marketing-researchm com

1

Bahria Institute of Management & Computer Science, Karachi

CHAPTER 1 - INTRODUCTION

Due to an increase in the number of social networking sites over the last decade, we have

observed a change in the way brands have been interacting with the customers, online. Since,

approximately every educated person is using internet today and social networks, where social

networks have brought a revolution as how brands and consumers interact and how these social

networks have affected the brands. The research topic is Social Networks and their effects on

brands or businesses. This will help in identifying the exact relationship between such social

networks and marketing of brands. Social networks like face book, twitter, LinkedIn, etc.

These social networks are not only a place to socialize but also to keep the customer up to date

with the brands and businesses they be new or already running businesses that provide us with

service and products. It is that brands have the power to change the world. This may sound like

a bold saying, but it is true. Brands are everywhere; they are influencing people’s daily lives.

Everyone seek to secure brands, that is made clear and obvious what they buy, and gain

comfort and encouragement from the brands they associate themselves with. People behaviors,

attitudes and even their values are all influenced by brands on a regular basis and done through

now social networks.

Social networking sites are a place where in one forms communities of interest to connect to

others. Social networking sites make the most of social media technology to connect

with people and build relationships. Social networking sites permit persons to make their

profile within a bounded system, share with other users and view and pass through their list of

connections and those made by others within the system ( (ELLISON, Boyd &, 2007) The

increasing confidence on technology for basic communication highlights the significance of

analyzing how these networking sites area effecting regular processes. any person including

youth and young adults, men, women, and prosperous consumers, and older individuals can

join a social network site.

2


Once registered person begins to socialize

and create his/her own network of friends with common interests or goals. Social Sites like

Face book, Twitter, and LinkedIn are influencing the way customers create, retain and nurture

a variety of social relationships, close friendships to acquaintances .Consumers today want to

be more informed about products or services before they make the any type of purchase.

Significantly, social platforms are very capable of informing and influencing purchase

decisions, as many users now trust their colleague or friends opinions more than the marketing

specialists. Customers have now the control to talk back at the brand and transmit their

opinions of the brand. Therefore, brands have no choice but to treat them differently and with

greater admiration (BASHER, Abu, 2013)

Pakistan Electronic Media Regulatory Authority (PEMRA) was formed back in 2002. The

main job of PEMRA is to keep a check and control at all sorts of networks including social

networks in Pakistan. The past few years have been quite different for Pakistani people as well

as the brands operating in Pakistan. Social networking sites are no doubt the best possible

options left for brands or businesses to reach the huge audience. Many companies prefer using

the social Networking sites to get the feedback from their customers and to bring the offers to

them, even to those who are not their loyal customers but by attracting the customers through

promotions on social networks , brands are being highlighted in the eyes of the consumers, and

the consumers’ expectations increases from those brands. the customers then want more from

them, and they share their views ,ideas through these social communities and pages. The best

part about marketing through these Social networks is that a one-to-one basis of interaction is

developed with the customers. Many customers find Social Networking sites the best way to

connect with a company regarding its products, service and even after sales service.

Without denying the fact that social network has taken the world in a new direction. Face book,

twitter, and LinkedIn have millions of users. Social network is a huge platform with huge

amount of users, and increasingly, branding tool. With this, many brands and businesses

connect together. Where there is advantages of the social network and brands are taking steps

ahead but, at the same time. Many brands are scared of the sensible downside of social network

as employees saying the incorrect thing, bad word of mouth; accidentally sharing information

3


publicly that should only be privately shared, negative things said by the customers, things

about their establishment, etc. And their concern is often genuine as employees and customers

often say negative things about a brand especially if they had a negative brand experience

(KELLEHER, bob, 2013).

Social networks now, without any doubt, the best promising choice left for brands to reach this

huge platform of users. Many brands have a preference using the social networks like Face

book, twitter, to get the feedback from their customers, so that they can bring the offers or any

advancement in products required to them. Through this research we will study about how

brands are being affected by the social networks, since brands now plays role in consumer’s

life.

Since, Social network has become an important communicating tool that is use to connect

people to other people or to brands etc. People use social networks to share their feeling

,emotions, reviews to friends and even views, ideas, tips to the brands .The brands takes the

reviews seriously to bring upon changes in their products, more innovations and that

information is a supportive source, which may influence consumer’s choice making. Many

surveys showed that users use information on social network as the guideline for their future

purchase or planning any expense related to brands. Also, social network is used as advertising

for the marketer. Marketers take the benefit and generate marketing strategy, which in return

could help the brands gain more customers. The social network environment is very easy to

apply and to reach the reach customer. These profit give persons ease to achieve what they are

looking for. Users tend to believe in what their friends recommend. Face book, Twitter, is the

most popular social media site that people share their life stories, their lifestyle, or even where

they went for trip or their last outing or last purchase of any brand. Posting information,

uploading images could lead their friends to do the same thing or use their information to make

decisions. ( (SEMA, patarwadee, 2013) According to survey, around 40% of small business

owners said that the increase of new customers via social networks most particularly through

Face book and LinkedIn. It is no surprise, that now all type of businesses are going to join

social networks, to not only increase their visibility but as a way to connect with their

customers. So that they can get the reviews of customers what they want from them (GLYNN,

4


jess, 2013) Group of people of all ages, can now easily finds what they want and their demand

for; they are now finding what they are looking for online. These days, social networks like

face book, is now the number one activity on the web. Not just face book but others network as

well.

