POLYTECHNIC UNIVERSITY of BUCHAREST [604837]

POLYTECHNIC UNIVERSITY of BUCHAREST
Faculty of Entrepreneurship, Business Engineering and
Management
Master Degree Study Program:
Management of the Digital Enterprise

Graduation Thesis

Scientific Research Coordi nator,
Prof. dr.ing. Anca Alexandra Purcarea Master Student: [anonimizat]
2017

POLYTECHNIC UNIVERSITY of BUCHAREST
Faculty of Entrepreneurship, Business Engineering and
Management
Master Degree Study Program:
Management of the Digital Enterprise

Graduation Thesis
Innovative IT Solutions in Marketing

Scientific Research Coordi nator,
Prof. dr.ing. Anca Alexandra Purcare Master Student: [anonimizat]
2017

CONTENTS

Introduction ……………………………………………………………………………………………. pag 1
Chapter 1. Classic Marketing versus eMarketing ……………… …………………….. pag 3
1.1. The Marketing concept ……………………………. …………………………………. …….. .. pag 3
1.2. Online Marketing ……………………………………………………………………………….. . pag 7
Chapter 2. The Marketing Mix – Promotion ………… …………………………. ……. pag 11
2.1. The Marketing Mix ……………..………………..…………………………… pag 11
2.2. Promotion ………….………….……………………………… .…… …………… pag 15
Chapter 3. Social Media Marketing ……………… …………………….. …………… …… pag 21
3.1. Social Media Marketing Concept ………………….. ………………………… …………. pag 2 1
3.2. Facebook Marketing ……………………………………………………. ……………………. pag 32
Chapter 4 . Social Media Statistics in 2016 ………… ……………………………… ……. pag 36
4.1. Social Media Statistics ……..………………..……………………………..… pag 36
4.2. Facebook Statistics . ………….……………………………… .…… …………… pag 42
Chapter 5. The role of marketing research ………………………… ………………….. pag 45
5.1. Marketing research ……………… ………. ………………………… ……………. ……… pag 45
5.2. The steps of research design ………………………………………….. …………………… pag 51
Chapter 6 . Conducting the Marketing Research ………………………………. ……. pag 64
6.1. The marketing research …..………………..………………………………..… pag 64
6.2. The survey ………..………….……………………………… .…… …………… pag 66

Conclusions ……………..………………………….. ………………… …………… pag 73
Bibliogra phy ……………..………………………… ………………… …………… pag 74

1
Introduction

This paper entitled ― Innovative IT Solutions in Marketing ‖ is the graduation
thesis that I have done in my master degree program from the Faculty of
Entrepreneurship, Business Engineering and Management at Polytechnic University of
Bucharest under the guidance of teacher Anca Purcarea .
I chose to study this subject because it‘s something every company uses
nowadays, it has evolved and it ‘s continuously evolving, it‘s a beneficial combination
between two subjects taught in every faculty from this domain: marketing and
electronic commerce.
The documents for elaborating this paper are based on literature refe rences.
The set objectives for t his paper are:
 to raise awareness of how used eMarketing is in the latest years
 to show that promotion is the most important from the four P‘s
 to show how eMarketing helps for a better and easier promotion
 to show the role and limitations of marketing res earch
 to explain the purpose of the research
 to detail the steps of the research design
 to find out what is the most used marketing method
This scientific research is structured in six chapters.
In the first chapter I made a short presentation of the marke ting concept and its
functions and an introduction in online marketing and its forms.
In the second chapter I made a short presentati on of the marketing mix and I
elaborated the promotion part of the mix.

2
In the third chapter I made a short presentation of the social media marketing
concept where I presented the most important web sites and I also showed how you
can use marketing on Facebook.
In the fourth chapter I presented a list of social media statistics from 2016 and
also a particular case about Faceb ook statistics.
In the fifth chapter I made a short presentation of the marketing research
concept where I presented the eight steps of research design.
In the sixth chapter I presented the marketing research I initiated and I also
attached the survey in the annex .
In the Conclusions chapter I pointed out that marketing research is a very
important step in a company‘s lifetime and it should not be neglected nor left outside
before deciding the marketing strategies.
Marketing is the knowledge and the art of convincing clients to buy. The
double purpose of marketing is to attract new clients through the promise of superior
value and to keep and grow the present clients by giving them satisfaction.
Marketing research is "the process or set of processes that lin ks the producers,
customers, and end users to the marketer through infor mation – information used to
identify and define marketing opportunities and problems; generate, refine, and
evaluate marketing actions; monitor marketing performance; and improve
unde rstanding of marketing as a process.

3
Chapter 1. Classic Marketing versus eMarketing
1.1. The Marketing concept
Representing a way of thinking and action within the market, marketing
provides a systemic flow of activities linking production to consumption, constituting –
more than an arsenal of methods and techniques – field of young science in the field
theory of scientific management of economic and social phenomena and processes.
The term marketing is of Anglo -Saxon origin (representing the p resent participle of
the verb "to market" that has the significance to buy and sell, to conduct market
transactions). Its origins are located at the beginning of the twentieth century in the
United States: in 1902, the Bulletin of the University of Michiga n, the introduction of
a university course on the distribution of products is used the expression "various
methods of goods' marketing". Gradually, this term was internationalized. (Manole V.,
M. Stoian, Dorobantu H., 2014, Chapter 1, p.1)
Many people thin k they know what marketing is and what marketers do. In
their conception, marketing has become synonymous with the methods used by
companies to attract customers and convince them to buy their products and / or
services. The marketing department of a firm is regarded as being responsible for
launching new products, the emergence of favorable news articles, conducting market
studies and providing support arguments for those in charge of sales; the marketing
people are expected to collaborate with advertising agencies, analyze and resolve
customer complaints, establish criteria and guidance in choosing new products and
organize campaigns for promoting them, etc. Such an approach reveals that the main
function of marketing would be presenting the company and it s products to potential
customers.
Such an approach regarding marketing is insufficient. Organizations that
consider the department of marketing is only a vehicle toward customers prove they
did not understand sufficiently the essence and purpose of market ing. Marketing has
an extension and complexity much larger and has many more meanings. Elisabeth Hill
and Terry O'Sullivan believe that marketing "is a business philosophy that sees in
satisfying customer needs the key to success in business and recommends
understanding management practices that help identify and resolve customer needs."
This definition of marketing is not unique. Depending on the approach to marketing, it
has been given many definitions; American p rofessor Victor Buell, in his paper
"Marke ting Management: a strategic planning approach" (1984) notes ironically that
there are "so many definitions of marketing as many books are on this subject."
Definitions fall into two categories: those that emphasize the philosophical dimension
and those th at focus on more practical approaches to marketing processes. (Manole V.,
M. Stoian, Dorobantu H. 2014, Chapter 1, p.1)

4
Marketing is managing profitable relationships with customers. The goal of
marketing is to create value for customers and capture value from customers in return.
Marketing , more than any business function, deals with customers. The
simplest definition is: Marketing is managing profitable relationships with customers.
Dual purpose of marketing is to attract new customers by promising superior value
and retain and grow current customers by delivering satisfaction.
Walmart has become the largest retailer in the world a nd the largest company
in the world by delivering on the promise "Save money. Live better. "Nintendo has
went forward on the market of video games under the commitment " Wii would like to
play ", supported by the hugely popular Wii console and a growing li st of popular
games and accessories for all ages. McDonald fulfills its motto "i'm lovin' it' being the
favourite place and way to eat of customers worldwide, giving it a market share
greater than that of the nearest three competitors gathered.
Marketing i s essential for the success of every organization. Large pro profit
companies such as Procter & Gamble, Google, Target, Toyota and Marriott use
marketing. But so do the non -profit organizations, such as colleges, hospitals,
museums, symphony orchestras, an d even churches.
Marketing comes in the name of old and traditional forms: it can be seen in
abundance at the mall and advertisements that fill the television screen, spice
magazines or fill mailboxes. But in recent years, marketers have gathered a number of
new marketing approaches, everything from imaginative sites and online social
networks to mobiles. These new approaches do more than give messages to the
masses. They get direct and personal to humans. Marketers today want to become a
part of people's l ives and enrich their experiences with their brands. Marketing can be
seen everywhere in daily life but it is something more than can be seen with the naked
eye. Behind this stuff it is a massive network of people and activities competing for
people's atte ntion and purchase. (Kotler Ph., 2011, p. 4)
Understanding the object of activity of marketing is very closely related to
knowing its functions. The first attempts to define marketing functions attributed this
statute to the activities that are the subjec t of transfer goods and services from
producers to consumers (users). Thus, Philips and Duncan identified three categories
of marketing functions:
• functions with role of transfer of the title of ownership (purchase and sale);
• functions that involve t he physical distribution of products (handling,
transport, storage);

