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, click-troughs, 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 O’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. (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. Today’s 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. Today’s
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 today’s 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 & Henley’s (2003) A key distinction separating Donovan & Henley’s (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 user-generated 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 word-of-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 organization’s mission. Social
media marketing enables companies to achieve a better understanding of customer
needs in order to build effective relationships.