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Social Media – Theoretical module
Andreas M. Kaplan
Mail: kaplan@escpeurope.eu
This presentation is mainly based upon :
Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite!
The challenges and opportunities of social media, Business Horizons, 53(1), 59-68.
1) Defining - 2) Classifying - 3) Applying Social Media



                                           Defining Social Media
            Social Media is a group of Internet-based applications that build on
  1)        the ideological and technological foundations of Web 2.0, and that
            allow the creation and exchange of User Generated Content (UGC)
                                   (Kaplan and Haenlein, 2010, p. 61)



                                      Classifying Social Media
                                                           Social presence / Media richness

  2)                Self-
                    presentation
                                                  Blogs &
                                                 Microblogs
                                                                     Social
                                                                 networking site
                                                                                       Virtual social
                                                                                           worlds
                    / Self-                     Collaborative       Content            Virtual game
                    disclosure                    projects        communities              worlds




                                           Applying Social Media
                                             Social media = Media + Social

  3)                               Media                                      Social




Andreas M. Kaplan                                   2010                                                2
1)                 Definition and importance of Social Media


 2)                       Classification of Social Media


 3)            Application of Social Media: 10 pieces of advice




Andreas M. Kaplan                     2010                        3
Defining social media and differentiating it from
 Web 2.0 & User-Generated Content (UGC)


   Social Media is a group of Internet-based applications that build on the
   ideological and technological foundations of Web 2.0, and that allow the
         creation and exchange of User Generated Content (UGC)
                            (Kaplan and Haenlein, 2010, p. 61)




                Web 2.0                            User Generated Content (UGC)
 • Term first used in 2004 to describe             3 characteristics of UGC:
   a new way to use the WWW, i.e. as
   a platform in which content and                 •   Published on a publicly accessible
   applications are no longer created                  website or on a social networking
   and published by individuals but                    site accessible to a selected group
   instead are continuously modified by                of people
   all users in a participatory and
   collaborative fashion                           •   Shows a certain amount of creative
                                                       effort
 • Web 2.0 does not refer to any
   specific technical update of the                •   Has been created outside of
   WWW. However, there is a set of                     professional routines and practices
   basic functionalities that are
   necessary for its functioning
   (Adobe Flash, RSS, AJAX)
Andreas M. Kaplan                           2010                                             4
Importance of social media (1):
 Consumers change their behavior


                    Users trust more in UGC than in corporate content

 According to Deloitte Consumer Product Group (2008), about 8 in 10 shoppers trust
 brands which offer customer ratings / reviews more than those that do not




                      Users migrate from traditional to social media

 Over 100 million blogs exist; 120 000 new blogs launched every day; 1.5 million posts
 per day; If Myspace was a country, it would be the 8th largest country in the world,
 etc. (Source: Technorati 2009)



       Users take over control in the cyberspace and become prosumers*

 Negative public relations (PR) of a Comcast technician sleeping on a client’s couch
 went through the press world-wide. The client filmed the technician and put the video
 on Youtube in 2006 (Several million consumers have seen this video and talked about
 it – and still do)

                                                         * Prosumer = Producer + Consumer

Andreas M. Kaplan                           2010                                         5
Importance of social media (2):
 Companies enter the social media landscape


    How important are these services          What is the biggest barrier to you
          to your business?                      employing Marketing 2.0?


