EMBA Worldwide. Are you ready? You can be
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1 EMBA Worldwide Are you ready? You can be
2 Value-Creating Strategic Social Media Marketing" University of Pittsburgh Katz Graduate School EMBA Webinar Series Andrew T. Stephen Assistant Professor of Business Administration and Katz Fellow in Marketing November 12,
3 Andrew T. Stephen Assistant Professor of Business Administration and Katz Fellow in Marketing Research on social media featured in: Wall Street Journal Businessweek Financial Times The Economist New York Times Washington Post Chicago Tribune Social media marketing consulting with: American Express Colgate-Palmolive Delta Google Dynamic Logic
4 SOCIALIZED BUSINESS PRINCIPLES FOR VALUE-CREATING STRATEGIC SOCIAL MEDIA FOR BUSINESS AND MARKETING Andrew T. Stephen, PhD University of Pittsburgh, Katz Graduate School of November 12, 2014
5 WELCOME TO THE WEBINAR! Today s plan What social interactions through social media mean for businesses The right (and only) perspective to take on the strategic use of social media for business and marketing A framework for things that should be considered when building a strategic social strategy Let s make this interactive If you have questions please tweet them to me Use the hashtag 2014 Andrew T. Stephen 5
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7 CRITICAL DISTINCTION Typical traditional marketing perspective Company Customers Social marketing perspective
8 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
9 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
10 INFORMATION FLOWS OVER SOCIAL TIES Social interactions are the basic building blocks of social media marketing & social strategy Strategic marketing challenge is to determine how to leverage these interactions for your benefit I.e., where s the value add? We talk a lot about engagement What we really mean is social interaction
11 LET S START WITH SOMETHING SIMPLE WORD OF MOUTH Possibility 1 this happens organically What can marketers do to take advantage of this? Possibility 2 this doesn t happen without a push How can marketers make this more likely to happen? The challenge for marketers is to work out how to make these social interactions happen and then leverage them to create some value Value to the marketer / company / brand Value to the people involved in the social interaction
12 KEY CONSIDERATIONS FOR SOCIAL INTERACTION STRATEGY WHAT is your goal? WHAT TYPE(S) of social interactions do you want? WHERE, WHEN, and HOW do they happen? WHO is involved in them? 2013 Andrew T. Stephen 12
13 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
14 THE VAST MAJORITY OF BRAND-RELATED DISCUSSIONS HAPPEN OFFLINE Various estimates, but think of it as an 80/20 rule Approx. 80% offline In other words, whatever you catch people saying online is just the tip of the iceberg And people share online in social media what s happening to them offline with companies Opportunity to use online to identify and solve offline problems
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16 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
17 CREATE VALUE BY CONNECTING PEOPLE TO EACH OTHER You are building networks of customers
18 THESE CONNECTIONS CAN BE VALUABLE 1% increase in social media posts in community 16% increase in new customer sales 3% increase in repeat customer sales 1% increase in traditional media / PR 0.48% increase in new customer sales 0.08% increase in repeat customer sales
19 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
20 HOW LIKELY IS ANY GIVEN TYPE OF SOCIAL INTERACTION TO OCCUR? E.g., word of mouth What is the probability a consumer will transmit WOM (share info, etc) about a specific brand or product? How can these be activated?
21 BUT ARE WE DEALING WITH LOW PROBABILITIES? 20 well-known global brands Online survey of 300 Americans in January 2014 How likely would you be to talk to someone else about [product]? 0 = definitely would NOT talk 10 = definitely would talk
22 A can of Diet Coke An Apple iphone A copy of Microsoft Windows 8 operating system software A Big Mac from McDonalds An Intel computer processor chip A Samsung LCD TV A Toyota car A Mercedes-Benz car A BMW car Tickets to Disney World A Cisco wireless internet router A Hewlett-Packard printer A Gillette shaver A Louis Vuitton bag A Nokia cell phone An Amazon Kindle Fire e-reader/tablet A bar of Dove soap A State Farm car insurance policy A bottle of Heinz ketchup A cup of coffee from Starbucks Probability transmit WOM =?
23 Average P(transmit WOM), 0-10 scale
24 WHY DON T PEOPLE TALK? Two things a consumer has to do 1. Decide whether or not to transmit (talk or not?) 2. Decide what to transmit (what do I say?) Not having something to say is often the problem How to overcome this?