With all the recent changes in social media and the implementation of limited search, local

businesses are seeing how important ranking in search is. Now, people search has changed,

they just search for the brands or the required product online through social networks.

Consumers have the ability now to search online through these social networks. Marketers and

brands know that purchases online begin with online searches, and social network is adapting

to meet this need. Through Brands fan pages, brands have more audience, more customers to

come and buy. The brands pages on social sites have emerged so much now, that every second

brand is advertising through it plus, consumer engagement has increased. People get some

news; they can read the reviews and specifications, make decisions by watching the pictures of

brands. After uncertain upon this hidden gem, all your friends love, and it is now all about

creating a relationship. That is where the social aspect comes in handy. Users easily now

search information through these pages to learn about what specials brand offers or what items

your loyal customers recommend. It is not just about face book that is being used more by the

people of every age but twitter as well, has also made a priority of local search .This attribute

let brands to create promoted offerings. When a follower expands the tweet the offer is shown.

Users also look for visual content. If there is a brand or any type of business, there is a need to

show some of the products and items. Get users interested, it is a great way to quickly grab the

attention of the consumer, if he or she is interested in the styles that those brands sell. They just

click the button and buy online. Customers read those positive comments on those posts,

updated information, and a large fan base is what is going to make the brands really shine.

Users’ visits to the pages also need to be able to get all the information they need. Brands

address, phone number and a link back to website are all necessary. And if one friend buys the

product, others friend also intends to buy because of the word of mouth. (GLYNN, jess, 2013)

Social network can build brand attitudes that affect buying behavior. The image of brand or

product can lead the consumer to make decision on their purchases. When consumer’s friend

5


on social network uploads, shares, or recommends services or products on their social network,

it affects brand attitude and influences their decision making. Up till now, advertising on social

network, affect both consumer brand attitudes and purchasing intention (YANG, 2012) From

that information, it helps marketers plan their marketing strategies. Many marketers use social

media for marketing promotions. The best and easy way to interact and communicate with

consumers; also it is inexpensive to advertise their brands or services. It is observed that now,

users mostly use more frequently the social networking sites than the corporate sites to search

for the information about any brands or products. (WORLDWIDE, Dei, 2008)

Social networks are not only for advertising, but it is also a tool for brands to connect with their

consumers. Social media allows customers and future consumers to connect straight to a brand

representative or ambassadors. Now most of the customers are using as a tool, to search and

purchase items, brands or businesses use this benefit to advertise their products. The online

consumer is a booming market all around the world. On the other hand, it is giving a globalized

level of segmentation (TICHINDELEAN, Vinerean Cetina &, 2013) If they have some

problems on products or services of the brands, customers could reach the company through

social platforms, which is an easy way to connect and get in touch with with them. Brands are

tested and challenged by how they chose to react to comments or responses on social networks.

Their response and made reactions can put together strong brand images and get more

consumers to purchase brands. When a consumer wants to make decision on product, every

single detail could be an influence to their decision making (SEMA, patarwadee, 2013)

The study shows that social network is gradually more a platform, consumers use to express

their loyalty to their preferred brands and products, and many look for to collect benefits from

brands for helping promote their products. Among those who share their brand experiences

through social network, at least 41 percent say they do so to receive at lower prices. When

researching brands, social network users are likely to trust the suggestions of their friends and

colleagues most, and results indicate that 2 out of 3 respondents said they were either highly or

somewhat influenced by advertising with a social situation (NIELSEN, 2011)

6


I chose this topic because of my particular interest in brands and advertising and relating

consumer behavior and how today world is is changing through the increase in social network

and how these social sites are affecting the brands. Since, social networking has gained so

much that every single person is using it as well companies have started marketing on social

networks. As my personal interest in social networking and brands I chose this topic to study

and how the brands then get affected, rise in consumer interest in brands through social sites

like face book etc, how brands sales gets affected, and how they advertise on social networks

now have become full marketing and have engaged consumer so much.

The study will be paying attention on the major cities of Pakistan such as Karachi as we can

find every type of a person here in Karachi, with different mindset to read, with various people

using social networks and brands are present here.

Social Media is everywhere but the question is whether it is worth making an effort. Every now

and then a new social networking engine is introduced. Companies are rushing towards these

as they see an increase in their revenue with their presence on the social media. This paper will

analyze exactly how the companies are marketing and what are the effects of this marketing as

customer service is the new marketing, like how brands offer new trends to its customers. We

would be looking at the ways customers are exposed to marketing strategies by focusing on the

customer service. The problems with the different social networking engines and the

opportunities that exist will also be analyzed in this paper.

Throughout this research, we will be able to know the brands how they get affected by the

social networks, and how businesses take it as an opportunity or a threat. Every now and then a

new social networking site is introduced. Companies are rushing towards these as they see an

increase in their revenue with their presence on the social media. This paper will analyze

exactly how the companies are marketing and interacting and what are the effects of this

marketing.

