1. Dr. Efthymios Constantinides Assistant Professor School of Management and Governance / NIKOS Institute University of Twente [email_address] The Social Web as Marketplace A Primer in Social Media Marketing 4 th Mediterranean Conference on Information Systems Athens 25 – 27 September 2009

3. Why is Web 2.0 / Social Media an issue for Marketers?

4. Marketing is changing Declining Effects of Traditional Marketing Strategies / Tools Increasing Customer Power Decreasing Customer Trust

5. More Information More Alternatives Easy Transaction The Customer has much more Power than ever before: 3 main reasons: the Internet (1995 – 2005) provided users with Source: Glen Urban, 2005

6. Customer power further increased with Social Media / Web 2.0

8. Question 1 What is Social Media / Web 2.0?

9. Web 2.0 / Social Media= User Generated Content

10. Web 2.0: Definition Web 2.0 is a collection of open source, interactive and user-controlled online applications expanding the experiences, knowledge and market power of the users as participants in business and social processes. Web 2.0 applications support the creation of informal users’ networks facilitating the flow of ideas and knowledge by allowing the efficient generation, dissemination, sharing and editing/refining of content. Source: Constantinides and Fountain, 2008

12. Source: Constantinides and Fountain, 2008 Web 2.0 Dimensions Application types/ Social Media Social Effects Enabling Technologies Blogs Social Networks (Content) Communities Forums/Bulletin Boards Content aggregators Empowerment Participation Openness Networking Conversation Community Democratization / User control Open Source RSS Wikis Widgets Mashups AJAX

13. Question 2 What are the effects of Web 2.0 on customer behavior?

14. Traditional Marketing Marketing in Web 1.0 environment Marketing in Web 2.0 environment

17. Question 3 What is the position of Web 2.0 as part of the (online) marketing strategy?

18. The E-Marketing Strategy Pyramid Product/ service Marketing/ E-Marketing Organization Web 1.0 Web site Web 2.0 Social Media Level 1 Level 3 Level 2 Level 4

19. Question 4 How Web 2.0 applications can be engaged as marketing tools

30. Innovation Approaches Closed Innovation: company generates and commercializes ideas. Self-reliant R&D, Most of the 20 th Century R&D R&D R&D Partners Partners Open Innovation : Innovate in networks, company commercializes both its own ideas as well as innovations from other firms Chesbrough, 2003 Distributed Co-Creation: Participation of the final user User

36. Thank you