Community marketing is a strategy to engage an audience in an active, non-intrusive prospect and customer conversation.
Definition
Whereas marketing communication strategies such as advertising, promotion, PR, and sales all focus on attaining customers, community marketing focuses on the perceived needs of existing customers. This accomplishes four things for a business:
Connects existing customers with prospects
Connects prospects with each other
Connects a company with customers/prospects to solidify loyalty
Connects customers with customers to improve product adoption, satisfaction, etc.
There are two types:
Organic or natural marketing occurs without the assistance of the company. Organic marketing is word-of-mouth marketing and is one of the most effective marketing methods Sponsored community marketing is promoted by company through activities like investments in the local community improvement initiatives or corporate social responsibility.
Skepticism among consumers as a result of blatant advertising and other unethical communications has affected the success of the sponsored form of community marketing. Continuing success in community marketing strategies has been found in engaging and cultivating the natural communities that form around their product/service.
Benefits
Bi-directional communication with customers - Resulting in increased feedback, identification of customer needs, and a customer-focused product development Reduced Communication Barriers - Easily introduce messaging to customer audience regarding new products, Public relations strategies, or Damage control (news) Identify, engage, and leverage Advocates - Allow enthused and loyal customers to benefit your overall marketing through Word of mouth and Knowledge Management that reduces the load on your internal support mechanisms (particularly for tech products). Gaining Trusted Advisor Status - Reduced skepticism towards your marketing message as a result of a demonstrated openness, transparency, and commitment to customer focus through Community Marketing involvement. Results in an "ownership" of the discussion surrounding a product/service that reduces negativity and positions the providing company as a resource, rather than simply a vendor.
Tools used
Online Social Networking - The chief medium for Community Marketing revolves around Web 2.0 interactivity such as Internet forums, Wiki's, Social networks, Blogs, and related syndication (RSS). Community-Specific Tools & Features - To encourage community participation, many companies offer tools and features exclusively to "members" of the community. These include Webcasts, Podcasts, and email bulletins. The key factor, however, in using these tools is the value of the message. Communities revolve around user-valuable messages (information, support, tips & tricks, etc.) and NOT promotional messages. Community Infrastructure and Governance - Some communities engage the participation of their customers in the role of elected officials, advisory board members, and volunteer "guru" status in order to exemplify key customers in their communities. Partnerships - Although this is often a purely Public relations strategy, some people view partnerships with non-profit consumer advocacy organizations to be a Community Marketing effort.
The power of community in marketing
Community costs less
Some of the world's strongest brands were originally built through low-cost community-based marketing. Nike Inc., Starbucks and Google are some examples. When companies focus on meeting customer needs, they don't have to spend big money to attract new customers. And when they stay close to their communities they don't need market research to tell them what people want. Kiehl's, a renowned global body-care brand now owned by L'Oreal, for example has people from around the world make pilgrimages to the original New York City store. Kiehl's packaging is plain, its stores are basic and from its 1851 founding until today, the brand has never advertised. Success has been driven by products tailored to customers' needs, word-of-mouth promotion, free in-store product trials and the personal connections forged by requiring active community involvement of every employee.