How to target online communities?

As we live in the digital age, Amazon has a wide array of online tools to target specific online communities. An online community is a significant opportunity for Amazon to reach specific consumer segments within the community with relevant and personalised marketing and advertising campaigns. Online strategies aimed at creating a community of loyal followers will evolve over time, taking into account the various online mediums, their ability in attracting the right crowd and keeping them engaged.

Suggestions for online communities for Amazon to focus on are divided into two areas- customers and businesses. Customers: Book readers. Amazon enthusiasts and loyalists. Bargain shoppers and hunters. Self-employed or one-off sellers. Shoppers who are comfortable and willing to perform online purchases with no discrimination for item(s) bought. This encompasses a wider range of audience who may or may not have a specific preference for Amazon or loyalty towards the brand but recognise that the service they provide is beneficial to them. Businesses: Businesses of different sizes (start-ups, Small , medium companies to large multi-corporations). Industry specific companies

Not many companies are comfortable in a world where customers can speak freely to each other and influence each others purchase behaviour and intentions (Kaplan, 2011). Therefore, Amazon should aim to be at the forefront of online and social media, keep up with its trends and be aware of its limitations and risks in order to successfully target online communities. How can Amazon target the online communities above?

Amazon can use blogs to target online communities as essentially, a blog will create a community around itself of readers (ie target market). It is one of ways to creating a network and or to develop an existing network. An advantage of blogs is that Amazon can create different blogs with a focus on a specific target audience, thus creating a type of a private community with each blog. When using blogs Amazon is able to chat in real time with readers, advertise its offerings and act as an informational hub that encompasses its online communities ideas, feedback and thoughts on the company and its brand. Furthermore, blogs can have a dual purpose - not only to target online communities but also to gather market research and be used as grounds for testing new marketing ideas that Amazon will have and also assess the effectiveness of past marketing and advertising, promotions and campaigns. However, as in the case of collaborative projects, blogs do present their own risks. Dissatisfied customers with the company or its services can easily engage in virtual wars with counter-blogs or review websites. Albeit this is an example of an external attack on the company blog, internal attack from within the company can also occur. Take the case of Microsofts former technical evangelist Robert Scoble in 2006-2007. Robert was widely described as the unofficial corporate voice of the company (source bbc.co.uk, 2006) who wrote negatively about the firm, pointed out its mistakes and went a step further to praise its rivals. From this we can learn that once firms encourage its employees to be active bloggers, they may need to accept and deal with employees potentially writing negatively about them. Recommendations for online champions for Amazon The idea of an online champion is to have him/ her as the frontline of customer experience and as a link between the customer and the company. For Amazon one of the main factors in finding an online champion is to i) ensure that they are trustworthy and ii) establish their rules of engagement (ROE). The best way of working with an online champion is to set and recommend very specific rules of engagement. For example, AmazonXs online champion should report all types of comments and posts (positive and negative) to a marketing manager. Ultimately, it is the managers call to address online comments and will advice on the best call of action, especially in the case of negative information. Social media is in heart of the online marketing operations of any successful business (Kaplan, 2011). From a social perspective, it may impact how we interact, but from a business perspective, it influences how we promote and share information, evaluate products/ services and rate companies and their campaigns. Social networking sites are currently used by numerous companies to support the creation of brand communities (Muniz and OGuinn, 2001). It has been found that three global brands (Facebook, Youtube and Wikipedia) are social media related and that three quarters of internet visitors visits social network sites and blogs (Neilson, 2010). Social medias popularity is unquestionable. In 2010, Facebook had an increase of 228% in

the number of user profiles it hosts while Twitter grew by a staggering 1382% (Neilson, 2010).

It is one of the most effective tools that allow companies to target online communities. For example, Amazon can use a twitter stream alone to raise awareness of its offerings. Tweets and re-tweets give the company the chance to showcase its activity and response to its tweeters in real time. To successfully target its online communities, Amazon will need to: Decide on the content to be communicated and communication frequency Ensure that the message to be communicated is consistent thoroughout promotions Track the number of visitors who have clicked on a promotion, visited a blog, liked a fan page (Facebook) or tweeted/ re-tweeted a message (Twitter). This will enable Amazon to see what updates are working and not working.

