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Hausman	
  and	
  Associates	
   1	
  
       Hausman	
  Marketing	
  Letter	
  
	
  




	
  
 

               I.       What	
  is	
  Social	
  Media	
  Marketing	
  
                                and	
  Why	
  YOU	
  Need	
  It?	
  
What	
  is	
  Social	
  Media	
  Marketing?	
  
Simply	
  put,	
  social	
  media	
  marketing	
  is	
  an	
  effort	
  to	
  support	
  your	
  brand	
  
using	
  one	
  or	
  more	
  social	
  networking	
  platforms.	
  	
  	
  
	
  
         “Social	
  media	
  marketing	
  consists	
  of	
  the	
  firm’s	
  efforts	
  to	
  
         create	
  content	
  on	
  various	
  social	
  networking	
  platforms.	
  	
  
         The	
  goal	
  is	
  to	
  encourage	
  users	
  to	
  engage	
  the	
  firm	
  on	
  
         these	
  platforms	
  and	
  share	
  its	
  messages	
  throughout	
  the	
  
         users’	
  own	
  social	
  network.”	
  
	
  
Social	
  media	
  experts	
  often	
  include	
  paid	
  advertising	
  on	
  social	
  networks	
  
(such	
  as	
  Facebook	
  sponsored	
  stories),	
  banner	
  advertising	
  on	
  other	
  
websites	
  (including	
  AdWords),	
  and	
  sites,	
  and	
  Affiliate	
  Marketing	
  as	
  part	
  
of	
  social	
  media	
  marketing.	
  	
  However,	
  these	
  tools	
  fit	
  equally	
  well	
  with	
  
notions	
  of	
  traditional	
  marketing	
  and	
  media.	
  	
  In	
  this	
  book,	
  for	
  the	
  most	
  
part,	
  we’ll	
  discuss	
  UNPAID	
  social	
  media	
  marketing	
  –	
  something	
  
Wharton	
  (School	
  of	
  Business)	
  calls	
  “earned	
  advertising”.	
  	
  In	
  Chapter	
  11,	
  
we’ll	
  discuss	
  paid	
  advertising	
  on	
  social	
  networks	
  briefly.	
  	
  Much	
  of	
  what	
  
we	
  present	
  in	
  terms	
  of	
  concepts	
  and	
  strategies	
  that	
  optimize	
  your	
  




                                                                                                                  2	
  
Hausman	
  and	
  Associates	
   3	
  
                                                                      Hausman	
  Marketing	
  Letter	
  
	
  
“earned	
  advertising”	
  also	
  work	
  effectively	
  with	
  these	
  paid	
  advertising	
  
tactics.	
  
	
  
Social	
  networks	
  provide	
  marketing	
  tools	
  to	
  build	
  one-­‐on-­‐one	
  
relationships	
  with	
  customers	
  and	
  create	
  a	
  community	
  of	
  loyal	
  
customers	
  who	
  continue	
  buying	
  your	
  brand	
  and	
  draw	
  in	
  future	
  
customers.	
  	
  Social	
  networks	
  also	
  motivate	
  people	
  to	
  share	
  their	
  great	
  
experiences	
  with	
  your	
  products	
  and	
  people	
  and	
  become	
  advocates	
  for	
  
your	
  brand.	
  	
  	
  
	
  
Social	
  media	
  marketing	
  gives	
  giant	
  multi-­‐nationals	
  all	
  the	
  advantages	
  of	
  
the	
  little	
  pushcart	
  guy	
  who	
  truly	
  knows	
  his	
  customers	
  and	
  shoots	
  the	
  
breeze	
  with	
  passers	
  by.	
  	
  It	
  turns	
  any	
  business	
  into	
  “Cheers”	
  where	
  
“everyone	
  knows	
  your	
  name”.	
  	
  
	
  
Social	
  media	
  marketing	
  is	
  much	
  more	
  than	
  just	
  Facebook,	
  although,	
  with	
  
nearly	
  1	
  billion	
  users,	
  Facebook	
  is	
  the	
  largest	
  social	
  platform.	
  	
  Facebook,	
  
Twitter,	
  and	
  LinkedIn	
  are	
  considered	
  the	
  top	
  3	
  social	
  platforms	
  (at	
  least	
  
at	
  the	
  time	
  this	
  book	
  was	
  written).	
  	
  But,	
  new	
  social	
  networks	
  arrive	
  on	
  
the	
  digital	
  landscape	
  every	
  week	
  –	
  including	
  Google+	
  and	
  Pinterest,	
  
which	
  gained	
  followers	
  more	
  quickly	
  than	
  comparable	
  platforms.	
  	
  Other	
  
common	
  platforms	
  include:	
  YouTube	
  (for	
  video-­‐sharing),	
  Instagram	
  
(photo-­‐sharing),	
  Foursquare	
  (a	
  location-­‐based	
  social	
  platform),	
  Reddit	
  
(a	
  social	
  bookmarking	
  platform),	
  and	
  many	
  more.	
  	
  In	
  fact,	
  there	
  are	
  
probably	
  hundreds,	
  maybe	
  even	
  thousands,	
  of	
  social	
  platforms.	
  	
  Some	
  
are	
  specialized	
  for	
  specific	
  types	
  of	
  content,	
  like	
  YouTube	
  is	
  for	
  video,	
  

	
  
others	
  are	
  specialized	
  to	
  a	
  specific	
  demographic,	
  such	
  as	
  Mixi	
  for	
  
Japanese.	
  
	
  
More	
  than	
  300	
  million	
  people	
  spend	
  at	
  least	
  one	
  hour	
  a	
  day	
  on	
  
Facebook,	
  approximately	
  200	
  million	
  people	
  are	
  active	
  on	
  Twitter,	
  and	
  
100	
  million	
  use	
  LinkedIn1.	
  	
  The	
  most	
  active	
  social	
  media	
  users	
  are	
  18-­‐	
  to	
  
34-­‐year-­‐olds	
  (82%)	
  and	
  women	
  (78%,	
  vs.	
  66%	
  of	
  men),	
  according	
  to	
  a	
  
survey	
  by	
  Netpop	
  Research2.	
  However,	
  according	
  to	
  CBS,	
  80%	
  of	
  baby	
  
boomers	
  are	
  online;	
  mostly	
  on	
  Facebook3.	
  	
  Socially	
  savvy	
  consumers	
  
likely	
  employ	
  multiple	
  social	
  networks,	
  so	
  these	
  numbers	
  do	
  not	
  reflect	
  
unique	
  users,	
  but	
  the	
  numbers	
  are	
  still	
  staggering2.	
  	
  By	
  2014,	
  65.8	
  
percent	
  of	
  Internet	
  users	
  are	
  likely	
  to	
  become	
  regular	
  social	
  network	
  
users4.	
  
	
  
But,	
  don’t	
  forget	
  blogging	
  (a	
  blog	
  is	
  short	
  for	
  weblog).	
  	
  Blogs	
  are	
  one	
  of	
  
the	
  earliest	
  forms	
  of	
  social	
  networks,	
  dating	
  from	
  19945.	
  Originally	
  
consisting	
  of	
  online	
  diaries	
  with	
  limited	
  appeal,	
  except	
  for	
  those	
  run	
  by	
  
journalists,	
  today’s	
  blogs	
  are	
  powerful	
  tools	
  for	
  branding,	
  creating	
  
engagement,	
  and	
  generating	
  revenue	
  through	
  online	
  advertising.	
  	
  	
  We’ll	
  
see	
  later	
  why	
  nearly	
  90%	
  of	
  firms	
  plan	
  to	
  increase	
  their	
  usage	
  of	
  blogs	
  
in	
  the	
  future6.	
  
	
  
Blogging	
  software	
  makes	
  it	
  incredibly	
  easy	
  for	
  folks	
  with	
  limited	
  
technical	
  ability	
  and	
  NO	
  programming	
  knowledge	
  to	
  create	
  
attractive	
  and	
  effective	
  websites.	
  	