5
• support functions of the distribution process (standardization, dividing,
dispensing, packaging, financing, insurance, risk taking, obtaining information).
Bates and Parkinson believe that marketing has four functions:
• analysis and forecast, meaning market research;
• development and design of production;
• influencing demand through design, advertising, etc .;
• services: distribution, after -sales.
Kelley identifies two categorie s of functions:
• functions of macromarketing that include:
– traditional functions which include purchase and sale operations and physical
distribution;
– support functions (above);
– social functions;
• functions of micromarketing that include:
– estimating the potential of the organization;
– planning and scheduling the marketing effort;
– organizing and managing the marketing activity;
– evaluating and adopting the marketing effort.
Professor MC Demetrescu claims that within the organization, ma rketing has
only two functions:
• identifying and attracting demand.
• satisfying demand.
(Manole V., M. Stoian, Dorobantu H. 2014, Chapter 1, p. 5)
Lastly, C. Florescu (Florescu et. al., 1992) believes that marketing functions
can be classified or defined as follows:
a. Investigation of market, consumer needs. It is inconceivable to talk of
marketing without referring to activities aimed at investigating markets or analyzing

6
information regarding the market of products / services. By performing this function is
intended primarily to obtain information on potential or present markets, the level of
demand and supply. Also, the scope of investigation should also cover other parts of
the environment to which the organization reports itself to (factors influencing the
market of goods and services). This function should have a permanent character for
most organizations in the private or nonprofit sector. In a way, this function precedes
the other functions of marketing and prepares the conditions for achieving them.
b. The dynamic connection of the organization to its economic and social
environment. This function reflects the new vision of marketing on the relationship
organization -envir onment, the whole activity of an enterprise must constantly be
focused or geared to the demands and rigors of the environment. This function has a
highly dynamic content and includes activities for operative adaptation to the
continuously changing external conditions and also taking advantage of opportunities.
c. Satisfying the needs of the consumer in superior conditions. This function
ensures the finality of the enterprise activity, the social recognition of factor of the
consistency between the products (services) in which its activity materializes and the
needs that are destined to. In short, this function is reflected in a series of steps to
produce only those goods (services) that are needed for consumption, distribute them
in optimal conditions, provi de ample opportunities for choice suitable for all tastes and
preferences, inform consumers on products / services offered. Lastly, the realization of
this function requires educating consumer tastes, creating and inducing the highest
possible accuracy of consumer expectations regarding the products and services
offered.
d. Profit maximization. Fulfilling this function involves, on one hand, a
judicious allocation of resources (investment funds, manufacturing capabilities,
specialists), and on th e other hand, optimization of the production and distribution of
goods. (S. Stanciu, Chapter 1, p.1)

7
1.2. Online Marketing
Marketing Online, also known under the names of Web Marketing,
eMarketing, Internet Marketing or Digital Marketing is an approach to marketing in
which tools, methods and general concepts are used, adapted and expressed according
to the specific, facilities and opportunities offered by online, that we all know as the
general name for the Internet.
We can say that Web marketi ng refers to the marketing (as promotion in
general but not only) of internet products and services. But the concept of internet
marketing is used as a generic concept to whom are assigned other marketing activities
such as: those done through e -mail or ot her "wireless" communication channels;
manage digital customer data through customer relationship management systems
(eCRM) etc.
EMarketing activity is closely linked to the Internet, or more specifically the
Web, both in terms of creativity and in terms o f technical issues (design, development,
promotion and sales). ([ 30])
The forms that marketing can take:
• SEM (Search Engine Marketing) or the marketing of search engine – is a
form of marketing that seeks to promote websites or some websites by increasi ng their
visibility in search engines through display of information in paid areas or by using
specific techniques of website optimization
• SEO (Search Engine Optimization) or optimization for search engines –
means to apply a set of specific techniques and methods in order to improve and
increase the visibility of a website or a web page in search engines without using paid
spaces or ads
• PPC (Pay Per Click) or paying for a click is that branch of SEM which aims
to draw attention of potential customers and direct them to a web property (most often
a website), paying a certain amount for each click which equ als to a visit on that
website
• Social Media Marketing or Marketing through Social Media – is the
process by which the company goes beyond its stric tly commercial barriers and into
the 'social' sphere of customers and potential clients, with the objective to better
understand what are the interests and passions of the users and also their perception
regarding the company products and services, its ima ge and its general or specific
behavior, online or offline

8
• Email Marketing – most often associated in common language with the
Newsletter, it is one if not the most powerful tool available to the organization to
transform a potential customer that the company has already taken contact with, in
buyer. Possibilities for customizat ion of the message, combined with its very precise
targeting ability, can transform email marketing into the most effective form of
marketing
• Referral Marketing – technically, any source that sends visitors to the
company's website is a refferal. Howeve r, we have included in this category all
partnerships established by the company with various web properties (business
partners, magazines, specialists), which direct under one form or another visitors to the
company's domain, without being rewarded direct ly or proportionally with the volume
of directed traffic
• Affiliate marketing – related to Refferal Marketing or affiliate marketing is
that form of marketing where a number of web partners (companies with websites in
complementary areas, blogs) promote t he products or services of the company, which
in turn rewards them for every successful sale
• Inbound marketing – or Permission Marketing is a concept considered
revolutionary, consisting of using a whole series of instruments in the online
environment in order to gain enhanced visibility and attract potential customers who
can have the opportunity to express their desire to interact with the products and
services of the company
• Video marketing – how new Internet enables high transfer speeds at
relativ ely low costs, this form of promotion has become accessible, technically but
also economically. Through video marketing, the company acquires practical
unlimited possibilities of expression and transposition of messages d esigned to achieve
their goals
• Display advertising – often perceived as "ad banners", display advertising is
in fact a form of marketing that can take multiple sides, having practically at its
disposal a wealth of possibilities to present the message (text, image, animation,
video ) and a lso a variety of ways to target potential customers, from displaying
messages on very niche websites, to pursuing areas of very general interest
([30])
What is essential to emphasize is that these shapes presented by eMarketing
should not be perceived as pure and strictly limited manifestations of marketing in the
digital environment. eMarketing occurs most often in a combination of forms and
intensities, so that it is seldom used a single channel, a single technique, a single

9
method of eMarketing. Most often, these forms listed above combine and complement
themselves, overlap, this being essentially the art and science to master, to highlight
the power of eMarketing.
The basic tools that are reached out in eMarketing are:
• web programming – represented essentially by configurations and code
writing in order to track and analyse the data from marketing activities
• graphics – for simple or complex websites, for online shops, for banners
• copyrighting – that has to respect bot h company policy but also specific
technical web requirements
• online PR – a sum of actions and methods meant to enhance the visibility of a
company on the web
• analytics – monitoring, analysis and control of the marketing activity online
and off -line
eMarketing is essential for businesses directly and exclusiv ely related to the
Internet. It i s about online stores, about aggregators of content (news portals, price
comparators, etc.), about those who create content (magazines, bloggers, etc.), that can
exist only in the online environment and naturally reach out in most cases to online
forms of marketing. However, it becomes increasingly obvious, as the internet
achieves an incr easingly important role in the social and professional life of
individuals, com panies and institutions, so that eMarketing becomes a natural and
necessary extension of marketing classical off -line efforts with which it must coexist,
work together.
([30])

10
10 differences that are between classic marketing and emarketing
The following table is a comparison between classic marketing and
emarketing, according to certain criteria:
Table 1.2 .1. 10 differences that are between classic marketing and emarketing
Criteria Classic Marketing eMarketing
Type of
marketing Uniform, structured, clear
(advertising campaigns , servic e
hotline s) Dissected, spread, unclear (status
updates , ad campaigns , blog
articles, community posts,
comments, Twitter messages,
etc.)
Direc tion of
communication Unidirec tional (one to many)
(informa tion sp read by company –
activ e – consumers only listen –
passive) Multidirec tional (many to many)
(both company and consumers
talk and listen – both active )
Scheduling Long -ranging (ad campaigns are
planned both over and for a long
period of time ) Spontan eous (ad campaigns not
planned in detail but reactions to
comments and requests )
Com munication
with consumer Well considered and reviewed
(communication only between
company and consumer – via email,
phone or letter – point of discussion
is kept secret ) Fast, public (reactions to
comments are immediate and
public,anyone can read and join a
discussion )
Availability During working hours (no direct
support beyond regular (8/5)
working hours ) Permanent (24/7) (constant
readiness to react to negative
comments and consumer requests
– replies expected within max. 24
h)
Scop e Specific ( optimized for certain target
audience and markets ) General ( available for anybody,
anywhere – optimiz ed for the
public)
Wealth of
experience Analog (similar successive
campaigns – assured legal position ) Alternati ng, innovativ e (changing
technical requirements ,
innovative marketing concepts –
legal position unassured )
Supervision Consumer protection (marketing
activities supervised mainly by
consumer protection and
competitors ) Users, platforms (marketing
activities supervised by authority
for consumer protection,
competitors, platform operators
and users )
Language Formal, legally safe (strict
‗marketing language‘ , ready -made
full sentences ) Genuine, direct (no ready -made
sentences but personal responses
and short answers )
People involved Marketing department (public
relations department, external
agencies, sales department ) New media marketing department
(social media department, pr
department, every employee and
user, management )
([31])

