
the relational ties that link them. Actors may be customers,
firms, brands, concepts, countries, etc. The connections between
the actors are relational ties, or links. Ties can be symmetric, as
in Joe and Sally are co-workers, or directional, as in Joe likes
Sally. Ties can also be binary or vary in strength.
Networks are often depicted in a graphical form, called a
sociogram, but their analysis requires tabular representation,
called a sociomatrix.
7
Social Networks, cont.
Strong mutual link between actors B & E
Weak unidirectional link from C to B
F is isolated
B, C, and E form a group
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The figure shows a network for 6 actors and its corresponding
matrix data.
The bold green double arrow indicates that there is a strong
mutual link between actors B and E. You can see by the thin,

7. dotted arrow, however that only a weak, unidirectional link
exists from C to B. F is isolated with no connections to any
other actors, and actors B, C, and E form a group.
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Social Networks, cont.
In social networks, some members are more connected &
influential than others
Goal is to locate highly influential members, induce their trial
of products; propel the diffusion process
Locating “central” members
Centrality indices are computed for each actor in the network to
describe the position of that actor relative to the others
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In social networking sites, as in any social circle, some
members are more connected and influential than others.
Marketers would like to leverage these interpersonal group
dynamics, ideally locating the highly connected influential
members, to induce their trial of products, in turn initiating and
propelling the diffusion process.
To do so, network marketers study how actors are embedded in
their network to locate those that are relatively central.
Centrality indices are computed for each actor in the network to
describe the position of that actor relative to the others.
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Social Networks, cont.
Centrality: Number of connections each actor has with the
others
Centrality index

8. Central = many links
Peripheral = fewer links
Cliques
Groups of people in a network
Common in brand communities, affinity groups, cell phone
friends, etc.
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The easiest and most common way to characterize centrality is
to count the number of connections each actor has with the
others in the network. An index of “degree centrality” is derived
for each actor—those with many links are said to be relatively
central, and those with fewer links are more peripheral.
Another idea related to network analyses are cliques. Cliques
are groups of people in the network. Cliques are common in
delineating brand communities and can be a nice way to find
homogenous segments of like-minded people.
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Social Media ROI, KPIs, and Web Analytics
Determine ROI
Must know the goal that the marketing action was intended to
achieve.
Key performance indicators (KPIs)
Reach, frequency, monetary value of customers, customers’
behaviors, attitudes, memory, etc.
11

9. As with traditional media, we can begin to answer ROI
questions only if we know the goal that the marketing action
was intended to achieve. Once we know the goals, selecting the
media and measures is rather straightforward.
When estimating ROI, the primary expenditures might not be
media buys or explicit budgetary contributions, so much as
salary equivalents of people’s time allocations.
Key performance indicators, or KPIs, for social media are
analogous to traditional measures for advertising effectiveness.
Specifically, marketers are always interested in quantifying
reach, frequency, monetary value of customers, customers’
behaviors, attitudes, memory, including both recall and
recognition, and so on. In social media, measures for these
marketing goals simply take on slightly different forms.
11
Social Media ROI, KPIs, and Web Analytics, cont.
Pre-Purchase: Awareness
Reach can be achieved via
Traditional media
Online
Media that optimize reach
Reward current customers
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In the pre-purchase phase, marketers want customers to be
aware of their brand, and consider their brand for purchase.
Reach is the measure of the size of the audience that has been
exposed to some brand information and who might therefore
have some familiarity with the brand. Reach can be achieved via
traditional media and measured via online capture, such as in a

10. magazine ad that tempts the reader to learn more by going
online and landing at a particular page associated with the
magazine source. Reach can also be achieved wholly online, as
a function of ads on popular sites, purchased status on search
engines, even via click-thrus on annoying banner ads.
If marketers wish to enhance awareness, they seek media that
optimize reach.
If there is an existing customer base, marketers can reward
current customers with incentives to generate word of mouth.
Word of mouth in customer networks is very rewarding to firms
because they usually bring in new customers.
12
Social Media ROI, KPIs, and Web Analytics, cont.
Pre-purchase: Brand Consideration
Offer more information to build knowledge & persuade
Use media that give more content
Search Engine Optimization (SEO)
Prime Web Analytics
Frequencies, rates, or durations
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Next, marketers want to offer more information to build
customers’ knowledge of the brand, and more persuasion to
make their opinions as favorable as possible. To do so,
marketers need to use media that convey more content. They
pay for search engine ad placement, post some information
teasers in related brand communities, and provide podcasts
containing product information and customer testimonials.
Many of the measures in this phase fall under the broad
category of search engine optimization , or S.E.O. When
customers have a preferred brand, they can go directly to

