SOCIAL MEDIA IN MARKETING COMMUNICATION

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  • 7/25/2019 SOCIAL MEDIA IN MARKETING COMMUNICATION

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    BUSINESS COMMUNICATION ASSIGNMENT

    LITERATURE REVIEW

    SOCIAL MEDIA IN MARKETING COMMUNICATION

    Laili Abdullah,

    Section C,

    Roll Number 326

    ABSTRACT

    Web 2.0 represents an ensemble of technological platforms, which allow the interaction ofthe users by creating and sharing information and other dierent online materials. Web 2.0represents a new version of the World Wide Web in the Internet network, characterized bynovelty, interactivity, and possibility to continuously adapt. he social media is distinct fromthe physical media, with integrated marketing eorts social media can create value for abusiness. his value is in the form of knowledge transfer and information capital thatact as tools for planning !arketing communications. he success of "ocial media marketinghowever depends on the perception of the users. #ser acceptability of mobile devices canthus be capitalized by marketers creating new functions for social media through mobilesocial marketing.

    his review seeks to e$plore the relevance of social media in marketing communication,identify its peculiarity from traditional marketing and study the value addition that onlinepresence creates for a company. %urther, the application of mobile social media and itsprospects for marketing is also studied. he role of social media for "mall and !edium"ized &nterprises as a new marketing strategy tool is analyzed through a case.

    1. Introduction

    &very modern organization seeks to communicate successfully to reach their targetaudience. 'ommunication is the means to connect with customers and build strongcustomer relations. In order to distinguish themselves, companies continuously widencommunication channels and new possibilities to communicate with target groups isidenti(ed. )auer *200+ states that all marketing communication means will work to its

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    ma$imum capacity only if they will be part of integrated marketing communications plan,i.e. in case selected communication means will be concerted and uni(ed and constantinformation about an organization and its products and services is disseminated. -notheraspect of successful communication is the twoway dialogue that involves engaging thecustomer through comments and feedback. "ocial !edia provides /ust that platform thatintegrated marketing communications needs.

    Web 2.0 represents an ensemble of technological platforms, which allow the interaction ofthe users by creating and sharing information and other dierent online materials. Web 2.0represents a new version of the World Wide Web in the Internet network, characterized bynovelty, interactivity, and possibility to continuously adapt. he "ocial !edia phenomenonhas been made possible only because of the Web 2.0. he #ser enerated 'ontent refers tothe information the users upload on dierent sites 1 the e$amples are personal videos onou ube channels, photos on sites such as %acebook, %lickr or Instagram, personal viewssummarized in short te$ts and posted on witter or published on individual or group blog ormicroblog pages such as the touristic impressions people post on sites such astripadvisor.com.

    "ocial media has become a means to overcome cultural barriers and to connect peoplearound the world over a 3network4 according to 5laus 6icholas "chmidt and 5amakshi ".Iyer. hey state that the bond of trust is crucial in the success and impact of social media onpeople.

    !ircea eorgescu and 7aniela 8opescul estimate that the "ocial !edia revolution is not only3on the way4 to the business environment, but it is also seen in the organizations worldwidedue to the incredible speed it enters all the (elds of social and economical life. he use ofsocial media to promote a business has developed from being a rarity to now being a normfor businesses that want to reach a large number of audiences in a short period of time. herole of social media can arguably be more of creating awareness about a product or service

    or business model than about selling the same.

    2. Pcu!i"riti# O$ Soci"! Mdi"

    Increase in informational literacy and development of Internet technology along withaccessibility to Internet and social media have been detrimental in shaping contemporarycommunication. "ocial media has brought to focus virtual communication and enabledintegrated marketing communication to be handled online.

    he essential dierences distinguishing social media from the traditional media arecharacterized by the higher involvement of the consumer9 stimulating consumer activity,openness to participation, involvement *voting, commenting and sharing information, twosided communication between information sender and recipient, the possibility of :uickformation of various communities with distinctive interests.

