Description
BLACKBOOK MUMBAI UNIVERSITY ON TOPIC : SOCIAL MEDIA MARKETING IN BANKS
CHAPTER I
INTRODUCTION TO TRADITIONAL &
INTERNET METHODS OF MARKETING.
Traditional marketing is a rather broad category that
incorporates many forms of advertising and marketing. It's the
most recognizable types of marketing, encompassing the
advertisements that we see and hear every day. Most traditional
marketing strategies fall under one of four categories: print,
broadcast, direct mail, and telephone.
rint marketing is the oldest form of traditional
marketing. !oosely defined as advertising in paper form, this
strategy has been in use since ancient times, when "gyptians
created sales messages and wall posters on papyrus. Today,
print marketing usually refers to advertising space in
newspapers, magazines, newsletters, and other printed materials
intended for distribution.
#roadcast marketing includes television and radio
advertisements. $adio broadcasts have been around since the
%&''s, and the first commercial broadcast(a radio program
supported by on)air advertisements(aired on *ovember +,
%&+'. Television, the ne,t step in entertainment technology, was
-uicker to adopt advertising, with less than ten years between
its inception and the first television commercial in %&.%.
1
/irect mail marketing uses printed material like
postcards, brochures, letters, catalogs, and fliers sent through
postal mail to attract consumers. 0ne of the earliest and most
well)known e,amples of direct mail is the 1ears 2atalog, which
was first mailed to consumers in %333.
4inally, telephone marketing, or telemarketing, is the
practice of delivering sales messages over the phone to
convince consumers to buy a product or service. This form of
marketing has become somewhat controversial in the modern
age, with many telemarketers using aggressive sales tactics. The
5.1. federal government has passed strict laws governing the
use of telemarketing to combat some of these techni-ues.
1.1 PROS AND CONS OF TRADITIONAL
MARKETING
Pros of Traditiona Mar!"tin#$
• Traditional methods may be the only means of reaching your
particular group of consumers. 4or instance, if you are
interested in targeting retiring 2"0s, much of this demographic
isn6t utilizing the internet or social media channels.
• erson)to)person selling is considered by many a strategy of
traditional marketing. There is definitely a time and place when
this type of direct selling is the most effective way to market a
product or service.
2
• Tangibility. Traditional marketing offers hard copy material.
There is something to be said about handing a consumer some
tangible printed material they can flip through at their leisure.
Cons of Traditiona Mar!"tin#$
• ",pensive 7 2ost rohibitive: urchasing advertising for T8,
radio or print can be very costly prohibitive to most small
businesses. rinting hard copy brochures, business cards and
mailers is e,pensive.
• /ifficult to Track $esults: Traditional marketing is a lot like
throwing things against the wall and hoping they stick. It is
tough to track real -uantitative results.
• 5sually $e-uires 0utside 9elp: rinting materials, buying
media and creating radio advertisements all re-uire hiring
outside help, which adds to costs.
• 4orced: Traditional marketing is usually forced upon the
consumer, they don't necessarily ask for it.
3
1.% DIFFERENCE &ET'EEN SOCIAL AND
TRADITIONAL MARKETING
4
5
1.( INTERNET MARKETING$
Internet
r online; marketing is the process of marketing
a product or service using the Internet. This can be both for
those whose business is derived solely from the Internet :i.e.
mommy blogger; and for those who have an actual brick and
mortar business but choose to advertise via the ork 5niversity6s 1tern 1chool of #usiness, latest
studies estimate that &= percent of prestige brands have an
active presence on Instagram and include it in their marketing
mi,. ouTube brings for advertisers. 2ertain ads are presented with
certain videos since the content is relevant. romotional
opportunities such as sponsoring a video is also possible on
>ouTube, Ifor e,ample, a user who searches for a >ouTube
video on dog training may be presented with a sponsored video
from a dog toy company in results along with other videos.I
>ouTube also enable publishers to earn money through its
>ouTube artner rogram.
D"i*io3s5 Di## and R"ddit
18
/elicious, /igg and $edditslashdot are popular social
bookmarking sites used in social media promotion. They are
heavily used by the social media marketers to promote their
websites due to their ability to share links.
&o#s
latforms like !inkedIn create an environment for
companies and clients to connect online. 2ompanies that
recognize the need for information, originality, and accessibility
employ blogs to make their products popular and uni-ue, and
ultimately reach out to consumers who are privy to social
media.
