Social Media and Marketing

Social media marketing has piqued my interests since its inception. Growing up online and being an early adopter to social media during my undergrad has made me very familiar with the various social media tools – although I cannot claim to be an expert (but I don’t believe anyone truly is a social media expert). Since I am in the PR/marketing field, I have tried to learn as much about social media and the benefits, when to use … and when NOT to use social media.

I have been working at the Indiana State Medical Association for seven years and social media has definitely grown in usage and popularity during that time, especially for communications, public relations and marketing. Physicians are a unique audience to reach for many reasons, and social media communications is no exception. Doctors, on the whole, are usually early adopters and embrace technology, but social media was intimidating for physicians early on. This was mostly due to fear of the unknown when it comes to personal privacy, patient privacy and risks of HIPAA violations. Other physicians simply didn't feel had extra time in their daily schedules to explore social media and how it could help their practice.

The ISMA has used Facebook, Twitter and LinkedIn for communication with physician members. Adoption has been a struggle, so the ISMA has not discontinued any other forms of traditional communication, but uses social media to complement with current events and photos. The ISMA communications staff posts news or current events on social media, which also has a feed on the ISMA homepage. The government relations staff has used Twitter and Facebook to communicate up-to-the-minute legislative news.

In previous years, the physician members and their staff have gravitated to social media and have become more comfortable online. The ISMA social media has still remained a method to add to other forms of communication effectively and reach new audiences, but will not completely replace any other communication.

Being current and distributing breaking news is a very effective use of social media - having relevant content is key. The types of messages that work best in social media are those that engage the audience and spark discussion or two-way communication – for the ISMA, between members and the organization or between colleagues. It is a useful method for initiating audience feedback and gaining insight. 

Social media use has definitely become a game changer for marketing and communications and has stolen some thunder from other communication methods. The ability to communicate two-way, in real time from practically any location with a mobile device has given social media the edge over other forms of traditional media/communication. It has become dominant, but in my personal opinion, I don’t see traditional communication forms becoming completely obsolete, at least not in the near future. Some businesses and organizations will be able to replace traditional communications, but the ISMA is a good example of why those forms of communication won’t quickly become obsolete.

Rosewood Case

Rosewood hotels grew and built their brand on being a “collection” of unique properties. Their guests chose Rosewood properties (over the competition) because they were “unique, one-of-a-kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors.” Most guests didn’t know or associate the Rosewood name with each individual property. They have placed great influence on each property being unique and having a sense of place with local managers determining the standards of luxury. Since this is a foundation for the individual property brands, I would suggest being very careful with rebranding.

Hospital/health care conglomerates in Indiana have the same marketing challenge. IU Health branded all of their locations with the IU name for consistency, but also because IU medicine is a familiar trusted name (in Indiana anyways). IU Health had to be careful when renaming certain hospitals that already had a positive reputation. This example worked for IU because of name recognition; however, for Rosewood, rebranding would have the opposite effect on brand recognition/value.

St. Francis Health has done similar rebranding/renaming efforts, but more subtle and long term than IU Health. The health care system gradually renamed hospitals with respect to their original names so patients (customers) would not be confused or turned off by the new names. The names have gradually been changed again (For example - Franciscan St. Elizabeth Health – Crawfordsville) to build the Franciscan Alliance, formerly Sisters of St. Francis Health Services, Inc. 

I would recommend this “soft corporate branding” approach to Rosewood if they are determined to rebrand and add the Rosewood name to each of the properties – do it in phases, and be sure not to offend loyal, lifetime customers or lose individual name recognition. Begin by adding the Rosewood name along with the individual location name and as time passes, conduct brand recognition studies before completely changing all branding to only Rosewood. 

Customer Lifetime Value

I work for the Indiana State Medical Association (ISMA), a member based physician organization. The ISMA keeps a detailed database of all its members including dues dollars and other financial contributions such as political action committees. The database also shows each member’s history which can be used to analyze the physician’s behavior and predict their future actions. This gives the organization a unique position to determine customer lifetime value. The database directly shows how much money each member contributes and how long they have contributed – which gives them a number value. These numbers can be compared to marketing and acquisition costs.

The database can segment members into groups based on specialty and demographics to allow for marketing messages for retention campaigns.  Since the acquisition cost of a new member is high, and convincing a physician to renew membership after they drop is very difficult – member retention is a priority. This information has been used recently to implement discounts for group memberships and multi-year memberships.

The database also shows which members engage with the organization and attend educational seminars (another source of income) The money these members spend on ISMA educational offerings not only gives these physicians/staff additional value, but also gives insight for marketing future programs.

What is a brand? What do they do? Why are they important?

The term “brand” originated from branding cattle, leaving a mark of ownership. Larger companies manage their identities for competitive advantage, solving problems and leveraging change. A brand’s image is the consumer’s perception. Sometimes this perception is assumed but often it is a product of marketing messages, communications and brand experiences. (Gil Bashe)

What exactly defines a brand? Is it a logo? Is it a color scheme? Is it a slogan? A tradition? A promise? A brand is made of all these parts and more.  Many small elements go into branding. Some brands are built around one of these aspects while many are created around a combination of pieces to make a successful whole. Eric Berkowitz defines a brand as “any name, term, colors, or symbol that distinguishes a seller’s product from another.”

