Social Media Marketing - Term Paper Example

Social Media Marketing Name Institution Social Media Marketing Introduction Due to technological advancement, social networking has grown to be an avenue where companies present their marketing campaigns to global consumers (Singh, Sangeeta and Sonnenburg, 2012). Today, social media is seen as an avenue where brands and consumers connect and interact. The approaches and techniques used for reaching the consumers have changed over the years with the occurrence of social media. And as that, companies are expected to learn how to fully utilize social media in a consistent way in order to ensure marketing success (Neti, 2011). The way of communication has evolved with the emergence of social media. Currently, most businesses regardless of size have established presence on social media. Initially, it was a channel for communication between people, but it has become one of the most used media for marketers. Companies have changed their conventional marketing strategies to incorporate social media usage. Social media once used in business can have a significant impact on marketing activities and can be a source of competitive advantage (Singh, Sangeeta and Sonnenburg, 2012). This assessment will review current literature about social media marketing. It will explore the impacts of social media on businesses and its implication on business marketing. It will highlight how Oreo and Royal Dutch Airlines have used social media to create brand awareness and identity. Part 1: Theoretical Perspective According to Kaplan and Heinlein (2010), it is important to first define social media first in order to understand it’s significant as a marketing tool. Social media is considered an internet based application that uses the Web 2.0 which allows people to create and exchange media content. Sinclaire and Vogus (2011) have defined social media as a software tool that has the ability to create user generated content. According to them, in order for a website to be termed as a social network, it needs to meet some basic features; it should contain user profile, permit users to post and share contents, allow the creation of virtual groups etc. Social media allow people to connect by generating personal information profile. Therefore, social media is considered an environment where social networking happens. According to Mangold and Faulds (2009), it can be defined as online forums such as blogs, social networks and forums etc. where people freely connect and share information. Social media has provided an opportunity for companies to establish a direct connection and relationship with the customers. Companies are able to share information about their brands with a large base of customers and in return, the customers have the freedom to offer negative or positive response regarding the information. According to honeycomb model established by Smith, social media is divided into blocks including groups, conversations, reputation, presence, relationships, identity and sharing (Singh, Sangeeta and Sonnenburg, 2012). The combination of these elements makes up a social media site. These elements are considered a building block of social media websites. In the last decade, several social media sites have emerged and are used by millions of people around the world. The most popular ones include Facebook, Twitter, Instagram, and YouTube etc. (Bernhardt et al., 2009). Among these, the most used social media platforms for marketing is Facebook and twitter. Facebook was launched in 2004 and to date it has over 1billion active users. Companies and marketers started using the site in 2011 and has grown to be among the most used network by companies (Carter and Levy, 2012). Twitter on the other hand was established in 2006 and has gained popularity since. Companies can share brand information to consumers through twitter. It has assist companies to create brand awareness and boost competitive advantage. Social media sites have played a major role in boosting marketing campaigns for companies whether small or big. According to Palmer and Lewis (2009), all social media networks ensure open and direct communication and act as a podium where companies can connect and share information with the customers. However, Fauser et al. (2011) argue that not all social media sites can work for every company. Although social media networks ensure direct communication, they are not equally suited for cultivating relationships. Different scholars have different explanation of how social media marketing works. According to Fauser et al. (2011), for marketing campaign through social media to be successful, there is a need to have an exchange of ideas and information between a marketer and the customers. The whole idea of social media marketing is only possible through two way communication between consumers and a business. However, Gummesson (2002) argue that marketing through social media is initiated by marketers. For a long-term relationship to be developed and maintained, marketers should be committed to creating their own communities and construct lead discussions. This means that marketers are the once who determine whether there will be a long-term relationship between themselves and the online consumers (Singh, Sangeeta and Sonnenburg, 2012). Social networking has built an online community that is made up of