Social Media as Relationship Marketing

What is the chain of cause and effect that makes social media work (or not work) in terms of "brand building"? It's quite obvious how it works in terms of promotion / sales support (making the right offers to people who are interested and getting in touch with their friends); but how exactly does it work for brands?

I have come to the conclusion that as soon as we say it works upon the brand's image (like eg advertising often does) - we are probably wrong. Or to be more precise - we use the wrong intermediate construct - image (some inner representation of the brand's qualities and traits).
If I were to measure social media effects I would rather not go for image profiles in terms of attributes connected to a brand. Why?

1. Because image is mostly about what a brand stands for and is good at and social media is about how a brand behaves on a daily basis and who it can relate to. What we normally want to express when we use the word "image" is not about brand behavior as a "persona" or its real-life relations to others. We could alter our concept of "image" but that's simply tweaking a concept to make it work somehow. I'm convinced social media doesn't need this tweaking.

2. I personally think social media doesn't change much about the perceived strengths or weaknesses of a brand's offerings as long as they don't get better in reality. Simply because it can't just go and make claims about them. People won't listen and will even make the brand look worse than before making those "image" claims.

3. It doesn't have enough reach to alter perceptions in the mass market. And that's what we normally mean when we think "image". We mean something we can measure in the whole target group, not in minor fractions of the target group.

I would frame social media in the field of relationship marketing where reach has never been the big question, where noone has even tried to create a juxtaposition between advertising and e.g. loyalty marketing. Once we do that new metrics come into play: brand loyalty measures, recommendation measures, share of wallet measures, even satisfaction measures and so on. It's also possible to classify it In the field of public relations or customer service or even market research. All of these disciplines/functions would never be staged as candidates to "replace" advertising or to try to claim that they alone can market products.

For me this very simple and un-fancy categorization was very helpful and resolved a lot of cognitive dissonances.

Maybe it will help some readers as well.

Metaphors of brand strategy


Metaphors are not quite conscious frames in our thinking that generate a certain kind of perception, throughput and output in our minds. Metaphors work through drawing a parallel between concepts thus transferring attributes fom one concept to the other. Planners usually are not aware that their thinking is guided by metaphors so that their output tends to be influenced but also unconsciously limited by them.

One of the well known metaphors in strategic thinking is "marketing = military/battle". So that words and images of Targeting, Forces, Impact, Strength, Penetration, Reach arise.

A metaphor that nobody is talking about as far as I know is that of "space". Leading to concepts such as Positioning, Territory, Moving from here to there in the positioning space, "The world of" etc. It's clearly connected to the metaphor of "battle" but has it's specific impacts on our thinking.

The "space" metaphor is static in its nature even if movement is possible on "the terrain". Think of positioning - THE branding concept of the last 30 years. Positioning is about settling down. Where? In the minds of the consumers - which again implies that minds are a space where you just decide "where" to place your brand. Set your claims "here". Positioning is obsessed with differentiation: it is allergic to sharing space with other brands. Positioning is positioning gainst the positions or other brands.

One limitation of this extremely powerful framing is: it does not acknowledge the active character of brands. Brands do things all the time and don't just sit in one certain spot in the brain. Not the brands as collective perceptions but brands people interact with. Thinking of brands as movements and not positions could generate different kinds of ideas.

Another bias of the "space" metaphor has to do with the human reluctancy to imagine a space with more than 2-3 dimensions or a curved space or a non-continuous space. On a PowerPoint slide three-dimensional spaces often exceed the viewer's visual capacities so we rather stick with two crossed dimensions. Within such a space brand positioning seems to be a choice of coordinates on the two dimensions. This systematically undermines our ability to think outside the box (again a spacial metaphor) and to open up new dimensions. Secondly, such a continuous positioning space implies that you could maybe move a brand "a bit" along those dimensions, whereas it might well be that in the mind of the consumer there is no such "a bit" but only gravity centers of attraction with a vacuum between them. There is a post in my blog dealing with the issues of "crosses". (here's another more detailed post about the issues of positioning crosses.)

What could be alternative metaphors that foster a different kind of thinking?
I wish a had simple and revolutionary answer at hand. All I have to offer right now are intuitions. Here are some of them:
- "energy", not space
- "organism", not space
- "motivation", not space

What do you think? And which metaphors do you use thinking it?

Recap: 10 Digital Communication Phenomena that Impact How Brand Building Works.



Communication in the digital space is often described in terms of platforms, formats and certain media touch points. (See illustration on the left - which I found here.) But what are the forces created by those platforms that impact brand leadership in the digital space?