#logs allow a product or company to provide longer
descriptions of products or services can include testimonials
and can link to and from other social network and blog pages.
#logs can be updated fre-uently and are promotional
techni-ues for keeping customers and also for ac-uiring
followers and subscribers who can then be directed to social
network pages.
0nline communities can enable a business to reach the
clients of other businesses using the platform. To allow firms to
measure their standing in the corporate world, sites like
Elassdoor enable employees to place evaluations of their
19
companies. 1ome businesses opt out of integrating social media
platforms into their traditional marketing regimen. There are
also specific corporate standards that apply when interacting
online. To maintain an advantage in a business)consumer
relationship, businesses have to be aware of four key assets that
consumers maintain: information, involvement, community, and
control.
T3.0r
Tumblr first launched ad products on May +&, +'%+.
$ather than relying on simple banner ads, Tumblr re-uires
advertisers to create a Tumblr blog so the content of those blogs
can be featured through the site. In one year, four native ad
formats were created on web and mobile, and had more than
%'' brands advertising on Tumblr with J'' cumulative
sponsored posts.
%.% Ad For.ats
• S)onsor"d Mo0i" Post M ?dvertisements :?dvertisers6 blog
posts; will show up on user6s /ashboard when the user is on a
mobile device such as smartphones and tablets, allowing them
to like, reblog, and share the sponsored post.
• S)onsor"d '"0 Post M A!argest in)stream ad unit on the webB
that catches the users6 attention when looking at their
/ashboard through their computer or laptop. It also allows the
viewers to like, reblog, and share it.
20
• S)onsor"d Radar M $adar picks up e,ceptional posts from the
whole Tumblr community based on their originality and
creativity. It is placed on the right side ne,t to the /ashboard,
and it typically earns %+' million daily impressions. 1ponsored
radar allows advertisers to place their posts there to have an
opportunity to earn new followers, $eblogs, and !ikes.
• S)onsor"d S)oti#6t M 1potlight is a directory of some of the
popular blogs throughout the community and a place where
users can find new blogs to follow. ?dvertisers can choose one
category out of fifty categories that they can have their blog
listed on there.
These posts can be one or more of the following: images,
photo sets, animated EI4s, video, audio, and te,t posts. 4or the
users to differentiate the promoted posts to the regular users6
posts, the promoted posts have a dollar symbol on the corner.
0n May G, +'%. Tumblr announced customization and theming
on mobile apps for brands to advertise.
%.( Ad7"rtisin# Ca.)ai#n
Disn"89Pi:ar;s Monsters University$ 2reated a tumblr
account, M5Erumblr, saying that the account is maintained by
a NMonstropolis transplant6 and Nself)diagnosed coffee addict6
who is currently a sophomore at Monsters 5niversity. ?
AstudentB from Monsters 5niversity uploaded memes, animated
EI4s, and Instagram)like photos that are related to the movie.
21
• A))";s iP6on" ou need to put a lot of effort and time)consuming
research to get information how your customer behavior against
your products. 0n the other hand, online marketing is easy to
track. "mail marketing software can tally the number of people
who view your message. Moreover, it can the number of
advertisements that lead to purchases on online sales.
25
CHAPTER III
SOCIAL NET'ORKING FOR &ANKS.
Many banks have started using social websites to help
them with everything from healing the financial industry to
promoting their latest credit cards. #y embracing the most
popular tools available, the industry has also been embracing
the best of what social media culture has to offer, and smaller,
community banks seem to be leading the charge when it comes
to social media innovation.
This post profiles some 5.1. banks that have used social
media in their marketing and communications plans in some
interesting and successful ways. These banks have tapped into
the root of what social media means to the community, enCoying
success in the way of returning real value for their institutions.