                                                              3,2%
                                                       8,5%


                                                 22,3%                35,1%



                                                       23,4%

                                                Budget
                                                Technology
                                                Staffing
                                                Knowledge
                                                Exec Buy-in
                                                Community is not receptive
                                                                  Pursuit Group 2009
Andreas M. Kaplan                      2010                                       6
1)                 Definition and importance of Social Media


 2)                       Classification of Social Media


 3)            Application of Social Media: 10 pieces of advice




Andreas M. Kaplan                     2010                        7
Classification of social media




                                     Social presence/ Media richness


                                Low                Medium                 High



                              Blogs and        Social networking      Virtual social
                    High     microblogs               sites              worlds
                            (e.g. Twitter)      (e.g. Facebook)    (e.g. Second Life)

 Self-
 presentation/
 Self-
 disclosure                                                           Virtual game
                            Collaborative          Content
                                                                         worlds
                    Low        projects          communities
                                                                     (e.g. World of
                           (e.g. Wikipedia)     (e.g. Youtube)
                                                                        Warcraft)




                                                       Kaplan and Haenlein, 2010, p. 62

Andreas M. Kaplan                       2010                                              8
Classification of social media



                                  Social media differ in the degree of “social presence”
                                 (i.e. acoustic, visual, and physical contact that can be
                                  achieved) and in the degree of “media richness” they
                                  possess (i.e. the amount of information they allow to
                                                 be transmitted in a given time interval)




Social media differ in the                               Social presence/ Media richness
degree of “self-disclosure” it
requires (i.e. the conscious
or unconscious revelation of
personal information that is
consistent with the image               Self-
one would like to give) and             disclosure/
the type of self-presentation           Self-
it allows (i.e. the desire to           presentation
control the impressions
other people form of oneself)



Andreas M. Kaplan                        2010                                              9
Collaborative projects
 (e.g. Wikipedia)


  Collaborative projects enable the joint creation of content by many end-
 users. Within collaborative projects one differentiates between wikis (e.g.
 Wikipedia), i.e. websites that allow users to add, remove, and change text-
 based content, and social bookmarking sites (e.g. Delicious), which enable
  the group-based collection and rating of Internet links of media content.



      Exemplary marketing functions performed via collaborative projects
                             E.g. the computer software producer Adobe Systems
                             improves its marketing intelligence by maintaining a
 Marketing research
                              list of bookmarks to company-related websites and
                                           conversations on Delicious
                                E.g. Intuit (company developing financial and tax
                              preparation software) maintains a free collaborative
 Relationship marketing
                              tax resource and research wiki (Tax Almanac) which
                                  helps to create long-term client relationships

                                E.g. consumers who desire information about a
 Communication                  company or brand often have a first look at the
                                          respective Wikipedia entry


Andreas M. Kaplan                       2010                                         10
Blogs and Microblogs
 (e.g. Twitter)


 Blogs, which represent the earliest form of social media, are special types of
 websites that usually display date-stamped entries in reverse chronological
  order. Also microblogs (e.g. Twitter) which differ from a traditional blog in
     that their content is typically much smaller (nothing but e.g. a short
              sentence), belong to this category of social media.



      Exemplary marketing functions performed via blogs and microblogs
                             E.g. the coffeehouse chain Starbucks uses its corporate
 Product development           blog ‘MyStarbucksIdea’ to collect customer ideas in
                                           order to create new products

                              E.g. Jonathan Schwartz, CEO of Sun Microsystems,
 Communication               maintains a personal blog to improve the transparency
                                                of his company

                             E.g. the low-cost airline Jet Blue Airways sends out its
                              weekly “cheeps” each Monday morning, i.e. Twitter
 Pricing
                             messages about special promotions on available seats
                                        in flights on the following weekend


Andreas M. Kaplan                       2010                                        11
Content communities
 (e.g. Youtube)


 Content communities offer the possibility of sharing media content between
  users. They exist for a wide range of different media types including text
  (e.g. Bookcrossing), photos (e.g. FlickR), videos (e.g. Youtube), and PPT
                       presentations (e.g. Slideshare).



