STUDY ON SOCIAL MEDIA MARKETING

INTRODUCTION
The meaning of the term ‘social media’ can be derived from two words which constitute it.
Media generally refers to advertising and the communication of ideas or information through
publications/channels. Social implies the interaction of individuals within a group or
community. Taken together, social media simply refers to communication/publication
platforms which are generated and sustained by the interpersonal interaction of individuals
through the specific medium or tool. Wikipedia has a general definition of the term: Social
Media is the democratization of information, transforming people from content readers into
content publishers. It is the shift from a broadcast mechanism to a many-to-many model,
rooted in conversations between authors, people, and peers. Social media marketing refers to
the process of gaining website traffic or attention through social media sites. Social media
marketing programs usually center on efforts to create content that attracts attention and
encourages readers to share it with their social networks. A corporate message spreads from
user to user and presumably resonates because it appears to come from a trusted, third-party
source, as opposed to the brand or company itself.[citation needed] Hence, this form of
marketing is driven by word-of-mouth, meaning it results in earned media rather than paid
media. 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

In today’s technology driven world, social networking sites have become an avenue where
retailers can extend their marketing campaigns to a wider range of consumers. Chi (2011, 46)
defines social media marketing as a “connection between brands and consumers, [while]
offering a personal channel and currency for user centered networking and social
interaction.” The tools and approaches for communicating with customers have changed
greatly with the emergence of social media; therefore, businesses must learn how to use
social media in a way that is consistent with their business plan (Mangold and Faulds 2099).
This is especially true for companies striving to gain a competitive advantage. This review
examines current literature that focuses on a retailer’s development and use of social media as
an extension of their marketing strategy. This phenomenon has only developed within the last
decade, thus social media research has largely focused on (1) defining what it is through the
explanation of new terminology and concepts that makeup its foundations, and (2) exploring
the impact of a company’s integration of social media on consumer behavior. This paper
begins with an explanation of terminology that defines social media marketing, followed by a
discussion of the four main themes found within current research studies: Virtual Brand
Communities, Consumers Attitudes and Motives, User Generated Content, and Viral
Advertising.
Social media has gained importance and acceptance at a very past pace. It has become an
avenue to share one’s personal and professional life. The usage of social media as a marketing
tool is already implemented by many businesses. This reports analysed how effectively social
media be used as a marketing tool. The comparison of social media versus traditional media for
marketing was studied and advantages and disadvantages of both are compiled. This report also
analysed how small business start-ups can benefit from the ever growing social media industry.
Method: This report used journals, magazine articles, newspaper articles, business reviews,
online survey and so on from the. Further official social media pages of various companies on
Facebook, Twitter and LinkedIn were analysed to generate statistics. Result: Social media
presence is definitely an advantage for all kinds of businesses. Social Media marketing has wider
market appeal and is relatively cheaper than traditional advertisements. With a huge number of
audiences and high customisability of social media for required content, social media marketing
emerges as an exciting and effective tool for marketing.

ss
Although social media marketing is a well-researched topic, it has only been studied through
experimental and theoretical research; studies never precisely describe the benefits retailers
gain from this marketing tactic. In reviewing the rich plethora of multi-disciplinary literature,
it is has become clear that studies are focusing on describing what social media marketing is
as well as examining what factors affect consumer behavior relative to social networking.
Despite the initial progress made by researchers, development in this area of study has been
limited. Research needs to expand by providing a deeper understanding of the longterm
promotional gains retailers obtain from social media marketing. More formalized studies are
also needed to progress beyond theorized or predicted outcomes in order to gain knowledge
of real life applications. This review of literature touches upon the gaps that currently exist
within social media marketing research and points out the need for future studies to explore
the benefits gained by marketing on social networking sites, especially for small retailers.

Social media marketing sites have taken over today’s world .From what was started merely
for entertainment. Today these websites provides a host of opportunities to its Users ranging
from marketing their products increasing awareness on social issue , sharing photos , video
calls ,Joining groups and forms of interests promoting an idea , finding family roots finding a
lost friend , gaming , entertainment application and so on . In fact the usage of social media
marketing sites has been so diverse that many people use it for more than just entertainment.
Mena et al (2012) studied the readiness of health students to use Facebook as a platform for
training professional habits particularity in the case of influenza vaccination. This clearly
shows social networking sites serve as a creative solution to many business problems. Now
that you have an idea of the prevalence of social media and its rapidly growing influence, let's
take a look at some of the key ways in which social media can help you connect with your
target audience: Generate awareness of your company and its products or services by tapping
into one of the largest audiences in the world. Generate leads through your social networking
connections, speeding up the process by creating events and promotions. Draw in visitors to
your website and other online portals by using your social media resources to promote new
content. Maintain direct relationships with your customers and potential customers in order to
improve your product and get to better know your audience. Provide customer service and
advice directly to your audience and get useful feedback from your followers to help track
your success. Facilitate sharing of your online content through the use of social media sharing
buttons, effectively letting your audience advertise for you.
Social sharing and bookmarking refers to tagging and sharing content on social networking
websites like Facebook, Twitter and Google+ or social bookmarking websites like Delicious,
Digg or Stumble Upon. For sharing to happen, you need to have enough high quality and
useful content. Microblogging, typically using the Twitter platform, can help to raise
awareness and promote your content, thus drawing in more visitors to your website or blog.
However, for microblogging to become successful, you need plenty of content worth
promoting and sharing. SMM starts with extensive planning, followed by research into your
target audience. You will then need to move your focus to engaging your audience while
publishing content (content marketing) and promoting it on your various social networks
while also encouraging your audience to do the same. 2 - Social Media Networks to Use
While just about everyone has heard of the largest social media sites, such as Facebook and
Twitter, there are many others worth a mention to. This chapter takes a look at the world's
most popular social media platforms and how they can help small businesses with their social
marketing campaigns. Facebook With 1.28 billion active user accounts in March, 2014,
Facebook is by far the largest social media platform in the world providing both paid and free
marketing opportunities for businesses small and large.