  Content	
  management	
  systems	
  
such	
  as	
  WordPress	
  (my	
  personal	
  favorite),	
  Drupal,	
  and	
  Joomla	
  



                                                                                                                           4	
  
Hausman	
  and	
  Associates	
   5	
  
                                                                                    Hausman	
  Marketing	
  Letter	
  
	
  
allow	
  users,	
  with	
  a	
  little	
  effort	
  and	
  practice,	
  to	
  create	
  professional-­
looking	
  websites.	
  
	
  
But,	
  more	
  than	
  these	
  tools	
  and	
  tactics,	
  social	
  media	
  marketing	
  is	
  a	
  
paradigm	
  shift	
  from	
  traditional	
  marketing.	
  	
  Engagement	
  is	
  the	
  
mantra	
  of	
  this	
  new	
  paradigm	
  and	
  gifting	
  is	
  its	
  currency.	
  	
  Let’s	
  take	
  a	
  
look	
  at	
  how	
  new	
  media	
  differs	
  from	
  traditional	
  media:	
  
	
  
	
        	
           New	
  Media	
             	
  	
  	
  	
  	
  	
   	
      Traditional	
  Media	
  
           Two-­‐way	
  conversation	
                                              One-­‐way	
  conversation	
  
                     Open	
  system	
  	
                                                Closed	
  system	
  
                      Transparent	
                                                           Opaque	
  
            One-­‐on-­‐one	
  marketing	
                                               Mass	
  marketing	
  
                       About	
  you	
                                                       About	
  ME	
  
 Brand	
  and	
  User-­‐generated	
  Content	
                                       Professional	
  content	
  
                  Authentic	
  content	
                                                Polished	
  content	
  
                    FREE	
  platform	
                                                    Paid	
  platform	
  
                 Metric:	
  Engagement	
                                          Metric:	
  Reach/	
  frequency	
  
        Actors:	
  Users/	
  Influencers	
                                            Actors/	
  Celebrities	
  
       Community	
  decision-­‐making	
                                           Economic	
  decision-­‐making	
  
       Unstructured	
  communication	
                                            Controlled	
  communication	
  
                  Real	
  time	
  creation	
                                      Pre-­‐produced/	
  scheduled	
  
                 Bottom-­‐up	
  strategy	
                                            Top-­‐down	
  strategy	
  
                  Informal	
  language	
                                                Formal	
  language	
  
                 Active	
  involvement	
                                             Passive	
  involvement	
  



	
  
 
	
  

Why	
  Social	
  Media	
  Marketing?	
  
Not	
  every	
  firm	
  chooses	
  social	
  media	
  as	
  a	
  means	
  to	
  market	
  their	
  brands.	
  	
  
For	
  instance,	
  Apple	
  Computers	
  doesn’t	
  own	
  any	
  social	
  media	
  territory.	
  	
  
OK,	
  so	
  there’s	
  a	
  little	
  Facebook	
  FanPage,	
  but	
  Apple,	
  Inc	
  almost	
  NEVER	
  
posts	
  anything	
  or	
  responds	
  to	
  posts	
  there	
  –	
  it’s	
  not	
  even	
  clear	
  if	
  this	
  is	
  
really	
  owned	
  by	
  Apple.	
  	
  You	
  certainly	
  don’t	
  see	
  any	
  social	
  media	
  icons	
  
listed	
  on	
  Apple’s	
  website.	
  	
  No	
  obligatory:	
  “follow	
  us”	
  on	
  Twitter	
  or	
  
Facebook	
  in	
  their	
  advertising	
  or	
  packaging.	
  	
  Some	
  may	
  find	
  this	
  
shocking	
  considering	
  Apple’s	
  reputation	
  as	
  a	
  technology	
  innovator	
  and	
  
the	
  darling	
  of	
  the	
  social	
  media	
  generation.	
  	
  I	
  mean,	
  Apple	
  created	
  an	
  
early	
  version	
  of	
  social	
  sharing	
  with	
  iTunes.	
  
	
  
But,	
  knowing	
  Steve	
  Jobs,	
  Apple’s	
  co-­‐founder,	
  it’s	
  not	
  surprising	
  he	
  liked	
  
to	
  control	
  the	
  conversation	
  about	
  his	
  brand7.	
  	
  Apple	
  encourages	
  
consumers	
  to	
  interact	
  –	
  with	
  the	
  forums	
  on	
  their	
  website,	
  not	
  in	
  the	
  
free-­‐for-­‐all	
  of	
  social	
  networks.	
  	
  Through	
  its	
  forums,	
  Apple	
  CONTROLS	
  
the	
  conversation	
  and	
  conscientious	
  moderators	
  remove	
  posts	
  that	
  
conflict	
  with	
  Apple’s	
  view	
  of	
  their	
  brand.	
  
	
  
Other	
  firms,	
  big	
  and	
  small,	
  find	
  it	
  harder	
  to	
  avoid	
  social	
  media	
  –	
  
including	
  iconic	
  brands	
  like	
  Coke	
  and	
  Starbucks.	
  	
  Ford	
  recently	
  
reintroduced	
  its	
  Mustang	
  using	
  a	
  social	
  app	
  allowing	
  users	
  to	
  customize	
  
their	
  own	
  version	
  of	
  a	
  Mustang.	
  	
  And	
  this	
  tactic	
  was	
  a	
  resounding	
  




                                                                                                                           6	
  
Hausman	
  and	
  Associates	
   7	
  
                                                                    Hausman	
  Marketing	
  Letter	
  
	
  
success.	
  	
  Facebook	
  “Likes”	
  nearly	
  doubled	
  on	
  the	
  Mustang	
  FanPage	
  in	
  
just	
  a	
  few	
  months8.	
  
	
  
As	
  you	
  can	
  see	
  from	
  the	
  Ford	
  example,	
  firms	
  see	
  social	
  media	
  marketing	
  
as	
  a	
  valuable	
  tool	
  for	
  marketing	
  their	
  brands.	
  	
  For	
  instance,	
  Social	
  Media	
  
Examiner	
  found	
  83%	
  of	
  the	
  nearly	
  4000	
  marketers	
  surveyed	
  believe	
  
social	
  media	
  marketing	
  is	
  important	
  for	
  their	
  business9.	
  	
  Many	
  
marketers	
  plan	
  to	
  increase	
  their	
  use	
  of	
  and	
  budget	
  for	
  social	
  media	
  
marketing.	
  	
  In	
  a	
  recent	
  report	
  from	
  Awareness,	
  marketing	
  managers	
  
report	
  use	
  of	
  several	
  social	
  media	
  platforms	
  including	
  87%	
  using	
  
Facebook,	
  86%	
  using	
  Twitter,	
  and	
  76%	
  using	
  LinkedIn6.	
  	
  Moreover,	
  
experienced	
  social	
  media	
  managers	
  plan	
  to	
  increase	
  their	
  use	
  of	
  various	
  
forms	
  of	
  social	
  media	
  beyond	
  these	
  3	
  major	
  platforms	
  –	
  91%	
  plan	
  to	
  
increase	
  use	
  of	
  blogs6.	
  
	
  
In	
  addition	
  to	
  vast	
  numbers,	
  social	
  networks	
  appeal	
  to	
  firms	
  because	
  
they	
  embed	
  commercial	
  actions	
  within	
  a	
  community10.	
  Thus,	
  social	
  
media	
  reaches	
  organizational	
  goals	
  by	
  employing	
  “creative	
  and	
  
communications	
  marketing	
  aspects	
  to	
  enliven	
  ideas,	
  unite	
  communities,	
  
and	
  amplify	
  stories”11.	
  Blending	
  commercial	
  and	
  non-­‐commercial	
  
expression	
  reflects	
  the	
  reality	
  that	
  purchase	
  behavior	
  “is	
  part	
  of	
  a	
  social	
  
process....	
  it	
  involves	
  not	
  only	
  a	
  one-­‐to-­‐one	
  interaction	
  between	
  the	
  
company	
  and	
  the	
  customer,	
  but	
  also	
  many	
  exchanges	
  of	
  information	
  and	
  
influence	
  among	
  the	
  people	
  who	
  surround	
  the	
  customer."12.	
  Large	
  
numbers	
  of	
  consumers	
  use	
  social	
  networks	
  as	
  a	
  major	
  source	
  of	
  this	
  
information	
  and	
  influence.	
  	
