Social Media Marketing-Exam 1 Chapter 1

Social Media
tool/service uses internet that bring about communication
Crowdsourcing
harnessing the collective power/knowledge of crowd
User-defined content
production of content by the general public; trends on twitter
Network effects
a good or service becomes more valuable when more people use it
Scalability
capability to operate under an increased workload
Perpetual beta
development and release of service being constantly updated
Reputation economy
reputation is shaped by the contributions of consumers
Social Media Evolution
1. Traditional (broadcast, radio, print)

2. Tradigital (banners, email)

3. Social Media (networks, blogs, communities)

Paradigm Shift
information flows through communication, causes change in beliefs and theories
4 P’s
price, product, place, promotion
Social Community
relationships, common activities people do through two-way/multi way comm. ex fb
Social Publish
sites that help spread content to audience ex. youtube
Social Entertainment
play and enjoyment online ex. games, music
Social Commerce
online buy/sell products assisted by social media ex. groupon, facebook ads
Social Media Marketing
Pros: cheap, interactive, measurable,

Con: time consuming, go away easily

Traditional Marketing
Pro: tangible

Con: costly, one-way, hard to measure

Consumer Purchase Process
1. Increase awareness

2. Influence desire

3. Encourage trial

4. Facilitate purchases

5. Cement brand loyalty