Social Media Marketing - Tips for Businesses

Before we delve into the topic of Social Media Marketing, we first need to clarify what social media actually is. Social media has become a term that describes a variety of digital media, applications, and web 2.0 technologies.

They all share the feature that users can interact communicatively through a specific platform on the internet via messages, comments, reactions, or other contributions, and can also actively participate in the creation of media content.

Social media is no longer just a flash in the pan: Social networking is popular and increasingly used on mobile devices. Users search, ask, comment, photograph, film, and share everything that seems important to them with their virtual friends or the whole world.

This behavior is very useful for companies because users not only share personal things but also discuss their favorite products with their friends.

Fig.2: ARD/ZDF Study

The viral word-of-mouth helps in forming opinions and can also spark buying interest. A satisfied customer loves to recommend products.

Of course, there can also be negative criticism, but if you as a company take this criticism constructively and can fix the product error, you have the chance to improve the quality of your products and quickly spread the word again via social media.

The connected consumer uses all available sources of information to find out whether the product or service meets their needs.

Companies now have the opportunity through social media to present themselves and also to expand their market or to improve their customer service.

Fig.3: ARD/ZDF Study

While mass media like television, radio, or newspapers are characterized by one-dimensional communication, social media offers a multidimensional exchange in real-time. Through social media channels, users are both broadcasters and recipients at the same time. Social networks encourage global exchange, offering a diverse combination of text, image, and video. Additionally, technology supports users in spreading their messages quickly, as access to social media tools is cost-effective. Publishing via social media is immediate and without time delay. Furthermore, there is user-friendliness (usability) and currency. Social media allows for nearly instant changes to publications.

Definition of Social Media Marketing

Social media marketing is a marketing term that describes strategies and tactics through which companies or organizations use social media to achieve business goals. Frequently addressed stakeholder groups in social media marketing include potential customers, employees, bloggers, journalists, or the public.

In addition to using social media, social media marketing on a strategic level also includes managing a social media culture, the role of employees (e.g., through social media guidelines), decisions on the social media scope (e.g., active or passive usage), and organizational anchoring within the company to implement business goals.

Thus, in management research, social media marketing is understood as an interdisciplinary and cross-departmental concept.

Social media marketing is thus defined as part of online marketing. Still, social media marketing is more than just writing advertisement texts that achieve high click-through rates or generate conversions.

The aim of social marketing is to enhance the dialogue with customers. Social media engagement and the community aspect are crucial here. Social media marketing offers the chance to receive honest and sincere customer feedback without having to commission market research institutes.

What Social Media Channels Are There?

There is a multitude of social networks with various characteristics, functionalities, user numbers, goals, and the possibility of native advertising.

The most well-known and very successful social network is Facebook with its integrations of Instagram and WhatsApp.

Fig.4 Screenshot Facebook

The well-known search engine also offers opportunities to showcase yourself through Google+ or YouTube. Other familiar networks include Twitter, Snapchat, and Pinterest. The most successful business networks are LinkedIn and XING.

Fig.5 JIM Study

Now you have the choice: For successful social media marketing, it is crucial to engage with the possibilities and target groups of social networks. You should also be well acquainted with the channel-specific features.

Facebook provides friends with the opportunity to connect digitally and communicate globally. Clubs, NGOs, and companies also have the chance to present themselves there via fan pages. But not only that: Through Facebook advertising, companies can very precisely place and target their ads.

WhatsApp and Snapchat are messenger services. They can now also be used for customer service, answering users' questions promptly, assisting them, and sending special offers.

Fig.6: WhatsApp Screenshot

Instagram and Pinterest are image networks. While Instagram users mainly put themselves in the spotlight, Pinterest is a platform for inspiration. That means users on Pinterest are generally ready to purchase. Through

influencer marketing products can be showcased very well on Instagram, and, of course, receive feedback from peers in the target group.

Fig.7: Instagram Screenshot

When it comes to business networks like LinkedIn and XING, LinkedIn operates worldwide, while XING is confined to the DACH region.

Furthermore, these platforms are ideal for marketing B2B products and supporting traditional personnel management. Job postings can be prominently placed on these networks.

Fig.8: LinkedIn Screenshot

Advantages and Disadvantages of Social Media Marketing

Using social media has become standard over the last ten years and is also an important cornerstone of online marketing for many companies. If you decide on a social media strategy for your company, you should consider the pros and cons.

Pro Social Media

With a cheaper marketing budget, you can achieve more than through traditional media like print or TV. You also have fewer scatter losses and can target your audience as accurately as possible in social networks.

Imagine a TV evening during primetime: In the commercial break, car brands, beauty products, cleaning agents, foods, and travel providers are advertised. There's something for every audience. But can you measure who eventually bought your product?

Through social media channels you have the opportunity to target your audience as precisely as possible, and you can tailor your ad formats to specific countries.

Let's look at a target audience in Germany: You can create campaigns through a social network that serve, for example, the southern and northern German dialects and can geographically direct the ads accordingly.

Emphasis in social media is on the social part, i.e., you receive quick, honest, and detailed feedback from your customers, enabling a closer relationship with them. You can respond to customer inquiries promptly and deliver solutions.

If you are a progressive and active company, you can also use business networks to recruit new talent.