Nonetheless, social media can be a double edged sword. It can either be a tremendous asset for the companys promotions or a potential public relations (PR) disaster waiting to happen. Almost anyone with internet access has the power to post information online. With many websites being social media friendly, there are comment boxes on pages that visitors can use and it will link up to their Twitter or Facebook pages. These comments can be negative or positive. Take the example of a company who after the unveiling of a new product/ innovation decided to promote the products success with more than just a pinch of salt (exaggeration). They possibly could have exaggerated the sales numbers, the amount of time/ money spent (research and development) that went into the product etc. Online communities can not only see this information but are also able to comment and give their own intake on what the product is really like (ie share their experiences). A company can easily appear dishonest if its communities tell a different story, a negative one at that and in large numbers! This can turn into every PR teams nightmare almost overnight. From this we can deduce that social media plays a key role in not only protecting brands but also other social media advocates. Nielsons report into social media found that 58% of social media users write product review to protect others from bad experiences; this is backed with 1 in 4 users who share their negative experiences as a way of punishing companies (Neilson Wire, 2011). To mitigate the risk of the above happening to Amazon, it is imperative for the company to always be honest with its public. Transparency is key. Information posted on social media sites only take seconds to be seen around the world. Anonymous online comments are the norm. A way to deal with these (if negative) is for Amazon to become the online authority for information for the brand and its events. The company website (www.amazon.com) should be referenced in communication that aims to address a critique or a specific comment - This issue is addressed on Amazons official website www.amazon.com- a link to the website must be provided as a re-direct for readers. Whether it is in blogs, online communities or social media, a direct link to the company website must be highlighted and clearly visible. The health of online social communities is another important aspect for Amazon to keep in mind. Despite the many undeniable benefits of social sites, maintenance of online communities can be time consuming and costly in terms of hosting and management (Tapscott and Williams, 2007). Thus, it is important that these communities continue to flourish and that their members remain active and interested in Amazon.

A strategy that Amazon should utilise when approaching its online communities is the concept of exposure. All promotions of Amazon, its services, the website etc should be highly visible to the

target communities.
To gain maximum exposure, Amazon should: Publish. List information, promotion or a message once and then publish it across the web (ie social networks, blogs, online communities, listing sites) Track and measure. Track searches and information listed on Amazon as they appear in top search engines (ie Google, Yahoo, Bing, Ask Jeeves) Target the communities. Use intelligent publishing so that Amazon and its information appear on relevant sites where the target market frequents Update and evaluate. Update information frequently so that the target market is best informed and evaluate sites popularity. Also evaluate content and message popularity.

Exposure as mentioned above not only focuses on being visible as a company but also on engaging online communities and at best having them informed and interested.

___________________ Which ones to focus on? An online community or social network represents a significant opportunity for a brand or a media company to target a specific consumer segment with personalised and relevant marketing and advertising campaigns.

In the year to February 09, Facebook experienced a 228% increase in the number of user profiles it hosts. While Twitter, the real time social media application, grew by a staggering 1382%

Q2
In an online environment, information can be easily and inexpensively measured with almost all aspects of a marketing campaign can be tested, traced and measured. Ad servers is one way of achieving this. An ad server is software that allow companies to monitor ads, assess their progress and recommend to companies the most successful ads that make the most money or generate the most clicks. It helps calculate the return on investment (ROI) of a particular website or advertisement, by counting the number of clicks or impressions for an ad campaign and from these results compiles reports. Ad servers are especially beneficial to companies that run multiple websites and or marketing campaigns. They compare these websites and campaigns

against each other so that a company can visibly see which sites/ campaigns are most successful and which ones need more investment and work put into them. Cost per impression (CPI) is another effective tool that can be used in measuring the worth and cost of online marketing campaigns and advertising. It applies to web banners, email, opt-in email advertising (ie cost per action) and text links more specifically. For example, each time an advertisement loads up on a users computer screen and if he/ she clicks on that advertisement which promotes further action on the visitors part- it is logged as a CPI. E-marketers can use this to find the cost of an online campaign by gathering the number of impressions/ clicks and the cost per 1,000 impressions (for example). It is also one way of finding out the total number of exposures an e-marketer can get for their budget.

