Matt+Chiaramonte

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Strategy report
TO: Proximity Social Networking Team FROM: Matt Chiaramonte DATE: September 28, 2009 SUBJECT: LinkedIn Strategy Report

LinkedIn is a major player in the social networking market. LinkedIn competes with larger competitors in this market by differentiating itself and offers a professional networking site that attracts users by connecting them with successful businesses. LinkedIn needs to prove to Gen Y users that they offer a service that the other social networking sites cannot.


 * Profile**

LinkedIn was founded in 2003 by Reid Hoffman, Allen Blue, Jean-Luc Vaillant, Eric Ly, and Konstantin Guericke. Presently Reid Hoffman is the Executive Chairman and Jeff Weiner is the CEO. LinkedIn operated out of Mountain View, California. (LinkedIn 2009)

LinkedIn gives businesses access to its user’s profiles. LinkedIn’s users then connect with others and create a social network which businesses pay to access.. LinkedIn is the most popular social networking site among professionals. There are 47 million members. (LinkedIn 2009) Half of the users are outside of the United States. LinkedIn adds 1.5 to 2 million new users monthly. (Lawsky 2009)

LinkedIn is backed by many investors including Sequoia Capital, Greylock Partners, Goldman Sachs, SAP Ventures, as well as many personal investors. (LinkedIn 2009) LinkedIn turned profitable in 2008. It was valued by its investors last year at $1 billion and had annual revenue of $100 million. (Lawsky 2009) This money is all brought in through business paying for access to users profiles.


 * Competitive Landscape**

The competitive landscape in social networking is dominated by the two biggest players Facebook and MySpace. These two battle for the majority share of the time spent online by social networkers. LinkedIn had established a market niche by offering a professional service that the larger competitors cannot offer. LinkedIn’s business strategy is to position themselves as a more professional networking site than the Facebook’s and the MySpace’s of the web.


 * LinkedIn’s Strategy**

LinkedIn’s strategy is to differentiate itself from other social networking sites. LinkedIn continues to charge business at rates ranging from $250 to $5000 a year. LinkedIn has already seen itself become profitable whereas Facebook has not, even though Facebook is the market leader in users with over 250 million to LinkedIn’s 47 million.. LinkedIn believes that this business model sets them apart with their users who differentiate LinkedIn from the other networking sites as a more professional operation. (Dowell 2007) This professionalism will then bring in the successful businesses that are ones making LinkedIn profitable


 * Gen Y Implications**

LinkedIn needs to prove to Gen Y users that it offers a professional networking opportunity that Facebook does not. There is an age gap already forming between LinkedIn and Facebook. The average age of LinkedIn users is 41 whereas the average age of Facebook users is 31. If Gen Y users don’t see the professional value of LinkedIn and go to Facebook then the companies that pay to use LinkedIn will leave and LinkedIn will fail as a business. Their future success rides on making Gen Y users aware of the professional advantage that LinkedIn offers.


 * References**

LinkedIn. About Us. Retrieved September 22, 2009 from [] = Lawsky, David. Silicon Valley's six hottest startups. (2009, August 19). Reuters.com. Retrieved September 22, 2009 from [= 2&virtualBrandChannel=0] = Sobmora, Jessica. (2009, September 10) Watch Out, LinkedIn: Facebook is Gaining on You. Retrieved September 22, 2009, from [] = Dowell, Jason. LinkedIn Profitable - Is Social Networking A Business Model? (2007, April 6). Retrieved September 22, 2009 from [] = = =

Blog proposal
TO: Proximity social networking team FROM: Matt Chiaramonte SUBJECT: Blog Post Proposal DATE: Oct 26

I propose that we do our blog post on the use of social networking for job searching. The post can be used to show Gen Y users the advantages they may have in using social networking sites to find a job.


 * Rational**

Social networking sites are becoming more acceptable as a method of finding a job. There are social networking sites that are strictly dedicated to the job market and then there are more traditional social networking sites that are now being used for the same purpose. Gen Y already users social networking sites more than anyone else. This blog can give them an advantage over other perspective employees if they understand the most successful ways for them to use social networking to their advantage.


 * Sources**

I recommend that we organize the post around a blog that includes embedded video and slideshow about the use of social networking as a job searching tool:

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Report proposal
TO: Proximity Media Teams FROM: Matt Chiaramonte DATE: November 25, 2009 SUBJECT: Final Report Proposal

Companies have realized for some time now that they will need a marketing presence on social networking sites, especially to reach Gen y users. The question has been what sites to reach them on and how. I propose to write a report on the growing use of twitter for Gen Y users and how and why marketers should be reaching them through twitter.


