Assignment 2

1. Milla Kortesoja Assignment 2 1 (4)
HAAGA-HELIA University of Applied Sciences
MAR8LC067-2
15.9.2011
Social Media in Marketing
What is social media?
When it comes to modern marketing, social media is the new black.
Consultants and strategists spend their days trying to figure out how to
make profitable use of social media platforms such as Facebook,
LinkedIn or Twitter. These may be the most well known social net-
works but not the only ones: blogs, online game and social worlds and
music sharing sites are also popular. According to Van Belleghem (2011,
10-11), when discussing the future of social media, the big social net-
works will get even bigger and small ones will be facing problems. This
is due to continuing interest towards big social networks, such as Face-
book or Twitter, and small networks shrinking. Van Belleghem (2011,
30) also states that 98 % of Europeans are aware of social media and 73
% of Europeans are member of at least 1 social network. This being
said, it can be stated that social networks and social media have a huge
potential as a marketing tool as they are an easy way to reach millions of
people and to attract attention.
Kabani (2010, 1) argues the reason why most people are struggling with
social media marketing is because they are doing things the wrong way
around: the traditional marketing rules do not apply to social media
since social media is not marketer’s platform but instead belongs to the
customers. Traditional marketing was a one-way street, in terms of
company setting out a marketing message and customers not interacting.
Now, in the era of social marketing, the customer may and do actually
talk back and respond to marketing messages in social media. The social
media marketing as a marketing tool differences from the traditional
marketing a great deal and in case attempting to successfully use social
media marketing one should understand its nature as an active platform
for customers to produce content.
The elements social media includes
Social networks are all about socializing and connections. Sharing in-
formation with others by writing a blog, suggesting links, pressing
“Like” in Facebook or by becoming a Fan – these are all great ways to
market a product or a company, to build a more positive brand image
and to build long-lasting customer relationships. A Fan is someone who
profits the company by clicking Like on product or company’s profile or
by creating brand related content in Facebook: this all adds up as more
visibility for the company. Van Belleghem (2011, 15-16) states that peo-
ple become a fan not because of the advertising but because they like
the brand and that 36 % of people post content about a brand on social
networks. Company profiles, groups and Like in Facebook as well as
following up in Twitter are all great elements to use while attempting to
increase brand awareness.

2. Milla Kortesoja Assignment 2 2 (4)
HAAGA-HELIA University of Applied Sciences
MAR8LC067-2
15.9.2011
Other elements in social media include location based social networks,
social media gaming, events, social news, wikis, media and entertainment
platforms, virtual worlds, live casting, music and video sharing – you
name it. The list goes on and the social networks develop all the time
bringing new innovative options and ways for people to communicate,
share and connect.
Advantages and disadvantages in using social media in marketing
Merisavo et al. (2006, 34) discuss the advantages of digital marketing
stating that digital channels make it possible for companies to listen to
their customers better and to developing products and services. This is
because the customers get the change to bring up their ideas and to
comment on rising issues. This may not just improve the way the com-
pany operates and helps in the development process but also deepens
the customer relationship.
The advantages, from company’s point of view, are the low costs of
social media marketing, reaching a wider target group, the possibility to
change and create marketing fast based on what works and what does
not, the interactivity between the customer and the company, more ef-
fective customer engagement and a possibility to activate customers
easier. From customer point of view, the advantages are possibility to get
information about product or company unrestricted by time or place,
easier access to information, possibility to get offers and discounts, to
share thoughts with other consumers and to easily figure out the liability
of the company based on online reviews and comments given by other
users (Merisavo et al. 2006, 45)
Disadvantages are, as Juslén (2009, 62) states, that it is hard to measure
the effectiveness of social media marketing, as it is impossible to know
the amount of people your message reaches and also because the target
group is often not as homogenised as in traditional segment based mar-
keting. Strauss & Frost (2009, 185) note another disadvantage: the com-
ments about the company or its products given in social media maybe be
negative or false information and there is no way to control this. One
option is to have moderators to keep an eye on the discussion but if the
negative or inappropriate comments are removed the users will most
likely just end up posting their comment somewhere else.
Main principles in using social media in marketing
There are many ways to successfully use social media in marketing but
some basic guidelines help you to get there. Juslén (2009, 312-313) sug-
gests to first identify the target group and start following it, then com-
ment and interact with the target group, add value by creating content
that attracts the interest of the target group, identify useable social mar-
keting tools and how to use them and finally measure the results.

3. Milla Kortesoja Assignment 2 3 (4)
HAAGA-HELIA University of Applied Sciences
MAR8LC067-2
15.9.2011
Kabani (2010, 4) introduces The ACT Methodology: a model consisting
of three main principles being Attract, Convert and Transform. Attract
means to get the attention of the potential customers and to attract traf-
fic to your website. Attracting can be done by offers, discounts or spe-
cial treatment for an example for people that are fans of the brand in
Facebook. Kabani considers this the most important online marketing
tool. Conversion means turning strangers into customers or consumers:
when you sell the product or service to a person first turning him into
consumer, someone who tries the product, and then to customer,
someone who ends up buying the product regularly. Transform refers to
past successes and turning them into so-called attraction magnets, mean-
ing ways to attract more customers. Past successes serve as a proof of a
good product or service and helps to attract more customers.
Van Belleghem (2011, 70) agrees with Kabani on attracting attention be-
ing the most important tool in social media and states that getting in-
formation about new brands and products is what drives people to join
social networks. Van Belleghem (2011, 82) also states that social net-
workers expect direct benefit of companies in social media and that
companies should understand this and use this marketing tool by offer-
ing product information, updates on promotions and announcing
events. That way they attract more attention and gain more profit out of
social media marketing.
Good example of a company with excellent social media appearance, in
my opinion, is Ben&Jerry’s with their Facebook Group full of polls
about favourite flavour, delicious pictures of the products and posts that
just make you crave for some ice cream – what an excellent way to not
just engage customers but also increase sales! Another good example,
local one, is Summer Heat parties that were arranged at Wanha Ylioppi-
lastalo, some events also at Hietaniemi beach, in Helsinki, Finland dur-
ing summer 2011. The Summer Heat site in Facebook had frequent up-
dates on how to win VIP-packages to the parties, competitions and pic-
tures of the past weekends party pictures – elements that surely interest
the people who attended the parties or were considering to do so.

4. Milla Kortesoja Assignment 2 4 (4)
HAAGA-HELIA University of Applied Sciences
MAR8LC067-2
15.9.2011
References Juslén, J. 2009. Netti mullistaa markkinoinnin. Hyödynnä uudet mahdol-
lisuudet. Kariston Kirjapaino Oy. Hämeenlinna.
Kabani, S. H. 2010. The Zen of Social Media Marketing. An Easier Way
to Build Credibility, Generate Buzz, and Increase Revenue. BenBella
Books, Inc. Dallas, Texas. The United States of America.
Strauss, J. & Frost, R. 2009. E-Marketing. 5th edition. Pearson Educa-
tion, Inc. Upper Saddle River, New Jersey. The United States of
America.
Merisavo, M., Vesanen, J., Raulas, M., Virtanen, V. 2006. Digitaalinen
markkinointi. Gummerus Kirjapaino Oy. Jyväskylä.
Van Belleghem, S. 2011. Social Media Around the World 2011.
http://www.slideshare.net/stevenvanbelleghem/social-media-around-
the-world-2011. Accessed: September 15, 2011.