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Literature Review

Measuring Social Marketing


The often-unanswerable prediction is whether online marketing campaigns will
be effective in the short and long terms (Oracle, 2008). Online marketing is
difficult to execute successfully and measure adequately (Ranaweera &
Prabhu, 2003). The quest for reliable metrics means that some marketers will
shy away from implementing online tactics that draw only short-term attention
to tactics that actually allow for prospect identification and capture of
behavioural data (Riegner, 2011). Based on Trusov, Bucklin and Pauwels
(2009), much of what happens in social marketing are little more than
experimental, or simply about insights rather than metrics.
Many marketers feel the need to tick the social media box and demonstrate
how cutting edge they are, while the primary drivers of their campaign remain
embedded in traditional media (Guba & Lincoln, 1991). There is a need to
affect a paradigm shift from a traditional more is better approach. While
many social marketers fixate on volume metrics (website traffic, hit rates, clicktroughs, time spent on-line, postings etc.), successful social marketing often
depends more on qualitative metrics for desirable signs of the tone, quality
and customer benefit of the interaction (Cronin, Brady & Hult, 2000; Fisher,
2009). Such metrics not only measure whether people are engaged, but how
they are engaging (Keller & Berry, 2006). However, such metrics often need
to be customized for individual campaigns and need to be considered in the
pre-launch phase, ideally incorporated in message testing (Robey, 2011).
Baker (2009) stated that consumers learn about brands through social media.
Harridge and Quinton (2012) estimated that consumers generated more than
500 billion impressions about products and services through social media in
2011, approximately one-quarter of the number of impressions created
through all forms of online advertising. Those earned media impressions help
people learn about products.

In a recent study, Riegner (2011) found that Facebook users are over 50%
more likely to recall an ad when their friends are featured in it. For instance,
the percentage of consumers who use ratings and reviews to inform their
decisions about online purchases increased from 12% in 2009 to 57% in 2011.
Consumers increasingly consult social media as they purchase.
Kaplan and Haenlein (2010) they define social media as a group of Internet
based applications that build on the ideological and technological foundations
of Web 2.0, and allow the creation and exchange of user generated content.
Sinclaire and Vogus (2011, 294) cite OReillys (2005) definition: social
media is a broad term that describes software tools that create user generated
content that can be shared. However, there are some basic features
necessary for a website to meet the requirements as a social network website:
the site must contain user profiles, content, a method that permits users to
connect with each other and post comments on each others pages, and join
virtual groups based on common interests such as fashion or politics. (Gross
& Acquisti, 2005; Ellison, Steinfield & Lampe, 2007; Lenhart & Madden,
2007; Winder, 2007; Boyd & Ellison, 2007 as cited in Cox 2010).
The phrase social networking sites is often used interchangeably with social
media. However, social media is different because it allows participants to
unite by generating personal information profiles and inviting friends and
colleagues to have access to those profiles (Kaplan and Haenlein 2010).
Thus, social media is the environment in which social networking takes place
and has altered the way in which consumers gather information and make
buying decisions.
Social media has advanced from simply providing a platform for individuals to
stay in touch with their family and friends. Now it is a place where consumers
can learn more about their favourite companies and the products they sell.
Marketers and retailers are utilizing these sites as another way to reach
consumers and provide a new way to shop. Technology related developments
such as the rise of powerful search engines, advanced mobile devices and

interfaces, peer-to-peer communication vehicles, and online social networks


have extended marketers ability to reach shoppers through new touch points
(Shankar et al. 2011).
Palmer and Lewis (2009) Social media has gained a lot of popularity over the
past few years and as a result of this popularity, other traditional Media have
experienced decline in both business and popularity. They argued that the
main stream media channels have faced many challenges in recent times that
have led to closure with TV facing down turn in their profits levels. Palmer and
Lewis are correlating the performance of these traditional channels to the rise
of social media in marketing and brand management. As a result of completion
and tough economic environment, companies have tightened their budgets
especially advertising budgets which have shifted to online channels.
According to Forrester research study (2011) by Ernst.J, David M. and
Cooperstein, Dernoga M, found that companies (brands) are gradually
shifting their advertising priorities to align better with today's buyers. Todays
buyers are tech savvy and social media maniacs. Therefore it is the
proliferation of the social media network services in brand management and
marketing that bring us to the attention of social media networks. First, the
researcher will define social media and then outline those networks that are
driving the debate.
Chaffey et al. (2003) describe internet marketing as the application of the
Internet and related digital technologies to achieve marketing objectives
(Chaffey et al. 2003, 1). These marketing objectives can be realized by use of
social media networks which is a subset of internet application. Social media
networking platforms serve as a tool for marketers (Qualman, 2010). This
implies that Facebook, twitter etc. are means of accomplishing marketing
strategies through the internet. It is therefore imperative for marketers to find
suitable platforms to suite their marketing objectives. A good marketing
objective enables marketers to acquire new customers, while retaining the
already existing ones through customer satisfaction.