26
1. Co..3nit8 &3idin#
#anks are not usually known for building warm and
fuzzy communities around their products and services. customers. Interaction with Een)> is comple, as
they are well)connected through social media and
mobile. 0ur survey revealed that banks used their social
media presence as a medium to converse, get feedback
from their customers and launch new products. They
can leverage or partner with other retail brands that
have successful presence in the Een)> segment by co)
branding or creating Coint offers. #anks can make their
products and services more attractive to Een)> through
personalization of services. "ach offering should be
attractive enough to be on the wish list of this
generation. They rely on opinions and word of mouth of
their peers and if banks fail to offer Ae,ceptional
serviceB they run the risk of losing their brand
80
reputation. 0ur survey revealed that though many banks
were providing new and innovative products and
services, they lagged in product launch times. #anks
with a Een)> focus had shorter product launch times as
compared to others. 1eamless multi)channel banking
offering a superior customer e,perience is key for
engaging Een)>. Innovative pricing strategies like
pricing based on relationship could help banks establish
incentives for Een)> customers to continue buying
more from the same brand instead of hunting for other
deals.
"ngaging with Een)> is a potential money)
spinner for the banking industry. #ut banks need a
dedicated engagement plan to connect with them.
#anks who have adopted a dedicated Een)> strategy
are engaging those using social media, customized
products and services and modernized banking
applications. These banks are proactively embarking on
strategies which will provide them an unbeatable early)
mover advantage in realizing the lifetime value of this
customer segment.
#anks have to now focus on 2$M and less on
gaining new customers through social websites. 1ocial
81
Media is definitely the future of Marketing. To market a
product through this channel banks have to first gain
the trust of their e,isting customers.
2ustomer $elationship will take the banks
forward in the online media space. ? trusted bank like
I2I2I commands more than = Million !ikes on
4acebook can easily market new products now.
Eovernment banks like 1#I and #0I refrain from
social media still. 4or them traditional methods are still
beneficial. 1#I has the ma,imum market in India and
thus it may not need social media now but no one
knows what the future holds.
&I&LIOGRAPH2
• www.indiatoday.com
• www.businesstimes.com
82
• www.economictimes.com
• www.delloitte.com
• www.infopedia.com
• www.moneycontrol.com
• www.utvmoney.com
• India Today
• "conomic Times
• Marketing /aily
ANNE?URE
Q.% /oes your bank have a separate department for
handling social networkingP
Q.+ 9as your database increased due to social networksP
Q.= 9ow much money has to be invested separately for
social networkingP
83
Q.. 9as social networks improved your brand imageP
Q.J 9ow is the money invested recoveredP
Q.G
BLACKBOOK MUMBAI UNIVERSITY ON TOPIC : SOCIAL MEDIA MARKETING IN BANKS
CHAPTER I
INTRODUCTION TO TRADITIONAL &
INTERNET METHODS OF MARKETING.
Traditional marketing is a rather broad category that
incorporates many forms of advertising and marketing. It's the
most recognizable types of marketing, encompassing the
advertisements that we see and hear every day. Most traditional
marketing strategies fall under one of four categories: print,
broadcast, direct mail, and telephone.
rint marketing is the oldest form of traditional
marketing. !oosely defined as advertising in paper form, this
strategy has been in use since ancient times, when "gyptians
created sales messages and wall posters on papyrus. Today,
print marketing usually refers to advertising space in
newspapers, magazines, newsletters, and other printed materials
intended for distribution.
#roadcast marketing includes television and radio
advertisements. $adio broadcasts have been around since the
%&''s, and the first commercial broadcast(a radio program
supported by on)air advertisements(aired on *ovember +,
%&+'. Television, the ne,t step in entertainment technology, was
-uicker to adopt advertising, with less than ten years between
its inception and the first television commercial in %&.%.
1
/irect mail marketing uses printed material like
postcards, brochures, letters, catalogs, and fliers sent through
postal mail to attract consumers. 0ne of the earliest and most
well)known e,amples of direct mail is the 1ears 2atalog, which
was first mailed to consumers in %333.
4inally, telephone marketing, or telemarketing, is the
practice of delivering sales messages over the phone to
convince consumers to buy a product or service. This form of
marketing has become somewhat controversial in the modern
age, with many telemarketers using aggressive sales tactics. The
5.1. federal government has passed strict laws governing the
use of telemarketing to combat some of these techni-ues.
1.1 PROS AND CONS OF TRADITIONAL
MARKETING
Pros of Traditiona Mar!"tin#$
• Traditional methods may be the only means of reaching your
particular group of consumers. 4or instance, if you are
interested in targeting retiring 2"0s, much of this demographic
isn6t utilizing the internet or social media channels.