1 Emancipation

Passive audiences become rather agents & producers (though by far not all of them!). People are better informed & media savvier than ever before & accept less bullshit (at least from corporations). 

It's not true that brands cannot communicate messages to audiences any longer - they still can. It's just that their messages lose unopposed credibility & share of voice in this emancipated world. Communicating one-way messages TO people becomes more difficult.




2 Voluntary Choice

The vast variety of media & content makes people free to choose but also overloaded by available options.  

Brands – in the digital world – should rather deliver content / utility that will be chosen by people voluntarily. On the other hand they have to be found - since people use all sorts of filters to make their choices (social filters, search engines, ...)




3 Transparency


Little can be hidden. All sorts of information can be found, compared and shared in the digital space.

Brands can not just rely on "lean messaging" that highlights certain positive aspects. Other aspects will come up even if they don't want them to.


4 Humaneness

Digitally mediated communication happens between more and more between people - although not exclusively so.

Brands in the digital social space rather should acquire a more human, personal touch and tone: less abstract, less perfect, less efficient, less "official", often more rooted in actual employees. 


5. Collaboration

There's not just communication but also conjoint value creation going on. Between brands & people even less than between allied people. E.g. when they start sharing things instead of buying them.

Brands could use people as cooperation partners not just consumers. I'm not very fond of this notion (I think there's too much democratic ideology to it) but I believe that at least on thing is definitely true: "people out there" often produce far more interesting & beneficial stuff than brands do. So brands need to cope with that or benefit from that somehow.


6 Social Diffusion

Content travels - through peoples' hands.


Brands have the possibility not just to attract people but also to distribute their communication through being interesting or useful to people. - instead of buying media space. 


7 Users


"Content" or "format" of communication used to be rather text, pictures, sound, moving pictures. Now "Software" is a new kind of "content"/"format". Apps, Games, etc. Instead  of being read or watched of listened to, these media objects are being used.

Brands can engage in software creation (in it's broadest sense, of course). 


8 Mediatization of Everything

Before there was "life" (and consumption an that kind of stuff) and there were media. Now life and media are much more interwoven. Think of mobile internet, augmented reality, eCommerce as such)

Brand communication could start caring more about the different contexts of life in which communication occurs.


 9. Speed

Communication in the digital space is faster.

Brand & organizations should develop a capability of deciding, reacting & communicating faster. (Being reactive in this field is a far less negative term compared to the world of classical brand comms.)



10. Hypes

Social mechanisms and speed of innovation generate "hot stuff" every second. They mostly come and go. New formats become talked about, then disappear. People talk of the "Age of so and so", but most of those "Ages" can be replaced by another one within 2-3 years.

Brands should not panic. Most things don't work for them. No ned to participate in every hype out there. Entering a game late does not necessarily mean losing the game.

Experience Design Approach

Possible Visual Representations in Channel Planning (1)


Opportunities for Brand Building via Social Marketing...

...seem to be bigger when ...
1. Potential to improve your offering digitally is high
2. Sales happen online
3. People talk about your brand already
4. Your brand is well known enough to be talked about
5. Your brand is not well known but the awareness figures you need are minute compared to those of   
    mass marketing brands.
6. Your brand can't afford classical mass media
7. Involvement with the product category is high
8. Involvement with the brand is high at least in some TGs
9. The brand's or its products' benefits are not trivial for people & society 
10. The focused TG is highly digitalized
11. You explicitly & deliberately want to loyalize and emotionally bind of your fans / most valuable clients
12. Your brand's image would be rather damaged by not taking part in new media / new trends
13. ...???...

I think i have something here I REALLY like

http://antonbreman.wordpress.com/

Jobs-to-be-done Paradigm: A Typology of Sub-Tasks in Every Human Behavior

Analysis of hundreds of jobs has revealed that all jobs consist of some or all of eight fundamental process steps:

  • define
  • locate
  • prepare
  • confirm
  • execute
  • monitor
  • modify
  • conclude.

