THE IMPORTANCE OF SOCIAL MEDIA AND WEB ANALYTICS 1129

| November 24, 2015

 

"The Importance of Social Media and Web Analytics" Please respond to the following:

From the case study, assess the degree to which Salina Siu effectively used YouTube to develop customer loyalty. Appraise the success potential of at least two (2) other social media methods that Salina could use to promote her business. Justify your response.
* From the scenario, prioritize the most significant components of a social media campaign according to the level of influence each could have on the new product launch. Examine both the social media tools that will provide the highest return on investment (ROI), and two (2) key performance indicators (KPIs) that one could use to measure success. Provide a rationale for your response.



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SALINABEAR: MONETIZING A YOUTUBE PROFILE

Karen Robson prepared this case study under the supervision of Professors Michael Parent and Anjali Bal solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.

As the eight millionth view started on her YouTube channel, Salina Siu put her scissors down and reflected on the amazing events of the past year. It was September 2012, and what had begun as a hobby a little over two years earlier had grown into a successful small business. Siu had started a YouTube channel, joined YouTube’s partner program, graduated from university and obtained an internship in social media in her hometown of Vancouver, Canada. All this from tutorials on how to creatively cut T-shirts!
Siu’s YouTube channel, SalinaBear (www.youtube.com/salinabear), provided instructional videos on how to transform plain T-shirts into fashionable garments by carefully cutting them using only scissors — an apparently popular practice among teenage women. The high number of views led to Siu being accepted into YouTube’s Partner Program, whereby ads were placed next to her videos, and Siu shared in revenues resulting from either exposure to these ads or click-throughs on these ads. Siu was making good money, but not enough to replace a full-time job.
Siu picked up her scissors and continued carefully cutting the neck seam on her latest project — transforming a man’s extra-large T-shirt into a trim woman’s tank top. As the blades moved effortlessly through the fabric, she thought about her options to transform the site into a bigger business that would provide enough income to warrant full-time employment.
BACKGROUND
Salina Siu
Salina Siu, 23 years old, was part of a creative, artistic family. Her father, who enjoyed photography as a hobby, had first piqued her interested in drawing. Her mother had been a seamstress her whole life and sewed clothes part-time at home. When Siu was a young girl, her mother would ask her what new outfit she’d like her to make for her. At an early age, Siu had already started thinking like a fashion designer. She had also developed a taste for unique and custom garments. By her own admission, she had always been interested in arts and crafts: drawing, painting, photography and graphic design.
Siu also pursued these interests professionally. She graduated with her bachelor’s degree in Business Administration in 2012 from the Beedie School of Business at Simon Fraser University in Vancouver, Canada, with concentrations in entrepreneurship and innovation and in marketing and a minor in publishing. Throughout her coursework, she also took electives from Simon Fraser’s School of Interactive Arts and Technology, including digital image design, graphic design and drawing as inquiry.
In May 2010, she bought a T-shirt at the local mall that had been cut up in the back. It was the first time she had ever seen such a thing, and she was enthralled. She immediately tried to figure out how it had been done, even searching on YouTube for videos that might show her. She commented:
The videos were OK, but they really didn’t show it clearly. The production quality was poor, and the instructions were incomplete and confusing. I felt frustrated, and never really got a clear understanding of how to cut T-shirts into these neat patterns. So, I just decided to do it myself. Through trial-and-error, and with some help from my Mom, I got the hang of it really fast! It’s actually pretty easy and straightforward once you get it!
This epiphany motivated her to want to make better videos than the ones currently on YouTube. She saw an opportunity to help others, while also developing valuable video-creation and -editing skills and learning about YouTube — a fast-growing medium for her generation. As a marketing graduate, she also knew the value of research, so she started watching a large number of craft tutorial videos, not only for T-shirt cutting but for all sorts of arts and crafts. Siu said:
I was especially inspired by Erica Domesek and her website “P.S. I Made This” (http://psimadethis.com). Erica created a blog that taught people how to reproduce brand-name styles. She went on to publish her own book and made numerous television appearances on shows like Martha Stewart’s. She had been featured in magazines like Teen Vogue, Glamour, Lucky and InStyle, and had partnered with big brands to style and design campaigns for the likes of Coke, Ford and Roxy. She had even hosted events with big brands like Kate Spade and Gap. She was a real inspiration to me, and I sought to reproduce her success in my own way.