• erson)to)person selling is considered by many a strategy of
traditional marketing. There is definitely a time and place when
this type of direct selling is the most effective way to market a
product or service.
2
• Tangibility. Traditional marketing offers hard copy material.
There is something to be said about handing a consumer some
tangible printed material they can flip through at their leisure.
Cons of Traditiona Mar!"tin#$
• ",pensive 7 2ost rohibitive: urchasing advertising for T8,
radio or print can be very costly prohibitive to most small
businesses. rinting hard copy brochures, business cards and
mailers is e,pensive.
• /ifficult to Track $esults: Traditional marketing is a lot like
throwing things against the wall and hoping they stick. It is
tough to track real -uantitative results.
• 5sually $e-uires 0utside 9elp: rinting materials, buying
media and creating radio advertisements all re-uire hiring
outside help, which adds to costs.
• 4orced: Traditional marketing is usually forced upon the
consumer, they don't necessarily ask for it.
3
1.% DIFFERENCE &ET'EEN SOCIAL AND
TRADITIONAL MARKETING
4
5
1.( INTERNET MARKETING$
Internet
r online; marketing is the process of marketinga product or service using the Internet. This can be both for
those whose business is derived solely from the Internet :i.e.
mommy blogger; and for those who have an actual brick and
mortar business but choose to advertise via the ork 5niversity6s 1tern 1chool of #usiness, latest
studies estimate that &= percent of prestige brands have an
active presence on Instagram and include it in their marketing
mi,. ouTube brings for advertisers. 2ertain ads are presented with
certain videos since the content is relevant. romotional
opportunities such as sponsoring a video is also possible on
>ouTube, Ifor e,ample, a user who searches for a >ouTube
video on dog training may be presented with a sponsored video
from a dog toy company in results along with other videos.I
>ouTube also enable publishers to earn money through its
>ouTube artner rogram.
D"i*io3s5 Di## and R"ddit
18
/elicious, /igg and $edditslashdot are popular social
bookmarking sites used in social media promotion. They are
heavily used by the social media marketers to promote their
websites due to their ability to share links.
&o#s
latforms like !inkedIn create an environment for
companies and clients to connect online. 2ompanies that
recognize the need for information, originality, and accessibility
employ blogs to make their products popular and uni-ue, and
ultimately reach out to consumers who are privy to social
media.
#logs allow a product or company to provide longer
descriptions of products or services can include testimonials
and can link to and from other social network and blog pages.
#logs can be updated fre-uently and are promotional
techni-ues for keeping customers and also for ac-uiring
followers and subscribers who can then be directed to social
network pages.
0nline communities can enable a business to reach the
clients of other businesses using the platform. To allow firms to
measure their standing in the corporate world, sites like
Elassdoor enable employees to place evaluations of their
19
companies. 1ome businesses opt out of integrating social media
platforms into their traditional marketing regimen. There are
also specific corporate standards that apply when interacting
online. To maintain an advantage in a business)consumer
relationship, businesses have to be aware of four key assets that
consumers maintain: information, involvement, community, and
control.
T3.0r
Tumblr first launched ad products on May +&, +'%+.
$ather than relying on simple banner ads, Tumblr re-uires
advertisers to create a Tumblr blog so the content of those blogs
can be featured through the site. In one year, four native ad
formats were created on web and mobile, and had more than
%'' brands advertising on Tumblr with J'' cumulative
sponsored posts.
%.% Ad For.ats
• S)onsor"d Mo0i" Post M ?dvertisements :?dvertisers6 blog
posts; will show up on user6s /ashboard when the user is on a
mobile device such as smartphones and tablets, allowing them
to like, reblog, and share the sponsored post.
• S)onsor"d '"0 Post M A!argest in)stream ad unit on the webB
that catches the users6 attention when looking at their
/ashboard through their computer or laptop. It also allows the
viewers to like, reblog, and share it.
20
• S)onsor"d Radar M $adar picks up e,ceptional posts from the
whole Tumblr community based on their originality and
creativity. It is placed on the right side ne,t to the /ashboard,
and it typically earns %+' million daily impressions. 1ponsored
radar allows advertisers to place their posts there to have an
opportunity to earn new followers, $eblogs, and !ikes.
• S)onsor"d S)oti#6t M 1potlight is a directory of some of the
popular blogs throughout the community and a place where
users can find new blogs to follow. ?dvertisers can choose one
category out of fifty categories that they can have their blog
listed on there.