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Chapter 2. The Marketing Mix – Promotion
2.1. The Marketing Mix
The Marketing Mix is a word of English origin (an abbreviation of the term
"mixture") that defines how to resolve, in view and with the instrumentation of
marketing, a certain practical problem. It involves the selection, combining and
training of the ente rprise's resources, proportions, the dosage in which this is about to
enter into the global effort to reach the desired effects with minimal effort.
The marketing mix can be defined as an instrument to achieve the company's
marketing policy, which consist s of a unitary combination of different marketing
variables in four distinct areas: product, price, distribution and promotion.
The concept of mix comes from the word "mixture", which in English signifies
blend, merge, combining. The creator of the concept of mar keting mix was professor
in Harvard University, Neil Borden, who believes that in the composition of the mix
are the following elements: product development, price development, the adjustment
of brands, distribution channels, direct sales, advertisi ng, promotion at point of sale,
conditioning, shelf display, services, logistics, research and analysis of information
and defined the marketing mix in the following context: "on a market where supply is
superior to the demand, optimum benefit is the unifi cation of the marketing policies".
(Manole V., M. Stoian, H Dorobanțu 2014, Chapter 7, p. 3)
The concept of marketing mix has evolved so that in the current approach, the
importance of the four elements – product, price, distribution (placement) and
promotion – varies depending on the concrete conditions of putting the mix into
practice. Also, in practice, the presence of all elements in order to achieve the mix it is
not mandatory.
As a result of the diversity and complexity of each of the four compo nents of
the mix, at the level of each of them can be developed a so -called submix: product
submix, price submix, distribu tion submix or promotion submix.
American professor Philip Kotler believes that the marketing mix represents
"different levels of mark eting related decisions of the enterprise at a given time."
The implementation of the marketing mix implies following two distinct
phases:
• integrating all information related to the market and their adjoint analysis
with the purpose of pointing out pos sible marketing activities and necessary for the
enterprise policy to adapt to market conditions;

12
• bringing together marketing strategies in a balanced ensemble, through
appropriate dosage of the four policies, in order to meet every demand of the market in
terms of maximum efficiency for the enterprise.
The marketing mix can be also seen as a four -dimensional vector, as follows:
Marketing Mix = Product x Price x Distribution × Promotion
Each of the four dimensions of the mix vector can be selected and ma nipulated
according to the objectives that the company has established at a given time.
The marketing – mix now occupies a central position in marketing theory and
practice, taking into account the precise economic and social conditions in which
economic agents act, regardless of their field of activity; it supports achieving the
goals and marketing strategies in economic practice, forming the operational
component of the marketing concept, representing, at the same time, the system of
marketing tools orie nted to the objective and adequate to the strategy.
Experts say that the lack of correlation which might occur between the
elements of the marketing mix, at a given time, could jeopardize the achievement of
the objectives of the enterprise. In this context , there are inventoried a series of
principles designed to ensure the proper dosage and coherence of the marketing
actions of the enterprise, namely: ensuring coherence between the marketing actions
and the environment of the enterprise; ensuring coherence between the actions of the
company and its human, technical, financial etc. potential; ensuring a dosage of the
interactions of the marketing actions; ensuring coherence of the marketing acti ons
over time etc.
(Manole V., M. Stoian, H Dorobanțu 2014, Cha pter 7, p. 3)
In the following pages we shall take each of the four P‘s of the marketing mix
and elaborate them:
Product
The term "product" is defined as anything, either tangible or intangible, offered
by the firm; as a solution to the needs and wants of the consumer; something that is
profitable or potentially profitable; and a goods or service that meets the requirements
of the various governing offices or society. The two most common ways that p roducts
can differentiate are: c onsumer goods versus indust rial goods, and goods products (i.e.
durables and non -durables) versus service products
Intangible products are service -based, such as the tourism industry, the hotel
industry, and the financial industry. Tangible products are those that have an

13
independen t physical existence. Typical examples of mass -produced, tangible objects
are automobiles and the disposable razor. A less obvious but ubiquitous mass
produced service is a computer operating system.
Every product is subject to a life -cycle that starts wit h its introduction and is
followed by a growth phase, a maturity phase, and finally a period of decline as sales
falls. Marketers must do careful research on the length of the product's life -cycle and
focus their attention on different challenges that aris e as the pr oduct moves through
each stage.
The marketer must also consider the product mix, which includes factors such
as product depth and breadth. Product depth refers to the number of sub -categories of
products a company offers under its broad spectrum category. For example, Ford
Motor Company's prod uct category is automobiles. It s product depth includes sub –
categories such as passenger vehicles, commercial vehicles, transport vehicles, et
cetera. This broad spectrum category is also known as a product line. Product breadth,
on the other hand, refers to the number of product lines a company o ffers.
Marketers should consider how to position the product, how to exploit the
brand, how to exploit the company's resources, and how to configure the product mix
so that each product complements the other. Failure to do so can result in brand
dilution, which is a situation in which a product loses its branded identity, resulting in
decreased sales and perceived quality. The marketer must also consider product
devel opment strategies. ([34])
Placement
Product distribution (or placement) is the process of making a product or
service accessible for use or consumption by a consumer or business user, using direct
means, or using indirect means with intermediaries.
Distribution Types
1. Intensive distribution means the producer's products are stocked in the
majority of outlets. This strategy is common for basic supplies, snack
foods, magazines and soft drink beverages.
2. Selective distribution means that the producer reli es on a few
intermediaries to carry their product. This strategy is commonly observed
for more specialized goods that are carried through specialist dealers, for
example, brands of craft tools, or large appliances.
3. Exclusive distribution means that the pro ducer selects only very few
intermediaries. Exclusive distribution is often characterized by exclusive
dealing where the re -seller carries only that producer's products to the

14
exclusion of all others. This strategy is typical of luxury goods retailers
such as Gucci.
The decision regarding how to distribute a product has, as its foundation, basic
economic concepts, such as utility. Utility represents the advantage or fulfillment a
customer receives from consuming a good or service. Understanding the utility a
consumer expects to receive from a product being offered can lead marketers to the
correct distribution strategy. ([34])
Promotion
The three basi c objectives of promotion are :
1. To present product information to targeted consumers and business
customers.
2. To increase demand among the target market.
3. To differentiate a product and create a brand identity.
A marketer may use advertising, public relations, personal selling, direct
marketing, and sales promotion to achieve these objectives. A promotional mix
specifies how much attention to give each of the five subcategories, and how much
money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity,
positioning, comp etitive retaliations, or creation of a corporate image. ([34])
Price
The price is the amount a customer pays for the product. The concept of price
is in contrast to the concept of value, which is the perceived utility a customer will
receive from a product. Adjusting the price has a profound impact on the marketing
strategy , and depending on the price elasticity of the product, often it will affect the
demand and sales as well. The marketer should set a price that complements the other
elements of the marketing mix. A well chosen price should ensure survival, increase
profit , generate sales, gain market share and establish an appropriate image.
From the marketer's point of view, an efficient price is a price that is very close
to the maximum that customers are prepared to pay. In economic terms, it is a price
that shifts most of the consumer surplus to the producer. A good pricing strategy
would be the one which could balance between the price floor and the price ceiling
and take into account the customer's perceived value. Common pricing strategies
include cost -plus pricing, skimming, penetration pricing, valu e-based pric ing, and
many more. ([ 34])

15
2.2. Promotion
As part of the marketing mix, promotion includes all activities that involve
communicating with the customer about the product and its benefits and features.
Once a c ompany has worked on the product and price elements, it is time to start a
conversation with the consumer about the product. This includes raising awareness
through different mediums to increase sales, as well as to c reate and foster brand
loyalty.
Informa tion provided to the customer at this stage helps them in making
purchase decisions regarding the product. Often, there is substantial cost associated
with promotional activities. But since the result is often an increase in sales or
customer loyalty, ther e is thought to be long term return on this investment. There are
many ends that a company may try to reach through a promotion including but not
limited to an increase in sales, acceptance of new products, brand equity creation and
brand positioning, addr essing competitor actions and rebranding. ([29])
As mentioned above , promotion is the communication aspect of the marketing
mix. It is creating a channel for conversation with the targeted consumer base.
Through promotion, the company aims to attract the c ustomer‘s attention and give
them enough information about the product to foster enough interes t to motivate them
to purchase.
The team tasked with these activities will begin by understanding the dynamics
of the target audience and deciding which modes of promotion are likely to help meet
targets. Once the channel is decided, information from other elements of the mix is
incorporated to ensure that the message sent corresponds to the actual product
features, benefits and user experience. None of the elemen ts of the marketing mix
work in isolation. Instead a unified body of information acts as the source for all
activities within these 4P‘s. The available information is filtered to include those areas
which will be most relevant to the target audience. ([29])
Different organizations have different expectations from their promotional
activities. These expectations are developed into objectives which then shape the
selection and execution of these activities. Some possible objectives of promotion for
any compan y may include:
1. Building Awareness
Often, a product or brand may need to create an identity within the market. For
the most part, this applies to a new company, a new brand or a new product. But often
it may also be needed in times of rebranding or building up a failing product. The aim