  

	
  
 
Additional	
  factors	
  argue	
  for	
  corporate	
  use	
  of	
  social	
  media.	
  	
  One	
  study	
  
finds,	
  for	
  instance,	
  consumers	
  are	
  more	
  satisfied	
  with	
  retailers’	
  
Facebook	
  pages	
  than	
  they	
  are	
  with	
  the	
  retailer’s	
  websites13.	
  	
  Declines	
  in	
  
the	
  effectiveness	
  of	
  alternative	
  communicative	
  channels,	
  such	
  as	
  
television,	
  also	
  make	
  social	
  media	
  an	
  attractive	
  option14.	
  	
  Disruptive,	
  
self-­‐centered	
  conversations	
  marketers	
  commonly	
  employ	
  in	
  traditional	
  
media	
  are	
  not	
  effective	
  in	
  social	
  media	
  and	
  marketers	
  must	
  find	
  new	
  
ways	
  to	
  embed	
  messages	
  into	
  naturally-­‐occurring	
  conversations15.	
  
Rather	
  than	
  broadcasting	
  marketing	
  messages	
  to	
  an	
  increasingly	
  
indifferent,	
  even	
  resentful,	
  audience	
  jaded	
  by	
  the	
  2,000-­‐plus	
  messages	
  
the	
  average	
  American	
  reportedly	
  see	
  every	
  day,	
  marketers	
  should	
  
participate	
  in,	
  organize,	
  and	
  encourage	
  social	
  networks	
  to	
  which	
  people	
  
want	
  to	
  belong.	
  Rather	
  than	
  talking	
  at	
  customers,	
  marketers	
  should	
  talk	
  
with	
  them16.	
  
	
  
The	
  top	
  3	
  benefits	
  marketers	
  find	
  from	
  using	
  social	
  media	
  marketing	
  
are:	
  1)	
  building	
  brand	
  awareness;	
  2)	
  driving	
  traffic	
  to	
  their	
  websites	
  and	
  
physical	
  stores,	
  and	
  3)	
  improved	
  customer	
  insights6.	
  	
  Although	
  we’ll	
  talk	
  
about	
  each	
  of	
  these	
  elements	
  in	
  more	
  depth	
  later	
  in	
  the	
  book,	
  let’s	
  take	
  a	
  
look	
  at	
  each	
  benefit	
  briefly	
  now.	
  
	
  
Building	
  Brand	
  Awareness	
  
You	
  know	
  the	
  old	
  saying:	
  “Build	
  a	
  better	
  mousetrap	
  and	
  the	
  world	
  will	
  
beat	
  a	
  path	
  to	
  your	
  door”	
  –	
  well	
  that	
  only	
  works	
  if	
  people	
  1)	
  know	
  about	
  




                                                                                                                      8	
  
Hausman	
  and	
  Associates	
   9	
  
                                                                        Hausman	
  Marketing	
  Letter	
  
	
  
your	
  mousetrap	
  and	
  2)	
  believe	
  it’s	
  better.	
  	
  Otherwise,	
  the	
  path	
  to	
  your	
  
door	
  will	
  be	
  pretty	
  overgrown.	
  
	
  
Traditional	
  media	
  actually	
  does	
  a	
  pretty	
  good	
  job	
  of	
  building	
  brand	
  
awareness	
  because	
  it	
  reaches	
  millions	
  of	
  people	
  with	
  memorable	
  
messages	
  and	
  catchy	
  jingles.	
  	
  But,	
  social	
  media	
  marketing	
  builds	
  a	
  
DEEPER	
  awareness	
  of	
  your	
  brand.	
  	
  Now,	
  instead	
  of	
  just	
  remembering	
  
your	
  brand	
  name	
  and,	
  maybe,	
  a	
  few	
  factoids	
  about	
  your	
  brand,	
  social	
  
media	
  marketing	
  encourages	
  consumers	
  to	
  develop	
  a	
  more	
  connected	
  
set	
  of	
  attitudes	
  related	
  to	
  your	
  brand.	
  	
  Instead	
  of	
  just	
  hoping	
  they’ll	
  get	
  
warm	
  fuzziest	
  about	
  your	
  brand	
  because	
  they	
  like	
  the	
  celebrity	
  
endorsing	
  your	
  brand,	
  social	
  media	
  uses	
  your	
  friends	
  to	
  endorse	
  the	
  
brand.	
  	
  Now,	
  you	
  not	
  only	
  know	
  about	
  the	
  brand,	
  but	
  you	
  know	
  what	
  
your	
  social	
  network	
  thinks	
  about	
  it,	
  which	
  increases	
  the	
  likelihood	
  you’ll	
  
buy	
  the	
  brand.	
  	
  You	
  begin	
  to	
  see	
  the	
  brand	
  as	
  another	
  friend	
  and,	
  when	
  
you	
  like	
  the	
  brand,	
  it	
  even	
  shows	
  up	
  in	
  your	
  newsfeed	
  just	
  like	
  other	
  
friends.	
  	
  With	
  social	
  media	
  marketing	
  you	
  not	
  only	
  develop	
  an	
  attitude	
  
toward	
  the	
  brand,	
  you	
  develop	
  “feelings”	
  for	
  the	
  brand.	
  
	
  




	
  
Driving	
  Traffic	
  


	
  
Alright,	
  I	
  don’t	
  want	
  to	
  get	
  into	
  too	
  much	
  of	
  this	
  now	
  (you’ll	
  get	
  a	
  lot	
  
more	
  of	
  this	
  in	
  Chapter	
  9),	
  but	
  social	
  media	
  marketing	
  drives	
  a	
  lot	
  of	
  
traffic	
  to	
  your	
  website	
  and	
  to	
  your	
  brick	
  and	
  mortar	
  store.	
  	
  Increased	
  
traffic	
  comes	
  through	
  2	
  related	
  channels	
  –	
  SEO	
  and	
  Customer	
  Insights.	
  	
  	
  
	
  
SEO	
  
OK,	
  pretend	
  you’re	
  an	
  average	
  user	
  looking	
  for	
  information	
  online.	
  	
  
First,	
  you	
  type	
  your	
  search	
  term	
  (keyword)	
  into	
  the	
  Google	
  Search	
  
Engine	
  (or	
  Bing	
  or	
  Yahoo,	
  etc).	
  	
  Google	
  returns	
  links	
  to	
  websites	
  that	
  
match	
  your	
  search	
  –	
  or	
  SERPs,	
  which	
  is	
  an	
  acronym	
  for	
  Search	
  Engine	
  
Results	
  Page.	
  	
  If	
  you’re	
  the	
  average	
  user,	
  you’ll	
  start	
  exploring	
  links	
  near	
  
the	
  top	
  of	
  the	
  SERPs	
  and	
  you’re	
  unlikely	
  to	
  go	
  beyond	
  the	
  first	
  page	
  or	
  
so	
  in	
  the	
  results.	
  	
  	
  
	
  
If	
  you’re	
  a	
  firm,	
  you	
  want	
  to	
  be	
  near	
  the	
  top	
  of	
  the	
  search	
  results	
  
because	
  you	
  know	
  you’ll	
  get	
  more	
  traffic	
  that	
  way.	
  	
  According	
  to	
  Optify,	
  
you’ll	
  get	
  over	
  35%	
  of	
  the	
  search	
  traffic	
  when	
  you’re	
  in	
  the	
  first	
  position	
  
in	
  the	
  SERPs,	
  but	
  only	
  about	
  12%	
  of	
  the	
  traffic	
  for	
  a	
  2nd	
  place	
  finish.	
  	
  By	
  
position	
  10,	
  you’ll	
  only	
  get	
  about	
  2%	
  of	
  the	
  traffic	
  visiting	
  your	
  site17.	
  
	
  
Google	
  (and	
  Bing	
  and	
  Yahoo)	
  use	
  a	
  complex	
  algorithm	
  (that	
  changes	
  
frequently)	
  to	
  determine	
  where	
  your	
  site	
  shows	
  up	
  in	
  the	
  SERPs.	
  	
