Facebook: a new image of marketing

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FACEBOOK: a new image of marketing
A study on effectiveness of Facebook marketing

A Research Proposal submitted by Ramandeep Chutani MBA, University Canada West

CDRS 313: Research Methodology Prof. Brian Amouzegar November 11, 2010

Facebook: a new image of marketing 2 Table of Contents 1. Problem……………........2. Facebook-ing for business……………………………………………………………………6 4.…………………………6 4.……4 3...5 4.……..12 6. Methodology………………………………………………………………………………….2.. Ethical Issues……………………………………………………………………………….…….………………………………………………………..………….16 . References………………………………………………………………………………14 6.8 4. Proposed Methodology…………………………………….……………………………………………..13 7. Appendix……………………………………………………………………………….3 2.4.3. Viral Marketing……………………………………………………………………………….…………………………………………………..…... Participants……………………………………………………….1.. Proposed Literature…………………………………………..9 5.9 5.. Vancouver Business: Success story……….….9 5. Introduction…………………………………………………………….……….11 5. Abstract…………………………………………………………………………………. Critique and Analyze……………….………….……………………….3. Project work plan and deliverables…………………………………………………..1.7 4.

Facebook: a new image of marketing 3 1. Many brands and small businesses have already entered the Facebook platform and due to the economic remunerations of this platform. After experimentation process and surveying fans. determine the level of effectiveness in Facebook marketing standard. with a quantitative approach. . The success of Facebook has not escaped the specialists‟ attention. An experiment will be accompanied where a sample of participants will be exposed to a selection of fictive fan pages on Facebook during one week‟s time. but there is a clear absence of quantitative research because there has been huge debate within the marketing community that is influencing consumer behaviour and brand perception. The purpose of this research is to. brands with a truncated marketing budget can be lured to join the race. this study will help to support the debate. I will be able to demonstrate the fact of considering a Facebook an effective marketing tool for businesses. so. Abstract This research proposal focuses on the effectiveness of Facebook marketing.

2007). Introduction Facebook is a popular social networking website launched in the second month of 2004. The advertiser is no longer the person in a company that decides how. By the time it had started. There are more than 25 billion content shared like pictures.wikipedia. Facebook marketing is becoming talk of the biz world. Nowadays. Facebook has become an unbeatable phenomenon by its fastest growing number of users and user friendly platform. where and whom to communicate. Facebook‟s enormous user power helped multinational and national companies to build number of clients and sales of their products and services in a very short period of time. Each user is connected to an average of 140 friends which shows if a company persuades a single person to post something about their business or brand they are having the potential of reaching 140 or more. 2010). As a .Facebook: a new image of marketing 4 2. applications. Nowadays it is the customer that decides which company and what information to take part of (Meadows-Klue. Many national and international companies are using the help of Facebook to market and advertise their business in order to fascinate more clients (Retrieved from: http://en. Seemingly. games and groups (Facebook web-page. Facebook is thus an attractive marketing channel to reach younger consumers. it has been studied that almost one out of 14 people in this world is a Facebook user. press information. Facebook has approximately more than 500 million users. Facebook‟s early achievements attracted investors and marketing companies to nurture their businesses with the help of its growing number of users. and particularly interesting for new companies that do not have extensive marketing budget.org/wiki/Facebook). when. events. includes pages. posts and links and over 170 million things to interact with.

This research will addresses to start-up companies targeting . However. these results have yet to be tested on Facebook platform. Erlandson and Modig. however. The absence of scientific studies does not. Hence.Facebook: a new image of marketing 5 researcher. Lately. there are very few guidelines in relation to what role fan pages should play in a business‟ marketing strategy and how the brand should communicate with consumers through such a medium. This debate has been supported by extensive research and according to several studies a creative approach is to be preferred (Colliander. The study will also determine whether an advertiser shall adopt a creative approach rather than a strictly selling approach on Facebook. I would like to explore more on the effectiveness of Facebook marketing. reflect a lack of interest amongst advertisers and the number of businesses starting their own fan page is constantly increasing. Problem Facebook is a young contender in communication platform and therefore. there are not many studies or researches regarding its effectiveness as a means of marketing. The problem questions that will be used to perform the research are: how effective is Facebook marketing. why Facebook marketing is called low-cost marketing? And how „fan pages‟ influence Facebook marketing? The main purpose for this research is to investigate whether start-up companies shall use a Facebook fan page in order to enhance perceptions of brand associations and improve traditional key advertisement indicators amongst consumers. 2010). Deceptively. there has also been a debate concerning the effectiveness of a creative approach against a selling approach to marketing. 3. this research mainly focuses on the effectiveness of Facebook‟s marketing.