11. purchase sites. However, when they do not, they will conduct a
search. The search keywords depend on where customers are
along the knowledge continuum.
At the stage of brand consideration, several measures are prime
web analytics—they are frequencies, rates, or durations.
Frequencies include the sheer number of visits and estimates of
the number of unique visitors; that is, the second number is an
attempt to remove the duplications from the first number.
Durations are usually measures of times spent per page, and
overall time spent on the site.
Rates include bounce rates—these are the percent of sessions
for which a visitor lands on the website and needs only one
page viewing to decide and click off the website altogether.
Rates also include conversion rates—capturing when a visitor
transitions from a looker to a doer.
13
Social Media ROI, KPIs, and Web Analytics, cont.
Purchase or Behavioral Engagement
Induce any action that engages the prospective customer
Instead of “Contact Us” marketers prefer forms that capture
specific information
KPIs
Number of posts, audience build
Conversion rates
Compare desired outcomes to number of visits
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Ideally, customers are moving toward purchasing. However,
there are a number of steps that serve as precursors that
nevertheless are hopeful signals toward ultimate purchase. Thus

12. marketers speak of inducing any kind of action that begins to
engage the prospective customer. Web analytics experts disdain
the “Contact Us” buttons, instead recommending that a web
visitor has to fill out a form, so the company can capture at
least basic information on this customer and sales opportunity.
In return, companies can provide exclusivity to web visitors.
Brand fans may be asked to post opinions and reviews. Sales
promos may be made available from site visits or Tweeted out
to followers. Customer service can unfold in real time.
KPIs are pretty clean when measuring behaviors. Thus metrics
include numbers of posts regarding the brand on blogs or social
networks, audience build as measured by incoming links and the
speed of that growth. Conversion rates are straightforward to
compute. They consist of frequencies of web visitors to engage
in the focal behavior, such as purchasing or signing up for
email, relative to the number of visitors who come to the
website. That is, the rates compare the desired outcomes to the
number of visits or to the number of unique visitors.
Costs of the actions depend on the marketing goals: estimates of
acquisition costs, payment for placement in search engines or
banner ads, sending emails from a rented address database, etc.
On the KPIs side, the effectiveness of those actions can be
assessed by these frequencies, rates, and durations. Web
analysts track the number of visitors coming via different
routes, and they follow the customers’ traversal to the particular
engagement behavior of interest.
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Social Media ROI, KPIs, and Web Analytics, cont.
Post-Purchase
Satisfied customers
Customers may post positive reviews, give
endorsements, etc.

13. Dissatisfied customers
Company can read complaints, address issues, give incentives,
etc.
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The wise companies care about their customers long after the
purchase. If customers are satisfied, they may post positive
reviews. If they are ecstatic, they may post extremely happy
endorsements. The company may wish to reward these brand
evangelists.
If the customers are unhappy, the company can at least read the
nature of the complaint and work to address it. Companies can
intervene to try for service recovery, bringing the customer
back on board. Even grumbling customers respond to
incentives—company apologies, problem solutions, and
restorative benefits can help in retention, preventing customer
defections, and turning a bad situation around.
It is not unusual for blogs, wikis, or lead user communities to
be essential during product development, generating enthusiasm
in the marketplace prior to launch.
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Check Your Understanding
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Summary
Social media defined

14. Media trends
Types of social media
Social networks
Social media ROI, KPIs, and web analytics
We have reached the end of this lesson. Let’s take a look at
what we’ve covered.
First, we defined what is meant by social media which defined
as people interacting and connecting with others via online
software or alternative electronic access technologies, such as
smartphones or tablet computers.
Next, we discussed the media trends.
Then, we reviewed the types of social media, include rich, vivid
sensory experiences, simple, industrious, and social.
Then, we defined social networks as the set of actors, or nodes,
and the relational ties that link them.
Last, we discussed various methods that marketers use to
measure social media, ROI, KPIs, and Web Analytics.
This completes this lesson.
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1
A Clean, Well-Lighted Place (1933) / Ernest Hemingway

15. It was very late and everyone had left the café except an old
man who sat in
the shadow the leaves of the tree made against the electric light.
In the day time
the street was dusty, but at night the dew settled the dust and
the old man liked
to sit late because he was deaf and now at night it was quiet and
he felt the
difference. The two waiters inside the café knew that the old
man was a little
drunk, and while he was a good client they knew that if he
became too drunk he
would leave without paying, so they kept watch on him.
"Last week he tried to commit suicide," one waiter said.
"Why?"
"He was in despair."
"What about?"
"Nothing."
"How do you know it was nothing?"
"He has plenty of money."
They sat together at a table that was close against the wall near

16. the door of
the café and looked at the terrace where the tables were all
empty except where
the old man sat in the shadow of the leaves of the tree that
moved slightly in the
wind. A girl and a soldier went by in the street. The street light
shone on the
brass number on his collar. The girl wore no head covering and
hurried beside
him.
"The guard will pick him up," one waiter said.
"What does it matter if he gets what he's after?"
"He had better get off the street now. The guard will get him.
They went by
five minutes ago."
The old man sitting in the shadow rapped on his saucer with his
glass. The
younger waiter went over to him.
"What do you want?"
The old man looked at him. "Another brandy," he said.
"You'll be drunk," the waiter said. The old man looked at him.
The waiter

17. went away.
"He'll stay all night," he said to his colleague. "I'm sleepy now.
I never get
into bed before three o'clock. He should have killed himself last
week."
The waiter took the brandy bottle and another saucer from the
counter
inside the café and marched out to the old man's table. He put
down the saucer
and poured the glass full of brandy.
"You should have killed yourself last week," he said to the deaf
man. The
old man motioned with his finger. "A little more," he said. The
waiter poured on
into the glass so that the brandy slopped over and ran down the
stem into the
top saucer of the pile. "Thank you," the old man said. The
waiter took the bottle
back inside the café. He sat down at the table with his colleague
again.
"He's drunk now," he said.
"He's drunk every night."

