Slideshow 1

1. SOCIAL MEDIA AND
ITS ROLE IN MARKETING
Dr. Tracy Tuten

2. Drucker said “The purpose of a business is to create a customer.”
 Customers are created when they choose to exchange something of value
for the organization’s offer.
 What drives exchange? A need; a “job to be done.”
 This is the essence of a value proposition.
Organizations offer the market a solution to the need and deliver
the value proposition using resources and value chain processes.
The relationship is sustained by the profit formula
 Revenue streams, costs, margin

3. •Is there an unmet need in the market?
•Does the market have a “job to be
done”?
•What’s the solution?
•Is there a gap?
Market Opportunity?
•What value do we promise to deliver
to win customers?
•How must we position offer for
competitive advantage?
Value Proposition?
•What will it take to deliver?
•By what process (value chain)?
•Do we have the resources needed?
Resources and
Processes?
Revenue Sources Costs

4. LEARN MORE ABOUT
BUSINESS MODELS
 Reinventing the business model, Harvard
Business Review, 2008
 New business models in emerging markets,
Harvard Business Review, 2011
 How to write a great value proposition,
Hubspot
 What is the Jobs To Be Done Framework?

6. Source: http://revenuesandprofits.com/how-walmart-makes-money-understanding-walmart-business-model/

7. THE
BUSINESS MODEL CANVAS
 Planning tool for answering key questions
 Great template available here:
https://xtensio.com/how-to-create-a-
business-model-canvas/

8. What is Marketing?

9. “The management process which identifies, anticipates, and
supplies customer requirements efficiently and profitably”.
Chartered Institute of Marketing
“The process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create
exchange and satisfy individual and organisational objectives”.
AMA
“A social and managerial process by which individuals and
groups obtain what they need and want though creating and
exchanging products and value with each other.”
Kotler et al

10. Oxford English Dictionary – 1455
Marketing is -- To sell or bring to market

11. WHAT DO WE BRING TO MARKET? THE OFFER; 7 P – THE MARKETING MIX
Offer
Product
Place
Promotion
ProcessPeople
Presence
Price

12. Marketing is integral to all parts of the business model!
 Identifying market opportunities including underserved target markets,
unmet needs, jobs to be done
 Designing offers to meet these needs and serve the market (product,
distribution, promotion, people, process, presence, price)
 Winning customers by targeting market segments, positioning brand
to highlight value proposition and source of competitive advantage
(point of differentiation)
 Ensuring sustainability of business by ensuring pricing models create
necessary margins for profitability and growth and retaining customers
(CRM)

13. The CMO Survey highlighted these top marketing objectives. Note how they relate to the business
model elements and marketing’s role in the business model.

14. Can we achieve marketing objectives using social
media?
That’s social media marketing.

15. WHAT IS SOCIAL MEDIA MARKETING?
Social media marketing is the utilization of social media
technologies, channels, and software to create,
communicate, deliver, and exchange offerings that have
value for an organization’s stakeholders.
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16. According to Social Media Examiner’s Social Media Marketing Industry Report, organizations are using
social media marketing to achieve these marketing objectives.

18. 3 DETERMINING CHARACTERISTICS OF SM
Digital
Participatory
Shareable

19. SOCIAL MEDIA STATS
 Time to reach 50 million users: Radio - 38 years ; TV - 13 years; Internet - 4 years;
Facebook – 100 million in only 9 months
 More than 1/3 of Facebook users are in Asia-Pacific (only 13% in NA!).
 94% of companies use LinkedIn as their primary recruiting tool.
 Top YouTubers, like PewDiePie, earn millions of dollars each year.
 Millennials spend on average 6 hours,19 minutes/week on social networks.
 Only about 15% internet users worldwide use social media.
 Instagram averages 70 interactions per post per 1,000 users, while the other major
social networks average under 10.
 QQ, WeChat, and Qzone are more popular than Tumblr, Instagram, Twitter, and
Pinterest.
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20. Search for images online of “social media landscape” and you will
see cluttered graphics of brand logos, app icons, brand
objectives, and user activities
The goal is not to catalog but to have a framework to guide
strategic decisions

21. SOCIAL MEDIA VALUE CHAIN

22. THE INFRASTRUCTURE:
WEB 2.0 ESTABLISHED SM’S DEFINING CHARACTERISTICS
 Web as platform
 User participation/ user-generated content
 Crowdsourcing
 Network effects
 Scalability
 Perpetual beta
 Reputation economy
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23. CHANNELS/HOSTS
Just as CBS is a vehicle for the medium of television, Facebook is a vehicle of social.

24. SOCIAL SOFTWARE
Social software facilitates content
creation (e.g., Canva), communication
(e.g., Messenger), management (e.g.,
Wordpress), automation (e.g.,
Chatbots), etc.

25. DEVICES
We can engage in social media using many different devices. The device’s
capabilities and its social media use case are interdependent.

26. The Social Media Value Chain captures social media’s
 opportunities and limitations (what),
 channels hosting content and network interactions (where),
 social software (how), and
 devices (with).

27. THE ZONES OF
SOCIAL MEDIA
WHY do we use social media?
The Zones of Social Media explain why:
to commune with others and build relationships,
to publish and consume content,
to entertain and be entertained, and
to facilitate buying and selling in marketplaces.
These zones represent the strategic approaches for social media marketing.

28. WHAT’S NEXT?
 Chapter 2 focuses on segmentation and targeting. We segment markets
to identify attractive target markets. We profile those targets in order to
understand their motives and behaviors (i.e., buyer behavior) and use the
insights to make strategic marketing decisions. We do so as well for
SMM.
 Chapter 3 focuses on the group characteristics of social communities that
influence buyer behavior.
 Unit 1 sets the stage for creating social media marketing plans that will
successfully accomplish the chosen marketing objectives. This is the topic
of Unit 2, in which we cover the decisions and process for creating a
strategic social media marketing plan in Chapter 4 and the tactical
decisions underlying strategic planning and execution in Chapter 5.