Recently I had the pleasure of speaking at Search Engine Strategies (SES) New York on a panel discussing social media and how it works with the marketing mix. I am a firm believer that while mass marketing and communications has driven marketers away from their roots of being “market-centric,” social media is the catalyst that is forcing those roots to be firmly planted again. 

What does ‘Market-Centric’ Mean?  

Typically learned in Marketing 101, the three stages of marketing evolution are usually forgotten by time the next semester starts and it’s definitely ancient history by time students of marketing start their first job. Let’s look at a quick overview: 

• Product orientation: A focus on quality and quantity of output, assuming that customers would see out and buy items that were made well and reasonably priced. Typically demand for goods exceeded supply and finding customers and marketing is a relatively minor function. You could look at this mindset as “We build it, they buy it.” (Late 1800s – on)
• Sales orientation: A developed focus on sales as consumers tightened their belts resulting in less spending. Companies realized that they needed to stimulate sales and to do so they turned to advertising and aggressive sales tactics to move product. The typical management mindset is “If we build it, they will come.”  (1930s – on)
• Market orientation: A recognition that companies had to build what customers wanted to buy instead of what they wanted to make or sell. A market-oriented company is one that understands its market well and doesn’t create product (or services) unless they know there is already a demand. That’s a “market centric” mindset. Management knows “We don’t build it, unless we know they will come.” (1950s-on) 

The problem today, is that a lot of companies are still stuck in the product and sales orientation stages and consumers aren’t even aware of their products or are ignoring their pushy sales/advertising all together. There are many current challenges that this one post won’t answer, but I hope my slides from SES NY will get some wheels turning and demonstrate why companies need to become “market-centric.”

The Marketing Mix: Social media touches every aspect of the marketing mix from product development to pricing to distribution to promotion. But companies need to “listen” to what people are discussing online to take advantage customer and prospect wants/needs. For example “I really like X, but the price is too high.” If a company hears that sentiment more often than not, it’s time to consider your current pricing. 

The Four Ps vs. the Four C’s: For sometime there has been argument that the 4 C’s should replace the 4 P’s in marketing. I think we need a combination of the two in an attempt to balance the need to be market centric and meet market demand, but also to meet the company’s goal and objectives.   

Integrated Marketing & Communications: There seems to be a misnomer that “integrated” marketing and communications is simply about making sure marketing pieces match (i.e. seamless branding and messaging). That is only one part of what IMC is about. The main philosophy of IMC is to be data-driven. Typically, the only data companies could rely on was primary or secondary research or the data that sits in their CRM systems. Usually both don’t really tell you about the unique needs of your customers as individuals. That’s where social media can fill the data gap. Customers act completely different when they are in their “own online space” (i.e. social networks) than when they are being interviewed with questions that are orchestrated internally to either build upon an argument (“See, we proved there is a need for XYZ!”), develop PR (“Survey says…”) or get a pat on the back (customer satisfaction surveys). 

Why Integrate Social Media: Another misperception is that customers interact with marketing pieces (direct mail, email, ads, etc.). They do not. What they do interact with are the brands that they have a relationship with. And now with social media, they don’t only interact with brands but the people that represent those brands. 

Thirty Seconds: That’s how long you have to capture someone’s attention and change their perception or get them to act. By sending mixed messages or messages that are ineffective you’ve wasted those precious seconds and your budget. 

The Problem with Integration: Silos. Companies function with too many silos. This is particularly an issue within marketing. There are too many functional teams, too many separate budgets and too many politics. At the end of the day, customers do not care about your internal silos and pandering to the silos is an ineffective way to do business. 

Five Key Steps to Integration:  

• Identify your customers and prospects
• Estimate the value of your customers
• Plan communication messages and incentives
• Estimate return on customer investment
• Evaluation and future planning               

If you want to learn more about these five key steps, pick up a copy of Don & Heidi Schultz’s book: IMC The Next Generation: Five Steps for Delivering Value and Measuring Returns Using Marketing Communications. 

Integrated Companies: I selected two B2C companies and one B2B company that I see as doing a great job to integrated social media into their marketing mix. They are Geico, Coldwell Banker and BreakingPoint. Again, it’s not just about cohesive branding/messaging, but listening and evolving.

