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Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

In this chapter we introduce to the reader the research area by presenting a

snapshot of social media marketing and conventional marketing practices in the

background section of the study. The new challenges for marketers and

opportunities for business establishments are incorporated in problem discussion

which tries to build a foundation for the consequent purpose of the study and

research questions.

Social Media Marketing (SMM) on sites like Facebook, Twitter,

Stumbleupon and Digg has exploded in the past year. But what exactly is it? And

what’s in it for you?

How Social Media works? When a user of a social media website

discovers your story and likes it, they have the option to share it with their friends.

This can cause the story to 'go viral' and be shared with even more people. This

can deliver hundreds of thousands of visitors, launch a website or new product

and bring significant inbound links. Those inbound links will directly bring your

site visits and indirectly help your SEO. Your social media marketing can support

your search engine optimization (SEO) by including target keywords in headlines.

Then when your story goes viral and other sites use your headline to link back to

your site – Bingo! - you get keyword-rich inbound text links.

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Social Media Marketing is bigger than TV, radio, newspapers, magazines

and books. 18-34 year olds now spend 4.3 times more time on social media than

with TV, radio, newspapers, magazines and books combined. This is happening

because social media allows users to talk to each other (which they prefer to being

talked to) and choose for themselves what they see and read. Social media is a

many-to-many conversation and not a one-to-many communication.

Facebook is growing faster than Google ever did. Facebook is the biggest

social site with over 250 million users. It took Google ten years to reach 50

million users – something Facebook achieved in just 19 months. Facebook is the

world’s online scrapbook and meeting place in one. Friends, customers, stars,

fans, and anyone who crashes the party use Facebook to stay in touch, swap

photos, pay homage and talk to each other.

Twitter might be the ultimate networking site. Twitter is a microblogging

site on which each post is no more than 140 characters long. Friends, colleagues,

admirers and the interested all ‘follow’ each other and can read each others’ posts.

The result is a collection of thousands of different conversations and mini

monologues. This can seem like a mad mess but that chaos is like the hum of

chatter at a lively party - narrow your focus and you find that people are amusing

each other, helping each other, sharing ideas, making connections and doing

business.

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Social media are media for social interaction, using highly accessible and

scalable publishing techniques. Social media uses web-based technologies to turn

communication into interactive dialogues. Andreas Kaplan and Michael Haenlein

also define social media as "a group of Internet-based applications that build on

the ideological and technological foundations of Web 2.0, which allows the

creation and exchange of user-generated content." Businesses also refer to social

media as consumer-generated media (CGM). Social media utilization is believed

to be a driving force in defining the current time period as the Attention Age. A

common thread running through all definitions of social media is a blending of

technology and social interaction for the co-creation of value.

People gain information, education, news, etc., by electronic media and

print media. Social media are distinct from industrial or traditional media, such as

newspapers, television, and film. They are relatively inexpensive and accessible

to enable anyone (even private individuals) to publish or access information,

compared to industrial media, which generally require significant resources to

publish information.

One characteristic shared by both social media and industrial media is the

capability to reach small or large audiences; for example, either a blog post or a

television show may reach zero people or millions of people. The properties that

help describe the differences between social media and industrial media depend

on the study. Some of these properties are: First, Reach - both industrial and

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social media technologies provide scale and enable anyone to reach a global

audience. Second, Accessibility - the means of production for industrial media are

typically owned privately or by government; social media tools are generally

available to anyone at little or no cost. Third, Usability - industrial media

production typically requires specialized skills and training. Most social media

does not, or in some cases reinvent skills, so anyone can operate the means of

production. Fourth, Recency - the time lag between communications produced by

industrial media can be long (days, weeks, or even months) compared to social

media (which can be capable of virtually instantaneous responses; only the

participants determine any delay in response). As industrial media are currently

adopting social media tools, this feature may well not be distinctive anymore in

some time. Fifth, Permanence - industrial media, once created, cannot be altered

(once a magazine article is printed and distributed changes cannot be made to that

same article) whereas social media can be altered almost instantaneously by

comments or editing.

The most popular platforms include: Facebook, YouTube, LinkedIn,

Twitter, MySpace, Reddit and Delicious.

“Social Media: A New Era of Marketing” was one of the popular hits

found on Google when looking for the phrase “Social Media Marketing”.

More than 400 million users are active on Facebook today, fifty percent of

them use the platform on any given day and for a total of 700 billion minutes per

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month. Each user is connected to an average of 130 friends, which means that if a

company induces one person to post something about their brand they have the

potential of reaching 130 more persons. There are over 160 million objects that

people interact with (i.e. pages, groups, and events). An average user is connected

to 60 pages, groups and events and creates 70 pieces of content each month. More

than 25 billion pieces of content (i.e. web links, news stories, blog posts, notes,

photo albums, etc.) are shared every month. Facebook have a very wide global

reach, more than 70 translations are available on the site, about 70% of the users

are outside the United States, and over 300,000 users helped translate the site

through the translations application, which means that language differences are no

longer hindrance of communication. There are more than one million developers

and entrepreneurs from more than 180 countries. More than 70% of users engage

with Platform applications every month, more than 550,000 active applications

currently on Facebook Platforms, more than one million websites have integrated

with Facebook Platform and more than 150 million people engage with Facebook

on external websites every month. Two-thirds of comScore’s U.S. Top 100

websites and a half of comScore’s Global Top 100 websites have integrated with

Facebook. There are more than 100 million active users currently accessing

Facebook through their mobile devices. People that use Facebook on their mobile

devices are twice more active on Facebook than non-mobile users. There are more

than 200 mobile operators in 60 countries working to deploy and promote

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Facebook mobile products. These statistics speak for themselves, and one can

understand why companies around the world are drooling over the endless

marketing possibilities presented by the Facebook Platform.

However, the attractiveness of Social Media as marketing platform is not

only to be understood in terms of statistics. The way businesses promote their

products and the marketing strategies used for their brands to be known to the

market is evolving, a never ending change in which social media is playing a

central role. All of us are familiar with the old fashion and usual marketing

technique used by some companies, like the last time wherein a salesperson called

and interrupted your lunch. Consumers are also evolving, following with the

current trends, learning how to screen innovative and disruptive communication

attempts, which is why this way of marketing is being replaced by the more

modern, advance and technologically based form of permission marketing. The

advertiser is no longer the one who decides when, how, and to whom to

communicate. Nowadays, it is the consumer who decides which company and

what information to take part of.

The younger consumers are the most proactive when it comes to this new

way of gathering, screening and spreading information over the Internet. It is the

younger segment that is most active on social media and also the most difficult to

reach in the increasing media buzz. In the Philippines, there are 14, 600, 300

registered users on Facebook, making our country in its 2nd place in Asia, and 8th

38% and 25-34 with 23.You shouldn't be trying to force people into purchasing your product or service.93%. Don't forget to track the number of responses you are getting from whatever method you use. You should find people who want your product or service and then focus on offering any helpful information to them so that they can make an informed decision. you're not targeting anybody. and fastest marketing channel to reach the younger consumers.If you're trying to target everybody. 7 place in the whole world.One great way to save money is to stop wasting it on marketing and advertising that isn't producing for you. Instead of Selling . Facebook is thus very attractive. and set goals and deadlines. These are vital to your business success. then your strategy needs to be revised. Focus on Helping. Focus on Benefits Not on Features . Stop Spending Money on Ineffective Marketing . State your goals as specific numbers. Network . and specifically interesting and cheaper for start-up companies that do not have an extensive marketing budget. An honest practitioner who puts the following marketing practices to work will become successful in the all around arena of private practice. Target .Networking is a great way to get your message out to a large number of people. useful.Collect your thoughts for a moment or two. for free. If you're not reaching your goals.Spend your . State your target clearly in all of your marketing materials. then chances are. The two dominant age groups are 18-24 with 44. Set Goals and Deadlines .

Offer to be a Speaker . Distribute Samples . Submit simple. . and least expensive.Persistence is power when it comes to increasing your sales and profit. for free. . Distribute Informative Literature . problem/solution type articles related to your product or service.If possible. features and ideas into the hands of your prospects. Submit your press releases to a wide variety of publications for immediate release. People like to try before they buy. Follow-up with these prospects in a timely manner to attempt sales conversion. State the problem. Give a Free Demonstration .Press releases are a very cost-effective way to get your message out to many people . Most sales are made after the seventh or eighth contact--the sale is rarely made after just one contact.Business and civic organizations are always looking for speakers for their meetings and get togethers.Newspapers and other publications are always looking for helpful tips articles that would be of benefit to their readers. . and then share some insightful tips that can help to solve the problem.Make sure that you get your product benefits. Make yourself available by contacting these groups and offering to talk about your area of expertise. Write Tips Articles .If possible. Use the Telephone . Far too many firms fail because they don't follow-up long enough to produce results. give free demonstrations of your product or service to those that might be interested. 8 time focusing on how your prospects will benefit if they purchase your product or service.The telephone can be one of your most effective. Be Persistent . Submit Press Releases . get samples into the hands of people who may be potential customers.

send them a card or small gift." "my. Have Fun . You will succeed far better when you're doing something that you love.Getting your message into the marketplace is important." "me. Ask for a few minutes of their time so you can show them how your services can help them save time. If you know of an event that your prospect or customer will be celebrating. Call people who you would like to do business with. Tell Your Prospects and Customers What to Do . Rather than using the words.Whenever an existing or potential . letters and sales literature are filled with words.Most company publications. Send them helpful articles that you think would interest them. 9 sales tools.Take an interest in your prospects and customers. Talk about your customers needs instead. Don't forget to graciously thank anybody who refers your business to someone. Generate Referrals . ads. photographs and information that do nothing more than toot the company's horn." Develop Customer-Oriented Relationships . Proactively ask for referrals from existing customers. Don't just wait for people to refer you. acquaintances.Frustration and stress will slow you down.Referrals are a great way to generate new business. increase sales. family and friends. cut costs. They will appreciate your generosity and will think of you when they need your service. etc. Tell your prospects exactly what you want them to do next. such as an anniversary or birthday. but getting prospects/customers to respond is the real test." use "you" and "your. Talk to Your Customers About Them and Their Needs . "I. or if they know someone else who may need your service. Take Advantage of Testimonials .

black ink on white paper could work just as effectively as expensive four-color materials. spend less time worrying about the graphics and colors.When developing your sales materials and literature.Your customer is not going to work for you. Form Second. That way you'll be sure to reap the maximum rewards. Do anything you can to make doing business with your company easy and a pleasure. Learn a New Marketing Technique Every Day - Read. Believe in the Product or Service You Sell ." Listen carefully to your prospects and customers so you'll know exactly what they want and be generous in your offers. "You can get everything you want. Give to Get . ask them if you could use their statement in your marketing materials. Present the benefits of your product/service with . Content First. Your company's credibility will increase with the use of testimonials from happy customers. Continuously improving your sales and marketing skills will help you to increase your sales and profits. 10 customer says something positive about your company.If you don't believe in the quality and benefits of your product and service.Talking to and learning from people who are always striving for and meeting their goals. and more time working on the content -. Successful People .what's in it for your customers. your prospects won't either. listen to audio tapes. by helping enough people get what they want. You have to work for them. go to seminars. Make it Easy for People to do Business with You .There's an old saying. As long as your message is enticing. will help you commit to and achieve your own objectives. Associate with Positive.

as well as references. We also want to know which marketing approach enables business establishments to maintain better relationship with their customers. The fastest way to gain that knowledge is to find someone who knows what works and has done it successfully. that allow you to learn and apply effective marketing systems at your own pace. can be excellent resources.Marketing is an important skill based on both knowledge and experience. We want to determine the choice of social media as a marketing tool among business establishments. Build a relationship so that a prospect becomes a repeat. like books. . courses. newsletters. or testimonials. Our study will also determine the comparison between prevalent marketing practices and social media as a marketing tool among selected business establishments in Quezon City. And lastly. Ask about his or her specific experience in generating marketing results. we want to know whether or not it is the right time for business establishments to adapt social media marketing practices. audio cassettes. Reasonably priced marketing materials. Focus on the Lifetime Value of Your Customers - Don't focus on generating one-time customers. Learn from Someone Who Has Experience . workbooks. 11 confidence and enthusiasm. We also want to determine which of the two types of marketing (Traditional Marketing Practices and Social Media Marketing) is more effective in terms of targeted segment coverage and expenditure. etc. lifetime customer.

Conventional media is company-generated and information flows in one direction i. people and peers”. influenced by the increased role of information technology (IT) in consumer lifestyles which has led to a consumer dominant marketplace (Jim Blythe. The former drove the market by aggressive promotional strategies while the latter exploited closeness to consumers (Schultz & Schultz 1998). The rise of new social media can be seen from the fact that in first decade of 21st century several words from social media have entered lexicon as word of the year such as “Blog” (2004).e. It is the shift from a broadcast mechanism to a many-to-many model. “Facebook” (2007) and most recently a verb . “Podcast” (2005). Social media is defined as. messages are broadcast from company to target audience (one-to-many) and in social media (many-to-many) in multiple directions. rooted in conversations between authors.. 2009). new media or citizen media (Rob. transforming people from content readers to content publishers. 2009). “The democratisation of information. 2006) and in the new landscape “consumer really is king” (Rob. 2009). 12 Background of the Problem In hindsight it becomes clear that marketing has undergone two notable changes in the past few decades. Social media is interactive in nature and is therefore known as consumer-generated-media. Dave Evans in his ground breaking study (2008) defines social media as. while the second by retailers. rather than from traditional institutions like corporations” (Charlene. “A social trend in which people use technologies to get information they need from one another. The first phase was predominantly driven by manufacturers. Ever since then marketing has entered a third phase.

