Quiz 4: Managing Marketing Information to Gain Customer Insights

Briefly describe the marketing uses for each of the social media platforms and social media tools.

Undertaking marketing research to find out what background color works best in online ads is just one way Procter Gamble (P G) is ramping up its digital marketing campaign. These efforts aren't breaking the company's advertising budget either. P G wants to gradually reduce its advertising expenditures, saving as much as $1 billion, partly by emphasizing cost-efficient digital over pricey television ads and increasing digital's share of the company's overall marketing budget. The idea is to use social media, in particular, to build relationships with customers, so when they're making product choices in the store, they'll select P G as the brand they're most comfortable with, even if it isn't always the cheapest one. As technology and its marketing strategy both evolve, the company is making what it sees as a natural transition from search ads to banner ads and on to social media. For example, P G recently noticed online chatter about Pepto Bismol on weekend mornings, most likely from people who had overeaten the night before. After it launched a Facebook campaign touting the indigestion reliever whose sales had been relatively flat for several years, market share grew 11 percent. Another motivator for P G's move to digital is that members of its primary target audience, women 25 to 45, spend 14 percent more time on Facebook than other users-that usage added up to almost 500 minutes per person in one recent month. P G also works through Twitter and YouTube, creates product blogs, and has Facebook pages for all its major products, plus online advocacy campaigns on topics inspired by customer focus groups. The company's Facebook presence for its Secret deodorant, for example, addresses bullying among teen girls and helped launch the online "Mean Stinks" anti-bullying campaign, featuring Amber Riley of the TV hit Glee. Marketing for Secret has gone entirely digital, in fact. "These days, social media is an integral part of brand building," says the company's head of e-business. And what color works best on Facebook? P G discovered that orange "can have a dramatic impact on purchase intent," says its marketing director. QUESTIONS FOR CRITICAL THINKING 1. Do you agree with P G that online marketing will save money without hurting its brands in the marketplace? Why or why not? 2. What non-financial advantages of online marketing can P G try to achieve? How will these benefits help it increase market share?

Choose one of the following and describe how you think social media marketing could help strengthen its brand: a. J. Crew b. Nikon cameras c. Great Wolf Lodge resorts d. Nivea for Men skin care e. Ellie Goulding (singer and songwriter)

The Ethics Resource Center recently conducted a study to explore the relationship between workplace ethics and social media. The report noted that active social networkers find themselves at higher risk for observing misconduct on the job. According to the findings: • 72 percent of social networkers observed misconduct by others in the workplace during the previous 12 months (compared with 54 percent of other workers) • 56 percent of social networkers experienced retaliation after reporting an incident (compared with 18 percent of other workers) • 42 percent of social networkers felt pressure to compromise their own standards (compared with 11 percent of other workers)66 Consider these findings in light of your own experiences in the workplace or college setting. Do these findings surprise you? Why or why not? How might you apply what you have learned about social media and social media marketing from this chapter to your own workplace ethics?

Visit the app store. Using your computer or smartphone, visit an app store (Apple, Google, Amazon, Samsung, or the like) and browse through the various apps available. Which appeal to you and which do not? Why? Write a thumbnail review for four apps (two positive and two negative) explaining your viewpoint as a consumer.

For a week, keep a log on your social media use as a consumer. Which sites and tools do you frequent? Why? How much time do you spend on each one daily? Weekly? Do you interact with social media marketing efforts? Create a profile of yourself as a consumer, describing preferences, influencers, and any other factors that are relevant to your online interaction with SMM.

Zappos, an Amazon company, proudly displays its marketing slogan on the side of every box that contains a shipment of shoes, clothes, and handbags: "Powered by service." But the company could just as easily adopt a slogan that says, "Connected with customers." That's because communication-connecting with customers-is an integral part of the company's core values and its reputation for customer service. Recently, social media marketing has become a strong component of Zappos' drive to connect. "Social media is really a communication tool," observes Robert Richman, product manager at Zappos. "We want to be available to people wherever they are." Rob Siefker, director of the customer loyalty team at Zappos, explains the company's view of social media further. "When people feel marketed to, they know there's a reason for it. But when they feel there's a connection, and it's something more human, I think that's more powerful-and that's our approach." Zappos uses social-networking sites Facebook and Twitter to interact rapidly with customers, choosing these outlets because that's where the people are. "If people are gathering at a site, we want to be there and be open to conversation," says Robert Richman. "If someone is reaching out to us, we want to be there to respond. It's not so much a strategy for reaching them as engaging them in conversation- about anything." It's a two-way street: Through these conversations, not only does Zappos learn about its customers' needs and preferences, but consumers also learn something about the retailer and its employees. On Facebook and Twitter, the customer loyalty team can monitor any product or service issues that customers might be having. If a customer posts a complaint about slow delivery or mistakes in a shipment, the team acts quickly to correct the situation. If a customer praises the company for any reason-fast delivery time, great selection, friendly customer representatives-the team is able to thank that person directly. A customer might ask if Zappos plans to carry a certain line of shoes for an upcoming season or just post a comment like, "Once again, you exceeded my expectations!" Either way, Zappos staff members are on hand to reply immediately. Zappos also posts videos and other images of events and products for consumers to watch and comment upon. Siefker observes that people sometimes don't expect to interact with companies on Twitter-they reserve it for quick messages to friends. But microblogging renders the company more personal or human. Siefker believes that tweeting with consumers helps them realize that Zappos is staffed by friendly, quirky, and intelligent workers. "I think that Twitter and other social media have enabled us to get closer to people on a personal level, and that's very valuable for us," he notes. Twitter also serves another marketing purpose for Zappos: discovery. Zappos offers approximately 136,000 different products for sale, but consumers might not be aware of everything that is available to them. So Zappos marketers created a TweetWall to inform consumers of what their fellow customers are tweeting about. Visitors can browse the TweetWall image gallery, view product tweets from others, and add their own comments as well. "It creates a fun way to see what may be trending or what may just be the odd item we carry that's a fun conversation starter," explains Alice Han, creator of the TweetWall. At its website, consumers may sign up for various blogs ranging from "More Than Shoes" to "Fashion Culture" to "Wedding Blog." In fact, there are about 20 blogs to which fans may subscribe. Consumers might follow blogs on their favorite brands, such as Lilypond (handbags and luggage made from recycled and sustainable materials) and Wildfox Jewelry (an American line of jewelry inspired by fairy tales, daydreams, and vintage designs). Of course, they are encouraged to comment on any or all of the postings. Unlike other firms, Zappos does not have a formal policy for employee tweeting or other social media. Instead, its rules are based on the company's corporate culture and core values. The customer loyalty team receives no directive other than to interact with people and help them whenever possible-and have fun. "We don't want to overcomplicate it," explains Siefker. "We train our employees, we empower them, and we trust them." Questions for Critical Thinking 1. In your view, does Zappos use social media effectively to strengthen its brand? Why or why not? 2. Zappos does not have a formal policy about social networking in the workplace. What are the benefits of this decision? What might be the drawbacks?