people from different locations across the globe (Ferguson, 2008). The main aim of social media is for interaction and socializing. Different people from around the world are able to connect and interact openly through social networking. Due to the power of social networking, companies are interested in sharing information, trading products and services and staying connected to consumers across the globe (Ferguson, 2008). This is made possible through social networking. Social media has resulted to a culture of active engagement, direct interaction, constant communication and immediate access. In the social network, information can easily be created, distributed and consumed by users as a means by which people educate one another about brands, products and services. Companies and consumers can openly engage through the social media and firms can influence consumer perceptions of products, services and brand (Mangold and Faulds, 2009). This enhances customer loyalty in the long run. Consumers interact freely through the social media making them the main source of brand communication. Consumers share their experiences of different products and services of different organisations. Social media has been able to create virtual communities made up of people from around the world. (Sinclaire and Vogus, 2011) In marketing, through social media, companies have created a community of people whom they interact and share information with. Social media has created a marketing tool call Virtual Band Communities. Virtual Brand Communities is the aggregations and connection of consumers that takes place through the internet due to a common interest in brand, product or service. In specific, brand community entails a group of individuals with a shared interest for a given product or service. In general, virtual brand community are considered sites meant to create brand meaning and awareness. According to Georgi and Mink (2012), when individuals trust their VBC, it increases their participation and can have more loyalty to a particular brand. For social media marketing to be possible there is need for trust. Trust is a primary element for the survival of virtual brand community. Casalo, Favian and Guinaliu (2008) argue that security is an important aspect affecting consumer’s use of social media as a shopping media as it impacts trust. An opportunity for people to interact enhance consumer experience and through social media; Virtual Brand Communities have created an avenue where marketers and consumers can interact easily at any time. Virtual Brand Communities are focussed on group norms and ethics. And as such, they are able to influence virtual group’s behaviour (Palmer and Lewis, 2009). Due to consumer to consumer interaction in the VBC, consumers play a major role in impacting each other as well as buying decisions. The nature of social media groups influences the way people in the groups interpret and accept brand meaning. Illustrating this, if a social media group is based on electronic products, then advertisements regarding to electronic products tend to be more relevant to consumers of that Virtual Brant Community. Casalo, Flavian and Guinaliu (2008) highlight that; members of a VBC accept the meaning of a brand or product depending on consumer to consumer interactions taking place in social media groups. However, as cited by Carter and Levy, 2012, although social media groups or consumer to consumer interaction influences consumer buying decisions, some people interpret brand meaning or make purchasing decisions based on their previous experiences. Georgi and Mink (2012) agree with Casalo, Flavian and Guinaliu (2008) that purchasing decisions with regard to social media marketing is impacted by the responses given by other consumers about a brand, product or service. Based on research model, Casalo, Flavian and Guinaliu (2008) conclude that social media has converted one-way communication into multi-dimensional communication. And therefore, consumers interact freely through the social media making them the main source of brand communication. They are huge determiners of the success of social media marketing. Internet users have the opportunity to share their experiences of different products and services of different organisations. Every social media member has a friend circle who they share good and bad experiences with (Cox, 2010). The information shared between consumers about a brand influences the success of a marketing campaign. What people say about a product or a service is very important and companies do not have control what it is said. When companies learn to influence the audience, they can design a defensible market position as a result of social acceptance. This can thereby assist in constructing brand meaning. Before embarking on any marketing campaign, companies need to establish the factors that affect consumers’ attitudes and buying behaviour since they control the contents about brands thanks to social media. A number of literatures have studied the aspects of social media networks that influence consumer attitudes. A research carried out by Chu (2011) was aimed at establishing the connection between Facebook group participation, consumer responses and attitudes among members of the Facebook groups. From the research, it was found out that users who belong to specific Facebook groups were more