Many companies are struggling with how to integrate social into the marketing mix. But the real question is how to become a social business. The fact is, most marketing sucks. And only truly helpful content and active customer engagement can lead businesses to succeed in today's hyper-connected, real-time, social and mobile business environment.

1. How To Integrate Social Media Into The
Marketing Mix
How To Become A Social Business?
Michael Brenner
Sr. Director, Integrated Marketing
November 2011
@BrennerMichael

2. About SAP
We Help Organizations Do What They Do...Better
© 2011 SAP AG. All rights reserved. Confidential 2

3. SAP Mission
Make every customer a Best Run Business
109,000
customers
120
countries
55,000
employees
$17 Billion
revenue
© 2011 SAP AG. All rights reserved. Confidential 3

4. What is Marketing?
“The aim of marketing is to know
and understand the customer
so well the product or service fits
him and sells itself…
… The aim of marketing is to
make selling superfluous.”
~ Peter F. Drucker
“Marketing is too important to be
left to the marketing department.”
~ David Packard
© 2011 SAP AG. All rights reserved. Confidential 4

5. Marketing is Hard! Your Marketing Sucks
• Consumers are bombarded with over 2,000
marketing messages per day
• More than 200 Million Americans have joined
the U.S. “Do Not Call” list
• 86% of people skip television ads
• 44% of direct mail is never opened
• 99.9% of banner ads do not receive clicks
• 90% of emails are never opened and 99.5%
don’t produce even a single click.
• Buyers wait until they have completed 60% to
80% of their research before reaching out to
vendors.
© 2011 SAP AG. All rights reserved. Confidential 5

6. Age 3
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7. Age 21
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8. Today we are all connected
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9. Everything is Online
Business is Personal
“Buyers don’t want to be an object of a sale . . .
. . . but rather the subject of an experience. “
~Paul Greenberg
© 2011 SAP AG. All rights reserved. Confidential 9

10. YOU Are the Future of Marketing
Forrester CMO Mandate: Adapt or Perish:
“Three out of four CMOs plan to revamp their organizations for the digital age by the end of
2011. The reason? Their initial efforts to create digital departments and outsource digital
capabilities have left their organization in a state of disarray. . .
To truly transform the marketing department into a more agile and innovative organization,
CMOs must adopt these habits:
1) Accept change
2) Dare the status quo
3) Act continuously
4) Participate personally
5) Tear down boundaries
Leaders of Adaptive Marketing organizations will grow their business faster, build stronger
brands, and create a competitive advantage in both the short term and the long term.”
© 2011 SAP AG. All rights reserved. Confidential 10

11. Business Has Become More Personal
Or Maybe Not So Socially Savvy?
Connor Riley
”Cisco just offered me
a job. Now I have to
weigh the utility of a
fatty paycheck against
the daily commute to
San Jose and hating
the work”
© 2011 SAP AG. All rights reserved. Confidential 11

12. “Social Networks have existed for as long as we have.”
~ Paul Adams, Google: The Real Life Social Network

13. ~ Paul Adams, Google: The Real Life Social Network

14. “Social networking is a means to an end. You need to
understand what the end is.”
~ Paul Adams, Google: The Real Life Social Network

15. The Scream explained by Paul Wineguy

16. The Power of Social Media:
They Find You
 57% of businesses have acquired a
customer through their blog
 41% of B2B companies have
acquired a customer through
Facebook
 Company websites with a blog get
55% more visitors
 Inbound marketing leads cost 62%
less than outbound
Center for Marketing Research at the University of Massachusetts
© 2011 SAP AG. All rights reserved. Confidential 16

17. The Goal: Sales. Experience. Equity.
“
What are
the best
CRM
products
“ Check out
OnDemand
solutions”
for a law
firm?”
“Web visitors from social sites convert at 59% higher
rates to sales”
~ MarketingSherpa Search Marketing Benchmark Survey
© 2011 SAP AG. All rights reserved. Confidential 17

18. Most Marketers Are (Still) Behind
“A powerful global conversation has begun. Through the Internet,
people are discovering and inventing new ways to share relevant
knowledge with blinding speed. As a direct result, markets are getting
smarter—and getting smarter faster than most companies…Markets are
Conversations” ~ Levine, Locke, Searls and Weinberger in The Cluetrain Manifesto
Center for Marketing Research at the University of Massachusetts
© 2011 SAP AG. All rights reserved. Confidential 18

19. Social Media As A Platform For Change
“Conventional marketing wisdom long held that a dissatisfied
customer tells ten people. But…in the new age of social media,
he or she has the tools to tell ten million.”
~ Paul Gillin, author of The New Influencers
© 2011 SAP AG. All rights reserved. Confidential 19

20. Social Networking
Changing The Dynamics Of Business
SALES Social isn’t just a new way of
Social
COMMS
Social
Selling
HR
Marketing…
Social
Public
Recruiting
Relations
It’s a new way of
CHANNEL BUYING
Doing Business
Social Social
Ecosystem Procurement
It’s a new way of
MKTG
Social
COO
Social
Customer
Working
Marketing
Service
We need to stop interrupting what people are interested in and
be what people are interested in.
~ Craig Davis, former CCO J Walter Thompson
© 2011 SAP AG. All rights reserved. Confidential 20

