Social Commerce Plan (3000 word)
Eirwan
Week2-Chapter2Tutenpart2rev5.pptxSocial Consumers
Chapter 2 (Tuten)
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Unit objectives
1. identify the various tools and platforms of social media and describe how those tools are used to engage customers (activities)
2. identify, analyse and critically assess the suitability of various social commerce models and strategies for various e-businesses
3. explain the various principles and theories of social commerce
4. describe, explain and propose the appropriate marketing communication that could be conducted in various social commerce models
5. describe how social commerce aids customer relationship management
6. explain and understand the implementation issues in social commerce.
Learning objectives
Why do marketers need to understand the behavior of consumer segments in Social Media? What are the bases of segmentation used to group consumers?
How do individuals build their social identities? How are these identities relevant to marketers?
What are the social values behind engagement in social media? How can we explain the motives for participation in social media activities?
What are the most important segments of social media consumers?
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Why do marketers need to understand the behavior of consumer segments in Social Networks?
Market segmentation is the process of dividing a market into distinct groups that have common needs and characteristics.
Whether planning a campaign that will be executed entirely in social media or one for which social media is one component of an integrated marketing communications (IMC) campaign, understanding the needs, beliefs, and behaviors of the target market is key.
Concentrated & Micromarketing
Marketers use these insights to develop buyer personas that facilitates marketing strategy
Bases of segmentation
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Geographic
Benefit
Behavioral
Demographic
Psychographic
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Geographic: dividing a market into different geographical units such as nations, regions, states, municipalities, cities or neighbourhoods.
Why is this relevant in Social Media Marketing?
Geotargeting, Geofencing, Beaconing technologies
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Demographic segmentation
Demographic: dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality.
Age
Gender
Family size
Family life cycle
Income
Occupation
Education
Religion
Nationality
Most common segmentation strategy
Psychographic segmentation
Psychographic: buyers are divided into different groups based on psychological, personality traits, lifestyle or values.
Lifestyle (psychographics) is a person’s pattern of living expressed through Activities (work, hobbies, shopping sports, social event); Interests (food, fashion, family, recreation); opinion (about themselves, social issues, business, products) e.g. opinion about ethical consumerism (green products) – captured in social identity in social media
Why is lifestyle relevant to social media marketers?
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Psychographic: Let’s consider a practical application of psychographics in the social media space. The greeting card industry has experienced declining sales for some time now. Instead of cards, people may send emails, e-cards, or even just a Facebook post! A large-scale study by Unity Marketing identified four psychographic segments among greeting card buyers. Unfortunately for the greeting card industry, a segment called “Alternative Seeker,” the largest group the study identified, is also the most eager to use an alternative to the traditional card. Alternative Seekers
view social media as an answer to staying in touch with friends and family on both a daily basis and on special occasions such as birthdays and holidays. Unity’s report warns that greeting card companies are at risk as people use social media as a replacement to traditional cards. But this change presents an opportunity for others. Apps like Cool Greeting Cards and justWink create a variety of virtual greeting cards that can be delivered on Facebook and other social networks. Even Starbucks enabled a Twitter app that lets you
give a cup of coffee to someone with a simple tweet!
Benefit Sought: Social Currency
Top 10 Social Currency: Nike, Subway, Olive Garden, Southwest Airlines, Honda, Levi’s, Wendy’s, Under Armour, Chili’s, and Toyota
Social currency measures the ability of brands to fit into how consumers manage their social media-centric lives
The survey covered 90 brands. Nike scored 119, meaning that they are 19% higher than the average brands.
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Behavioral Segmentation
Divides consumers into groups based on their actions
User status: many markets can be segmented into non-users, ex-users, potential users, first time users and regular users of a product e.g. 11th Street
Usage rate: markets can also be segmented into light, medium and heavy user groups e.g. usage level of Instagram
Loyalty status: a market can be segmented by consumer loyalty, divided according to their degree of loyalty - Presto
Specific to social media - how much time prospective customers spend on social media, what activities they participate in on social media, which social networks they use and the devices (phone or laptops) they use to access social media as segmentation variables.
Links to social consumption segmentation – how much people contribute/create content and consume content
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Target Customers: Buyer personas
A persona is a snapshot of your ideal customer that tells a story using the information you used for segmentation
(i.e., demographic, geographic, psychographic, benefits sought, and behavior).
e.g. Geckoboard offering data visualization software for social media analytics
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Who? Figure 5.1 The persona template (Social identity of the target customers)
How do individuals build their social identities? How are these identities relevant to marketers?
social identity is the part of our self-concept that results from our perceived membership in a group.
Our online activities and the information we post document and express our social identity—the way we represent ourselves via our social connections, community membership, participation, and shared text, images, sounds, and video—to others who access the Web.
Marketers are interested in your social identity for segmentation, targeting and position purpose – to offer value to the right customers.
They collect insights from your social touchpoints, footprints that you leave behind, social values of your engagement, & the motivations behind participations
Figure 2.3 A day in the social life
Social touchpoints enable data marketers to understand social identity.
