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A TECHNICAL PAPER PRESENTATION ON ROLE OF SOCIAL MEDIA ADVERTISING IN TODAYS MARKETING STRATEGIES BY TEAM- 6 MBA BU 2ND SEMESTER 27/05/2011

PRESENTED BY TUSHAR MITTAL SRUTHI. V SNEHIL MISHRA TEJESWINI A.Y SRIKANTH USANEE (Under Sincere Guidance of) Mrs. R. Shashikala

ABSTRACT Social media networks (SMNs), such as facebook, MySpace, and LinkedIn, changed internet from a web of contents into a web of people so called social web. Although people enjoyed their great facilities for connecting friends or business associates, what SMW actually means still left to be a question: as a phenomenon emerges spontaneously, they share common features with conventional websites. Therefore, it may not be easy to draw a solid boundary between them. On the other hand, various new services based on SMWs exploded on the internet such as twitter and dig. This paper attempted to understand how social network advertisements are influencing the people. Since SMW is a rapidly evolving research area, this survey also addresses its notable challenges, technical issues, and future research agenda. Finally, relevant implications and recommendations are discussed. A study was conducted on the basis of structured questionnaire distrubuted within the Bangalore. In this survey 110 people were contacted in that more people are youngster. We found that more respondents use facebook compare to other social media website. More people agree that using social media improves their quality of life and it is the way to enjoy and relax. We found that majority of the respondents recommend their friends to participate in SMW. And also they are influenced by SMW advertisements and feel that SMW is a valuable and the convenient source of information about products and brands. Many respondents said that they make purchase intentions and purchase the brand which is advertised on SMW. However majority of them still feel there are certain security risks on these websites. Index TermsSocial media, advertisements, consumer behavior, perception, face book.

INTRODUCTION Social media are media for social interaction, using highly accessible and scalable communication techniques. Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue. Social Media is a popular mode for social communication. The 21st century uses social media networking in their day to day life. In the busy urban life, people dont have time to meet or even call up their near and dear ones. Social media helps to bridge this gap. Millions of youngsters use social media websites to search their Friends online and communicate with them, chat, share information, videos and photos. People seek to meet new people through social media, who share common interests and aspirations. Visiting a social networking site has become a habit for most youth, one which they cannot easily give up. This growing importance of social media has translated into its increasing use in marketing also. In todays competitive world, brands are fighting for space in the minds of consumers. Though the traditional modes of advertising and marketing like television, print media and outdoor media still contribute to a major chunk of the advertising budget, they cannot be solely relied upon to ensure reach to the target audience. Using social media like blogs and networking sites for marketing of products is fast increasing its importance. Social media marketing is the latest fad and here to stay. With sites like Face book, Orkut, LinkedIn, Twitter, You tube, etc. attracts more than 5 million users every day. Having a presence on these sites is a must for all marketing organizations. Besides attracting a large number of prospective customers, the cost of social media for advertising is comparatively much lower than the other mass media options. Hence it is a value for money proposition. Social media websites help generate interest in the brand and also to build trust in the company. This goes a long way in the brand building exercise. Besides, one can reach the relevant target audience and avoid clutter. It helps the company stay in constant touch with its customers, know their preferences and upgrade their products and services accordingly. It gives them enough room to receive prompt feedback from them. It thus leads to one on one interaction, leading to customer satisfaction. A satisfied customer spreads positive word of mouth for the brand and thus enhances the brand equity. All in all, it helps a company increase awareness of its brand, generate leads, build its customer base, improve sales and market share. If planned and executed properly, social media becomes a very cost effective mode of online promotions. A social networking service is an online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, e.g., who share interests and/or activities. A social network service essentially consists of a representation of each user (often a profile), his/her social links, and a variety of additional services. Most social network services

are web based and provide means for users to interact over the internet, such as email and instant messaging. Online community services are sometimes considered as a social network service, though in a broader sense, social network service usually means an individualcentered service whereas online community services are group-centered. Social networking sites allow users to share ideas, activities, events, and interests within their individual networks.