    Indr ;ucaityt and ;rat !a

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    communication forms and messages it applies has to be concerted interdependently, i.e.business organizations have to apply integrated marketing communications in theiractivities.

    he authors, Indr ;ucaityt and ;rat !a

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    *. Prc)tion O$ Soci"! Mdi"

    "ocial media can be a value addition to a brand, however the success of social mediadepends on the impact it creates on the consumers. !uch like the physical world, brandloyalty in the online world also re:uires a relationship of trust. &lectronic commerce researchhas found trust to be strongly related to information disclosure *!etzger, 200?. rust is alsoa central component of social e$change theory *Aolo, BCDB. "ocial e$change theorypresents a cost bene(t analysis with respect to social interaction. If the e$change isperceived to be bene(cial, then the individual is likely to enter into an e$changerelationship. rust is believed to be used in the calculation of perceived cost. =igh trustwould lead to a perception of low cost, and vice versa. "tudies of interpersonal e$changesituations con(rm that trust is a precondition for selfdisclosure, because it reducesperceived risks involved in revealing private information *!etzger, 200?.

    In a study conducted by 5laus 6icholas "chmidt and 5amakshi ". Iyer to assess the socialmedia participantsE perception of authenticity and trustworthiness of online advertising atotal population of ?00 students from a %rench and -merican university were chosen and

    given a :uestionnaire. he :uestionnaire contained a total of 2B items with a focus on theperceptions of reliability, credibility, and accuracy of both brand communities andadvertising on social media. he :uestions focused on trust in %acebook brand communitiesand their perception toward online advertising.

    heir study showed that out of two items only two had showed signi(cance based onnationality. he believe that Internet and social media have proven to make the world amore even playing ground for all participants and removed earlier barriers is well known.he (ndings of this study, makes this belief more factual. he (rst (nding that there issigni(cant dierences between nationality and perception of trust implies that it hasbecome important for companies to have an online presence and to collect online data ofcustomers.

    he second :uestion, was regarding the dierences in perception of trust of brandcommunities versus advertising eorts on social media. Ff the B0 pairs, a total of D showedstatistically signi(cant dierences, indicating that the trust, validity, and credibility put intosocial media brand communities rated higher than the advertisement eorts of companieson social media. he implication of the second result is that companies, which are close tocustomers and are able to interpret their customerEs needs, are more successful than thosemerely placing advertisements online. Gy engaging customers in brand communities, asense of belongingness is created, giving the company a greater credibility. 8ublic relationsare an area of marketing which is highly dependent on consumer perception. Fnline publicrelations must re>ect the needs and wants of the customers and only then will the use of

    social media be relevant.

    In order to measure the success of using social media, it is important to keep in mind thatmere likes and retweets is not an indicator of success. - company must go beyond metricssuch as number of viewers, hit rates, click throughs etc. -ccording to 7ilhan Hztamura andbrahim "arper 5arakadJlarb there are 2 kinds of metrics that worth e$aminingK3engagement metrics4 *followers, fans, comments and 3sentiment metrics4 *positive andnegative comments of the customers. It is these results that will help in crisis

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    management, and also re>ect the brand sentiments among customers.

    +. Mo,i! Soci"! Mdi"

    !ayank adav, atish ;oshi and Lillur Aahman in their paper 3!obile social media9 he newhybrid element of digital marketing communication mark that smartphones and other

    mobile devices have given birth to new functions to the social media platforms. With realtime accessibility to consumers on the move, it has become easier than ever to reach targetaudiences in an eMcient manner. Geginning with the humble 8ersonal digital assistants tothe present smarterthanever mobile phones, mobile technology has revolutionized the waypeople and businesses communicate. -ccording to -ndreas !. 5aplan *20B2, p. BN03!obile marketing as any marketing activity conducted through a ubi:uitous network towhich consumers are constantly connected using a personal mobile device4. he classice$ample of a mobile device referred to in this de(nition is the mobile phone.

    he ma/or contribution of mobile social media to marketing is the information it providesabout consumers, oOine consumer habits can be inferred from their online actions. %irms

    have access to check in details of consumers, their online reviews and feedback on productsthey used. his data can be compiled eMciently with the help of data mining software givingthe company the power to manage its business better. #ser generated content is the mostpowerful source of information related to customers which can be generated from socialmedia. It is possible to learn about customerEs interests, tastes and preferences from thedata they provide online.

