Investigation of How Luxury Car Brands Use Social Media to Communicate With Their Customers - Essay Example

An investigation of how luxury car brands use social media to communicate with their s (Institution) (Date) CHAPTER 1: INTRODUCTION 1.1 Background of the study Mercedes Benz in an international automobile manufacturer and brand based in Stuttgart, Germany whose brands include luxury cars, trucks and buses. In the recent past, the Mercedes brand has penetrated different markets particularly America and Africa due to the use of major advertising strategies. Mercedes has widely used electronic media such as television, radio and social media to create awareness of their product as well as influence the buying decisions of customers (Ferrel and Hartline, 2010). However, penetration in Middle East and Asian countries has not been as good as in other continents. The presence of other car manufacturers such as Toyota and Tata Motors has made the Asian vehicle market difficult to reach (Lewis, 2011). However, the use of social media in creating product awareness gives Mercedes Benz more opportunities to get in Asian countries, especially in China (Huang, 2014). The importance of global social media channels such as Facebook, Twitter, and YouTube among other national or regional social networks has attracted more attention from product promoters and marketers (Harris, 2014). For a long time, Mercedes Benz has relied on social media channels to reach areas with high presence of technology. Mercedes has significantly used the Chinese leading social media networks; Qzone, Tencent Weibo and Sina Weibo in efforts to reach its target market. This means that the interaction and discussion of its brand and products is very high in social networks (Lewis, 2012). The use of social media channels in product awareness and interaction with both customers has increased in the last two years. Company marketers and public relation officers have set out to understand the real benefits from the use of social media by organization in communicating with their customers. While social media channels may not be as effective as television, newspapers or print media, Sandoval (2014, p. 46) notes that the personal relationship created by these channels improves the confidence of the customers. Mercedes Benz and other firms using social media have widely used the channels to connect with their customers concerning the quality of products and solution to any problems raised by customers (Barker et al, 2012). According to Lewis (2012), most potential customers spend more time online seeking clarification and information on products or services they are interested in. Customers use this important brand information in making their buying decisions (Lardi and Fuchs, 2013). Therefore, the type of information that companies use on social media determines the decision that customers make in making purchases or continuing to use already procured product or service. Due to this, many companies are shifting their communication and public relation strengths to the use of social media. Apart from increasing sales, Smith and Taylor (2004, p 18) point out that social media channels helps in retaining existing customers through the personal relationship created in social media communications. This paper takes a case study of Mercedes Benz’s use of social media channels in communicating and interacting with its potential and existing customers in China. China is one of the leading economies in the motor, phone, computer and related technologies. This means that a lot of people in China own communication gadgets that access the internet. Over one third of the Chinese population is signed to at least one social media channel. This is a huge number considering that China is the most populous nation in the world. With the increasing use of social media networks by the Chinese, companies that rely on these channels to communicate with their existing and potential customers are expected to record improved interaction with customers. 1.2 Statement of research problem The use of social media in communicating with customers is a new but growing area of research interest. Many studies have been done on the use of social media in improving the relationship between seller and buyers. However, few studies have been done to establish the real benefits that the consumers get from the use of social media besides the access to product information and solution of customer problems. Further, research on use of social media in communicating with consumers has been done more in the western part of the world. Africa, Middle East as well as Asian regions are least covered in general studies focusing on the use of social media channels in interactions between consumers and producers. Additionally, little research has been done on the incorporation of the use of social media in the vehicle-manufacturing business. This investigative case study on the use of social media by Mercedes Benz to communicate with its Chinese customers will establish essential methods on how to use social media to create relationship and loyalty among customers. Since China has huge power in automobile, telephony, computer and internet technologies, creating impact through social media for a German-made automobile may be difficult. However, this study will provide adequate information on how social media can be used to create impact in any business environment despite the levels of similar business advancements. This study will provide findings comparable to similar studies done for Europe and American markets. 1.3 Aim of the research This research project aims to find out how luxury car brands use social media to successfully communicate with their customers by using the social media in providing new product information, solving any customer issues as well as introducing new products or services. 1.4 Research objectives The specific objectives for this research project include: 1) To establish the social media channels that have been successfully used in communicating with customers in China 2) To establish the benefits of using the major social media networks in communication between Mercedes Benz and its Chinese customers 3) To highlight the challenges involved in using the major social media networks as communication channels between sellers and consumers 4) To provide recommendations on how to effectively use social media channels to achieve optimum communication satisfaction with the customers 1.5 Research questions 1) Which social media channels have been used in China to successfully create product awareness in the automobile industry? 2) What are the direct benefits of using social media in communication with existing and potential customers? 3) What are the potential challenges in using social media as channels for communicating with customers? 4) What strategies can be employed to improve the use of social media in vendor-customer interaction? 1.6 Structure of the project document This research project will be structured as follows: a) Chapter 1 (introduction) - This chapter provides the background of the study, aim and objectives of the research. b) Chapter 2 (literature review) - This chapter provides analysis of similar academic studies in the area of study to establish research gaps. c) Chapter 3 (research methodology) - This chapter contains the methods of gathering data and the data collection tools d) Chapter 4 (findings and analysis) - This chapter emphasizes on the data analysis, key results and their significance in relation to the research aim and objectives. e) Chapter 5 (conclusions and recommendations) - This chapter contains conclusions and recommendations linked to the research aim and objectives including limitations of the research and also suggestion for further research. References Barker, M., et al., 2012. Social media marketing: a strategic approach. CA: Cengage Learning. Ferrel, O. and Hartline, M., 2010.Marketing strategy. CA: Cengage Learning. Harris, J., 2014. Social media communication: concepts, practices, data, law and ethics. New York: Routledge. Huang, H., 2014. Social media generation in urban china: a study of social media use and addiction among adolescents. Beijing: Springer Science & Business Media. Klamming, G., 2013. The role of price for premium brands - the case of the automotive industry. MA: GRIN Verlag. Lardi, K. and Fuchs, R., 2013. Social media strategy. MA: vdf Hochschulverlag AG Lewis, M., 2011. Social media leadership: how to get off the bench and into the game. New York: Social Strategy1. Lewis, M., 2012. Stand out social marketing: how to rise above the noise, differentiate your brand, and build an outstanding online presence. Sudbury: McGraw Hill Professional. Sandoval, M., 2014. From corporate to social media: critical perspectives on corporate social responsibility in media and communication industries. New York: Routledge. Smith, P. and Taylor, J., 2004. Marketing communications: an integrated approach. MA: Kogan Page Publishers. Treadaway, C. and Smith, M., 2012. Facebook marketing: an hour a day. New York: John Wiley & Sons. Read More