$$$ Social Media Marketing $$$

According to Duke University Fuqua School of Business, businesses are increasing their social media marketing budgets, with it expecting to grow on average from 9.4% to 13.2% within the next year and 21.4% within the next five years. Now businesses are faced with the challenge of how to determine their social media marketing budget amount compared to the rest of their marketing budget. They must evaluate a relatively new sector and determine the value of this strategy. This will be based on the size of the business, how long the business has been around, and the expenses and profitability of the business.

The Content Factory completed an analysis on social marketing and determined the amount an average business spends on their social marketing to be $200 to $350 a day. A social media marketing strategy will cost an average of $4,000-$7,000 for at least two social networks.

Businesses will need to determine which method they will use for their approach. They could hire an intern and/or train existing staff. This puts it in the hands of a non-specialist but allows you to have a social media presence at a low cost. Hire a freelancer costing about $900 per month. Hire a full-time professional social media specialist which will cost around $3,200 per month. Hire a small marketing firm costing approximately $400 to $1,500 a month. They could also hire a corporate marketing agency costing about $20,000 minimum a year.

After determining the process a company will use to manage their social marketing strategy, they must determine which social networks to utilize. This includes everything from Facebook to YouTube, SnapChat to Twitter, and LinkedIn to Reditt. All social networks are adding advertising to their websites so it’s up to businesses to determine what network is right for them and their desired market. By understanding your companies budget and target market you can fortify an effective social media presence.

http://thenextweb.com/insider/2016/05/12/how-to-determine-your-social-media-marketing-budget/#gref

 

Red or Yellow? AB Testing can answer that question.

Want an effective social media campaign?  Why not test it?  AB testing is where the majority of digital campaigns are decided.  Working in the digital space for a number of years provides me with a unique view of AB Testing.

So what is AB testing and when did it start?  AB testing is not a new concept; it has been around since 1908 but it has a new name.  In the medical field we have the control and experimental groups.  This same logic now applies to you in your everyday web surfing.   You are either in the control group, having normal content displayed to you.  Or you are in the experimental side and the content is different. The message is different.  The color is different.  Something is different.

The reason companies use AB testing are endless. The main reason is they want to test a hypothesis.  For example, do you like yellow or blue as your background color on the page?  Do you respond better to multiple colors of the same product or just one product? What is the number of products to displaying to customers: 32, 64, 128?  What media campaign has the best ROI? All of these examples are just a small fraction of the reasons why companies perform AB testing.

Performing AB testing seems normal for any marketer.  It provides the quickest feedback on the best marketing campaign?  This option is low cost as only affects .001 percent of the digital traffic.  You can start and end AB testing whenever you wish, and finally it’s all within your control.  If the data generated is acceptable within the first day, campaign A is performing better than campaign B.  Guess which one we are using for the next 30 days.

The problem with AB testing for people like me, is which side of the fence do I reside in when I surf the web?  Am I on the control or experimental side?  If I’m am always in the experimental side do, I live in a warped world where nothing is true.  Which side of the AB testing equation do you reside in?  By the way, you can’t tell which side of the AB testing equation you reside in.  Only the marketing folks do.  Just food for thought.

 

When head hunting for your marketing team, consider an Introvert

Introverts notice details normal people will not. It’s about this processing thing. They are analytical. They observe behaviors, they collect data and notice human interaction that is not obvious. This is a valuable tool. That means they know how humans behave toward what they like or dislike. They know when someone is engaged or disengaged. They center their creativity and inspiration around others. While others are fast to make a quick comment, Introverts are still seeking to understand.

From a brand’s perspective, Introverts can bring a brand to a higher level. Think about what brand should be doing. The focus should be on the values of a brand, rather then to sell a product. As we learned, we draw the customer in, provide safety, take away the fear and the risk, and build that relationship with the intension of providing a “zen” moment for the consumer.We know brands have learned there is more power in consumer engagement than marketing techniques. This takes reflecting and they are good at that. So what does introverts know others do not?