Contra Social Media

Social media requires time and effort. Many companies are unwilling to devote these resources. For some companies, managing social media marketing is a full-time job, requiring new hires. In some cases, outsourcing social media marketing to a specialized external agency can be an option, but it naturally incurs more costs.

Networks are also changing. Do you remember Myspace or Studivz? Today it's still Facebook, Instagram, Twitter, and the like – but which networks will still be around tomorrow?

There are other hidden costs. Building relationships with customers takes time. In the "offline world," developing customer relationships takes just as much time.

Social Media Marketing Strategy

Once the decision to use social media marketing is made, it's important to develop a social media strategy. Various social media marketing strategies exist, which can be linked to business goals.

• Increase brand awareness

• Boost brand loyalty

• Increase interaction with the community

• Achieve more reach and explore new target groups through new communication channels

• Use viral campaigns on the social web to increase brand engagement

• Showcase a positive company reputation and prevent negative reputation

• Conduct market research via social media to gain consumer insights

• Improve customer service, increase customer satisfaction

• Sell products via social networks

• Use crowdsourcing to develop product ideas

• Finance projects with the community through crowdfunding

The best method to define a social media strategy is to use the POST method. POST stands for "People," "Objectives," "Strategy," and "Technology."

This means starting with analyzing the audience, deriving the goals from it, then defining the social media marketing strategy, and finally choosing the technology for monitoring.

Determining Target Groups

Start with the customers. It's best to find out where and to what extent customers are active on the social web. Which social networks do they use? Do users write blog posts, share pictures, or do they prefer to watch videos online? Where do users get information about your products? What information do users wish or need to decide to buy your product?

How can you obtain all this information? Studies on internet usage can help you, such as the ARD/ZDF Online Study or KIM and JIM Study or the Shell Study. Additionally, the Sinus Market and Social Research Institute provides relevant information about your target group.

Fig.9: ARD/ZDF Online Study

Defining Goals

You define your goals based on the preceding target group analysis. Depending on the socio-demographic characteristics of your target group, you can use different portals. Social media marketing doesn't just mean defining your target group by age and gender; you need to create communication, interaction, and participation needs.

How do you define your goals using a social media strategy? Similar to traditional marketing, social media also allows for setting qualitative communication goals (brand image), which can be measured using metrics (users, impressions, likes, reactions), and quantitative marketing goals.

It's important that the goals are specific, measurable, achievable, realistic, and time-bound. Does this sound familiar? Exactly – to implement your goals realistically, you can rely on the SWOT analysis. This acronym stands for Strengths (Strengths), Weaknesses (Weaknesses), Opportunities (Opportunities), and Threats (Threats).

Fig.10: SWOT Analysis

Define qualitative goals first. These can include:

• Brand branding

• New product positioning

• Community engagement

• Improving online reputation

• Enhancing customer service

• Acquiring new customers

You can use the following metrics for these goals:

• Impressions/Reach/Views

• Created content like blog posts/reviews/comments

• Inquiries, online orders

• Shares (shared content), clicks

• Fans, followers

• Downloads: tutorials, videos, podcasts, etc.

For successful social media marketing, you need additional tools.

The editorial plan helps you implement your social media strategies and achieve your goals. It provides planning security and prevents you from running out of topics and content. Social media guidelines are equally important. Social media guidelines convey necessary social media skills. They regulate the use of social media activities, clarify legal issues, including data protection and copyright. On May 25, 2018, the General Data Protection Regulation (GDPR) came into force. It regulates the processing of personal data by private companies and public bodies across the EU. The aim is to ensure the protection of personal data within the European Union, while also allowing free data movement within the European internal market.

A social media marketing manager may not know the details of this rule. In a Social Media Guideline, you can lay down legally-compliant regulations for your company so that your employees are informed in a simplified manner and can act accordingly.

Social Media Monitoring

An essential part of a promising social media strategy is social media monitoring. Monitoring refers to determining specific topics, actors, or keywords on the web. Social media monitoring is useful for audience analysis but also for market and inventory analysis. It's advisable to use several tools in parallel for monitoring.

Besides free tools, it might also be worthwhile to consider a paid tool. The advantages of these tools often lie in their wide variety of filters and functionalities, as well as extensive statistics.

To get an initial overview, Google Alerts is a very good option. With Social Mention, you have the ability to filter by social media channels.

Fig.11: Screenshot Social Mention

Our favorites of the paid tools:

• Buzzstream

• Brandwatch

• Clarabridge

What Does Social Media Offer Your Company?

Social media marketing is not a cure-all for increasing sales. Social network marketing is not a one-way street but a dialogue tool. Social media marketing helps build, strengthen, and present your company more transparently. Additionally, you can showcase your company and support your recruiting process.

Through social media activities, you can gain a competitive advantage and get direct feedback from customers.

In summary, you have the opportunity to implement a variety of business goals with social media marketing:

• Increase brand awareness

• Improve customer loyalty and customer service

• Improve search engine rankings

• Social media communication (quick reachability in the target group through social signals)

• Conduct e-commerce through social networks

• Support recruiting and personnel management

What Can We Do for You?

We are happy to support you in developing your social media marketing strategy or to create social media campaigns with you. Contact us and our social media experts will be glad to advise you.