Case study 3: Social media and the changing face of celebrity influencers

Questions:
Q1. Use the dimensions of the SMMF to analyse the following:
a. Kylie Jenner’s cosmetics;
(Scope): Kylie Cosmetics leverages social media as a two-way communication tool,
encouraging interaction between the brand and customers through sharing experiences
and using specific hashtags.
(Culture): We claim that Kylie Cosmetics has a clear understanding of the benefits of
social media since the company uses the unique features of each platform to provide
content that is tailored to the needs of its audience.
(Structure): even though the social media strategy is centralized control, Kylie
Cosmetics is not working alone on social media, for increasing the engagement, it also
cooperates with other online Influencers such as MakeupShayla, not to mention her
half-sisters Kardashian.
(Governance): besides promoting the product, the other function of Kylie Cosmetics is
educating. No matter if it is about makeup tutorials or positive power that Kylie has
spread from social media, all the content is about bringing confidence to the customer.
Therefore, Kylie Cosmetics has to ignore the negative information and focus on bring
the positive to the fans and benefit the community

b. Shannon Coulter’s #grabyourwallet.

(Scope):
- The scope of the #grabyourwallet campaign is broad, aiming to influence consumer
behavior on a national scale by encouraging people to boycott retailers carrying Ivanka
Trump's products. It utilizes social media platforms such as Twitter, Facebook, and
Instagram to amplify its message and reach a wide audience.
- Through the use of hashtags and viral content, the campaign extends beyond
traditional media channels and engages directly with consumers, encouraging them to
take action by boycotting specific brands.

(Culture):
- The culture surrounding the #grabyourwallet campaign is one of social activism and
consumer empowerment. It leverages the participatory nature of social media to
mobilize individuals around a shared cause.
- By embracing the culture of social media platforms and empowering consumers to
take action, the campaign creates a sense of community and solidarity among its
supporters, fostering a collective movement against perceived injustices.
Structure:
 - The structure of the #grabyourwallet campaign appears decentralized, with
individuals and grassroots organizations playing a significant role in amplifying the
message and organizing boycott efforts.
- While Shannon Coulter may have initiated the campaign, its success relies on the
collective efforts of supporters who share and engage with the campaign's content on
various social media platforms.

(Governance):
- Governance within the #grabyourwallet campaign is likely decentralized, allowing for
a high degree of freedom and autonomy among participants. While there may be
guidelines for maintaining message consistency and adhering to the campaign's goals,
overall governance is focused on facilitating collective action rather than enforcing strict
control.
- Participants are encouraged to express themselves authentically and share their
personal experiences and perspectives related to the campaign, fostering a diverse and
inclusive movement.

Q2. Suggest how the SMMF helps to:

a. Interpret what is happening in the financial services industry in relation to its use of
social media:
● Scope: Financial institutions are expanding their use of social media from a one-
way communication channel to a more interactive platform. This shift aims to
meet customer demands for real-time responses and engagement. By leveraging
social media for customer interaction, marketing, product delivery, and business
model exploration, banks and building societies are transitioning towards a more
reciprocal interaction model.
● Culture: The financial services industry, traditionally risk-averse, is adopting a
more modernist approach by embracing the inherent openness and flexibility of
social media. This cultural shift is essential for engaging with a customer base
that values quick, accessible, and transparent communication.
● Structure: The evidence suggests a move towards decentralized social media
usage. Financial institutions are incorporating FinTech solutions and social media
platforms into their operations, enabling a more agile and responsive
engagement strategy. This structure allows for faster service delivery and the
capacity to address customer needs more effectively.
● Governance: With the adoption of social media, financial services are faced with
the challenge of managing customer mindshare amidst the dominance of
FAMGA companies. The governance dimension underscores the importance of
establishing clear rules and guidelines for social media engagement to protect
brand integrity and ensure compliance with regulatory standards.
b. Provide strategic solutions for the use of social media that might help to protect banks
and building societies from the FAMGA companies.

● Scope: To counteract the influence of FAMGA companies, financial institutions

should leverage social media for creating value-added services and personalized
customer experiences. Engaging customers with useful content, financial advice,
and interactive tools can enhance loyalty and retention.
● Culture: Banks and building societies need to foster a culture of innovation and
flexibility in their social media strategies. This involves being proactive in
adopting new technologies and platforms, ensuring they remain relevant in a
rapidly changing digital landscape.
● Structure: A more decentralized approach to social media management can
empower employees at all levels to engage with customers, share insights, and
address concerns. This requires clear protocols and training to ensure
consistency and compliance with industry regulations.
● Governance: Financial institutions should develop comprehensive social media
policies that balance openness with security and privacy considerations. These
policies should address content guidelines, customer interaction protocols, and
crisis management strategies to mitigate risks associated with online
engagement.

Q3. Discuss the extent to which it is possible to strategically manage social

media, using case evidence 1 to 4 in the case study.

Over the past few decades, technological innovation has surged, creating abundant
opportunities for online marketing. The widespread adoption of social media has
empowered customers, enabling them to engage more deeply with brands and offering
new tools for evaluating, selecting, and purchasing products and services.
Consequently, these advancements are reshaping marketing practices, both
strategically and tactically. In today's landscape, social media has become a critical
component of marketing strategy due to its capacity to co-create value, facilitate
interactive connections between brands and consumers, monitor brand-related
conversations and sentiments, influence consumer decision-making, stimulate peer-to-
peer interactions, and foster brand advocacy. This paper aims to explore the strategic
advantages of social media marketing for organizations. By providing a thorough
conceptualization and definition of social media marketing, this research elucidates its
role in advertising, customer relationship management, and electronic word-of-mouth.