Kaplan and Haenlein (2010) define social media as a group of Internet


based applications that build on the ideological and technological foundations
of Web 2.0, and allow the creation and exchange of user generated content.
According to Kaplan and Haenlein (2010) web 2.0 is a platform where content
is continuously altered by all operators in a sharing and collaborative way.
Web 2.0 is a web based technology which helps to create highly interactive
platforms through which individuals and communities share, co-create,
discuss and modify user generated content. Social media are the websites
which are build upon the technological foundations of web 2.0 that help a user
to create use generated contents that can be shared. This technology allows
a user to create and publish the content on the social media networks. This
information can be shared with other members of the social media website,
who are connected with the user. This process is interactive where other
members can also respond in different ways.
Mangold and Faulds (2009) describe social media as the set of online
word of mouth forums which includes blogs, discussion boards, forums or
social networks to name a few. Using all mobile and web-based technologies,
social media creates highly interactive platforms by bringing together
individuals and creating communities. Internet has a lot of websites; each of
them has different functional attributes and caters to different sections of
society. Websites like facebook are for general masses but LinkedIn is
focused on professional networking. Media sharing sites (i.e. YouTube,
Picassa and Flickr) or blogging platforms (i.e. blogspot, wordpress) are also
members of this ecosystem called social media (Kietzmann et al., 2011).
Social media has equipped the organization to establish an direct relationship
with the consumers. Both of the organizations and consumers are free to
generate content on the web pages, which further leads to conversations and
discussion. Organization on one end are provided with an opportunity to share
their information with a large base of customers and on the other end
consumers are also free to publish any content whether positive or negative
regarding the information

Weinberg (2009) defined social media marketing is a new marketing strategy


which almost every business is adopting to reach their consumers on the
virtual networks. If you have an idea and you want it to reach millions, at a
very little cost, then social media is the only way-out. Entertainment
companies were the first to adopt the social media as a promotional tool.
Weinberg (2009) has defined social media marketing as the process that
empowers individuals to promote their websites, products, or services through
online social channels and tap into a much larger community that may not
have been available via traditional channels. So if we keep it simple, social
media marketing is the process where organizations use social media
websites to build rush on their company official websites. It does not stop here
but organizations also inform the potential customers of happenings in the
organization, launch of the new model or product and latest news about the
organization through social media applications.
Gordhamer (2009) has related social media marketing to the relationship
marketing where firms need to shift from trying to sell to making
connections with the consumers. This explanations of social media marketing
takes us to the other side of marketing, where building relations with the
potential consumers is the key to repeated purchases and enhanced brand
loyalty. Social Media is an innovative tool that organizations use for creating a
very strong public relation with the customers on the virtual networks (Jan &
Khan, 2014).
Maintaining public relations through social media has become easy because a
large number of potential consumers are available on the virtual networks.
And making connection with consumers using social media is only some
clicks away. Todays customers are more powerful and busy; therefore,
companies should be reachable and available in every social media
communication channel such as Face book, Twitter, Blogs, Forums at any
time (Gordhamer, 2009). Exploiting the opportunities provided by the social
media communication channels is important for every organization
Social media have increased popularity

In recent years, social networking sites and social media have increased in
popularity, at a global level. For instance, Facebook is said to have more than
a billion

active users (as of 2012) since

its beginning in

2004

(www.facebook.com). Social networking sites can be described as networks


of friends for social or professional interactions (Trusov, Bucklin, & Pauwels,
2009).