This research led Siu to conclude that clear, accessible content was the most critical success factor for tutorial videos. Specifically, she felt that an effective instructional video should include the following:
	•	Clearly numbered steps throughout the video so that viewers could fast-forward and rewind easily
	•	Showing of the end product at the beginning of the video so viewers can decide right away whether the tutorial is what they’re looking for.
	•	Clear and appropriate camera angles that show the work being performed, as it was being performed (in other words, providing an overhead view of the cutting without using cutaways that revealed a miraculously perfect product)
	•	Proper lighting
	•	Clear and concise instructions
	•	Showing of all the steps
	•	A playful, fun atmosphere that made the task look easy and approachable
Siu also decided that she would not only demonstrate but also act as the model in her videos (see Salina’s website at www.youtube.com/salinabear for examples of her videos). She believed doing so was important to establish her credibility and provided an opportunity to showcase her personality.
As far as the name for her channel, she said:
I chose SalinaBear for a few reasons. First of all, I wanted the channel to have my name in it so that viewers would know who I am, and how to spell my name, as it has an unusual spelling, with an a in the first syllable, not the usual e. I also wanted to create a brand that would be unique, easy to find on the Internet, playful and fun. Finally, the thought of a cute bear in the logo appealed to me, and I thought it’d appeal to other young women.
Siu uploaded her first video to YouTube in June 2010. It showed viewers how to cut strips into a “V” shape on the back of a T-shirt using only scissors — no sewing or taping required (you can view the video on her website at www.youtube.com/watch?v=BbhC7hPFaLA&list=UUCYATxMpYZ4ayXG5NPxqQw&index=23). The 4-minute, 45-second video took her four hours to film and another four hours to edit before it was ready for posting.
To promote the video, she shared it on craft and do-it-yourself (DIY) websites. A major boost in viewership occurred after one of these sites, CutOutAndKeep (http://www.cutoutandkeep.net/) featured her video on its landing page. In fact, it remained on the landing page for one week and eventually was moved to CutOutAndKeep’s featured products page. It became SalinaBear’s most popular video, at more than 2.2 million views. In addition, some organizations and clubs gave Siu branded T-shirts for her to cut up in return for mentions in her videos. These organizations, in turn, promoted her work by distributing these videos to their networks.
YouTube
Chad Hurley, Steve Chen and Jawed Karim, all former employees of PayPal, founded YouTube in 2005. The site went live in Beta in May 2005, before the full-featured site was launched online later that year, in December. YouTube’s vision is “to give everyone a voice, to evolve video, and to make our partners and advertisers successful.”1 In October 2006, Google acquired YouTube for US$1.65 billion2.
By January 2008, 10 hours of video were being uploaded to YouTube every minute; in October 2009, this rate increased to 15 hours of video per minute, and in March 2010, the rate had increased to 24 hours of video per minute. In 2012, YouTube was the world’s largest online video site, with roughly 72 hours of video being uploaded every minute, of which three hours per minute were being uploaded from mobile devices.
YouTube began its Partner Program in December 2007. YouTube partners were content creators, and many of them were large media companies, such as Sony or Universal. Partners were able to upload videos of any length (i.e., they were not limited to 15 minutes) and were able to monetize their videos through ads or by making their videos available for rent. Partners were also offered more analytical tools to manage their sites.
YouTube gave partners about 50 per cent of the revenue generated by ads on their sites, based on either cost per impressions (CPM) or cost per clicks (CPC), depending on the advertiser’s choice. Ads were placed in numerous spots on the partner’s website, at the top of the video, on the bottom of the video window or at the side. Up to three ads appeared on any one page.
To become a partner, the site owners first needed to create an original video suitable for online streaming, and they needed to either own or have permission to use and monetize the video and audio content. Potential partners also needed to apply to YouTube to join the partnership program. YouTube considered how often videos were uploaded, how big their audience was and how many videos were in the potential partner’s library. YouTube had more than one million partners, with top-performing partners reputed to be making well over $100,000 per year.
YouTube’s partnership agreement included a clause prohibiting partners from disclosing how much they actually earned from the partnership program, owing to the variety of factors that went into calculating compensation. However, an oft-cited estimate was $2 in earnings for every 1,000 views and $0.05 for every subscriber.3
HOW TO GET MORE THAN EIGHT MILLION VIEWS AND 47,000 SUBSCRIBERS