Is your company market centric? If so, what are the benefits? If not, what are the challenges?

There is so much buzz and hype around social media, it’s hard to determine if/when social media has real proven  success for a business. Well, we have found the perfect case study for you! Mari Luangrath owner of Chicago’s well-known and loved gourmet cupcake bakery, Foiled Cupcakes, uses ONLY social media to market and, yes grow, her business. [Updated: By the way, check out what Mari's fans have to say about her cupcakes and finding her via social media!]

Beth Harte:  Mari, you are a successful entrepreneur and on your third adventure with Foiled Cupcakes, a gourmet cupcake bakery serving Chicago. When it comes to marketing your business, how has using social media helped you to brand and grow Foiled Cupcakes? 

Mari Luangrath: Social media fell into our laps, quite honestly. We launched our business primarily using Twitter without knowing a single thing about it. And by connecting with new people who found our story interesting, we haven’t had to use a single traditional marketing initiative yet. All of our business growth has happened organically via word of mouth referrals and online buzz. To date, 93 percent of our business has come from social media leads and we’ve surpassed our initial revenue target numbers by over 600 percent. 

BH: Even though you’re a bakery, you don’t have a storefront. Are you telling us that integrating a website with social media can help companies to still deliver personal service, get delicious cupcakes (AKA ‘product’) in people’s hands *AND* make money? 

ML: That’s correct. We operate without a storefront so we can focus our energy on personal service. I really do believe that’s what sets our business model apart from our competitors. We know every single one of our customers by name. We’ve probably had a good Twitter or Facebook conversation with them before they even call us. We have a relationship with them in which we’re invited to their corporate events, birthday parties, weddings, and girl’s nights. Because community and interpersonal relationships are at the very top of my personal value chain, I can’t imagine doing business any other way. 

BH: You have a bunch of followers and fans on Twitter and Facebook. And just like your cupcakes, I am guessing it’s about quality…not quantity, right? How can we get companies to recognize that? What’s your secret for using Twitter and Facebook? 

ML: It’s absolutely about quality. It’s easy to get a ton of Twitter followers the wrong way. But what good is that if there aren’t any business leads as a result? My personal opinion, based on my experiences, is that interaction with the community is key. You can tweet all day long. You can update your Facebook page all day long. But are people listening? They’ll listen if they know you care about them. So my personal mandate is that I reply to every single tweet and make a comment on every single post to our Facebook page. And once we interact, the community realizes that we care about their thoughts and opinions. And then they become engaged. 

BH: You’re a smart business owner…are you demanding social media ROI? How would you advise business owners to think about ROI in a way that doesn’t snuff the life out of their social media programs? 

ML: That’s a tricky question. There are no standards by which to measure ROI (yet) in social media. That said, I’m not sure there’s a magic formula for results, either. But the great thing about social media is that it’s very dynamic, fluid, and testable. Throw something out there and see if people respond. Like any marketing program, I always try to begin with the end in mind. What do we want to accomplish? Who is going to care about what we have to offer? We identify the answers to those questions then work backwards. And the other thing? We don’t spend a ton of time on it either. A Tweet or a Facebook status update are fleeting moments in most people’s eyes. Spending more than a minute or two figuring out what to write, in my opinion, is just a waste of time. Get it out there and see what happens. 

BH: Who doesn’t love a delicious cupcake, right? But I am willing bet that when it comes to marketing and selling you’ve encountered speed bumps along the way just like any other business. What strategies/tactics are you using to get folks to head on over to your website to order up some shiny happy goodness? 

ML: I’m not a big believer in push marketing. I just don’t think it works. It never works on me, and I’m actually more or less turned off by people who blast their message in my face. For us, it’s all about community. We get involved in conversations around pop culture, shoes, weather, chocolate, travel, music, or traffic. Those tend to be very relatable things across the board. We support other businesses and help bring awareness to charitable causes we believe in. And I’m pretty sure that it’s because we engage in conversations, people know who we are. Over 70 percent of our search words in Google have been “Foiled Cupcakes.” That means a lot, especially since nobody even heard of our company a year ago and we have spent exactly $0.00 on any sort of advertising or brand awareness campaign. 