      Exemplary marketing functions performed via content communities
                              E.g. the alcoholic spirits producer, Absolut Wodka,
 Relationship marketing     strengthens its customer relationships through its own
                                                Youtube channel

                            E.g. several companies, such as the car manufacturer
 Communication                BMW, put their company profile in PPT format on
                             Slideshare ready to use for the interested consumer


                             E.g. the computer manufacturer Apple (via ITunes)
 Distribution               proposes consumers to buy their favorite song directly
                                               from Youtube



Andreas M. Kaplan                      2010                                          12
Social networking sites
 (e.g. Facebook)


 Social networking sites (e.g. Facebook, LinkedIn, MySpace) are applications
    that enable users to connect by creating personal information profiles,
 inviting friends and colleagues to have access to those profiles and sending
               e-mails and instant messages between each other.



     Exemplary marketing functions performed via social networking sites
                           E.g. Zappos, online shoe and clothing retailer, analyses
 Marketing research        consumer comments on their social networking sites for
                                        marketing research purposes
                                E.g. Warner Brothers, entertainment company,
                             promoted its movie ‘Fred Claus’ through a Facebook
 Communication
                            profile via which visitors could watch trailers, download
                                            graphics, and play games
                             E.g. the Internet florist 1-800-Flowers.com offers a
                           Facebook widget ‘Gimme Love’ whereby users can send
 Distribution
                           virtual bouquets to friends, or be directly transferred to
                                  the company’s website to send real flowers


Andreas M. Kaplan                       2010                                        13
Virtual game worlds (MMORPG)
 (e.g. World of Warcraft)



     Virtual game worlds (e.g. World of Warcraft) are a subgroup of virtual
    worlds and require their users to behave according to strict rules in the
    context of a massively multiplayer online role-playing game (MMORPG).




       Exemplary marketing functions performed via virtual game worlds
                             E.g. McDonalds enables Sims Online players to operate
                              a McDonald's kiosk and earn "Simoleons" as a virtual
 Marketing research
                               business. Eating at virtual McDonald's will satisfy a
                                       Sim's hunger and hedonic desires
                                E.g. car manufacturer Toyota used pictures and
                             mechanics from the World of Warcraft application in its
 Communication
                               latest Tundra commercial to reach the 2.5 million
                                            players in the US alone

                              E.g. Pizza Hut permits participants in the EverQuest II
 Distribution                 fantasy, virtual game world to order food for delivery
                                         from Pizza Hut Inc.'s Internet site


Andreas M. Kaplan                        2010                                           14
Virtual social worlds
 (e.g. Second Life)



   Virtual social worlds (e.g. Second Life) are the second subgroup of virtual
    worlds and allow residents to choose their behavior more freely and to,
               essentially, live a virtual life similar to their real life.




       Exemplary marketing functions performed via virtual social worlds
                                E.g. the hospitality company Starwood Hotels &
                              Resorts pretested its new hotel ‘Aloft’ virtually within
 Marketing research          Second Life to obtain feedback of potential customers –
                               which resulted in the decision to build radios in the
                                              guest rooms’ showers

                               E.g. the bank Wells Fargo is present on the Active
 Communication                 Worlds, communicating with current and potential
                                              future customers

                              E.g. shoe and apparel manufacturer Nike sells virtual
 Distribution
                                      shoes on the social world There.com


Andreas M. Kaplan                        2010                                         15
1)                 Definition and importance of Social Media


 2)                       Classification of Social Media


 3)            Application of Social Media: 10 pieces of advice




Andreas M. Kaplan                     2010                        16
Social media have both a social- and a media-
 component


                            Social media = Media + Social




                    Media                                   Social




Andreas M. Kaplan                         2010                       17
Ten pieces of advice for companies deciding to
 use social media (1)


                      5 points about using media

                            Choose carefully
                        the type of social media
                            you want to use



Give all employees                                   Pick the application
 access to social                                   you want to rely on –
media applications                                    or make your own




        Integrate social media               Ensure that social
         into your traditional              media activities are
              media plan                  aligned with each other


Andreas M. Kaplan                  2010                               18
Ten pieces of advice for companies deciding to
   use social media (2)


                             5 points about being social


                                          Be active:
                              Ensure that your content is fresh
                                 and engage in discussions




         Be honest:                                                 Be interesting:
Never expect that social media                                  Listen to clients and post
 users won’t find out you lying                              content fitting their expectations




               Be unprofessional:                       Be humble:
              Avoid overly-professional              Learn the basic rules
                  Content offerings                   before participating



 Andreas M. Kaplan                            2010                                        19
Further reading




 •   Carter Sandy (2009) The new language of Marketing 2.0 – How to use
     angels to energize you market, IBM Press.