  And,	
  
social	
  media	
  marketing	
  helps	
  your	
  site	
  rank	
  higher	
  in	
  2	
  ways.	
  	
  First,	
  the	
  
more	
  social	
  media	
  interest	
  you	
  generate	
  the	
  higher	
  you’ll	
  rank.	
  	
  Second,	
  
the	
  more	
  you	
  and	
  your	
  friends	
  engage	
  with	
  the	
  brand,	
  the	
  more	
  higher	
  
Google	
  will	
  rank	
  the	
  site	
  in	
  YOUR	
  results	
  –	
  see	
  an	
  interesting	
  thing	
  is	
  



                                                                                                                            10	
  
Hausman	
  and	
  Associates	
   11	
  
                                                                       Hausman	
  Marketing	
  Letter	
  
	
  
that	
  not	
  everyone	
  will	
  see	
  the	
  same	
  SERPs.	
  	
  SERPs	
  are	
  individualized	
  to	
  
ensure	
  YOU	
  get	
  the	
  most	
  relevant	
  links	
  possible,	
  so	
  they’re	
  customized	
  
to	
  what	
  Google	
  knows	
  about	
  your	
  online	
  activity.	
  
	
  
Improving	
  Customer	
  Insights	
  
Academic	
  readers	
  and	
  those	
  already	
  engaged	
  in	
  market	
  research	
  
probably	
  already	
  recognize	
  the	
  value	
  of	
  all	
  the	
  data	
  consumers	
  share	
  
about	
  themselves	
  on	
  social	
  platforms.	
  	
  But,	
  the	
  average	
  social	
  media	
  
marketer	
  probably	
  hasn’t	
  explored	
  this	
  data	
  deeply.	
  
	
  
Using	
  sophisticated	
  ethnographic	
  tools	
  and	
  software	
  such	
  as	
  nVivo,	
  
SPSS	
  Text	
  Analysis	
  Software,	
  and	
  HyperRESEARCH,	
  firms	
  can	
  
understand	
  not	
  only	
  consumer	
  sentiment	
  about	
  the	
  brand,	
  but	
  elements	
  
of	
  lifestyle,	
  unmet	
  needs,	
  and	
  other	
  critical	
  information	
  that	
  allows	
  the	
  
firm	
  to	
  develop	
  new	
  offerings,	
  maximize	
  the	
  consumer	
  benefit	
  of	
  
existing	
  offerings,	
  position	
  brands,	
  and	
  drive	
  consumer	
  demand	
  for	
  
their	
  brands.	
  
	
  
Although	
  developing	
  consumer	
  insights	
  is	
  a	
  major	
  benefit	
  of	
  social	
  
media	
  marketing,	
  details	
  go	
  well	
  beyond	
  the	
  scope	
  of	
  this	
  book.	
  	
  I’ll	
  list	
  
some	
  resources	
  to	
  learn	
  more	
  about	
  developing	
  customer	
  insights	
  after	
  
the	
  references	
  to	
  this	
  chapter.	
  
	
  
Other	
  Major	
  Benefits	
  of	
  Social	
  Media	
  Marketing	
  




	
  
Here	
  are	
  a	
  few	
  more	
  reasons	
  why	
  your	
  firm	
  should	
  consider	
  social	
  
media	
  marketing:	
  
	
  
	
  
	
  
	
  
1.	
  COST	
  
Social	
  media	
  marketing	
  is	
  much	
  more	
  cost	
  effective	
  than	
  
traditional	
  advertising.	
  	
  In	
  fact,	
  many	
  so-­called	
  social	
  media	
  gurus	
  
contend	
  social	
  media	
  levels	
  the	
  playing	
  field	
  for	
  small	
  businesses	
  
because	
  it’s	
  free.	
  	
  Well,	
  that’s	
  not	
  exactly	
  true,	
  but	
  it’s	
  sure	
  cheaper	
  
than	
  a	
  Super	
  Bowl	
  ad	
  –	
  at	
  over	
  $3	
  million	
  for	
  a	
  30	
  second	
  spot.	
  
	
  
To	
  see	
  the	
  cost	
  effectiveness	
  of	
  social	
  media	
  advertising,	
  let’s	
  look	
  at	
  a	
  
little	
  example	
  of	
  how	
  social	
  media	
  spreads	
  a	
  message	
  compared	
  with	
  
traditional	
  media.	
  




                                                                                                       	
  



                                                                                                                 12	
  
Hausman	
  and	
  Associates	
   13	
  
                                                                        Hausman	
  Marketing	
  Letter	
  
	
  
This	
  diagram	
  demonstrates	
  the	
  potential	
  reach	
  of	
  social	
  media	
  
marketing,	
  which	
  is	
  vast.	
  	
  This	
  example	
  assumes	
  2	
  million	
  people	
  see	
  
your	
  message	
  across	
  your	
  various	
  social	
  media	
  touchpoints	
  –	
  YouTube,	
  
Facebook,	
  etc.	
  	
  Now,	
  2	
  million	
  eyeballs	
  may	
  seem	
  like	
  a	
  lot,	
  but	
  when	
  
you	
  think	
  about	
  firms	
  like	
  Starbucks	
  that	
  have	
  16	
  MILLION	
  fans	
  on	
  
Facebook	
  alone,	
  you	
  can	
  see	
  it’s	
  really	
  not	
  that	
  difficult	
  to	
  reach	
  2	
  
million	
  users	
  when	
  using	
  multiple	
  social	
  networks.	
  	
  	
  
	
  
Each	
  of	
  those	
  2	
  million	
  users	
  has,	
  on	
  average,	
  245	
  friends	
  according	
  to	
  
the	
  Washington	
  Post.	
  	
  If	
  only	
  10%	
  of	
  the	
  people	
  who	
  saw	
  your	
  message	
  
share	
  it	
  with	
  their	
  network	
  –	
  you’d	
  reach	
  49	
  million	
  people.	
  	
  And,	
  if	
  that	
  
49	
  million	
  shared	
  the	
  same	
  way,	
  you’d	
  reach	
  1.2	
  billion	
  people.	
  	
  And,	
  the	
  
transmission	
  cost	
  –	
  the	
  amount	
  of	
  money	
  you	
  pay	
  to	
  get	
  this	
  reach	
  –	
  is	
  
$0.	
  	
  	
  
	
  
Now,	
  compare	
  that	
  with	
  traditional	
  media.	
  	
  Even	
  the	
  Super	
  Bowl,	
  the	
  
most	
  watched	
  program	
  2	
  years	
  running,	
  only	
  reached	
  111	
  million	
  
viewers	
  in	
  2011,	
  according	
  to	
  the	
  Huffington	
  Post.	
  	
  And	
  the	
  cost	
  of	
  a	
  
single	
  ad	
  airing	
  on	
  the	
  Super	
  Bowl	
  was	
  over	
  $3	
  million	
  for	
  30	
  seconds,	
  
which	
  doesn’t	
  include	
  the	
  production	
  costs	
  for	
  the	
  commercial,	
  which	
  
can	
  be	
  another	
  million	
  or	
  more.	
  
	
  
While	
  spreading	
  your	
  message	
  across	
  social	
  platforms	
  may	
  be	
  free	
  and	
  
creating	
  a	
  presence	
  on	
  these	
  social	
  platforms	
  is	
  very	
  inexpensive,	
  doing	
  
“good”	
  social	
  media	
  requires	
  other	
  resources.	
  	
  You	
  have	
  to	
  create	
  
content,	
  share	
  that	
  content	
  effectively,	
  and	
  encourage	
  linked	
  consumers	
  

	
  
to	
  share	
  your	
  content.	
  	
  And,	
  whatever	
  you	
  do	
  in	
  social	
  media	
  has	
  to	
  be	
  
done	
  consistently	
  and	
  regularly,	
  or	
  you	
  risk	
  turning	
  the	
  medium	
  against	
  
you.	
  	