likely to offer their personal information that their counterparts. Research indicates that group participation to online advertisement require personal information since member are not afraid to expose their connections to Facebook groups and can facilitate brand awareness by sharing an ad with their network. Chu (2011) explains that Facebook groups offer an avenue that consumers consider useful when seeking information about a brand or product and when passing viral brand information to their social contacts. In addition, the research also revealed that members of a Facebook group often have a favourable attitude towards social media advertising (Chu, 2011). Positive attitude towards social media advertisement can make an individual join a brand’s Facebook group. From the study, it is clear that the consumers’ engagement with group application determines the effectiveness of social media advertisement. Chu (2011) found out that most of the Facebook’s college-aged users who make the largest growing demographic in social media have positive attitudes towards social media advertisement. This suggests that social media sites are favourable avenues for online advertisement especially for organisations targeting younger audience. In another research conducted by Cox (2010) which involved the correlation between age and attitude, results showed that social media users’ attitudes and motives differed considerably across age groups. Users in the age group between 18-28 years have strong positive attitude towards social media advertisement. Users in the age bracket of 35-54 preferred advertisement in other formats such as brand channels and videos. Overall, social media advertisements are welcomes by majority of users but those that interfere with social networking activities like expendables and pop ups are not preferred (Cox, 2010). In order for organisation to survive in today’s competitive business environment, they need to develop solid social media campaign. A firm social media campaign is characterized by a strong relationship between the company and the customers (Mangold and Faulds, 2009). For a strong B2C relationship to be established in the social media there is need for an authentic interaction between the company and the consumer. Different companies built a presence in the social media for different reasons. For instance, companies can establish social media presence to cut on marketing costs and save money (Singh, Sangeeta and Sonnenburg, 2012). Whatever the reason, the role and value of social media marketing are unquestionable. Effective social media is also characterized by authenticity. Brand communication in social media is expected to be authentic. Authenticity can be described as the quality of being genuine and trustworthy. Authenticity and trustworthy are considered important in building a successful brand through social media marketing (Singh, Sangeeta and Sonnenburg, 2012). There are several ways in which organisations can manage and create strong brands in the social media. Organisations can listen carefully and respond authentically to customer demands (Kaplan and Haenlein, 2010). They can signify an understanding of social media cultural environment where their brand operates. In addition, companies can manage their brand in the social media by engaging the consumers in the brand’s game through the creation of branded artifacts, cultural icons etc. Authenticity is considered important in building a successful brand through social media (Gummesson, 2002). Communicating a brand through social networking needs to be authentic since it assists in creating brand meaning. Brands in the social media can also become more refined via open conversations between marketers and consumers. Refined and humanized brands often derive more favourable consumer attitudes and perception and thereby improve the creation of brand meaning (Gummesson, 2002). It is not easy for companies to market their products or services through social media. Social media can be termed as a double-edged sword (Bernhardt et al., 2009). This means that it can build and destroy at the same extend brand reputation. Although the main idea of social media marketing is to establish a long-term relationship with consumers, it can destroy how other consumers perceive a brand (Bernhardt et al., 2009). Since companies no longer have control of brand communication in the social media, any negative comment posted by a consumer can affect the reputation of a company. The research on social media marketing has implications for managerial practices in companies. The key finding across several research studies illustrates that social media is a double-edged sword as it can have negative and positive impacts on companies (Bernhardt et al., 2009). And as such, in order to yield the positive benefits of social media, companies should work at establishing good relationship with the consumers and engage them in their social media campaigns. The success of social media marketing depends on how companies engage with its audiences. For companies to be successful in the social media, it needs to be relevant, unique and compelling (Sinclaire and Vogus, 2011). Companies should create a community of loyal customers through trust and friendship. Since mobile marketing and social media marketing are new marketing strategies, companies should adopt new