7


CHAPTER 2-LITERATURE REVIEW

The past few years have shown a sudden shift in the way communication is done. From a one-

one basis it has changed too many, many by updates on Twitter and statuses on Face book. The

users are now into those communication models that provide better mediums. Even though

telecom companies have been involved in social networking engines doing every sort of

marketing, but there is still a lot to be done. Marketing can be considered a backbone of any

company. It is the main thing that leads to a customer making the final purchase. Before any

function comes, the marketing function where a product or service is marketed to the customer

or a viral marketing promotion is used to ensure that the customers will come running after the

product (CLERE, 2010)). The question here is how can marketing be this strong and that took

on a social network? The answer to this question is hidden in the name of the marketing. It is

viral. It spreads like a wild fire and ensures that results will be in favor. Viral marketing is

defined as a marketing buzz that spreads from a person to another. The same way that

communication is done via the social networking engines. Not many social networking engines

existed before 2004. It can be said that the face of communication has changed over the years (

(ZARRELLA, 2009)

Now social communication has become persistent and is speedily becoming the chosen

interaction medium for the consumers. Their expectations are rising, for both speed and

relevancy. In order to meet these expectations, brands need to start laying the base now for

successful social communications. This means changing to a model that will facilitate them to

tackle and overcome social communication obstacles to meet these opportunity and, eventually

take business impact through social. Achieving direct and instant relationship to consumers is a

big chance, but it also allows more risk. On these social networks like face book, twitter or

LinkedIn, the conversation is publicly made, so care the brands look after the customers as

brands are handling potentially touchy customer conversations out in the open. But here the

other question arises, that how do you ensure you are getting it right? (FEVARON, Rod, 2013)

8


The motivational factor for consumers joining, brand following, product on social

networking platforms vary from consumer to consumers, from users to users. The

major motive, fans come to connect to a brand page or following the brands update or

information is through brand request, promotion and marketing followed by a friend call. The

search factor plays a significant part; therefore it is critical for brands to be found if consumers

search for them. Other motivational factor can be brand loyalty, that leads towards brand

follow up on the social networking platforms that can be face book, LinkedIn, twitter etc.

Brand loyalists are consumers who will market a certain brand,

talk positively about it among their friends. This is free word ofmouth marketing for the brands

and is often very effective. (BASHER, Abu, 2013) Some of the famous brands have done what

others have not, successfully used social media like Twitter and Face book to encourage buyers

from all around the world. This speaks volumes of their sales and revenues in countries like

Pakistan, where unaccounted for wealth and excessive spending results in higher profits for

these companies than ever before (TRIBUNE, express, 2013)

With the increase in social networking sites, many cellular companies moved towards making

devices that enabled internet to be used at a very fast rate. The change in machinery, skills,

knowledge has not only allowed the consumers but also the companies to gain access to

valuable information provided on these social networking sites. The companies in Pakistan are

no different from the companies of other countries. They also have to face numerous threats

every other day. The traditional way of one-way of interaction with the customers has changed

into many too many. Many companies at one point try to communicate to customers about

their products. Business is clearly all about networking. Making connections to be precise.

Social networking sites are a platform, especially for the companies and their customers. It is

one free and easy way of making profits. No matter what a company does it is all about profits

in the end. The return the company gets by interacting with so many customers at once. The

social network grows and eventually everything becomes viral on a network. That is more like

free marketing done by your customers for your company. Social Media provides companies a

way to interact with their audience in real time. This means the company is interacting with its

customer whenever and wherever they are.

9


Almost every other person can see how the marketing has changed over the time. From

constantly showing advertisements on televisions, companies are moving towards social

networking sites to market their brands. The function of social networks in modern marketing

is the need of time. Social networks have been playing a major role in connecting a company to

its customer, a brand to its consumers. About every brand has a presence on social networks,

mostly found on face book, twitter. Without that presence survival is difficult (EVANS, Dave,

2010). Because there is so much competition in the market that if one company or your brand

is not interacting or making relations with your customers, the customer can easily switch to

other brands. Various new brands, every day can be seen on these social networks promoting

themselves by offering promotions, discounts etc. According to (SIMON, 2012) a survey done

recently customers noted that they switched brand when there was a rude behavior from an

employee on social network, they had to stay for the service to be provided to them and when

they had to constantly follow up to see if the company has updated the information or not

(MAINWARING, Simon, 2012). These social sites use social media technology to connect

with people and build associations. Social networking sites allow persons to construct their

profile within an enclosed system, share with other users and view and pass through their list of

connections and those made by others within the system (ELLISON, Boyd &, 2007)

Consumers today want to be more informed about products before they make the purchase.

Above all, social platforms are extremely capable of informing and influencing buying

decisions, as many users now trust their friend’s opinions more than the marketing strategists.

Consumers now have the control to talk back at the brand and show their opinion of the brand.

Therefore, marketers have no alternative but to treat them in a different way and with greater

respect.

How the brand awareness is created by the brands on social networks and their advertising

attracts their customers to the products. Specified attitudes toward social networks, it is

possibly not shocking that, usually, consumers do not react fine to the idea of advertising on

social networks. Research reveals that overall, just a quarter are encouraging toward online

advertising, and opinions of social media advertising are on par with online advertisements

overall. This compared to almost half finding TV advertising acceptable. Since, consumers are

10


now spending so much time on them; online social networks clearly represent an opportunity

for advertisers. (BROWN, Milward, 2011) Given some consumer reluctance to embrace

advertising on social networks, and the lower than average click rates these advertisements

create, brands will require to guarantee their creative is relevant to the social environment in

order for it to be efficient. For the main social networks, likely face book, this atmosphere is

likely to be oriented toward connectivity, entertainment, and fun. Beyond advertising on social

networks, how else can brands legitimately build a social presence? Unless brands are

genuinely committed to building real relationships and sharing the space with consumers.

Brand awareness and advertising of brands, on social network is done by creating fan pages or

brands communities. Fan pages offer a route to enriching relationship with valuable customers,

as these already loyal customers are more likely than others to become fans. Through these fan

pages, there is more involvement of the consumer with the brands. Consumer commitment is

mainly appropriate in the case of social networks communication. Because social networking

sites are relationship centric and naturally participatory, engagement with social network pages

including those of a brand, naturally leads to the cultivation of meaningful relationships.