As of September 2012, SalinaBear had 47,753 subscribers and 8,234,081 video views (an average of 10,000 unique views daily). Siu had created and posted 24 videos, and her work had received more than 5,000 comments, 28,000 likes and 1,300 dislikes. The website Social Blade tracked YouTube metrics, including those for Salina’s site (see http://socialblade.com/youtube/user/salinabear).
Siu posted her first video on June 5, 2010, and she applied to be a YouTube Partner on June 15, 2010. As of June 28, she had 100 subscribers, and on June 29, YouTube approved her partnership application (see Exhibit 1). She received her first royalty cheque on November 24, 2010 (YouTube sent cheques when an account had amassed more than $100).
Siu’s videos became increasingly sophisticated, while continuing to retain a light, whimsical tone. Siu also became more adept and efficient at creating the videos. They now took her about three hours to film and another three hours to edit. The videos all began with the SalinaBear logo. They then moved on to the tutorial. Some videos depicted very basic steps (e.g., how to cut a neck), while others were more complex. In some videos, she referred to earlier videos depicting these basic steps.
Siu felt that three keys had led to her success: quality content, the building and nurturing of an audience and findability.
Quality Content
It was important for Siu to avoid mistakes that other videos had made, which is why she wanted to number the steps and explain and illustrate them clearly, using good lighting and a top view. She also believed it was important to show the finished product at the beginning of the video to give viewers an idea of what they were working toward. Finally, she believed she established her credibility by acting as both the model and creator in the videos.
The response from viewers was enthusiastically positive, as attested to by the following comment, one of many on the website:
oh my god. i’ve seen a ton of tutorials on weaving and this is by far the best i’ve ever seen lol. usually you can’t see what the hell the people are doing with what strings because they like to pick a black shirt or the camera is a weird angle or too far away. but i love how clean and simple your drawings are :). every step is shown and explained thoroughly :D. thank you so much!
– MikoSubaru (February, 2012)
Building and Nurturing an Audience
“I feel a great deal of loyalty to my viewers,” Siu maintained. “They got me to where I am today, and their ongoing support has been crucial to SalinaBear’s success.” Siu kept close tabs on her viewership using YouTube’s extensive analytics (see Exhibit 2 for sample viewership data). It came as no surprise to her that the majority of the site’s views were from young women (90.2 per cent of her overall views were from women), mainly in the United States. However, it surprised her that a considerable number of views were from Mexico, the United Kingdom and the Philippines.
During the first four months, she felt it was important to reply to all comments on the channel. However, it became too repetitive to thank everyone, so she limited her replies to more complicated questions. She also created an FAQ (frequently asked questions) video addressing popular topics. In April 2011, after hitting one million views, she created a special “thank you” video for her fans and followers.
The growth in the site’s views was, at first, mainly organic, with very little effort on Siu’s part. In addition to having posted the videos on DIY sites, Siu had also posted them to her personal Facebook profile. She used the biography of her Twitter account (@salinasiu) to refer to SalinaBear. She created a Flickr account that displayed her T-shirts and encouraged fans to subscribe to her YouTube channel (www.flickr.com/photos/salinabear/). She also used Pinterest (http://pinterest.com/salinasiu/). Out of her 20 boards on Pinterest, the board that had attracted the most engagement showed photos of her own designs and YouTube videos and T-shirts that others had cut up. Including designs by others on her Pinterest boards reflected Siu’s underlying belief that reciprocity was a big part of success in social media marketing efforts. She was also pleased that every time she logged into Pinterest, her recent repins and likes were mostly from strangers who had discovered her “Cut T-Shirt” pinboard.
Findability
Siu devoted considerable attention and energy to ensuring that interested viewers could find her site: she knew that it was not enough to have an interesting topic and well-made videos. After all, many good videos on the Internet were never discovered. Luckily for Siu, when she started her channel, only a handful of users were making T-shirt-cutting tutorials. Siu considered this topic to have little competition.
Siu believed the other key findability factor was search engine optimization (SEO), which was improved through the use of keywords. She used targeted keywords in the videos’ titles. She used Google AdWords’ Keyword Tool to determine which keywords were most popular. The title of the video was especially important: Siu strived for a balance between being descriptive and enticing viewers. By responding to Comments, she created buzz around her videos, thus increasing the videos’ rating on the search results.
CHALLENGES