Small firms are moving from conventional marketing practices such as television advertising. Alternately. Most marketers intend to increase marketing budgets to Social media by a whopping 77%. marketers plan to increase spending on conventional marketing only by 13% in magazines. and Search engine marketing 59%. magazines. Communication professionals. Web advertising 73%. public relations (PR) and relationship marketing towards more affordable and interactive social media marketing. 9% increase on radio advertising. radio. newspapers. word of mouth marketing (WOMM). These changes have created several opportunities for micro firms to adopt social media marketing as they are often cash-strapped and lack marketing expertise for carrying out expensive marketing campaigns. and a dismal 7% raise in newspaper advertising. but applied on Social . We researched about a qualitative study showing how Social Media Marketing sites enhance the perception of brand associations and traditional communication effects. And found out that Social Media Marketing site is an effective marketing tool. business marketers and company owners praised social media as the future marketing channel and that thesis had gave us the idea of performing a similar study. 13 “Unfriend” which means to remove a friend on social network site (SNS) such as Facebook was chosen as the word of year 2009 by New Oxford American Dictionary. A joint survey conducted by Forrester and the Association of National Advertisers (ANA) in the United States demonstrate the importance of social media as it depicts how marketers plan on advertising spending in 2010.

and well aware of the platform being the greatest worldwide. we believed to have found the subject for our thesis. Social Media Marketing is still one of a fairly young communication platform and there are not that many studies concerning its effectiveness as means of marketing. As Marketing students. Online selling example in Social Media Marketing sites. we believed that a practical guide explaining how small businesses could build their brand at practically no cost at all would be a great value for many. does not have enough capacity to experiment or be creative enough to sell products and interact with their customers. Finding out that there is still no accurate research had been previously conducted exploring the effectiveness of Social Media as a marketing medium. Selling online doesn’t help entrepreneurs to enhance their ability on promoting their products and being persistent to get their target markets. 14 Media Marketing sites. being passionate about the latest and current trends of marketing a product. Fan pages are also one of the useful medium on promoting or advertising products and sites. Online selling differs from person-to-person selling. Creating fan pages should also have business strategies and the brand of the product should communicate with their consumers. People just come to your site and expose to a one-way reading of your message and scanning flyers or pictures of the products which on the part of the seller can be impersonal. sellers don’t have the opportunity to interact personally to their consumers. Building loyalty and getting .

these results have yet to be tested.2008). Social media marketing has created new challenges for advertisers. This debate has been supported fuelled by extensive research and according to several studies. as well. there has also been a debate concerning the effectiveness of Traditional Marketing Practices versus Social Media Marketing. Erlandsson and Modig 2010). online sellers are prone to “bogus-buyers” . As mentioned above. 15 trust from your consumers is also one problem to consider. 1995. We also want to provide what is the appropriate approach when targeting the consumers. Recently. Some consumers are hesitant to shop online because they probably think that it is a scam. Theoretical Framework An interesting way to describe social media marketing is to compare it with conventional marketing practices. traditional approach is to be preferred (Colliander. vice versa for the sellers. Sasser and Koslow. The contribution of this study is thus to provide whether Social Media Marketing shall be used for marketing purposes and give them useful insights and information regarding on its effectiveness. Due to the increasing popularity of rapidly . Social Media Marketing is fairly a new marketing communications channel and has not yet been fully explored. (Kover and Goldberg. The study will hopefully also contribute with some qualitative evidence to debate concerning the effectiveness of Traditional Marketing Practices and Social Media Marketing. However. companies and strategists.

Advertising activities on social media sites are however increasing. Having been exposed to so much advertising. Social Media Marketing is yet highly unexplored by the marketing research community and many questions on its marketing effectiveness still remain unanswered. These “mental barriers” are a necessary reaction of consumers to the increased advertising noise and that marketers must find new ways to break through these barriers. increasingly difficult for companies to stand out and get consumers to pay attention to their company. This can be explained as social media sites offer brands the means to . 2006) and had developed what Blackwell (2001) calls selective attention. marketers are today looking for ways to engage consumers and interact with them (Meadows-Klue 2007).500 brand-related messages (Lucas & Dorrian. Instead of interrupting consumers and trying desperately to control consumer perceptions. Every day we are exposed to about 1. consumers have learned to recognize and recall any attempt of persuasion (Friestad & Wright 1994) and that is why the old form of interruption marketing has been replaced by something new(Godin. even if its effectiveness and its effects on brand perceptions are still uncertain. 1999). or advertising skepticism. In this new marketing landscape advertisers must surprise consumers and adopt methods around which mental barriers have not yet been developed. 16 evolving social media marketing worldwide it would be interesting to know that whether it is the right time for small firms to adopt the social media bandwagon. In other words.

thus being very receptive. Different prices can be charged. the Internet – may be used. there are many possible ways to satisfy the needs of target customers. magazines. colors. 17 interact with consumers in a communication that is no longer single-tracked. flyers. Price discounts may be . The purpose of our thesis is to compare and contrast conventional marketing practices with social media marketing in the context of micro firms and then suggest these micro firms as which tools are more suitable for them. television. A company’s own sale force or other sales specialists can be used. A product can have many different features and quality levels. Various advertising media – newspapers. radio. a two-way communication that has been proven to be very effective (Kocken and Skoghagen 2009). According to McCarthy and Perrault Jr. or materials. billboards. Furthermore it is the consumer that comes to the brand when marketing via fan pages and news feeds. The package can be of various sizes. The advertiser can instead engage consumers in a dialogue. (1987). In the back drop of all this hype about social media as a marketing tool we got the clue to find the right tools of marketing for these cash strapped micro firms regarding the choice of conventional tools and social media as a new marketing tool. With this in mind we can assume Social Media Marketing to be one perfect modern marketing platform. Service levels can be adjusted. Conceptual Framework Micro firms are always short of money and money is spent on activities that can bring maximum benefits to the firms. The brand name and warranty can be changed.

Place. the question is: is there any way of simplifying the selection of marketing mixes? And the answer is yes. marketing managers must also decide the right Price. they must consider the kind of competition in the target market. Promotion includes personal selling. The product area is concerned with developing the right ‘product’ for the target market. In addition to developing the right Product. and so on. mass selling. With so many possible variables. they also must know current practices as to markups. They must also try to estimate customer reaction to possible prices. and Promotion. Place and Promotion. and sale promotion. and other terms of sale. Personal selling lets the salesperson adapt the firm’s marketing mix to each potential customer. This offering may involve a physical good. discounts. Personal selling involves direct face-to-face communication between sellers and potential customers. Promotion – is concerned with telling the target market about the right product. or a blend of both. In setting a price. Further. 18 given. they must be aware of legal restrictions on pricing. Besides this. Price. It is useful to reduce all the variables in the marketing mix to four basic ones: Product. A product reaches customers through a channel of distribution. If customers will not accept the . Place is concerned with getting the ‘right’ product to the target market’s place. a service.

But is any one more important than the others? Generally speaking. it is therefore the objective of the researcher to come-up with a marketing tool that business establishments can use. since most customers prefer a direct selling because they can easily acquire the product compare to online shopping which take time to deliver the product. Despite how good the quality or well- known your product is. Given the concept regarding marketing mix as presented above. But marketing and pre-selling here is not easy. they should also be tied together. all of the planning effort will be wasted. When a marketing mix is being developed. That is why four Ps arranged around customer C in a circle – to show that they all are equally important. So. Social Media Marketing has all the potential to be one of the best market place for a company who wants to sell their product online because social media sites are well known around the globe. . In the case of the present day study. It is not just a matter of showing a good product because it will not sell itself. one can see that Price is important for a marketing manager. the answer is no – all contribute to one whole. All four Ps are needed in marketing mix. you will find difficult and challenging to sell your product. all decisions about the four Ps should be made at the same time. In fact. 19 Price.

This is labeled (2) in the research paradigm. First. is the Marketing Practices of Business Establishments. Specifically. . Second. it present how the study progresses. pertains to the interview among business establishments. which is labeled (3) in the paradigm. These are two main areas to be described in this research. 20 Research Paradigm Figure 1 illustrates the research paradigm of the study. This is indicated by the cylinder figure. The outcome of the study is to develop a Marketing Tool for business establishments. Figure 1 Research Paradigm The paradigm illustrates the operational concept of the study. which is labeled (1).

Which marketing approach enables business establishments to maintain better relationship with their customer? 3. Whether or not it is the right time for business establishments to adapt social media marketing practices? Research Hypothesis There is no significant difference in the factors considered in the measurement of the qualitative effectiveness of Traditional Marketing Practices and Social Media Marketing. For that reason many companies entered Social Media Marketing and used it as an alternative source of advertisement because they believe as social media sites . 21 Statement of the Problem The study seeks to determine the choice of social media as a marketing tool among business establishments. because of its popularity many people tends to use it as a means of communication. Significance of the Study Social Media Sites were use as means of communication. Which of the two types of marketing is more effective in terms of targeted segment coverage and expenditure? 2. Specifically it seeks answers to the following questions: 1. The study also seeks to determine the comparison between prevalent marketing practices and social media as a marketing tool among selected business establishments in Quezon City.

College of Business Administration. it will give them techniques on how to communicate with different people among other country’s. The popularity of Social Media Sites to all the web surfers and web browsers will give interest to the business investors choose the site to be one of their advertisement instrument. Business Investors. Marketing Students. 22 popularity occur. This study will give the faculty members additonal information about web marketing business werein they can apply or use in their class disscussion especially to the faculty members. This study tends to supplement the CBA students wisdom about the world of business and how to construct business strategies which they can use in their future carreer. many people can see their product and get more customers. Social Media Marketing will be a good source of products selection to the consumers. Trinity University of Asia. In here. . This study will give marketing students knowledge on how products being advertise and by the use of Social Media Sites. consumers can identify the right products of their best that will suite their needs and taste. This study will serve as a guide for future students of Trinity University of Asia in making of their thesis. In this study we determine on how effective of Traditional Marketing Practices and Social Media Marketing through individuals. Faculty Members of CBA. Product Consumers.

they will be analysed according to the marketing tool used. Thus. we have tried our best to contribute to the existing marketing literature in the context of business establishments. However. We did our best to get a hand on every possible material related to the subject. In order to complete our thesis we had to really keep ourselves from spreading out in the study and complete in time as per requirement of the submission of the study in time. Rodriguez Avenue Quezon City. The reason for the selection of the research locale is because the researchers are students of Trinity University of Asia. The study will also be focused at E. Scope and Delimitation of the Study There are certain delimitations to our study which we would like to mention before proceeding further. from the perspective of the businesses only. it will be more convenient for us to . More specifically. The first delimitation is the time constraint. the subject is very new and there is very scant material written on the subject. Aside from searching for new set of friends and old batchmates and colleague. The other delimitation is that we have conducted this study from one perspective only. This study is limited to determining the Marketing Practices Employed by Business Establishments in Quezon City most specifically along E. Rodriguez Avenue. 23 Social Media Sites Users. Further. Social Media Sites users can also earn income by advertising products to their accounts.

Additionally. making our results most suitable for brands with a similar target audience. ideas. Social Media Marketing and Prevalent Marketing Practices will only be the focus of the study. Lastly. This study is limited to analysing and assessing the qualitative effectiveness of Traditional Marketing and Social Media Marketing. Definition of Terms Advertising: is a form of communication intended to persuade an audience (viewers. It is worth pointing out that Social Media Sites offer many different alternatives to marketers and that fan pages are one of many possible ways for a brand to market itself on websites. A total of 3 business establishments will be included as subject of the study. or services. We will investigate and observe the effects of Social Media Marketing to business establishments and other individuals. In an effort to measure the effect of Social Media on key advertisement indicators. readers or listeners) to purchase or take some action upon products. we have chosen to look at brand attitude. . seller intention. and word-of-mouth. 24 conduct interviews because of our proximity to the place. we will choose to limit our research to the Philippine market and the study is also limited with regards to the data sample.

such as TV. tagged. Fan page: A Facebook fan page is a public profile used by brands to share information with other Facebook users. Facebook works as a social networking website enabling users to communicate and share information with friends and brands from around the globe. Fan: A fan is a Facebook user that has chosen to become a member of a brand’s Facebook Fan Page. newspapers or radio. Flickr: is a popular photo sharing website that allows members to upload their own photos into customizable albums that can then be labelled. Direct Marketing: is a form of advertising that reaches its audience without using traditional formal channels of advertising. . Facebook: A global social platform with millions of members worldwide. Bogus Buyers: refers to fraudulent buyers. Blog Marketing: is the process of reaching a business' prospects through the use of a blog. 25 Blog: is a type of website or part of a website. Blogs are usually maintained by an individual with regular entries of commentary. or other material such as graphics or video. and publicly posted. organized. descriptions of events.

selling products and or services to customers and promoting them via advertising to further enhance sales. members within the personal network) status updates to show. Friendster: Social networking website that connects individuals across the world with the hopes of helping them develop friendships. Google: is the world's most popular search engine.a network of networks in which users at any one computer can. place. LinkedIn: is a social networking website geared towards companies and industry professionals looking to make new business contacts or keep in touch with previous co-workers. affiliates. if they have permission. and clients. and promotion. synonymous with "search. Marketing Mix: Planned mix of the controllable elements of a product's marketing plan commonly termed as 4P's: product. price." is a worldwide system of computer networks . 26 Friend list: A friend list is a personalized news feed where the consumer himself chooses which friends’ (i. The term "Google" is now often used as a verb. .e." Internet: called simply "the Net. get information from any other computer (and sometimes talk directly to users at other computers). Marketing: is the process of performing market research. Like: Members might like a status update by clicking on a like-button below the update.

