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This presentation gives an overview of how brands are using social media to reach and engage their target consumers online.
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Social Media and Brands
February 12, 2013
The New NormalParadigm shift – many to many Power to the peopleIt’s about the conversationPLUS:
Brands relinquishing control of their once fiercely-protected identities
Brands participating in conversations with consumers (dialectic is best way to persuade)
Brands realizing the power of relationships
The “Relationship” Era of MarketingPRODUCT ERA
CONSUMER ERA
RELATIONSHIP ERA
Marketing is:Informing people about products
Marketing is:Persuading people to buy
Marketing is:Creating sustainable relationships
(1900s-1960s)
(1960s-2000s)
(2000s-NOW)
SM is Crucial for BrandsBrands constantly challenged to find new
ways to acquire new customersDeath of :30 second spot + fragmented media
landscape = hard to reach consumersBefore – brands reached consumers through
mediaNow – brands can speak directly to consumers
EVERY brand in existence is asking, “How do I reach and engage new & existing consumers through social media?”
Common ThreadsTransparency – brands disclosing & sharing
more information than ever beforeAuthenticity – company executives getting
“real” with consumersParticipation – inviting consumers to
participate in the marketing campaign itself
FiatUser-submitted
designs Community
votingWinners saw
their design on display at SEMA show
KIA Motors – Who’s Next?Campaign for launch
of KIA SoulInvited consumers to
submit videos explaining why they should be the next YouTube star
Winner got $10,000 to develop their own YouTube channel
SkittlesHigh degree
of user participation
Photo of the week
Highly visual website features user submissions, Twitter stream, etc.
NetflixHeld contest to
improve its “Cinematch” recommendation engine
Prize went to whomever could increase match predictions by 10% (worth $1MM to the company)
More than 30,000 hackers worked on it
Rickshaw Bagworks
Grasshopper.comB2B virtual business phone
solutionRebranding effort to focus on
entrepreneursInspiring video + mailing of
chocolate-covered grasshoppers to journalists
Encouraged photo-sharing through social media
Results: 119 blog posts, 30,000 referrals, 1,500 tweets, 4000% increase in traffic to website from social media
Comcast@ComcastCares – 54K
followersTech support for
Comcast’s 23 million subscribers
Started by Frank Eliason, Senior Director of Customer Service
Opens up a new channel to address customer complaints
Samsung Mobile
GapDecided to update their logo:
Ran into tremendous backlash on Facebook and Twitter
Within one week, decided to switch back to the old logo as a resultTHAT’s the power of social media!
Old Spice Body WashOld Spice Body
Wash launched ad campaign featuring Mustafa (the Old Spice Guy)
Mustafa created personal video responses to celebrities via YouTube
Sales for Body Wash rose by 107%
Domino’s Pizza Brand Promise
“You call us up and invite us to your home; you trust us to make dinner for you; you invite us to your doorstep. That's sacred to us, and that's why our people wear full uniforms. We want you to trust us when your doorbell rings.”
- Tim McIntyre, vice-president of communications
Case Study – Domino’sTwo Domino’s
employees uploaded a video to YouTube showing them putting boogers on pizzas
Video spread rapidly across the Internet and created a huge PR nightmare for the company
How Domino’s Responded Identified the employees and fired
themContacted the Health Department
and local police to file charges against the two culprits
The social media team immediately contacted YouTube to ask that the video be removed (not that simple)
How Domino’s Responded (cont.)Didn’t issue a public statement; instead
responded to direct inquiries via Dominos.com, FB, Twitter, etc.
Domino’s posted its own video to YouTube, featuring company president who calmly and sincerely vented his anger and reiterated how sacred the company holds its customers' trust.Purposely used the word “disgusting” in title
so that when people searched on YT, the new Domino’s video would show up first
The AftermathWithin three hours of posting the company
video response to YouTube, views of the original video surged to over one million.
And for the first time ever, on that day only, search queries for keyword "Domino's" surpassed those for "Paris Hilton.“
The company-posted video also quickly propelled the story into mainstream US news, then global media – 60 million media impressions
The Aftermath (cont.)Sales/franchisees suffered - the company
reported flat to slightly positive sales in the second quarter
Received top honors in the annual American Customer Satisfaction Index (ACSI) in May.
Domino’s now a great example for how to handle a social media crisis the *right* way