The POST Method of Social Media Planning

POST-Planungsprozess

von Stefan Stumpp (Student Master MBU, Hochschule Anhalt)
„Die Medien sind nicht mehr ordentlich in kleine Kästchen unterteilt, die Zeitungen, Magazine und Fernsehen heißen. Die Leute stellen Verbindungen zu anderen Leuten her und ziehen daraus Kraft, insbesondere als Masse.“[1]
Mit diesem Zitat beschreiben Charlene Li und Josh Bernoff in ihrem Buch Groundswell : winning in a world transformed by social technologiesaktuelle Herausforderungen, mit denen Unternehmen in Zeiten der sozialen Technologien konfrontiert sind. Die neue Interaktion ermöglicht es erstmals auch den Konsumenten, persönliche Ansichten und Einstellungen über Unternehmen zu verbreiten. Daraus resultiert eine Notwendigkeit für Organisationen, ebenfalls an den Gesprächen teilzunehmen.
POST-Methode
Charlene Li und  Josh Bernoff liefern mit dem POST-Planungsprozess einen systematischen Rahmen für eine Social Media-Strategie. Das AkronymPOST beschreibt die vier Planungsschritte people, objectives, strategy und technology.
People
Zunächst muss vom Unternehmen die Zielgruppe für das jeweilige Produkt oder die Dienstleistung definiert werden. Anschließend ist eine Prüfung der Internetaktivitäten der Zielgruppe erforderlich. Dieser Schritt ist notwendig um zu erfahren, welche Social Media-Kanäle wirklich von den potentiellen Konsumenten genutzt werden. Eine Betrachtungsweise für die Internetaktivitäten der User liefert die Social-Technographics-Leiter von Forrester Research.
daniel_michelis_social-media-handbuch
Abbildung 1: Social-Technographics-Leiter [2]
Diese Abbildung liefert eine soziotechnografische Sichtweise und klassifiziert die Konsumenten nach ihren Internetaktivitäten. Je höher sich die Sprosse befindet, desto aktiver sind die Nutzer. Die Verteilung der Internetnutzer auf die definierten Gruppen der Social-Technographics-Leiter variiert je nach Geschlecht, Alter und nationaler Herkunft. Forrester Research hat das Consumer Profile Tool entwickelt, welches auf Grundlage von Datenanalysen eine genaue Zusammensetzung der Nutzergruppen darstellen kann.
Objectives
Der zweite  Schritt sollte die Unternehmen dazu veranlassen, spezifische Ziele zu definieren. Li und Bernoff benennen fünf Hauptziele, welche nicht primär auf betriebswirtschaftliche Zwecke gründen, sondern auf den Aufbau von langfristigen Beziehungen mit den Konsumenten:
Zuhören
Unter Zuhören versteht man die Analyse der Verbraucheraktivitäten im Internet, um Aufschlüsse über Kundenfeedback, Unternehmensreputation etc. zu erhalten. Verbraucher bloggen ihre Erfahrungen in Diskussionsforen oder geben Bewertungen über Produkte ab. Durch Zuhören lässt sich überprüfen, inwieweit Markenbotschaft und die Einstellung der Konsumenten zur Marke übereinstimmen. Es ist möglich, Informationen über Wettbewerber zu erlangen oder Reputationskrisen im Internet frühzeitig zu erkennen, um schnellstmöglich darauf zu reagieren. Letztendlich können die Verbraucher sogar Anstöße für neue Produkt- und Marketingideen geben. Für die professionelle Analyse dieser Informationen existieren zwei Vorgehensweisen: Die Gründung einer Private Community oder Brand-Monitoring.
Sprechen
Um mit den Verbrauchern in den sozialen Medien einen Dialog aufzubauen, existieren verschiedene Handlungsvarianten. Li und Bernoff beschränken sich auf die am häufigsten angewendeten Methoden. Dass sind die Verbreitung viraler Videos, eine Beteiligung an den sozialen Netzwerken, Blogs und die Gründung einer eigenen Community.
Energisieren
Dies beschreibt das Verhalten von Unternehmen, eigene Kunden als virale Vermarkter zu gewinnen. Diese verbreiten den Nutzen der Marke bzw. des Produktes, ohne dabei größere Kosten zu verursachen. Dies geschieht auf dem Wege der Online-Mundpropaganda und hat wesentliche Vorteile. Empfehlungen von Kunden sind glaubhafter als Werbekampagnen und aufgrund der viralen Verbreitung verstärkt sich der Werbeeffekt. [1] Ziel der Energisierung ist es, aufgrund von Weiterempfehlungen neue Kunden zu gewinnen. Bewertungen von Produkten, wie man sie beispielsweise auf Amazon findet, sind ebenfalls eine Form der Energisierung.
Unterstützung
Diese Zielstellung soll es ermöglichen, dass sich die Konsumenten bei Support-Fragen und technischen Problemen gegenseitig online unterstützen. Dadurch können aus Unternehmenssicht enorme Kosten für Call Center oder Hotlines eingespart werden. Für die User muss eine Grundlage, z.B. ein Support-Forum, geschaffen werden. Diese Foren sind geeignet für Unternehmen, welche Produkte anbieten, die besonders viele Fragen aufwerfen (z.B. Technologieprodukte). Eine noch engere Form der Kollaboration findet man bei einem Wiki. Dies ist eine Website, die inhaltlich auch von den Konsumenten bearbeitet werden kann.
Durch die kollektive Nutzung können Unternehmensbeschäftigte und Kunden eine enorme Informationssammlung erstellen. Das geistige Eigentum aller Nutzer ist zu jeder Zeit abrufbar und kann erweitert werden. Voraussetzung für beide Formen, Wiki und Support-Forum ist, dass ein Unternehmen genug Kunden besitzt, welche auch Beiträge liefern.
Integration
Li und Bernoff deuten Integration als die wirkliche Einbeziehung der Kunden in die Entwicklungs- und Innovationsprozesse von Produkten. Somit werden die Kunden ein integraler Bestandteil im Gesamtprozess der Produkterstellung. [1] Kunden können aus ihrer externen Sichtweise und in kollaborativer Zusammenarbeit schneller Informationen liefern als Forschungs- und Entwicklungsabteilungen. Dies liegt daran, dass die Konsumenten unvoreingenommen mit dem Produkt interagieren und Verbesserungsmöglichkeiten oftmals direkt erkennen. Ein Kundenkontakt über das Internet verläuft zudem schneller als eine klassische Umfrage oder Studie.
Strategy
Der POST-Planungsprozess bildet bereits eine grundlegende Strategie für Unternehmen, um ihre Kommunikationskanäle in die sozialen Medien zu integrieren. Li und Bernoff beschreiben in ihrem dritten Planungsschritt (strategy) die Veränderung der Beziehungen zwischen Unternehmen und Kunden sowie die Einbindung der Kunden in das Unternehmen. [1] Allerdings wurde die neue Rolle der Konsumenten bereits ausreichend, im Zusammenhang mit den von Li und Bernoff genannten Zielen, erläutert.
Technology
Nach Li und Bernoff sollte die Betrachtung nicht ausschließlich auf der Verwendung einer bestimmten Technologie liegen. Unternehmen müssen ein Verständnis für die Technologie und deren Nutzer entwickeln. Dies ist von Bedeutung, da sich die Technologien ständig weiterentwickeln.
„Erstens verändern die Technologien sich schnell. Zweitens sind sie nicht der entscheidende Punkt – das sind die Kräfte, die im Groundswell am Werk sind.“ [1]
Die folgende Tabelle gibt eine Übersicht über die Technologien, klassifiziert nach der Art der Partizipation der Onlinekonsumenten und nach ihrer Bedeutung für die Unternehmen:
daniel_michelis_social-media-handbuch_technologien
Tabelle 1: Technologie-Übersicht in Anlehnung an Li und Bernoff [2]
KUDOS-Modell
Der vorgestellte POST-Planungsprozess von Li und Bernoff soll für Unternehmen ein Leitfaden, für die Integration ihrer Kommunikationskanäle in den sozialen Medien, bieten. Die angebotenen Inhalte sollten darüber hinaus folgenden qualitativen Eigenschaften unterliegen: Das KUDOS-Modell [3] beschreibt die Kriterien:
  • Knowledgable,
  • Useful,
  • Desireable,
  • Open,
  • Shareable
Die Eigenschaft knowledgable besagt, dass die Social Media-Aktivitäten für den Konsumenten einen Wiedererkennungswert bieten sollten. Eine Kampagne, die keinen Zusammenhang zum Unternehmen aufweist, bietet somit auch nur einen geringen Wert.
Außerdem sollte mit dem preisgegeben Inhalt ein Nutzen für die Konsumenten geboten werden: Useful. Dadurch kann die Wahrnehmung einer Kampagne gesteigert werden. Social Media-Aktivitäten können z.B. einen Nutzen stiften, indem sie für den Konsumenten wichtige Informationen liefern.
Eine Ergänzung zum Kriterium Useful stellt  die Eigenschaft Desireable dar. Hierbei sollte der Inhalt, neben der Orientierung am Nutzen, als begehrenswert gestaltet sein. Dies kann beispielsweise durch Spiele-Applikationen oder Gewinnspiele realisiert werden.
Ein weiteres Erfolgskriterium unterstreicht die Offenheit und Ehrlichkeit aller Maßnahmen in den sozialen Medien des Internets (Open). Dies schafft eine Grundlage für das Vertrauen der Konsumenten. Eine authentische und transparente Kommunikation gehört laut Weinberg zu den Verhaltensregeln der sozialen Medien. [4]
Zuletzt sollte es für Konsumenten möglich sein, auf dargebotene Inhalte problemlos zugreifen zu können (Shareable). Somit kann eine schnellere Verbreitung gewährleistet werden. Sinnvoll für die Verbreitung von Content sind Download-Möglichkeiten, RSS-Feeds oder Social Bookmarking-Dienste.
Referenzen
[1] Li, C., Bernoff, J. (2009), Facebook, YouTube, Xing & Co – Gewinnen mit Social Technologies, Carl Hanser Verlag München
[2] Michelis, D., Schildhauer T. (2010), Social Media Handbuch, Baden-Baden
[3] Gruber, G. (2008), Planungsprozess der Markenkommunikation in Web 2.0 und Social Media, VDM Verlag Dr. Müller, Saarbrücken
[4] Weinberg, T. (2010), Social Media Marketing: Strategien für Twitter, Facebook & Co, O’Reilly Verlag, Köln

The Role of Advertising in High-End Luxury Marketing. Is great advertising any good?

The Patek Philippe advertising case study.

"You never actually own a Patek Philippe. You merely take care of it for the next generation. - Begin your own tradition."

Now, this is obviously belongs into the planners' Hall of Fame. At least 3 great insights can be detected here in retrospective:

1) Buying a watch for $70.000 can make you feel guilty, thus needs to be justified.

2) Really good watches have a really long life - longer than your's is.

3) Most millionaires are self made men. But they long for some sort of dynastic touch to their family.

Apart from the execution style this is really great work. If I would have done this one I wouldn't question my capabilities ever again. Well, I haven't. Next time maybe.

But this is not the story I want to tell here. My thoughts revolve around a doubt that I have about all this. Is maybe even the greatest manipulative advertising idea rather diminishing the super-premium aura of the brand?

You see, we are not talking about a bag for $3000,-. These products cost up to $300.000. They really are luxury. They are so luxury that they even wouldn't use the word luxury because this sounds cheap. These brands (Patek Philippe, A. Lange & Söhne, Breguet, etc.) have an average price at least 3 times higher than a Rolex. Can you raise their perceived value through adding a psychological twist to it? Does the twist itself (the ad idea) have an impact on their propensity to want or buy the watch?

Maybe you think "Yes, where's the problem". Well, the problem is: the strategy techniques used are absolutely borrowed from premium-price or even mid-price products like let's say a Nissan:

1) There is a positioning thinking behind this ads: "Patek Philippe. The Inheritance."
2) There is an appellative lifestyle claim that tells you what to do: "Begin your own tradition"
3) There are models depicting "You" as the brand thinks you are
4) In some of the executions there is even an attempt to trigger your love for children visually (= "to emotionalize the brand")

This is almost perfect - say- for a Nissan. Or Nike. But this is exactly the point: don't people who pay 80,000,- for a watch simply feel that this is "just advertising" - or even mass advertising? And can you sell absolute exclusivity with a mass advertising appeal? What does this tell them about the brand?  That they "need" advertising, an "advertising trick"?
Just in case you think I'm advocating some sort of "new, 1on1, digital whatever conversations" as opposed to mass advertising principles - not at all! At this prices, conversations are face-to-face and carried out by professional jewelers in suits we could probably never afford. There is enough conversation going on about Patek. Online as well. The difference being: those who blog and talk about watches don't have the money to buy them - at least not 1st hand from Patek. And besides: the whole conversational, digital etc. marketing is even more typical for mass-market brands.

Let's rather stress some strategy concerns rather than channels & mechanisms.
Is the notion of "positioning" or "proposition" applicable here?
Should a brand like Patek talk to "you" and "your life" overtly?
Should Patek "emotionalize"?
Can or should Patek "add" anything to what they already are?

I guess the problem is that enhancing product perceptions through an emotional proposition or some sort of life style promise to some degree implies that there is room for improvement. If it really is the absolute high END of luxury and quality - why do they advertise? Isn't an emotional promise rather there for brands that need to promise something more than the product delivers? Coca-Cola needs an emotional promise because it's caffeine water and sugar. How can the most perfect mechanical jewelry need an "added value"?

I don't know if my concerns are justified. What do you think?

Excellent piece about the nonsense of asking people how and why they do things

read it here
Rory Sutherland in an interview about
the sense and nonsense of research.


Behavioral, not Attitudinal















Don't look at the date - there's no hot new stuff on this blog. Rather think how they might have gotten to that idea. What kind of talks they might have had with the management... Why Fun? Why legal driving? Why behavior change?

Strategy Quotations - Behavioral Creativity & Brands as Platforms

"They start thinking 'What kind of behavior do we want to own?'. And by 'owning' I mean 'What sort of behavior do we want to make better? What kind of behavior do we want to transform?"

                        - from a presentation given by Ana Andjelic, planning director at HUGE  -