It is in every e-marketers interest to make sure that their online campaigns are optimised for the people who really count- its readers and customers. It will help them find the exact information that they are looking for, point them in the right direction and take them to pages they may find interesting. A visitors site experience should be as straight-forward and as simple as possible with minimal waiting or search time.

A high degree of relevance can be achieved through the use of words and phrases in linking the internet users interests to the display of an advert or marketing campaign. Pre-click initiatives are key in measuring and improving online campaigns performance. An e-marketer is able to influence the click-through rates through the text used in adverts and campaigns, advert positioning, frequency of display, key/ tag-words and phrase selection and the time that an advert/ campaigns displays on a website as well as its online reach. Pre-click initiatives such as these can help improve a campaigns level of success and ROI. However, further action is entailed on the visitors part to complete the process. In pay per click (PPC) campaigns, post-click initiatives are as important as pre-click initiatives. For example, post clicking, a website must persuade the visitor to take further action (a process in motivating conversions). This has a direct effect on a PPC campaigns success and can include initiatives such as; keyword and phrase indicators, conversion beyond the entry page etc. These initiatives need to be maximised by an e-marketer so that they boost ROI and success rates. E-marketers should look to not only drive traffic to a website but also once there, to have the visitor complete an action, such as buy a product, subscribe, download information, etc. Both pre- and post-click work hand in hand. Invariably, web analytics will improve a companys online campaign marketing ROI. Primarily because it provides an opportunity to gain deeper understanding with regards to visitors and how a website performs. A website itself can offer ROI information and as a means of tracking ROI. Analytics programmes (ie Google analytics, Webtrends, Yahoo! analytics) are easy to integrate with a company website. They provide information within a specified timeframe of the number of site visitors who are considered: direct traffic, referrals from other websites and or search engines. With regards to web analytics, a website hosting company/ vendor can advise on the best analytics programme to accompany the site and help enhance its functionality. It can also be used to track advertising effectiveness of event postings to see if there is a follow through of visitors to the company website. E-marketer can use analytics to improve marketing effectiveness, concentrating on areas that need further promotions and exposing areas that need more attention. Word cloud analysis is another tool that can be utilised. Tag clouds or word cloud analysis count the occurrence of words and display the size of these words based on their frequency. This can be used on surveys and focus

group answers to analyse their transcripts. Results are usually displayed in graphs to give a visual perspective of the words that respondents and site visitors utter the most. Keyword searches are a great way of finding out what the customers' thinking process is and the purpose behind their searches. It also gives an idea of what stage of the information search they are in, whether it is the early inquisitive stage, the focused and specific search stage or the comparison and purchase stage. This can be achieved through search engine optimisation (SEO). E-marketers should look at the keywords used by visitors to find the site, along with the keywords used outside of the website in relation to the competition and the outdoor events industry. Not only does it give e-marketers an added perspective and awareness of its competition but it also provides the opportunity of 'linking' those keyword searches to the company site, thus directing more traffic. Going viral is one way that e-marketers can measure campaign effectiveness. Viral marketing is concerned with measuring the relative return on investment (ROI) a company places on its communication, advertising and marketing strategies (Kaplan, 2011). Viral marketing can be used to research and test the probability of and when campaign messages are transmitted by an individual through their social network. This works by evaluating the size of an individuals social network and their influence on that network (otherwise known as social networking potential (SNP)) which is put against a companys estimate of selling effectiveness. With this in mind, an online marketing campaign should target customers with high SNP, which in turn will enhance their viral marketing strategies. High SNP respondents will distribute campaign information and promotions etc, via their websites, blogs and various forms of social media. This will not only help drive the companys online market research strategies but will also attract other respondents with similar interests.

Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an Internet marketing campaign can be traced, measured, and tested, in many cases [citation needed] through the use of an ad server. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine [citation needed] which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually [citation require users to click on an advertisement, to visit a website, and to perform a targeted action.
needed]

The Health of Online Communities

Number of posts and members of an online community is one of the main metrics often used by community managers to measure community health as they give a good indication of community popularity. Online metrics and key performance indicators are discussed further in part 2. Going Viral Viral marketing is concerned with measuring the relative return on investment (ROI) a company places on its communication, advertising and marketing strategies (Kaplan, 2011). Viral marketing can be used to research and test the probability of and when campaign messages are transmitted by an individual through their social network. This works by evaluating the size of an individuals social network and their influence on that network (otherwise known as social networking potential (SNP)) which is put against CompanyXs estimate of selling effectiveness. With this in mind, an online marketing campaign should target customers with high SNP, which in turn will enhance their viral marketing strategies. High SNP respondents will distribute campaign information and promotions etc, via their websites, blogs and various forms of social media. This will not only help drive the companys online market research strategies but will also attract other respondents with similar interests.

Q3 image differentiation Every person has a different perception of a company or product than the next person. Nonetheless, each person responds differently to a brands image(s). A successful image establishes a companys brand, its products and value proposition. It does so by delivering a distinctive and emotionally powered image beyond a mental or physical image in a persons mind. Image is affected and influenced by many factors, some of which can be beyond a companys control. Nike is a popular example of this. Nike, albeit a mainstream shoe and sporting clothes apparel does not appeal to some target markets who may prefer alternative brands that convey more of an extreme sports image or a luxury brand or a brand that is eco-friendly etc. Image differentiation is linked to the customer experience. This can be achieved through experience branding ie, when a company differentiates itself by creating a unique customer experience. In turn, firms can greatly improve their ability to retain customers, target key customer segments and enhance network profitability (Straus et al, 2003). This defines true image differentiation. The internet interactive nature allows companies to respond more quickly to customer requests. Therefore, image differentiation has to be built upon the ability to create huge perceptual differences from other aspects of brand positioning, the competition and alternative offerings. An emarketers strategy should revolve around the companys image and how to differentiate that company from others. Amazon.com for example, has a strong brand image that helps it attract and retain existing customers as customers are drawn to brands that they trust- an attraction that is enhanced by positive company history and efficient operations. In this same way, Monster.com has successfully gained ownership of online job searches and the online recruitment industry. Online products and services are not considered tangible as they cannot be seen except by an image or description. Therefore, e-marketers must aim to make offerings seem more tangible by

showing them in a realistic and customer-friendly manner. Examples can include: 3D imagery, virtual tours, image enlargements, customer reviews and trial (periodic) downloads. Furthermore, e-marketers can use the process of positioning to create a positive company-specific image. Positioning not only helps create a desired image of the company and its products but also helps to control the brand image and create a point of differentiation for the company so that it carves out its own market niche. To achieve this, take the case of the iPhone a leader in the mobile phone market. Apple positions its product image on the iPhones product services and attributes (ie the mobile phone that is more than just a mobile phone, but a lifestyle choice). It has a high-tech image, with its mobile applications (app) world, games, interactive platforms and the latest offering Siri- an interactive virtual person that you speak to and responds back. Apple also positions itself in comparison with its competitors as being in the forefront of its industry and its confident slogan of if you dont have an iPhone...well, you dont have an iPhone. In the example above, through image differentiation Apple not only enhances its users product experiences but also serves to entice potential customers to engage and buy its products. It can be deduced that a company can differentiate itself by creating unique or superior customer service along with the brand experience.

Karl Cluck of Razorfish, recommends that online marketers must enhance the users online experience in order to entice potential customers to buy (New York E-Commerce, 2000, p.1). A company can differentiate itself by creating a unique customer experience such as superior customer service and, in turn, brand the experience. Through experience branding, firms can greatly improve their ability to retain customers, target key customers, target key customer segments and enhance network profitability (Vincent, 2000, p.25).

such as Airwalk. and respon A person responds differently to company and brand images. Identity comprises the ways that a company aims to identify or position itself or its product, whereasimage is the way the public perceives the company or its products. Image is affected by many factors beyond the companys control. For example, Nike mainstream popularity turns off 12-to-24-yearsolds, who prefers Airwalk and other alternative brands that convey more extreme sports image. Hence Image differentiation is important for a company or product. An effective image establishes the products character and value proposition, it conveys this character in a distinctive way and it delivers emotional power beyond a mental image. For image differentiation to work, it must be conveyed through every available communication vehicle and brand contact, including logos, media and special events.