Literature review

Kaplan and Heinlein (2010, 61) 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.” Sinclair and Vogues (2011, 294) citeO’Reilly’s
(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 other’s pages, and join virtual groups based on common interests such as fashion or
politics.
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 Heinlein 2010, 63). 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. Consumers’ Sentiment toward Marketing (CSM) is a factor
consider by researchers to measure how well consumers will perceive social
media marketing. CSM is defined as a concept which refers to the general feelings that
consumers have for marketing and the marketplace (Lawson et al. 2001as cited by Mady
2011). An individual’s perception of the overall marketplace plays a major role in whether or
not they are motivated to partake in consumption activities (Mady 2011). In order to create a
successful marketing campaign via social media, consumer must be open to the
technology. Consumer technology readiness is defined as
People’s propensity to embrace and use new technologies for accomplishing goals in home
and work” (Parasuraman, 2000 as cited by Mady 2011, 195). Consumer technology readiness
is important for retailers to remember when marketing on social networks because if their
intended target market does not use social media, is not familiar with it, or perceives it
negatively, then their social media marketing will be unrewarding. Analysis of technology
readiness can determine if marketing via interactive advertising would be a good fit for a
retailer’s target market. The Innovation Adoption Process (IAP) is another instrument that
provides information on a consumer’s acceptance of new technology. The IAP is the
progression through which an individual goes through the innovation-decision process
(Rogers as cited in Mady 2011). Five steps make up the process: knowledge of the
innovation, forming an attitude toward the innovation, deciding to adopt or reject the
innovation, implementation of the innovation, and confirmation of the decision (Mady
2011). Knowledge of IAP can help marketers obtain a social media marketing campaign that
is fulfilling. Social media has advanced from simply providing a platform for individuals to
stay InTouch 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, 30).
Shopper marketing is a new concept that has emerged, creating a new touch point for the
interactions between businesses and consumers. Shopper marketing is “the planning and
execution of all marketing activities that influence a shopper along, and beyond, the entire
path of purchase, from the point at which the motivation to shop first emerges through
purchase, consumption, repurchase, and recommendation” (Shankar et al. 2011, 29).
Perceived fit is an important factor for retailers to consider for shopper marketing; perceived
fit is the amount of similarity between an extension product category and existing products
affiliated with the brand (DelVecchio and Smith as cited in Cha 2009). The more people
perceive shopping services on social networking sites as useful and easy to use, the more
likely they are willing to shop for items on social networks (Cha 2009). Providing shopping
services on social networks can provide business growth for retailers due to the diversity of
consumers who use social media sites. The wide range of consumers utilizing social networks
means that most target markets can be reached (Cha 2009). This provides an effective
platform for retailers to promote their brand and products to potential consumers. According
to Shankar et al. (2011), shopper marketing can join forces with shoppers to improve
products, create clear messages, identify promoters, and serve as a connection to in-store
activities, thus demonstrating the importance of social media within a retailer’s marketing
plan. Advancements within social media sites have created consumer communities that are
defining new ways in which companies and customers can interact with one another to share
information on brand products. For example, virtual brand communities are creating a
computer-generated space for consumers and retailers to connect with one another via
marketing.
1.3 CONTEXT :

Google’s AdSense
The most prominent example of context marketing is Google’s AdSense. It uses search terms
entered into Google to select the right ad for that user.
Let’s say you’re interested in buying new CRM software. You type in ‘CRM software’ into
Google, and you’ll most likely see a Wikipedia article explaining what CRM software is,
though you’ll also see websites that allow you to compare various CRMs. At the top and
bottom of the search results, there will be a number of ads for CRM software solutions, which
will probably pique your interest.

 1.3.2 Facebook
Raise your hand if this has ever happened to you: you join a group on Facebook, and then
you start seeing ads for products (or even organisations) related to that group. Marketers can
take advantage of Facebook’s advertising platform to put context marketing into play.We’ll
illustrate with an example. Let’s say you join a group for surfers in Raglan. Within a day or
two of directly at you, because they think that joining, you start seeing ads for surfboards,
wetsuits, and board bags. Advertisers are targeting their ads at you because you’re interested
in surfing, and there’s a chance that you’re in the market for new gear.