Introverts understand that they are not a salesman, they can’t sell products, they spin tales and sell experiences, while building relationships.This is more important in building a brand. They seek to understand how connections are made between a brand and the customer. They consider how a customer will influence the brand and in turn, the company will know how to serve the customers. This is what companies aspire to, so they can create a product to benefit their customers. It is this vary loyalty that makes a brand sustainable.

Focus on authenticity. Consumers know when they see good value for the long haul and they will know if it works. People know fancy gadgets will not replace their security of a reliable brand. They can trust the brand will not fail and if they do, the brand will do their best to make it right.

Introverts look at the bigger picture. They know marketing doesn’t live in a vacuum and all areas such as the television, periodicals, social media and all online activities can contribute to target the market. They diversify their strategies to reach a wider audience. They are not the biggest fans of social media, but they understand the behavior of people on social media. Everyone wants to be heard, they want to be valued and this is a form of feedback from our customers. Consumers are revealing themselves through this venue and it must be examined. They tell us what they eat, what they wear and how they want to be treated. Introverts learn fast technology is necessary to reach the customer base because this is the medium they are choosing to use and feedback is vital for brand growth.

Introverts would rather be an expert at one thing than try to be experts on everything. They know when a strategy works and modify to fit the customer needs. They find what the brand does well and work that angle. It is good to reinvent, but only do so, if the integrity of the brand is being challenged and the need to regroup is necessary to stay relevant. They know a good strategy is understanding the competitive advantage. Do the brand provide customers with the most benefit?  What service is novel and has not been done? What is important now? These are the questions  they constantly ask and is the core of the company’s value. This goes back to building that relationship and creating the brand around customer lifestyle.

Don’t underestimate the power of reflection. Just because something doesn’t work, doesn’t mean there is a rush to make anything work to add to the bottom line. Preserving the brand is more important than having a fancy product to sell. Consider an alternative plan and brainstorm instead of settling for mediocrity. Every brand has an off day, but companies encourage feedback and people always tell companies what they are doing right or wrong.

When headhunting, my advice to go talk to the quiet person listening, because they are collecting data about you. They might have the best competitive strategy for your brand.

 

The supplement industry

I lost 48lbs….. 54lbs….122lbs!!!……Hydroxycut!!!!

I am sure most of you would have seen this ad or similar ads. I previously wrote about the fitness industry and gyms like Planet Fitness. My follow up to that -is this article/ rant on the supplement industry.

Some employees in one of my earlier work places came up with a competition  (not company sponsored) – something on the lines of the Biggest Loser – whoever loses the max weight wins the cash.One particular employee in  an effort to win took some weight loss supplements – not sure how many but the next thing I know is that she was out for almost 5months and had to get admitted in a hospital due to some complications from this- She did lose weight but it was due to surgery which had to take place due to some complication from the drug.

There was also an article in the boston magazine that said 1 out 3 supplements are fake

http://www.bostonmagazine.com/health/blog/2013/11/04/one-three-supplements-fake/

and there was a news where some herbal supplements sold by top stores such as GNC ,Walgreens contained fake ingredients.

http://www.cbsnews.com/news/herbal-supplements-targeted-by-new-york-attorney-general/

Are these supplements really worth it ? I am no fitness expert nor do I know a lot about these supplements but one thing I do know is eating healthy does not have to include taking supplements.

The way these companies market them is by creating a need and making the customer want this. Would you buy a box of protein powder from me or would you prefer to buy it if someone like  Arnold was selling  it.

The next thing they do is  use some complicated terms along with some natural sounding components and confuse the crap out of the consumer – then relate the results with either weight loss/ increased energy/ improved sex life. Everything that the average Joe wanting a 6pack by summer wants to hear.

Do you guys remember the energy bands that they sold in malls which contained volcanic ash – this was supposed to do everything from stabilizing your body to improving your sex life to curing cancer. Not sure how many of you bought that but  Volcanic ash – seriously!!!! and they sold for $25 a piece. I personally know people who claimed that they had increased energy through the day after wearing the band – Placebo effect (absolutely!!).

People will even buy plain water – if it is packaged under a title “miracle drink” for weight loss and improves sex life – just throw in a celebrity to endorse it and you will see the sales spike.