Imitation, far from being the sincerest form of flattery, was endemic on the web, especially on YouTube. Paradoxically, by helping people, Siu was also empowering them. Nothing prevented anyone else from either imitating or even bettering her. As such, her competition was essentially unbounded. Moreover, she believed that viewers expected instructional and informational videos to be free. After all, she herself had turned to YouTube after buying her first cut T-shirt! Consumers’ reluctance to pay for content constrained her options for the future of the site.
In some ways, Siu wanted to transform SalinaBear into a full-time job and career. However, she felt she needed at least a tenfold increase in revenues to do so. She did have several options worth pursuing: she could charge for her videos via another platform; charge rent on her videos on YouTube; sell DIY kits; create a physical shop, and conduct in-person group or individual tutorials; and/or expand her brand, in much the way Erica Domesek had done, by developing a new line of tutorials focusing on nail art, jewellery or other crafts.
Charging for Videos
In early 2010, YouTube began experimenting with paid content — that is, having users pay for access to certain content; in this case, YouTube offered some select films from the Sundance Film Festival.4 This experiment eventually morphed into a product YouTube called YouTube Rentals,5 in Beta form, as of September 2012. More traditional sites, such as Blockbuster, Redbox and Netflix, also rented movies and television shows, as did Apple’s iTunes. However, these sites did not host instructional videos. Instructional video sites, such as TeacherTube, EduTube and Mylearningtube, hosted similar videos, but they were more school-focused, not hobby-focused. Finally, numerous arts and crafts sites, such as Martha Stewart’s and SimpleKidsCrafts, hosted DIY videos, but they were not paying sites. If Siu chose this path, she faced the challenge of either finding a suitable paying distribution channel for her videos or the daunting task of creating a pay channel of her own.
DIY Kits
Siu had also considered creating and selling DIY (do-it-yourself) kits. She pictured these kits to contain scissors, a ruler and a couple of T-shirts with dotted lines printed on them to instruct people where to cut. These kits would pair well with her existing videos, and promoting them on her videos would be easy, but she wondered whether people would buy them. One option was to sell them online, perhaps via Amazon.com, although yet another option was to develop a relationship with an existing retail chain. Such kits were popular with arts and crafts retailers, including the arts and crafts retail giant Michaels. She could also develop a tutorial book or a book of patterns, which she could sell in addition to or packaged with the DIY kits.
Physical Shop
Many viewers had asked Siu whether she gave in-person workshops or tutorials. So far, she had demurred. If these workshops and tutorials weren’t free, she felt that not enough people would be interested to make this option financially viable. She would also face the challenge of scaling the operation. However, she realized that could open a physical retail store, where she could both conduct tutorials and sell some of her creations. She’d been inspired by Hamburger Disco, a brand run by two of her friends, which had only sold products online until opening a pop-up store in Vancouver. Her friends had asked Siu to cut one of their T-shirts to promote their pop-up store; in return, Hamburger Disco cross-promoted the video she had created. Based on their experience, and on advice from others, she believed she’d need at least $10,000 to open a small store, buy inventory and run it for six months without a profit.
Aside from the time and energy needed to establish a retail presence, she knew that the majority of her viewers and fans were located in the United States, and she wondered whether marketing her brand in her hometown would work. In addition, Siu also realized that running a physical retail store was vastly different from maintaining the online presence she had created. The skills required to run a store were not the skills she had developed as a video producer and on-air personality. Although the store option didn’t play to current her skills, interests and competencies, she acknowledged that it could be a necessary step in growing her brand.
Brand Extension
The last option was to branch out into other types of crafts, such as nail art or jewellery. Siu believed that she had created a strong brand presence on YouTube. Moreover, the SalinaBear brand name was sufficiently vague to allow for many other types of products, not just crafts. Siu wondered whether she could start small by choosing one or two categories to pursue, produce a few videos and then load them onto the SalinaBear site, or whether she should, instead, segment her products through separate YouTube channels (e.g., SalinaBear T’s for T-shirts and SalinaBear Jewels for jewellery. She wondered whether her audience would follow her and whether her personality was appealing enough to distinguish her from all the others on YouTube.
Next Steps
As her latest creation took shape, Siu reflected on her future and on her options. Life had suddenly become very busy, and she’d found herself posting a video apologizing to her subscribers for being away so long. She wondered whether SalinaBear was more than just a short-term experiment, and whether devoting her energy to growing the business would be a wise and profitable long-term move.
Exhibit 1
TIMELINE TO FIRST YOUTUBE ROYALTY CHEQUE AND VIEWERSHIP NUMBERS

