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Creating product awareness in the 21st century in asia
- 1. Creating Product Awareness in the 21st Century in Asia What Does Social Media Mean for the SME? Matthew Maloney 15/12/2011
- 2. Research Methodology Sponsorship of Microvision, USA Literature Review Desktop Research Interviews Case Study Analysis
- 3. Why Social Media Marketing? Solis (2011): Web is vital to modern marketing because… (a) ‘Never ending fountain of lessons and insight’ (b) Delivers new communication tools (c) Is a distribution channel in itself (d) Allows real time monitoring of responses to marketing campaigns and advertisements 80% of businesses use social media (MarketingSherpa, 09) Move from broadcast to conversational ethos in modern marketing
- 5. How Do Businesses Use it? Internally: Employee Engagement Social Enterprise Externally: Customer Engagement Customer Support/Customisation Market Research PR SEO
- 6. Case Study: The Pampered Chef SME with 750 corporate staff based in Illinois, USA Founded in 1980 – First Facebook Presence in 2010 Digitalised Tupperware business model (Rogers, 01) 50k Likes just 10 days after FB Launch! (No ad spend) 35% average growth every 2 months (viral) Subsequent ad spend – 11c per new like Targeted Opinion Leaders > Opinion Formers
- 7. Case Study: The Pampered Chef
- 8. SMM in Asia In Feb, 2010 50% of Asia’s Internet Population visited a SNP (comscore, 2010) Australia, Singapore, S. Korea high penetration 150m Facebook Users in Asia (Eskimon, 2011): Singapore 2.5m Malaysia 11.4 Thailand 11.7 Philippines 26m Indonesia 39.5m
- 9. Social Media Across Asia
- 10. SMM in China $1.7b market, 33% growth in 2010 (Nuttney, 2010) Qzone or QQ leading SNP 87% of Chinese have followed or friended a brand online 77% believe an online presence makes a brand more attractive Average Internet user spends more than 2 hours online everyday Half of China’s social media users are in their 20s 40% of netizens are content creators
- 11. SMM in India By 2015 India will have 3rd largest social networking population in the world Spend 3 hours p/month on average on SNPs Mobile Access to Internet – 59% of internet pop Problem 1: Only 8% of pop have access to internet Problem 2: 13.5 of 40m social networkers have no bank account
- 12. Trend #1: Mobile Q3 2010 –Q3 2011: 30% increase in mobile social media usage (Nielsen, 2011) Location based advertising e.g. QR codes What do they do? 80% read posts 69% post status updates 50% read posts from organisations
- 13. Trend #1: Mobile
- 14. Trend #2: Social Gaming 700m Social Gamers by YE 2010 (Band, 2010) Symbiotic relationship between social games and social media e.g. Farmville Socialisation of Console Gaming Gateway to middle Aged Social Networkers Asia $2b social gaming market in 2011 (largest) Social Gamers will buy $6b of virtual goods by 2013 – moviegoers will buy $2.5b in real goods by 2013
- 15. Future Trend #3: Big Data IT Revolution in Data Storage and Analytics Quantification of Social Media Data Currently companies have social media teams – Automation of social media coming Future: Marketing Dashboards of Consumer Data from Social Media (Prodham, 2011)
- 16. What Does It Mean for the SME? Follow the consumer Don’t ignore B2B applications The Humanisation of the Firm (Solis, 2011) Keep track of new metrics Engagement
Hinweis der Redaktion
- Good Afternoon, Today I am here to talk about research I have done under the sponsorship of Microvision over the past months relating to one of the principal problems an SME will find when coming to Asia – Creating Product Awareness. Today with a bewildering variety of media and avenues available it is important to distinguish one of the newer forms for reaching customers – social media – and figure out what exactly does its rise mean for the SME. The research is a result of a chief problem of my sponsoring company in that Microvision didn’t have a social media strategy prior to this year and wanted research on the area. My task was to do this and propose a social media strategy for the company. I therefore share in my thesis some of that research and try to tease out some of the ramifications for an SME in a similar boat to Microvision.
- The research that has gone into my report is based on extensive literature review, desktop research, interviewing and case study analysis.
- One of the first things an SME must figure out is why social media is now so important. E-Commerce has grown strongly over the past decade. It is now too big to ignore. According to Solis (2011), there are 4 main reasons why businesses need the web: Experience, Communication, Distribution and Intelligence. Taken together these 4 reasons help to explain why 80% of businesses use social media. Along with this, we are seeing a broad move away from broadcast-repetitive messaging associated with older media to conversational-inclusive in social media.
- Again, note how eCommerce has grown vis a vis retail over the past 8 years.
- While most businesses now agree social media isn’t just a fad, many don’t know how and what to use it for. Contrary to popular belief, customer engagement is just one of its many potential applications. As Rob Markey, Bain Head of Customer Strategy & Marketing has said – we should aim to use same systems of feedback from employees as well as customers. Social media can be an efficient and direct way fro managers to hear from their employees, especially on a global scale. Another internal use of social media is social enterprise which involves companies establishing their own internal social media portals for collaboration purposes. Externally the firm can use social media for viral marketing, e-loyalty programmes or communications with regards to customer engagement. It can also replace call centres and hotlines with social media for customer support as notable companies like KLM have done. Social media can be sued for market research purposes, often cheaper than traditional methods. It can be used for PR as journalists flock to it and use one stop shop repositories like mynewsdesk.com. Finally in terms of web marketing it can be used to improve the companies profile and appearance on search engines.