16
then is to select those promotional activities that help inform the customer abo ut the
company and the product.
2. Creating Interest
If the customer is already aware of the product or has been made aware
through some activities, it becomes necessary to move them along to actual purchasing
behavior. The aim here is to identify a need that the product fulfills and make sure that
the customer recognizes this need as somethin g that is unfulfilled for them.
3. Providing Information
Somet imes, a company may just need to provide necessary information
regarding the product, its benefits, features or usage to the consumer. This may be the
case if a new product is introduced into the market. Unique features or benefits may
need to be explained . In other cases, a new feature on an existing product may need to
be highlighted. In some cases, such as in instances where environmental impact or
health scares may be in play, information about a change in business practices and
company poli cy may need to be communicated.
4. Stimulate Demand
A company may seek to enhance its sales through promotion. If sales have
been lower than usual, then the aim may be to get them back up to target level by re –
engaging old customers and encouraging new ones to try a prod uct out. In other
instances, the aim may be to increase sales further at certain times of the year such as
near a major holiday. Free demonstrations or special deals m ay be used to reach these
ends.
5. Differentiate product
In situations where there are many competitors in the market, a company may
seek to use promotional activities to differentiate its product in the market and make it
stand out from the crowd. The focus here remains on those features, functionalities or
benefits that may not be offered by a competitor or may not be offered so well.
6. Reinforce the Brand
One basic aim of a promotional activity may be to further strengthen the brand
and its place in the market. This helps turn a first time purchases into a life time
purchaser. This can also help create advocates for the product from within the
customer base. ([29])
Any promotional activity is usually designed with a specific target audience in
mind. The activity is therefore created using messages, cues and information that they

17
will respond to. R ealistically, the major portion of any promotional budget is aimed at
this specific targeted audience. However, there may be important fringe groups who
may have an influence over the intended target or stake in the product. Some of these
fringe groups may include:
1. The Actual Audience – These are the current customers of the product as
well as former customers and any potential new customers. The activity is
created for these people specifically.
2. Influencers – People or organizations that may have their own sphere of
influence over the target audience make up this category. If a positive
impact is made on these people, they may then use this influence to
encourage sales. The media, opinion leaders, Trade asso ciations and special
interest groups are some of these influencers.
3. Distribution Channel Members – The product is handled and provided to
the customer through this channel making them an important category of
targets. A retailer may choose to display a cer tain product in a more
prominent position than the others if they believe in the product and its
benefits.
4. Other Companies – Communicating with other companies may open up
opportunities to collaborate on joint ventures. ([29])
There may often be a tendency to narrow down the focus of promotional
activities to only advertising. Quite the opposite, there are a number of ways to
approach the audience with information about the product. Increasingly, businesses
feel the need to use both one directional and two sided means of communications to
reach the customer.
Through the promotional mix, a company aims to fulfill two basic objectives.
One is to make the customer aware that the product and brand exist. The other is to
persuade them to actually pick this produc t over all others and continue to buy it. [26]
There are five methods that make up a promotional mix. A company may
choose to use one or more of these in harmony to ensure a clear, effective and direct
message reaches the customer. The selection of the por tfolio of activities may depend
on the company‘s marketing and sales strategies and budget alloc ations. These five
methods are:
1. Advertising – This mode of promotion is usually paid, with little or no
personal message. Mass media such as television, radio o r newspapers and
magazines is most often the carrier of these messages. Apart from these,
billboards, posters, web pages, brochures and direct mail also fall in the
same category. While this method has traditionally been one sided,

18
advertisement over new m edia such as the internet may allow for quick
feedback.
2. Public Relations & Sponsorship – PR or publicity tries to increase positive
mention of the product or brand in influential media outlets. These could
include newspapers, magazines, talk shows and new media such as social
networks and blogs. This could also mean allowing super users, or
influencers to test the product and speak positively about it to their peers.
This type of advertisement may or may not be paid. For example,
sponsoring a major event an d increasing brand visibility is a paid action.
Sending free samples to a blogger then depends on their discretion and
opinion and is not usually swayed by payment.
3. Personal Selling – Opposite of the one directional promotional methods,
direct selling conn ects company representatives with the consumer. These
interactions can be in person, over the phone and over email or chat. This
personal contact aims to create a personal relationship between the client
and the brand or product.
4. Direct Marketing – This ch annel targets specific influential potential users
through telemarketing, customized letters, emails and text messages.
5. Sales Promotions – These are usually short term strategic activities which
aim to encourage a surge in sales. These could be ‗buy one ge t one free‘
options, seasonal discounts, contests, samples or even special coupons with
expiration dates. ([29])
Whenever a company sets out to design its promotional mix, it needs to
consider the following points:
1. Stage in the Product Lifecycle – During the beginning of the lifecycle,
there may need to be more aggressive and informational advertising, while
a slowdown in promotions may be seen during the later stages.
2. Nature of the Product – If a product is not new in its usage or function,
there may be less need for information and more focus on brand equity
creation as well as on emotional aspects of the product.
3. The Allocated and Available Budge – A certain total budget is set for
promotional activities and these then need to be designed and e xecuted
within these constraints.
4. Cultural Sensitivity – If a product is to be launched in a new international
market or translated across markets, it becomes imperative to take into
consideration local affiliations and sensitivities. These include both cu ltural
and religious considerations. Often, these issues may even present
themselves within one country.

19
5. Target Market Composition – The people who make up the target market
need to be considered before committing to a promotional mix. If a market
is not t ech savvy, then more traditional means may need to be employed.
Conversely, an internet generation used to instant gratification may need to
be provided more focused and targeted messages.
6. Competitor Actions – The methods a competitor uses need to be ta ken into
account as well. There may not be a need to spend money on a radical
advertising method if a customer is using rudimentary methods for
example. ([29])
A company may use different strategies to promote its products. These can be
broadly categorized as push and pull strategies. Both strategies differ in how the
customer is approached.
Push Strategies
As the name indicates, this is when the product is taken to the customer by the
company. This is mostly used when the product is an impulse purchase or if the
company has an established relationship with the customer base. Companies may sell
directly from their showrooms or at tradeshows etc. Essentially, there is less need to
create an advertising buzz and more to make the product readily available at re tail
outlets and showrooms. Push marketing may focus primarily on short term sales.
Pull Strategies
In the opposite approach, there is an attempt to pull customers towards the
brand or product. Through mass media campaigns to sales promotions and personal
references, a company attempts to create brand loyalty and attractiveness. Pull
strategies may attempt to focus primarily on long term brand loyalty then high sales in
the short term. A lot of media hype and mass campaigns are required to create
sufficient interest and encourage customers to see k out the product on their own.
Most companies will use a mix of these two strategies at different points in
time. ([29])
As briefly mentioned before, different stages of the product life cycle require
different type s of promotional activities and strategies. This will help pr olong the life
of the product.
1. Introduction – At this stage, major promotional campaigns and activities
will be designed and executed. A comprehensive promotional mix will be
designed with full input from the rest of the marketing mix. The aim here is
to provide detailed information about the product, its features and benefits.

20
Special offers and sales promotions may also be used to pull in customers
while in some markets push strategies may be u sed simultaneously
employed.
2. Growth – Once the product is established and accepted, there will be a
shift in strategy from information to more emotional aspects. The aim is to
increase brand awareness, create strong brand equity and foster long term
custom er loyalty.
3. Maturity – By now the market may have matured and there may be stiff
competition and similar products available. Promotional activities will now
turn more persuasive and there may be an attempt to create product
differentiation by highlighting specific benefits an d features that fulfill
needs and are unique.
4. Decline – At this point, promotional activities may wind down to the
occasional reminder that the product exists in an attempt to forestall the
product‘s eventual decline. ([29])

21
Chapter 3 . Social Media Marketing
3.1. Social Media Marketing Concept
Social Media Marketing describes ―an interdisciplinary and cross -functional
concept that uses social media (often in combination with other communications
channels) to achieve organizational goals by creating value for
stakeholders.‖. Companies address several stakeholders through social media
marketing including (potential) customers, (potential) employees, journalists, bloggers
and the general public. On a strategic level, social media marketing includes the
management of the implementation, governance, scope (e.g. more active or passive
use) and the establishment of a firm‘s desired social media culture. This requires
marketers to incorporate user -generated content ( earned media rather than paid media )
into their strategic approach.
Social networking websites
Social networking websites allow individuals and businesses to interact with
one another and build relationships and communities online. When companies join
these social channels, consumers can interact with them directly. That interaction can
be more personal to users than traditional methods of outbound marketing and
advertising. Social networking sites act as word of mouth or more accurately, e -word
of mouth. Social networking sites and blogs allow followers to ―retweet‖ or ―repost‖
comments made by others about a product being promoted, which occurs quite
frequently on some social media sites. By repeating the message, the use r's
connections are able to see the message, therefore reaching more people. Because the
information about the product is being put out there and is getting repeated, more
traffic is brought to the product/company. Social networking websites are based on
building virtual communities, that allow consumers to express their needs, wants and
values, online. Social media marketing then connects these consumers and audiences
to businesses that share the same needs, wants and values.
Through social networking site s, companies can keep in touch with individual
followers. This personal interaction can instill a feeling of loyalty into followers and

