Digital Marketing

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SOCIAL MEDIA CREATES VALUABLE ASSET TO STARBUCKS & HARLEY-DAVISON BRANDS (DIGITAL MARKETING RESEARCH PAPER)

PRINCIPLES OF INTERNET MARKETING
(IMC489)
March 19, 2012

Social Media Creates Valuable Asset to Starbucks and Harley-Davison Brands According to a quote by Sarah Morning, OgilvyAction’s planner, “With the creation of Web 2.0, we are seeing the emergence of a new type of digital consumer, who is no longer simply a passive ‘site-seer’ on a fixed consumer journey but an independent explorer craving freedom, adventure and companionship. The challenge for businesses and advertisers is to engage with the active digitraveller as well as the passive digitourist.” (as cited in Quotebank: Digital). This quote refers to the power of Web 2.0, using digital sources for marketing, to connect brands to consumers through electronic signals like internet and mobile phones. As a result, consumers are no longer regarded only as passive receivers of brand production or brand messaging but they also are now playing important roles as active providers to tell businesses what can best satisfy their needs. Social media networks, like Facebook (friend connections), Twitter (micro-blogs), YouTube (video and pictures), are the key to the success of digital marketing platforms, which allow businesses to conduct communication with consumers faster and easier. In addition, social media is a very powerful channel that can create a valuable asset for brands in terms of building new customers and keeping long-term relationship with existing customers. Since these two groups of customers are now seeking to buy products and services from companies which can listen to them and provide what they want; therefore, social media gives businesses a great opportunity to have a deep social media engagement and can connect their brands with potential customers (p. 9). Social media marketing can add value and build success for many high profile brands, such as: Dell, Nike, Starbucks, Zappos, and Harley-Davision (“Brand management, Social Media,” 2011). However, this research paper considers how Starbuck and Harley-Davision can obtain success on digital social media marketing. So, what are the things that Starbucks and Harley-Davision are so good at? Also, this research paper considers whether they have any similarities or differences in terms of how Starbucks and Harley-Davidson use social media in their businesses?

What are the things that Starbucks is good at?
Social media has been among the most successful aspects of Starbucks’ marketing. However, its success does not come from a big marketing or advertising budget, but from a unique practice of customer engagement through social media. Therefore, Starbucks has had a high score in terms of making an engagement with consumers among the global 100 brand (Engagementdb, 2009). Because of the recession in early 2008, it’s time for Starbucks to challenge itself with a new marketing tactic. Consequently, Starbucks has begun engaging consumers with social media marketing tactics (York, 2010). Moreover, social media can build value for Starbucks because the Starbucks CEO Howard Schultz can see the importance of social media as a key to changing the business environment (Sherman, 2011). Since the recession has changed consumers on every level in terms of behaviors, feelings, and thoughts, it has become necessary for them to make a powerful connection to brands before they make decision to buy products or services, and social media networks have increasingly penetrated consumers’ lives. Therefore, Starbucks first started into this social media platform by launching “My Starbucks Idea” through MyStarbucksidea.com, which allows online consumers to give suggestions of ideas for new products in order to help Starbucks build a better experience for its consumers. This can create conversations among online consumers through new ideas which are shared, and others can...
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