It’s all about creating a want – a demand (On a side track there is a Canadian company which capitalized on air pollution in china and sells “clean” bottled air (essentially means empty bottle) in China – no kidding just plain freaking air !!!! oh I forgot to add from the mountains!!!! –  it sells $50 per can)

In my honest opinion you don’t need a fancy supplement to help you become fit. Eat healthy and exercise (even if it is at planet fitness – that’s a start plus they give free pizza).

But again the supplement industry is a 80 billion dollar industry. If you can come up with a product and build your brand then jackpot!!!

For starters presenting to you miracle energy drink 

1 bottle a day  AND GET A 6 PACK 

 

 

P.S:

Dear Diary – this would be my last entry 😀 ( Yayyy!!!! On behalf of the readers and me)

 

 

Going Viral

There has already been a couple of articles about this – the death of tv ads – the rise of marketing on social media.

Even in social media the trend of placing/promoting ads on the company’s facebook page or twitter handle has moved to using facebook celebrities and instagram celebrities to promote products in their videos . I am not referring to say a celebrity like Bradley Cooper or Scarlett Johanson , I am referring to  people like you and I who became facebook stars or youtube stars.

I am a fan of the page “Bat Dad” and “Dude Perfect”.  Dude Perfect are you tube stars who became famous for creating trick shot videos. They are extremely skilled and their videos are super cool. They have already launched  a mobile game for iOS and Android, self-titled Dude Perfect and  Cory Cotton (one of the members)authored a nationally published book titled Go Big in which he shares the secrets the group has learned along the way building a business in a world largely influenced by social media.

The group received professional endorsements and requests, which began with then-Sacramento Kings player Tyreke Evans, in an effort to promote Evans’ run for Rookie of the Year.^[7] Dude Perfect also worked with quarterback Aaron Rodgers, NBA starChris Paul, Australian bowler Jason Belmonte, actor Paul Rudd, singer Tim McGraw, Seattle Seahawks coach Pete Carroll and quarterback Russell Wilson, and Heisman Trophy winner quarterback Johnny Manziel^[8][9] at Kyle Field,^[10] Miami Dolphins quarterbackRyan Tannehill,^[11] the U. S. Olympic team,^[12] NASCAR drivers Ricky Stenhouse, Jr., Travis Pastrana, James Buescher and IndyCar Series driver James Hinchcliffe at Texas Motor Speedway,^[13] New York Giants wide receiver Odell Beckham Jr.,^[14] the Seattle Seahawks, and St. Louis Rams players Greg Zuerlein, John Hekker, and Jacob McQuaide 

The list is endless. Then there is Bat Dad ?Just a normal dad in Atlanta -no super skilled trick shot videos- he wears a bat man mask and makes videos around his house -which are quite funny – I get inspiration from him on how to irritate my wife.(I thought blogging was an effort for us to start our “Dear Diary” conversations and hence the confession). His videos are a huge hit and the now he has his own tshirt collection and he has also come up with a book.

When you get  famous on a social media platform , brands take notice- Netflix capitalized on this and did a promotion starring bat dad – How cool is it. Now I am sure you would have guessed what his full time job is – Make videos !!!! how cool is that

I think this is just a tip of the iceberg for him and I am sure there are more promotions coming up- Good morning America has done a segment on him too.

What about grumpy cat – its a freakin cat !!! just a cat that looks grumpy and it has starred in an ad for pistachios!!!. There are actually “talent” scouts who look for the next viral sensation.

I think this is the future of marketing – going viral – using youtube stars and facebook stars. So are you ready to be the next youtube star.

P.S: I personally think our very own @AMIRNIKFETRAT has all the qualifications for a youtube star – get him some redbull  let him loose in Poland and he will zip around like the Tasmanian devil – Voila viral video !!!