(ROUTLEDGE, 2013) Through these pages, users comments, express their feeling for brands

and views the images of the brands. And these experiences carry sometime significant weight.

The specific activities at the core of social networking have emotional meaning as well. Every

post represents a need to be recognized and acknowledged by those around us. Every comment

left or shared is, in part, a way of seeking validation. These underlying emotional factors a

sense of control, belonging, entertainment, validation, and recognition all shape the ways in

which consumers react to brands in social networks. These factors keeping in mind by the

marketers, as they attempt to engage consumers. In general, personal contact is a far greater

influence on purchase decisions than informal online sources, how to capitalize on word of

mouth, though sometimes recommendations, reviews, and shared experiences posted on

specialized networks carry significant weight. Nonetheless, even the general online sources can

be useful. Brand Personality is another factor that correlates with fandom. Brands that have

more fans tend to be seen as particularly creative, trustworthy, and desirable. A brand that has

11


this kind of personality might find it easier to attract fans. A brand is the intangible sum of an

organization’s attributes, which can reflect an organization’s name, history, reputation, and

advertisement. Searching engine interfaces contain branding elements. A brand can be

recognized as the identifiable symbol, sign, name, or mark that distinguishes an organization or

a product from its competitors.

Through these social networking sites, the brands improves their revenue plus customer

engagement by capturing the quick conversations between consumers to consumers, between

customer and brand, between brand and many other users through these social pages on social

networking sites. This social platform is filled with all buzzing customers, sharing their all

types of positive negative views, through this the brands reaches to what consumers want from

them, this is a positive way and effective way to interact with the huge audience that is your

customer. As the brands listens to the feedback provided by the customers and implement on

them accordingly. the asked questions are the opportunity for the brands from their customers

so that they can bring improvisations and educate and guide their path or track. (BRENNAN,

2010)

When it comes to that how the social networks helping the brands or the businesses then the

key word in the social networks and brands is conversation and communication, since

attracting customers by creating a social network is totally different than broadcasting

advertisements, or employing marketing strategies to convert targeted groups of consumers

into customers. Creating online conversations also requires a whole new ideas and skill set.

Social networking sites encourage brands to change their traditional marketing strategies and

focus on talking with clients, with the goal of developing and deepening the relationship

between the brand and customer. social networking gives brands the opportunity to present a

human face in the form of a social media representative ,an individual who can raise person to

person conversations which builds trust in the company’s authenticity as well as its

professionalism. (BROWN, lisa, 2011) But there is something else that social networking sites

offer, which no other public platform does: the ability to keep an eye on public awareness of its

12


brand, products, and services in real time. As a result, companies also have the opportunity as

well as the responsibility to provide a quick and effective response.

According to some report, the main working is done between brand and social networks are

that twitter is to get the news informs of the reporters so that the reporters can highlight the

news about the brands and keep updated, where as LinkedIn is the socia l platform where the

employees share or posts the scholarly articles with their customers. But when it comes to face

book, it is responsible for the brands social responsibilities. This brand fan pages provides the

brands opportunity to establish social media presence. (TOBY MERRILL, Kenneth Latham,

Richard Santalesa, David Navetta, 2011) No doubt, social network is the best way to interact

with the large audience, be it your loyal customers, or future customers or may be investors.

not only it provides the information about the products and services but it provides brands the

opportunity to hire more talented employees, the human resource people keep on checking

these platforms and make use of it, most prominently by face book and LinkedIn to collect

information when making hiring and promotions decisions. through the promotional activities

on social networks, the brands engages their customers with brands products. Word of Mouth

Marketing via Blogs companies provides their products to popular bloggers with big reader

audiences, hoping for a favorable review. (BROWN, lisa, 2011)

Therefore, good branding can result in customer loyalty and positive image of a firm’s

products and services. Social network plays a significant role in how consumers discover,

research, and share information about brands and products. In fact 60 percent of consumers

researching products through multiple online sources learned about a specific brand through

social networking sites. Active social media users are more likely to read product reviews

online, and 3 out of 5 create their own reviews of products and services. Overall, consumer

generated reviews and product ratings are the most preferred sources of product information

among users of social networks. ( (NIELSEN, 2011)While a good brand campaign will still

include this approach, the modern marketer must also seek to engage customers on Face book,

Twitter, LinkedIn, or any number of other social media or blogging platforms. The need to

13


engage has increased the marketing noise, if you will, on social networks to the point that

marketers, who in the past could rely on a formula to build brand, must now innovate

constantly, creating engaging content for social media users to interact with and consume.

Theoretical framework

Social

networks

Brand

Awareness

Word of mouth

Advertising

and Sales

Communication

and brand

recognition

Brand

engagement

14


AIMS, PURPOSE AND OBJECTIVES

OBJECTIVES

The objects of this research on the topic “social networks and their effects on Brands” are as

follows:

To identify factors those are affecting the brands through social networks.

To discover answers to questions by applying analysis of questionnaires.

To either gain insights into the phenomenon or gain familiarity with it.

To look for any new ideas and concepts.

To test the hypothesis in order to come to a conclusion.

To make recommendations to improve further studies in this field.

HYPOTHESES

H1: There is a positive relationship between social networks and brand awareness.

H2: There is a positive relationship between advertising on social network and sales.