Post: To post is the action of uploading a status update. using highly accessible and scalable publishing techniques. such as celebrities and politicians. Sales Promotion: Activities. Social media uses web-based technologies to turn communication into interactive dialogues. non-profit organizations or high-profile people. which included advertising. and techniques used to supplement the advertising and marketing efforts and help coordinate the advertising with the personal selling effort. distribution and selling. Social Media: are media for social interaction. 27 Marketing Practice: tended to be seen as a creative industry in the past. materials. Public Relations: is a field concerned with maintaining public image for businesses. Personal Selling: Face to face selling in which a seller attempts to persuade a buyer to make a purchase. News Feed: The Facebook news feed is a long list of status updates that each member has visible on his/her profile. devices. Social Media Marketing: which is known as SMO Social Media Optimization benefits organizations and individuals by providing an additional .

. owned and operated by Twitter Inc. Twitter: is a website. a means to gain customer and competitive insight. and a method of managing their reputation online. which offers a social networking and microblogging service. Social Networking Sites: places on the Internet where people meet in cyberspace to chat. Status Update: A Facebook status update is a short message that users can upload on their profile and that will be visible to other members within their network. socialize. 28 channel for customer support. YouTube: A very popular video sharing Web site that lets anyone upload short videos for private or public viewing.. and network. debate. enabling its users to send and read other users' messages called tweets.

providing you with new tools and platforms that you can use to bring your business or career to the next . Since the study. Who can blame them? They’ve gotten used to the success that was brought about by traditional marketing initiatives that they’ve been doing for years. must be based on facts. Technology has made gigantic strides forward.investment. Some even go as far to think that the internet is a waste of time.” This is a common sentiment among Filipino entrepreneurs and businessmen. It’s already 2010 and the landscape has drastically changed over the last decade. This gives you the rare opportunity to break into an untapped market and build a very cost-effective business in a very fun way. Ople’s book entitled Social Media Guide For Filipino Entrepreneurs (2010). it should involve the systematic identification. This will also strengthen and prove the validity of a certain study. But this is good news for you. Local Literature According to Carlo S. saying it doesn’t generate return-on. “Internet Marketing is all a joke. location and analysis of documents containing information related to the research problem. 29 Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES The review of related literature is considered a difficult task but plays an essential part in the completion of the study.

there are approximately 11. April 1. 30 level. 8 out of the top 10 websites visited in the Philippines are social networks. Online gaming industry experts say that there are around 10. then be where everyone is. then you have one big problem. Globe.” Various studies show that there will be around 28 million Filipino internet users by the end of 2010. 880 registered Filipinos on Facebook. . is like being the giant billboard along Guadalupe in Makati where everyone can see you. Setting up a website and leaving it there hanging is tantamount to putting a gigantic billboard in the middle of a farm.000 internet cafes operating in the Philippines as of this writing. 2010. let’s take a closer look at one of the more popular social networks being used by a lot of Filipinos: Facebook. What are the numbers? Your first question would be “How big is the potential for growth?”. combined with the proliferation of internet cafes all over the country. and my answer is “Massive. If you have a business right now and you’re still marketing it as if it was still the 1990’s. on the other hand. SMART.468. Care to venture a guess how many Filipinos are actually signed up? As of 4:45PM. Being in social media. and Bayantel. That’s bigger than the entire population of Malaysia! The primary growth drivers here are the combination of the aggressive marketing and sales of leading broadband providers like PLDT. If you’re still not satisfied with these numbers. According to the website Alexa. If you want to tap the internet to build your business.

6 out of 10 Filipinos aged 7-14 years old are already online. How much does it cost you to get a fan on Facebook? Roughly around P10 pesos per fan using their CPC advertising . Let me start by asking you these questions: how much does it take for you to acquire one customer? How about social media? Does it have an effect on purchase intent? Do internet campaigns actually convert to sales and how are they compared to traditional media? The average businessman will probably say it takes somewhere around 100-200 pesos to acquire a customer using traditional methods. next only to watching television. And if you give these kids a few more years. What about ROI? Now this is my favorite topic when it comes to social media. they will eventually be the major decision makers. The study Digital Philippines: Internet Media Habits Decoded by Yahoo and Nielsen shows that bulk of Filipino internet users are actually within the 15 - 29 year old range. 31 According to the Cartoon Network New Generations 2009 Philippines Study. The same study reveals that the internet is also now the second most popular activity of the same age bracket. But for social media. These already include young professionals--decision makers in themselves. For the sake of argument let’s say those numbers are overstated for the Philippines so let’s peg it at just around 30%. consider this: 67% of people who follow brands on Twitter and 51% who become fans of brands in Facebook are actually more likely to buy products from you.

I’m not talking about passive fans here. Popular media stations in print. 2010. As of 5:19 PM. Note that I’m not saying that you spam Magic 89. It’s time that you also jump in and take advantage of that. These guys actively participate in the promos and discussions on the social network as well as the radio show. The DJ’s constantly promote their Facebook accounts on-air.9 is one of the most popular stations in Metro Manila. you’ll end up spending P30 pesos to get one sale if we will use the 30% mark--that’s a lot cheaper than the 100-200 pesos we assumed for traditional methods.000 fans on Facebook. All you have to do is to provide them with a gentle nudge to actually get them to go to your store and do it. That would be rude. it means that they are interested already in buying. they’ve amassed more than 98. FM Station Magic 89. and television have aggressively been using and integrating social media platforms into their operations. Using dirty math. You see. 32 platform. They’re actually one of the first stations to aggressively push for building a Facebook online community.9’s fan profile. radio. and will backfire. Another growing trend is that traditional media is giving new media a giant push into the mainstream. If you think about it.9 is giving Facebook insane amounts of media mileage. the moment someone becomes a fan or a follower of your product. . New Media is the darling of Traditional Media. Magic 89. unethical. April 1.

I was even interviewed by Ces Drilon for TV Patrol to discuss the impact of social media in the 2010 campaign. they would have to talk to people who’ve bought it before.. They’ve integrated Facebook and Twitter into their news programs and special events like the recently concluded HARAPAN: Vice-Presidential Debates. Twitter. . Today it’s totally different. What does this all mean? Traditional media is pushing people to create accounts on Facebook. you don’t exist in their world. ABS-CBN and Magic 89. You can easily go online and type the name of the product on Google and check out the reviews of other customers. and other forms of social media so that they can connect and interact with one another. 33 What I am saying is that you should be in the game. Another media station that’s pushing social media and the internet is ABS- CBN. These stations have integrated social media in their broadcast which means that they acknowledge that the number of Filipino social media users will continue to sky rocket over the longer term. If you’re not there.000 Filipino Facebook users. when people needed to know about whether a product is good or not. I Google You. They’d have to either give those people a call via telephone or meet up with them..9 are part of the reasons why there are now more than 11. do you Google me? In the past.000.

Marketers don’t just talk. and voila. The internet is like a giant marketplace filled with billions of vendors interacting with customers. LinkedIn. . Get into social media. Twitter. What they say matters. As with almost all Google’s products. Remember that one of the strongest powers of the internet is that it allows you to focus the eyes of potential customers to good things about your product. The internet is surrounded by REAL people. Finding out what’s being said about your product won’t even take much effort. All you have to do is type in key words. and the biggest factor behind this is the speed at which what they say spreads. as more Filipinos get access to the internet through their mobile phones. Google Alerts is by far one of my favorite monitoring and listening tools. The internet has a lot of really good and free tools which allow you to monitor your “online temperature”. 34 The power of search is expected to grow tremendously within the next few years.mail every time that word is mentioned online. That’s just one result in the 10 that come out on the first page. Google sends you a notice via e. because the good thing about these social media sites is that they are properly optimized for search engines. then there’s a good chance that these pages will pop out on the first page as well. it’s not enough to make your own website. etc. it’s very simple and user-friendly. To get on Google. they have to listen. If you have company pages in Facebook.

To hear about what people say about you. you only take in the information that’s relevant. You can filter the search via date and location. and important to you. It’s actually the 10th most visited site according to the research site Alexa. Google also lists down how many other people are subscribed to those other sites and blogs which gives you an indication of their popularity and authority. I’ve been using this for a long time now because. This will allow you to monitor tweets about a particular topic real time. 35 Google Reader is another insanely great tool at no extra cost. . you can go to Twitter Search and just type the keyword there. interesting. Most of you probably know by now that Twitter is steadily gaining a huge following here in the Philippines. Google Reader allows you to track all the blogs and websites that have RSS feeds in one page. Another cool feature is the Explore section. You might also want to get Tweet Deck. for me. your brand. and even based on the smileys used in the tweets (negative or positive). your competitor. The web is so rich with information and insights which can help you give your career or business a much-needed boost. The Advanced Twitter Search option opens up to a more detailed form where you can put parameters for your search. With Google Reader. You can click Recommended Items and Sources for blogs that Google thinks you might find interesting. education never stops. or your industry.

If you want to have a Fan Profile. You need to get the word out to the 11. customer support. your competitor on search engines. your company. .000. and to give them that you’ll need to get someone to manage customer relations. You can dot his either by directing the advertisement link straight to your website. or to your company’s Fan Profile.000 Filipino Facebook users that you exist. note that this will take considerable resources and effort. It’s just a matter of investing time and effort. There are several ways to do this. resources. 36 Search Engines is another way of monitoring your online presence is just to key in the name of your product. however. For eBook. the three common objectives: awareness. Each objective will require different tactics. it requires constant engagement between you and your customers. Awareness is probably your objective if you’re part of a start-up. A Fan Profile is meant for more than just adding fans. the benefits outweigh the costs by miles (hey. The former needs less resources than the latter. The first and more obvious one is to advertise on Facebook. and manpower to pull off. these tools are for free!). Believe me. and community building. The web is one giant free market research machine that anyone can tap. They’ll want answers to their comments. The objective of your Facebook campaign will determine your over-all strategy and execution.

The danger with social media is that your channels can quickly turn from promotional vehicles to customer support outlets. You can’t leave your social media channels immoderate. Don’t forget to update them later on once you actually find out what went wrong. Start asking the difficult questions before you get into this. it needs time. When this happens. The strongest feature of social media platforms is the ability to build. One thing that I’d like to recommend is that you come up with rules and regulations for posting comments on your Facebook Fan Profile. and sincerity. nurture. It’s a long term relationship which grows over time. More than that. If you allow users to post comments on your Fan Profile. then just let them know that you got their complaint and that you’re working on it. you better make sure you have someone replying and coordinating with your sales and marketing so you can resolve issues quickly. effort. Constructive criticism is welcome but not at the cost of disrespecting the administrator and their fellow fans. 37 Customer Support ties in with the Fan Profile concept. Always remember that you should reply as fast as you can. If you don’t have a resolution yet. Someone has to man the ship. . Set objectives. You need to have a deliberate strategy for your social media campaign. and mobilize communities. expect to get a mix of good and bad feedback from them. There’s nothing wrong with moderation because there are clear and present dangers which can go after your brand.

php. Step 2: Edit Settings . Once you fill in the initial information.com/pages/create. However with enough prodding and patience they will become brand ambassadors and evangelists. It’s all about COMMUNITY. you don’t buy them off. then you might want to consider this approach. empty. log on to http://www. 38 Social Media is long term. If you don’t input any. and blank page. Step 1: Create a Profile Picture . The first setting tab will be country limitations. the next task is to edit the settings for your page. You can set what countries can only view your page.facebook. You earn your customers. message. the default is that all countries can see your page. The main message that I want to get across to you now is that you shouldn’t be limited to the conventional Facebook profile for the picture. and keep users coming back for more.The profile picture is very important because this is the face of your company for Facebook. It’s also the first thing that they’ll see if they get an invitation.After uploading a good profile picture. or when they land on your wall. Use an image that best suits your objective. Get a graphic artist to come up with a decent stylized logo or product photo. you’ll land on a very boring. If you want to make an impression quick and fast. To set-up an official page. If your business is . The challenge now is to make this page interesting enough so that you can actually build a community using this platform.

One app that everyone should get is the Static FBML application. Since this is the second most visible thing after the Profile Pic. Step 3: Content . edit the Note Box which is located under your Profile Picture. There will be several information slots you’ll need to fill up with basic company information. Next we have the media that you will be uploading. you might want to put the URL of your website here or something important which will help you get your fans to your storefront. Add a Landing Page to your Official Page .and-mortar operations (unless you’re going to do online selling). Select very good photos and videos that you can use to promote your brand. 39 just based here in the Philippines. At the end of the day there’s no point in getting international visitors especially if you have a brick. You can use this to invite your fans for your major promos and events and actually schedule it in their calendars so they don’t forget. Focus them on just one channel.The first thing you need to fix is the Info Tab. After that. This allows you to create a beautiful and effective landing page for your profile. Why is this important? Because you can . then I strongly recommend that you just limit the viewing here so that you won’t encounter any problems and mix-ups.Facebook has a lot of applications that you can use to spice up your official page. Step 4: Add Applications . Pick only the best and the more “viral” ones so that users can share them with their personal networks. Instead. a good default app to add is the “Events” app.