HISTORY All the technologies listed above are not new to the Web users who had been surfing during the last ten years, but today we label social networking sites those which these technologies in commercial and non-commercial ways. the Web reinvented

Early social networking sites, like Classmates.com (used to find, connect and keep in touch with old school friends), go back to 1995, while recent phenomenon, such as Facebook and MySpace, go back to 2003. In the figure that follows there is a timeline (it starts from 1997) where it is possible to increasing number of social networking sites during the last four/five years. It will be remind that not all these Web sites constitutes real new service, but in many cases only a marketing strategy adopted to re-launch certain brands. note the useful to they are

IMPORTANCE OF SOCIAL NETWORKING One of the newest and hottest internet activities now is Social Networking. It is one of the simplest ways to build online communities of people who share the same interests. At Candid, we understand the importance of social networking, as it helps boost ranking opportunities and attract the target audience's attention. The social network websites (also known as Social Sites) offer a wide range of services such as:

Blogging Messaging (Email, IM, Chat Room) Sharing Photos and Videos Events Organization Group Discussion News Publishing Classified Applications

In the past few years, the number of social sites has increased drastically. Some of the most popular sites nowadays are Facebook, Myspace, Orkut, Twitter and more. According to Alexa Ranking the top 10 social sites are:

Facebook Myspace Twitter Flixster LinkedIn Tagged Classmates my Yearbook Livejournal Imeem

REASONS FOR SOCIAL MEDIA NETWORK Here are some of the main reasons behind the popularity of online social networking: 1. 2. 3. 4. Lack of time. Allow people to be more open. Learn and share from others in a fast paced environment. A new way to find content.

Reports suggest that the power of social networking is still spreading around. The process behind these social sites is that massive amount of people visit these sites, who later tell their friends to create an account on the site and the process continues. Facebook is probably so popular, because of the massive amounts of teenagers that go on the site. Those teenagers probably tell their friends to get a Facebook account, you have a domino effect. The social networking sites allow you to keep in touch with your friends from work, universities and other sources. It helps you build your own network and keep track of every update of your friends. The growth of a social site greatly depends on the applications, games and other activities available on it. In short, this application is all about sharing and communication that helps in sharing and communication. In simple words, social networking sites help people pass their free time and have some fun. SHARE OF EACH MEDIA

EXAMPLE OF SOME SOCIAL NETWORK SERVICES

POPULATION OF SOCIAL NETWORKS WORLD WIDE Social networks are now part of our life. We need social networks to connect with family and friends, share, get information and do many more. Facebook is the largest social network with 640 plus million users. The next largest social network is Qzone of China, most people not aware of this. Qzone has around 480 million users and its popular only in China. Here is a world map of social networks with more surprises.

LITERATURE REVIEW
1. MANUFACTURER OPPORTUNITIES IN THE SOCIAL MEDIA WORLD; MAY

17, 2011 AUTHOR; KRIS Article; Manufacturer Opportunities in the Social Media World on Technorati. Kris agreed that social media advertising is effectively influencing the customer. He finds that majority of people who pick a services based on recommendation by their friends. So he concluded that social media advertising are more beneficial to the manufacturer to give the advertisement. 2. Murdough (2009) have positively agreed on the potential of social media but like any other marketing tool it is difficult to gauge the kind of impact that it lays on the masses.
3. According to Winterberg (2010), social media websites like Facebook, LinkedIn, and

Twitter come with unbelievable techniques to communicate with family, colleagues and friends. Benson, Filippaios, & Morgan (2010) have studied the usage of social networks in career development of students and also building the relationship with their employers and have concluded on better understanding of motivations as an effective application of these networks on businesses. 4. Backer (2010) have investigated the usage pattern in adoption of new technologies like Facebook and Smart phones on students and found that such applications create a sense of motivation and responsibility as well as it enriches their learning experiences. 5. Donna and Fodor (2010) have found out that instead of using companies investment for calculation of returns on investment, managers must assess consumer motivations for using social media and measure customers investments in calculation of ROI. 6. Sara Tye (2010) have analysed the impact of advances in technology and how it transformed the traditional business procedures in communicating to their target audience. 7. Chan & Prendergast (2007) have perceived Materialism and social comparison as important issues, amongst adolescents and found that Social comparison with friends and with media figures were both positive predictors of materialism.

8. Influence of social media marketing on brand choice behavior among Youth in India: an empirical study.(28th march 2011) Author:Bernadette DSilva, Roshani Bhupatni, Sweta Menon. Journal:International conference on Technology and business management. This study indicate that social media is a very important tool for networking among youngsters. Youth are increasingly using these websites to stay connected with their friends and family, also in building professional contacts. Social media helps in creating brand awareness and brand preference among the consumers and is the cheapest medium for seeking information. Hence it is widely used by majority of customers for evaluations of brands and products. There is an increasing trend among youngsters to buy products online through these websites.

RESEARCH METHODOLOGY Research Objectives


1. The basic objective of the paper is to understand the usage pattern of social media among

individuals of different age groups in the city of Bangalore.