 •   Kaplan, Andreas M., Haenlein, Michael (2011) The early bird catches
     the…news: Nine things you should know about micro-blogging, Business
     Horizons.

 •   Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite!
     The challenges and opportunities of social media, Business Horizons.
     53(1), 59-68.

 •   Kaplan, Andreas M., Haenlein, Michael (2009) The fairyland of Second
     Life – About virtual social worlds and how to use them, Business
     Horizons, 52(6), 563-572.




Andreas M. Kaplan                      2010                                    20

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Introduction into Social Media

  • 1. Social Media – Theoretical module Andreas M. Kaplan Mail: kaplan@escpeurope.eu This presentation is mainly based upon : Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite! The challenges and opportunities of social media, Business Horizons, 53(1), 59-68.
  • 2. 1) Defining - 2) Classifying - 3) Applying Social Media Defining Social Media Social Media is a group of Internet-based applications that build on 1) the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content (UGC) (Kaplan and Haenlein, 2010, p. 61) Classifying Social Media Social presence / Media richness 2) Self- presentation Blogs & Microblogs Social networking site Virtual social worlds / Self- Collaborative Content Virtual game disclosure projects communities worlds Applying Social Media Social media = Media + Social 3) Media Social Andreas M. Kaplan 2010 2
  • 3. 1) Definition and importance of Social Media 2) Classification of Social Media 3) Application of Social Media: 10 pieces of advice Andreas M. Kaplan 2010 3
  • 4. Defining social media and differentiating it from Web 2.0 & User-Generated Content (UGC) Social Media is a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content (UGC) (Kaplan and Haenlein, 2010, p. 61) Web 2.0 User Generated Content (UGC) • Term first used in 2004 to describe 3 characteristics of UGC: a new way to use the WWW, i.e. as a platform in which content and • Published on a publicly accessible applications are no longer created website or on a social networking and published by individuals but site accessible to a selected group instead are continuously modified by of people all users in a participatory and collaborative fashion • Shows a certain amount of creative effort • Web 2.0 does not refer to any specific technical update of the • Has been created outside of WWW. However, there is a set of professional routines and practices basic functionalities that are necessary for its functioning (Adobe Flash, RSS, AJAX) Andreas M. Kaplan 2010 4
  • 5. Importance of social media (1): Consumers change their behavior Users trust more in UGC than in corporate content According to Deloitte Consumer Product Group (2008), about 8 in 10 shoppers trust brands which offer customer ratings / reviews more than those that do not Users migrate from traditional to social media Over 100 million blogs exist; 120 000 new blogs launched every day; 1.5 million posts per day; If Myspace was a country, it would be the 8th largest country in the world, etc. (Source: Technorati 2009) Users take over control in the cyberspace and become prosumers* Negative public relations (PR) of a Comcast technician sleeping on a client’s couch went through the press world-wide. The client filmed the technician and put the video on Youtube in 2006 (Several million consumers have seen this video and talked about it – and still do) * Prosumer = Producer + Consumer Andreas M. Kaplan 2010 5
  • 6. Importance of social media (2): Companies enter the social media landscape How important are these services What is the biggest barrier to you to your business? employing Marketing 2.0? 3,2% 8,5% 22,3% 35,1% 23,4% Budget Technology Staffing Knowledge Exec Buy-in Community is not receptive Pursuit Group 2009 Andreas M. Kaplan 2010 6
  • 7. 1) Definition and importance of Social Media 2) Classification of Social Media 3) Application of Social Media: 10 pieces of advice Andreas M. Kaplan 2010 7