What are the three essential features of social media marketing?

Log on to the Facebook, Tumblr, or Pinterest page of a company that you like or follow. What are people saying about the company, its goods and services, problems they would like solved, or new products they would like to see? How do they describe their experiences and their general views as consumers?

The Ethics Resource Center recently conducted a study to explore the relationship between workplace ethics and social media. The report noted that active social networkers find themselves at higher risk for observing misconduct on the job. According to the findings: • 72 percent of social networkers observed misconduct by others in the workplace during the previous 12 months (compared with 54 percent of other workers) • 56 percent of social networkers experienced retaliation after reporting an incident (compared with 18 percent of other workers) • 42 percent of social networkers felt pressure to compromise their own standards (compared with 11 percent of other workers)66 Consider these findings in light of your own experiences in the workplace or college setting. Using concepts from this chapter, outline the major points of a social media policy for your college or employer.

Emphasize the local. Some large companies are refocusing part of their social media marketing goals and strategies to target local communities and customers. Log on to the website of one of the following firms (or choose your own) to learn more about how the company is using social media marketing to connect with local consumers: www.walmart.com

With a classmate, select a television commercial or print ad for a product, such as an upcoming concert or theater production, a hybrid vehicle, a clothing retailer, pet food, or a line of low-fat snacks. Create a poster or brief PowerPoint presentation showing how you would transform this from a traditional marketing effort into social media marketing. Customize your plan for the targeted audience.

For what purposes do not-for-profit organizations turn to social media marketing?

When designing a social media marketing plan, marketers must be sure to select and use channels as they were intended-or risk difficulties. For each of the following, state your choice of channel type (social-networking site, microblog, bookmarking site, and so forth) and explain why. a. Discussion of product attributes b. Opinion survey c. Exchange of ideas for saving energy d. Personal stories e. Video contest featuring pets

Familiarize yourself with a new social media platform or tool. You are probably already a social media user-nowit's time to learn about a social media platform or tool with which you are not yet familiar. Choose a social media platform in which you are not a member, or a social media tool that you have not yet used. Learn as much as you can about your selection from its home page, online reviews, and news articles. Create a presentation outlining the features, benefits, and drawbacks of your choice-including your own view of its effectiveness as a vehicle for social media marketing.

With a classmate, choose one of the following brands (or select your own): a. Kashi cereals b. North Face clothing c. March of Dimes d. Sports Illustrated e. Chili's restaurants Create one item of content for a social media marketing effort for your brand, such as a blog or forum, a digital slide show, a short video, or an online contest. No matter which social media platform you choose, be sure to target your audience and invite them to interact.

Why is it important for the goals of a social media marketing campaign to be both clear and flexible?

Do you agree that companies should have formal, written policies regarding the use of social media by employees in the workplace? Why or why not?

Research a recent social media marketing crisis like the one described in the chapter between Green Day singer Billie Armstrong and Southwest Airlines (use a few keywords on a search engine to find examples). Describe the situation and how the company handled it. Was the company's response effective? Why or why not? If not, how would you have handled the situation?

How do social media marketers select a target audience?

How do you view the future of social media-and social media marketing? Write a description citing three or four trends or developments you think may evolve over the next decade.

Choose one of the social media marketing positions described in this chapter and research online several actual job descriptions for this position (or one like it). You may visit a job site such as CareerBuilder, Indeed, or LinkedIn-or log on to the website of a company that interests you and click on its careers section to look for SMM postings. When you have thoroughly familiarized yourself with the job description, list your current strengths and weaknesses as they relate to the job description- and your strategies for landing a job like this.

Who might participate in the social media interaction on behalf of a company? What strengths could each of these people contribute to the conversation?

Why must SMM content focus on the audience rather than the organization?

What is the purpose of monitoring and measuring the SMM campaign?

What are the four main features of a well-written corporate social media policy? Why should companies write such policies?

As you scan the list of types of positions in social media marketing, choose two for which you think you would be best suited. Explain the reasons for your choice.