18. "What did he want to kill himself for?"
"How should I know."
"How did he do it?"
"He hung himself with a rope."
"Who cut him down?"
"His niece."
"Why did they do it?"
"Fear for his soul."
2
"How much money has he got?"
"He's got plenty."
"He must be eighty years old."
"Anyway I should say he was eighty."
"I wish he would go home. I never get to bed before three
o'clock. What
kind of hour is that to go to bed?"
"He stays up because he likes it."
"He's lonely. I'm not lonely. I have a wife waiting in bed for

19. me."
"He had a wife once too."
"A wife would be no good to him now."
"You can't tell. He might be better with a wife."
"His niece looks after him. You said she cut him down."
"I know."
"I wouldn't want to be that old. An old man is a nasty thing."
"Not always. This old man is clean. He drinks without spilling.
Even now,
drunk. Look at him."
"I don't want to look at him. I wish he would go home. He has
no regard for
those who must work."
The old man looked from his glass across the square, then over
at the
waiters.
"Another brandy," he said, pointing to his glass. The waiter who
was in a
hurry came over.
"Finished," he said, speaking with that omission of syntax
stupid people

20. employ when talking to drunken people or foreigners. "No more
tonight. Close
now."
"Another," said the old man.
"No. Finished." The waiter wiped the edge of the table with a
towel and
shook his head.
The old man stood up, slowly counted the saucers, took a
leather coin
purse from his pocket and paid for the drinks, leaving half a
peseta tip.
The waiter watched him go down the street, a very old man
walking
unsteadily but with dignity.
"Why didn't you let him stay and drink?" the unhurried waiter
asked. They
were putting up the shutters. "It is not half-past two."
"I want to go home to bed."
"What is an hour?"
"More to me than to him."
"An hour is the same."

21. "You talk like an old man yourself. He can buy a bottle and
drink at home."
"It's not the same."
"No, it is not," agreed the waiter with a wife. He did not wish
to be unjust.
He was only in a hurry.
"And you? You have no fear of going home before your usual
hour?"
"Are you trying to insult me?"
"No, hombre, only to make a joke."
"No," the waiter who was in a hurry said, rising from pulling
down the metal
shutters. "I have confidence. I am all confidence."
"You have youth, confidence, and a job," the older waiter said.
"You have
everything."
"And what do you lack?"
"Everything but work."
"You have everything I have."

22. 3
"No. I have never had confidence and I am not young."
"Come on. Stop talking nonsense and lock up."
"I am of those who like to stay late at the café," the older
waiter said. "With
all those who do not want to go to bed. With all those who need
a light for the
night."
"I want to go home and into bed."
"We are of two different kinds," the older waiter said. He was
now dressed
to go home. "It is not only a question of youth and confidence
although those
things are very beautiful. Each night I am reluctant to close up
because there
may be some one who needs the café."
"Hombre, there are bodegas open all night long."
"You do not understand. This is a clean and pleasant café. It is
well lighted.
The light is very good and also, now, there are shadows of the
leaves."
"Good night," said the younger waiter.

23. "Good night," the other said. Turning off the electric light he
continued the
conversation with himself. It was the light of course but it is
necessary that the
place be clean and pleasant. You do not want music. Certainly
you do not want
music. Nor can you stand before a bar with dignity although
that is all that is
provided for these hours. What did he fear? It was not a fear or
dread. It was a
nothing that he knew too well. It was all a nothing and a man
was a nothing too.
It was only that and light was all it needed and a certain
cleanness and order.
Some lived in it and never felt it but he knew it all was nada y
pues nada y nada y
pues nada. Our nada who art in nada, nada be thy name thy
kingdom nada thy
will be nada in nada as it is in nada. Give us this nada our daily
nada and nada us
our nada as we nada our nadas and nada us not into nada but
deliver us from
nada; pues nada. Hail nothing full of nothing, nothing is with
thee. He smiled and

24. stood before a bar with a shining steam pressure coffee
machine.
"What's yours?" asked the barman.
"Nada."
"Otro loco mas," said the barman and turned away.
"A little cup," said the waiter.
The barman poured it for him.
"The light is very bright and pleasant but the bar is unpolished,"
the waiter
said.
The barman looked at him but did not answer. It was too late at
night for
conversation.
"You want another copita?" the barman asked.
"No, thank you," said the waiter and went out. He disliked bars
and
bodegas. A clean, well-lighted café was a very different thing.
Now, without
thinking further, he would go home to his room. He would lie in
the bed and
finally, with daylight, he would go to sleep. After all, he said to

25. himself, it's
probably only insomnia. Many must have it.
.
.