H3: There is a positive relationship between the word of mouth and advertising on social

networks.

H4: Social network is positively related to brand recognition and communication.

H5: there is a positive relationship in consumer –brand motivation and social network

LIMITATIONS

Some of these limitations that were faced during this research were:

Access to information,

15


Lack of sufficient resources such as financial resources as well as time for gathering

data.

The sample size was also limited. One more limitation faced at the end was the

measure which was used for gathering data.

DELIMITATIONS

The information used in this paper is from a lot of web sources and books. It was also collected

from the respondents of the questionnaire. Even though it is as unbiased as possible, the

opinions in the study are mainly of the author. A lot of information from the online sources is

rephrased and included in this paper. The researcher has put every effort to collect as recent

data as possible and to keep this thesis as unbiased as it can be.

SCOPE

The study is confined to focus on brands and social networks only. It will broadly discuss the

social networking engines available in Pakistan and mostly are being used and the marketing

strategies that are used by brands on social networks to market to a global audience, using this

social network platform, the brands have revived and are establishing relationships with

consumers. The study will also cover the role of consumer involvement with brands pages and

communities on social networks as a new marketing tool in social media.

16


CHAPTER 3 – METHODOLOGY

PURPOSE OF THE STUDY

The purpose of this study is to analyze the different social networking sites. The other purpose

of this study is to see how marketing is being done using the social networking sites like face

book, twitter, LinkedIn etc. It will also be analyzed that how marketing is being done by

providing customer service, as how consumer are engaged in brands through these social

networking sites

AREA OF STUDY

Since, the topic I chose is social networking engines and their effects on brands or businesses.

Thus my area of study is advertising, consumer behavior and brands. The quantitative data will

be used to discuss the outcomes through bar charts, pie chart or percentages which will be

interpreted.

RESEARCH METHODS

The research methods will contain a questionnaire. It will be used to gather up the data on this

research topic. This is a quantitative research and involves connection. It is said to be

quantitative because of the research tool that will be used in the research as quantitative and it

is has large samples, wide respondents and involves the use of planned questions, where the

answers have been set and large number of respondents is involved in it.

I did not choose the qualitative data as qualitative research requires a lot of questions and that

open ended questions with a focus group or full in-depth, as well as contains individual

interviews face to face, through telephone etc. since the time is limited and considering

different cities, therefore limited resources and time constrained will not fit to qualitative

research.

17


RESEARCH POPULATION

In this study the research population will be general pubic of Pakistan, including the genders,

males and females. Doesn’t matter ,they may be of any age and ethnicity, as every age group

has a different approach which will help in understanding more easily and conveniently that if

they are in the support and agree or not of the social networking engines and their effects on

brands or businesses in Pakistan.

SOURCES OF INFORMATION

The data was gathered using a number of sources. The secondary as well as primary sources

were used. The details are given below.

Primary source

Primary data is the main source of data that must be analyzed properly and completely.

Questionnaires form a major part of the primary data and are mainly included under this

heading. Even though secondary data is available, it is still the main primary data that must be

analyzed. Primary data was collected from different individuals. No biasness was done in

collecting the data as the respondents belonged to different age groups and profession.

Secondary sources

The secondary sources used in data collection included online newspaper, articles, books.

Journals were also analyzed to get information out about the topic of this research.

RESEARCH DESIGN

SAMLING DESIGN

Target population: While conducting the research on “social networks and their effects

on brands” students of Masters and Bachelors programs were targeted from Karachi.

Element: Students including male and female both, of all programs i.e. BBA, MBA, BSC,

and BSS.

18


Sampling unit: Graduates i.e. Masters in Business Administration

Extent: Universities of Karachi, such as Bahria University, Karachi University, Fast

university etc

Sampling size: Data for this study were collected from 53 people online.

DETERMINATION OF SAMPLING SIZE

Variable: Since the research is conducted to see the effects of social networks on brands

Independent Variable: The independent variable is social networks

Dependent Variable: The dependent variable in this research is brands.

DATA COLLECTION

After filling the entire questionnaire, the filled the data was coded in software namely ,SPSS

for the further proceedings to conclude and obtain the results.

19


CHAPTER 4 – RESULTS AND

DISCUSSION

DATA ANLYSIS AND RESEARCH FINDINGS

Subject Demographics and Characteristics

.

H1: There is a positive relationship between social networks and brand awareness.

P = 0.000, Alpha = 5% = 0.05 , Mean diff =1.58491

At 5% significance level, the data provide sufficient evidence to conclude that there is a

positive relationship between social networks and brand awareness, therefore we reject null

hypothesis.

H2: There is a positive relationship between advertising on social network and sales

P = 0.000 , Alpha = 5% = 0.05 , Mean diff = 1.8367


positive relationship between social networks and advertising and sales, therefore we reject

null hypothesis.

H3: There is a positive relationship between the word of mouth and advertising on social

networks.

P = 0.003 , Alpha = 5% = 0.05 , Mean diff = 1.7424


positive relationship between social networks and advertising and word of mouth, therefore we

reject null hypothesis.