These footprints/touchpoints are useful to find users with the right personas through big social data analysis.
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Figure 2.4 Jenn’s social footprints
Psychographic: Social values of behind engagement in SN (Brand you)
Vision: a vision post answers the questions, “Did I learn something? Was I inspired?”
Validation: a validation activity answers the question, “Am I accepted by a group?”
Vindication: a vindication post informs others, “I am right.”
Vulnerability: a vulnerability post opens one’s self to others, “I am approachable.”
Vanity: a vanity post reveals a tendency to narcissism, “Look at me. I am all that.”
Values is part of psychographic segmentation.
Your social identity depends on your what you share in social media. When you look at the mirror, you see an image of yourself. The same goes with social media, the image of yourself (social identity) is reflected through what you share. Here is the social media audit checklist of your identity.
Psychographic - Lifestyle: Activity, Interest and Opinion. Psychological factors – attitudes, behavior, motivations, perception.
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Vision
Validation
Vindication
Vulnerability
Vanity
Psychographic: Motives for participation in social media activities
Affinity impulse: to express an affinity, to acknowledge a liking and/or relationship with individuals and reference groups e.g. to stay in touch with high school friends and to make new friends- a social function to form friendships and feel a sense of belonging.
Personal utility impulse: “What’s in it for me?” Information seeking, incentive seeking, entertainment seeking, or convenience seeking e.g. 60% of Internet users used social media as a source of health-related information.
Contact comfort and immediacy impulse: A sense of psychological closeness to others, knowing others in our network are accessible. Immediacy also lends a sense of relief in that the contact is without delay. 40% believed brands were very likely to engage and 25% expected a response within an hour in SN.
Motivation is part of psychographic segmentation
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Affinity
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Contact, comfort & immediacy
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Altruism
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Curiosity
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Personal utility
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Validation
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Altruistic impulse: To “make the world a better place,” and “pay it forward.” Immediate altruistic responses (IAR): do good and do it quickly—social media make it easier to contribute in the form of a cash donation or a service to the community e.g. the earthquake relief for Haiti or Japan. Enables individuals to express their own moral beliefs.
Curiosity impulse: To gain new knowledge and stimulate intellectual interests, epistemic curiosity is the driver. Prurient impulse e.g. millions of Twitter users to follow Kim Kardashian and Justin Bieber’s daily tweets- curious about their sexual activities?
Validation impulse: Self highlights (ego-defensive function to eliminate perceived external threats and eliminate self-doubts) e.g. Selfies among the mix of posts, a tendency to check to see if posts received likes, a tendency to overshare, and a tendency to impression manage (e.g., promoting the perfect life). People may use posts to show superiority (particularly by expressing opinions) or to participate in exhibitionism. Twitter posts found that 80% were posted by “meformers” and just 20% by informers. Meformers post updates primarily related to themselves such as commentary on their daily mood and activities, while informers post updates that share and/or link to information. Informers have twice the number of followers as meformers.
Social media segmentation models (mix)
Social technographics
The social consumption/creation matrix
A typology of social utility
Pew’s internet technology types
Microblog user types
Figure 2.6 Forrester’s social technographics model
Benefit sought and behavioural
Customer expectation of the use of social media in customer life cycle.
Star- demand
Savvies – expect
Snacker – appreciate
Skipper – spurn/reject
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Figure 2.7 Social consumption/creation matrix
Benefits sought and behavioural
Attention seekers, devotees – validation impulse - social communities and publishing
Entertainment chasers – personal utility - social entertainment
Connection seekers – affinity impulse – social communities
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Figure 2.8 A typology of social utility
Benefits sought and behavioural segmentation
Brands provide information to Mavens and Info Seekers
Brands must interact with Socializers and Mavens
Minimalist – leave them alone – Skipper in Social Technographic model.
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Table 2.1 Pew’s internet technology types
Demographic, Psychographic (Lifestyle), Behavioural segmentation – usage rate, type, status
Segment based on those motivated and not motivated by mobility.
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Microblog user types
http://www.pewinternet.org/2014/02/20/mapping-twitter-topic-networks-from-polarized-crowds-to-community-clusters /
Demographics, Psychographics, Benefits sought. You can read this report and see the images of the cluster types by visiting this URL: http://www.pewinternet.org/2014/02/20/mapping-twitter-topic-networks-from-polarized-crowds-to-community-clusters/
Polarized crowds – political issues blogs
Tight crowds – well connected professionals e.g. professional accounting body discussion about a standard
Brand clusters – brand discussions
Community cluster - feature news relevant to specific groups e.g. Workplace
Broadcast networks - exist when many people repeat prominent news.
Support network - customer service channel.
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Polarized crowds
Tight crowds
Brand clusters
Community clusters
Broadcast networks
Support networks
Learning objectives
Why do marketers need to understand the behavior of consumer segments in Social Media? What are the bases of segmentation used to group consumers?
How do individuals build their social identities? How are these identities relevant to marketers?
What are the social values behind engagement in social media? How can we explain the motives for participation in social media activities?
What are the most important segments of social media consumers?
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