Indeed, online social networks have profoundly changed the propagation of


information by making it incredibly easy to share and digest information on the
internet (Akrimi & Khemakhem, 2012).
The unique aspects of social media and its immense popularity have
revolutionized marketing practices such as advertising and promotion (Hanna,
Rohm, & Crittenden, 2011).
Social media has also influenced consumer behaviour from information
acquisition to post-purchase behaviour such as dissatisfaction statements or
behaviours (Mangold & Faulds, 2009) and patterns of Internet usage (Ross
et al., 2009; Laroche et al., 2012)
Mersey, Malthouse, and Calder (2010) Social media websites provide an
opportunity for companies to engage and interact with potential and current
consumers, to encourage an increased sense of intimacy of the customer
relationship, and build all important meaningful relationships with consumers
especially in todays business environment when consumer loyalty can vanish
at the smallest mistake, which can additionally have online propagation of
their unfortunate encounter with a particular product, service, brand or
company
Donovan & Henleys (2003) A key distinction separating Donovan & Henleys
(2003) definition of social marketing from most other definitions is the notion
of supporting involuntary behaviour changes amongst target audiences.
Donovan & Henley suggest that an influence on upstream decisions that
impact on involuntary audience behaviours is appropriate and a legitimate use
of social marketing.

Social marketing is often more complex than commercial and not-for-profit


marketing. The issues are likely to be far more complex (e.g. reducing harmful
gambling or smoking behaviours versus purchasing products such as a can of
coke or a bike). The number and nature of relationships can be far more

complex (e.g. buying shelf space in a supermarket compared to negotiating


with politicians, Government agencies, General Practitioners and service
providers to fund and deliver specific services; trying to get industry to restrict
products that can contribute to harmful behaviours, particularly where it
adversely affects their bottom line) and the competition can be particularly
challenging (e.g. trying to manage global multi-billion dollar industries), a
requirement for increased consumer involvement and effort (having to turn up
to regular appointments), overcoming ingrained behaviours and values
(Donovan and McDermott et al, 2005)
Business Horizons (2009) the emergence of Internet-based social media
has made it possible for one person to communicate with hundreds or even
thousands of other people about products and the companies that provide
them. Thus, the impact of consumer-to-consumer communications has been
greatly magnified in the marketplace.
This article argues that social media is a hybrid element of the promotion mix
because in a traditional sense it enables companies to talk to their customers,
while in a non-traditional sense it enables customers to talk directly to one
another. The content, timing, and frequency of the social media-based
conversations occurring between consumers are outside managers direct
control. This stands in contrast to the traditional integrated marketing
communications paradigm whereby a high degree of control is present.
Therefore, managers must learn to shape consumer discussions in a manner
that is consistent with the organization's mission and performance goals.
Methods by which this can be accomplished are delineated herein. They
include providing consumers with networking platforms, and using blogs,
social media tools, and promotional tools to engage customers
Ayaz Nanji (2016) to find out, TrackMaven examined full-year 2015 social
media follower data for 26,965 brands across a wide range of industries. The
researchers determined the median monthly follower growth percentage per
brand on Facebook, Twitter, Instagram, LinkedIn, and Pinterest. Brands'

median annual follower growth was 42% last year across the five major social
networks examined. Put another way: a typical, middle-of-the-road brand had
42% more followers on Facebook, Twitter, Instagram, LinkedIn, and Pinterest
combined at the end of 2015 than it did the beginning of the year. The highest
growth rate was for Instagram, with the median number of followers
increasing 6-8% month over month. Annually, brands' median growth in
number of followers was 100% on Instagram in 2015. Brands grew their
Facebook, Twitter, and LinkedIn audiences by nearly a quarter last year (23%,
23%, and 24% median annual follower growth, respectively). The smallest
annual follower growth rate occurred on Pinterest (20%)

Kaplan and Haenlein (2010) they describe social media as a group of


Internet based applications that build on the ideological and technological
foundations of Web 2.0, and that allow the creation and exchange of usergenerated content. Web 2.0 technologies on the Social Web permit two-way
conversations with consumers enabling brands to listen to consumers and
respond (Fournier & Avery, 2011). Consumers and organizations alike are
increasingly using the web to discuss, share, and collaborate (Jones, 2010).

Mangold and Faulds (2009) social media has caused a significant change in
the strategies and tools companies use for communicating with customers.
They argue that social media combines characteristics of traditional IMC
tools (companies talking to customers) with a highly magnified form of wordof-mouth (customers talking to one another) whereby marketing managers
cannot control the content and frequency of such information. Companies are
limited in the amount of control they have over the content and distribution of
information. Ignoring such user-generated content is not an option.
Companies must be able to monitor and respond to conversation, both
positive and negative, surrounding the brand. There are ways however, that
companies can influence discussions in a way that is consistent with the
organizations mission. Social media marketing enables companies to achieve

a better understanding of customer needs in order to build effective


relationships.

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