2. To understand the consumer preference for different social media websites. 3. To measure the awareness of consumers about social media advertising. 4. To analyze consumer perception of usefulness of information available on social

networking sites.
5. It also aims at assessing the influence of social media advertising on the consumer

buying behavior. Data Collection Primary data was collected through a structured questionnaire that was distributed among youth in city of Bangalore. The questionnaire contained multiple choice questions as well as it also incorporated various parameters that were identified for analyzing the preferences of youngsters towards various social media websites. Sample Size Primary research was done through distribution of structured questionnaires amongst 110 individuals in the city of Bangalore on 26th May 2011. Data Analysis

The research is basically focused on the understanding the usage pattern of youth and their preference towards various social media websites. The data was analyzed by using statistical package SPSS 16.

Data Analysis and Interpretation


Descriptive Statistics
Data collected was analyzed using SPSS 16.0 version. Descriptive Statistics outlining the breakdown of the age, gender the most often picked factors are given below. One has to be cautious in taking these results at face value, as the results of descriptive statistics can change with a change in the sample group. Descriptive statistics are given below: DEMOGRAPHICS The final sample consists of 110 valid respondents.
Gender Frequency Valid Male Female Total 66 44 110 Percent 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0

According to the survey, majority of the respondents were male i.e. 60 percent and remaining 40 percent were female respondents.

Age Education Valid 18-24 25-29 30-40 Total

Frequency 94 9 7 110

Percent 85.5 8.2 6.4 100.0

Valid Percent 85.5 8.2 6.4 100.0

Cumulative Percent 85.5 93.6 100.0

According to the survey majority of the respondents were between the age group of 18-24 years i.e. 85.5 percent, 8.2 percent were between 25-29 years and 6.4 percent were above 30 years age group.

Frequency Valid UG G PG Total 57 14 39 110

Percent 51.8 12.7 35.5 100.0

Valid Percent 51.8 12.7 35.5 100.0

Cumulative Percent 51.8 64.5 100.0

According to the survey 51.8 percent respondents were Undergraduates, 12.7 percent were graduates and 35.5 percent were post graduates.
Occupation Frequency Valid Student Housewife Employees Total 95 1 14 110 Percent 86.4 .9 12.7 100.0 Valid Percent 86.4 .9 12.7 100.0 Cumulative Percent 86.4 87.3 100.0

According to the survey 86.4 percent were students, 0.9 percent were housewife and remaining 12.7 percent were employed people.

CONSUMER PREFERENCE Mean Rank SMW Face book Orkut Linkedln Twitter Minimum 1.00 1.00 1.00 1.00 Maximum 5.00 5.00 6.00 5.00 Mean 1.4455 2.7818 3.2455 3.2727 Std. Deviation 1.15406 1.11192 0.91055 1.27004

According to the survey, the most preferred SMW is Face book and then comes the Orkut, the Linkedln and the Twitter.

USAGE PATTERN OF SMW


FREQUENCY Frequency Valid Every day 2 or more per week once in a week once in a month Total 71 24 9 6 110 Percent 64.5 21.8 8.2 5.5 100.0 Valid Percent 64.5 21.8 8.2 5.5 100.0 Cumulative Percent 64.5 86.4 94.5 100.0

According to the survey, 64.4 percent of the people use the social media websites on daily basis and very few i.e. 5.5 percent operate it once in a month. TIME SPENT ON DAILY BASIS
Frequency Valid 30min 1hr 2hr >2hrs Total 56 38 6 10 110 Percent 50.9 34.5 5.5 9.1 100.0 Valid Percent 50.9 34.5 5.5 9.1 100.0 Cumulative Percent 50.9 85.5 90.9 100.0

According to the survey 50.9 percent of people use these sites for 30 minutes once they log in and 9.1 percent even use it for more then 2 hours every time. PURPOSE OF VISIT
Frequency Valid profile viewing Gaming downloading videos Chatting getting knowledge Recruitment connecting with friends Total 18 7 11 38 9 1 26 110 Percent 16.4 6.4 10.0 34.5 8.2 .9 23.6 100.0 Valid Percent 16.4 6.4 10.0 34.5 8.2 .9 23.6 100.0 Cumulative Percent 16.4 22.7 32.7 67.3 75.5 76.4 100.0

According to the survey 34.5 percent of people use these sites for chatting, 23.6 percent for connecting with friends and 0.9 percent use it for recruitment.