In hindsight, the two things that were absolutely critical in helping us gain speed: 

1. Connecting with social influencers on Twitter in our target markets (the only real social networking platform we’ve used in which we’re able to interact with people we haven’t met yet.)
2. Making real life connections in person at networking events. Because refer people to companies they know, like, and trust, networking was absolutely key in making it all snap together for us. 

Final thoughts…All said and done, I think that social media is a great way to start a business. And it’s also a great addition to any business marketing plan. It doesn’t have to be a big time investment, and for the right personality it can be a lot of fun. Just be real and transparent. The community loves people like that.

* * * * * *

Thank you Mari for sharing your social media success with us. Now I want a cupcake!

Mari will be speaking at Search Engine Strategies NY (SES) on The Business Value of Social Media on March 25th. If you’re at SES, be sure to attend the session, it’s sure to please! 

[Images: Cupcakes, Foiled Cupcakes. Mari, ideaconference.org]

Trust us when we say, that bite is truly avoidable! How? Understand your market (from their viewpoint) and plan well. 

It’s not enough to ‘think’ you know your market. While primary and secondary research tends to give marketers insight often both can be skewed or biased by asking questions that the researcher knows (in advance) will provide the answers required internally to make a case for releasing a new product, service or campaign. As for secondary research, we urge you to ask yourself two questions before using the findings: “What was the methodology and is it sound?” and “How do these research findings help the company sell more of ‘their’ products and services (i.e. is it self-serving)?” At the end of the day, the key is to understand your audience, especially where they live on-line and why/how they interact. Doing so will provide you with a true sense of the culture and community that might have developed.

Why plan? Well that should be obvious, but a lot of marketers still struggle with planning. In the social media space knowing the audience first and planning accordingly should be your top two priorities.

We have seen over and over examples of companies that may have missed the mark in both areas and as a result may have felt a bit of a social media bite (Southwest Air,  Tropicana, Pepsi, Motrin and more).

In time organizations will learn, hopefully, that doing social media to be cool or to push messaging just doesn’t work. Using social media as a channel is a legitimate marketing endeavor and it’s important to understand that the channel is full of people who hear you and talk back.

Now, I know what you are thinking… Social media might be dangerous for your brand. But in reality, you can’t stop people talking about your brand online. At the end of the day is a negative reaction in the social media space truly a bad thing? It’s can be an opportunity to turn around a situation that without social media you might never have known about. In the past you would have just lost a customer or ten (word of mouth is just as powerful as social media!).  If getting feedback helps a company learn what their market wants, identify their true evangelists and perhaps even develop new products/services is it worth it? Forrester thinks so.

What do you think? Time to take a few steps back before diving into social media without audience research and a smart plan?

[Image: www.natgeoprogramming.com]

A Candid Interview with Pauline Ores, Social Media Strategy, Principal Analyst, IBM Market Insights (Part 3)

With challenges, lessons learned, and strong social engagement experience under her cap, Pauline Ores shares with us the future of social media including issues, truths and where to place social media focus when it comes to business objectives.

1. Where are you heading with social media? 

Speed of adoption attests to quantity and breadth of social media value. Most people would agree by comparison, the value social media as a modified push marketing tactic is negligible. That said, as desktop publishing transformed the field of graphic arts, I have no doubt social media will transform the field of marketing― even if firms elect not to participate.  More and more consumers expect, if not demand, companies pay attention and stay in sync―in terms of product development, customer service, business strategies and models and more.

Personally, the is the aspect I find most interesting are the new interactions social tools and services enable―so in some ways, I’m less focused on social media then most. An unusual pursuit perhaps, but well supported here, as IBM has a long history of exploring problems from a variety of perspectives. At the same time I would never want to give up working with colleagues on the execution of near-term social media tactics and research, as that helps ensure longer-term plans add value.

2. There is a lot of wrestling between PR firms, digital agencies, and the new “social media” agencies about which of these firms are more equipped to offer strategy, research and execution services.  In your opinion, who should do what?  From the client side perspective, which pieces belong where?