Your Facebook Official Page has to offer value to your customers because if it doesn’t. If your business is online.One of the best and most affordable ways to drive sign-ups is to use your actual offline business to promote your Facebook Official Profile. Integrated Marketing . Have tarpaulins or those table menus printed announcing that you’re on Facebook and that you’d like your customers to sign-up as fans. Step 5: Promote. and quick marketing message that you control. It’s even simpler if you have an e-mail or SMS database. 40 control what users will see when they first visit your page. Your community has to be alive and kicking. strong. all you have to do is put banner ads on your site. promote. the next task is to drive traffic to it. Give them a good reason to log-in when they get home and search for your page so that they can sign-up. The great thing about the Facebook Ad Platform is that it’s very user-friendly and it gives you a lot of options so that you get the . Facebook Advertising is one of the most cost-effective platforms available to Filipino entrepreneurs. Just send out a broadcast announcing your Facebook Official Page and wait for them to start trickling in. promote! Now that you’ve built a proper Facebook Official Page for your business. Let them know that you’ll be running contests and promos exclusive to your Facebook community. The Static FBML landing page capability lets you focus the eyes of your potential fan to one singular. then it’s as good as spam.

There’s so much information and insights that you can get via Twitter’s search mechanisms that will have a profound impact on your business and career. 41 maximum exposure possible for your target market. That’s the single most powerful tip I can give to you before you start doing social media. The traffic they’re getting is still high enough to get anyone’s attention. the more value you add to yourself and your company. But Facebook Advertising can bring your business to a whole new level if you leverage on the built-in targeting features of the platform.People say Friendster is already “yesterday” but the fact of the matter is that a lot of Filipinos are still using the pioneer social networking website. .more specifically young Filipinos. Social Media is not about buying. You also get to pick the method of payment and there’s a tracking mechanism built-in which will allow you to monitor the performance of your campaigns. Twitter is not just about talking . Connecting Smiles with Friendster . ADD VALUE. You’re also contending with two other ads as well as the social stream on the wall of your prospects. The more value you give. especially companies who want to tap Filipino netizens . it’s about earning via giving.it’s also about listening and learning. Facebook Advertising is not as simple as it looks like. especially Twitter. You really have to put even more effort in coming up with phenomenal creative because you have such a small space for both the image and your copy. Secondly.

credibility. regions.friendster. Some bloggers here in the Philippines have more monthly readers compared to national best-selling glossies! A blogger has one thing that all ads don’t .Bloggers are starting to gain more prominence as great ways to raise awareness. The most obvious is the ad placement and the ad size. Another amazing feature that’s not available in Facebook is the ability to target up to the locality of the target market (you can pick cities. They have a relationship with their readers that makes them an authority and subject matter experts. Friendster gives you a large canvass of 300x250. The Friendster Self-Advertising platform – DIY(Do It Yourself) Ads offers a lot of advantages in advertising compared to Facebook. Personal Branding and . etc). especially if we’re talking about the Philippines. The marketing tools that you have at your disposal on Friendster are quite formidable especially if you leverage it properly. The placement of the ads is also optimal since it usually pops up at the upper right section of the profile. 42 Building your Friendster Fan Profile . According to the book of Lloyd Luna entitled The Internet Marketing Handbook ( Principles and Strategies for Corporate Sales. you need to create a regular account for your brand or company.com and sign-up for an account. Blog Marketing 101 .To start. Head on over to www. Friendster’s definitely still in the game.

secondary. Information has been made available in the Internet and every assignment can simply be solved with a power “CTRL+C (Copy) and CRTL+V (Paste).” Students. in theory. What seemed to be a perfect business model in the last century no longer holds a healthy cash flow. can now be literally better than their teachers. Most jobseekers don’t have a clue on how an applicant is selected. 2009). There is no denying that the world has evolved swiftly. They. And so people in the academe are left with a unique question in mind. Door-to-door job application was replaced with an online resume submission eliminating a human interaction during the first level of screening. teachers in primary. and tertiary education no longer get due respect from students who claim to be far better than they are. 43 Business Success. too. traditional way of headhunting has changed unbelievably. The old rules have changed and it happened without a warning. too: What happened? Those who’ve been doing traditional marketing and selling face the same difficult challenge. are caught with one unique question in mind: What happened? In education sector. . Most people who have done their business in the past were caught with one unique question in their mind: What happened? In recruitment. Gone are the days where businesses get an impressive number of responses from people using cold calling and facsimile transmittals.

If you fail to get the message. the fear or dislike of advanced technology or complex devices. Obviously. People who belong in the older generation continuously struggle to catch up. Marketing strategies of . The new generation of business people wanted to innovate and adapt the new technology but the old generation seems to still hold on with “what made us successful” in the past. There are things in the past that simply cannot be an effective tool to help us improve or develop the way we live our lives. It seems to me like the young is moving forward while the old is moving backward. 44 The days of door-to-door selling was replaced with something else more economical. especially computers. According to Juanita P. Those old school tools become more burdensome rather than it is irrelevant. the younger generation appears to be more welcoming on technological developments. Result? Status quo—the most dangerous side you can ever be! The Internet Marketing Handbook is effective only to people who are ready for it. Roxas in her book entitled Marketing Practices in the Changing Philippine Macroeconomic Environment. It occurs to me that there are things that no longer work however we try our very best. Businesses can cut personnel and still get the same sales result. then the philosophy is lost. Most of them developed an irrational fear called Technophobia. the rules have changed and so have the tools. On the other hand.

000. The applicability of the stagflation model outside of the US was also validated.hit the country due to the 1990 Persian Gulf crisis.460.com show that the Philippines is now among the Top Ten Largest Countries in terms of Facebook population with close to 15. Philippines-based users yields around 611. Number of users on Facebook in Philippines is: 15. product and research and development practices when stagflation .000++).a period of shortages.000 to 612. Facebook is the number 1 Website in the Philippines in terms of audience and search traffic.000). . inflation and recession . Over the years.3 million.950.000 logon every day since March.18 to 34 years old (around 260. while Female users are 7.540. The Philippines is the 8th largest worldwide and the 2nd largest in Asia.000.247.3 million users (as of July 22. Dominant are college students or yuppies at 18-24 years old (around 150.284. Male users are about 7. Majority of that are women at 353. Latest figures from CheckFaceBook. next only to Indonesia whose Facebook population currently stands at close to 26. Manufacturing companies were more dynamic than the service sector in their pricing. 45 Philippine corporations are highly adapted to the obtaining macroeconomic conditions. according to All Facebook. Majority of that are in the age group . Facebook has increase its popularity in the Philippines and it kept growing time and time again. 2010).

Unsupported by physical adjacency. its disadvantages are: Overcrowding. and it allows members to check students who are taking the same class. the disadvantages don't pose a threat just by merely looking at it. Accessible to chosen universities having a high level of security. Makes it less awkward when communicating with people you are not familiar with. 46 Facebook is a popular name among those who are so into it. On the other hand. Someone else has to prove that what users do with their profile is directly in proportion with what can happen to them. living within the same area. And even if a community like Facebook serves numerous advantages. A user must understand what he is . The advantages of Facebook are: Allows user search for new and old friends. Weakening long distance relationship. Surely. it also proves to have certain disadvantages as well. Makes it easier to join groups having similar likes and dislikes. Contributes wide-range procrastination. Arguments regarding the different advantages and disadvantages of Facebook for the Filipinos are stated below. Filipinos who have an account in Facebook are now using more of their time to socialize with other people amidst the distance and lack of time. Love attraction . Rampant addiction. There are now series of improvements in the system just to make up with the shortcomings. Stalking is possible and Acquaintances be labeled as friends.can be used as a dating service system. or coming from the same academy.

Despite the above mentioned advantages and disadvantages of an online networking service. Worse.com’s article entitled “Politicians using Facebook for 2010 election preparations” it is said that politicians are among the top users of said social networking site even if the 2010 elections was just a year away.com in most politicians’ campaigns. According to abscbnNEWS. As media sees the early smell of elections in the air. It is quite obvious that a trade-off is happening between the advantages and disadvantages of Facebook. Some are now trying to criticize the status of professionalism of this site whether it's just another fad like other online networking services are. 47 trying to give out otherwise things might get messy and people will mistook them as someone else. some are actually punished for what they put on their profile and would claim that it was there only for fun. networks have also cited the significant role of Facebook. While it increases the communication and connection between friends and the online community it also increases the risk of procrastination and makes it easier for others to stalk a user. The article also states that according to information technology expert Jaime . There are about 10. This is regardless of the age or any demographic profile of individuals. it still is gaining demand and popularity among the young Filipinos.000 students (professionals and young professionals not yet included) who are joining into Facebook every day.

certain facts regarding the maximization of social networking sites which cites that politicians who are running for post have hired full-time staffers to maintain their online presence in social networking sites especially the presidential candidates. Yet the news team recognized the fact that candidates have just started to tap the full potential of cyberspace and other social networking sites. Lynn Lopez of Gmanews.com and Multiply. several social networking sites which includes Facebook.com. The article also expects much-awaited discoveries that presidentiables might see and maximize by using Facebook. 48 Garchitorena of Youth Vote Philippines. She shared actual experiences and said feedbacks are very necessary to be critical about because users don’t even know if they are really in touch with the politicians. Write to them and wait weeks for a response. Those e-mail addresses you see? And those contact forms? That’s all for show. people. Friendster. In the article “Pres ‘l Campaign to Spread in Facebook. She said: “One thing that hasn’t changed much is the websites’ sheer indifference to feedback.” . My space” by the Herald News Team.com voters to know more about the candidates.com. or sit back and watch awestruck as your messages bounce to you instantly.tv criticized the attachment of the candidates themselves in networking accounts that they have in her article “POLITICIANS ONLINE: A one way street?”.

Today. Facebook. This isn’t like America or any . Perhaps because at the time. Ten years ago. Philippine politicians have. thus. Plurk. Social Media Marketing in the Philippines isn’t in its peak yet. According from a book article written by Lloyd A. Now. it wasn’t like this. creating a statement of challenge whether Facebook. As an Internet marketing specialist in the Philippines and Asia. and Foursquare among many others. Luna entitled Social Media Marketing in the Philippines. I think transformation from being consumers to users isn’t really an easy move. And my observation is that Filipinos are still in the “consumer” of the technology rather than “user” of it. it was still unclear what it is for.com accounts of candidates. We love being entertained and get connected with friends. Multiply. in a way. 49 As what media practitioners see. it’s obviously important for us to be in social networks such as Twitter. We didn’t have much rapport with the Internet technology especially that the Philippines was just starting to adapt with the trend.com will be effective when used by politicians in the country. the difference is that consumers spend and users profit. The criticisms that praises and negates at the same time shows how the pros and cons of presidentiables being visible online creates another idea whether people will still be pulled by the bandwagon of Facebook. patterned their campaigns the way United States President Barrack Obama has in his presidential campaign.

but mind you. We should have the knowledge on how to read the signs as well as the meaning over as many clicks as have. Some of the common concerns include budget and time constraints. These are valid concerns considering that small businesses are usually tight on finances and require the owners to be hands- on in all aspects of the company. You can try reading about it yourself. where standard of living prohibits them from spending 3 hours a day on Facebook and other social networking websites. is something that we can’t afford not to have. You don’t have to jump immediately into hiring a social media expert. the name of the game will be Users of Internet Technology. Many business owners are still concerned about partaking in marketing in the social web. Here are some tips on how you can make social media marketing easier for small businesses: First. According to the article of Rob Angeles entitled 5 Valuable Social Media Marketing Tips For Small Businesses. but as you progress it’ll all be easier. Our performance in social networks and media as part of our internet marketing campaign or identity should be more than what we have now. 50 other developed countries. But social media marketing isn’t all that expensive and time-consuming. sooner or later. Social Media as a tool. We are still lucky to be in this country. Davao. whether you are in Manila. Allot an hour or so a day to read and absorb the basics of social media. . or anywhere else in the Philippines. Cebu. It may start off that way as you’re learning the ropes.

can be a very useful tool in making promotional or instructional videos which you can post on social video sharing sites like YouTube. Third. why not choose a select few that you can concentrate on. 51 then practice it bit by bit. You don’t have to spend on high-tech gadgets. Make sure that those sites you’ve chosen are ones that actually matter. you can simply ask new customers where they’ve heard about your business. the lesser the likelihood of you getting fooled by so-called social media “experts”. And also. To make it easier for you to stick to your allotted time. Your tried-and-tested video camera. Fifth. Knowing that you’re only supposed to work within the said hours can really keep you focused on work. online business owners are expected to be top in their game in using tools like Facebook and Twitter to their advantage. To help you maximize your allotted time for social media marketing. These free tools . don’t spread yourself too thin. Remember that you don’t have to go full out immediately. Instead of being everywhere at once. If you’re worried about tracking ROIs for your social media effort. the more you understand what goes on in social media. According by Dani Babb in his article entitled Make Sure your Facebook Strategy is the One that Works Best for your Business”. it helps to set up an alarm clock for when you need to start working and when your time is up for doing your social media marketing. and it gives you the chance to get to talk to your clients a little more. Fourth. Second. it’s personal. It’s quick. even your cellphone camera. In today's social media- driven marketing frenzy.