CUSTOMER PERCEPTION OF SMW ADS


1. IMPROVES QUALITY OF LIFE
P1 Frequency Valid strongly disagree Disagree Neutral Agree strongly agree Total 14 17 26 43 10 110 Percent 12.7 15.5 23.6 39.1 9.1 100.0 Valid Percent 12.7 15.5 23.6 39.1 9.1 100.0 Cumulative Percent 12.7 28.2 51.8 90.9 100.0

According to the survey 39.1 percent were agree to this fact and 9.1 percent were strongly agree. 23.6 percent were neutral. Also 15.5 percent disagree to this fact and 12.7 percent strongly disagree that it helps in improving the quality of life. 2. WAY TO ENJOY OR RELAX

P2 Frequency Valid strongly disagree Disagree Neutral Agree strongly agree Total 7 5 29 53 16 110 Percent 6.4 4.5 26.4 48.2 14.5 100.0 Valid Percent 6.4 4.5 26.4 48.2 14.5 100.0 Cumulative Percent 6.4 10.9 37.3 85.5 100.0

According to the survey 48.2 percent were agree to this fact and 14.5 percent were strongly agree. 26.4 percent were neutral. Also 4.5 percent disagree to this fact and 6.4 percent strongly disagree that it helps in enjoying the life. 3. POSITIVE FEEDBACK TO FRIENDS
P3 Frequency Valid strongly disagree Disagree Neutral Agree strongly agree Total 8 13 35 45 9 110 Percent 7.3 11.8 31.8 40.9 8.2 100.0 Valid Percent 7.3 11.8 31.8 40.9 8.2 100.0 Cumulative Percent 7.3 19.1 50.9 91.8 100.0

According to the survey 40.9 percent were agree to this fact and 8.2 percent were strongly agree. 31.8 percent were neutral. Also 11.8 percent disagree to this fact and 7.3 percent strongly disagree that they will encourage their friends to participate in SMW. 4. ADS ARE VALUABLE

P4 Frequency Valid strongly disagree Disagree Neutral Agree strongly agree Total 14 21 24 43 8 110 Percent 12.7 19.1 21.8 39.1 7.3 100.0 Valid Percent 12.7 19.1 21.8 39.1 7.3 100.0 Cumulative Percent 12.7 31.8 53.6 92.7 100.0

According to the survey 39.1 percent were agree to this fact and 7.3 percent were strongly agree. 21.8 percent were neutral. Also 19.1 percent disagree to this fact and 12.7 percent strongly disagree that SMW gives valuable information about product and services. 5. CONVENIENT SOURCE OF INFORMATION
P5 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 8 30 26 36 10 110 Percent 7.3 27.3 23.6 32.7 9.1 100.0 Valid Percent 7.3 27.3 23.6 32.7 9.1 100.0 Cumulative Percent 7.3 34.5 58.2 90.9 100.0

According to the survey 32.7 percent were agree to this fact and 9.1 percent were strongly agree. 23.6 percent were neutral. Also 27.3 percent disagree to this fact and 7.3 percent strongly disagree that it is a convenient source of information about different product and services. 6. SECURITY

P6 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 17 26 34 30 3 110 Percent 15.5 23.6 30.9 27.3 2.7 100.0 Valid Percent 15.5 23.6 30.9 27.3 2.7 100.0 Cumulative Percent 15.5 39.1 70.0 97.3 100.0

According to the survey 27.3 percent were agree to this fact and 2.7 percent were strongly agree. 30.9 percent were neutral. Also 23.6 percent disagree to this fact and 15.5 percent strongly disagree that it is safe to provide sensitive information to SMW websites. 7. LIKING OF COMPANYS PROFILE
P7 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 7 21 44 30 8 110 Percent 6.4 19.1 40.0 27.3 7.3 100.0 Valid Percent 6.4 19.1 40.0 27.3 7.3 100.0 Cumulative Percent 6.4 25.5 65.5 92.7 100.0

According to the survey 27.3 percent were agree to this fact and 7.3 percent were strongly agree. 40.0 percent were neutral. Also 19.1 percent disagree to this fact and 6.4 percent strongly disagree that they like companys profile on SMW. 8. PROFILE CREATED BY FANS

P8 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 10 16 42 41 1 110 Percent 9.1 14.5 38.2 37.3 .9 100.0 Valid Percent 9.1 14.5 38.2 37.3 .9 100.0 Cumulative Percent 9.1 23.6 61.8 99.1 100.0

According to the survey 37.3 percent were agree to this fact and 0.9 percent were strongly agree. 38.2 percent were neutral. Also 14.5 percent disagree to this fact and 9.1 percent strongly disagree that they like the profile created by fans. 9. PURCHASE INTENTION
P9 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 9 26 45 26 4 110 Percent 8.2 23.6 40.9 23.6 3.6 100.0 Valid Percent 8.2 23.6 40.9 23.6 3.6 100.0 Cumulative Percent 8.2 31.8 72.7 96.4 100.0

According to the survey 23.6 percent were agree to this fact and 3.6 percent were strongly agree. 40.9 percent were neutral. Also 23.6 percent disagree to this fact and 8.2 percent strongly disagree that purchase intention is created by seeing the ads on SMW.