    he data generated is useful to improve the :uality of marketing communication. -s!ayank adav et al give an e$ample to G2' social media mobile communication is thepromotion of an album titled !essy )ittle drops in 20B0 by 'heryl -nn 'ole with the help of%acebook 8laces *=osea, 20BB. When people used to pass from BB? poster locations in'oleEs hometown and )ondon, they were asked to checkin at billboard. When customer

    checkedin at that billboard location, they were directed to 'herylEs page on %acebook andwere oered two free tickets for her P%actor shows. -part from this the checkedin locationwas shared on artistEs timeline as well as on the userEs timeline, which could be seen by thefriends of the user. his techni:ue is a de(nitive case of viral marketing promotions.

    !ayank et al see the role of mobile devices in sales promotion as revolutionary. he mobileera has brought ability of customizing promotions for speci(c customers at speci(c timeperiods. iving the e$ample of Qirgin -merica, they e$plain how mobile media applicationshave changed the idea of promotions. When it launched its 'alifornia'ancun service itstarted a promotional campaign using mobile social media that consumers checkinginthrough )oopt from one out of three selected Gorder rill aco rucks in "an %rancisco and

    )os -ngeles from BB-! to 8!, -ugust NB, 20B0, had the opportunity to have two tacos at aprice of RB and could also get S0T discount on !e$ico >ights. !ore BN00 people checked in/ust a window of ?hours, D0T out of these purchases tickets from Qirgin -merica *Flson,20BB, Uuinton, 20B0. In a similar fashion a VGarista GadgeE was oered to consumers if (vedierent locations of "tarbucks were checkedin by them.

    !obile social media has played a crucial role in integrating the virtual and real loves ofindividuals, creating an innovative way of communication which is bing well e$ploited by

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    businesses. !ost Gusinesses today have presence on %acebook, witter and other socialmedia along with their own websites. While company websites may not see a great footfall,but social media pages have a higher turnover with the ability to engage consumers indiscussions and oers over the social media websites. "ocial networking sites emerge asthe most powerful media for advertising across the globe. 'ompanies are shifting a largerpie of their advertising budgets towards social networking sites to better reach customers*"a$ena 5hanna 20BN.

    -. A C"# O$ S("!! And Mdiu( Entr)ri##

    7ilhan Hztamura and brahim "arper 5arakadJlarb in their paper &$ploring the role of socialmedia for "!&s9 as a new marketing strategy tool for the (rm performance perspectiveanalyzed the "ocial !edia presence of two medium sized fashion retail industry one in #"-

    and one in urkey.

    he %ashion company from #"- had interesting content on their %acebook page for theirtarget customers. hey posted often, about surveys, contests and :uestions in order toattract their customers attention. hey gave tips about fashion in general, and promotedtheir own products alongside. heir wording in posts, unlike other pages, was not formal andhad storytelling style, which was perceived as sincere by customers in their feedback. heyshared their daily activities and about their designer crew as well to create a bond withcustomers. hey were also very interactive in their posts, and replied to all :ueries andposts of customers.

    Fn the other hand the urkish company often shared photos of their collections on their

    business page, they also posted about discounts they oered. hey too maintain two waycommunication, whenever a customer asks a :uestion about a size or color of an out(tKthey always reply and suggest a solution or if a customer complains about the :uality of anout(tK they immediately report the problem and proceed to solve it. =owever unlike their #"counterparts, they use the formal wordings in their socialmedia communication and thereplies are also in a formal tone.

    When the authors compared the two companiesE social media pro(les, they have similarstrategies in terms of the richness of the content. Goth pages shared pictures, surveys andcontests and so were fashion tips. =owever, there was a dierence in the tone ofcommunication of the two companies. While the -merican company was sincere and uni:uein its communications, the urkish company was found to be rather formal and distantaccording to the authors. In conclusion both the companies used "ocial !edia as a tool topromote their businesses.

    -ccording to their (ndings they concluded that the -merican companies are more prone toapply the re:uired strategies and the factors as compared to social media use by urkishcompanies. 7...

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