22
potential customers. Also, by choosing whom to follow on these sites, products can
reach a very narrow target audience.
Social networking sites also include much information about what products
and services prospective clients might be interested in. Through the use of
new semantic analysis technologies, marketers can detect buying signals, such as
content shared by people and questions posted online. An understanding of buying
signals can help sales people target relevant prospects and ma rketers run micro –
targeted campaigns.
In order to integrate social networks into their marketing strategies, companies
have to develop a marketing model. In a marketing model (SNeM2S) based on social
networks is provided. The model includes the following steps:
 Selection of potential social networks to use;
 Definition of a financial plan;
 Definition of organizational structures to manage the social network in
the market;
 Selection of target;
 Promotion of products and services;
 Performance measures
In 2014, over 80% of business executives identified social media as an integral
part of their business. Business retailers have seen 133% increases in their revenues
from social media marketing. ([38])

23
Strategies
There are two basic strategies for engaging the social media as marketing tools:
The passive approach
Social media can be a useful source of market information and customer's
voice. Blogs, content communities, and forums are platforms where individuals share
their reviews and recommendations of brands, products, and services. Businesses are
able to tap and analyze the customer voice generated in social media for marketing
purposes; in this sense the social media is an inexpensive source of market intelligence
which can be used by marketers to track prob lems and market opportunities. For
example, the internet erupted with videos and pictures of iPhone 6 bend test which
showed that the coveted phone would bend merely by hand. The so -called ―bend gate‖
controversy created confusion amongst customers who had waited months for the
launch of the latest rendition of the iPhone. However, Apple promptly issued a
statement saying that the problem was extremely rare and that the company had taken
several steps to make the mobile device robust. Unlike traditional mar ket research
methods such as surveys, focus groups, and data mining which are time -consuming
and costly, marketers can now utilize social media to obtain ‗live‘ information about
consumer behavior. This can be extremely useful in a highly dynamic market st ructure
in which we now live. ([38])
The active approach
Social media can be used not only as public relations and direct marketing
tools but also as communication channels (targeting specific audiences with social
media influencers) and as customer engage ment tools. Facebook and LinkedIn are
leading social media platforms where users can hyper -target their ads. Hypertargeting
not only uses public profile information but also i nformation users submit but hide
from others. There are several examples of firms initiating some form of online dialog
with the public to foster relations with custome rs. According to Constantinides,
Lorenzo and Gómez Borja (2008) "Business executives like Jonathan Swartz,
President and CEO of Sun Microsystems, Steve Jobs CEO of Apple Computers, and

24
McDonalds Vice President Bob Langert post regularly in their CEO blogs,
encouraging customers to interact and freely express their feelings, ideas, suggestions
or remarks about their postings, the company or its products". Using customer
influencers (for example popular bloggers) can be a very efficient and cost -effective
method to launch new products or services. Narendra Modi current prime minister of
India ranks only second after President Barack Obama in a number o f fans on his
official Facebook page at 21.8 million and counting. Modi employed social media
platforms to circumvent traditional media channels to reach out to the young and
urban population of India which is estimated to be 200 million. ([38])
Engagement
In the context of the social web , engagement means that customers and
stakeholders are participants rather than viewers. Social media in business allows all
consumers to express and share an opinion or an idea somewhere along the business‘s
path to market. Each participating customer becomes part of t he marketing
department, as other customers read their comments or reviews. The engagement
process is then fundamental to successful social media marketing.
With the advent of social media marketing, it has become increasingly
important to gain customer i nterest which can eventually be translated into buying
behavior. New online marketing concepts of engagement and loyalty have emerged
which aim to build customer participation and reputation.
Engagement in social media for the purpose of your social media strategy is
divided into two parts:
1. Proactive posting of new content and conversations, as well as the sharing of
content and information from others.
2. Reactive conversations with social media users responding to those who
reach out to your social me dia profiles through commenting or messaging.
Traditional media is limited to one -way interaction with customers or ‗push
and tell‘ where only specific information is given to the customer without any

25
mechanism to obtain customer feedback. On the other han d, social media is
participative where customers are able to share their views on brands, products, and
services. Traditional media gives the control of message to the marketer whereas
social media shif ts the balance to the consumer. ([38])
Purposes and Ta ctics
One of the main purposes of employing Social Media in marketing is as a
communications tool that makes the companies accessible to those interested in their
product and makes them visible to those who have no knowledge of their products.
These companies use social media to create buzz, learn from and target customers. It's
the only form of marketing that can finger consumers at each and every stage of the
consumer decisio n journey.
Marketing through social media has other benefits as well. Of the top 10
factors that correlate with a strong Google organic search, seven are social media
dependent. This means that if brands are less or non -active on social media, they tend
to show up less on Google searches. While platforms, such
as Twitter , Facebook and Google+ have a larger amount of monthly users, The visual
media sharing based mobile platforms however, garner a higher interaction rate in
comparison and have registered the fastest growth and have changed the ways in
which consumers engage with brand content. Instagram has an interaction rate of
1.46% with an average of 130 million users monthly as opposed to Twitter which has
a 0.3% interaction rate with an average of 210 million monthly users.
Unlike traditional media that are often cost -prohibitive to many companies, a
social media strategy does not require astronomical budgeting. To this end, companies
make use of platforms such as Facebook, Twitter, YouTube and Instagram in order to
reach audiences much wider than through the use of traditional print/TV/radio
advertisements alone at a fraction of the cost, as most social networking sites can be
used at no cost. This has changed the ways that companies approach to interact with
customers, as a substantial percentage of consumer interactions are now being carried
out over online platforms with much higher visibility. Customers can now post

26
reviews of products and services, rate customer service and ask questions or voice
concerns directly to companies through social media platforms. Thus social media
marketing is also used by businesses in order to build relationships of trust with
consumers.
To this aim, companies may also hire personnel to specifically handle these
social media interactions, who usually report under the title of Online community
managers . Handling these interactions in a satisfactory manner can result in an
increase of consumer trust. To both this aim and to fix the public's perception of a
company, 3 steps are taken in order to address consumer concerns, identifying th e
extent of the social chatter, engaging the influencers to help, and developing a
proportional response.
Twitter
Twitter allows companies to promote their products in short messages known
as tweets limited to 140 characters which appear on followers‘ Home timelines.
Tweets can contain text, Hashtag , photo, video, Animated GIF , Emoji , or links to the
product‘s website and other social media profiles, etc. Twitter is also used by
companies to provide customer service. Some companies make support available 24/7
and answer promptly, thus improving brand loyalty and appreciation. ([38])
Facebook
Facebook pages are far more detailed than Twitter accounts. They allow a
product to provide videos, photos, and longer descriptions, and testimonials as other
followers can comment on the product pages for others to see. Facebook can link back
to the product‘s Twitter page as well as send out event reminders. As of May 2015,
93% of businesses marketers use Facebook to promote their brand.
A study from 2011 attributed 84% of "engagement" or clicks to Li kes that link
back to Facebook advertising. By 2014, Facebook had restricted the content published
from businesses' and brands' pages. Adjustments in Facebook algorithm s have reduced

27
the audience for non -paying business pages (that have at least 500,000 "Likes") from
16% in 2012 down to 2% in February 2014.
Google+
Google+ , in addition to providing pag es and some features of Facebook, is also
able to integrate with the Google search engine. Other Google products are also
integrated, such as Google Adwords and Google Maps . With the development
of Google Personalized Search and other location -based search services, Google+
allows for targeted advertising methods, navigation services, and other forms of
location -based marketing and promotion. Google+ can also be beneficial for other
digital marketing campaigns, as well as social media marketing. Google+ authorship
was known to have a significant benefit on a website's search engine optimization /,
before the relationship was removed by Google. Google+ is one of the fastest growing
social media networks and can benefit almost any business.
LinkedIn
LinkedIn , a professional business -related networking site, allows companies to
create professional profiles for themselves as well as their business to network and
meet others. Through the use of widgets, members can promote their v arious social
networking activities, such as Twitter stream or blog entries of their product pages,
onto their LinkedIn profile page. LinkedIn provides its members the opportunity to
generate sales leads and business partners. Members can use ―Company Page s‖ similar
to Facebook pages to create an area that will allow business owners to promote their
products or services and be able to interact with their customers. Due to spread of
spam mail sent to job seeker, leading companies prefer to use LinkedIn for e mployee's
recruitment instead using different a job portal. Additionally, companies have voiced a
preference for the amount of information that can be gleaned from a LinkedIn profile,
versus a limited email. ([38])

28
Yelp
Yelp consists of a comprehensive online index of business profiles. Businesses
are searchable by location, similar to Yellow Pages . The webs ite is operational in
seven different countries, including the United States and Canada . Business account
holders are allowed to create, share, and edit business profiles. They may post
information such as the business location, contact information, pictures, and service
information. The website further allows individuals to write, post revi ews about
businesses and rate them on a five -point scale. Messaging and talk features are further
made available for general members of the website, serving to guide thoughts and
opinions.
Foursquare
Foursquare is a location -based social networking website, where users can
check into locations via a Swarm app on their smartphones. Foursquare allows
businesses to create a page or create a new/claim an existing venue. ([3 8])
Instagram
In May 2014, Instagram had over 200 million users. The user engagement rate
of Instagram was 15 times higher than of Facebook and 25 times higher than that of
Twitter. According to Scott Galloway, the founder of L2 and a professor of marketing
at New York University‘s Stern School of Business, latest studies estimate that 93% of
prestige brands have an active presence on Instagram and include it in their marketing
mix. When it comes to brands and businesses, Instagram's goal is to help companies to
reach their respective audiences through captivating imagery in a rich, visual
environment. Moreover, Insta gram provides a platform where user and company can
communicate publicly and directly, making itself an ideal platform for companies to
connect with their current and potential customers.
Many brands are now heavily using this mobile app to boost their vis ual
marketing strategy. Instagram can be used to gain the necessary momentum needed to
capture the attention of the market segment that has an interest in the product offering