10. BRANDS ADVERTISEMENTS

P10 Frequency Valid strongly disagree disagree neutral agree strongly agree Total 10 29 42 26 3 110 Percent 9.1 26.4 38.2 23.6 2.7 100.0 Valid Percent 9.1 26.4 38.2 23.6 2.7 100.0 Cumulative Percent 9.1 35.5 73.6 97.3 100.0

According to the survey 23.6 percent were agree to this fact and 2.7 percent were strongly agree. 38.2 percent were neutral. Also 26.4 percent disagree to this fact and 9.1 percent strongly disagree that they like the purchasing brands advertised on SMW.

Summary of findings

60% of the respondents are male and rest of 40% are female. 85.5% of the respondents are between the age group of 18-24years. 8.2% between 25-29 years, and 6.4% are above 30years. 51.8% of the respondents are under graduate and 35.5% are post graduate, and 12.7% are graduate. 86.4% of the respondents are students,12.7% are employed and 9% are housewife. 91.8% of the respondents are using facebook. 39.1% of the respondents are agreed that SMW improves their quality of life, 23.6% are neutral, and 15.5% disagree. 48.2% of the respondents are agreed that SMW is the way to enjoy myself. 40.2% of the respondents are encourage the friends to participate in SMW. 39.1% of the respondents are agreed that SMWads gives the valuable source of product/service information. 32.7% of the respondents are agreed that SMWads are convenient source of the product/service information. 30.9% of the respondents are neutral in secure in providing sensitive information to the SMW. 40.9% of the respondents are neutral to make purchase intention of those brands. 38.2% of the respondents are neutral in purchasing brand advertisement on SMW.

Recommendation

As per our findings we can see that 84.5% are using and shown their preference to use

facebook in comparison to other SMW. So face book being the leading one to maintain the position and look out for the competition. Majority of the respondents use SMW for chatting and getting connected with friends and family. Therefore it acts as an important tool of viral marketing and marketers especially targeting at youngsters to invest in this media. Study found that SMW is a valuable and convenient source of information. Therefore marketers to encourage more of their brand discussions on these websites. Some of the respondents even make purchase intention and do purchase the products and brands which are advertised on SMW. Therefore todays marketers use it as an important tool of their promotional mix and allocate resources accordingly . However still many people feel that online sites are not safer to provide the sensitive information like debit and credit card details. Therefore necessary actions to be taken by website owners and marketers in making sure that consumer data is kept confidential and not misused. Government can also take initiatives in tightening the cyber laws and reducing cyber crimes thereby encouraging the E-commerce which is the booming industry in India now.

LIMITATIONS OF STUDY 1. The research was conducted only in Bangalore inside & outside DSI campus. 2. Sample size of 110 respondents was too small. 3. The data collected may not be 100% authentic due to respondents bias.

CONCLUSION Results from the analysis indicate that social media is a very important tool for networking among youngsters. Youth are increasingly using these websites to stay connected with their friends and family. These websites also help in building professional contacts and provides the user with various networking applications that makes them hooked on to these social media websites. Unique features of social media websites like Facebook, Twitter etc have created huge impetus on the communication platform. Social media is also used as a marketing tool in creating brand awareness and brand preference among the consumers. Social media is the cheapest medium for seeking information. Hence it is widely used by majority of customers for evaluations of brands and products. There is an increasing trend among youngsters to buy products online through these websites. Marketers have realized the importance of social media website as an essential component of integrated marketing communications. Every company aims to have their presence felt on these websites for the sheer reach to the target customers. Companies with their promotional strategies advertise their brands on social media websites so as to influence the brand preference among

the youth. It also encourages constant interaction with the customers, gaining an insight on their likes and preferences and problems associated with the product. This helps the companies to take corrective measures in a timely manner and modify their products as per the customer needs. It can be used as a growing platform for launching new products. This ultimately can lead to higher sales and helps in increasing the market share of the product. REFRENCE http://www.candidinfo.com http://technified.net/internet/social-networks-world-wide/555 http://www.google.com http://www.wikipedia.com http://www.fabernovel.com

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