Social Networks: Marketing Fad or Future

Ford Fiesta Case

Campaign successful/not and what specific measures would you use to support your conclusion?

Yes, the Ford Fiesta movement was successful. Sales have been one of the more historically important measurements, but one must look at company campaign goals and objectives and assign statistical measurements to illustrate performance criteria. All Ford Fiesta campaign objectives (see Appendix 1) were reached and resulted in nearly 50,000 previously non-Ford consumers expressing direct interest in buying a Ford Fiesta (Stephen, 2010). “…returns from social media investments will not always be measured in dollars, but also in customer behaviors (consumer investments) tied to particular social media applications” (Hoffman & Fodor, 2010).

Consider campaign for other car lines? Do you think the idea is transportable?

The Fiesta is aimed at a first time, young, American buyers who also frequent social networking avenues/sites. Whether this campaign strategy is transportable really depends on the target audience and that group’s use of the different social platforms. Personalizing the target market’s advertising to specifically inhabit the social networking form they use is essential for success.

The new marketing strategies are looking to create a hype or anticipation for a product. For example, Ford kicked off its Fiesta campaign in April 2009, but the first Fiesta sale within the United States did not occur until the summer of 2010 (Stephen, 2010). It’s all about the pre-market buzz strategy which is the focus and that’s why Ford selected 100 agents that were “socially vibrant, unique, and able to tell a good story” in addition to the fact that they had an established presence in many of the online social networks (Stephen, 2010).

Next campaign suggestions and is there an ability to move into 2011 with this idea? How to keep social media campaigns alive and vibrant? Suggestions on turning leads to sale and do these leads present any additional opportunities for marketing the Fiesta in the US?

Ford needs to keep their agents engaged in the product. Possibly through creating an interactive iPad application that pulls in the social network media avenues such as blogs, Facebook, and twitter streams. In addition, Ford could launch a 2012 Ford Fiesta contest that would once again provide agents with a 6 month free lease of the car. Constantly linking the next iteration of Ford Fiesta contests and utilizing the latest social network marketing tools. “Segmenting the market appropriately allows marketers to reach people who can ignite the fuse of interest among others. This is essential to starting trends among potential and current customers” (Wright, Khanfar, Harrington, & Kizer, 2010).

Sunsilk Case

Personal Experience

The redesigned Sunsilk “community-led” website was launched in 2006 and provided a complete, interactive experience aimed at making girls feel special (Thalluri, Chiranjeevi, & Chowdary, 2009). As CEO Sharat Jain said, the move is away from advertising and towards rich content (Thalluri, Chiranjeevi, & Chowdary, 2009). The makeover machine is a fun experience that engages the customer and as well as other intangible benefits as gleamed from the site such as, “increased customer loyalty, better consumer insights, and research & development, buzz marketing, and updated customer services vs. conventional advertising that is becoming obsolete due to high costs, advertising ineffectiveness, viewer reluctance, and non-engagement of customers” (Thalluri, Chiranjeevi, & Chowdary, 2009). Consumers have become more advertising resistant and so the savvy marketer must now become more subtle and subliminal with their messages, making them part of the entertainment instead of a diversion from it (Wright, Khanfar, Harrington, & Kizer, 2010).

Reference Groups

The Sunsilk target consumer can identify with the interactive Sunsilk site in that site users are almost entirely made up of female users who share common bonds/interests. Discussions held in Sunsilk forums, tend to act as word of mouth (WOM) marketing and these forums act as reference groups in spreading product information.

Brand Endorsers/Opinion Leaders

Sunsilk selected celebrity/fashion icons to influence the reference group. These included a Bollywood star/former Miss World celebrity in addition to many other celebrities who now add to the site through their blog posts. Their importance came not from pushing the brand, but rather by attaching and creating “brand re-caller” (Thalluri, Chiranjeevi, & Chowdary, 2009).

Company researching customer base

Sunsilk now can interact with consumers through two-way communication with longer lasting interactions and oversee these engagements to analyze consumer wants, needs, desires, aspirations. As a result, the company can create a more personalized, tailored relationship (see Appendix 2). This is in sharp contrast to the paper based questionnaires of past, that are time consuming and provide limited analysis. The consumer has become informed and is active in forming his/her own marketing environment. “Social media allows anybody to become a producer of such content [news, information, and entertainment], and deliver it through interactive communication in the form of a pyramid, based on relationships” and Sunsilk has done just that (Dong-Hun, 2010).

Mercedes-Benz Case

Linden Lab sustainability; strengths and threats, as well as external environment analysis

Strengths- Second Life (SL) application research has shown to foster educational opportunities such as providing enhanced distance graduate education, collaboration, teacher development, and scientific literacy having a positive influence on society (Dieterle & Clarke, 2008 through Du, 2011). In addition, there are a number of technological business advances through SL such as increased efficiencies through a variety of communication channels and providing real time interaction and leadership opportunities as outlined in Appendix 3.