marketing policies and programs different from the traditional ones. Mobile marketing is considered relationship marketing and therefore companies should learn new strategies on how to maintain and enhance relationships with customers (Sinclaire and Vogus, 2011). The use of social media will affect how companies operate in future. Traditional marketing strategies will reduce in popularity and more and more companies will opt to use social media as the primary marketing media. Part 2: Industry Application Many companies today have adopted social media as a strategy to win the attention of the global market. Some companies that have been successful in the social media include Oreo, Danny’s, Dove, GoPro and Royal Dutch Airlines among others. This assessment will examine social media marketing in Royal Dutch Airlines and Oreo. Oreo Oreo have created a global buzz about their cookies which has been possible through social media marketing (Hayes, 2013). Oreo is among companies that have been innovative in the social media and have avoided replication of online contents. Although Oreo brand is known globally for its black and white stripped cookies, it is considered a social media powerhouse. Twitter is an excellent media for Oreo’s agile marketing strategy (Hayes, 2013). The company is known to respond to trends and customer’s enquiries in seconds which enhance its customer loyalty. One way Oreo has established a strong social media presence is through its Dairy Twist Campaign. From 2012, Oreo ensures that it releases daily imaginative image of cookie to celebrate events that happens in a specific day (Hayes, 2013). For instance, in August 5th, the company released an image of the cookie to commemorate the Mars rover landing. This campaign is carried out in the company’s Facebook page and has been able to attract more followers and increase customer engagement (Hayes, 2013). In addition, since the inception of the Oreo’s Daily Twist Campaign, the company has been able to increase the number of its followers. The success of the campaign has been attributed to timely and tropical posts. Oreo has established and maintained long-term relationship with its customers by creating its own communities of followers and constructing lead discussions (Ratcliff, 2013). Since marketers are the once who determine whether there will be a long-term relationship between themselves and the online consumers, Oreo have taken an initiative to engage its customers through innovative posts and tweets. Daily tweets and posts as well as consistency and frequency of engaging customers have enabled Oreo influence consumer perceptions of their products and brand (Ratcliff, 2013). This has enhanced customer loyalty in the long run. In addition, according to Das and Sahoo (2011), for social media marketing campaign to be successful, it should be social and fun. People tend to enjoy entertaining as well as fun-loving engagement. Oreo’s social media campaigns and advertisements are meant to make people smile. For instance, the Daily Twist Campaigns often delight its customers since they are fun and engaging (Ratcliff, 2013). Every time Oreo interact with its virtual brand community, it is able to make people smile and happy. Oreo has social media presence in sites such as Pinterest, Facebook, Twitter, and Instagram among others. It has utilized all these networks to attract new customers and maintain good relationship with them (Ratcliff, 2013). Oreo knows what attracts its consumers. The company posts interesting images and contents that feature delicious looking cookies with innovative sense of humour. In 2012, the company was ranked among the companies with the best social media marketing strategy. From 2012, it has gained 49% increase in online followers (Ratcliff, 2013). Since social media users have the opportunity to share their experiences of different products and services to their networks, they influence the success of a product in the social media (Hayes, 2013). Every social media member has a friend circle who they share good and bad experiences with. Oreo has received positive feedbacks from its customers. Most of them retweet the company’s content and offer positive information about their experiences with the products (Hayes, 2013). This information shared and posted online has partly led to the success of the company’s social media marketing campaign. Another factor that has made Oreo’s social media marketing to be successful is the fact that the company uses high production quality posts and graphics (Hayes, 2013). All images that the company post are nicely designed which makes it easy to understand. The simplicity of its posts, videos and tweets together with the exciting visual elements of all its campaigns makes it easy for social media users to understand and share. Oreo’s extensive use of social media has seen success. It has enabled the company cut down on expenditure (Ratcliff, 2013). Social networking sites especially twitter and Facebook have enabled the company cut spending costs. Compared to other marketing mediums, social media marketing has contributed to the success of Oreo and has made it one of the best global brands. Oreo has been able to reach customers from all corners of the world and has brought fun and happiness through social media. Royal Dutch Airlines KLM Royal Dutch Airlines has been in existence since 