  So,	
  you’ll	
  have	
  to	
  either	
  dedicate	
  some	
  time	
  for	
  an	
  employee	
  to	
  
handle	
  your	
  social	
  media	
  or	
  add	
  it	
  to	
  the	
  already-­‐long	
  list	
  of	
  things	
  you	
  
have	
  to	
  do.	
  	
  	
  
	
  
How	
  much	
  time	
  will	
  it	
  take	
  to	
  do	
  “good”	
  social	
  media.	
  	
  Well	
  large	
  
companies	
  may	
  have	
  several	
  full-­‐time	
  employees	
  who	
  do	
  nothing	
  but	
  
manage	
  their	
  social	
  media	
  platforms.	
  	
  Richard	
  Branson	
  of	
  Virgin	
  Atlantic	
  
employs	
  a	
  social	
  relations	
  team	
  combining	
  expertise	
  in	
  marketing,	
  
advertising,	
  public	
  relations,	
  and	
  customer	
  service	
  to	
  manage	
  his	
  social	
  
media	
  marketing	
  efforts1.	
  	
  
	
  
The	
  amount	
  firms	
  invest	
  in	
  social	
  media	
  marketing	
  varies	
  widely.	
  	
  Most	
  
small	
  businesses	
  spend	
  more	
  than	
  6	
  hours	
  a	
  week	
  managing	
  their	
  social	
  
media	
  and	
  this	
  number	
  increases	
  as	
  the	
  firms	
  GAIN	
  experience9.	
  
	
  
2.	
  TRACKABLE	
  
Social	
  media	
  is	
  trackable.	
  	
  While	
  it’s	
  still	
  difficult	
  to	
  directly	
  link	
  social	
  
media	
  output	
  to	
  revenue,	
  social	
  media	
  marketing	
  efforts	
  generate	
  a	
  
number	
  of	
  useful	
  metrics.	
  	
  Set	
  things	
  up	
  right	
  and	
  you	
  can	
  tell	
  exactly	
  
which	
  types	
  of	
  content	
  work	
  best	
  with	
  your	
  target	
  audience	
  and	
  
calculate	
  ROI	
  pretty	
  accurately.	
  	
  
	
  
You	
  can	
  also	
  track:	
  	
  
        How	
  people	
  reach	
  your	
  website	
  and	
  what	
  they	
  do	
  on	
  your	
  site	
  



                                                                                                                     14	
  
Hausman	
  and	
  Associates	
   15	
  
                                                                        Hausman	
  Marketing	
  Letter	
  
	
  
        Where	
  people	
  go	
  after	
  they	
  leave	
  your	
  site	
  
        What	
  time	
  of	
  day	
  generates	
  the	
  most	
  click-­‐through	
  and/or	
  sharing	
  
        Which	
  social	
  platform	
  performs	
  better	
  	
  
        How	
  social	
  media	
  engagement	
  indirectly	
  translates	
  into	
  ROI	
  for	
  
           your	
  firm.	
  	
  	
  
	
  
Armed	
  with	
  this	
  knowledge,	
  a	
  marketing	
  strategist	
  can	
  more	
  easily	
  
optimize	
  their	
  strategy	
  to	
  get	
  the	
  greatest	
  return.	
  	
  You	
  can	
  also	
  do	
  A/B	
  
testing	
  to	
  determine	
  which	
  offers	
  work	
  best,	
  which	
  copy	
  appeals	
  to	
  your	
  
linked	
  users,	
  and	
  even	
  test	
  different	
  graphics	
  or	
  layout	
  performs	
  best.	
  	
  
We’ll	
  discuss	
  and	
  demonstrate	
  analytics	
  in	
  more	
  depth	
  in	
  Chapter	
  6.	
  
                                                            	
  
3.	
  LOYALTY	
  
Folks	
  confuse	
  loyalty	
  with	
  repeat	
  purchases.	
  	
  Consumers	
  might	
  buy	
  
your	
  stuff	
  over	
  again,	
  but	
  not	
  be	
  truly	
  loyal.	
  	
  Loyal	
  consumers	
  not	
  only	
  
buy	
  your	
  stuff,	
  but	
  resist	
  efforts	
  by	
  competitors	
  to	
  lure	
  them	
  away.	
  	
  So,	
  
when	
  your	
  competitor	
  offers	
  a	
  coupon	
  for	
  purchase,	
  other	
  consumers	
  
might	
  switch,	
  but	
  loyal	
  consumers	
  stay	
  true	
  to	
  THEIR	
  brand.	
  
	
  
Loyal	
  consumers	
  also	
  like	
  to	
  bask	
  in	
  the	
  light	
  of	
  their	
  brand	
  —	
  sharing	
  
their	
  love	
  of	
  your	
  brand	
  with	
  their	
  friends.	
  	
  Sharing	
  by	
  friends	
  is	
  a	
  major	
  
motivator	
  driving	
  purchases.	
  




	
  
 
	
  
Organization	
  of	
  the	
  Remainder	
  of	
  the	
  Book	
  
Armed	
  with	
  your	
  expanded	
  knowledge	
  of	
  social	
  media	
  marketing,	
  the	
  
next	
  chapter	
  will	
  refresh	
  and	
  deepen	
  your	
  knowledge	
  of	
  traditional	
  
marketing	
  concepts,	
  demonstrating	
  how	
  these	
  concepts	
  impact	
  the	
  
success	
  of	
  your	
  social	
  media	
  marketing	
  efforts.	
  Chapter	
  3	
  delves	
  more	
  
into	
  consumer	
  behavior	
  that	
  underpins	
  online	
  behavior	
  and	
  helps	
  you	
  
understand	
  how	
  users	
  make	
  buying	
  decisions	
  on	
  social	
  networks.	
  
	
  
The	
  next	
  7	
  chapters	
  expand	
  on	
  the	
  most	
  popular	
  post	
  from	
  Hausman	
  
Marketing	
  Letter	
  –	
  the	
  top	
  7	
  skills	
  you’ll	
  need	
  to	
  make	
  your	
  social	
  media	
  
marketing	
  successful.	
  	
  Chapter	
  4	
  discusses	
  how	
  to	
  organize	
  for	
  social	
  
media	
  marketing	
  success	
  listing	
  tools	
  and	
  strategies	
  necessary.	
  	
  Chapter	
  
5	
  shows	
  why	
  social	
  media	
  marketing	
  takes	
  time.	
  	
  The	
  chapter	
  includes	
  
pert	
  charts	
  demonstrating	
  the	
  pathways	
  to	
  success,	
  a	
  checklist	
  of	
  daily	
  
and	
  weekly	
  activities	
  necessary,	
  and	
  sources	
  of	
  help	
  in	
  getting	
  these	
  
tasks	
  done.	
  	
  Chapter	
  6	
  discusses	
  metrics	
  and	
  how	
  to	
  use	
  them	
  to	
  guide	
  
decision-­‐making.	
  	
  Online	
  sentiment	
  is	
  the	
  topic	
  of	
  Chapter	
  7,	
  including	
  
the	
  topics	
  of	
  listening	
  and	
  coding	
  sentiment,	
  maintaining	
  your	
  online	
  
reputation,	
  and	
  crisis	
  management.	
  	
  Chapter	
  8	
  covers	
  the	
  important	
  
aspects	
  of	
  creating	
  valuable	
  content.	
  	
  Finally,	
  Chapter	
  9	
  discusses	
  how	
  



                                                                                                               16	
  
Hausman	
  and	
  Associates	
   17	
  
                                                                         Hausman	
  Marketing	
  Letter	
  
	
  
sharing	
  works	
  across	
  some	
  of	
  the	
  major	
  social	
  networks	
  and	
  how	
  to	
  
make	
  sure	
  your	
  message	
  shows	
  up.	
  
	
  
Chapter	
  10	
  tries	
  to	
  bring	
  everything	
  together	
  –	
  showing	
  how	
  to	
  
integrate	
  your	
  social	
  media	
  marketing	
  across	
  platforms	
  and	
  how	
  to	
  
integrate	
  online	
  marketing	
  with	
  mobile	
  and	
  offline	
  marketing.	
  	