or any other social networking website Run Facebook Only Promotions: Run promotions which are only accessible through Facebook. he also shows the main possible ways to get the attention of the customers. Twitter. because of author‟s straight forward approach in describing benefits of Facebook. to analyze.   Publish your Facebook Page on Website. (Retrieved from: http://whizkidkonnect. A recent report stated that 10% of total time spent on the internet is on Facebook. . but don‟t be pushy: Invite customers to join the page but never push them otherwise they will get irritated.  Facebook for Business: This is the process where a company can promote its products with the use of Facebook. Facebook-ing for business According to author of this article Facebook is everywhere these days. the effect of Facebook marketing on unknown brands and to ensure full validity to the study. Objectives of this research are. and it would be stupid for local businesses not to take advantage of the opportunity accessible by Facebook. This article represents all the possible ways which make Facebook an effective marketing tool. and it isn‟t going away. Jared Todd (author) also represented some primer for business looking to reach out to customers through Facebook  Invite customers. 4.Facebook: a new image of marketing 6 young students. both internally and externally.1. Proposed Literature Review 4.com/) The main reason why I chose this article.

Social Maximizer.net/search-engine-optimization-blog/social-media/viral-marketing-on-facebook-7-pointsyou-just-cannot-neglect/) . 2007) (Retrieved from http://www. All these information is essential for a best conclusion on the research topic.Facebook: a new image of marketing 7 4. invitation process i. it can grow really fast.2. its fan page feature. If your members are interested and would like to join about your group. It is as easy as if somebody is relaxing on a couch.com/pages/Viral-marketing-tips/92274993058) Viral marketing is a part of internet marketing.insidefacebook.e. (Bhavya George. (Justin Smith. There are certain parts of Facebook page that results to viral marketing such as its application that connects people with each other instantly. the group name will usually appear on your members‟ personal profile pages until they leave the group. inviting your Facebook fans or Friends for an event or gathering.com/2007/12/09/inside-facebook-marketing-bible-24-ways-tomarket-your-brand-company-product-or-service-in-facebook/. This information is vital for knowing the effectiveness of Facebook marketing. http://www. these links can engender a lot of clicks to a group page. Because profile pages are exceedingly trafficked. Additionally. 2010) (Retrieved from: http://sem- group. It starts when members starts joining a group after that they can invite any person or a friend on Facebook by using a very unique feature called the built in Invite feature. The source here mainly states the meaning of viral marketing which is also known as word-of-mouth marketing. Viral Marketing Groups are one of the simplest ways to perform viral marketing on Facebook. Many people view groups as “Bumper Stickers”.facebook.

Based in Vancouver. Stevens was unaware of using marketing tactics that are provided online. this article is essential to find out the speed of growth in business by using Facebook as a marketing tool. Now her business is blooming because of her effort and believing in online marketing and advertising (Retrieved from: http://www. but due to his friend encouragement she learnt all the possible to ways to market her company products through web. This article will help to strengthen the topic as it demonstrates the success rate of promoting products and services through internet marketing. Vancouver Business: Success story One success story which is about an entrepreneur who worked hard to develop a successful and profitable e-business is Sandy Stevens of Sandy‟s Home-style Baking Company. .3. thus.Facebook: a new image of marketing 8 4. In terms of expenses. she spent a small portion of her money to create a platform where people can get information easily. Facebook is a part of internet. This is a good example of how getting customers in an efficient and effective way. Being healthy to channel her love of baking and sweets into a viable career. Canada.com/2010/06/anyone-can-do-it-small-e-business-success-stories/). She done her own web designing and she also created a link with newspapers with the help of search engines like Yahoo! and Google.biz2success. Stevens has experienced a great deal of success over the short time her e-business has been running.