Pages also allow you to see statistics. but it's important to know what you can and can't do with each. useful and purposeful while adding. though you will need to set your security preferences for this. You can add extra applications to make your page more personal and send messages to all members using the updates feature. There are tighter security options now in Facebook than in the past. You can certainly have both. A viewer does not need to be a Facebook member to view your fan page either. if your brand allows. Pages can be viewed by unregistered users. You can create a corporate "person" page. 52 are increasing in popularity but also in saturation--many people report not reading updates anymore because of "information overload. I recommend logging out and seeing what you can and can't view while not logged in as a registered user. "What options should I use? Groups or regular pages?" This is a more complicated question than it seems on the surface." It's important to keep information fresh. First. Fan pages can be useful in helping the viral aspect of social media because "Joe . so be sure to explore what each of those does. some humor and interesting information. but important for making certain you spend your hard-earned money and precious time in areas that will give you the most bang for your buck. One of the most common questions I get about Facebook is. let's take a look at a standard Facebook fan page and some of the options available to you.

job tips and who's hiring. Group pages allow you to set other administrators to see who is requesting to join the group. to help people find online teaching jobs called "Make Money Teaching Online" where members share experiences. for example. Some people don't like this because it ties them to their businesses. you can ask all of your friends to join the group) and any of your group members can also invite their friends. They are generally considered to be best for more personal interaction. Both also allow . has a limitation of 5. A group. I use a group. Both groups and fan pages allow you to create discussions and others to reply. it will also show up on your personal wall. Both require you to manually remove posts as an administrator if something does not meet your standards or purpose for the page. on the other hand. If you have "friends" on your Facebook page who are acquaintances or just share common interests this is a good way to market. You have more control over participants and permissions with group memberships." pops up on each persons wall (unless they turn it off or remove it) when they become a fan of your business. but this can be useful in creating a "person behind the online business" feeling with your customers. Groups. however. Both have a wall for people to write on. Both allow you to share videos and pictures. allow you to send out bulk invitations (for instance. If you post something to the group page.000 members if you wish to send a message. 53 became a fan of.

Social Media). 54 you to create events. we allow people to be who they are and we indulge in their interests to show that we respect their individualism. and there's a good chance that your members and friends won't be returning to your pages anytime soon. you can have both). be sure to update regularly. you are far less likely to build loyalty. we all know why Facebook is topping the charts. We have come to know Facebook as one of the major portals of social connectivity but other than that. According by Glen. Facebook pages can . Regardless of which one you choose (of course. Facebook sure knows its way into the social media frenzy. 10 Ways to Create a More Engaging Facebook Page (Online Marketing. If you use your page or group purely for promotional reasons. What Facebook marketing offers matter to people’s businesses. keep your audience engaged and offer something of value. According from the site www. entitled Facebook Marketing. Facebook is here for a reason. which is why as a Global Marketing Specialist for Voice Ville. Not only that. With the help of Facebook. With over millions of visitors a day.voicevilleinc. businessmen take advantage of this social medium to engage or to use it as an outlet to feel a social vibe. we literally make friends with everybody. on his article entitled.com. Facebook is leading us into a different world called Facebook marketing. we utilize Facebook to connect to thousands of people worldwide. an article by Rhyza.

and would give them a great reason for joining. Fourth.People on Facebook want to see photos. Facebook statistics tell us that the average user (at the time of this writing) is connected to 60 pages. First. Facebook is far and .Facebook allows you to customize what page different types of users land on. For a more effective social media marketing program. groups and events.There’s nothing worse than a bland Facebook page. It’s a great idea to show potential users a page specifically tailored for them. This means that aside from all the other Facebook friend activity that goes on. It might give a little background about your company or site.Your die-hard followers won’t need any reason for joining your fan page. Be unique . After all. your page is one of at least 60 things that an average Facebook user is giving attention to. 55 be a huge way to connect to audiences. Think long and hard about how your page can be different. Second. It’s insanely important that your page is unique and stands out from the rest. ten things that you can do to turn your Facebook page into a dynamic and engaging destination for your Facebook fans. Remember. consider giving resources back to your community and niche. Use a large profile picture . Don’t use a generic landing page . Third. your page is one of 60 trying to grab attention a fan’s attention. This allows you to reach other potential fans within your niche that might not have known about your Facebook page. You can show people who have never been to your page before a completely different message than people who are already fans on your page. But if you’re trying to really grow your Facebook presence. Give something away quickly .

which makes . Thank people for becoming your fans . Sixth. The largest overall demographic on Facebook is ages 35-54. you can pull in Twitter. Many people have Facebook notifications that alert them when they’ve been tagged in photos. Use contests . Fifth. What used to be a place for college students and younger is now a place for everyone.Contests are a great way to make your fan page more engaging. Flickr. If you’re somehow able to take pictures of your customers. and many others fairly quickly. Don’t treat your fans like kids . 56 away the biggest photo sharing site on the web. According to this report from strategy labs. and they also give incentive for potential fans to join.When someone becomes a fan on Facebook. the fastest growing demographic on Facebook in 2009 was adults aged 55 and over. Eighth. So make sure your page has a large photo of your company or brand as the profile picture. Contests that include giveaways can be excellent marketing tools if they’re done properly. and this will bring them back to your page. or at the very least send them a quick “thanks!” message. Facebook has grown up a lot in the past few years. Integrate multiple social networks You can use multiple Facebook applications to pull in your other already existing accounts from other social networking sites. Tag fans in photos . tag them within the picture. Ninth. like an e- book or coupon.In case you haven’t noticed. immediately thank them! Give them something in return. Seventh.This is a great tip if you’re a brick and mortar business. This helps with branding and adds trust to your profile. With the help of some nifty applications.

Benkler. Yochai Benkler analysed many of these distinctions and their implications in terms of both economics and political liberty. Facebook pages are breeding grounds for excellent feedback and engagement. and posting stories and articles also add lots of value to the community Foreign Literature In his 2006 book.Oftentimes people will create their pages and leave them. Keep at it . and technological characteristics of what has come to be known as "social media". like many academics. Social media uses web-based technologies to turn communication into interactive dialogues. Photos and contests are great interaction tools. However. Andreas Kaplan and Michael Haenlein also define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2. Many people are starting to find that Facebook pages have excellent discussions and high interaction rates. Social media are media for social interaction. using highly accessible and scalable publishing techniques. 57 up 29% of all Facebook users and Tenth.0. social. which allows the creation and exchange of user-generated content. uses the neologism network economy or "network information economy" to describe the underlying economic. oftentimes higher than Twitter and other social networks." Businesses also refer to social . The Wealth of Networks: How Social Production Transforms Markets and Freedom.

A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value." There are various statistics that account for social media usage and effectiveness for individuals worldwide. Australia has some of the highest social media usage statistics in the world. the only way to intellectually prevail is by infinite filibustering. used mobile devices in December 2009. Twitter processed more than one billion tweets in December 2009 and averages almost 40 million tweets per day. 58 media as consumer-generated media (CGM). Andrew Keen criticizes social media in his book. internet page views occurred at one of the top social networking sites in December 2009.S. In terms of Facebook use Australia ranks highest with almost 9 hours per month from over 9 million users. Over 25% of U. "Out of this anarchy.S. One of the key components in successful social media marketing implementation is building "social authority". Social media utilization is believed to be a driving force in defining the current time period as the Attention Age.8% a year before. writing. The Cult of the Amateur (2007). Social authority is developed when . Some of the most recent statistics are as follows: Social networking now accounts for 22% of all time spent online in the US. it suddenly became clear that what was governing the infinite monkeys now inputting away on the Internet was the law of digital Darwinism. up from 13. the survival of the loudest and most opinionated. Under these rules. A total of 234 million people age 13 and older in the U.

It is through this process of "building social authority" that social media becomes effective. and expertise in a specific area or industry through providing valuable and accurate information on an ongoing basis without a marketing angle overtly associated. and of. using social media as a form of marketing has taken on whole new challenges. This person or organization becomes a thought leader and value provider . trust with. knowledge. thereby becoming an "influencer" in that field or area. the recipient of that information – and that message itself – begins to develop naturally.setting themselves up as a trusted "advisor" instead of marketer. it is most effective if marketing efforts through social media revolve around the genuine building of authority. Thus. Someone performing a "marketing" role within a company must honestly convince people of their genuine intentions. 59 an individual or organization establishes themselves as an "expert" in their given field or area. That is why one of the foundational concepts in social media has become that you cannot completely control your message through social media but rather you can simply begin to participate in the "conversation" in the hopes that you can become a relevant influence in that conversation. "Top of mind awareness" develops and the consumer naturally begins to gravitate to the products and/or offerings of the authority/influencer. As a result of social media – and the direct or indirect influence of social media marketers – today. consumers are as likely – or more likely – to make . If this can be done. As the 2010 Trust Study indicates.

instant messaging. Tumblr. to name a few. social networking sites. Foursquare. Social . blogs and microblogs. and virtual communities. picture-sharing. and voice over IP. 60 buying decisions based on what they read and see in platforms we call "social" but only if presented by someone they have come to trust. Many of these social media services can be integrated via social network aggregation platforms. wikis. crowdsourcing. pictures. By applying a set of theories in the field of media research (social presence. Plurk. media richness) and social processes (self-presentation. TypePad. According to Kaplan and Haenlein there are six different types of social media: collaborative projects. In Communication: Blogs: Blogger. LiveJournal. Technologies include: blogs. video. Gowalla. email. Posterous. wall-postings. The Hotlist. content communities. Google Buzz. rating and social bookmarking. podcasts. Jaiku. Social media can take many different forms. music-sharing. Vox. including Internet forums. Xanga. self- disclosure) Kaplan and Haenlein created a classification scheme for different social media types in their Business Horizons article published in 2010. That is why a purposeful and carefully designed social media strategy has become an integral part of any complete and directed marketing plan but must also be designed using newer "authority building" techniques. vlogs. Facebook places. microblogging. Open Diary. Twitter. Microblogging: FMyLife. weblogs. Qaiku. Yammer. ExpressionEngine. WordPress. social blogs. virtual game worlds. Location-based social networks: Foursquare.

folkd. Content Management Systems: Wordpress. Nico Nico Douga. StumbleUpon. Docs. Inc. 61 networking: ASmallWorld. Skype. Diigo.fm. Metacafe. Photobucket. Zooomr. Wikia. MyWeboo. MySpace Music. NowPublic. Social bookmarking (or social tagging): CiteULike. Stack Exchange.com. Dailymotion. YouTube.Cyworld. Flickr. The Sims Online. Meetup. Picasa. OpenCU. In Entertainment: Media and entertainment platforms: Cisco Eos. .com. Upcoming. Vimeo. In Multimedia: Photography and art sharing: deviantArt. Mixx. Events: Eventful. The Hotlist. TubeMogul. SmugMug.com. Kickstarter. Tagged. Forterra Systems. MySpace. Livestream. Business reviews: Customer Lobby. Livecasting: Justin. Presentation sharing: scribd. Social news: Digg. SlideShare. Information Aggregators: Netvibes. Newsvine. Social navigation: Trapster. Ustream. Google Reader. ReverbNation. Viddler. BetweenCreation. Community Q&A: Askville. Last. Hi5. Syncplicity. Twine (website). In Collaboration/authority building: Wikis: PBworks. Facebook.com. Orkut. Online Advocacy and Fundraising: Causes. WikiAnswers. Yelp. The Hype Machine. Stickam. Video sharing: sevenload. Delicious. LinkedIn. EHow. Waze. XING. Wikimedia.. Openfilm. Reddit.com. ShareTheMusic. Wetpaint. Second Life. Document Managing and Editing Tools: Google Docs. Yahoo! Answers.tv. Dropbox. In Reviews and opinions: Product reviews: epinions. Pandora Radio. Virtual worlds: Active Worlds. Music and audio sharing: ccMixter. MouthShut.

Statsit. Social media has become a platform that is easily accessible to anyone with internet access. as opposed to the brand or company itself. With the emergence of Web 2. 62 Game sharing: Kongregate. and sales promotion. marketing research firms. Integrated marketing communications coordinates the elements of the promotional mix. public relations. Sysomos. and public relations firms. publicity. In Brand monitoring: Social media measurement: Attensity. However. the content.e. personal selling. timing. In the traditional marketing communications model. direct marketing. Social media marketing is a recent addition to organizations’ integrated marketing communications plans. opening doors for organizations to increase their brand . Vocus. A corporate message spreads from user to user and presumably resonates because it is coming from a trusted source. the internet provides a set of tools that allow people to build social and business connections. and medium of communications by the organization is in collaboration with an external agent. advertising agencies. advertising. the growth of social media has impacted the way organizations communicate. Miniclip. frequency. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks.0. i. Integrated marketing communications is a principle organizations follow to connect with their targeted markets. share information and collaborate on projects online.

and a method of managing their reputation online. social media serves as a relatively inexpensive platform for organizations to implement marketing campaigns. such as article and press release publications. A strong foundation serves as a stand or platform in which the organization can centralize its information and direct customers on its recent developments via other social media channels. Social media marketing which is known as SMO Social Media Optimization benefits organizations and individuals by providing an additional channel for customer support." social media leader Dave Evans have indicated in his book that social media plays a vital role in business. taking customer engagement and collaboration to new levels that help improve company's products. and services. Building on the principles in his bestselling book. Dave Evans. 63 awareness and facilitate conversations with the customer. a means to gain customer and competitive insight. HR professionals . Key factors that ensure its success are its relevance to the customer. author of "Social Media Marketing: The Next Generation of Business Engagement (2010)" wrote that implementing Social Media in business is perfect for marketers. Organizations can receive direct feedback from their customers and targeted markets. business unit managers and owners. "Social Media Marketing: An Hour a Day (2010). Additionally. the value it provides them with and the strength of the foundation on which it is built.