Like any other engagement, the key is who, not which―it’s about who you will be working with at these firms vs. the types of firms. 

In terms of execution, my personal preference would always be to work with a team that has actual community building experience, a team that can point to a community or social platform they built―demonstrating they truly understand what it takes to people to join and actively participate. Too many people assume if their vendor understands social applications and platforms, and have personal experience using it themselves, i.e. their own blog, they have what it takes to build a community, which is not necessarily the case.

For strategy, I would lean towards the team that can deliver a social media strategy centered on business vs. social media activities. One that would articulate how an investment in social engagement program furthers the overall business strategy, delivers on the brand promise and helps the business evolve. This suggests a consultative-focused engagement, so their ability to closely collaborate with their clients would be another important factor.

3. What are some of the biggest issues in social media today?

What we might define as issues today stems from social media marketing’s need for a variety of supporting elements evolve―marketing, funding, business processes, resources, internal skills, etc.  Social engagement programs have different requirements but are of course, executed in an environment almost exclusively optimized for traditional marketing. For example, it is not uncommon for marketing programs to have a defined beginning and end, and be funded quarter-by-quarter whereas, in some instances you’d have social engagement programs that, ideally, never end.

In terms of execution, investment for new social media programs involves shifting funds from marketing activities that can demonstrate ROI, on the assumption the new social media program will provide more value, however social media rarely provides comparable measurements. We’re all faced with a similar challenge – measure marketing ROI and the unique value only social engagement programs can provide, with few if any social media measurement applications and standards.

In B2B arena prospects, clients and partners see great value in engaging employees, so locating subject matter experts and growing internal involvement can quickly become a bottleneck―not insurmountable, but again, specialized processes and applications would help.

Longer term, to be truly effective, as large scale social media programs are rarely contained in single department, we’ll need scalable systems capable of coordinating activity across different roles, departments, and divisions.  This system will need to manage the massive amount of ‘outside-in’ dialog, route this to the right teams, and help track value of both the internal and external contributions. Challenging, yes, but not impossible.

Taking a ‘helicopter’ view, this is the same lag in development we’ve seen time and time before.  As social media marketing teams discover and clarify their requirements, it is inevitable that marketing teams, agencies, and developers will spring up to address them, just as they did for search and web marketing. New organizations like the Social Media Advertising Consortium, SMAC.org, are working with clients, vendors, and agencies on common vocabulary, practices and metrics.

Thank you Pauline!
Pauline, it was great to be able to spend time with you and get a peek into how IBM is leading B2B companies with their enterprise social media development! No doubt we’ve all learned how it is possible for large companies to successfully implement social media in an effort to connect employees to each other and employees to customers. Thank you.

A Candid Interview with Pauline Ores, Social Media Strategy, Principal Analyst, IBM Market Insights (Part 2)

Pauline shared with us yesterday how IBM is strategically and tactically addressing social media. Today we’ll learn from Pauline why:

• Larger companies might just have an easier time implementing social media;
• Being a talented traffic controller is important;
• Basic training isn’t enough to ensure success; and
• A market researcher can help you take the garbage out.

1. How difficult is it for a company the size of IBM to implement enterprise social media development?

We are a very large firm with nearly 400,000 employees worldwide, but the advantage of a social approach is that size becomes an asset rather than an obstacle―as more members join and help develop the program, we get a more and more valuable contributions. The more teams join the easier it is for our enablement teams to understand how to best support, mentor, and guide their programs.  Having played such a large role in defining the program participants don’t need to be sold and furthermore, help spread the word.  So contrary to what you might expect, getting many different teams to collaborate speeds up the process.

2. What are some of the key challenges?

For us, beyond delivering actionable insights we have to ensure research results flow to all the right teams.  Obviously we share the resulting insights with teams that commission the research but there is potentially even more value to be gained by sharing these same insights with other departments. So our next challenge is to develop communication channels and connections to ensure we inform a variety of roles and teams, which as you can imagine could easily become a major air traffic control issue.  Ideally we can also track the impact these insights help deliver, demonstrating the value of our social media research and execution investments.