21. What is a Social Business? (IBM)
“As the world becomes more instrumented, interconnected and intelligent and the
population continues to embrace social computing, today’s enterprises face the
dawn of a new era – the era of the Social Business.
Just as the Internet changed the marketplace forever, the integration of social
computing into enterprise design represents another enormous shift in the
landscape.
Organizations that successfully transform into a Social Business can potentially
reap great benefits – among them the ability to deepen customer relationships,
drive operational efficiencies and optimize the workforce.”
Digital Engaged Deeper Customer Relationships
Social Transparent Operational Efficiencies
Mobile Nimble Optimized Workforce
© 2011 SAP AG. All rights reserved. Confidential 21

22. Proof of a Social Business?
Trend: Inbound Marketing Comes of Age
SiriusPerspective: The reality is that prospects find you when they’re
ready; effective digital and inbound marketing makes you easier to find.
Primary Lead Source Analysis
100%
90%
80%
70% 55% 58%
71%
60%
Web
50%
Direct Mail
40% Email
19% Events
30% 21%
20% 11% 14%
9%
10% 6%
15% 12% 9%
0%
2009 2010 2015
© 2011 SAP AG. All rights reserved. Confidential 22

23. Social Media Marketing
What It Isn’t & What It Is
Think more Social…
… less Media …or Marketing
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24. It‟s not about the technologies…
It‟s about the relationships
It’s Not About The Technology
(or stock photo images)…
It’s About the Relationships
© 2011 SAP AG. All rights reserved. Confidential 24

25. 8 Steps To Play The Social Game
1. Define Goals / Metrics
2. Find Your Buyers
3. Define Influences (-ers)
4. Map The Org. Model
5. Set up Your Channels
6. Content Strategy
7. Customer Engagement Model
8. Employee Enablement / Encouragement Plan
“Throw Away The Rulebook”
~ Dana Anderson, SVP Marcom Kraft
© 2011 SAP AG. All rights reserved. Confidential 25

26. If “Markets are Conversations”… then “Content is King!”
Chart used with permission. For a copy, go to:
http://socialbmr11.marketingsherpa.com/
© 2011 SAP AG. All rights reserved. Confidential 26

27. Social Disasters
Sept „04: June „05: Aug „05: Apr 06: Feb „07: Apr „08: Apr „09: July „09: June ‟10:
Kryptonite L‟Oreal Dell Chevy Taco Bell Dove Domino‟s United BP
© 2011 SAP AG. All rights reserved. Confidential 27

28. Social Media Triage
Take reasonable
action to fix issue
and let customer
know action taken
Positive Negative
Yes Yes
No Assess the
Does customer
Do you want Evaluate the
need/deserve more
to respond? message purpose
info?
No Yes Unhappy Yes Are the facts No Gently correct the
Response Customer? correct? facts
No
Yes Can you add No Dedicated Yes Are the facts No
value? Complainer? correct?
No Yes
Is the Explain what is being
Respond in Thank the Comedian Yes
problem done to correct the
kind & share person Want-to-Be?
being fixed? issue.
No
Yes
This framework was built using the USAF Blog Triage. Let post stand and
monitor.
© 2011 SAP AG. All rights reserved. Confidential 28

29. 5 Steps to Executive Buy-in
1. Show Them The World Has
Changed
2. Show Them The Money
3. Answer The Hard Questions
4. Present a Strategy
5. Get Them Involved
© 2011 SAP AG. All rights reserved. Confidential 29

30. 8 (Random) Closing Thoughts
We live in a mobile-enabled, socially connected, real-time world. Where we all
have entrusted our friends, photos, music and resumes to the cloud.
Businesses cannot respond fast enough. The goal of the digital marketer is to
drive employee-enabled real-time social business.
Audience-first in everything!
Provide policy but not too much governance
Disclosure and crisis response is important
Reward positive behavior publicly
Promote the expression of your diversity
Be Human and encourage real story telling
© 2011 SAP AG. All rights reserved. Confidential 30

31. Thank You!
More charts in the appendix…
Email:
michael.brenner@sap.com
Marketing Blog:
B2BMarketingInsider.com
Social News Site:
Business2Community.com
Twitter:
@brennermichael
© 2011 SAP AG. All rights reserved. Confidential 31

32. SAP Social Media Guidelines for Employees
Identify yourself
Be Honest
Be Respectful
Separate Opinions from Facts
Add Value
Be Engaged and Be Informed
Aim for Quality, not Quantity
Don't Pick Fights
Protect Your Privacy
How to Handle Media Inquiries
Legal Considerations
Social Computing and Your Primary Role
© 2011 SAP AG. All rights reserved. Confidential 32

33. Technology Adoption
Mobile is HOT!
© 2011 SAP AG. All rights reserved. Confidential 33

34. Everybody‟s on Facebook!
And Google … and YouTube …
Which one is right for your audience?
© 2011 SAP AG. All rights reserved. Confidential 34

35. Email Isn‟t Dead!
Tied with Search for most popular online activity
© 2011 SAP AG. All rights reserved. Confidential 35

36. Email Isn‟t Dead!
#1 Method for sharing online content
While many have hailed the death of email marketing, email remains one of
the most effective marketing techniques primarily because it is still the
primary way people share information.
© 2011 SAP AG. All rights reserved. Confidential 36

37. YouTube:
The 2nd Largest Search Engine
© 2011 SAP AG. All rights reserved. Confidential 37

38. “If you have more money than brains you should focus
on outbound marketing. If you have more brains than money, you should
focus on inbound marketing.”
~ Guy Kawasaki, author of Engage and Founder of Alltop
“The aim of marketing is to know and understand the customer so well the
product or service fits him and sells itself… The aim of marketing is to make
selling superfluous.”
~ Peter Drucker
© 2011 SAP AG. All rights reserved. Confidential 38