64 and anyone else looking to better understand how to use social technologies and platforms to build stronger businesses. Discover software and analytical tools from firms like Radian6. He also gives insightful insights on how to become successful marketers using Social Media through the following: Understand the new social business ecosystem and how it affects your current and future business. connected social media marketing strategy that enables you to incorporate what you learn to improve your products and services. including consumer-facing firms like Philips and New Belgium Beer. and others to help you monitor and quantify your social business. and produce solid insights as you implement a social media–based business plan. Craft a scalable. analytics—see how to select and use social metrics. Sysomos. He reveals that social technology. Lithium Technologies. and monitor their social business strategies. BuzzStream. IBM. Microsoft. analyze results. Find out how other companies implement. analytics. manage. nonprofit organizations like Found Animals of Los Angeles. Think analytics. services and your prospects for long-term profits and growth. Rapleaf. Socialtext. when applied to business. Gear up for customer-led collaboration! Explore a host of best practices for involving your social contacts in product design. can spur collaborative innovation and drive winning programs to improve products. . and the business-to-business units of American Express and Element.

While building on underlying assumption that the advertising formats blur the boundaries between the advertising and surrounding content. shows that they may be more effective than traditional advertising formats. increasingly difficult for companies to standout and get consumers to pay attention to their company (Granlund and Grenros. 2006)and have developed what Blackwell (2001) calls selective attention. In this new marketing landscape advertisers must surprise consumers and adopt methods around which mental barriers have not yet been developed. or advertising scepticism if we are to use the words of Obermiller and Spangenberg (2005). 65 According to Paul Gillin in his book entitled Secrets of Social Media Marketing (2009). particularly mobile .500 brand-related messages (Lucas & Dorrian. Research on new advertising formats such as advertorials etc. (Dahlen & Edenius 2007. but this is a new and quickly-evolving field and there are few established formulas for success. Friestad & Wright 1994) We are every day exposed to about 1. Social media has quickly moved from the periphery of marketing into the forefront. It is. 2007). Friestad & Wright 1994) and that marketers must find new ways to break through these barriers. at any place. The fact is that these” mental barriers” are a necessary reaction of consumers to the increased advertising noise(Dahlen & Edenius 2007. This is due to the ubiquity of mobile devices. We are approaching a time when the ability will exist to contact individuals at any time. in other words.

has received even less scholarly attention. stated in his article “The Transformation of the Political Audience” that: . 66 phones with GPS functionality. A specific type of mobile advertising. the next question one must ask is. Politics has been transformed to accommodate new media and forms of communication. Various gimmicks are being done. what do consumers think about it? If consumers have generally positive attitudes toward such advertising. The technology holds the potential for marketers to send information and offers to consumers based on their proximity to places where the marketers' products are available. Mobile advertising in general is only beginning to receive scholarly examination. According to the article to the article “The Transformation of Political Modernity” by John Street: “A common place to observe how politicians and parties exploit the techniques and icons of popular culture to promote their ideas and images. (Franklin. Given the growing ability to reach people in a much more targeted manner than was possible in the past. Politicians have their own strategies when it comes to their advocacies. If consumers are generally negative about it then advertisers will have to sell the medium first before they can successfully use it to sell other things. Jamieson)” Richard Huggins. location-based advertising (LBA). on the other hand. 1994. then this could be the very technology that allows m-commerce to kick into high gear.

in a way. The results. puts it as if online battle will decide who will win in the elections when he wrote: “This is the strongest example of social network usage for political promotion yet. says. but it’s obvious that these (and all following) elections will largely be fought online. Schroeder further stated that Facebook. members or supporters mount up to thousand to millions.com being the number one site worldwide.com. like the United States has a very large population of internet users among its population. are astonishing because with blinks of the eye.” Philippines. By spending very little time and money.com is yet to be largest online social network. Colbert has managed to gather one million supporters.com campaigns is yet to be the most cost-efficient in the part of the running candidates since it does not require hefty amount of money to post or campaign ones and advocacies or propagandas. Facebook.” In a blog created by Stan Schroeder in his site Mashable. Whether or not they’ll all vote for him is another matter. gives a big avenue for Philippine politicians to follow the Obama’s lead in getting . Schroeder. 67 “In recent years the emergence of new media forms and practices have excited both optimism and pessimism about the ability of the media to reinvigorate the public sphere and political discourse and communication. He. Schroeder stated that Facebook.

also came down to the people. The ambition for many who put this network together is to provide the same sort of political support that political machines offered in the late 19th and early 2oth century – organizational powerhouses that brought people into office and built support for their legislation. Now Zelizer cites that Obama did not rely solely on Facebook. to get the votes and convert it for his campaign.com.” This article questions how Obama would treat the machinery that he used. its contributory angle to the study could be the advantages of the Facebook.com is still applicable if he is in government.com campaign when Obbama came down to the people and what could be the possible effects that had been laid out with the use of Facebook.com . When analyzed.com’s Fan Pages or Causes. according to Zelizer. He also said: “If President Obama follows through on his promise of suing the tools of his campaign for the challenges of governance. we will learn just how strong the net-roots really is. it is a challenge Obama’s side if the effectively of Facebook. The Princeton University professor wrote that after being successful in using the social networking site in elections.com. 68 votes and influencing their target audience thru their advocacies in Facebook. Another related article is by Julian entitled “Will Obama Use Facebook Politics?” published in CNN’s website. Facebook. Obama.

She cites that: “This marks a crucial development in the Internet’s history: Far from being a place where geeks go to hang out with other geeks. Facebook pages tend to experience a Snowball effect once a critical mass of supporters has been obtained. he wrote such article on the strategies of political campaign entitled “Top 10 Strategies for Running A Facebook Political Campaign” which cites: “Facebook is more than just hype – every online business and politician needs to know how to use this social platform. In Sam Goldfarb’s blog. she explained that politicians should be very careful when they go online because having accounts on the sites doesn’t actually make them ‘in’ or cool. also from CNN cited in his article “Will the 2008 USA election be won on Facebook?” that networking sites have made a great leap for the format of campaigning. From our experience. No longer a virtual refuge for lonely nerds. 69 Linnie Rawlinson.” ..” Though Rawlinson praised the concept that presidentiables have explored the web to reach larger demographics. these sites are used daily by bright young things. the Internet is now as vital part of the average college student’s world as Spring Break.. keen to arrange the latest hot club/bar/gig to visit.

Local Studies According to the New Media Philippines’ study entitled. In the study. Since everyone does it. a lot of marketers feel that it’s easy and that it’s something .com accounts has many perks on the part of the politicians. Writer J.P. especially with the advent of the social-network generation. this would reflect the innovations done by previous users of Facebook. Preirie also has a say in the political arena wherein Facebook. that a lot of brands are now rushing to Social Media to take a stab at the massive online market.” Preirie cited how easy it is to earn votes in the day of elections via reaching the target audience thru the medium that everybody is accessible. However most marketers don’t have too much respect for new media. we could use the strategies in constructing our questionnaires and interviews with the respondents.com plays its role. In his article “Facebook Pitches Its Political Benefits” he says that having Facebook. “Making a First Good Impression with your Business Facebook Official Profile”. It also includes the impact of the said strategies towards the masses. He said: “Direct mail isn’t going away anytime soon as a vehicle for reaching voters. 70 Having such posted strategies. But it’s clear that web-savvy campaign managers would like to benefit from broadening the way voters support campaigns.com in their campaigns. It is an apt opportunity for them since campaigning online is a lot easier than posting signs over target places.

Dela Cruz (2009) says the Internet has been a necessity in human life. utilizing multi-media platform is still the best way to spread advocacies. you’ll most likely see a profile picture and a very busy wall. From the dawn of new media. Let’s apply some traditional marketing principles in strategizing for the official Facebook Profile Page of your business. You can’t communicate the unique selling proposition of your product with a wall filled with random comment. Although Internet has a lot of potentials. This is where they make a fatal mistake which can just lead to more harm than good. The methodology delved into the analysis of advocacy sites. organizations and individuals pushed by a variety of interest have converted their attention into another area of spreading their advocacies. Being an avenue that draws the attention of the people. If you’re a customer and by some chance you find yourself in the official profile page of a brand. 71 that they can do on the fly. This is where the connection fails. groups have used the Internet for their own purposes such as election advocacies. creators of the sites were also interviewed on the basic fact and figures of their respective websites along with a survey conducted among the voters on their perception on the advocacies online.” . Dela Cruz states: “The key to the success of such website is maximizing all possible functions of the Internet that will help attract audience.

Relying heavily on interviews. Gloria concludes: . ABS-CBN and GMA 7. And at the same time. Gloria analyzed eight (8) election-related websites and interviewed the Webmasters on their stand on the trend of setting up online presence. political science and journalism specialists were interviewed as a contributing analysis together with an online survey to Filipinos. another research proposed the reinforcement of advocacy in advertising on national television by the possibility of a law supporting the primetime airing of advocacy advertisements.. The researchers concluded: “.the researchers found that both government laws and self- regulatory rulings raise problems on supporting the primetime airing of advocacy advertisements on television. the Congress and advocacy advertising agencies and institutions. the researchers interviewed two (2) leading media networks. Gloria (2004). Political actors find their space in the Internet as another area of campaign which made the researcher. put up the study on the election-related websites as a way to maximize the potential of the Internet for political ends.” The political arena widens during the elections giving way to political actors such as election candidates and non-government organizations in the country. 72 Seeing the media as the major role player in the emergence of a damaged culture..

” As social networking sites boom in the country. there raises the question on the perks and perils of these sites to the youth. as well as the factors why the youth has clung to the idea of suing or creating accounts on social networking sites. Between males and females. Macaraig and Samaguil (2008) found out that the students adhere to the usage of social networking sites because of the benefits that social networking sites can provide them than on the technical characteristics of the websites. both men and women. Mass organizations have also entered the virtual world of spreading their political campaigns and propagandas. political content such as presentation and expression and language used. it has been found that males use the social networking sites because of the speed showing the friability attitude of the males. The audience also underwent Focus group discussions and focus interviews to . The official website and official newsletter were textually analyzed together with then technical aspect of the sites such as the design. the use of election candidates of the Internet as a campaign tool hardly played any role in the political game. This manifests that the traditional media today are still the preferred political tools to pump up support from the electorate. 73 “For political communication. Borais and San Juan (2005) studied the shaping and reshaping of the political groups’ websites and newsletters on the political socialization of its members. It also shows that females use it for gratification or for the expressiveness allowed by the sites.

However.. adults in 2010.S. The researchers states that: “. adults who access Twitter on any platform at least monthly. Internet users adopting the popular microblogging platform..” Foreign Studies According to Amy Porterfield.” according to eMarketer senior analyst. there are 5 Must-Read Social Media Marketing Studies: #1: By 2010. they recently revised their estimates because “recent data shows healthy—and growing —percentages of U. Usage will reach 26 million U. ...A new study by eMarketer surpasses their previous estimates of Twitter usage. stating that there were indications of large numbers of users abandoning the site shortly after signing up and many others only using it sporadically. Adults Will Use Twitter Monthly . Paul Verna.the website and the newsletters of the political groups contribute to the shaping and reshaping of the political socialization of its members. 74 further into their perceptions on the use of the website and the newsletter on the possibility that it may or may not contribute to their political socialization. The study.S.” Earlier this year. a further 44.S. 26 Million (1 in 7) U. there will be 18 million U. eMarketer reported more conservative usage numbers. That represents a 200% increase over 2008 levels.4% climb.S. found the following: “In 2009. conducted just last month.

. making the social networking site nearly as large as the U.7%).8%).As popular social media platforms continue to grow their numbers of users. it is logical to conclude that Americans are spending more time on social networking sites. 57% of media buyers reported they will buy non-traditional media.2%) and Magazines (42. The top 5 most popular media for the 2010 marketing spend were Email (56. Keyword search (49.1%). In addition. This was recently affirmed in the findings of the “2010 Media Planning Intelligence Study” by the Center for Media Research. Social networks (56. Over 50% of Marketers Will Be Using Social Media - Marketers are becoming even more aware that social media marketing must be a key component of their media buy strategy. Over half (56. search. Radio (42. which examined the likelihood of marketers including social media in their 2010 marketing plan. Online ad spending increased by 119% to $108 million in August 2009. display video. #3: In 2010.3%). In September. According to a recent study by The Nielsen Company.S. Among those paying the most attention to this recent trend are advertisers. including online. 17% of the time spent online was at social networking sites (an increase from 6% in August 2008). #2: Americans Spend 17% of Online Time on Social Media Sites . population. mobile and event sponsorships. 75 Twitter is not the only social networking site to report record usage numbers. Facebook officially hit the 300 million-user mark.3%) of marketers stated that social media would “realistically” be part of that mix.