 

References:

https://en.wikipedia.org/wiki/Dude_Perfect

 

 

Fried chicken + cosmetics = chicken fingers (Part II)

As far-fetched as this whole idea sounds, I must admit that I find myself fascinated by it.  Perhaps this has to do with the fact that I love chicken, or that I have a penchant for spicy food (after all, I am originally from Africa). Or still, perhaps it is because I just love the idea of ‘pushing boundaries’, taking risks and being innovative, even if doing so may generate more questions than answers.  Questions such as:

• What specific channels of distribution KFC plans to use for marketing this product?  I mean, when they decide to start mass-producing this thing, will it be only sold in KFC restaurants along with their chicken meals (i.e., “Would you like some nail polish with your meal, Sir/M’am?”), or will it be available exclusively in cosmetic/beauty retail stores, or both?
• Who exactly is the target segment for this product?  Is it only for women, or is it a “unisex” product?  After all, the promotional music video released on YouTube shows a woman licking her fingers (while sitting on a pillar), and a man busting some serious robot-dance moves while showing off his Hot & Spicy KFC nail polish.
• Should you have any interest in this product, would you want it to remain on your fingers? And for how long? Indefinitely?  How often would you be expected to lick your fingers during the course of a day?

In the final analysis, it should be noted that this is not the first time (and certainly not the last) that a company has come up with ‘creative’ or ‘unorthodox’ products.  A quick online search can reveal the extent of these types of products, and out of curiosity, have you ever wondered about what the combination of just a handful of these products would look like?

Perhaps I shall attempt to illustrate with a picture …

Imagine a rainy morning in Hong Kong. A young, fashion-conscious female professional has just got off the train and is walking the remaining few blocks to work. Anticipating a particularly busy and important day ahead of her, she ensures that no details are left unattended about her overall countenance by completing her makeup with her favorite Hot & Spicy KFC nail polish (which she purchased the weekend before at her favorite cosmetic retail store).  Being an avid chicken lover, and of course a loyal KFC customer, she stops to pick up her usual KFC chicken sandwich, the kind made with chicken buns, also known as the “Double Down”.  She is well protected from the rain with a hands-free, full body umbrella,  to ensure her nail polish stays dry while she works on her sandwich. Later, during the high-power business meeting she was attending, she met some new clients and established contact with them by handing out her rather unique business (read: meat) cards.  Due to the high stress of the day, she found herself licking her fingers “again and again and again” throughout the course of the day, so much so that by the time she got home, she discovered, to her dismay, that she had bitten into one of her fingers unknowingly.  But not to worry, she’s well stocked up with bacon bandages that are readily available on amazon.  Finally, before turning in for the night following another successful day, she will make sure that, included in her nightly hygiene routine, she brushes her teeth with her unique bacon-flavored toothpaste.

Now that, in my opinion, is the ultimate genius of innovation all in one package

Fried chicken + cosmetics = chicken fingers (Part I)

Last week, I tweeted about Kentucky Fried Chicken (KFC) deciding to enter the cosmetic business (and yes, this is not a typo, nor a prank!) by introducing a ‘new product’ in the form of edible nail polish!  By now most people must have heard of this (just Google it, or check out Steven Colbert, or pretty much any news outlets).  The product, uhmm, nail polish, developed in collaboration with a marketing agency, is said to be made of all-natural ingredients, and it comes in two distinct flavors and colors: “Original Recipe” in beige color, and “Hot and Spicy” in red.  For now, this  campaign is limited only to the Hong Kong market.

In our last class session of Marketing, we learned about some of the implications of digital and social media marketing in terms of how companies can identify opportunities.  More specifically, remember the 3 circles: Transaction costs, Attributes, and Benefits, and how each circle can be impacted by the new rules of marketing?  And how, for any company, the Benefits circle — the innermost — is the most impacted?  I remember one of the last things the professor said was that these new rules will result in improvement of products or creation of new products altogether!

So one would wonder how this applies to KFC, that is, developing a ‘new product’ in the form of nail polish that tastes like chicken, what impact does the company expect to have?  What’s in it for the customer?  What value would such a product aim to optimize?

When asked, various sources involved with this new product said this is a way “to remind the younger generation of the great taste and good times the brand stands for”, and “to create excitement around the fast food chicken brand in Hong Kong”.  In other words, KFC just wants to both reaffirm, and at the same time, redefine the brand image through its promise.  It may be worth noting that the KFC brand is already very popular in Asia in general, and particularly in Hong Kong, and yet apparently, they still feel the need to ‘spice’ it up a little bit more.