Brands identify a company, its products and most importantly, its promise and perception in the mind of the consumer. Brands are important because they are the first impression a consumer has when they need a company’s product or service. A consumer might go for years without needing or buying a car, but when the time comes to shop for a car, they will recall what comes to their mind first for certain brands – quality, safety, luxury, etc. They might buy a Coca-Cola because they remember it from their childhood, or a Coors Light because it was the first beer they shared with their dad.

Brands create value because it is one of the easiest ways for consumers to evaluate their purchase decisions.

A brand is a promise and a symbol of trust. Once a product or service fulfills its customers and incites repeat business, consumers develop loyalty to a specific brand. Some of the most successful brands are built on a promise of consistency. Customers know what to expect when they order a Big Mac, and McDonald’s delivers the same product/experience at every one of their locations.

Brand loyalty is a result of keeping the brand promise and always giving the consumer what they want and expect. When customers start to promote products and services they consume and love, and become ambassadors for the brand, the customers become the marketers.

I’m a runner, so some of my favorite brands are for shoes or apparel. I have gone through many different brands of shoes and learned the hard way which brands are more dependable and comfortable. Brooks and Saucony are brands that serve me best – when I need a new pair of running shoes, I immediately look at these two brands. Another brand of apparel that I have become loyal to is Under Armour. I have UA apparel for all seasons because I know the brand is a leader in running fabric technology, and I associate the positive experience of being dry and comfortable (and warm in extreme winter temperatures). This positive experience in my mind makes the UA brand first on my list of choices when I am shopping for new running clothes.

Brands should definitely be on the balance sheet in some form because they have substantial value for companies, products and services. They directly affect the bottom line and consumer behavior that builds sales/customer loyalty.

References

Bashe, Gil, and Nancy J. Hicks. Branding Health Services: Defining Yourself in the Marketplace. (2000). Aspen Publishers, Gaithersburg, Maryland.

Brands and the mix

The first brand that comes to my mind that is highly effective in bringing all of the elements of the marketing mix together is Bose. When I was in high school, I remember being drawn into Bose experience. I was not the typical Bose customer, however - most were older consumers with disposable income. The tangible product was a sound system that filled the room with vibrant sound, but not stereo equipment and speakers.

Bose distributes their products through Bose stores with staff that are knowledgeable of the product and the company also provides service to their products. Bose products are also sold through approved vendors at a price that is controlled by the manufacturer (I learned about this the hard way when I could never buy the Bose product I wanted on any sales). Since Bose controls the price and the place, the brand can establish a better sense of value in the consumer’s mind. I knew when I was shopping for Bose, that since the price was the same everywhere, I could focus on their product and the benefits instead of where to go to find the best deal. I also knew I was getting a valuable product. The store also allows consumers to come in an experience the products before they buy, which is a key to selling many products. It also gives an opportunity for trained staff to educate the consumer on benefits and why Bose products are better than the competition.

Another interesting twist on the place portion of the marketing mix is auto manufacturers that equip cars interiors with Bose sound systems. This is directly related to price and demographics because these systems are usually only offered in expensive luxury vehicles.

Another smaller product that was created to appeal to consumers of slightly less disposable income of those who buy the complete systems is the wave radio. It was designed to be a one piece product, small self contained radio that would perform like a large stereo system.

Bose later entered into a new market by producing headphones. These products were tailored towards younger consumers. The price point is appealing to those who don’t want to invest in a premium Bose speaker system, but is substantially more expensive than average consumer-grade headphones.

Bose communicates the message of the benefit of real life, premium sound that fills the room. Bose messaging also conveys status and quality.

I will add on to a topic from my previous blog entry including iPods and Apple. The Apple brand is innovative and always one step ahead of the competition, a true pioneer. Apple Macintosh computers have been a huge player in commercial and personal computer technology and the iPod became a household name and a “must have” for many consumers of all ages, and iPhone set the bar for cellular phones and smartphones. Steve Jobs introduced the iPad that most consumers didn’t even realize they wanted/needed until it existed. These are all tangible products the company offers, which lead to the experience benefits. One thing Apple is known for is controlling the entire experience for their customers. This starts with sleek, stylish, modern hardware that continues with software including iTunes for iPods and apps for mobile devices This allows Apple to not only grasp market share, but control every aspect of the product. 

Apple products have many specific targets such as active people for iPods and very specific customer targets for iPads. One unique example of a niche group for iPads that is growing is physicians using the tablet devices for electronic health records. Specific targets and apps allow Apple to tailor their products to these various target markets with different needs.

Price and place are controlled through Apple stores and “approved re-sellers” which are select stores that are allowed to carry Apple products. Apple stores provide complete customer service with “geniuses” and consistent pricing similar to Bose.

It is safe to say that Apple has brand recognition - when people see the logo, they have a vision of a product and experience in their mind already. Steve Jobs was a pop star of invention that personally introduced his company’s products during unveiling events that created media frenzies. Apple has a lot of loyal customers who continue to buy many products so this communications approach is a good way to reach target markets.