all the research articles are deliberated to be resourceful for the research.4. Branding a product through web is an opportunity for those businesses who would like to increase to increase their brand value (Steven Holzner. 2009). the author is primarily focused on the way to get attention of online customers and the rest of the articles are all about active Facebook users‟ signals innovativeness of brand. and of how it is giving the consumer increasingly more power while rapidly changing the real face of marketing. Methodology There has been quite a buzz about social media currently. Therefore. Furthermore. Overall. Critique and Analyze The most vivacious part of this research is to provide a theory or a model that proves the effectiveness of Facebook marketing. analyzing whether Twitter was a valid marketing . Proposed Methodology 5. these are some literatures which are essential for researching on effectiveness level of Facebook marketing. approach and style of a product or service that is being marketed by the company. Mari Smith. Lastly. I found myself very captivated by this sensation. They had conducted quantitative research. it also shows how it is essential for local businesses. it elucidates on viral marketing and its practices.1. It covers branding. 5. 2010).Facebook: a new image of marketing 9 4. Facebook Company. but was soon to realize that this open-ended belief in the influence of social media lacked some very fundamental quantitative research. I decided to fill this breach and found a great source of inspiration reading Kocken & Skoghagen (2009). it articulates on the success stories of some business who already adapted internet marketing as their marketing tool (Chris Treadaway. In the first article.

The friend list is a necessary deterrent in order to simulate a news feed (i. . The experiment will be started by ideating four fictive brands.e.e. I chose to follow this experiment design despite the difficulties attached with involving a rather big test-group into a relatively time-consuming study. The study is of underlying character. My choice was greatly influenced by the fact that Kocken & Skoghagen (2009) had used a similar design. Moreover.e. Inspired by Kocken & Skoghagen (2009) a deductive approach is to be applied in the research. With the conviction that there are many similarities between Twitter and Facebook I decided to perform an equivalent study on Facebook. one for each brand) in order to follow and asked to create one friend list consisting of all fan pages he/she will be assigned. Status updates will be prepared and would be posted during the study. and creating all the necessary fan pages.Facebook: a new image of marketing 10 platform and how it should be used. The participants will be divided into four groups. Respondents will be given four specific brands (i. thus certifying that none of the respondents would be aware with them. I will open up for an interesting comparison between Facebook and Twitter as marketing channels. fan pages) to follow on Facebook during one week and were thereafter will be asked to answer a survey. one of the sections of Faceobok) and make sure that all status updates I will like the respondents to perceive must be noticed. being that the objective is to find a connection between the acquaintance of a brand on Facebook and certain effects on consumer comportment and discernment of brand associations. I am hoping that by using a similar design as Kocken & Skoghagen (2009). Each respondent will be given four fan pages (i. A quantitative study will be held by simulating a realistic environment which I believe to obtain more general results. which had already been proved to be successful.

An exact same survey will be given to all the respondents. . a survey will be distributed to all participants through the Facebook-mail. Nevertheless. This will help to reduce the time period in order to pass between the experiment and the survey as that could have biased the study.2.com). The participants will be given one week to answer the survey before they will get disregarded from the study. similar to those asked by Kocken and Skoghagen (2009) in Twitter marketing. covering all the four brands examined. Participants Since the study would require some involvement from the participants I realized that it would be challenging to influence people to participate unless if I have any kind of personal relationship with them. Questions in the survey will be concerning the effectiveness of Facebook marketing. The respondents of this study will be students of 20 to 30 years of age.Facebook: a new image of marketing 11 After the experiment. That is the reason why I decided to recruit participants to my study amongst own social networks.surveymonkey. The target of this study is to gather almost 300 people who are interested in participating to this study. being part of the target group I will be involving a sample that is relatively representative with regards to the objectives of the study. 5. Most of the participants will be asked to become fan of selected fan pages. Most of the questions will be standard where respondents will be asked to determine how well they agreed with some given assertions. The survey was created with a survey-tool available from the website of Survey Monkey (www. After this procedure I will be giving out a survey to all the fans.