20


H4: Social network is positively related to brand recognition and communication

P = 0.000 , Alpha = 5% = 0.05 , Mean diff = 1.11981


positive relationship between social networks and brand recognition and communication,

therefore we reject null hypothesis

H5: there is a positive relationship in consumer –brand motivation and social network

P = 0.028 , Alpha = 5% = 0.05 , Mean diff = 3.3089


positive relationship between social networks and brand motivation, therefore we reject null

hypothesis

Data relating to stated objectives/hypotheses

1. Motivation behind following a brand or joining a brand page

Brand invitation 2 4%

Advertising 13 27%

Friend’s invitation 11 22%

Personal research 11 22%

21


Loyalty towards the brand 12 24%

Interpretation

It is found that about 27 % of the respondents agreed that brands advertise or they promote

their products or services through the social network. Most of the brands advertise through

social network because of advancement of technology, plus it covers a huge market of people

with different preferences, and it is also an easy and a cheaper way to advise their products and

services and internet is considered as the best way to spread the messages.24% respondents are

the loyal customers of the particular brand.4% people join a brand page is due to the brand

invitation where as 22% respondents follows the brand page because their friend invited as it is

also representing the word of mouth advertising being done, while 22% is the personal research

of the respondents to join the brands page on social networks.

2. Do you purchase a product or avail a service after positive feedback on social

network?

Yes 25 51%

No 8 16%

Sometimes 16 33%

22


Interpretation

51% people said they purchase a product or avail a service if they find a positive feedback

about it on social media. This means customer service is the new marketing. 33% said it

depends whether it is of interest to them or not. But a positive feedback definitely leads to

positive sharing whether product/service is used or not. 16% no they don’t go for purchase

right away.

3. What do you think about advertising on social network?

It is a good way to market to the relevant audience 37 74%

It’s not good as it lets the company access my personal information 5 10%

I don’t care as I do not look at the advertisements a lot. 8 16%

Interpretation

Social media provides options to the companies to target their audience by saving their

preferences. This feature lets the companies target the audience and display ads on the profiles

of the targeted audience only. 37% believe it is a good thing to see advertisements that they will

be interested in instead of looking at all of the.5% people believe that they do not appreciate a

company using their personal information to target them because it means their privacy is being

invaded with advertisements. 8% did not bother about advertising on social media at all.

23


4. Do you think social network has a positive influence on brand awareness?

Yes 35 70%

No 0 0%

May be 15 30%

Interpretation

Results have shown that about 70% respondents agreed that brands attempt to increase brand

awareness through social network websites. This shows that most of the companies use social

media websites to make their products aware to the customers. Through social networks,

brands builds awareness by promotional activities, giving discounts and other attractive offers

to make their brands to be recalled easily.

5. Do you think that the social networks have changed or improved consumer relations

and brand recognition?

24


Yes 41 84%

No 8 16%

Interpretation

84% of the respondents agreed that social network has a positive influence on brand

recognition as more the consumer’s interaction on social sites more the voices and more

reviews and critics on communities of brands, so they take them seriously and bring changes so

more interaction brings more recognition. It has improves the customer relations by

continuously updating brands fan pages on social networks, by interacting one on one with

their customers and listening to their ideas, comments be it positive or negative and to listen

what their customers expect from them.

6. Have you ever made any purchase because of its advertising on social network?

always 12 24%

rarely 32 64%

never 6 12%

Interpretation

25


24% respondents answer always that they purchase any brand because of its advertising done

on social network, where as 64% marked on rarely that it is not must to make purchase of that

brand which is advertise on social network, since there are a lot of brands being advertise now

on social networks and not every brand one has to buy. While 12% respondents answer that

they never purchase any item or brand that is being advertise on social network.

Discussion

The result of the research shows that it is strong evident that the social networks have become

the opportunity for the brands and a platform for the brands to interact with the huge audience.

The result shows that there is a positive relationship between the social networks and

advertising. Through social networks, brands can advertise themselves; they get variety of

customers to target and to advertise their brands and products by bringing up many promotions

and giving discounts. Through the online advertising and brands present on social networks

make the customer to purchase the brand, not only the loyal customers but also the potential

future customers. Users get to know about brands which they might even dint know previously.

The communication has increased through social networks, there are a lot of brands pages on

social networks like face book, twitter, LinkedIn that help in the interaction between the

customer and brands. accessing these social sites from mobile phones have given the users to

spend more time now and can access anytime, which gives the chance for brands to have more

users and customers. Users now can share many updates, opinions, and photos, through these

reviews the brands reads and take action to what their customers want more and new.

Therefore, through social network more communication is done and easily. With the increase

in users on these social networks and information the brand awareness has also increased. A

brands can share its information, upload pictures of the products, if they want users to join their

page they can invite them and through this the brands built their identity. Twitter and other

social networks like face book and LinkedIn, they allows engagement with the users and

customers in a viral way. Loyal and satisfied customers or users would re tweet messages that

they would love to recommend. Through constant and essential tweeting, the brand awareness

would be enhanced. A short, sweet yet sufficient message would serve as a great marketing

26


attention-grabber. Social networks have a positive relation with the brand recognition and yes,

social network can be used as a brand building tool, with social networks brands decide how to

position their brands, with consistent effort and build reputation for the brand and brand values

and advantages.

27


CHAPTER 5 – CONCLUSION

Summary of Findings

It is very important to have a look at the topic before providing the summary or to

conclude the topic. The topic was about social networking including most used networks that

includes Face book, twitter and LinkedIn, and how marketing is being done by the brand with a

focus on the aspect of customer service. It was analyzed that social networking engines provide

millions of customers for the brands and businesses. They also help in identifying the target

market with the preferences. It is the job of a brand to see how well they can use the social

network.