Social media has much more to do with who you are, as individual or a company, than what you do― it makes the boundaries around firms translucent if not transparent. IBM has a strong values-based culture and is committed to its clients―so for us, social media tools enable our teams to respond more quickly.  If your firm doesn’t have clarity in terms of brand values and/or doesn’t encourage staff to put customers first, I would suggest social media should be the last, not the first, step of a much longer process.

3. What advice can you give on internal skills development for social media?

Invest in and adopt social media and collaboration tools internally―they enable employees to quickly provide the much larger and more detailed responses external social media interactions often demand, as well as provide an internal sandbox where, assuming they’re new to these tools, they can learn and practice.

Realize that a few quick ‘101’ application tutorials, how to use Twitter, isn’t enough, as it’s not the tools that make it happen, it is what some refer to as ‘social engineering’ or community building practices. Having even a few resources with community building and engagement skills will ensure you have a program that delivers value for both internal and external participants―which again is key to success.

If you don’t have that expertise in-house seek outside help, but make sure any agencies or consultants can walk the walk and provide references of pointing to communities they built vs. pages, sites or applications. I can’t stress strongly enough how critical community building and engagement skills are to success. Locate the resources you have or hire in, then have those people mentor others to grow your corporate skill set.

4. How mature is the market when it comes to research tools (often called “buzz monitoring” or “listening” tools)?  What is the sophistication level of what is out there?

Not sure if you are referring to sophistication of the tools, processes or clients, but all three are evolving.  For clients, I think it’s important to realize social media research tools today are market research tools, and having market research professionals involved in the process provides value. Secondly, clients should realize the tools themselves are not a panacea, it’s very much GIGO― ‘garbage in, garbage out’―process, great results require a lot of upfront work and planning, which again is something a trained market research professional can provide.  IBM’s best-of-breed Market Insights team played a large role in increasing the value we get from these research tools.

Social Media are just tools, right? Wrong. Pauline shares why tomorrow.

In tomorrow’s final post Pauline will share with us why companies need to stay in sync, why social media is more than tools, and why the ‘who’ is more important than the what. HINT: Not all agencies are created equal.

A Candid Interview with Pauline Ores, Social Media Strategy, Principal Analyst, IBM Market Insights

Recently, I had the pleasure of meeting with Pauline Ores, Social Media Strategy, Principal Analyst, IBM Market Insights, where we discussed her role at IBM and where IBM is heading with their social media endeavors.

In this three-part series, Pauline will discuss the social insights practice, strategies and tactics, insights and lessons learned, how their employees are the core of social media, and the future of social media.

1. What is your role at IBM?

I’m focused on what IBM can do to accelerate and amplify the growing number of IBM employee-led social engagement programs, ensuring they benefit all participants, inside and outside the firm.

On a day-to-day basis I’m involved in two related but different activities. Tactically we’re defining how social media research should be used to inform measure and in some cases coordinate cross-IBM social engagement. We also consult with marketing teams helping them integrate social engagement approaches into their larger marketing activities―which isn’t to say we have all the answers, often it’s a matter of introducing teams who then help each other.  Strategically, I am focused on understanding how social media will transform the field and practice of marketing and communications.

2. Why is social media important at IBM?

Our strategy is to lead in the market with our employees―put our employees first as the ambassadors of our brand. Our role in marketing and communications has shifted from being the channel of communications to better enabling our employees to be the face of the company.

As you know, IBM has been researching and developing technology and solutions in the social computing space for decades―ranging from advanced text-analysis of unstructured content to collaboration software. The earliest adopters of social media were IT programmers, and in many ways they defined many of the basic tenets of today’s ‘Internet culture,’ and so we’re fortunate as it is an integral aspect of how we work with each other, as well as with clients and prospects.

3. What approach have you taken to enterprise social media development at IBM?

Personally, I’m a big believer in the ‘near and far’ approach―iterate quickly as a means of arriving at a working solution and, at the same time, reflect on how to best define the problem. Having been involved in the launch of several new fields, I’ve learned problem definition and scope, a ‘meta’ consideration that is all too often assumed, has an enormous impact on outcome.