25 ONE APPROACH: INCENTIVES
26 ANOTHER APPROACH: CONTENT STRATEGY E.g., Facebook Brand Post Text Rich media
27 ALMOST EVERYONE IS DOING IT 38% unsure of Facebook s effectiveness 88% using social media 34% believe they are effective at it 60% intend to increase budgets this year Avg. 24% of mktg budgets alloc. to content mktg 70% unsure of Facebook s effectiveness 42% believe they are effective at it 58% intend to increase budgets this year Avg. 30% of mktg budgets alloc. to content mktg 87% using social media Source: Content Marketing Institute Trends 2014
28 OUR STUDY: FOCUS ON ENGAGEMENT How to design and disseminate branded social media posts that: 1. Maximize positive engagement (likes, comments, shares, clicks) 1. Minimize negative engagement (negative feedback)
29 ENGAGEMENT ON FACEBOOK Positive engagement Likes Comments Shares Clicks Negative engagement Negative feedback
30 MAIN FINDINGS: TOP-3 DRIVERS OF ENGAGEMENT To increase To decrease Likes Comments Shares Clicks Negatives Content does NOT feel like advertising Content does NOT feel like advertising Content does NOT feel like advertising Be positive and exciting Be visually appealing (looks good) Content is relevant and fits with the brand Content is relevant and fits with the brand Content is relevant and fits with the brand Don t be too humorous/funny Don t be negative or too emotional Don t be too positive or exciting Ask a question Don t include a video Don t include a photo/image Include a photo/image
31 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
32 SUCCESSFUL SOCIAL MEDIA TAKES TIME YOU RE BUILDING RELATIONSHIPS It might take time to see results, but the investment can be worth it Example: study of how traditional earned media vs. social earned media affected daily sales for US ecommerce website Social activity (e.g., in online forums, social sites) doesn t generate a big impact on a per-post basis but over time the little effects add up because they are frequent The social community matters because it contains your most loyal customers
33 Brand is built on relationships Hotel guests were posting RC experiences on social media Hotel started by replying, saying thanks, etc Took it further and created a web app to host content
34 VALUE-DRIVING SOCIAL MEDIA MARKETING Connections Incentives Online and Offline Activation Social Interactions S.O.C.I.A.L. Long-term Perspective
35 SUMMARY / TAKE-AWAYS Successful uses of social media for business and marketing require strategic thinking Ask yourself: What value am I getting from this? Be innovative and think outside of the box. Experiment with things Realize that social media is not a push medium, it is a relationship- and connection-building medium Take a longer-term perspective
36 QUESTIONS?
37 EMBA Worldwide Are you ready? You can be.
38 Value Proposition Our Reputation Career Success Worldwide Impact ROI Program Details
39 Pitt s Reputation University of Pittsburgh celebrating 225 years of education excellence Member of the prestigious Association of American Universities (one of only four in PA) Nearly 300,000 graduates worldwide
40 The Joesph M. Katz Graduate School of Business Founding member of the AACSB Second oldest executive education program in the world More than 30,000 graduates in 160 countries worldwide Top 20 public MBA program
41 Katz Faculty Quality 97% with doctoral degrees 97% tenured, full-time professors Extensively and exhaustively published research and actively involved in creation of new knowledge Internationally recognized for teaching and research Global perspective teach in all three locations
42 Rankings 8 th program among U.S. public institutions 22 nd overall in the U.S. 57 th globally - Financial Times,
43 Career Success
44 The Katz EMBA Worldwide program is a comprehensive experience in business management where you will gain: The international language of business The ability to network yourself into a more successful career The tools to strategize effectively and lead others The vision to manage your organization more effectively
45 EMBA Curriculum
46 Extra Curricular Resources Executive in Residence Resource for all EMBA Worldwide students & alumni Résumé reviews, networking advice, interview experience Career advice on managing and growing within your present firm
47 Worldwide Impact
48 Global Executive Forums Delivery of core course content in a global context and in-depth study through elective courses. Insights into regional business practices and political, economic and social conditions. Integration of global class and enhancement of global network
49 Immerse Yourself Spring 2014: Pittsburgh, PA Global Executive Forum I Organizational Behavior Fall 2014: Europe Global Executive Forum II Business Ethics and Public Policy Negotiations in Business Spring 2015: South America Global Executive Forum III Strategic Visioning for a Global Future Strategic Leadership for Change Fall 2015: Pittsburgh, PA USA Global Executive Forum IV Faculty selected topics, to be announced *Topics and schedule are subject to change. **Students are subject to the rules of the Schengen Visa agreement and are expected to have the appropriate documentation needed to travel for the EMBA program.
50 Return On Investment
51 Return on Investment EMBA graduates received a 17.3% average salary increase by the end of the program. Over 60% of students are likely to recommend the program to a friend or colleague. Over 54% say they are extremely likely to support the program as alumni. -Executive MBA Council 2012 Student Exit Benchmarking Survey
52 Program Details
53 Program Overview 18 months in duration Classes in Pittsburgh are held on alternating weekends (Friday and Saturday every other weekend) International classes are held once per month (Wednesday through Sunday) Tuition includes: University fees, all books and course materials, hotel accommodations and select meals at the Global Executive Forums Financial aid: Next class begins May
54 Requirements Minimum five years full-time work experience or equivalent military experience Application form at Résumé University degree & transcripts Personal Statement (self-recommendation) Interview Two letters of professional recommendation GMAT (optional in some cases)
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