Source: Salina Siu
Exhibit 2
SELECTED YOUTUBE ANALYTICS DATA FOR SALINABEAR (JULY 2012)

Source: Salina Siu

1 YouTube, “Frequently Asked Questions,” www.youtube.com/t/faq, accessed July 1, 2012.
2 All currency amounts shown are in U.S. dollars unless specified otherwise.
3 http://socialtimes.com/make-money-youtube_b12035, accessed July 1, 2012.
4 Jolie O’Dell,” YouTube Will Start Charging for Some Videos,” ReadWrite, January 20, 2010, www.readwriteweb.com/archives/youtube_will_start_charging_for_some_videos.php, accessed July 1, 2012.
5 YouTube, “YouTube Rentals Beta,” www.youtube.com/t/youtube_rentals, accessed July 1, 2012.
Copyright © 2012, Richard Ivey School of Business Foundation
Version: 2012-12-19
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MKT 500 Week 8 Scenario: Developing Social Media Campaigns for the New Product Launch

Slide #	Scene #	Narration
Slide 1	Scene 1

[Ed, Samantha – Ed’s Office]

Ed and Samantha meet in the morning to discuss the next steps in the tablet PC launch.	MKT500_8_1_Samantha-1: Good morning, Ed. How are you doing today?

MKT500_8_1_Ed-1: Good morning, I’m doing quite well. What about yourself?

MKT500_8_1_Samantha-2: Good, thanks. I’m really proud of the progress we’ve been making with our tablet launch, and I’m excited for the next steps.

MKT500_8_1_Ed-2: I love your enthusiasm, Samantha! I spoke with Carl earlier. He said now that we have selected our advertising media and budget, we need to take a deeper look into social media.

MKT500_8_1_Samantha-3: Yes, the enormity of today’s media choices—the Internet alone—makes it a wonderful time to be alive. Social media is at the cutting edge of this trend.

MKT500_8_1_Ed-3: As we discussed, we can use social media as one of our main media outlets for advertising the new tablets. However, mobile marketing is growing because our cell phones are particularly convenient; they contain our identities and those of the people we talk to frequently. They are our portals to email, social media and networking sites, which are many people’s primary means of sharing information and entertainment.

Interestingly enough, at the same time that electronic and information technologies are becoming more accessible and pervasive, traditional media are experiencing their own changes.

Slide 2	Interaction

Hover your mouse over each media to discover more information about the changes they are undergoing.

Newspaper
Newspaper circulations are declining, and while optimists continue to launch new magazines every year, their overall sales and circulations are down as well.

Radio
The number of radio stations has grown, boosted by satellite servers, but listeners are tuned in for less time each day than just a few years ago.

TV
Television channels also continue to grow. The bad news about this fragmentation is that with more TV channels, the audience for any given show is typically smaller. The good news is that targeting is a facilitated when the segments of viewers are somewhat more homogeneous.
	MKT500_8_1_Ed-4: Hover your mouse over each type of media to discover more information about the changes they are undergoing.

MKT500_8_1_Ed-4_Tab A: Newspaper circulations are declining, and while optimists continue to launch new magazines every year, their overall sales and circulations are down as well.

MKT500_8_1_Ed-4_Tab B: The number of radio stations has grown, boosted by satellite servers, but listeners are tuned in for less time each day than just a few years ago.

MKT500_8_1_Ed-4_Tab C: Television channels also continue to grow. The bad news about this fragmentation is that with more TV channels, the audience for any given show is typically smaller. The good news is that targeting is facilitated when the segments of viewers are somewhat more homogeneous.

Slide 3	Scene 1, cont.

[Ed, Samantha – Ed’s Office]





















(Display social media graphic)


 	MKT500_8_1_Samantha-3: Very interesting, Ed. I hadn’t realized the effects of social media on more traditional media types.

MKT500_8_1_Ed-5: The other part of the “social media” story is its social, or human, element. Belonging to different communities and interacting with different people in our social roles is part of our identity.

The most fundamental means of interaction is dialogue. In social media, customers have become participants in a dialogue with marketers or brands.

Traditionally, customers had been mere recipients of one-way messages that had been shot out by marketers, but now customers have a means of talking back. For example, customers post positive endorsements about brands, and they also use the web to vent. I often vent on Facebook about restaurants where I have had a bad experience.

MKT500_8_1_Samantha-4: (pointing to graphic of different types of social media) This is very true. Are there certain types of social media that you had in mind for our tablet launch? I have a Facebook account and use Twitter and Pinterest frequently, but I  feel that using all of these might be overkill for our new tablet launch.

MKT500_8_1_Ed-6: Well, there are a few sites that I believe will provide Golds Reling with very strong exposure during our initial launch. Let me show you this short video that discusses the advantages of using social media in our marketing campaign.
Slide 4	Social Media Marketing in 3  Minutes

http://www.youtube.com/watch?v=gza8dvN8Hkc

Slide 5	Scene 1, cont.

