presentation social media outreach viral marketing and branded

							                               E-word-of-mouth



A study of the strategies and theories underlying social media, viral
      marketing and branded communities        By Ming Zhao
WORD OF MOUTH

   Personal source                        http://www.sas.upenn.edu/~jgas
                                            per/courses/ABM/ViralMarketing.
   Positive, and especially negative       html
    WOM have the ability to quickly
    become wide spread

   Such effect is multiplied with
    online interactions

   words can travel to many in a
    very short amount of time

   Cost effective
Currently Practiced Forms of Word of
Mouth
   Social media: blogs and
    podcasts (45%)                          Brand/Customer Community-
                                             building WOM
   Social networks (42%)
                                            Social Media
   Buzz/Guerrilla Marketing (25%)           Production/Outreach WOM
                                             (i.e. blogs, podcasts)
   Influencer Programs - 23%
                                            Social Network
   Brand Experience Initiatives             Production/Outreach WOM
    (21%)
                                            Viral Marketing/Advertising
   Viral Ads (18%)                          WOM

   Brand Communities (16%)
  Source: Agent Wildfire Research 2008
               What is social media?
   Wikipedia says: Social media are primarily internet-and mobile-
 based tools for sharing and discussing information among human
       beings. The term most often refers to activities that integrate
    technology, telecommunications and social interaction, and the
construction of words, pictures, videos and audios. The interaction,
and the manner in which information is presented, depends on the
      varied perspectives and “building” of shared meaning among
       communities, as people share their stories and experiences.
Businesses also refer to social media as user-generated content or
                                             user-generated media.
Common social media applications
      Social media marketing

   SM Marketing relies on the audience to distribute and engage in the
    dialogue and sometimes the creation of additional content.

   Its about engaging, communicating via a dialogue and interacting with
    people. More so customers.

   Increasing traffic to a site by links, brand awareness and well attention.

   You pay attention to what your customer/user wants and needs!

   You do this by listening, interacting, chatting.

   One does this by having a presence on social networking sites and
    channels.

http://wiki.beingpeterkim.com/
         What is viral marketing？
  “Viral marketing refers to marketing techniques that
use pre-existing social networks to produce increases
     in brand awareness or to achieve other marketing
        objectives (such as product sales) though self-
   replicating viral processes…It can be word-of-mouth
      delivered or enhanced by the network effects of the
                                  internet” ---Wikipedia
Viral marketing

   Simply relies on the audience to distribute the objective-Uses social
    networks like Facebook, MySpace, Linkedin, Twitter to help achieve an
    objective…i.e sales, brand awareness, etc

   This objective is obtained by a “Viral Action”. This action is people
    passing on the content such as video, picture, an application, banner,
    heck even just word of mouth.

   Bottom Line: Viral relies on the audience to spread the message with
    little or no interaction. Its a one time interaction.
Framework for viral marketing—M.R.Subramani and
B.Rajagopalan, 2003
HIGH: benefits                 SIGNALING                 MOTIVATED
to all users                   USE, GROUP                EVANGELISM
depend on size                 MEMBERSHIP                Normative
of user base                   Normative                 influence
                               influence
                 EXTERNALITY


                               AWARENESS                 TARGETED
                               CREATION,                 RECOMMEND
                               BENEFITS                  ATION
                               SIGNALING                 Informational
                               Informational             and normative
                               influence                 Influence

LOW: benefits                                  RECOMME
to users only                                  NDATION
                                               ROLE
                                 PASSIVE                   ACTIVE
 According to the “tipping point”

Three factors making things go viral

    The law of few: the connector; the maven and the salesmen

    The stickiness factor

    The power of context
What is brand community?
   “Brand community is a specialized, non-
geographically bound community, based on
  a structured set of social relations among
                         admirers of a brand.”
  (ALBERT M. MUNIZ, JR. THOMAS C. O’GUINN, 2001)
Advantages of building a
brand community

              DIRECT BENEFIT                          INDIRECT BENEFIT



   Better insight and quicker             New
    feedback                                distribution/selling/customizing
                                            channel
   Competitive intelligence / market
    needs                                  Superior innovation/solutions

   Prepare launches/market                Galvanize employee/vendor
    introductions
                                           Organizational wide costumer-
   Runaway word of                         centricity
    mouth/evangelism

   Reduce customer support costs
Power of the community

          Among community members:

          91% believe community enables them to give candid feedback

          82% were more likely to recommend the company to others

          76% felt more positively about the company

          Community users remain customers 50% longer than non-
            community users. (AT&T, 2002)

          56% percent of online community members log in once a day or
            more (Annenberg, 2007)

          Customers report good experiences in forums more than twice as
            often as they do via calls or mail. (Jupiter, 2006)
    Categories of E-WORD-OF-MOUTH
    actions--John Eaton




   Viral marketing refers to the practice of a marketer creating an internet promotional vehicle to
    draw attention to a brand, most often in the form of an email or website address link that is
    distributed online by consumers.

   Brand community refers to a specific classification of a social network that revolves around a
    particular brand.
TWO MODELS OF INFLUENCE
normative influencing

Where recipient behavior is based on interpreting the
 information provided by the influencer as an implied
 expectation to confirm.

Underlying mechanism influencing actions are:

Identification and compliance

Informational influencing

Where recipient behavior is based on a personal
 evaluation f the information provided by the influencer.

Underlying mechanism influencing actions are:

Internalization
other underlying theories

   The law of the social few

   Social information processing theory

   Social presence theories

   The 50-20-10-1 rule

50% of people will passively participate

20% will actively and frequently consume/trade content

10% chime in opinion/rate and vote on content

1%develop and innovate content
Conclusion and some
questions for discussion

   E-word-of mouth is more effective and persuasive than traditional
    marketing

   There are disadvantages too:

    negative e-word of mouth can snow ball more quickly than positive e-
    word-of-mouth

Is e-WOM marketing better for creating awareness for a brand or for
   inducing consumers toward purchase?

   If you are the salesman for the “smart“ car, when consider social media
    marketing, will you prefer viral marketing to branded community strategy?
    And why?

   In general, what is the context in which these strategies work and the
    characteristics of products and services for which they are most
    effective?|