Threats- Trademark protection, through an economic and political view, has come into focus as online communities expand and grow. “Maintaining the integrity of trademarks is part of the opportunity opened by online communities” (Acello, 2011). If unauthorized parties exploit brands within SL, companies will be forced to prosecute in order to protect their brand from potential dilution and ultimately loss of trademark in that if you don’t protect your trademark consistently as outline in the federal Lanham Act, you can lose it (Acello, 2011). Despite recent FBI involvement, gambling must be strictly enforced as outlined in the Gabling Enforcement Act of 2006 (Wyld, 2010). Additionally, taxation continues to draw focus in virtual worlds in that there is a Linden Lab tax, but real world taxation on earnings from SL is in hot debate with the European Union collecting VAT (value added taxes in addition to Linden Lab’s 15-25% tax) (Wyld, 2010).

Virtual worlds as an important part of people's lives or just a passing fad well hyped?

As long as SL provides relevant content, it will find a market to exist. “McKinsey has argued that virtual worlds will soon become indispensible tools for any company seeking to reach out to today's generation” (Richards, 2008 through Wyld, 2010). SL offers a consumer interactivity that has increased value and communication control in response to an ever changing environment (Constantinides, 2006).

Benefits to companies entering SL

There are solid benefits to be gained from certain companies entering into SL as long as they align the social networking medium with the targeted audience. The virtual environment breeds many benefits that can’t be easily ignored such as cost reduction, a safe/interactive test/trial environment, customer satisfaction, and speedy feedback loops. Companies must continue to access their future position and weigh the pros/cons of entry into new social networking platforms.

References

Acello, R. (2011). VIRTUAL WORLDS, REAL BATTLES. ABA Journal, 97(1), 30.  Retrieved May 29, 2011, from ABI/INFORM Global. (Document ID: 2238223251).

Constantinides, E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal of Marking Management 22, 407-438. University of Twente.

Dieterle, E., & Clarke, J. (2008). Multi-user virtual environments for teaching and learning. In M. Pagani (Ed.), Encyclopedia of multimedia technology and networking (2nd ed). Hershey, PA: Idea Group, Inc.

Dong-Hun, L. (2010). Korean Consumer & Society: Growing Popularity of Social Media and Business Strategy. SERI Quarterly, 3(4), 112-117,9.  Retrieved May 29, 2011, from ABI/INFORM Global. (Document ID: 2165371641).

Du, Y. (2011). A Measurement Model of Students' Behavioral Intentions to Use Second Life Virtual Environments. Journal of Education for Library and Information Science, 52(1), 41-53.  Retrieved May 29, 2011, from ProQuest Education Journals. (Document ID: 2253611431).

Hoffman, D., & Fodor, M. (2010). Can You Measure the ROI of Your Social Media Marketing? MIT Sloan Management Review, 52(1), 41-49.  Retrieved May 29, 2011, from ABI/INFORM Global. (Document ID: 2160222301).

Laudon, K, & Traver, C. (2010). Custom business resources: introduction to electronic commerce, systems, & web design met ad 648 Boston University. Boston, MA: Pearson Learning Solutions.

Owens, D., Davis, A., Murphy, J., Khazanchi, D., & Zigurs, I.. (2009). Real-World Opportunities for Virtual- World Project Management. IT Professional Magazine, 11(2), 34-41.  Retrieved May 29, 2011, from ABI/INFORM Global. (Document ID: 1662687161).

Steven, A. (2010). Ford Fiesta Movement: Using Social Media and Viral Marketing to Launch Ford’s Global Car in the United States. INSEAD, The Business School of the World.

Thalluri, P.V.S., Chiranjeevi, C.V., & Chowdary, N.V. (2009). Sunsilkgangofgirls.com: Crafting a Brand Positioning with Reference Groups. IBSCDC.org

Wright, E., Khanfar, N., Harrington, C., & Kizer, L. (2010). The Lasting Effects Of Social Media Trends On Advertising. Journal of Business & Economics Research, 8(11), 73-80.  Retrieved May 29, 2011, from ABI/INFORM Global. (Document ID: 2203781651).

Wyld, D.  (2010). A Second Life for organizations?: managing in the new, virtual world. Management Research Review, 33(6), 529-562.  Retrieved May 26, 2011, from ABI/INFORM Global. (Document ID: 2056802531).

Appendix 1

Ford Fiesta Movement Campaign Objectives

(Stephen, 2010)

i) Build awareness of and interest in the 2011 Ford Fiesta

ii) Convince the primary target market of young American consumers-many whom were first-time new car buyers- that sub-compact company cars were functional and stylish. The pre-launch campaign not only had to generate buzz and interest in the Fiesta itself, but also have a consumer education component that was needed to demonstrate the functional and psychological (social , emotional) value in sub-compact cars.

Appendix 2

Interactive Marketing

(Wright, Khanfar, Harrington, & Kizer, 2010)

Appendix 3

Virtual-Worl Technology Capabilities

(Owens, Davis, Murphy, Khazanchi, & Zigurs, 2009)