[Ed, Samantha – Ed’s Office]





























	MKT500_8_1_Samantha-5: Thanks for sharing that video, Ed. I understand better how social media helps connect companies to customers, and helps customers get to know, like, and trust companies better.

MKT500_8_1_Ed-7: Yes. The key to a successful social media campaign is selecting a social media that creates good W.O.M.

MKT500_8_1_Samantha-6: What is W.O.M.?

MKT500_8_1_Ed-8: W.O.M. is Word-of-mouth. Word-of-mouth works on inherently exciting products like Golds Reling’s new tablet, and it also works where the notion of buzz marketing makes sense. Yet creative brand managers have launched clever ad campaigns that get talked about even for pretty mundane products, too; the key being that the product and the message are meaningful to the customer.

MKT500_8_1_Samantha-7: Okay. You know, I learned in my classes at Strayer University that different social media combined create social networks. In social networks, there are some members that are more connected and influential than others. We need to leverage these interpersonal group dynamics, ideally locating the highly connected influential members, to induce their trial of our tablet, in turn initiating and propelling the diffusion process.
MKT500_8_1_Ed-9: You’re right. To locate these influential members and get the word out about our tablet, we need to study how these potential consumers, or actors, are embedded in these networks to locate those that are relatively central. Centrality indices are computed for each actor in the network to describe the position of that actor relative to others in the network.
The easiest and most common way to compute centrality is to count the number of connections each actor has with the others in the network. An index of degree centrality is derived for each actor—those with many links are said to be relatively central, and those with fewer links are more peripheral.

In order to determine the degree of centrality for these consumers, we need to create several different accounts on various social media forums for Golds Reling. Strong centrality will be useful in creating buzz for our new tablets.

MKT500_8_1_Samantha-8: Okay. We can start working on this right away.

MKT500_8_1_Ed-10: First, though, let’s begin with answering the return of investments, or ROI, issues. As you know, Carl is always focused on the bottom line.

MKT500_8_1_Samantha-9: What should we focus on in terms of ROI?

MKT500_8_1_Ed-11: As with traditional media, we can begin to answer return on investment questions only if we know the goal that the marketing action was initially intended to achieve. Based on our goals, selecting the media and ROI measures are rather straightforward.
When estimating ROI, which is really the efficiency of investments, the primary expenditures might not be media buys or explicit budgetary contributions so much as salary equivalents of people’s time allocations.
We also need to consider KPIs.
MKT500_8_1_Samantha-10: I know that KPIs are key performance indicators, but how do we identify KPIs for social media?
MKT500_8_1_Ed-12: KPI’s for social media are analogous to traditional measures for advertising effectiveness. Specifically, marketers are always interested in quantifying reach, frequency, monetary value of customers, customers’ behaviors, attitudes, and memory, including recall and recognition.
MKT500_8_1_Samantha-11: So, how can we determine the ROI and KPIs for our tablet?
MKT500_8_1_Ed-13: I’m glad you asked this question, Samantha. A common way to determine ROI for social media is through conversation rate. This term refers to the true engagement for conversations in your social media communities. Conversations will be different depending on the network.
For example, Facebook, YouTube, and blogs are focused on comments; however, Twitter is measured with mentions and hashtags. We, therefore, calculate the figures for each network, and calculate how many conversations took place about our company and products per post, tweet, or video submission.
Another method we can use is viewability rate. This metric is a little harder to find on Twitter. However, for other networks and mediums such as Facebook, YouTube, and our blog, it is the total number of views or impressions per post. This is not as important as the conversation rate, but it is always satisfying to see how often your content is being looked at, and if no one is seeing it, then you better find a way to get users to view it!
MKT500_8_1_Samantha-12: I see. Thank you for that explanation. Before we move on, let me check to make sure I understand what you are saying about KPIs.
Slide 6	Check Your Understanding

KPIs for social media are _________ traditional measures for advertising effectiveness.

A) very different from
B) analogous to
C) opposite of
D) inconsistent with

Feedback:
Incorrect A – very different from: KPI’s are very similar to traditional media.
Correct B – analogous: KPI’s are very similar to traditional media.
Incorrect C – opposite of:  KPI’s are very similar to traditional media.
Incorrect D – inconsistent with:  KPI’s are very consistent with traditional media measurements.

Slide 7	Scene 1, cont.

