Advantages and Disadvantages

of New Media ChannelsOskari Keranen, Euan Rankin & Edward Wiese

Overview

Mintel (2012b)

Internet Usage

Social Media Demographics

Mintel (2012)

Advantages

•Demographics: Age, Generation, Relationship Status

•Geographical: Location

•Psychographic: Interests, Opinions, Attitudes

•Behavioural: Brand loyalty, Product benefits

Target the customers with ads that they are likely to respond to

Tailor the advertising to the needs of the group

Euan Likes ...

Need Recognition

Information Search

Evaluation of Choices

Purchase

Post Purchase Evaluation

Edelman (2010)

Advantages - WOM

• 58% of consumers ascribe high credibility to the information they hear from others during a WOM conversation; 50% say they are very likely to buy as a result of that conversation (Keller & Fay, 2012)

• WOM had greater reported impact on brand choice than advertising or personal selling (East et al. 2005)

• WOM two times more effective than radio advertisements, four times more than personal selling, seven times more than print advertisements (Katz & Lazarsfeld, 1955)

Disadvantages - WOM

10% Online75% Face to face

15% Telephone

(Keller & Fay, 2012)

Viral power

Consumers rule

And

Disadvantages

Time consuming

Right balance of personal and professional social media

Who is the right person for the job?

Disadvantages

I want FAST

Measures are in place, but they are changing constantly

Detrimental outcomes on physical and mental wellbeing of the employees (Prasad, 2012)

Conclusion• Target groups need to be identified

• Marketers should acknowledge outliers

• Integrating the traditional & mature media channels with New

• Measuring Time & Money

• eWOM & Personalised Marketing with emergence of Mobile