These posts can be one or more of the following: images,
photo sets, animated EI4s, video, audio, and te,t posts. 4or the
users to differentiate the promoted posts to the regular users6
posts, the promoted posts have a dollar symbol on the corner.
0n May G, +'%. Tumblr announced customization and theming
on mobile apps for brands to advertise.
%.( Ad7"rtisin# Ca.)ai#n
Disn"89Pi:ar;s Monsters University$ 2reated a tumblr
account, M5Erumblr, saying that the account is maintained by
a NMonstropolis transplant6 and Nself)diagnosed coffee addict6
who is currently a sophomore at Monsters 5niversity. ?
AstudentB from Monsters 5niversity uploaded memes, animated
EI4s, and Instagram)like photos that are related to the movie.
21
• A))";s iP6on" ou need to put a lot of effort and time)consuming
research to get information how your customer behavior against
your products. 0n the other hand, online marketing is easy to
track. "mail marketing software can tally the number of people
who view your message. Moreover, it can the number of
advertisements that lead to purchases on online sales.
25
CHAPTER III
SOCIAL NET'ORKING FOR &ANKS.
Many banks have started using social websites to help
them with everything from healing the financial industry to
promoting their latest credit cards. #y embracing the most
popular tools available, the industry has also been embracing
the best of what social media culture has to offer, and smaller,
community banks seem to be leading the charge when it comes
to social media innovation.
This post profiles some 5.1. banks that have used social
media in their marketing and communications plans in some
interesting and successful ways. These banks have tapped into
the root of what social media means to the community, enCoying
success in the way of returning real value for their institutions.
26
1. Co..3nit8 &3idin#
#anks are not usually known for building warm and
fuzzy communities around their products and services. customers. Interaction with Een)> is comple, as
they are well)connected through social media and
mobile. 0ur survey revealed that banks used their social
media presence as a medium to converse, get feedback
from their customers and launch new products. They
can leverage or partner with other retail brands that
have successful presence in the Een)> segment by co)
branding or creating Coint offers. #anks can make their
products and services more attractive to Een)> through
personalization of services. "ach offering should be
attractive enough to be on the wish list of this
generation. They rely on opinions and word of mouth of
their peers and if banks fail to offer Ae,ceptional
serviceB they run the risk of losing their brand
80
reputation. 0ur survey revealed that though many banks
were providing new and innovative products and
services, they lagged in product launch times. #anks
with a Een)> focus had shorter product launch times as
compared to others. 1eamless multi)channel banking
offering a superior customer e,perience is key for
engaging Een)>. Innovative pricing strategies like
pricing based on relationship could help banks establish
incentives for Een)> customers to continue buying
more from the same brand instead of hunting for other
deals.
"ngaging with Een)> is a potential money)
spinner for the banking industry. #ut banks need a
dedicated engagement plan to connect with them.
#anks who have adopted a dedicated Een)> strategy
are engaging those using social media, customized
products and services and modernized banking
applications. These banks are proactively embarking on
strategies which will provide them an unbeatable early)
mover advantage in realizing the lifetime value of this
customer segment.
#anks have to now focus on 2$M and less on
gaining new customers through social websites. 1ocial
81
Media is definitely the future of Marketing. To market a
product through this channel banks have to first gain
the trust of their e,isting customers.
2ustomer $elationship will take the banks
forward in the online media space. ? trusted bank like
I2I2I commands more than = Million !ikes on
4acebook can easily market new products now.
Eovernment banks like 1#I and #0I refrain from
social media still. 4or them traditional methods are still
beneficial. 1#I has the ma,imum market in India and
thus it may not need social media now but no one
knows what the future holds.
&I&LIOGRAPH2
• www.indiatoday.com
• www.businesstimes.com
82
• www.economictimes.com
• www.delloitte.com
• www.infopedia.com
• www.moneycontrol.com
• www.utvmoney.com
• India Today
• "conomic Times
• Marketing /aily
ANNE?URE
Q.% /oes your bank have a separate department for
handling social networkingP
Q.+ 9as your database increased due to social networksP
Q.= 9ow much money has to be invested separately for
social networkingP
83
Q.. 9as social networks improved your brand imageP
Q.J 9ow is the money invested recoveredP
Q.G