[Ed, Samantha – Ed’s Office]
	MKT500_8_1_Samantha-13: Great information, Ed, but can we go back to the word-of-mouth concept? How do we know consumers are talking about our new tablets on social media? How can we capture this and make it work for Golds Reling?

MKT500_8_1_Ed-14: Word-of-mouth conversations and other customer-to-customer information flows have become a rich new source of consumer insights.
There are two main categories for the ways in which consumers receive information about companies and their products: passive listening and active intervention.
Slide 8	Interaction

Click the tabs to learn more about passive listening in marketing.

Passive Listening
Research shows that a lot is learned from lurking, or web crawling, and scraping, all of which are examples of passive listening:
Tab A - Tweets, blogs, and discussion forums are monitored to make predictions about new product launches more accurate.

Tab B - Companies use text analyses on Facebook to get a read on customer opinions about their brands.

Tab C - Beyond the brand itself, content analysis has been useful in detecting developing consumer trends.

Tab D - Brand managers check websites for misinformation to try to nip bad, grassroots PR in the bud.	MKT500_8_1_Ed-15: Click the tabs to learn more about passive listening in marketing.
MKT500_8_1_Ed-16: Passive Listening
Research shows that a lot is learned from lurking, web crawling, and scraping, all of which are examples of passive listening:
MKT500_8_1_Ed-16_Tab A: Tweets, blogs, and discussion forums are monitored to make predictions about new product launches more accurate.

MKT500_8_1_Ed-16_Tab B: Companies use text analyses on Facebook to get a read on customer opinions about their brands.

MKT500_8_1_Ed-16¬_Tab C: Beyond the brand itself, content analysis has been useful in detecting developing consumer trends.

MKT500_8_1_Ed-16_Tab D: Brand managers check websites for misinformation to try to nip bad, grassroots PR in the bud.

Slide 9	Scene 1, cont.

[Ed, Samantha – Ed’s Office]
	MKT500_8_1_Samantha-14: Great information, Ed. What can you tell me about active interventions?
Slide 10	Interaction

Click the tabs to learn more about active interventions.

Active Interventions

Tab A - Marketers enter online communities and ask for paid volunteers to be user groups to test beta products and offer feedback.

Tab B - Marketers conduct experiments. In the so-called A / B split tests, one group is exposed to one ad, new product description, or whatever element of the marketing mix the marketer is testing. The other group is either a control group, or they see a different version of an ad, new product description, etc. The marketer then compares brand attitudes or subsequent sales in test markets to detect some lift due to the marketing intervention.

Tab C - A company may wish to measure comparative click-through rates, member sign-up rates, or purchase valuation, as a function of whether the ad appeal is more rational or emotional, whether video or script endorsements are featured, which price is posted and whether a discount is available.

Tab D - GPS data function much like live cookies, storing information for your convenience upon return while still protecting your privacy. The purpose of GPS units in phones was originally consumer service for mapping. GPS units are becoming geo-retailing units, and they will soon offer extremely timely opportunities for marketers, though some may consider this more intrusive than timely. A motivated company will know where its customers are at all times.	MKT500_8_1_Ed-17: Click the tabs to learn more about active interventions.
Active Interventions
MKT500_8_1_Ed-17_Tab A: Marketers enter online communities and ask for paid volunteers to be user groups to test beta products and offer feedback.

MKT500_8_1_Ed-17_Tab B: Marketers conduct experiments. In the so-called A / B split tests, one group is exposed to one ad, new product description, or whatever element of the marketing mix the marketer is testing. The other group is either a control group, or they see a different version of an ad, featuring a new product description. The marketer then compares brand attitudes or subsequent sales in test markets to detect some lift due to the marketing intervention.

MKT500_8_1_Ed-17_Tab C: A company may wish to measure comparative click-through rates, member sign-up rates, or purchase valuation as a function of whether the ad appeal is more rational or emotional, whether video or script endorsements are featured, which price is posted and whether a discount is available.

MKT500_8_1_Ed-17_Tab D: GPS data function much like live cookies, storing information for your convenience upon return while still protecting your privacy. The purpose of GPS units in phones was originally consumer service for mapping. GPS units are becoming geo-retailing units, and they will soon offer extremely timely opportunities for marketers, though some may consider this more intrusive than timely. A motivated company will know where its customers are at all times.

Slide 11	Scene 1, cont.

