THE HORIZONTAL REVOLUTION 1 1 Chapter 1 Copyright

THE HORIZONTAL REVOLUTION 1 -1 Chapter 1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Chapter Objectives 2 -1 What are social media? How does the Social Media Value Chain explain the relationships among the Internet, social media channels, social software, and the Internet-enabled devices we use for access and participation? What is Web 2. 0? Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Chapter Objectives (cont. ) What are the major media channels associated with social media? What is social software? Why is social media valuable to marketers? What marketing objectives can organizations meet when they incorporate social media in their marketing mix?

4 -1 You’re a DIGITAL NATIVE! You are constantly ‘wired’ in the networked, always-on world. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Web 2. 0 5 -1 The interactive social system that is available to users 24 hours a day, 7 days a week. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

6 -1 Horizontal Revolution: Today information flows ACROSS people, not just from big companies to people Social Media: The online means of communication, conveyance, collaboration and cultivation among interconnected people, communities and organizations Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Living a Social (Media) Life 7 -1 The Internet and its related technologies make what we know today as social media possible and prevalent. Synchronous Interactions: Occur in real time Asynchronous Interactions: Do not require all participants to immediately respond Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

8 -1 If Facebook were a country, it would be third most populated in the world! Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

9 -1 Social Behavior and the Philosophy of Participation Culture of Participation: The ability to freely interact with other people and companies; open access to venues that allow users to share content. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Social Media Zones 10 -1 Media: a means of communication Mass Media: means of communication that can reach a large number of individuals Personal Media: channels capable of two-way communication on a small scale Social Media crosses the boundaries of mass and personal media Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

11 -1 Communication travels using a medium (or channel) such as word-of-mouth, television, radio, newspaper, magazine, signage, Internet, direct mail, or telephone. Within each medium, marketers can choose specific vehicles to place a message. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The 4 Zones of Social Media Channels 12 -1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Zone 1: Social Communities 13 -1 Social communities: channels of social media focusing on relationships and the common activities people participate in with others who share the same interest or identification. Channels in the social community zone include: * Social networking sites (SNS) * Message boards * Forums * Wikis Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Social Networking Sites 14 -1 Online hosts that enable site members to construct and maintain profiles Social identity – profile picture or avatar and basic information. Social presence – indicating availability, mood, friend list and status. Connection – friends, followers or fans. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Social Media Zones and Exemplar Vehicles

16 -1 Forums The oldest venue of social media. Essentially forums are interactive, online versions of community bulletin boards. Wikis Collaborative online workspaces that enable community members to contribute to the creation of a useful and shared resource. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Zone 2: Social Publishing 17 -1 Social publishing: sites which aid in the dissemination of content to an audience. The channels of social publishing include: * Blogs * Microsharing sites * Microblogging sites * Media sharing sites * Social bookmarking * News sites Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

18 -1 Blogs Websites that host regularly updated online content Microsharing Sites Work much like blogs except there is a limit to the length of content you can post Media Sharing Sites Host content but also typically feature video, audio, photos, and other presentations rather than text Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Zone 3: Social Entertainment 19 -1 Social entertainment: encompasses channels and vehicles that offer opportunities for play and enjoyment. Social entertainment includes: * Social games * Socially enables console games * Alternate reality games * Virtual worlds * Entertainment communities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Zone 4: Social Commerce 20 -1 Social commerce: encompasses channels and vehicles that offer opportunities for play and enjoyment. Social commerce includes: * Reviews and ratings * Deal sites * Deal aggregators * Social shopping markets * Social storefronts Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

21 -1 Web 2. 0: The Defining Characteristics of Social Media The Web Is the Platform User Participation, User-Generated Content, and Crowdsourcing User-Defined Content Network Effects Scalability Perpetual Beta Reputation Economy Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The Web “IS” the Platform 22 -1 Cloud computing. The general term for anything that involves delivering hosted services online. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

User-Defined Content 23 -1 Taxonomies are classifications that experts create. Folksonomies are sets of labels (tags) individuals choose in a way that makes sense to them. Tagging refers to the process social media users undergo to categorize content according to their own folksonomy. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Network Effects and Scalability 24 -1 Network effects. The value added for all users by each individual user. Scalability. The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

25 -1 Perpetual Beta and Reputation Economy Perpetual Beta. Developers are able to introduce new features in products even if testing and refinement are not yet complete. It is continual, on-going development. Reputation Economy. The value that people exchange is measured in esteem as well as money. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The Infrastructure of Social Media 26 -1 Social Software computer programs that enable users to interact, create, and share data online. Devices are products we use to access the Internet and to participate online. People interacting online is the only way social media can work. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Show Me the Money! 27 -1 Business Models and Monetization Psychic Income Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

28 -1 Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The marketing mix includes the 4 Ps of Product, Price, Promotion, and Place (distribution). Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The 5 th P of Marketing 29 -1 Today, we need to add the fifth P to the Marketing Mix. Participation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

30 -1 Marketing Communication: From Top-Down to Bottom-Up A micromarket is a group of consumers once considered too small and inaccessible for marketers to pursue. Niche products appeal to small, specialized groups of people. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

31 -1 Social Media Achieves Marketing Objectives Promotion and Branding Customer Relationship Management and Service Recovery Marketing Research Retailing and E-commerce Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Social Media Achieves Marketing Objectives (cont. )

33 -1 Social Media Achieves Marketing Objectives Promotion and Branding Extend and leverage the brand’s media coverage Influence the consumer throughout the decisionmaking process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Core Types of Media 34 -1 Paid Media: Media for which you assessed monetary fees Owned Media: Media channels the brand controls Earned Media: Media channels beyond the control of the company Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

35 -1 The Role of Social Media in the Consumer Purchase Process Increase Awareness Influence Desire Encourage Trial Facilitate Purchase Cement Brand Loyalty Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

36 -1 Social Media Achieves Marketing Objectives Customer Relationship Management (CRM) and Service Recovery Social CRM uses software to fine tune the offer and build intimacy with the customer Social recovery is the actions an organization takes to correct mishaps and win back unhappy customers Retailing and E-commerce Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall