This document discusses social media marketing. It begins by listing learning objectives, such as explaining why social media is important and describing careers in social media marketing. It then addresses common myths about social media, such as it being a fad or too time-consuming. Examples are given of how companies have used social media successfully or faced backlash. The history of social media is outlined and characteristics of successful social media marketers are identified. In the end, opportunities for careers in the social media field are explored.

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Why Social Media?

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After completing this chapter, students will be able to:
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LEARNING OBJECTIVES
• Explain why social media is important
• Define social media marketing
• Explain the 7 myths of social marketing
• Describe a brief history of social media
marketing
• Explain how social media marketing is different
• Identify the characteristics of a successful social
media marketer
• Describe the careers in social media marketing
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Finding a Way Through Social Media
• Lots of people are “doing” social media
marketing
• Seek an efficient and effective path
• Avoid random direction approaches
• Apply a decisive strategy for success
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Table 1.1 Popular Social Media Sites,
as of December 2011

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What Is Social Media Marketing?
Social media marketing (SMM) uses social media
portals to positively influence consumers toward a
website, company, brand, product, service, or a
person. Typically, the end goal of social media
marketing is a “conversion,” such as the purchase
of a product, subscription to a newsletter,
registration in an online community, or some
other desirable consumer action.
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Fiskars Creates a Social Media Community
around Scrapbooking
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The Seven Myths of Social Media Marketing
1. Social Media is Just a Fad
2. Social Media is Just for the Young
3. There is No Return in Social Media Marketing
4. Social Media Marketing isn’t Right for This
Business
5. Social Media Marketing is New
6. Social Media Marketing is Too Time-Consuming
7. Social Media is Free
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Social Media Myth #1:
Social Media Is Just A Fad
Instead, social media is:
•Founded in community, socialization, and word-of-
mouth marketing
•Based on a stable premise that people are social and
want to connect with other people
•Related to technological evolution that continues to
provide new and attractive means for people to
interact
•Rooted in core trends and behaviors in social media
interaction that remain stable over time
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Figure 1.1 Social Media Usage
Outpaces Traditional Media
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*Forrester Research Web-Influenced Retail Sales Forecast, Forrester Research, Inc., December 2009

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Social Media Myth #2:
Social Media Is Just For The Young
Instead, the reality is:
• Older users are among the fastest growing
demographics on most social media sites
• YouTube - 18 to 55, evenly divided between
males and females
• Facebook - 61% of those 35 to 54 and 48% of
people over 55 have Facebook pages
• Users span all age and income brackets
• Social networks are increasingly being adopted
by older populations
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Social Media Myth #3: There Is No Return
In Social Media Marketing
Instead, social media returns are:
• Difficult to measure, and many businesses do not
currently measure their social media efforts
• A frequent topic for conferences of online
marketing experts
• Measured in a variety of different ways such as:
savings in customer service, online word-of-
mouth promotion (buzz), improved brand
awareness and reputation, increased brand loyalty,
and sale lead generation
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Social Media Myth #4: Social Media Marketing
Isn’t Right For This Business
Instead, social media marketing:
• Is just as relevant to B2B companies as to B2C
firms
• Has a powerful ability to drive word-of-mouth or
recommendations from friends
• Influences search as a resource because search
results frequently include social media sites
Even if businesses don’t believe in the value of engaging in social
conversations as a part of marketing, there is no denying the value of
a strong business or product presence in search results.
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United Breaks Guitars
The Story:
• Dave Carroll, a musician flying United Airlines,
witnessed baggage handlers throwing his $3,500
Taylor guitar resulting in $1,200 in damages.
• Nine months of efforts to recover costs of the
damages ended with, “This is it, there’s going to
be nothing you’re going to get out of United
Airlines.”
• On July 6, 2009, Carroll posted a video to
YouTube titled “United Breaks Guitars” which
received over 10 million views by August 2011.
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United Breaks Guitars
The Lesson:
• Gone are the days when millions in advertising
and PR could control the message—now when
customer service is lacking, an individual can use
the social web to communicate with the world,
sometimes with nothing more than a song and
clever video.
• Every interaction with the customer is a
marketing event.
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Social Media Myth #5:
Social Media Marketing Is New
Instead, what’s new is:
• Technology and media are changing the role
social, behavioral, and economic concepts play in
modern marketing efforts
• Conversations are now public, online, and
viewable for the indefinite future
Consumers are already on social sites, talking about
businesses on their Facebook pages, blogs, and Twitter
accounts, whether a business acknowledges this or not.
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Social Media Myth #6:
Social Media Is Too Time-consuming
Three key ways to limit the time investment in
social media marketing:
1. Look for underutilized employees who can spend
some of their time on social media marketing
2. Leverage efficiency tools top streamline social
media efforts
3. Use mobile devices to boost efficiency
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Social Media Myth #7:
Social Media Is Free
While most sites do not have a fee for usage, costs
include:
• Time and resources
• Fees for producing and creating content
• Fees for consultants or agencies involved in
building and executing the social media strategy
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The History of Social Media Marketing
• 1978: first “spam” email message was sent
• 1979: USENET “newsgroups”
• 1985: The WELL bulletin board system (BBS)
• 1999: Napster
• 2001: Wikipedia
• 2003: MySpace, Delicious, SecondLife, and
Facebook
• 2004: Flickr
• 2005: YouTube
• 2006: Twitter
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Figure 1.2 Social Media Timeline
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Why Social Media Marketing is Different
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What are the Characteristics of a
Successful Social Media Marketer?
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Careers in Social Media Marketing
• Spending on social media is forecast to expand
substantially between 2009 and 2014
• Demand for social media marketers is likely to
increase in the near future
• The majority of the jobs in social media are
freelance rather than full-time
• The first step toward landing a social media job
is getting involved
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Figure 1.3 Firm Spending on Social Media
Marketing
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Exercise: JetBlue Uses Social Media
to Connect with Customers
• JetBlue is an active participant on Twitter,
YouTube, and Facebook
• Current social media efforts were launched from
a YouTube apology in February 2007
• Twitter usage started with listening, grew to
responding to questions, and is now medium for
full blown conversations
• For JetBlue, social media usage is “less about
direct sales and more about brand building”
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Review Questions
1. Why do you think JetBlue became active on more
social media platforms following the February
2007 incident?
2. The apology of the CEO of JetBlue took place
several years ago. Do you think that strategy
would still be an effective one for a company
today? Why or why not?
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Review Questions
3. How does JetBlue’s response to the stranding of
passengers compare to United’s response to the
broken guitar (from the earlier case study)? Based
on the information here, which do you think was
more effective and why?
4. Why has Twitter become the most popular social
media platform for JetBlue in helping them
improve customer satisfaction?
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