29
or services. As Instagram is supported by Apple and android system, it can be ea sily
accessed by smartphone users. Moreover, it can be accessed by the Internet as well.
Thus, the marketers see it as a potential platform to expand their brands exposure to
the public, especially the younger target group. On top of this, marketers do not only
use social media for traditional Internet advertising, but they also encourage users to
create attention for a certain brand. This generally creates an opportunity for greater
brand exposure. Furthermore, marketers are also using the platform to driv e social
shopping and inspire people to collect and share pictures of their favorite products.
Many big names have already jumped on board: Starbucks , MTV , Nike , Marc
Jacobs , Red Bull are a few examples of multinationals that adopted the mobile photo
app early.
Instagram has proven itself a powerful platform for marketers to reach their
customers and prospects t hrough sharing pictures and brief messages. According to a
study by Simply Measured, 71% of the world‘s largest brands are now using
Instagram as a marketing channel. For companies, Instagram can be used as a tool to
connect and communicate with current an d potential customers. The company can
present a more personal picture of their brand, and by doing so the company conveys a
better and true picture of itself. The idea of Instagram pictures lies on on -the-go, a
sense that the event is happening right now, and that adds another layer to the personal
and accurate picture of the company. Another option Instagram provides the
opportunity for companies to reflect a true picture of the brandfrom the perspective of
the customers, for instance, using the user -gene rated contents thought the hashtags
encouragement. Other than the filters and hashtags functions, the Instagram‘s 15 –
second videos and the recently added ability to send private messages between users
have opened new opportunities for brands to connect wit h customers in a new extent,
further promoting effective marketing on Instagram. ([38])
YouTube
YouTube is another popular avenue; advertisements are done in a way to suit
the target audience. The type of language used in the commercials and the ideas used
to promote the product reflect the audience's style and taste.

30
Also, the ads on this platform are usually in sync with the content of the video
requested, this is another advantage Y ouTube brings for advertisers. Certain ads are
presented with certain videos since the content is relevant. Promotional opportunities
such as sponsoring a video is also possible on YouTube, "for example, a user who
searches for a YouTube video on dog train ing may be presented with a sponsored
video from a dog toy company in results along with other videos." YouTube also
enable publishers to earn money through its YouTube Partner Program .
Social Bookmarking Sites
Web sites such as Delicious , Digg , Slashdot , Diigo, Stumbleupon and Reddit
are popular social bookmarking sites used in social media promotion. Each of these
sites is dedic ated to the collection, curation, and organization of links to other
websites. This process is crowdsourced, allowing members to sort and prioritize links
by relevance and general category. Due to the large user bases of these websites, any
link from one o f them to another, the smaller website usually results in a flash crowd .
In addition to user -generated promotion, these sites also offer advertisements within
individual user commun ities and categories. Because ads can be placed in designated
communities with a very specific target audience and demographic, they have far
greater potential for traffic generation than ads selected simply through cookie and
browser history. Additionally, some of these websites have also implemented
measures to make ads more relevant to users by allowing users to vote on which ones
will be shown on pages they frequent. The ability to redirect large volumes of web
traffic and target specific, relevant audiences makes socia l bookmarking sites a
valuable asset for social media marketers. ([38])
Blogs
Platforms like LinkedIn create an environment for companies and clients to
connect online. Companies that recognize the need for information, originality/ and
accessibility employ blogs to make their products popular and unique/ and ultimately
reach out to consumers who ar e privy to social media.

31
Blogs allow a product or company to provide longer descriptions of products
or services, can include testimonials and can link to and from other social network and
blog pages. Blogs can be updated frequently and are promotional te chniques for
keeping customers , and also for acquiring followers and subscribers who can then be
directed to social network pages.
Online communities can enable a business to reach the clients of other
businesses using the platform. To allow firms to measure their standing in the
corporate world, sites enable employees to place evaluations of their companies. Some
businesses opt out of integrating social media platforms into their tradit ional
marketing regimen. There are also specific corporate standards that apply when
interacting online. To maintain an advantage in a business -consumer relationship,
businesses have to be aware of four key assets that consumers maintain: information,
involvement, community, and control.
Tumblr
Tumblr first launched ad products on May 29, 2012. Rather than relying on
simple banner ads, Tumblr requires advertisers to create a Tumblr blog so the content
of those blogs can be featured on the site. In one year, four native ad formats were
created on web and mobile, and had more than 100 brands adver tising on Tumblr with
500 cumulative sponsored posts .
([38])

32
3.2. Facebook Marketing
In the first few years of social networking, MySpace was the big name.
Between 2003 and 2006, it grew to 100 million users, and by June 2006, the website
was even more visited than Google. Then came Facebook.
By 2008, Facebook had surpassed MySpace in worldwide users, and in United
States users a year later. As MySpace declined (it dropped to approximately 25 million
users in June 2012), some businesses wondered about making a major advertising
investment in Fa cebook —might it not also be displaced as MySpace was?
Well, perhaps —but in the meantime Facebook has surpassed 950 million users
(and about 145 million users in the United States, about 43 percent of the nation‘s
population). Other than Google.com, it is t he single most visited website on the
Internet, giving companies unprecedented access to potential consumers.
Facebook marketing refers to creating —and actively using —a Facebook page
as a communications channel to maintain contact with and attract customer s. Facebook
actively provides for this, allowing users to create individual profiles or business pages
for companies, organizations, or any group attempting to develop a fan base for a
product, service, or brand.
Featuring nearly a billion potential custom ers, every business should be using
Facebook. It is at least as essential as having a business web page —and actually much
easier to create. Whether you represent a big brand or a small business employing only
a handful of people, you can bet that some port ion of your customers are already on
Facebook. Commonly, Facebook marketing is used by:
 Brands. Food, electronics, home goods, restaurants —nearly any kind
of brand can be promoted through Facebook, turning passive customers into active
fans who follow news of promotions and developments, and who share with their own
friends.

33
 Local businesses. Whether a business is family -owned, or a franchise
of a larger company, a Facebook page can be used to turn a local customer base into a
fan base that more commonly vi sits your store.
 Personalities. Musicians, celebrities, authors, syndicated columnists —
anybody who makes their money through being known wants to be known by as many
people as they can on Facebook.
 Non-profit organizations. Charities, political groups, and public
service campaigns can all leverage the natural sharing capabilities of Facebook.
While originally marketed to college students, Facebook has expanded well
beyond that demographic. More than half of all users are in the 18 -34 age range, and
slightly more than half of United States users are women. In the United States, about
half of all user profiles are accessed through mobile devices as well as through
computers. Due to its considerable amount of users, there is a wide variety of market
segments th at can be reached on Facebook, and an active fan base for nearly any
niche.
A more helpful question about Facebook customers would be: When is
Facebook marketing most effective? For brand and company pages, posts made in the
morning attract more comments t han posts made in the afternoon. Consumers at home
may check Facebook at any time during the day (the peak traffic period is around 3:00
in the afternoon). However, working or school -going consumers commonly check
Facebook before and after work/school; the refore, only posting during the 9 -5 business
day misses a lot of opportunities. ([32])

Fig 3 .2.1. Age of facebook users

34
Facebook pages are often linked to company web pages elsewhere on the
Internet; therefore, it‘s often a good idea to use some of the same information in both
places, in order to maintain a familiarity. A business page can be searched for as soon
as it is up, but unlike a personal profile, you cannot invite friends through it. Business
pages do not get ―friends,‖ they get ―fans‖ —and that distinction does make a
difference.
To create an initial seed for the fan base, each member of the marketing team
should begin by liking the business page on their own personal profiles; all employees,
in fact, should be encouraged to join in. When an ind ividual likes a page, Facebook
immediately posts this event to their profile —and this activity can be seen by every
one of their friends. ―Joe Smith likes [this brand].‖ The word begins to spread.
Every Facebook user who likes a page will get to see any co ntent a business
posts, and be notified of posts through their news feed. If they are engaged by that
content, they may comment on it, or like that item; and ―Joe Smith commented on
[this brand‘s] status update‖ appears on all of their friends‘ news feeds. Additionally,
they may share this content, which will post the entire content to their own profiles,
and notify their friends to come look. The company's task, then, is to encourage this
process as much as possible.
The most important aspect of Facebook m arketing is consistency of
communication. Creating a Facebook page and then leaving it alone will net a business
nothing. To attract fans, a business should regularly post new content in a variety of
different formats, so that more people will see and shar e the page. Content can
announce upcoming promotions, spot -light specific products or people, share fun
facts, provide incentive codes for discounts on products and services, and anything
else that will catch the interest of fans.
Given the way Facebook‘s news feed works, the recency of a post is a major
factor in organizing what a user sees. The average user has more than 130 friends, and
may be a fan of several brands, personalities, and organizations. When he or she logs
in, there is no way to instantly see activity from every one of those sources.

