The Business Of Social Media And Making The Roi Case

2/18/2014THE BUSINESS OF SOCIAL MEDIA AND MAKINGTHE ROI CASEVILASINI NARAYANANGM04966UMA DEVI MUNIYANDI GM04926QUESTION 1LET’S SAY YOUR CURRENT ANNUAL SALE IS 1 MILLION.YOU IMPLEMENT A SOCIAL MEDIA STRATEGY AND BEGANGENERATING 200 000 IN REVENUE THROUGH YOURFACEBOOK PAGE. AT THE END OF THE YEAR YOUR SALESARE STILL 1 MILLION.WAS YOUR SOCIAL MEDIA STRATEGY SUCCESSFUL? WHY ORWHY NOT?1

2/18/2014Marketing via SocialMedia1008093604020 Study shows that 93% of marketers usesocial media for business Only 7% ofmarketers say they don’t use socialmedia for their business. That meansthere are lots of people out theregetting involved and managing a socialmedia strategy.70Social Media Usage for BusinessUsableNon Usable It’s becoming more common to include social media as part of an overallmarketing budget or strategy, as opposed to when it was the outlier that noone wanted to spend time or money on however if I have invested in socialmedia for marketing purpose I would expect my sales to increase more thanwhat I have generated before using social media as a tool of marketing. Therefore if I generate sales same as before indulging in social media I wouldsay logically I have failed to use social media as a marketing tool to boost mysales.2

2/18/2014QUESTION 2EVERY SOCIAL MEDIA STRATEGY COST MONEY TO IMPLEMENT ANDWE LISTED A FEW OF COSTS IN THIS CASE STUDY.CREATE A MORE COMPREHENSIVE SOCIAL MEDIA STRATEGY COST.BRIEFLY DESCRIBE EACH COST AND IDENTIFY IT AS EITHER AS AFIXED COST OR VARIABLE COST.SOCIAL MEDIA COSTINGFIXED COSTVARIABLE COSTStaff SalariesExtra paid media (campaigns)Paid MediaExtra cost for content development(additional requirement)Cost to produce planned contentAdditional resources required forcontent development (feature updates)Training and educationCost for other campaigns (applicationssuch as mobile apps, microsite, agenciesetc)Software licensing and listening toolCost of associated starting community(existing (upgrade) or old(redevelopment))3

2/18/2014QUESTION 3Suppose you have well like business with a well liked product.One day something goes wrong and you ship 100,000 defectiveproducts. Almost the entire customer base is disgruntled.What social media strategy would you employ to help?Would you be better off just “waiting for it to blow over” oreven “sticking your head in the sand”? The best social media strategy to rectify this matter would beencourage interaction and build relationship. A briefexplanation and apology should be posted in the social media. This would create a sense of sympathy among the customers.Besides that customer would gain trust towards the companyand waiting for it to blow over or sticking my head in the sandwould not be a wise idea. This will make me to lose customer’strust and would hinder my business in the future. Competitors would use this as their winning trait and takeadvantage of my flaw. The best action would be own up tomistake and rectify it.4

2/18/2014QUESTION 4In the case study, we listed five steps to success. Identifytwo others and briefly discuss them. In my opinion one important criteria in using social media wouldbe identifying the target market. Boil your customer down toone or more personas in terms of demographics (age, gender,income, education) and psychographics (lifestyle). Marketresearch agency Forrester coined the term “technographics” todescribe how people use social media. They refer to it as the Social Technographics Ladder, and breakusage into six categories: (Next Slide) Important key to success is to be social or in another wordssocial media should have active interactions. For example cocacola fan page which manage to capture 77 million fans thusmanage to increase company sales5

2/18/2014Social Media StrategyHierarchySocialMediaMetricsSocial MediaTacticsSocial Media GoalsDepartment GoalsBusiness GoalsBusiness Mission6

2/18/2014THANK YOU7

Therefore if I generate sales same as before indulging in social media I would say logically I have failed to use social media as a marketing tool to boost my sales. 93 7 0 20 40 60 80 100 Social Media Usage for Business Marketing via Social Media Usable Non Usable Study shows that 93% of marketers use social media for business Only 7% of