1919 and is among the largest airlines in the world. It is headquartered in Amsterdam and offers passenger and cargo services to about 95 destinations across the world (Expert Commentator, 2012). The growth and success of the company is partly attributed to its innovative social media marketing campaigns. Royal Dutch Airlines has gained customer loyalty through its strong social media marketing. The company is not stranger to social media (Hutchinson, 2015). Its social media marketing campaigns are among the best. Royal Dutch Airlines have effectively implemented a social media marketing plan for more than four years which has increased customer engagement (Hutchinson, 2015). The company has created its social media strategy on its website and other platforms such as Facebook, Twitter, Pinterest and Google+. Over the past few years, Royal Dutch Airlines have launched a number of social media campaigns most of which ended up to be a success (Hutchinson, 2015). One of its successful social media campaign was the KLM Surprise. KLM Royal Dutch Airlines decided to experiment its social community made up of people who check their flights services through Twitter or Foursquare (Schoultz, 2016). KLM Surprise was meant to bring unplanned surprises to people waiting for flights. The KLM team identified passengers waiting for flights who were currently using Twitter of Foursquare. They then searched for their social profile to find more about their personality and likes. Then, they used the information to surprise its passengers with gifts before they boarded their flights. Passengers were happy and most of them would post tweets about their great experience with the airline. This enhanced their reputation and eventually their customer base (Schoultz, 2016). In addition, another successful campaign for Royal Dutch was the KLM Meet and Seat campaign (Hutchinson, 2015). The objective of this campaign was to offer its passengers a chance to choose their own seat-mates by accessing each other’s social media profiles. When a passenger choses to participate, his or her social media profile is linked to his or her check-in information which was accessible to other passengers (Hutchinson, 2015). This created an opportunity for customers to create a relationship with their seat-mates before boarding their flights. Such a campaign offered happiness and fun to customers and enhanced customer loyalty. One quality that differentiates KLM from most companies in the airline industry is its exceptional customer service offered through social media. On average, the response for customer care for the company is 5 minutes (Expert Commentator, 2012). The company has maintained exceptional customer service for years since it understands that success of social media marketing starts with good customer service. The social media team is in operation for 24/7 on all social media networks and is working at improving the response time in the years to come (Hutchinson, 2015). Moreover, the use of Twitter and Facebook has enabled Royal Dutch Airlines to offer directed and personalized marketing (Expert Commentator, 2012). Because of their huge number of followers and level of activity, Twitter and Facebook are considered appealing media for marketing and advertisement for the company. KLM uses these platforms to create direct-response marketing strategy (Expert Commentator, 2012). Through effective social media use by the company, consumers can receive immediate and direct answers to marketing enquiries within a short time. As a result of personalized interaction with consumers, KLM acquires valuable information and insight about their products or services (Expert Commentator, 2012). Twitter is a very valuable marketing tool used by Royal Dutch Airlines. Occasionally, the company uses twitter to drive traffic by driving people to its website. The company often ensures that it tweets about interesting information posted on its website (Schoultz, 2016). This directs people to its website and increases their engagement. The company also posts links to special offers and promotions found in its website to twitter in order for people to start tweeting about it and share information with others. The company also uses twitter to promote events and campaigns (Schoultz, 2016). When Royal Dutch Airline holds an event or campaign, it tweets about it. Doing this ensures that many people take part in the campaign and creates a sense of community. It engages customer in conversations and discussions and listens to complains. Any complaints from customers are taken personally and where possible, the company ensures that it makes changes to suit the customers’ preferences (Expert Commentator, 2012). Conclusion Social media has changed how companies market their products and services. Social media is an online forum where people freely connect and share information. Use of social media for marketing has enabled companies to create a community of people whom they interact and share information with. The success of social media marketing depends on how companies engage with its audiences. For companies to be successful in the social media, they need to be relevant, unique and compelling. It is not easy for companies to market their products and services through social media since it is a double-edged sword. 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