The literature review helped in analyzing the different aspects of social network. The

literature review of social networking engine gave a brief description as to what role the social

networking engine plays in marketing by analyzing all the brands available. Every brand

operating on the social networks have to realize the importance of customer service and its role

as a new marketing tool. All the brands on face book, twitter or LinkedIn have to advertise

their products, make creative decisions to bring up more innovative products. So that more

reviews available, views of the images for customer to whatever they want and more customer

oriented audience related to that brand (HEGGESTUEN, john, 2013)

Since all brands have its own unique personality and goals. Twitter or Face book, may not be

right for them. Brands that have small social network budgets can still achieve a high level of

brand awareness by focusing their resources on just one or two platforms. The platform choice

ultimately depends on what your brand is trying to achieve. it is not mandatory to focus on all

the social medium but by checking the pocket and then brands can look for what audience and

medium to focus on (OVA, Tony dan, 2013)It is recommended that companies use social

network as an opportunity for discovering what customers are really interested in,

what complaints they have and what ideas they might have for product development

(KORNAAT, 2010); (PICARD, 2011)As points of measurement it is recommended to get

28


insights about reach in terms of the number of consumers who really have conversations on the

brand and the content that the brand offers online , frequency and traffic in terms of unique

users and their rate of revisits , influence in the sense of real discussions

taking place on the brand between users, conversations and transactions as in do people really c

lick through on links that you offer or participate in the content and finally the durability of

their relationship (KORNAAT, 2010)

The questionnaire results were a true reflection of what the customers think. Many believed

that by providing a proper customer service online, it is easy for a company to market its

products. The companies who act online promptly are considered more respo nsible as

compared to others who are late to the market. All the hypotheses are accepted as the entire

hypothesis are true and this is concluded from the findings and by analyzing the questionnaire

filled by the students.

According to different studies many customers believe that any company marketing

online must realize that with so much of information coming in every second, a company needs

to be extremely fast and smart in responding to the customers. Just like a positive publicity,

there is negative publicity. For any company to create hype online it must ensure that all the

customers are happy. As the speed of sharing is increasing, so is the way customers are seeing

the company. It takes a second to change the perception of the customer. Companies s hould

know that the customer of today is well aware and prepared therefore a company must ensure

that they are well prepared before they enter any market be it social media.

Conclusion

For any marketer to reach global users, they can use any social network that they want

to. The jobs of social network specialists are increasing with every passing day and it is the

new field that has quite the hype in the market. But it takes a couple of responsible people to

go out there and create a positive image of the company. Marketing on social networks can be

29


done in two ways. Either the company can go for paid advertising or start a viral campaign.

The consumer behavior can be influenced only if a company understands the network and the

users properly.

The social network of consumers is the biggest marketer that a company can have.

Brands need to be present wherever audiences invest their time and attention. Increasingly, that

means social network. Brands and businesses that are hidden on social networks will fail to

spot at engagement that their competitors might grab. More significantly, there are already

well-known cases of brands that successfully revived their image or launched themselves,

thanks to social network.

Research has determined that retailers can increase awareness of their brand by being creative

when engaging customers on social media sites. As more shoppers are using social media for

example Twitter, Face book, and LinkedIn and rely on them for marketing shopping decisions,

promotion through these media has become important ( (AL, Shankar et, 2011)). According to

( (AL, Curran et, 2011)social media sites such as Face book are better than other advertising

avenues because it stores information on all its users thus ensuring marketing reaches a

retailer’s specific target market. Social media sites are a great stage for retailers to create an

experience and retailers can use information stored on social media sites to improve user

experience with their brand.

Some of the opportunities that social networks offer to the marketing communications of

brandsare potentially very large communities of interested consumers (FANLIST,

2012)an opportunity for effective interaction with customers ( (DRURY, 2008); (AL, Kaplan

et, 2010); (PICARD, 2011; KORNAAT, 2010); (PICARD, 2011)as well as an opportunity for

discovering what customers are really interested in, what complaints they have and what ideas

they might have for product development ( (KORNAAT, 2010); (PICARD, 2011)Additionally,

(AL, Mangold et, 2009)as well as others (AL, clow et, 2012); (AL, De Pelsmacker et, 2010)),

stressed the possibility that social network can and should be used as a tool to create positive

Word of mouth. Also social networks seems to be a good medium to organize special

30


promotions for fans as this seems to be highly appreciated ( (AL, clow et, 2012). Additionally,

emphasized the relative lower cost of social network than can be achieved with old media.

(AL, kaplan et, 2010) Add that this offers an opportunity for small and medium sized firms,

not-for- profits as well as governmental organizations

According to a study, the friends of a consumer on social network have the power to influence

a customer to make the purchase (IYENGAR, Raghuram et al., 2009). For some companies it

might be the biggest thing to market on social network by according to few authors, social

network launch is the worst thing that ever happened to the marketing area. The marketers do

not consider the target market instead they consider anyone and everyone to be their target

audience. According to traditional marketing techniques, a company had to identify, segment

and then target. In social network it is about targeting, then segmenting and finally identifying

(GOLDFAYN, Alex, 2012). It may be easy for companies to engage their social network

marketers in a conversation with their customers and know what they feel about their brand,

but it may not be the right opportunity. Talking to a customer on phone and having a real

conversation is different and brings in totally different results (C, Eridon, 2012). It will take a

lot of time before companies will come up with a marketing plan based just upon the social

networking engines, for now they are a substitute and will just be used as a way to please the

customer online to refrain him from spreading negativity about the company.

Recommendations

Following are the few recommendations for the companies using social networks for

marketing purpose.

1. It is always a good idea to create a proper plan before launching the prese nce on

social network to avoid any sort of mistakes that can turn the company into a

disaster.