  • 8. Classification of social media Social presence/ Media richness Low Medium High Blogs and Social networking Virtual social High microblogs sites worlds (e.g. Twitter) (e.g. Facebook) (e.g. Second Life) Self- presentation/ Self- disclosure Virtual game Collaborative Content worlds Low projects communities (e.g. World of (e.g. Wikipedia) (e.g. Youtube) Warcraft) Kaplan and Haenlein, 2010, p. 62 Andreas M. Kaplan 2010 8
  • 9. Classification of social media Social media differ in the degree of “social presence” (i.e. acoustic, visual, and physical contact that can be achieved) and in the degree of “media richness” they possess (i.e. the amount of information they allow to be transmitted in a given time interval) Social media differ in the Social presence/ Media richness degree of “self-disclosure” it requires (i.e. the conscious or unconscious revelation of personal information that is consistent with the image Self- one would like to give) and disclosure/ the type of self-presentation Self- it allows (i.e. the desire to presentation control the impressions other people form of oneself) Andreas M. Kaplan 2010 9
  • 10. Collaborative projects (e.g. Wikipedia) Collaborative projects enable the joint creation of content by many end- users. Within collaborative projects one differentiates between wikis (e.g. Wikipedia), i.e. websites that allow users to add, remove, and change text- based content, and social bookmarking sites (e.g. Delicious), which enable the group-based collection and rating of Internet links of media content. Exemplary marketing functions performed via collaborative projects E.g. the computer software producer Adobe Systems improves its marketing intelligence by maintaining a Marketing research list of bookmarks to company-related websites and conversations on Delicious E.g. Intuit (company developing financial and tax preparation software) maintains a free collaborative Relationship marketing tax resource and research wiki (Tax Almanac) which helps to create long-term client relationships E.g. consumers who desire information about a Communication company or brand often have a first look at the respective Wikipedia entry Andreas M. Kaplan 2010 10
  • 11. Blogs and Microblogs (e.g. Twitter) Blogs, which represent the earliest form of social media, are special types of websites that usually display date-stamped entries in reverse chronological order. Also microblogs (e.g. Twitter) which differ from a traditional blog in that their content is typically much smaller (nothing but e.g. a short sentence), belong to this category of social media. Exemplary marketing functions performed via blogs and microblogs E.g. the coffeehouse chain Starbucks uses its corporate Product development blog ‘MyStarbucksIdea’ to collect customer ideas in order to create new products E.g. Jonathan Schwartz, CEO of Sun Microsystems, Communication maintains a personal blog to improve the transparency of his company E.g. the low-cost airline Jet Blue Airways sends out its weekly “cheeps” each Monday morning, i.e. Twitter Pricing messages about special promotions on available seats in flights on the following weekend Andreas M. Kaplan 2010 11
  • 12. Content communities (e.g. Youtube) Content communities offer the possibility of sharing media content between users. They exist for a wide range of different media types including text (e.g. Bookcrossing), photos (e.g. FlickR), videos (e.g. Youtube), and PPT presentations (e.g. Slideshare). Exemplary marketing functions performed via content communities E.g. the alcoholic spirits producer, Absolut Wodka, Relationship marketing strengthens its customer relationships through its own Youtube channel E.g. several companies, such as the car manufacturer Communication BMW, put their company profile in PPT format on Slideshare ready to use for the interested consumer E.g. the computer manufacturer Apple (via ITunes) Distribution proposes consumers to buy their favorite song directly from Youtube Andreas M. Kaplan 2010 12
