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SOCIAL MEDIA Matti Helelä, Senior Lecturer Suvi Kalela, Senior Lecturer HAAGA-HELIA University of Applied Sciences BRAND CO-CREATION (© 2009 Matti Helelä) Think about co-creating the brand With stakeholders hand in hand Redefining the organization's mission Based on a new realistic vision 2 SOCIAL MEDIA REVOLUTION 3 MARKETING BEYOND CONTROL Fans, freaks, fakes and we others – marketing beyond control (Alf Rehn 2010) 4 CHATTER “There is no manager more powerful than consumption, nor, as a result, any factor more powerful – albeit indirect – in production than the chatter of individuals in their idle hours.” Gabriel Tarde (1843–1904) 5 SOCIAL MEDIA Electronic media where participants can produce, publish, control, critique, rank, and interact with oneline content. Social networks, blogs, micro-blogs, video sharing, bookmarking applications, wikis, forums, opinion sites. (Giannini, G. 2009) 6 SOCIAL NETWORK A Web-based community designed to promote interaction, discussion, and sharing of content among its users. Facebook, MySpace, etc. (Giannini, G. 2009) 7 TARDE AND WORD OF MOUTH Small is big (Alf Rehn 2010) 8 OK GO 9 Embedding allowed (against the principles of EMI) SHOULD THE COMPANIES BE INVOLVED? Fear of not being involved, when you should be Fear of being involved with nonsense, if you are there (Alf Rehn 2010) 10 WHAT IS SOCIAL MEDIA GOOD FOR? 11 SOCIAL MEDIA BRAND “Social media can strengthen the brand if it is strong in the first place.” (Titus Arce 2010) 12 WORD OF MOUTH Average person: 114 discussions daily Opinion leaders: 155 discussions 15% of discussions include commercial topics 60% of all adults regularly share their opinions about products and services with friends and family (Mikko Siukosaari 2010 / Drum Communications Inc.) 13 WOM VS VOM MARKETING Word of Mouth = Customers or potential customers discussing (about the brand) face to face, over the phone or on the Internet WOM marketing = systematic influence on WOM (Mikko Siukosaari 2010 / Drum Communications Inc.) 14 NATURAL OR BOUGHT WOM Natural WOM Bought WOM Based on compensation (Mikko Siukosaari 2010 / Drum Communications Inc.) 15 WHAT DOES THE CUSTOMER WANT? To be heard Interaction High-quality information Transparency and confidence Express their own opinion about products and services offered (Nieto Churruca and Rouhiainen 2010, 138) 16 NOT SO DIFFICULT Do more than you promise Start by promising less Be honest Don’t insist, don’t explain, and, above all, don’t lie (even a bit) Be bold Do something unusual, even once a year (Mikko Siukosaari 2010/ Drum Communications Inc.) 17 DO THIS Ask for help People will help you for free Ask for opinions People will explain for free Participate in the discussion Reply when asked Participate when they talk Clarify where, who and what 18 (Mikko Siukosaari 2010 / Drum Communications Inc.) 19 20 IMPORTANT In the past: Technology (steam engine / social media) Cultural change Now: Cultural change Technology Example: Artek is interested in people’s stories (Alf Rehn 2010) 21 EVERYONE HAS A WORD Every consumer is a critic (“This is how I was treated”) The company can no longer control its marketing communications Involve people Stories Atmosphere of caring (Alf Rehn 2010) 22 SOCIAL MEDIA AFFECTS HOW PEOPLE BEHAVE (1) People feel responsible for giving each other information about the pros and cons of services They expect company response to their ideas and feedback (2) Nothing remains secret The slightest doubt is checked and the information spreads (Tuomas Teinilä 2010) 23 SOCIAL MEDIA AFFECTS HOW PEOPLE BEHAVE (3) Social media is the CRM of service companies Social media follow-up, response and genuine communication with people is marketing to existing and potential customers Using social media in product development and measuring its success (4) Anything social must be open (Tuomas Teinilä 2010) 24 CHANGES IN CONTACTING (1) Bought media The role of paid information search channels is growing (2) Company’s own media Integration of customer-relationship and mass marketing (3) Partner media Co-branding Sharing communities (4) Earned media Content produced by consumers and experts Like a thermometer, not an advertising channel listening to and learning from the consumer (crowd sourcing) (Jani Halme 2010) 25 26 27 28 REVIEW SOCIETY What do people write about your company and brand? What does the community say about your company and brand? (Alf Rehn) 29 MEANINGFUL WORD OF MOUTH They (the public) define us, we don’t define them (Alf Rehn) 30 MACHO MARKETING Technology rules Macho garbage The logic is “The biggest is the best” winning, positioning, market share, penetration (Alf Rehn) 31 FEMINIZATION OF STRATEGY Caring (as opposed to controlling) Understanding the customers’ wishes and desires Aiming at partnership Allowing Softer strategy Example: EMI wanted to control the content OK Go had a softer, caring approach (Alf Rehn) 32 FROM MANAGEMENT TO FANAGEMENT Make it easy to