31


2. Social media is much more powerful and companies may not realize it but customer

is the in charge here and therefore keeping all the customers happy all the time is

the key to success.

3. Monitor social network website by hiring social media specialists to ensure there is

no negative hype that will put an end to social networking for your company.

4. Think before you write on the network because it is easy to share on social network

and within seconds millions will have access to information that is online.

5. Whenever a company plans to implement a viral campaign they must think it

through. They must at least predict the end of that campaign and results. Everything

needs to be planned before it goes online on the network.

6. Companies must realize that keeping all the customers happy can be the main key

to success on social network. Customers are the new marketing tool as they will

spread good word of mouth about the company.

7. Company must use the social network that suits them. Jumping into the world of

social networks also needs a well thought out plan that needs implementation.

32


Bibliography

Brennan. 2010. improving revenue and custoemr engagement with social media., p.13.

Brown, lisa. 2011. “The New Conversation:Taking Social Media from Talk to Action”.

Harvard Business Review.

Brown, Milward. 2011. how should your brand capitalise on social media.

C, Eridon. 2012. 11 Ways to Make Social Media Marketing Less of a Time Suck. Retrieved

November 22, 2012, from hubspot: http://blog.hubspot.com/blog/tabid/6307/bid/33438/11-

Ways-to-Make-Social-Media-Marketing-Less-of-a-Time-Suck.aspx.

Clere. 2010. Social Media in Telecommunications. lulu.com.

Eridon, Corey. 2012. 11 Ways to Make Social Media Marketing Less of a Time Suck.

Available from World Wide Web: <http://blog.hubspot.com/blog/tabid/6307/bid/33438/11-

Ways-to-Make-Social-Media-Marketing-Less-of-a-Time-Suck.aspx>

Evans, Dave. 2010. Social Media Marketing: The Next Generation of Business Engagement.

Wiley.

Goldfayn, Alex. 2012. 5 Reasons Social Media Is Ruining Marketing Available from World

Wide Web: <http://mashable.com/2012/09/07/social-media-bad-marketing/>

Heggesuen, john. 2013.

Iyengar, Raghuram, Sangman HAN, and Sunil GUPTA. 2009. Do Friends Influence Purchases

in a Social Network? Harvard Business School.

Mainwaring, Simon. 2012. Why social media means customer service can make or break your

brand. Available from World Wide Web: <http://simonmainwaring.com/brands/why-social-

media-means-customer-service-can-make-or-break-your-brand/>

Routledge. 2013. Motivations ans antecedtns of consumer engagemnt with brand pages on

social networking sites. journal of advertising., p.13.

Sema, patarwadee. 2013.

Tichindelean, Vinerean Cetina &. 2013.

http://blog.hubspot.com/blog/tabid/6307/bid/33438/11-Ways-to-Make-Social-Media-Marketing-Less-of-a-Time-Suck.aspx

http://blog.hubspot.com/blog/tabid/6307/bid/33438/11-Ways-to-Make-Social-Media-Marketing-Less-of-a-Time-Suck.aspx

http://mashable.com/2012/09/07/social-media-bad-marketing/

http://simonmainwaring.com/brands/why-social-media-means-customer-service-can-make-or-break-your-brand/

http://simonmainwaring.com/brands/why-social-media-means-customer-service-can-make-or-break-your-brand/

33


Toby merrill, Kenneth Latham, Richard Santalesa, David Navetta. 2011. The Business Benefits

May Be Enormous,But Can the Risks,Reputational, Legal, Operational Be Mitigated? social

media., p.13.

Zarrella. 2009. The Social Media Marketing Book. O'Reilly Media.

34


APPENDIX

Please identify your age group

Less than 18

18-24

25-39

40-60

Please identify your gender

male

female

what are top used social networks

face book

twitter

linked In

other

Time dedicated for socializing through social networks

More than 5 hours

Three or four hours

Less than three hour

One or two hours

Motivation behind following a brand or joining a brand page

Brand invitation

Advertising

35


Friend’s invitation

Personal research

Loyalty towards the brand

Why do you use your particular social network?

To keep in touch

To form professional network

To discover about new products and services

To promote a brand

To get feedback regarding a product or service

Considering social network in buying decision of brands

Always

Most often

Rarely

Never

How do you perceive marketing on social networks

Useful

Very useful

Somewhat Useful

Unbearable

Do you purchase a product or avail a service after positive feedback on social network?

Yes

No

Sometimes

36


Do you believe that brands have gotten better because of social media?

Yes

No

Do you believe that social network marketing is more effective for brands?

Yes

No

Sometimes

How would a negative feedback on social network affect your perception of a brand?

I will start doubting the brand

I will do more research and consider other social network

It would not change my perception at all

Do you believe social media is the best way to interact with a brand?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

What do you think about advertising on social network?

It is a good way to market to the relevant audience

It’s not good as it lets the company access my personal information

I don’t care as I do not look at the advertisements a lot.

Do you think social network has a positive influence on brand awareness?

Yes

37


No

May be

Do you think that the social networks have changed or improved consumer relations and

brand recognition?

Yes

No

Does your opinion of a brand change if it has no presence on social networking sites?

Yes

No

Benefits of using social networks sites for brands

Increase exposure

Wide market place

Grown business partnerships

Develop loyal fans

Improved sales

Reduced marketing expenses

Do you follow only known brands?

Yes

No

Both

Have you ever made any purchase because of its advertising on social network?

always

rarely

38


never