#5: 75% of Marketers Plan to Increase Social Media Use in 2010 - According to a recent survey by virtual events provider Unisfair.S. Web . Higher customer satisfaction (43%) and Reduced marketing costs (38%). A few interesting factoids from the Unisfair findings: The 3 leading marketing priorities in 2010 according to U. As reviewed by eMarketer.0 marketing included: Increased marketing effectiveness (52%). marketers planned to increase in their 2010 marketing mix: Social media (75%). That was followed by video-sharing and social networking at 48% each.S. and RSS feeds at 45%. including TV. Customer retention and engagement (48%) andThought leadership (45%). And the top 5 marketing tactics U. #4: Blogs Most Useful Social Media Tool. bringing measurable benefits to 51% of responding companies worldwide. the top three reported benefits of Web 2. 76 while 43% reported they will buy the more traditional media.” In addition to these findings. print and radio. Say 51% of Businesses - McKinsey Quarterly’s “Global Survey” examined companies’ overall assessment of the value of different social media technologies. marketers are most focused on attracting and keeping customers in 2010 and they plan to use social media to make this happen. blogs were the most useful tool. “When it came to customer-related benefits. marketers: New customer acquisition (60%).

Social Media will have a positive impact on your business. seems unlikely but Social Media Programs come very close to that benchmark. Risk free improvement of business performance. and the risk factor of implementing such a program is as close to Nil as is possible in a business situation. Email campaigns (49%). According to the study. Facebook at 23% and Twitter at 17%. Can Your Business Survive Without Social Media? By Pete Hollier. Coleman-Parkes Research . What is the impact if the business does not initiate a Social Media Program? A lot of the benefits of Social Media appear to be more perceived than based on quality market research. 77 search/SEO (51%). Virtual events (48%) and Online advertising (28%). The study also asked marketers to rank the value of social media platforms. Without a doubt the conclusions are clear. The Social Media Surveys say it is evident businesses see the value of Social Media as part of their over all Marketing Mix. To assist businesses determine if Social Media is a worthwhile addition to their marketing program I have included results of recently completed surveys. It’s time for businesses to seriously consider the impact of Social Media on their business. Social Media must be investigated from two different business perspectives. LinkedIn came in on top at 26%.

With powerful results such as these it is hard to comprehend why businesses are not implementing Social Media Marketing. It is also evident Social Media has become an expected activity from consumers. The results from the survey showed 60% of American citizens used Social Media. Obtain user feedback on product and services – 41%. Enable consumers to interact with the company brand – 37% and Market to consumers – 25% . Companies who fail to embark on a Social Media Campaign do so at their own peril. A survey complete by Coleman-Parkes Research for Avnade an IT consultancy firm provides feedback on a number of issues from a business’s perspective. 78 discovered 84% of North American companies feel they require new methods to interact with customers. Of those 93% indicated business should have a Social Media presence and 85% indicated businesses should interact via Social Networks with their customers. Companies currently . Research undertaken by The 2008 Cone Business in Social Media Study resulted in some impressive statistics which must be noted by business owners. Consumers surveyed indicated businesses should use Social Media to: Solve Problems – 43%. including Social Media and mobile devices. Some of the Barriers to initiating Social Media Programs: Lack of understanding by Senior Management 58%. Negative impact on employee productivity 49% and Fear of unknown technology 58%.

“78% of respondents stated “As we enter a possible economic downturn we need to focus on new ways of communicating with customers which add real value. A method of business promotion which meet the expectations of consumers and is in fact wanted is a must win situation for business. From the business perspective. Within the survey completed for Avande were some general statements which must be considered: 52% of respondents stated “Companies that fail to embrace social media technologies for business purposes will be left behind. 79 using Social Media reported the following: Improved Feedback 78%. The results of the surveys clearly indicate that Social Media has become an accepted and expected method of interaction and communication by consumers. This fact in itself is quite powerful. It is very clear from the survey that companies that do undertake a Social Media program gain benefits from their . Improved Customer Satisfaction 66%. when considering many forms of business promotion are considered to be intrusive by consumers. Increased Sales 40% and Improved public perception of company 75%. as with most new methods there is resistance and Social Networking is no different. Lack of understanding of how to use Social Media and the technology required and used are predominant factors for business not initiating Social Media Programs.” And 77% of respondents stated “If they did not initiate a Social Media Program Social Media would enter the company by stealth”. Improved Customer support 71%.

. Of those. The survey also found more than a third (36 percent) of respondents are investing in social media monitoring and analysis tools. it was 98% North America and Europe and only 2% Asia Pacific and other regions). 80 interaction with customers and prospective customer. Integrated marketing services provider Alterian today released the results of their seventh annual survey on social media marketing adoption. Study Finds Marketers Embracing Social Media Marketing In A Big Way. 40 percent said they would be shifting more than a fifth of their traditional direct marketing budget towards funding their SMM activities. not doing so is a risk to the over all success of the business and it’s stake holders. The survey covered 1068 marketing professionals worldwide (actually. These difficulties include lack of communication with customers and prospective customers and a lowering of overall competitiveness within the market place. Businesses of today must undertake a Social Media Program to succeed in an increasingly competitive and connected business environment. According to Robin Wauters. Alterian found that 66 percent of respondents will be investing in social media marketing (SMM) in 2010. Businesses that do not participate now or initiate in the future will have difficulties. especially in the economic environment we currently experience.

in the European Union 90% of the businesses are micro in nature and same is true within Sweden where micro businesses are considered as the backbone of the economy. have a small market share and the owner manager has discretionary power of making his or her own strategic decisions (Bolton Committee. Schmiemann (2006). According from the study entitled Social Media Marketing versus Prevalent Marketing Practices by Abdul Ghaffar and Muhammad Tariq. germinate entrepreneurial spirit in public and innovation in organizations. In spite of this still there is very scant published material on micro firms and it is relatively complex to define micro firms as there are several connotations of their qualitative and quantitative definitions. According to Johnson. These businesses create employment opportunities. Micro firms in qualitative terms are businesses which are owner managed. said they don’t currently incorporate clickstream and web analytics data into their customer and e-mail database. 1971). This quantitative definition might cause some confusion as in this case the term SMEs can be used interchangeably with small businesses which also cover the definition of micro firms. 81 Nearly half of respondents (42 percent). . (1999) micro business is a business having up to 10 employees. however. The research also found that over half of respondents (51 percent) are placing a ‘fair’ or ‘significant’ amount of effort on moving from a campaign- centric direct marketing model towards multichannel customer engagement – in fact only 7 percent make no effort at all.

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In the year (2005), European Commission introduced a new criterion for defining

SMEs. Accordingly, Medium-sized, Small and Micro businesses are businesses which

have fewer than 250 employees or either an annual turnover not more than 50 million

Euro. Whereas, Small-sized firms are businesses which have fewer than 50 employees

and their annual turnover do not surpass 10 million Euros. Finally, Micro firms are

businesses which have fewer than 10 employees with annual turnover not exceeding

more than 2 million Euros. From this discussion evidently micro business is easy to

describe but difficult to define.

First, we begin by defining marketing in the context of small firms as, “Small

business marketing consists of those business activities that direct the creation,

development, and delivery of a bundle of satisfaction from the creator to the target user

and that satisfy the targeted user” (Logenecker et. al, 2010).

According to Timmons (1999) business mortality statistics for small businesses

show that, small firms experience a high rate of termination during initial years. The rate

of discontinuance can be as high as 70% during the first five years of inception. Whereas,

Marc (2004) argues that marketing practices like a careful analysis of target market can

lower failure rates of small businesses up to 60%. At the same time small firms confront

several other problems which in descending sequence of their importance are sales and

83

marketing 40.2%, followed by human resource management 15.3%, general management

14.3% and operations 8.6% (Huang & Brown 1991). This indicates that marketing is the

most pressing problem confronting small businesses and still it has been recognized as

most important business function for small businesses (McKenna, 1991), and of-course

marketing in small firms differ from marketing in large firms (Bjerk & Hultman, 2002).

The same course of reasoning is applicable in the context of micro firms which are

influenced by owner-manager and resource scarcity (Karolina et al, 2007).

These challenges call for a marketing orientation in small firms to improve

performance with respect to competitors. According to Never and Slater (1991) a

marketing orientation is defined the, “organizational culture that most effectively

creates the necessary behaviours for the creation of superior value for buyers and

thus continuous superior performance for the business”. However, Mike (2002)

state that there are other possible orientations which small businesses can follow

such as production orientation, product orientation, financial orientation. Most

recently Kotler and Keller (2009), advocated the concept of holistic marketing

orientation meaning that “everything matters” in marketing and that a wide,

integrated orientation is needed to compete effectively in marketplace and mind

space.

It has been agreed on that the principles of marketing theory are equally

important for both small and large firms (Sui & Kirby, 1998). There are several

models of marketing that provide guidelines for businesses to survive and grow in

84

their respective industries. However, Welsh and White, (1981) proclaims that, “a

small business is not a little big business.” There are several points on which

small businesses differ from big organizations like; owner-management has a

distinct strict discipline in small businesses, lack of trained personnel, short-

ranged management perspective, limited financial resources, adoption to steady

state conditions and analytical models used in big organizations have limited

usage in small businesses (Welsh & White, 1981). This shows that small

businesses are not like big businesses therefore, the needs of these two types of

organizations differ from each other including its marketing needs.

Towards a New Model of Marketing, one set of marketing theory cannot

be generalized for two types of organizations with different characteristics and

requirements. The marketing theories which are written in the context of big

organizations have little or no relevance to small businesses (Chasten & Mangles,

2002).

Little research has been carried out on small businesses and those

researchers tried to draw models and theories specifically for small businesses but

these efforts alone cannot help the needs of the small firms in totality. For

instance, Miller and Antilla (1987) researched 36 Finnish and Swedish firms but

they described their research as being “too qualitative for examining state-of-the-

art marketing in small manufacturing firms”. Similarly, most of the research that

is done on small businesses focuses on the problems or barriers present in the

Marketing dominated organization (MDO). “the role and relevance model of marketing”. (1998) advocates the consideration of the stage of growth of small businesses while formulating marketing models for small firms. Marketing led organizations (MLO). For instance. 2006). Marketing weak organization (MWO) and Marketing independent organization (MIO). Some research is practical in nature but lacks real time application. The role and relevance model of marketing in SMEs explains the role and relevance of marketing in a small business environment. In the light of the above short comings in theories for the small firms. These quadrants comprise as. the Growth/Stage Model by Siu & Kirby. it can be argued that the theories need to be either modified to suit the small businesses or a completely new set of theories and models be drawn for the small businesses. The model places organizations in four quadrants depending on the relevance and role of marketing. Simpson and Taylor (2002) came up with a new model of marketing. . but the model is unable to mention the impact of radical technological advances like the internet. al. 85 small firms (Simpson et.

In a Marketing-dominated organization (MDO) there is minor relevance and major role of marketing in strategy making processes. However. 86 In Marketing-led organization (MLO). In the Marketing-weak organization (MWO) a sales orientation is prevalent with major relevance and minor role of marketing. Normally. Therefore. Marketing-led organization is perceived to be organizations pursuing best business practices to cope with changes in business environment. 2002). From the above discussion we come to know that Marketing-led organization (MLO) is the best strategy for a small business for maintaining or . a drawback of (MIO) approach is that the organization future is at the mercy of the major client (Simpson & Taylor. there is strong marketing orientation for maintaining or increasing market share in a competitive business environment. A Marketing independent organization (MIO) resembles a marketing dominant organization (MDO) but in such type of organization there is no unconditional orientation and commitment towards marketing. marketing may be seen as unnecessary and the organization might be called a marketing- nominated organization but in the long term marketing can help the organization move to (MLO) quadrant in the model. such organizations have guaranteed business from a major account or client. This type of organization does not have a proper marketing department and these businesses are normally not interested in growth either.

2006). al. There are three possible alternative paths identified for small firms to reach the desired (MLO) quadrant. (2006) Simpson and Taylor carried out another research along with Padmore and Hughes to test their new model. 2002). Later in the year. M Ma jor . “Strategy B” which follows the track (MIO-MWO-MLO) is more a reaction to market demands. “Strategy A” which follows the route (MIO-MDO-MLO) is an innovative approach which is resource intensive in the beginning but should help the small business later in exploiting actionable opportunities. They found that there still lie some deficiencies in their model but the model has been successful in taking the understanding of marketing in small firms one step further by categorizing small businesses on the basis of marketing activities they carry out inside (Simpson et. and finally “Strategy C” which follows (MIO-MLO) path is seldom used by Small brick and mortar businesses (Simpson & Taylor. 87 increasing market share in the domain of competition.