  Finally,	
  
Chapter	
  11	
  discusses	
  some	
  paid	
  advertising	
  options	
  and	
  how	
  to	
  use	
  
them	
  to	
  support	
  your	
  earned	
  advertising	
  strategy.	
  	
  	
  Chapters	
  10	
  and	
  11	
  
also	
  include	
  case	
  studies	
  of	
  successful	
  social	
  media	
  strategies	
  and	
  how	
  
your	
  business	
  can	
  duplicate	
  these	
  strategies.	
  	
  Sometimes,	
  I’m	
  challenged	
  
at	
  a	
  speaking	
  event	
  or	
  client	
  pitch	
  by	
  notions	
  that	
  social	
  media	
  
marketing	
  only	
  works	
  for	
  certain	
  types	
  of	
  firms	
  or	
  in	
  certain	
  areas.	
  	
  
That’s	
  not	
  true	
  and	
  I	
  hope	
  to	
  show	
  you	
  this	
  in	
  my	
  case	
  studies.	
  
	
  

Connect	
  with	
  us	
  to	
  get	
  updates	
  on	
  the	
  book	
  :	
  




	
  
	
  
	
  
	
  




	
  

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Chapter 1 hausman book

  • 1. Hausman  and  Associates   1   Hausman  Marketing  Letter      
  • 2.   I. What  is  Social  Media  Marketing   and  Why  YOU  Need  It?   What  is  Social  Media  Marketing?   Simply  put,  social  media  marketing  is  an  effort  to  support  your  brand   using  one  or  more  social  networking  platforms.         “Social  media  marketing  consists  of  the  firm’s  efforts  to   create  content  on  various  social  networking  platforms.     The  goal  is  to  encourage  users  to  engage  the  firm  on   these  platforms  and  share  its  messages  throughout  the   users’  own  social  network.”     Social  media  experts  often  include  paid  advertising  on  social  networks   (such  as  Facebook  sponsored  stories),  banner  advertising  on  other   websites  (including  AdWords),  and  sites,  and  Affiliate  Marketing  as  part   of  social  media  marketing.    However,  these  tools  fit  equally  well  with   notions  of  traditional  marketing  and  media.    In  this  book,  for  the  most   part,  we’ll  discuss  UNPAID  social  media  marketing  –  something   Wharton  (School  of  Business)  calls  “earned  advertising”.    In  Chapter  11,   we’ll  discuss  paid  advertising  on  social  networks  briefly.    Much  of  what   we  present  in  terms  of  concepts  and  strategies  that  optimize  your   2  
  • 3. Hausman  and  Associates   3   Hausman  Marketing  Letter     “earned  advertising”  also  work  effectively  with  these  paid  advertising   tactics.     Social  networks  provide  marketing  tools  to  build  one-­‐on-­‐one   relationships  with  customers  and  create  a  community  of  loyal   customers  who  continue  buying  your  brand  and  draw  in  future   customers.    Social  networks  also  motivate  people  to  share  their  great   experiences  with  your  products  and  people  and  become  advocates  for   your  brand.         Social  media  marketing  gives  giant  multi-­‐nationals  all  the  advantages  of   the  little  pushcart  guy  who  truly  knows  his  customers  and  shoots  the   breeze  with  passers  by.    It  turns  any  business  into  “Cheers”  where   “everyone  knows  your  name”.       Social  media  marketing  is  much  more  than  just  Facebook,  although,  with   nearly  1  billion  users,  Facebook  is  the  largest  social  platform.    Facebook,   Twitter,  and  LinkedIn  are  considered  the  top  3  social  platforms  (at  least   at  the  time  this  book  was  written).    But,  new  social  networks  arrive  on   the  digital  landscape  every  week  –  including  Google+  and  Pinterest,   which  gained  followers  more  quickly  than  comparable  platforms.    Other   common  platforms  include:  YouTube  (for  video-­‐sharing),  Instagram   (photo-­‐sharing),  Foursquare  (a  location-­‐based  social  platform),  Reddit   (a  social  bookmarking  platform),  and  many  more.    In  fact,  there  are   probably  hundreds,  maybe  even  thousands,  of  social  platforms.    Some   are  specialized  for  specific  types  of  content,  like  YouTube  is  for  video,    
  • 4. others  are  specialized  to  a  specific  demographic,  such  as  Mixi  for   Japanese.     More  than  300  million  people  spend  at  least  one  hour  a  day  on   Facebook,  approximately  200  million  people  are  active  on  Twitter,  and   100  million  use  LinkedIn1.    The  most  active  social  media  users  are  18-­‐  to   34-­‐year-­‐olds  (82%)  and  women  (78%,  vs.  66%  of  men),  according  to  a   survey  by  Netpop  Research2.  However,  according  to  CBS,  80%  of  baby   boomers  are  online;  mostly  on  Facebook3.    Socially  savvy  consumers   likely  employ  multiple  social  networks,  so  these  numbers  do  not  reflect   unique  users,  but  the  numbers  are  still  staggering2.    By  2014,  65.8   percent  of  Internet  users  are  likely  to  become  regular  social  network   users4.     But,  don’t  forget  blogging  (a  blog  is  short  for  weblog).    Blogs  are  one  of   the  earliest  forms  of  social  networks,  dating  from  19945.  Originally   consisting  of  online  diaries  with  limited  appeal,  except  for  those  run  by   journalists,  today’s  blogs  are  powerful  tools  for  branding,  creating   engagement,  and  generating  revenue  through  online  advertising.      We’ll   see  later  why  nearly  90%  of  firms  plan  to  increase  their  usage  of  blogs   in  the  future6.     Blogging  software  makes  it  incredibly  easy  for  folks  with  limited   technical  ability  and  NO  programming  knowledge  to  create   attractive  and  effective  websites.    Content  management  systems   such  as  WordPress  (my  personal  favorite),  Drupal,  and  Joomla   4  
  • 5. Hausman  and  Associates   5   Hausman  Marketing  Letter     allow  users,  with  a  little  effort  and  practice,  to  create  professional-­ looking  websites.     But,  more  than  these  tools  and  tactics,  social  media  marketing  is  a   paradigm  shift  from  traditional  marketing.    Engagement  is  the   mantra  of  this  new  paradigm  and  gifting  is  its  currency.    Let’s  take  a   look  at  how  new  media  differs  from  traditional  media:         New  Media                 Traditional  Media   Two-­‐way  conversation   One-­‐way  conversation   Open  system     Closed  system   Transparent   Opaque   One-­‐on-­‐one  marketing   Mass  marketing   About  you   About  ME   Brand  and  User-­‐generated  Content   Professional  content   Authentic  content   Polished  content   FREE  platform   Paid  platform   Metric:  Engagement   Metric:  Reach/  frequency   Actors:  Users/  Influencers   Actors/  Celebrities   Community  decision-­‐making   Economic  decision-­‐making   Unstructured  communication   Controlled  communication   Real  time  creation   Pre-­‐produced/  scheduled   Bottom-­‐up  strategy   Top-­‐down  strategy   Informal  language   Formal  language   Active  involvement   Passive  involvement    
  • 6.     Why  Social  Media  Marketing?   Not  every  firm  chooses  social  media  as  a  means  to  market  their  brands.     For  instance,  Apple  Computers  doesn’t  own  any  social  media  territory.     OK,  so  there’s  a  little  Facebook  FanPage,  but  Apple,  Inc  almost  NEVER   posts  anything  or  responds  to  posts  there  –  it’s  not  even  clear  if  this  is   really  owned  by  Apple.    You  certainly  don’t  see  any  social  media  icons   listed  on  Apple’s  website.    No  obligatory:  “follow  us”  on  Twitter  or   Facebook  in  their  advertising  or  packaging.    Some  may  find  this   shocking  considering  Apple’s  reputation  as  a  technology  innovator  and   the  darling  of  the  social  media  generation.    I  mean,  Apple  created  an   early  version  of  social  sharing  with  iTunes.     But,  knowing  Steve  Jobs,  Apple’s  co-­‐founder,  it’s  not  surprising  he  liked   to  control  the  conversation  about  his  brand7.    Apple  encourages   consumers  to  interact  –  with  the  forums  on  their  website,  not  in  the   free-­‐for-­‐all  of  social  networks.    Through  its  forums,  Apple  CONTROLS   the  conversation  and  conscientious  moderators  remove  posts  that   conflict  with  Apple’s  view  of  their  brand.     Other  firms,  big  and  small,  find  it  harder  to  avoid  social  media  –   including  iconic  brands  like  Coke  and  Starbucks.    Ford  recently   reintroduced  its  Mustang  using  a  social  app  allowing  users  to  customize   their  own  version  of  a  Mustang.    And  this  tactic  was  a  resounding   6  