- A good example of how an SME can use it for one or more of the above purposes has been the Pampered Chef. An Illinois based firm specialising in cooking products. Using the old Tupperware model online, Pampered Chef used Facebook for the first time in 2010 with astonishing results. Affiliate marketers or ‘consultants’ helped spread word of mouse online, each having a direct incentive in its viral like growth. Within 10 days it had over 50k Likes. In terms of social media campaigns its ROI was unprecedented. There are two lessons to take from Pampered Chef for SMEs. First, the targeting of Opinion Leaders (Parents, Friends) > Opinion formers (dentists) allowed it to spend on marketing effectively. Second, how an old business model can still be viable, if not thrive, online with a new tool like social media.
- Social media is now mainstream in Asia. As of Feb 2010, 50% of Asia’s population or 240m people visited a SNP. In countries like Australia, Singapore and S. Korea this percentage is even higher. Facebook is now the leading SNP in Asia.
- For the purposes of my report I further highlighted two countries China and India as I believe they will drive future social media trends in the region by weight of their populations alone. China already is a large potential market for the SME, even in terms of just social media. What makes China an interesting country for this type of marketing is the fact that many Chinese are already comfortable to being marketed to this way. Indeed a majority want firms to market to them virtually. Chinese social media users are among the most rabid and engaged worldwide. There are above average content creators – perhaps the result of suppression of other forms of expression.
- On the other hand India presents a unique yet tougher challenge for the social media marketer. Although by 2015, India will be the 3rd largest social networking country in the world and social media use is already sizeable only 8% of the population have access to the internet. 59% of these access it through mobile which presents a separate opportunity or challenge depending on the SME’s mobile marketing budget. As an e-commerce market it is worth sizeably less than China’s as 13/5m of 40m social networkers have no bank account. Infrastructural impediments are being overcome however through the rise of mobile banking there.
- Concerning the future, its important to highlight 3 major trends that I believe will profoundly influence the way SMEs and marketers use social media in the coming years. The first of these trends is mobile. In the past year there has been a massive 30% increase in mobile social media usage according to Nielsen. This is the result of new hardware coming online like smartphones and tablets. This presents a massive opportunity to reach customers - especially those on the move. Location based advertising using social media information like a Twitter or Foursqaure account has opened up a new avenue for marketers that was previously science fiction. QR codes now allow consumers to scan marketing messages off billboards and are already popular in parts of Asia. Consumers are adapting quickly to this with 1/3 having received coupons on mobile, 27% click on ads through social media and 50% reading posts and updates from organisations through mobile. The rise in mobile advertising is in response to the 73b failed internet advertising industry. The internet failed as an ad medium because in the past people relied on computers for information. As Kennedy, 2011 says most of the media on which ads worked were relied on for entertainment. Smartphones are relied on for entertainment which means it can work.
- As you can see the rise in mobile internet is unprecedented in growth of a mass medium.
- The second major trend worth noting by SMEs is Social Gaming. By YE 2010 there will be 700m social gamers. Social gaming is where gaming and social media meet. Either through the spread of gaming on social media platforms like Farmville or the spread of social on consoles like PlayStation Home. Social gaming is sticky – meaning it is an excellent opportunity not only for advertising but also sponsorship e.g. McDonalds sponsored farms in Farmville. In terms of the audience potentially reached, it skews towards middle aged users and also though with low disposable incomes like students or those in developing nations like many Asian countries. By 2011, the Asian social gaming market will be worth $2b which will make it the largest social gaming market in the world. Social gaming in Asia is already massive with networks like Tencent, Cyworld and Friendster adopting many gaming features to suit the needs of Asian SNP users. This market growth will continue not just in Asia but worldwide. By 2013, $6b of virtual goods will be sold as opposed to 2.5b of real goods in the cinema industry. TodayXbox makes more selling virtual goods than consoles.
- The last major trend worth noting is Big Data which threatens to revolutionise IT. Big Data is the use of data storage and hard analytics to make sense of the massive amounts of data companies and now consumers using social media are creating every day. Twitter for example sees people send 200m tweets per day. Whereas previous software programmes or computing couldn’t make sense of all this information without human input, big data will change this to make it possible. The practical applications of this include Personality based marketing, complementary selling/upselling, location based advertising and the automation of marketing functions. Some even see marketing dashboards reliant on social media and other data being created and monitored by marketers of the future.
- So now after looking at the various key aspects of social media, the big question of my report and for this presentation remains to be answered – what does it all mean for the SME? The first thing is that SMEs must follow the consumer online. 2/3 of internet users use social networking so for an SME not to have a social media presence, never mind not have a web presence is sinful. The second thing is to view social media not only as a B2C tool but also a B2B tool. Social media can be used to reach businesses in Asia just as well as consumers. As ArvindRajan, LinkedIn AP head mentioned at the world social media forum– it is an excellent way to do contact and research buyers and business contacts before going to Asia for example. Third, SMEs can’t ignore how social media is humanizing the firm. Customers can now engage directly with the brand like never before and it is important firms take functions like customer support seriously Fourth, SMEs will have to start getting used to keeping track of new marketing metrics like Net Promoter Scores or Klout Scores if they are to use this new tool effectively. Competition based on older metrics is fading. Finally social media is about one word –engagement. 32% of online adults and 55% of online youths want to engage with brands solely through social applications (Boskirk, 2009). Firms have to be involved in, start and promote conversations around their brand rather than sit idly by. This means a radical shift from broadcast passive to conversation active communications. Unless SMEs engage with their consumers offline and online, the increasingly global nature of competition, brought about by technology like social media will threaten their very survival.