Second. In the first place an effort has been made to define accurately micro firms and therefore we have adopted for this thesis the standard definition of micro firms given by the European Commission (2005). Further with the passage of time researchers like Booms and Bitner proposed more supplementary “Ps” of marketing to existing list of “4Ps” such as people. Traditional marketing practices are centred on the marketing mix model. Conventional Marketing Mix and Social Media. the marketing mix model was termed the 4Ps of marketing as it contains Product. the authors have tried to describe how marketing is seen and carried out in small firms as by design or default a small business is not a little big business. process and physical evidences constituting a “7Ps” approach which is . Place and Promotion variables. 1957). Soon after in the 1960s according to McCarthy (1960). Therefore the authors try to explain that marketing practices in small firms should be seen as distinct from big business and a new model of marketing is discussed which classifies small firms in four quadrants depending on the role and importance of marketing for a small business. 88 To sum up the above discussion in few simple words the authors have tried to form a launching pad for the RQ1 of this thesis. 1984). Price. The marketing mix model was introduced by Borden in the 1950s (cited from Neil. Ever since then it became the indisputable marketing model and replaced the then existing functionalist approach and parameter approach of Copenhagen Business School of Scandinavia (Alderson.

freedom and in terms of measuring the effectiveness of a marketing campaign. Consumer. It is important to know that although the original marketing mix model has been oversimplified by restricting it merely to 4Ps of marketing (Gronross. while in unconventional manner it makes possible for customers to interact directly with other customers. Sales promotions such as (Samples. archives accessibility. Premiums. Most recently according to Glyn and David (2009). The table 2-2 (a) below reveals the fundamental changes that social media has induced by making media instantly updatebale. Trade shows. physical assets. Site and Security in the marketing mix list of variables which are more inclined to E- Marketing practices. On . control. 1999) still it is interesting to know that embedded in the Promotion “P” are sub variables such as advertising which can be both below-the-line (BTL) and above-the-line (ABL) or a hybrid combination of both known as through-the- line advertising (ABL+BTL =TTL). Community. 1999). and personnel. scientific shows. Personal selling. Point of Purchase (POP). Public relations and Direct marketing (Wilmshurst. 2007). 89 more inclined to services marketing (Fifield & Gilligan. 1996). Privacy. procedures and personalization (Goldsmith. sweepstakes). Most recently Otalcan (2005) has introduced the concept of (2P+2C+3S) by including Personalization. Sales promotions. with the arrival of social media a new dimension has been added to promotion mix as social media in a conventional sense can help companies to interact with consumers.

Table 2-2(a) Traditional Media versus Social Media Traditional Media Social Media Fixed. have come up with five common objectives such as listening. . 2008). supporting and embracing as to why companies use social media. 90 the other hand traditional media is unchangeable with archives not accessible and reaches a finite number of people (Stokes. talking. energizing. unchangeable Instantly updateable Commentary limited and not real time Unlimited real-time commentary Limited. These five objectives correspond to the traditional business functions as shown in the table 2-2 (b) which also reveals that how things have become different in the domain of groundswell. time delayed best seller lists Instant popularity gauge Archives poorly accessible Archives accessible Limited media mix All media can be mixed Committee publishers Individual publishers Finite Infinite Sharing not encourage Sharing and participation encourage Freedom Control Source: Rob Stokes. (2008) The above discussion is further elaborated by Charlene Li and Josh Bernoff (2008) who. based on their observation of hundred of businesses.

91 Table 2-2(b) Objectives of Social Media versus Conventional Business Functions Traditional Business Social media functions Differences in the new Functions or objectives of landscape groundswell Research Listening Ongoing monitoring of your customers conversations with each other. not just outbound communications Sales Energizing Making it possible for your enthusiastic customers to help sell each other Support Supporting Enabling your customers to support each other Development Embracing Helping your customers to work with each other to come up with ideas to improve your products and services . instead of occasional surveys and focus groups Marketing Talking Participating and stimulating two way conversations your customers have with each other.

Based on consumer welfare and satisfaction Shapiro et al. (2006). “Anything that can be offered to a market for attention. 92 Kotler and Armstrong (2004) define a product as. the basic level is the core benefit which signifies the . service (s) and idea(s) which are intangible in nature. (2002) have categorized products into four categories as shown in figure (2-3). Pleasing products have high immediate appeal but might hurt the consumer in the long run such as cigarettes and deficient products have neither immediate appeal nor long run benefits. According to Logenecker et al. Marketers plan their products on the basis of customer value hierarchy consisting of five distinct levels as shown in Figure (2-4). It can be a tangible physical good (s).g. As the figure reveals that desirable products have both high immediate appeal and long term satisfaction. Air bags. use or consumption that might satisfy a need or want”. Salutary products have low immediate appeal but may benefit the customer in long run e. acquisition.

The fourth level is augmented product which means any additional features. For imitative products firms normally follow four types of strategies such as Premium pricing. potential product which include the total augmentations and transformations a product might produce in future time (Kotler. 2005). 2005). 93 fundamental benefit for which the consumer buys the product. Price is the reflection of market forces and is defined as. benefits or value laden services on the basis of which organizations compete and finally. overcharging and economy pricing strategy. Pricing tactics normally changes as the product or service goes through the product life cycle (Kotler et. good value. “The sum of the values that customer exchange for the benefits of having or using the product or service” (Wong et al. The second level consists of generic or basic product and the third expected product. 2000). al. and “The amount of money charged for a product or service” (Kotler & Armstrong. as . Boone and Kutz (2001) argue that price refers to the exchange value of a product or service. 2008).

However. . often use skimming pricing startegy also known as market-plus pricing as in these strategy higher prices are set initially on purpose to skim the profits from the market. with the fear of easy entry for competitors. Companies which launch new innovative products. market penetration sets lower prices in beginning to penetrate the market initially and then gradually raise the prices as demand pull is created (Kotler & Armstrong. It is important to discuss that many small businesses consider under. good value pricing offers high quality at an affordable price and overcharging strategy means that the organization over prices its product or service relative to the quality of the product/service (Kotler et. al. al. the small business owner should bear in mind that established competitors normally have more resources than new one and in a cut throat price competition they can be wiped out the small business (Logenecker et. Economy pricing strategy has a low quality product or services and charges lower prices. al.Whereas. 2010). As the Figure (2-5) reveals below Premium pricing strategy means having high-quality product and higher prices and on the other hand. For innovative products firm can chose from market skimming to penetration strategies (Kotler et. 94 shown in the figure (2-5). 2001). On the other extreme. The term takes its origin from the expression “skimming the cream” (Boone & Kurtz. 2005).cutting pricing as the most appropriate strategy in the initial stages for attracting customers and booming sales. 2008). 2005).

“A system of marketing institutions that promotes the physical flow of goods and services. al. 2005). also called a distribution channel”. agent/broker. 95 According to Longenecker et al. (2006) small business should not recognize off target pricing as an irreversible error as pricing is not an exact science and there are no established hard and fast rules. from producer to consumer or business user. If the pricing strategy misses the target then small firms should make necessary adjustments to their strategy. along with ownership title. Some channels have many marketing intermediaries such as a wholesalar. (2001) a marketing channel is defined as. According to Boone and Kurtz. and a retailer (Boone . Companies seldom work in isolation for creating value for customers as majority of firms are only part of larger distribution network (Kotler et. Therefore it is crucial for firms to determine the type of channel which is most appropriate for attainment of their objectives.

2005). 96 & Kurtz. 2001) while in a direct-marketing channel there are no intermediaries involved. . Intermediaries are used in distribution channels as they create efficiencies in providing products to end-users as these intermediaries are more specialized expertise in these operations (Kotler & Armstrong. 2008). as shown in the Figure (2-6) below (Kotler et al.

This reduces the cost of operation and. 2008). (2010) proclaims that small firms use promotions in different extents. 2009). a small business rarely would use the entire promotional strategies available. World War II for creating integrated marketing communications strategies with organizations operating from a position of control . hence. “the process of establishing a commonsense or oneness of thought between a sender and a receiver”. public relations and direct marketing) to create a customized message for target audience to attain organizational objectives. In conventional promotional mix. the five elements are designed by businesses in coordination with paid advertising agencies and marketing research firms (Glynn & David. Longenecker et al. sales promotions. Wibur Schramm (1995) defines communication as. 97 The above Figure 2-7(left) reveals that intermediaries enable economies as there are three manufacturers who are reaching three end users. According to Boone and Kurtz (2007). personal selling. This method has been used ever since. integrated marketing communications try to organize and direct the elements of marketing mix (advertising. In this arrangement nine different contacts are required. more benefit for the end user. On the other hand in the Figure 2-7 (right) there are also three manufacturers who are using one distributor that uses six contacts. The result is distribution decreases the number of contacts or amount of work which needs to be done by both manufacturers and end users (Kotler & Armstrong.

Blackshaw and Nazzaro (2004). (2009) in collaboration with Forrester research have devised a template for aligning social marketing tactics with traditional marketing channels as shown in table 2-3 below. and frequency is diminishing to a great extent (Glynn & David. content. 2009). 2007). In this regard for comparion purposes Emily Riley and Rebecca Jennings. 2009). However. 98 (Muniz & Schau. proclaim that recently the strategies for interacting with target audience have changed with the advent of consumer generated media. This is mainly been made possible through the social media trend where consumer interact with one another independently and get the information which they normally would get from institutions (Charlene & Li. . as control of managers on timing.

now we shall elaborate the specific variables of the marketing mix model one by one. (2005) define advertising as. persuading. goods or services by an identified sponsor. According to PricewaterhouseCoopers.(Attention. “Any paid form of non-personal presentation and promotion of ideas. Kotler et al. for creating effective advertisements Strong's widely accepted model of AIDA. In an effort to cover both sides of the continuum we would start with conventional promotional strategies and then towards relationship marketing and finally to social media adoption practices. 2009 worldwide marketers spend in excess of 400 billion dollars on advertising of which major amount of money is spent on television advertisements. information gathering. We are witnessing a transition from traditional media to social media. 99 In order to carry out this type of comparison the businesses must first determine their goal which can be brand building. According to Boone & Kurtz (2001. engaging customers.” According to Baker (2006). Interest. advertising is non-personal (one-to-many). After discussing the evolutionary developments which marketing mix has undergone. . Then the marketer should analyze which tactics might take the place or be compared to a traditional marketing approach (Emiley Riley et al. inducing purchase and customer service. Whereas. 2009). Desire & Action) is used. paid form of communications (unlike publicity) which uses several types of media for informing or inducing trial in target audience. Businesses use advertising for informing.

there are two main categories when it comes to the types of media for advertisements such as Above- the-line (ATL) which contains all commission based media such as Television. the Chicago School of Thought view advertising as informing consumers by having a favourable impact on competition (Beuscart & Mellet. . 2008). 2003. al. Kotler et al. 2006. Majority of small businesses use other people competencies for their advertising purposes such as advertising agencies and research firms (Longnecker. Stanton et. Regarding two types of advertising (informative and persuasive) there are two schools of thought. stresses that with the arrival of Personal video recorders (PVRs) like TiVo. & Kotler & Armstrong. 100 and comparing their products or services to competitors (Boone & Kurtz. Baker. 2008). today broadcasters are faced with numerous problems which are mostly technology oriented. Baker (2006).However. Radio and Below-the-line (BTL) which are non commissioned such as publicity (Wilmshurst. For instance. consumers can record many hours of programming and can easily skip advertisements. whereas. Newspapers. Magazines. 2005. The Harvard School of Thought see advertising mostly as anti-competitive and persuasive in nature. Furthermore. 2006). 2001. 1994).

audience control exposure Source: Kotler & Armstrong. guarantee of position long life. high cost. low cost. immediacy. fleeting exposure. good pass-along readership Radio Flexibility. good positional strategy Internet High selectivity. no credibility & prestige. “Junk Mail” competition allows image personalization Magazines High geographic and Long ad purchase lead demographic selectivity. 101 Table 2-4: Profiles of Major Types of Media Medium Advantages Limitations Television Mass-marketing High absolute costs. exposure. no ad exposure. less audience selectivity sound and motion Newspapers Flexibility. low Creative limitations message competition. high repeat Little audience selectivity. relatively low interactive capabilities impact. time. (2008) . Short Life. Relatively high cost per flexibility. Timeliness. High coverage. audience. combines sight. exposure. low Demographically skewed cost. Low cost per clutter. highly believable small pass along audiences Direct Mail High audience selectivity. reproduction quality. poor good local coverage.

size and position of the medium. Salesperson play a vital role in the process of personal selling that is why sometimes they are referred as the eyes and ears of organization as they cross and up sell to customers (Greend. frequency. . Kiyosaki (2000) stresses that small firms should not abandon promotional campaigns prematurely particularly during economic recessions as in these economic circumstances consumer turn to those businesses which stay more visible by being persistent in their promotion (cited in Longenecker et. such as a good or service”. al. Small businesses should not lookout for results from promotional campaigns until the completion of six- week‟s cycle. According to Robert Kiyosaki and Sharon Lechter (2000). al. 2010). personal selling can be defined as. Therefore prudent entrepreneurs seek professional advice and recommendation in this regard (Longenecker et. “the process of person-to-person communication between a salesperson and a prospective customer in which the former learns about the latter’s needs. In terms or frequency of advertisements it is important for small firms to decide how often to advertise as it involves a number of objective and subjective elements. and Baker (2006). timing and media impact. and seeks to satisfy those needs by offering the prospective customer the opportunity to buy something of value. stresses that advertising medium requires attention in terms of character of medium. 102 According to Kotler et al. (2005) advertisers need to make media related decisions in the light of reach. advertising works on a six-week cycle. 2010). atmosphere. coverage. cost. According to Cant and Heerdan (2005).