  • 7. Hausman  and  Associates   7   Hausman  Marketing  Letter     success.    Facebook  “Likes”  nearly  doubled  on  the  Mustang  FanPage  in   just  a  few  months8.     As  you  can  see  from  the  Ford  example,  firms  see  social  media  marketing   as  a  valuable  tool  for  marketing  their  brands.    For  instance,  Social  Media   Examiner  found  83%  of  the  nearly  4000  marketers  surveyed  believe   social  media  marketing  is  important  for  their  business9.    Many   marketers  plan  to  increase  their  use  of  and  budget  for  social  media   marketing.    In  a  recent  report  from  Awareness,  marketing  managers   report  use  of  several  social  media  platforms  including  87%  using   Facebook,  86%  using  Twitter,  and  76%  using  LinkedIn6.    Moreover,   experienced  social  media  managers  plan  to  increase  their  use  of  various   forms  of  social  media  beyond  these  3  major  platforms  –  91%  plan  to   increase  use  of  blogs6.     In  addition  to  vast  numbers,  social  networks  appeal  to  firms  because   they  embed  commercial  actions  within  a  community10.  Thus,  social   media  reaches  organizational  goals  by  employing  “creative  and   communications  marketing  aspects  to  enliven  ideas,  unite  communities,   and  amplify  stories”11.  Blending  commercial  and  non-­‐commercial   expression  reflects  the  reality  that  purchase  behavior  “is  part  of  a  social   process....  it  involves  not  only  a  one-­‐to-­‐one  interaction  between  the   company  and  the  customer,  but  also  many  exchanges  of  information  and   influence  among  the  people  who  surround  the  customer."12.  Large   numbers  of  consumers  use  social  networks  as  a  major  source  of  this   information  and  influence.      
  • 8.   Additional  factors  argue  for  corporate  use  of  social  media.    One  study   finds,  for  instance,  consumers  are  more  satisfied  with  retailers’   Facebook  pages  than  they  are  with  the  retailer’s  websites13.    Declines  in   the  effectiveness  of  alternative  communicative  channels,  such  as   television,  also  make  social  media  an  attractive  option14.    Disruptive,   self-­‐centered  conversations  marketers  commonly  employ  in  traditional   media  are  not  effective  in  social  media  and  marketers  must  find  new   ways  to  embed  messages  into  naturally-­‐occurring  conversations15.   Rather  than  broadcasting  marketing  messages  to  an  increasingly   indifferent,  even  resentful,  audience  jaded  by  the  2,000-­‐plus  messages   the  average  American  reportedly  see  every  day,  marketers  should   participate  in,  organize,  and  encourage  social  networks  to  which  people   want  to  belong.  Rather  than  talking  at  customers,  marketers  should  talk   with  them16.     The  top  3  benefits  marketers  find  from  using  social  media  marketing   are:  1)  building  brand  awareness;  2)  driving  traffic  to  their  websites  and   physical  stores,  and  3)  improved  customer  insights6.    Although  we’ll  talk   about  each  of  these  elements  in  more  depth  later  in  the  book,  let’s  take  a   look  at  each  benefit  briefly  now.     Building  Brand  Awareness   You  know  the  old  saying:  “Build  a  better  mousetrap  and  the  world  will   beat  a  path  to  your  door”  –  well  that  only  works  if  people  1)  know  about   8  
  • 9. Hausman  and  Associates   9   Hausman  Marketing  Letter     your  mousetrap  and  2)  believe  it’s  better.    Otherwise,  the  path  to  your   door  will  be  pretty  overgrown.     Traditional  media  actually  does  a  pretty  good  job  of  building  brand   awareness  because  it  reaches  millions  of  people  with  memorable   messages  and  catchy  jingles.    But,  social  media  marketing  builds  a   DEEPER  awareness  of  your  brand.    Now,  instead  of  just  remembering   your  brand  name  and,  maybe,  a  few  factoids  about  your  brand,  social   media  marketing  encourages  consumers  to  develop  a  more  connected   set  of  attitudes  related  to  your  brand.    Instead  of  just  hoping  they’ll  get   warm  fuzziest  about  your  brand  because  they  like  the  celebrity   endorsing  your  brand,  social  media  uses  your  friends  to  endorse  the   brand.    Now,  you  not  only  know  about  the  brand,  but  you  know  what   your  social  network  thinks  about  it,  which  increases  the  likelihood  you’ll   buy  the  brand.    You  begin  to  see  the  brand  as  another  friend  and,  when   you  like  the  brand,  it  even  shows  up  in  your  newsfeed  just  like  other   friends.    With  social  media  marketing  you  not  only  develop  an  attitude   toward  the  brand,  you  develop  “feelings”  for  the  brand.       Driving  Traffic    
  • 10. Alright,  I  don’t  want  to  get  into  too  much  of  this  now  (you’ll  get  a  lot   more  of  this  in  Chapter  9),  but  social  media  marketing  drives  a  lot  of   traffic  to  your  website  and  to  your  brick  and  mortar  store.    Increased   traffic  comes  through  2  related  channels  –  SEO  and  Customer  Insights.         SEO   OK,  pretend  you’re  an  average  user  looking  for  information  online.     First,  you  type  your  search  term  (keyword)  into  the  Google  Search   Engine  (or  Bing  or  Yahoo,  etc).    Google  returns  links  to  websites  that   match  your  search  –  or  SERPs,  which  is  an  acronym  for  Search  Engine   Results  Page.    If  you’re  the  average  user,  you’ll  start  exploring  links  near   the  top  of  the  SERPs  and  you’re  unlikely  to  go  beyond  the  first  page  or   so  in  the  results.         If  you’re  a  firm,  you  want  to  be  near  the  top  of  the  search  results   because  you  know  you’ll  get  more  traffic  that  way.    According  to  Optify,   you’ll  get  over  35%  of  the  search  traffic  when  you’re  in  the  first  position   in  the  SERPs,  but  only  about  12%  of  the  traffic  for  a  2nd  place  finish.    By   position  10,  you’ll  only  get  about  2%  of  the  traffic  visiting  your  site17.     Google  (and  Bing  and  Yahoo)  use  a  complex  algorithm  (that  changes   frequently)  to  determine  where  your  site  shows  up  in  the  SERPs.    And,   social  media  marketing  helps  your  site  rank  higher  in  2  ways.    First,  the   more  social  media  interest  you  generate  the  higher  you’ll  rank.    Second,   the  more  you  and  your  friends  engage  with  the  brand,  the  more  higher   Google  will  rank  the  site  in  YOUR  results  –  see  an  interesting  thing  is   10  
  • 11. Hausman  and  Associates   11   Hausman  Marketing  Letter     that  not  everyone  will  see  the  same  SERPs.    SERPs  are  individualized  to   ensure  YOU  get  the  most  relevant  links  possible,  so  they’re  customized   to  what  Google  knows  about  your  online  activity.     Improving  Customer  Insights   Academic  readers  and  those  already  engaged  in  market  research   probably  already  recognize  the  value  of  all  the  data  consumers  share   about  themselves  on  social  platforms.    But,  the  average  social  media   marketer  probably  hasn’t  explored  this  data  deeply.     Using  sophisticated  ethnographic  tools  and  software  such  as  nVivo,   SPSS  Text  Analysis  Software,  and  HyperRESEARCH,  firms  can   understand  not  only  consumer  sentiment  about  the  brand,  but  elements   of  lifestyle,  unmet  needs,  and  other  critical  information  that  allows  the   firm  to  develop  new  offerings,  maximize  the  consumer  benefit  of   existing  offerings,  position  brands,  and  drive  consumer  demand  for   their  brands.     Although  developing  consumer  insights  is  a  major  benefit  of  social   media  marketing,  details  go  well  beyond  the  scope  of  this  book.    I’ll  list   some  resources  to  learn  more  about  developing  customer  insights  after   the  references  to  this  chapter.     Other  Major  Benefits  of  Social  Media  Marketing    