 * Need**

Companies that are looking to reach Gen Y users should be looking to twitter in the future to reach individual users. Gen Y users who have not quickly joined twitter are showing a move to the site as it is no longer perceived as a site for older people. Amongst these users are a high number of female and minority users, the former who have shown a particular responsiveness to social networking advertising. These demographics on twitter offer advertisers specific target audiences that they can build up as followers. In addition the number of Gen Y users overall makes up the highest percentage of twitter users and that continues to grow. Companies that were quick to write off Gen Y on twitter will be left in the wake of those who target them. Twitter offers these young tech savvy users with a more interactive advertising medium that gives the follower more control over viewed content. This is perfect for Gen Y users who have shown less responsiveness to traditional forms of advertising. These users are spending more time on the computer than the television and with the advent of twitter applications for smart phones they will be available at all times and places.


 * Topics**

The proposes report, “Twitter, Gen Y is Coming, How Will You Reach Them?” will cover the following topics: · Twitter user demographics and how they are expected to change in the future · The benefits of a twitter marketing strategy, specifically versus other social networking sites · Gen Y’s responsiveness to social media advertising · The importance of reaching female Gen y users · The role that twitter and marketing on twitter will play in the future for both the user and the marketer Additional topics may be added to the report and more information is acquired.
 * Sources**

The following items are the key sources for the proposed report. These are a great base but more information may be added.

O’Brien, Monica. Gen Y Marketing Trends Point to Twitter (November, 5, 2009). //Social// //Pollination.// Retrieved November 25, 2009 from [|http://blog.monicaobrien.com/gen-y- marketing-trends/]

Monica O’Brien examines the great benefits that companies will have in reaching Gen Y users through twitter rather than any other social networking sites. She explains the demographics of twitter users and shows that they are flocking towards twitter more than any other site right now. She explains that this is good for companies who have not had success on facebook reaching Gen Y, as the users of twitter are far easier to connect with for companies. Twitter users operate in a more open network than they do on facebook and are easier to reach as potential consumers.

Pena-Bickley, Joanna. ON: Marketing to Gen Y Woman (November 3, 2009). //N//. Retrieved November 25, 2009 from []

Joanna Pena-Bickley goes in depth into how to reach female Gen Y users and explains that twitter is an effective way to do so. It offers a dialogue with the user that allows them to be an active participant in the marketing process. Gen Y females understand the use of twitter as a promotional platform and are responsive to brands on twitter that offer exclusive information or deals that are not found anywhere else. The more personal aspect of twitter sets it apart from other social networking sites in the minds on Gen Y women.

Kelly, Margaret. Generation Y: Their Momentum is Building (November 13, 2009). //RIS// //Media.// Retrieved November 25, 2009 from []

This article by Margaret Kelly looks more into the reason why Gen Y needs to be marketed to. It only briefly mentions that twitter will be on of the best ways to reach them on the future, but the information that is presented about Gen Y is powerful information for potential marketers. The article points out the financial situation of the Gen Y users and their adeptness at social media communication. It showcases them as the future of the marketplace and a demographic that must be reached through new ways.

Krayewski, Kaila. New Studies Show Gen Y’s Favoured Online Habits (November 6, 2009). //ISEdb.com//. Retrieved November 25, 2009 from []

Kaila Krayewski posted this blog as a response to those critics who keep claiming that Gen Y is not making the move to twitter. She points out a new study that shows that the greatest numbers of users on twitter are Gen Y users. Twitter is just a younger media than others and will be growing more every year. About one third of all twitter users are Gen Y. The study also revealed information that would interest marketers. Gender and race both seem to be factors amongst twitter users as a large percent are women and African-Americans. This new study goes against the idea that Gen Y is avoiding twitter. They are not avoiding it; it is just a newer social media site and is in the early growing stages.

Kahlow, Aaron. To Tweet or Not to Tweet, That is the Question (April 2, 2009) //ClickZ.com.// Retrieved November 25, 2009 from []

Aaron Kahlow examines the important question that many marketers have has to ask themselves as twitter gains more popularity. Is using twitter worthwhile? He answers that this is a question that is answered based on you audience and your goals. In his conclusion he finds that when trying to reach a Gen Y audience it is very important. Being able to connect Gen Y users from the company’s site one time, to following them on twitter builds a new sense on brand loyalty. Gen Y users are more apt to be reached through these means especially as the number or twitter users grows.

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
December 9, 2009

Mr. Chad Dammers, Director of Marketing Massage Envy Corporation 591 Baltimore Pike, Bel Air, MD 21914

Dear Chad:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Massage Envy’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the ways in which Gen Y social net workers are using Twitter. The prospectus also reports on the responsiveness of these users towards marketing efforts on Twitter, specifically Gen Y female users.

As you noted yesterday, Massage Envy feels that it must establish brand identity with Gen Y now in order to sell its services to that cohort when they start families and buy homes. I believe Proximity can work with you to devise a comprehensive campaign that Twitter to achieve that goal.

We can provide you with customized survey and focus group results to help shape Massage Envy’s image as a progressive, green company. Our faculty consultants can advise your sales force on how to position new services, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Massage Envy on social networks beyond Twitter. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Massage Envy’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Matt Chiaramonte Associate Media Analyst

enclosure