35
The news feed shows them posts from the friends/etc. they interact with most,
and which are more recent. Therefore, a company's post is only likely to be visible on
their fans‘ news feeds for about three hours after they post it. Furthermore, depending
upon the time of day they post, it is likely to be seen by entirely different portions of
their fan base.
In addition to varied content and formating, posts should invite customers to
interact and respond. Busines ses should present consistent calls to action, which can
be as simple as ―watch this,‖ ―like this,‖ or ―share this." Additionally, businesses can
invite participation through contests and polls (which are also a way to collect market
research). Such low -commitment investments encourage familiarity and affinity in
their customer base.
This positive relationship can be further promoted through maintaining two –
way communication. In other words, when fans post a comment on content, businesses
should respond. Ho w much they respond will depend upon how many fans comment,
and how much time they can commit to Facebook marketing; but the more any
particular fan interacts with a page, the more likely he or she is to buy.
([32])

36
Chap ter 4 . Social Media Statistics in 2016
4.1. Social Media Statistics
It is a fact of the internet that every click, every view and every sign -up is
recorded somewhere. For the curious, these represent a series of numbers that boggle
the mind, users counted in ten s and hundreds of millions, and time in millions and
billions of hours. For marketers, knowing the statistics behind the social networks can
inform strategy and spend, allowing focused targeting of users.
Social media statistics
 For context, as of July 2015, total worldwide population is 7.3 billion
 The internet has 3.17 billion users
 There are 2.3 billion active social media users
 91% of retail brands use 2 or more social media channels
 Internet users have an average of 5.54 social media accounts
 Social media users have risen by 17 6 million in the last year
 1 million new active mobile social users are added every day. That‘s 12 each
second
 Ther e are 1.65 billion active mobile social accounts globally ([27])
Broken down site by site, the latest numbers for social networks are as follows:
User numbers
4Chan: 11 million users
Airbnb: 50 million users
Facebook: 1.65 billion users
Flickr: 112 million users
Google+: 300 million users
Instagram: 400 million users LinkedIn: 300 million users
MySpace: 50.6 million users
Periscope: 10 million users
Pinterest: 100 million users
Reddit: 36 million accounts
Snapchat: 100 million users

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Twitter: 320 million users
Wechat: 1.12 billion users
Weibo: 600 million users WhatsApp: 900 million users
Youtube: Over 1 billion users
Social media business statistics
 Social networks earned an estimated $8.3 billion from advertising in 2015
 38% of organizations plan to spend more than 20% of their total advertising budgets on
social media channels in 2015, up from 13% a year ago
 Only 20 Fortune 500 companies actually engage with their customers on Faceboo k,
while 83% have a presence on Twitter
 People aged 55 -64 are more than twice as likely t o engage with branded content than
those 28 or younger
 96% of the people that discuss brands online do not follow those brands‘ owned profiles
 78 percent of people who complain to a brand via Twitter expect a response within an
hour
Content statistics
 On WordPress alone, 56 million blog posts are published every month
 A 2011 study by AOL/Nielsen showed that 27 million pieces of content were shared
every day
 The top 3 content marketing tactics are blogging (65%); social media (64%); and case
studies (64%) ([27])
Social video statistics
 Facebook now sees 8 billion average daily video views from 500 million users
 Snapchat users watch 6 billion videos every day
 US adults spend an average of 1 hour, 16 minutes each day watching video on digital
devices
 78% of people watch online videos every week , 55% watch every day

39
Google statistics
 Google processes 100 billion searches a month
 That‘s an average of 40,000 search queries every second
 89.3% of all internet searches are carried out by Google
 Those searches are carried out by 1.17 billion unique users
 Every day, 16 to 20% of that day‘s queries have never been asked before
 Google has answered 450 billion unique queries since 2003
 More than half of Google‘s searches come from mobile devices
 By 2014, Google had indexed 30,000,000,000,000 pages of the internet
 To car ry out all these searches, Google‘s data centre uses 0.01% of worldwide electricity
Facebook statistics
 Facebook adds 500,000 new users every day; 6 new profiles every second
 72% of all online US adults visit Facebook at least once a month
 The average (mean) number of friends is 338 , and the median (midpoint) number of
friends is 200
 Half of internet users who do not use Facebook themselves live with someone who does
 Of those, 24% say that they look at posts or photos on that person‘s account
 There are an estimated 81 million fake Facebook profiles
 The most popular page is Facebook for Every Phone , with 509,772,152 likes
 There are 40 million active small business Pages
 But only 2 million of those businesses pay for advertising
Facebook accounts for 62% of social logins made by consumers to sign into the apps and
websites of publishers and brands ([27])
Twitter statistics
 500 million people visit Twitter each month without logging in
 There is a total of 1.3 billion accounts , but only 320 million are active
 Of those, 44% made an account and left before ever sending a Tweet
 The average Twitter user has 208 followers

40
 But 391 million accounts have no followers at all
 There are 500 million Tweets sent each day. That‘s 6,000 Tweets every second
 Twitter‘s top 5 markets (countries) account for 50% of all Tweets
 It took 3 years, 2 months and 1 day to go from the first Tweet to the billionth
 65.8% of US companies with 100+ employees use Twitter for marketing
 77% of Twitter users feel more positive about a brand when their Tweet has been replied
to
Youtub e statistics
 300 hours of video are uploaded to Youtube every minute
 There are 3.25 billion hours of video watched each month
 More than half of YouTube views come from mobile devices
 The average mobile viewing session lasts more than 40 minutes
 The user submitted video with the most views is ―Charlie bit my finger‖ , with
834,956,899 views
 On average, there are 1,000,000,000 mobile video views per day
 In 2014, the most searched term was music. The second was Minecraft
 9% of U.S small businesses use Youtube
 You can navigate YouTube in a total of 76 different languages (coverin g 95% of the
Internet population)
Instagram statistics
 There are 400 million Monthly Active Users on Instagram
 Over 80 million p hotos are uploaded each day
 There are 3.5 billion Instagram Likes per day
 More than 40 billion photos have been shared so far
 90 perce nt of Instagram users are younger than 35
 When Instagram introduced videos, more than 5 million were shared in 24 hours
 Pizza is the most popular Instagrammed food , behind sushi and steak
 32% of US teens cite Instagram as their favourite social network
([27])

41
Pinterest statistics
 176 million Pinterest accounts have been registered
 But only 100 million are active each month
 42% of all online women use the platform
 The best time to Pin is Saturday from 8pm -11pm
 In 2014, male audience grew 41% and their average time spent on Pinterest tripled to
more than 75 minutes per visitor
 66% of content that users Pin c omes from brand websites
LinkedIn statistics
 LinkedIn has 400 million members
 100 million of those access the site on a monthly basis
 More than 1 million members have published content on LinkedIn
 The average CEO has 930 LinkedIn connections
 Over 3 million companies have created LinkedIn accounts
 But only 17% of US small businesses use LinkedIn
([27])

42
4.2. Facebook Statistics
Facebook historical facts
Facebook was launched on February 4, 2004 , by Mark Zuckerberg and his Harvard
College roommates. It was initially called Facemash , then Thefacebook. Originally only open to
Harvard students. In March 2004 , Facebook expanded to the universities of Columbia , Stanford,
and Yale. It later gradually opens to most universities in the United States and Canada.
On September 26, 2006 , Facebook was opened to everyone at least 13 years old with a valid
email address. ([28])
Facebook financial statistics
 Net income was $1.51bn for the first three months of 2016
 Facebook‘s IPO raised $16 billion , making it the third largest in U.S. history
 Facebook is now the fifth-most -valuable public company in the world. Its market value is
around $321 billion.
 Since 2012, it has spent more than $25 billion buying competitors such as Instagram,
WhatsApp, and Oculus
 Facebook has 12,691 employees
 Mark Zuckerberg‘s salary is only $1 a year
 Which isn‘t really a problem when your net worth is $48.9 billion
Facebook user statistics
 There are 1.65 billion monthly active users
 823M of those are mobile -only users
 There are 1.083 billion daily active users
 47% of Facebook users only access the platfo rm through mobile

43
 83% of parents on Facebook are friends with their children
 Facebook adds 500,000 new users eve ry day; 6 new profiles every second
 72% of all US online adults visit Facebook at least once a month
 Worldwide, 38.6% of the online population use Facebook
 The average (mean) number of friends is 338 , and the median (midpoint) number of
friends is 200
 Half of internet users who do not use Face book themselves live with someone who does
 Of those, 24% say that they look at posts or photos on that person‘s account ([28])
Facebook usage statistics
 There are an estimated 81 million fake Facebook profiles
 The most popular page is Facebook for Every Phone , with 509,772,152 likes
 Facebook accounts for 62% of social logins made by consumers to sign into the apps and
websites of publishers and brands
 80 million people use Facebook Lite – the app for the developing world‘ s slow
connections
 Facebook takes up 22% of the internet time Americans spend on mobile devices,
comp ared with 11% on Google search and YouTube combined
 Users spend an average of 20 minutes per day on the site
 Hive is Facebook‘s data w arehouse, with 300 petabytes of data
 Facebook generates 4 new petabytes of data per day
 Facebook now sees 100 million hours of daily video watch time
 Users generate 4 million likes every minute