[Ed, Samantha – Ed’s Office]
	MKT500_8_1_Ed-18: In general, social media pundits advise that any corporate postings or representations have to start by being interesting – otherwise, consumers won’t even read them! The content needs to be honest, not defensive, and not too “corporate”. There needs to be transparency to customers, employees, and stakeholders. Being transparent usually means being honest, building trust, and creating the opportunity for two-way dialog.
Social media have sufficient variety and prevalence that they can be a tremendous marketing tool—if we can offer something that provides value to those customers, and reaches them in a way that matters to them.
MKT500_8_1_Samantha-15: You’ve given me a lot of valuable information about social media, Ed.
MKT500_8_1_Ed-19: I’m glad that you feel that way. Next, we can start by creating Golds Reling accounts for each of these social media applications.
MKT500_8_1_Samantha-16: Well, since we already have a Facebook account, I can create a Twitter, Google Plus, and Pinterest account for Golds Reling.
MKT500_8_1_Ed-20: Excellent. Let’s break for now, and then we can organize our information for Carl.
Slide 12	Scene 2

[Ed, Samantha, Carl – Conference Room]

Ed, Samantha, and Carl meet in the conference room to discuss the social media aspects of the product launch.	MKT500_8_2_Carl-1: Good afternoon, Ed and Samantha. I saw you both looking very busy in Ed’s office earlier. I’m looking forward to hearing the information that you two have put together concerning social media marketing for our new tablets.

MKT500_8_2_ Samantha-1: Yes, Ed and I have been very busy. We have analyzed and concluded some basic concepts.

MKT500_8_2_Carl-2: And what would these be?

MKT500_8_2_ Samantha-2: Social media are an abundant opportunity for Golds Reling.
Social media provides a web-based means for customers to interact with friends and strangers by posting opinions, pictures, and videos.

Social networks are the structures of interconnections among customers that propagate word-of-mouth.  Networks can be drawn and analyzed, and the actors measured on indices of centrality to assist Golds Reling in finding opinion leaders and influential consumers. Our campaign would identify these actors within two months of launch and create great buzz for our new tablets.

A great feature of social media is the measurement methods; these are ROI and KPIs, and they can be computed with the help of online analytics, as for any marketing effort.

MKT500_8_2_Carl-3:  Good points! Why do you believe that investing in advertising through social media would be the right decision for Golds Reling and our new tablet?

MKT500_8_2_ Ed-1: Social media is a great way to generate repeat business and to attract new customers. Furthermore, the target market we have selected are big users of social media. Golds Reling already has a Facebook account, but we believe that creating accounts for Twitter, Google Plus, and Pinterest will really help boost the conversation rate, and, thereby, the word-of-mouth, for both our company as a whole as well as our new tablet.

MKT500_8_2_ Samantha-3: Carl, by utilizing social media, we feel that Golds Reling is spending our advertising money wisely.

MKT500_8_2_Carl-4: Ok, sounds like a good investment. Explain how we are going to measure this investment.

MKT500_8_2_ Samantha-4: The key is to communicate the different features of our new tablet and to have consistency in the message we choose for social media. Measuring effectiveness will occur through KPI’s, recall, attitudes, click rates, and conversation and viewability rates from social media communications.

MKT500_8_2_Carl-5: Excellent. I like what I’m hearing. Social media sounds perfect for generating buzz and word-of-mouth about our new tablet. I agree that Twitter, Google Plus, and Pinterest accounts for Golds Reling will be excellent additions to our existing Facebook account. Very nice work, both of you.
Slide 13	Check Your Understanding

What social media term refers to a set of actors (or nodes) and the relational ties that link them?

A) Team
B) Group
C) Network
D) Forum

Incorrect A – Team: This is not the terminology used to describe relationships in social media.

Incorrect B – Group: Although a group includes two or more people, this is not a part of the relational ties.

Correct C – Social Network:  A network is defined as the set of actors (or nodes) and the relational ties that link them. Actors may be customers, firms, brands, concepts, countries, etc. The connections between the actors are relational ties (or links). Ties can be symmetric or directional, and they can be binary or vary in strength.
Incorrect D – Forum: Although this is a close description, it doesn’t explain the interaction experienced in social media.

Slide 14	Scene 3

[Ed, Samantha – Hallway]	MKT500_8_3_Samantha-1: Today was a highly informative day. Using social media for marketing can help us generate word-of-mouth about our tablet, especially if we are able to connect with the most influential members of social networks.
MKT500_8_3_Ed-1: Absolutely. It will also help customers identify Golds Reling as a company they know, like and trust. Don’t forget to complete the e-Activity and participate in this week’s threaded discussion on social media KPI’s and ROI. See you next week!

 

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