be a fan People want to be fans Give the fans the tools to be a fan The fan becomes meaningful to your brand (Alf Rehn) 33 LADY GAGA Involve the fans in the creation of promotional material 34 BAKED IN Involving the fans in product/brand development (Alf Rehn) 35 TRANSPARENCY No censorship Creates trust The fans may respond and defend the company/brand: the fans are a resource (Alf Rehn) 36 LIVE WITH THE FANS Engage Equip Exit (Alf Rehn) 37 Visit Finland as the Challenger Brand of Travel Marketing Jaakko Lehtonen Director General, Finnish Tourist Board 38 THE FOUR CS Creative Technologically, academically and culturally attractive; architecture and design; with a touch of creative madness Contrasting Credible Cool Seasons, east/west, Efficient Nice, happening, cold/warm, midnight infrastructure, trendy, and refreshingly crisp . sun/winter darkness, services, safety and sauna/ice swimming . security, and technology. 39 SAMPLES OF PROMOTIONAL CAMPAIGNS 40 41 42 FINLAND 43 44 45 46 47 48 49 50 ENGAGE Weston Hotel beds Other hotel fish bowls / aquariums Small things matter (Alf Rehn) 51 EQUIP Give your fans the tools to create their stories (Alf Rehn) 52 EXIT Step out of the control Be brave Leave the communication where it happens anyway Don’t be afraid of what the fans are saying (Alf Rehn) 53 LOVING THE FREAKS Fan book in Facebook? Creating a page for anti fans? The chance to hate the company Who hates and who defends the company? Should the fans create the fan book? Involve the freaks (Alf Rehn) 54 MULTICHANNEL WORD OF MOUTH Cultural change Many channels Fans’ channel Anti fans’ channel The channel is a medium of its own, with its own genuine culture (Alf Rehn) 55 CHIEF CULTURAL OFFICER Marketing manager Chief Cultural Officer (Alf Rehn) 56 IMPORTANT The time of control is over Create a new world Involve (Lady GaGa) Feminize your strategy These are the keys to success. Enable the communication Make it possible to be a fan (Alf Rehn) 57 SELF-SEGMENTATION Customers segment themselves into communities, based on Common characteristics Passions Interests Needs Listen direct insights, product development guidance, shortcomings Participate in brand and other conversations (Nick Wreden) 58 PROSUMER Consumer Prosumer 59 FROM HOMO SAPIENS TO HOMO CONNECTUS (Teemu Arina) 60 (Teemu Arina) 61 FUTURE LEARNING In interaction Knowledge is not power Sharing the knowledge is power (Teemu Arina) 62 COLLABORATIVE CO-CREATION (Teemu Arina) 63 INTERACTIVE VALUE CREATION Complex value creation is not possible without interaction (Esko Kilpi) Products are discussions. (Teemu Arina) 64 SOCIAL MEDIA (©2010 Matti Helelä) I have an idea Of the social media It’s collaboration For interactive value creation Sharing knowledge is power Instead of holding the tower Involve your fans To build your brand 65 REDES SOCIALES (©2010 Matti Helelä) En las redes sociales Las interacciones virtuales Son colaboración Para crear valor Información no es poder El compartirla lo es Activa a los fans a construir La marca para subir 66 Social Business Plan in Seven Phases Listen Identify the audience Select channels Define objectives Prepare contents Participate Analyse the results (Global Marketing Strategies 2011) = Where are we? } } = Where to go? } ] = How to get there? ] = How to improve? 67 Participate Listen Converse Create value Motivate Create community (Global Marketing Strategies 2011) 68 HOW TO EDUCATE FUTURE TEACHERS? 69 CO-CREATE THE BRAND WITH YOUR FANS (© 2009 Matti Helelä) Target audience activation Is the main consideration Inspire the fans to live the brand Creating it with you hand in hand The brand is created in the customer’s mind Business is the right kind When you live the brand in everyday life And the brand is truthful in the customer’s eyes 70 SOURCES Arina, Teemu 2010. tarina.blogging.fi. Giannini, T. 2009. Marketing Public Relations. A Marketer’s Approach to Public Relations and Social Media. Pearson Education, Inc. Upper Saddle River, N.J. Global Marketing Strategies 2011. La Web de Empresa. http://www.webempresa20.com Halme Jani 2010. Kuinka kuokuttaa ja ylittää tehokkkaasti rajoja sosiaalisessa mediassa? Slide show at the Tehosekotin digital marketing seminar organised by ASML, the Finnish Direct Marketing Association, 21 September 2010. Helelä ,Matti 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kalela, Suvi 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kauhanen, Tuula 2009. Senior Lecturer. Haaga-Helia University of Applied Sciences. MarketingSherpa 2010. Social Media Marketing Benchmark Survey, Nov. 2009. Nieto Churruca, Ana and Rouhiainen Lasse. La Web de Empresa 2.0. Guía práctica para atraer visitas y conseguir clientes. Glogal Marketing Strategies, Madrid. Rehn, Alf 2010. www.alfrehn.com. Siukosaari, Mikko 2010 / Drum Communications Inc. Teinilä Tuomas. Service 2020. Slide show. Wreden, Nick 2009. The Promise of “Self-segmentation”. http://www.strategy-business.com/article/00004?gko=1d7b1. 71 THANK YOU Gracias Danke Kiitos 72