  • 13. Social networking sites (e.g. Facebook) Social networking sites (e.g. Facebook, LinkedIn, MySpace) are applications that enable users to connect by creating personal information profiles, inviting friends and colleagues to have access to those profiles and sending e-mails and instant messages between each other. Exemplary marketing functions performed via social networking sites E.g. Zappos, online shoe and clothing retailer, analyses Marketing research consumer comments on their social networking sites for marketing research purposes E.g. Warner Brothers, entertainment company, promoted its movie ‘Fred Claus’ through a Facebook Communication profile via which visitors could watch trailers, download graphics, and play games E.g. the Internet florist 1-800-Flowers.com offers a Facebook widget ‘Gimme Love’ whereby users can send Distribution virtual bouquets to friends, or be directly transferred to the company’s website to send real flowers Andreas M. Kaplan 2010 13
  • 14. Virtual game worlds (MMORPG) (e.g. World of Warcraft) Virtual game worlds (e.g. World of Warcraft) are a subgroup of virtual worlds and require their users to behave according to strict rules in the context of a massively multiplayer online role-playing game (MMORPG). Exemplary marketing functions performed via virtual game worlds E.g. McDonalds enables Sims Online players to operate a McDonald's kiosk and earn "Simoleons" as a virtual Marketing research business. Eating at virtual McDonald's will satisfy a Sim's hunger and hedonic desires E.g. car manufacturer Toyota used pictures and mechanics from the World of Warcraft application in its Communication latest Tundra commercial to reach the 2.5 million players in the US alone E.g. Pizza Hut permits participants in the EverQuest II Distribution fantasy, virtual game world to order food for delivery from Pizza Hut Inc.'s Internet site Andreas M. Kaplan 2010 14
  • 15. Virtual social worlds (e.g. Second Life) Virtual social worlds (e.g. Second Life) are the second subgroup of virtual worlds and allow residents to choose their behavior more freely and to, essentially, live a virtual life similar to their real life. Exemplary marketing functions performed via virtual social worlds E.g. the hospitality company Starwood Hotels & Resorts pretested its new hotel ‘Aloft’ virtually within Marketing research Second Life to obtain feedback of potential customers – which resulted in the decision to build radios in the guest rooms’ showers E.g. the bank Wells Fargo is present on the Active Communication Worlds, communicating with current and potential future customers E.g. shoe and apparel manufacturer Nike sells virtual Distribution shoes on the social world There.com Andreas M. Kaplan 2010 15
  • 16. 1) Definition and importance of Social Media 2) Classification of Social Media 3) Application of Social Media: 10 pieces of advice Andreas M. Kaplan 2010 16
  • 17. Social media have both a social- and a media- component Social media = Media + Social Media Social Andreas M. Kaplan 2010 17
  • 18. Ten pieces of advice for companies deciding to use social media (1) 5 points about using media Choose carefully the type of social media you want to use Give all employees Pick the application access to social you want to rely on – media applications or make your own Integrate social media Ensure that social into your traditional media activities are media plan aligned with each other Andreas M. Kaplan 2010 18
  • 19. Ten pieces of advice for companies deciding to use social media (2) 5 points about being social Be active: Ensure that your content is fresh and engage in discussions Be honest: Be interesting: Never expect that social media Listen to clients and post users won’t find out you lying content fitting their expectations Be unprofessional: Be humble: Avoid overly-professional Learn the basic rules Content offerings before participating Andreas M. Kaplan 2010 19
  • 20. Further reading • Carter Sandy (2009) The new language of Marketing 2.0 – How to use angels to energize you market, IBM Press. • Kaplan, Andreas M., Haenlein, Michael (2011) The early bird catches the…news: Nine things you should know about micro-blogging, Business Horizons. • Kaplan, Andreas M., Haenlein, Michael (2010) Users of the world, unite! The challenges and opportunities of social media, Business Horizons. 53(1), 59-68. • Kaplan, Andreas M., Haenlein, Michael (2009) The fairyland of Second Life – About virtual social worlds and how to use them, Business Horizons, 52(6), 563-572. Andreas M. Kaplan 2010 20