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Quiz 3 17th of April Chapter 11 (Social Media Marketing (Information v…
Quiz 3
17th of April
Chapter 11
Social Media Marketing
Information v Persuasion
consumers needs information but also to be persuaded
competitive landscape: organisations give information but also an emotional or symbolic appeal to self-image or social belonging
Advertising
persuasive communication through traditional communication model
Social Media
less clear due to three factors
Non-dyadic communication
both parties are influencing; power distance still exists
Nature of the medium
spread across multiple channels with additional attention and engagement
Nature of influence
co-creation by consumers collectively and individually, company cannot influence it; rather embrace than stop
combination of information and persuasion
company to consumer: push marketing
Consumer seeks company information: pull marketing
companies try to encourage consumer pull by placing themselves in channels like search and try to create push that will garner WOM
Types of Media
Earned Media
media coverage created by someone else
WOM or press attention
traditional: larger immediate effect on sales compared to SM
Paid Media
company buys time or space on an existing platform
Owned Media
own platform e.g. website
Social Media mainly earned media
most persuasive and cheapest but hard to control
authentic and credible sources
larger long-term effect because more frequently and reached quickly also more specialised audience not reached by traditional media
narrower audience on internet marketing
80/20 rule; 80% of the sales are made by 20% of the customers
using SM to communicate with loyal customers more cheaply
most loyal customers are the most profitable customers
downside: hard to find most loyal customers online
purpose: integrate social media marketing tools and practice into a marketing strategy to create interesting and innovative ways of garnering consumer attention and creating emotional attachment
organisations use SM to reach a new and different audience including potential donors and advocates
specialised ways to communicate with consumers; not straightforward or predictable
The Purchase Funnel
model how people learn about marketplace objects
primarily for rational decision process where consumers seek extensive information before purchase
5 Steps
Awareness
knowledge that the product, category of product exists
difficult to create awareness in an attention economy
Moment marketing
using big events to circulate content timely on SM
Opinion
what the consumer thinks about the options
influenced by how familiar the consumer is with them
Gathering information and weighing it against what is needed, wanted or liked
shaped by taste, reflecting cultural capital or social context
eWOM
Consideration
weighing different options against one another and consider the alternative of not buying
customer ratings; similar followers on brands FB pages to oneself increase brand evaluation while dissimilarities decrease brand evaluation
compromise effect
pick an item which is priced between the other items
Preference
forming a preference and an intention to buy
Purchase
purchase the good or swrvice
straightforward
Social Media as part of every step in the funnel
further: consumer produces feedback through eWOM e.g. Twitter
Confirmation bias: consumers like products more after they have bought them
Internet shopping risks can be mitigated through additional information such as ratings, size, fit etc.
The Decision Journey
purchases are not always rational
Alternative to purchase funnel
after initial trigger people evaluate product and provide feedback
remind people to re-purchase and deepen their love for the product which creates a loyalty loop
suits context where the purchase is less rationally planned and when people purchase a product multiple times while potentially creating feedback that might influence others
Advertising Messages and Channels
SEA
the closer to the purchase the more precise the search term
advertisers pay more for specific search words
payment to optimise search results to appear on top of the list
key role
WOM
Impact
Recommendations of others have a direct influence on purchase decision
information about a product or service is transmitted from person to person
more frequent, more trusted and larger impact than traditional media
eWOM e.g. Twitter, Message boards, reviews
Social Shopping Sites with integration of WOM to encourage shoppers
Impact on company metrics e.g. Sales, brand equity, stock price, longer term effects on sales, profits
Importance
distinguish between companies who accept the influence of WOM and those who don't
Characteristics
Valence
positivity or negativity of the review (greater influence of a negative review as consumers are risk averse
Variance
similarity or dissimilarity to each other
Volume
total amount of online reviews; the bigger the volume the more valid
Writing reviews
reading negative reviews = writing negatively
reading positive reviews = balanced review
Social Media Monitoring
tracking what is being said about a company or product online
Drivers of WOM
loyalty
self-enhancement; feeling like an expert
Opinion leaders
more likely to be influential compared to loyal customers as they have a lot of social capital but strongly selective with their opinion
product has to be interesting and relevant but over time it will only have WOM if it is still relevant
Effectiveness of WOM
weak ties: raising awareness as bringing new information
strong ties: mostly same interest therefore no new information but information which has either been considered before and/or dismissed
strong ties: affecting preferences! Nonanonymous reviews are more persuasive than anonymous ones
WOM Marketing
the practice of encouraging the transmission of positive product information or buzz
companies pursuing WOM publicity on their own
hybrid between naturally existing WOM and advertising campaigns
Seeding: technique of giving products to lead users or opinion leaders with the aim to generate positive WOM marketing, authentic product reviews and heightened exposure
Disadvantage: undermines authenticity
needs to be congruent with personality, personal narrative as well as expectations and norms of friends
4 strategies
Evaluation/Endorsement
disclose the promotion explicitly and gain consumer approval by doing so
Embracing/Explanaition
implicitly disclose the promotion (depends on if the followers accept commercial endorsement)
Crisis Management
Firestorms
develop because of consumer mistreatment, racist behaviour, homophobic behaviour
happens to organisations and celebrities/individuals
speed of communication and capacity for volume facilitate firestorms
Twitter as the fastest Genre
second wave through traditional media
length: short messages lead to simplified ,essages and extreme sentiments
Structure of Network: clustering; information comes from various sites and lead the consumer to engage with it because of the frequency
SM campaigns and offline Promotion
combine offline and online promotion e.g. giving away cinema tickets on FB
lifestyle and luxury require longer-term brand building including multiple SM platforms and more organic "fan" recruitment
Social Media Marketing and the Value Chain
Advertising: Communication of an organisation with its customers
Marketing: other activities performed by the organisation to meet the need of its customers
Social media facilitates the consumer input through the value chain
e.g. co-creation or collaborative production
Market Research
netnography
gain insights into needs and values of target market through message boards, tracking via cookies etc.
sometimes act against loyal customers to gain a new customer group
Design
integrate customer into design process through competitions
Production
least likely to have customer engagement
sometimes assembling the product by providing the customer only with material
Distribution
WOM communication
clearest integration of customers
use networks of loyal customers to announce or distribute new products
Service
technical support and customer service through message boards (e.g. Adobe); develop and discover new target markets and provide consumers with products needed