It would be interesting to know the overall reaction to this product, or consumer perception. The company says it is currently conducting an exploratory market research, mostly online (remember, we’re talking about digital & social media marketing!), where they are collecting votes, opinions and reactions from the public on how well this new product will be received. The ultimate goal is to learn which one of the two flavors the market-place would prefer, with apparently “neither” being not an option.

Traditional vs Digital/Social Marketing Part III

As I was reading my daily news I ran into this website about the differences between traditional and social media marketing and I figured since I liked it and it is relevant to our recent class, I will share.

The picture below really summarizes it very nicely. The biggest take away I get from this article is that Social marketing is super fast, readily accessible, doesn’t really require a formal structure, doesn’t really need a  detailed planning and it’s truth. This goes to the fact that the market is driven by what consumers or customers want and not what the company really thinks what people should have. With social media you can ask your audience on what they think of new products or if they like the changes before the project takes off. That is really powerful in the fact that it will save the company millions of dollars.

It will let you know if there is a market for it in a different continent. Something that is not popular in North America might be essential in Asia. A company really does not need to spend lots of money to come up with a campaign or a research group and invest in traveling to different locations. With a simple touch of a button and few hours or days you will learn about your product and where is your market. In some cases it might even make the company’s job easier in terms of design. Some companies might struggle what should be the next big thing on a smart phone but if an idea is out there the company could potentially have an answer a lot sooner that investing months in the research lab.

Overall, social media has made the sharing and gathering of data super easy and reliable.

http://www.cmodigitalforum.com/2016/02/22/10-differences-classic-social-media-marketing/

It’s a Small World After All

I recent was put into a new role at work. While it is only a minor component I am in charge of our Instagram and Facebook accounts and let’s just say this is not my favorite part of my job. However, that is not the point of this article. This article is about how EVERYTHING is connected.

As you may or may not know single person can have up to three accounts associated with a single Instagram application on their phone. So, naturally I linked the Putnam Market account with mine once I started my new position. I thought nothing of this at first. After a couple of days of posting to the Putnam Market account (you should all follow us) I started to notice that people that I knew in “real” life were starting to like Putnam posts and even following our page. This is not the strange part however, where is this story becomes interesting is where I know these people from. They were friends and acquaintances from California, three thousand miles away.

These people had no clue what or where Putnam Market is, but what they do know is me. These are folks that follow my own personal account. Because my account was now linked with Putnam’s on the same phone our posts were being recommended to my friends. While is great for increasing Putnam Market’s reach it has some scary implications.

It just reinforces the idea that nothing is private on the internet, and especially on social media. If you or your company is going to post on social media you must be one hundred percent comfortable with the ENTIRE world seeing it.

Death of A (Television) Salesman

In the hustle and bustle of today’s society there is an increasing demand for instant access to information. This demand has led to the advent of smart phones, tablets and numerous other devices that give consumers copious amounts information literally at their fingertips. With everyone plugged into their personal devices it has created a great opportunity for marketers to target consumers on an individual level.

While we all love our iPhones and various other “smart” devices for the convenience and cornucopia of information (I mean I can pretty much access anything in the world at the touch of button, which is incredible) this flow of information goes both ways. The companies that provide us with information aren’t stupid, they collect as much as they provide. They collect so much information on us they know an individual consumer’s purchasing behavior be than they know themselves. By combining this knowledge of consumer behavior with social media sites and apps such Facebook, Instagram and Snapchat companies can target on an personal level, which is extremely powerful. Marketers can make sure advertisements are only seen by consumers whom are mostly to purchase that item. And it’s not just one time they see the ad, it’s every time they’re on social media because everything is connected. With consumers being inundated with so many products they’re interested in, it’s almost impossible for them not to make a purchase.

However, as many of the laws of science teach us it is impossible to gain in one area without losing in another and the big loser here is television. While television may still be popular today, it is slowly declining and I believe television (cable television to be specific) will no longer exist as we know it in 20 years. I feel the millennial generation is no longer willing to sit and front of the TV and waste their time watching commercials. This fact combined with the fact that television advertising is very expensive will force advertising campaigns away from this media. Without funding from ads cable television will die.