Strategic Business LeadershipExecutive Education Seminar

Bringing ‘Market’ into Marketing:Value Creation and Social Media

Raj AgnihotriApril 2014

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• Industrial Experience in Sales & Marketing with Start-ups to Major Corporations

• Author of Sales-Force Automation and CRM Implementation

• James Comer Award for the Best Contribution to Sales Management Theory

• Excellence in Teaching Award from Marketing Management Association

Dr. Raj AgnihotriAssistant Professor and

Chair of Marketing Department

Director of Research at the Schey Sales Centre

3

2

1Understanding the current market environment

Exploring social media as a business tool

Outlining a social media startegy

Discussiontopics

Today’s Agenda

What Would You Do?

“A global bank executive recently described to us a challenge for our times. It turns out that a customer who normally would qualify for the lowest level of service has an impressive 100,000 followers on Twitter. The bank isn’t doing much yet with social media and has no formula for adapting it to particular customers, but the executive still wondered whether the customer’s “influence” might merit special treatment.”

From: What’s Your Social Media Strategy?Wilson and colleagues (2011), Harvard Business Review

CustomerValue

Organization’sSocial Capital

Social Capital… What?

Communication to maintain Social Structure

Communication to Build & Maintain Trust

Communication to Share the Vision

Social MediaUse

(Kothandaraman, Agnihotri, and Kashyap 2011)

Communication-Social Capital Link

Now the Question Becomes…

How to facilitate this link?

Organization ConsumerProductt

Organization Productt+1Consumer

Value Co-Creation

Value Co-Creation

Market Evolution

CollaboratorCollaborator

Collaborator Collaborator

(Agnihotri and Hu 2009)

Co-Evolution

EXAMPLES: http://cloroxconnects.com/pages/homehttp://mystarbucksidea.force.com/

A Strategic Approach

(From: Agnihotri et al. 2012)

InformationSharing

CustomerService

TrustBuilding

SOCIAL CONTENT ENABLER[Blogs, Micro-blogging (Twitter), Etc.]

SOCIAL NETWORK ENABLER[Networking Websites (Facebook, LinkedIn),

Online communities/ Discussion forums]

ORGANIZATION ACTIONS

Customer Perceived

Value

OrganizationPerceived

Value

Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content

Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections

VALUE CREATION

https://www-304.ibm.com/connections/blogs/

http://www.youtube.com/watch?feature=player_embedded&v=F5CF1FEm_oA#t=12

Work within your group/table and come up with the ‘social media marketing strategy’ for Ford Fiesta,that has potential to offer organizational and customer value.

Let’s Put Theory into Action

This is How They Did It

http://inside.flipboard.com/2013/09/27/on-the-red-couch-with-fords-social-media-chief-scott-monty/

Target Market

Generation Y/ Millennial

Find

a fit

Empty Nesters/Baby Boomers

Content Creators Content Consumers

Different language Different mix of media

Different ratio of visuals and textBlog

Social Revenue

http://fiestamovement.com/

• Ford Fiesta Movement, a campaign to promote the Fiesta model

• Giving cars to 100 social “agents” and let them promote vehicle through Social Media

• All without spending a dollar on traditional media

Results of six month campaign - 4.3 million YouTube views - 500,000+ Flickr views- 3 million+ Twitter impression- 50,000 interested potential customers, 97% of

which don’t own a Ford currently.

How are you going to measure the ROI when implementing your Social Media Strategy?

ROI: commonly used metrics*

73%Customer Acquisition rate

*Gleansight: social media marketing, November 2010

Organizations can set milestones in terms of –i) Marketing efforts (e.g., number of tweets posted per week,

number of blogs written and followed, etc.) ii) Outcomes (e.g., number of leads generated through blogs)

Performance evaluation should include -iii) Objective (e.g., changes in service support costs) iv) Subjective criteria (e.g., number of referrals and/or positive

recommendations by existing customers through social networks)

86%Audience growth rate

-e.g., # of facebook fans, twitter followers, etc., per

week

77%Volume of relevant

posts/comments

81%Customer engagement rate

-e.g., # of click-thrus, registrations, etc., per week

73%Customer Acquisition rate

• Do your research before investing in SM

• Remember the ‘Market’ in marketing strategy

• Create value

….and finally

• Connect with people because nothing can

replace the - personal touch

Tips to Remember

Thank You and Good Luck!