YouTube
YouTube is another site that allows marketers to put context marketing into action. Marketers
can tailor their content based on what a viewer watches.Here’s an example: Jim bought a new
bike, but it doesn’t have reflectors on it. He wants to take the old reflectors off his other bike
and put them on his new one, so he finds a YouTube video on that very topic. Before the
video starts, YouTube displays an ad for a bike frame bag, which would be quite handy for
Jim, as it would be a good way to store the things he needs when he’s out for a ride. The bike
frame bag complements Jim’s current purchase (a new bike), and he’s in the right frame of
mind to listen to that message, making this a context marketing strategy win.

Mobile Devices
This is another familiar scenario: you’re planning a night out with your mates, but you can’t
decide where to eat. You open up Google on your cell phone and type in ‘restaurants near
me.’ A list of restaurants appears, including several ads for restaurants nearby. Even better,
some of those ads contain coupons for that new curry place you’ve been wanting to try.

Mobile devices are a new avenue for context marketing, because they allow marketers to use
your geographic location to send you targeted ads. With targeted ads, you can see the right ad
at the right time (such as when you’re trying to find a place for dinner).

Mobile Applications
Mobile apps are another important tool in context marketing strategies. As mentioned earlier,
they take advantage of your smart phone’s technology to share your location information
with brands.While a brand could offer its own app that leveraged location-based
technologies, there’s an equally valuable opportunity to partner with other applications. We’ll
use an example: a fast food company could partner with a mapping/navigation app, so when a
user gets closer to a restaurant location, the app would alert him or her that there’s someplace
to eat ahead. For drivers who have spent a while on the road, it’s welcome information,
because they’re most likely hungry.

Amazon
While Amazon is less popular in New Zealand, the e-commerce giant represents an excellent
example of how to succeed at context marketing.Its famed recommendation engine suggests
products that complement what we’ve put in our cart. Amazon will send email reminders
when there’s a sale on for the item that we’ve been considering. Also, if you’ve purchased a
book from a particular author, Amazon will alert you when he or she publishes another book.
16Handles
16Handles is a soft-serve yoghurt chain in the US. Market research revealed that their target
audience is 16 to 25-year-olds who use Snapchat. The firm developed a context marketing
strategy that catered to that very demographic.Customers had to snap a photo of themselves
at a participating 16Handles location tasting a yoghurt flavour, then send the photo to the
brand’s Snapchat account. Once 16Handles received the picture, the person handling the
Snapchat account would send the user a coupon for 16%, 50%, or even 100% off. Customers
loved the campaign because it rewarded them for doing something they were planning on
doing anyway (buying frozen yoghurt).

Johnson & Johnson

Johnson & Johnson’s Clean & Clear context marketing strategy revolved around creating
shareable electronic postcards that teenage girls could send to one another. These electronic
postcards contained links to a free skin analysis as well as samples of Clean & Clear. The
context marketing strategy had viral results: it encouraged girls to send the postcards to as
many of their friends as possible. For Johnson & Johnson, the ads were an inexpensive way
to position the brand’s product to the right audience at the right time.

It is vital for retailers and marketers to be aware of the factors that affect consumer

attitudes and motives because consumers are increasingly creating content about brands,

something previously controlled solely by companies (Heinonen 2011). As a result, current

research has examined what aspects of social media sites affect consumer attitudes and motives.

Chu (2011) examined the link between Facebook brand related group participation, advertising

responses, and the psychological factors of self-disclosure and attitudes among members and

nonmembers of Facebook groups. The study determined that users who are members of groups

on Facebook are more likely to disclose their personal data than nonmembers are. Chu (2011)

10

explains group participation and engagement with online ads requires a higher level of personal

information because users openly reveal their connections with Facebook groups and promote

brands or products when they pass on ads to their friends. “Facebook groups provide channels

that consumers deem useful when seeking self-status in a product category, as does passing on

viral content about brands to their social contacts” (Chu 2011, 40).

Chu (2011) also found that users who are Facebook group members maintain a more
favorable attitude toward social media and advertising. Users who have more positive attitudes

toward advertising are more likely to join a brand or a retailer’s Facebook group to receive

Promotional messages. Based on this result, Chu (2011) suggests that a link exists between

Consumers’ use of and engagement in group applications on a social media sites. The Relationship
between consumers’ use of and engagement with group applications influences the Rate and
effectiveness of advertising on social media, particularly Facebook. Generally, as Chu

(2011) notes, Facebook’s college-aged users have the most favorable attitudes toward social

media advertising and are the largest growing demographic, which suggests that social media

sites are a potentially rich platform for online advertising campaigns, especially for companies

with a younger target market.

Cox (2010) also investigated the correlation between age and attitude and found that

social network user attitude toward online advertising formats (i.e. blogs, video, and brand

channel or page) differed to some extent across age groups. She explains that users who fall in

the 18-28 age brackets had strong positive attitudes towards blogs, video, and brand channel ad

formats. This was because users’ found these ad formats to be eye catching, informative, and

amusing. The 35-54 age groups preferred ad formats on video and brand channels because they

found them to be more eye catching, informative, and had better placement within the online