Is Social Media the Answer For All Marketing Communication? (Week 12, The END)

Social media has become a giant in consumer communication over the past few years.  Although these tools were initially utilized by a younger demographic, recent years have seen the adoption of social media by all generations.  The users are turning to social media for the social happenings, news, information, and more.  Each platform has is strengths and niche markets.  Some sites such as Facebook and LinkedIn have found success in dominating large market segments.  However, with everything that social media sites offer - can they really obsolete the traditional marketing communication tools that marketers us?  Let's take a look at some of the tools being used today and how social media can either replace, enhance, or be insufficient in filling the purpose.

Advertising
Social media still affords companies the opportunity to advertise on the sites.  These can be via banners, pop-ups, or notifications.  However, if only social media sites were used to advertise, companies would miss out on the opportunity to adversities to non-social media users.

Sales Promotion
Notification of sales promotions could occur via Twitter, Facebook, and other sites.  The company could provide a link directly to the customer and direct them to their individual company websites.  Social media would enhance the reach of companies and avoid some of the cost associated with tradition mailings.

Public Relations
Website - Most social media sites offer companies the option to create a fan page.  However, these fan pages are all limited by the social media site framework and don't really allow companies to differentiate themselves.  When a customer simply hits a "Like" button for your business, but has also "Liked" your competitors, are you really achieving customer loyalty?  Companies will still need to host their own websites where they can interact and inform their customers.
Customer Service - This is a critical aspect of any company.  The features currently available on social media sites will not be effective in dealing with all customer issues.  The customer service department can participate in social media activities to inform customers, but at the end of the day, there needs to be an outlet for customers to call into and seek help.

Direct Marketing
There are similar aspects to the direct marketing to advertising with social media. There are numerous benefits to using social media as it allows for easier segmentation, targeting, and positioning.  However, companies would again be limited to social media users if they abandoned traditional direct marketing efforts.

Personal Selling
For basic necessities and low value items, social media may offer companies enough of a voice to sell their product.  However, for high involvement products, customers aren't going to look at 140 characters in a Twitter note and decide to buy that company's car.  Consumers will still need the opportunity for interaction during the sales process in the form of sales reps.

Although social media is a great asset for marketers to use in their future marketing efforts, it will not completely replace good old-fashioned marking tools.  Marketers will still need to be brilliant at the basics and use social media as another tool in their toolbox.

Apple: My go-to Brand (Week 10)

When someone asks you to think about brands, your thoughts are immediately filled with words, designs, images and slogans tied to a particular company.  All of these components help to differentiate the company from its competitors.  However, just because consumers recognize a brand does not mean that they will show loyalty to it or spend their money with the company.

Brand Equity
Brand equity, as defined by Marian Wood, is the extra value customers perceive that enhances their long-term loyalty to the brand.  In the pyramid below, Kevin Keller shows the process for a company to move a consumer from recognition to relationship with the brand.

For a company to truly have brand equity with a customer, it must move the customer from just being able to identify the brand to having a relationship with it.  At the top of the pyramid a brand resonates with a customer.  It is at this point that a customer will build loyalty towards the brand and continue in an ongoing relationship with it.

Apple

For me, Apple is a brand in which I have gone through the above pyramid and have ultimately come to the point of resonance.  Over the years, I have moved through each of the four categories above in my own unique way.

Identity (Salience)

I first became aware of Apple when I took a photography class in high school.  It was in the class where I first saw Apple's iMac.  At this point, I had never used the computer or had any personal feelings about the products.  However, I did immediately recognize the distinct design and logo.  

Meaning (Performance and Imagery)

I didn't think much of the brand at the time, but over the next few years I continued to encounter MacBooks and other Apple products in collage.  It was around this time that I made my first Apple purchase, the iPod.  My experience with the iPod was extremely positive.  The performance, reliability, and durability of the product was beyond my expectations.  In addition to the performance factors of the product, I was surprised at the social response to my ownership of the product.  Conversations around the iPod were either with current owners of the product or people interested in becoming an owner.  This was the first time where I started to experience the societal interaction with the product.

Response (Judgments and Feelings)

My response to the above performance and imagery resulted in the purchase of several more Apple products.  I continued to buy Apple because of the consistent quality, trust in their ability to innovate, and competitive advantage in performance in the market.  I had not had a bad experience with the product.

My personal Apple iTourage

Relationship (Resonance)

My transition from response to relationship was quite quick.  Today, I don't even do a whole lot of research on an Apple product before I purchase it.  I trust that they will only put out excellent products that exceed my expectations.  In addition to my personal loyalty, I will happily spread the Apple brand name to prospective customers of their products.

Although the example above is my personal tale, each and every customer will go through their own unique experiences in the process.  Successful companies will ensure that their marking and communication efforts help move customers through the above process to ultimately achieve brand equity with them.  

Can I Get a Hot Tub? (Week 8, Ch 8/9)

State Farm Insurance has made a big push in their marketing communications over the last few years.  If you think about insurance as a whole, they typically have very mundane advertising.  When you did see advertising it was mainly based on a rational appeal.  However, in the last 4-5 years, insurance companies have really gone out the door with a great advertising campaign.  State Farm is one of the companies that have made a concerted effort with their TV advertising campaign.

According to research done by The James Group, there are four keys to a good advertising message.  They are: a word hook, a character hook, a repeatable theme, and a unique design.  Now let's see how well State Farm has been doing with these keys to success.

Word Hook
You can't help but hum along to the jingle when it's on, so "Like a good neighbor State Farm is there" really satisfies this key tenant.  This phrase is utilized during the commercials at some points by the characters and then the commercials typically close with the statement again in print on the screen.  For the print media, this phrase is always placed prominently in the ad.

Character Hook
State Farm has been utilizing several characters over the past few years.  Most recently, Chris Paul has been making his rounds on the TV ads playing himself and his twin brother Cliff.  These commercials are playing off of sports fan's knowledge that Chris Paul is one of the best point guards in the NBA.  Typically seen as a player who assists his teammates, State Farm related this to their goal of assisting customers.
In addition to Chris Paul, State Farm has utilized numerous other characters in their TV advertisements.  Some of the more memorable characters have been during the "genie" style appearance of a State Farm agent.  One of my favorite advertisement with this theme had the agent show up with a hot tub.

Repeatable Theme
All of the characters listed above were effective because they were always promoting a common theme.  The theme through the ad campaign has been that no matter where you are, what you need, your State Farm agent will be there to serve you.  At the end of the day, State Farm is providing insurance that is intimately tied with their service; but in reality, they are providing each consumer with peace of mind.  Their advertising campaign has been about promoting the fact that State Farm will be there when you need them.

Unique Design
As I stated previously, State Farm has typically closed out all of the TV ads with their word hook and the State Farm logo.  Some may not think that this is not a strong unique design, but by always having their logo and word hook splashed on the screen it helps consumers immediately recognize a State Farm ad, print media, or local office.  An interesting point to note, is that State Farm is the only large insurance company that uses red and white only as their primary colors.  This is a point of differentiation when compared with Allstate, Geico, and Aflac.

All in all, State Farm has shown that their advertising has all the elements to make it very effective.  Although they have a large market share, it is important to continue to maintain their brand awareness and target their target market with effective integrated marketing communications.