I decided to send them an e-mail. According to them any information from their company is confidential and cannot be used in any research without their authorization. So.e.3. Other issue will be the sample that will be collected within the same network (i. requesting that they will allow me to gather appropriate information directly from their website. . Ethical Issues All the sources and references are open and accessible through the web except information gathered directly from the company itself is not accessible. students of Vancouver) and this may have inhibited reliability of the scores.Facebook: a new image of marketing 12 5.

Analyze and write report collection 2-30 March 2011 Two weeks Two weeks 7.e. Process Data and make End of each month of data Five weeks preliminary interpretation 6. 16th December 2010 . fan pages) march 2011 5.1st Ten weeks surveys. Literature Review 3.Facebook: a new image of marketing 13 6. Final Research proposal and submit for clearance 2. Methodology 4. Collect Data Dates 3-11 November 2010 Time Required One week 22-30 November 2010 5-15 December 2010 One week Three weeks (i. Final Thesis submission 26th April 2011 – 15th May 2011 Three weeks . Publish and discuss work 6-25 April 2011 findings 8. Project Work Plan and Deliverables Tasks to be performed 1.

Chicago: Que Publishing. Modig.W.com/press/info. Facebook (Firm) (2010).php?statistics. J. Thousand Oaks. Facebook marketing : leverage social media to grow your business.wikipedia.facebook. p. J. press information. Research design. Facebook web-page. Stockholm School of Economics. quantitative and mixed methods approach.0: Relationship marketing for the Facebook generation”.org/wiki/Criticism_of_Facebook. 9. 15 May 2010     http://www. J. (2010).facebook.wikipedia. Issue 3. Erlandsson. CA: Sage. Manuscript. Journal of Direct.com http://www. Mari Smith. 245-250. . E.clickrmedia.Facebook: a new image of marketing 14 7. Facebook marketing: an hour a day.org/wiki/Facebook http://en. Vol. Cote. References Colliander.com/services/social-media-marketing/facebook http://en. “Speed or Distance”. (2003). Data and Digital Marketing Practice. Meadows-Klue (2007). Chris Treadaway. S. Indianapolis: Wiley Publishing. Steven Holzner (2009). Qualitative. Creswell. http://www. “Falling in Love 2.

hhs.html  http://news.au/breaking-news-technology/paypal-to-become-a-way-topay-for-facebook-ads-20100219-oj88.net/search-engine-optimization-blog/social-media/viralmarketing-on-facebook-7-points-you-just-cannot-neglect/ .net/maemae21/social-ethical-issues-of-informationsystems-facebook  http://www.facebook.slideshare.sagepub.com/ http://arc.com.com/2010/06/anyone-can-do-it-small-e-business-successstories/  http://sem-group.html  http://sem-group.se/download.churchofcustomer.smh.com/research/QualitativeVersusQuantitativeResearch.Facebook: a new image of marketing 15     http://whizkidkonnect.net/search-engine-optimization-blog/social-media/viralmarketing-on-facebook-7-points-you-just-cannot-neglect/     http://wilderdom.insidefacebook.biz2success.net/ http://www.com/upm-data/10982_Chapter_4.com/2007/12/09/inside-facebook-marketing-bible-24ways-to-market-your-brand-company-product-or-service-in-facebook/   http://www.aspx?MediumId=947 http://netbrands.pdf http://www.html http://hbr.org/2010/03/one-cafe-chains-facebook-experiment/ar/1 http://www.com/pages/Viral-marketing-tips/92274993058 http://www.com/2009/10/facebook-fan-pages-are-thefuture.

com) . Do you normally click on Facebook Ads? Sometimes Several Times Never (Retrieved from: www. Which social networking website is considered to be a best tool for marketing? Which social networking website is considered to be a best tool for marketing? Facebook MySpace Twitter 2. How frequently do you log into Facebook? Daily Monthly Several times a day Weekly 4.surveymonkey. Is Facebook an effective marketing tool? Yes Maybe No 3.Facebook: a new image of marketing 16 8. Appendix Research Survey: Facebook Marketing 1.

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