Say for example, you set out to produce Wikipedia’s three million plus English articles―and by default, you rely on the same hierarchal, linear process used to produce print encyclopedias. In retrospect, it seems obvious this process won’t scale, but if Wikipedia didn’t exist, an unreflective ‘execution-driven’ approach would have started down that path, presumably cutting off any thought of such a large, living resource. My point here is that Wikipedia’s open and highly collaborative methods of production are an integral element of what it achieved.

Thinking about the best approach for an enterprise social media research and enablement program, we realized anything other than a social approach would quickly hamper development. We settled on a federated model, one where teams would retain control of their own funds yet benefit as a member of an enterprise-wide program.  The result: more teams than we imagined wanted to participate, which in turn has accelerated the program’s value in terms of research, collaboration and peer-to-peer education.

So, how did IBM implement social media across the enterprise?

Be sure to stop back tomorrow for part two of this interview series to find out! Pauline will share how IBM has addressed and implemented their enterprise social media development approach. HINT: Larger is sometimes better!

Rupert Murdoch the CEO of News Corporation is really creating a bit of buzz in the Search Engine world.  Why?  Well it seems that Murdoch believes that his collection of news sites which include U.S.  media outlets such as FoxNews.com, the New York Post, the Wall Street Journal and international news outlets such as the Daily Telegraph in Australia, The Sun and The Times in the UK as well as channels such as National Geographic, would not suffer greatly if he blocked Google from accessing them and allowing Google to have them in their index and offering them up as relevant search results for searches done on the site.

So is he crazy?  Does he really realize the effect that taking such a drastic measure will have on his search traffic?  I would suppose they have some inkling since Jonathan Miller, News Corp’s chief digital officer was quoted by the Telegraph.co.uk as saying

“The traffic which comes in from Google brings a consumer who more often than not read one article and then leaves the site. That is the least valuable of traffic to us… the economic impact [of not having content indexed by Google] is not as great as you might think. You can survive without it.”

I cannot claim to be an expert of News Corp’s properties or their properties’ demographics, but most people consume their news these days via hearing about it on a site, primarily social media sites, and then going to a search engine to find out more.  It’s happening more and more these days – look at how much Twitter and its trending topics affect how people search.

When people see things trending on Twitter, say for example like Kayne or Taylor Swift when Kayne so rudely interrupted Taylor’s acceptance speech for an award.  On Twitter you saw that both Kayne and Taylor Swift were trending terms shortly after the incident happend.  Without going to a search engine to figure out why they were trending, you’d have to guess through the tweets that were happening.  By going to the Google, at that time, searching for either one of their names produced a news one box with links to news articles that contained a lot more relevant information.

While Miller says the traffic received from Google is the least valuable, I wonder where they are looking to get more valuable traffic?  Other than relying on their return visitors through bookmarks or direct type ins, there’s not much more valuable traffic.

Social Media although it looks like it could be the answer to all their prayers, if you take a look closer, it’s likely even less valuable than Google’s traffic.  News media sites primarily focus on social news sites like Digg, Fark, Reddit or Ballhype.  If they are expecting better traffic they should really look at how members of these communities function.  Community members in these sites click on the story to see if they want to vote for it and immediately leave to go vote on more stories back on the social news sites.  This type of “hit and run” traffic is a lot less valuable if you are trying to get the visitor to stay on the site longer or view other  pages.

At least with search traffic coming from Google visitors stay on the site longer, especially if there’s photos or videos to interact with on the content, because they want to become educated on the topic they searched for.

All of this hull-a-baloo that Murdoch is making sounds more like someone who’s just pissed off with the popular kid they were playing with and wants to take his toys home so no one else can play unless they come with him and that hopes the rest of his “gang” will follow him back to his house.

If other news sites actually start analyzing their web analytics for their sites and really break down the search traffic, I have a feeling they are going to continue to “play” with Google because they will find the traffic from Google is actually quite valuable.  They also might find that while Social Media News Sites will drive traffic, if they segment that out and analyze that as well, they can see a difference in the quality via time on site and pages viewed.

So what say you?  Is Murdoch crazy for pulling his sites from Google or is he’s one of the smartest guys to try and start a “Google Revolt”?