Strategic Market Planning for Social Media Platforms

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Introduction

Over the past several years, social media marketing has been an addition to an increasing number of companies’ integrated marketing plans. Firms of all sizes are employing various platforms of this marketing tactic. At the most basic level, social media marketing enables conversations between firms and their customers, as opposed to traditional marketing methods where the firm directs the message. Businesses are beginning to realize that they cannot control these ongoing conversations, but rather, influence them. This trend has resulted in the growth of SocialCorps, “companies that are learning to take advantage of the power of social media to reshape their relationships with customers and other important audiences.” Popular social media sites visited by Internet users include: Facebook, Twitter, YouTube, MySpace, Wikipedia, Flickr, and Digg (Exhibit 1). Of those, the top four social sites used by marketers, in order of popularity, are: Twitter, Blogs, LinkedIn, and Facebook.

Becoming a SocialCorp allows a company to gain benefits that are otherwise limited with traditional forms of marketing. Such advantages include: unparalleled access to market research, enhanced brand awareness and perception, better engagement with all stakeholders, increased control over the company’s marketplace message, and a richer user experience. This paper will explain how various companies have used social media marketing differently to achieve these advantages.

Social networking websites are visited by three-quarters of all Internet users. With the growing popularity of social media usage, many companies believe Web 2.0 marketing is the future. As social media marketing gains headlines in companies’ strategic agendas, astonishing statistics are revealed about the use of this marketing tactic:

  • Dell estimates that through its various communication channels, the company has two billion “conversations” with customers every year.
  • 88% of marketers are using social media marketing for their business. Of these, 72% reported that they had been using social media marketing for a few months or less.
  • 79% of the Fortune 100 companies are present and listening, using at least of one of the main social platforms to communicate with their customers.
  • By 2011, online social media advertising in the U.S. will be approximately $2.5 billion.

From these statistics, it is evident that companies of all sizes are actively using different social platforms to reach their target segments. However, a shift of focus to social media marketing will bring substantial transformation to a company’s strategic planning process. As such, this paper will answer a question that companies should ask when engaging in social media marketing: will it be more beneficial to leverage publicly available social media platforms or to build a platform in-house? Will the choice differ between companies, and what are the benefits and risks of either solution?

Benefits of Leveraging Established Social Media Platforms

The advantages of using an established social media channel over one created in-house are lower production and maintenance costs, quick access to a large established user base, ease of use for the consumer and increased information credibility. Businesses create company-specific marketing campaigns on established social media channels to leverage these benefits in order to engage consumers, increase brand and product/service awareness, reduce customer support costs, and drive revenues.

The Ford Fiesta Movement Campaign

A successful social media marketing campaign which demonstrated the benefits of using established social media channels was the Fiesta Movement Campaign by Ford. Ford gave 100 participants Ford Fiestas for six months and asked them to complete a different “mission” every month. These “agents” delivered dinners from Meals on Wheels, eloped with the help of the Fiesta, and wrestled alligators among many other things. Agents were required to document their adventures on Youtube, Flickr, Facebook, and Twitter pages which Ford had created.

The Ford Fiesta Movement was considered an extremely successful social media campaign. Agents produced 700 videos which generated 6.5 million views. Photos taken by the agents have accumulated more than 670,000 views. The campaign prompted over 50,000 U.S. consumers to request more information about the car, 97% of which did not already own a Ford vehicle. In the first six days of sales, Ford sold 10,000 units.

First, using established social media channels allowed Ford to gain quick access to a large established user-base. Ford’s target market for its small European cars is Millennials, those born between 1979 and 1996. It is estimated that 75% of Millennials use social media sites and one in five have uploaded a video of themselves online. Ford therefore focused their efforts on the established social media sites, as a large majority of their target market is already using these sites. It was easier for Ford to leverage existing websites instead of working to direct consumers using an in-house social network.

Second, Ford was able to benefit from consumers who were already familiar with popular social media websites to build awareness. Ford hand-picked “agents” in their 20s who had already successfully built an online fan community of their own and who were able to craft a narrative. Instead of pitching the idea to agents as the means to a free car, agents were incented to create content for their own benefit to feed their current networks and build their own profiles. In the process, the agents contributed to building Fiesta’s brand by helping develop an image of glamour, uniqueness and excitement around the car.

Third, Ford created a sense of credibility by using external social media channels on which the content would be harder to control or modify. Ford took a huge risk by taking a “hands off” approach, telling agents to be completely truthful and agreeing not to edit or censor any information that was posted. This showed consumers that Ford cared about what they had to say which was particularly important at a time when consumers were not happy to be bailing out Amercian automotive companies. Allowing agents to freely express their opinions about the car also helped Ford to fix any reported problems or improve functionality based on the agents’ suggestions.

Key Takeaways

Ford used established social media channels to engage consumers and build brand awareness. Using Facebook, Flickr, Twitter and YouTube, Ford was able to gain quick access to its target market with consumers who were already users of these channels. Ford was also able to use specific consumers who were experts with these established channels to attract more viewers as well as raise awareness among the experts’ large base of followers. Finally, Ford established its credibility by allowing agents to post whatever they wanted. While Ford took a huge risk by agreeing not to edit the agents’ content, it ultimately worked in their favour.

Risks of Leveraging Established Social Media Platforms

Along with the many strengths of social marketing, there are also many risks that are associated with relying on third party platforms.  For one, companies that engage in this medium often experience lack of content control. Second, information gets spread too quickly due to the large user bases of established social media websites. Third, the effectiveness of conventional social media marketing is limited, due to the sheer volume of companies already utilizing this mechanism.

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Molson Coors Dorm Room Campaign

Molson Coors Brewing Company (Molson) is a classic example of how a company underestimated the negative consequences that are associated with traditional social media marketing mediums. Molson is Canada’s oldest brewery and the world’s fifth largest brewing company. Therefore, it is well-recognized within Canada and has a significant market share in the beer industry. In the past, Molson has experimented with blogs and a static corporate website, but has had very little social media presence overall. Recognizing that a large portion of their current target audience utilizes these mediums and wanting to catch up to its ...

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