  • 12. Here  are  a  few  more  reasons  why  your  firm  should  consider  social   media  marketing:           1.  COST   Social  media  marketing  is  much  more  cost  effective  than   traditional  advertising.    In  fact,  many  so-­called  social  media  gurus   contend  social  media  levels  the  playing  field  for  small  businesses   because  it’s  free.    Well,  that’s  not  exactly  true,  but  it’s  sure  cheaper   than  a  Super  Bowl  ad  –  at  over  $3  million  for  a  30  second  spot.     To  see  the  cost  effectiveness  of  social  media  advertising,  let’s  look  at  a   little  example  of  how  social  media  spreads  a  message  compared  with   traditional  media.     12  
  • 13. Hausman  and  Associates   13   Hausman  Marketing  Letter     This  diagram  demonstrates  the  potential  reach  of  social  media   marketing,  which  is  vast.    This  example  assumes  2  million  people  see   your  message  across  your  various  social  media  touchpoints  –  YouTube,   Facebook,  etc.    Now,  2  million  eyeballs  may  seem  like  a  lot,  but  when   you  think  about  firms  like  Starbucks  that  have  16  MILLION  fans  on   Facebook  alone,  you  can  see  it’s  really  not  that  difficult  to  reach  2   million  users  when  using  multiple  social  networks.         Each  of  those  2  million  users  has,  on  average,  245  friends  according  to   the  Washington  Post.    If  only  10%  of  the  people  who  saw  your  message   share  it  with  their  network  –  you’d  reach  49  million  people.    And,  if  that   49  million  shared  the  same  way,  you’d  reach  1.2  billion  people.    And,  the   transmission  cost  –  the  amount  of  money  you  pay  to  get  this  reach  –  is   $0.         Now,  compare  that  with  traditional  media.    Even  the  Super  Bowl,  the   most  watched  program  2  years  running,  only  reached  111  million   viewers  in  2011,  according  to  the  Huffington  Post.    And  the  cost  of  a   single  ad  airing  on  the  Super  Bowl  was  over  $3  million  for  30  seconds,   which  doesn’t  include  the  production  costs  for  the  commercial,  which   can  be  another  million  or  more.     While  spreading  your  message  across  social  platforms  may  be  free  and   creating  a  presence  on  these  social  platforms  is  very  inexpensive,  doing   “good”  social  media  requires  other  resources.    You  have  to  create   content,  share  that  content  effectively,  and  encourage  linked  consumers    
  • 14. to  share  your  content.    And,  whatever  you  do  in  social  media  has  to  be   done  consistently  and  regularly,  or  you  risk  turning  the  medium  against   you.    So,  you’ll  have  to  either  dedicate  some  time  for  an  employee  to   handle  your  social  media  or  add  it  to  the  already-­‐long  list  of  things  you   have  to  do.         How  much  time  will  it  take  to  do  “good”  social  media.    Well  large   companies  may  have  several  full-­‐time  employees  who  do  nothing  but   manage  their  social  media  platforms.    Richard  Branson  of  Virgin  Atlantic   employs  a  social  relations  team  combining  expertise  in  marketing,   advertising,  public  relations,  and  customer  service  to  manage  his  social   media  marketing  efforts1.       The  amount  firms  invest  in  social  media  marketing  varies  widely.    Most   small  businesses  spend  more  than  6  hours  a  week  managing  their  social   media  and  this  number  increases  as  the  firms  GAIN  experience9.     2.  TRACKABLE   Social  media  is  trackable.    While  it’s  still  difficult  to  directly  link  social   media  output  to  revenue,  social  media  marketing  efforts  generate  a   number  of  useful  metrics.    Set  things  up  right  and  you  can  tell  exactly   which  types  of  content  work  best  with  your  target  audience  and   calculate  ROI  pretty  accurately.       You  can  also  track:      How  people  reach  your  website  and  what  they  do  on  your  site   14  
  • 15. Hausman  and  Associates   15   Hausman  Marketing  Letter      Where  people  go  after  they  leave  your  site    What  time  of  day  generates  the  most  click-­‐through  and/or  sharing    Which  social  platform  performs  better      How  social  media  engagement  indirectly  translates  into  ROI  for   your  firm.         Armed  with  this  knowledge,  a  marketing  strategist  can  more  easily   optimize  their  strategy  to  get  the  greatest  return.    You  can  also  do  A/B   testing  to  determine  which  offers  work  best,  which  copy  appeals  to  your   linked  users,  and  even  test  different  graphics  or  layout  performs  best.     We’ll  discuss  and  demonstrate  analytics  in  more  depth  in  Chapter  6.     3.  LOYALTY   Folks  confuse  loyalty  with  repeat  purchases.    Consumers  might  buy   your  stuff  over  again,  but  not  be  truly  loyal.    Loyal  consumers  not  only   buy  your  stuff,  but  resist  efforts  by  competitors  to  lure  them  away.    So,   when  your  competitor  offers  a  coupon  for  purchase,  other  consumers   might  switch,  but  loyal  consumers  stay  true  to  THEIR  brand.     Loyal  consumers  also  like  to  bask  in  the  light  of  their  brand  —  sharing   their  love  of  your  brand  with  their  friends.    Sharing  by  friends  is  a  major   motivator  driving  purchases.    
  • 16.     Organization  of  the  Remainder  of  the  Book   Armed  with  your  expanded  knowledge  of  social  media  marketing,  the   next  chapter  will  refresh  and  deepen  your  knowledge  of  traditional   marketing  concepts,  demonstrating  how  these  concepts  impact  the   success  of  your  social  media  marketing  efforts.  Chapter  3  delves  more   into  consumer  behavior  that  underpins  online  behavior  and  helps  you   understand  how  users  make  buying  decisions  on  social  networks.     The  next  7  chapters  expand  on  the  most  popular  post  from  Hausman   Marketing  Letter  –  the  top  7  skills  you’ll  need  to  make  your  social  media   marketing  successful.    Chapter  4  discusses  how  to  organize  for  social   media  marketing  success  listing  tools  and  strategies  necessary.    Chapter   5  shows  why  social  media  marketing  takes  time.    The  chapter  includes   pert  charts  demonstrating  the  pathways  to  success,  a  checklist  of  daily   and  weekly  activities  necessary,  and  sources  of  help  in  getting  these   tasks  done.    Chapter  6  discusses  metrics  and  how  to  use  them  to  guide   decision-­‐making.    Online  sentiment  is  the  topic  of  Chapter  7,  including   the  topics  of  listening  and  coding  sentiment,  maintaining  your  online   reputation,  and  crisis  management.    Chapter  8  covers  the  important   aspects  of  creating  valuable  content.    Finally,  Chapter  9  discusses  how   16  
  • 17. Hausman  and  Associates   17   Hausman  Marketing  Letter     sharing  works  across  some  of  the  major  social  networks  and  how  to   make  sure  your  message  shows  up.     Chapter  10  tries  to  bring  everything  together  –  showing  how  to   integrate  your  social  media  marketing  across  platforms  and  how  to   integrate  online  marketing  with  mobile  and  offline  marketing.    Finally,   Chapter  11  discusses  some  paid  advertising  options  and  how  to  use   them  to  support  your  earned  advertising  strategy.      Chapters  10  and  11   also  include  case  studies  of  successful  social  media  strategies  and  how   your  business  can  duplicate  these  strategies.    Sometimes,  I’m  challenged   at  a  speaking  event  or  client  pitch  by  notions  that  social  media   marketing  only  works  for  certain  types  of  firms  or  in  certain  areas.     That’s  not  true  and  I  hope  to  show  you  this  in  my  case  studies.     Connect  with  us  to  get  updates  on  the  book  :