IT Strategy

Impact of Social Computing on Marketing

December 17, 2007 by Raj Sheelvant

Read a very pertinent article on Social Marketing on Knowledge@Wharton. The article talks that the buzzwords like Fansumers, viral video etc are more than the marketing gimmicks. These trends are game changers and are going to impact the conventional marketing thinking at Madison Avenue. There is a real need by the consumer to be heard and make an impact on the future product. According to the article “Online technologies allow customers to communicate in new ways with one another, and companies must decide whether to ignore, co-opt or dive into these new waters of interactivity.” Those companies that want to dive into these new developments in Web 2.0 will find that ‘peer’ production has had the disruptive effect on 2 aspects of marketing.

1. Market Research Tool: New and large number of willing and mostly unpaid consumers can be tapped to understand their concerns and objectives. Market Research can be driven by the consumers and firms can take the role of ‘facilitation’.
2. New Channel for Branding: You Tube video and other viral marketing technique has created new ways to ‘soft-pedal’ the brands – brands that are not ‘in your face’ yet ubiquitous. The marketing department needs to understand that their brand message needs to be less aggressive.

The most important conclusion the article makes is “Brands are not in control any longer, and those that let go and put the power in the hands of the user will do well”. Thus Web 2.0 has brought about major transfer of brand control. Let go of your control on your brand – is the message but it’s the hardest thing for a company to let go. But, sooner or later the businesses will understand that by democratizing their brand’s control, a far larger captive audience can be drawn to the product. Letting go of the control on the brand will automatically create an ecosystem of consumers who have the vested interest similar to that of the firm to make that brand successful. But the firm needs to manage and monitor that ecosystem.

Take Dell as an example. Dell now provides computer with Linux operating system. There is a captive base of Linux fans who want the Dell Linux box to succeed. Dell marketing department can take advantage of the Linux users’ vested interest to create a sustained buzz both online of offline.  Another Example is branding of Ron Paul, the Republican Presidential Candidate here in the US. Yesterday his supporters raised $6 million on internet in a single day! All this was done by the supporters without coordinating with Ron Paul. Ron has set his initial vision for America and his supporter using online social media have empowered themselves to promulgate his brand. If you look at it, supporters of Ron have more control on his brand than Ron himself. Because of that, branding of ‘Dr. No’ is far more pervasive compared to other Republican and Democratic contenders.

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