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 More than 250 billion photos have been uploaded to Facebook
 This equates to 350 million photos per day
Facebook marketing statistics
 There are 50 million active s mall business Pages
 But only 2.5 million of those businesses pay to be ‗active advertisers‘
 Although 75% of brands will pay to promote posts
 Facebook claimed 19% of the $70 billion spent on mobile advertising worldwide in 2015
 78% of Face book advertising revenue comes from mobile ads
 Average advert click through rate on Facebook is 0.9%
 Although adding a CTA butt on can lift click -through -rate by 2.85 times
 In 2015, Facebook‘s average advertising revenue per user was US$11.96
 49% of users like a Facebook page to support a brand they like
 40% of users don‘t like any brand pages – meaning paid adverts are the only way to reach
them
 Videos earn the highest rate of engagement , despite only making up 3% of content
 Mobile advertising represents 80% of Facebook‘s advertising revenue
 Posts published on Thursday and Friday receive the highest engagement
([28])

45
Chapter 5 . The role of marketing research
5.1. Marketing research
Green and Tull have defined marketing research as follows:
"Marketing research is the systematic and objective search for, and analysis of,
information relevant to the identification and solution of any problem in the field of marketing."
The key words in this definition are; systematic, objective and analysis. Marketing
research seeks to set about its task in a systematic and objective fashion. This means that a
detaile d and carefully designed research plan is developed in which each stage of the research is
specified. Such a research plan is only considered adequate if it specifies: the research problem
in concise and precise terms, the information necessary to address the problem, the methods to
be employed in gathering the information and the analytical techniques to be used to interpret it.
Maintaining objectivity in marketing research is essential if marketing management is to
have sufficient confidence in its result s to be prepared to take risky decisions based upon those
results. To this end, as far as possible, marketing researchers employ the scientific method. The
characteristics of the scientific method are that it translates personal prejudices, notions and
opinions into explicit propositions (or hypotheses). These are tested empirically. At the same
time alternative explanations of the event or phenomena of interest are given equal consideration.
The market research brief
Marketing research can be concerned wit h any of a variety of aspects of the market: the
product, sales, buyer behaviour, promotion, distribution, pricing, packaging, etc. Since the
researcher cannot investigate everything about a market, he/she must be selective. The question
remains as to how the researcher decides where to focus the study, and to what depth each issue
should be investigated. The answer should lie in a document called the research brief. The
research design is a set of guidelines given to the researcher by the person(s) who hav e
commissioned the research and/or the individual(s) who are to make use of the results in their
decision making. The brief must inform the researcher which aspects of the market are
particularly important. In particular, the research brief should include:

46
 the purpose of the research
 the objectives stated in a clear, concise, attainable, measurable and quantifiable way
 a time horizon
 a resource allocation, including the budget and facilities
 a reporting period. ([19])
The purpose of the research
It is not at all unusual for marketing managers to neglect to tell the researcher the precise
purpose of the research. They often do not appreciate the need to do so. Instead, they simply state
what they think they need to know. This is not quite the same thing. To appreciate the difference
consider the case of the marketing research agency which was contacted by the International
Coffee Organisation (ICO) and asked to carry out a survey of young people in the age group 15 –
24. They wanted information on the coffee drinking habits of these young people: how much
coffee they drank, at what times of day, with meals or between meals, instant or ground coffee,
which other beverages they preferred and so on. In response, the research organisation developed
a set o f wide -ranging proposals which included taking a large random sample of young people.
In fact much of the information was interesting rather than important. Important
information is that information which directly assists in making decisions and the ICO ha d not
told the research company the purpose of the research. The initial reason for the study had been a
suspicion, on the part of the ICO, that an increasing percentage of young people were consuming
beverages other than coffee, particularly soft drinks, and simply never developed the coffee
drinking habit. Had this been explained to the research company then it is likely that their
proposals would have been radically different. To begin with, the sample would have been
composed of 15 -24 year old non -coffe e drinkers rather than a random sample of all 15 -24 year
olds. Second, the focus would have been non -coffee drinking habits rather than coffee drinking
habits.
Unless the purpose of the research is stated in unambiguous terms it is difficult for the
market ing researcher to translate the decision -maker's problem into a research problem and study
design. ([19])

47
Clear, concise, attainable, measurable and quantifiable objectives
Suppose that the marketing manager states that he needs to know the potential marke t for
a new product his/her organisation has been developing. At first glance this might appear to meet
all of the requirements of being clear, concise, attainable, measurable and quantifiable. In
practice it would possibly meet only one of these criteria, i.e. it is concise!
Here is another case to be considered. A small engineering firm had purchased a
prototype tree -lifter from a private research company. This machine was suitable for lifting semi –
mature trees, complete with root -ball intact, and transpl anting such trees in another location. It
was thought to have potential in certain types of tree nurseries and plantations.
The problem with the objective is that the marketing manager needs to know the potential
market for the new tree -lifter is that it i s not attainable. One could find out how many tree -lifters
were currently being sold but this is not the same as the objective set by the marketing manager.
The market potential for any new brand is a function of at least 4 things, as shown in Figure 1.1.
Figure 5.1.1. The components of market potential

It was possible to test customer reaction to the concept of the new tree -lifter by showing
pictures, line drawings and by supplying product specifications to prospective buyers. However,
since the company had not decided their pricing policy an important e lement could not be tested.
In large measure, it was also possible to gauge the likely reaction from competitors. The
researchers began by looking at the basis of competition to determine whether it was on price,
product quality or unique product features. The researchers were able to look at precedents. They
examined the pattern of response on past occasions when one or other of those companies
already in the market had launched a new product. An audit of the environment was undertaken
too, but the missing component was the company's' own plans for exploiting the market. Since

48
the company had no involvement in the agricultural engineering sector, prior to acquiring the
rights to the tree -lifter, they had no agreements with distributors, no idea of which, if any, of the
distributors would be prepared to stock their product; they had no salesmen trained in selling into
this industry and so on. The product's potential depended very much on such initiatives.
The solution would have been to undertake a study whic h would have described the
market in detail in terms of customers, competitors and the environment. The company could
then have put a marketing plan together and conducted a follow -up study to test their
propositions out on the marketplace.
The need to set a time horizon for marketing research
Inevitably there are deadlines which the marketing research activity must fit and these
must be stated clearly at the outset of the research. As was said earlier, because of time pressures,
management is often seeking quick answers from marketing research. If the researcher is aware
of the time constraints then this will become an overriding factor when he/she plans the research
design. He or she is likely to put forward a design which is less elegant, and gives rise t o less
precise information but delivers the results on schedule. ([19])
A resource allocation, including the budget and facilities
There are essentially two approaches to establishing the resource allocation to a particular
marketing research exercise. Man agement can start with the problem and work out how much it
will cost to solve it. Alternatively, they can decide how much the management can afford to
spend, at the time, and seek the best answer they can for the time, money and manpower
allocated. In pra ctice the decision -makers prefer the latter approach and the researchers the
former. In the end, some kind of compromise develops. The researcher rarely gets all of what
he/she judges is required to reach a satisfactory conclusion but if the research propo sal is well
thought out and persuasively presented some concessions can be obtained.
Whichever the approach to resource allocation adopted, it is imperative that the
researcher is aware of the financial and other constraints within which he/she must comple te the
work.

49
A reporting period
The researcher must also know from the outset of the study the points in time when
interim reports are required, if any, and the deadline for the final report. The form of interim
reports should also be specified at the outs et, whether verbal or written, and whether
presentations are to be made to a group (nature and size of the group) or an individual.
In addition there are several characteristics of a good research brief and these are that it:
 means the same thing to all concerned
 does not ask for irrelevant information
 defines the relevant populations to be measured
 identifies the correct variables to be measured
 specifies the degree of accuracy really needed within the main results
 specifies an order of priorities when t he sample has to be broken down for the purposes
of analysing data for subgroups, and
 does not pre -judge the selection of research techniques and procedures. ([19])
The research proposal
Having received the research brief, the researcher responds with a research proposal. This
is a document which develops after having given careful consideration to the contents of the
research brief. The research proposal sets out the research design and the procedures to be
followed.

50
Figure 5.1.2. The research design

([19])

51
5.2. The steps of research design
Step 1: Problem definition
The point has already been made that the decision -maker should clearly communicate the
purpose of the research to the marketing researcher but it is often the case that the objectives are
not fully explained to the individual carrying out the study. Decision -makers seldom work out
their objectives fully or, if they have, they are not willing to fully disclose them. In theory,
responsibility for ensuring tha t the research proceeds along clearly defined lines rests with the
decision -maker. In many instances the researcher has to take the initiative.
In situations, in which the researcher senses that the decision -maker is either unwilling or
unable to fully art iculate the objectives then he/she will have to pursue an indirect line of
questioning. One approach is to take the problem statement supplied by the decision -maker and
to break this down into key components and/or terms and to explore these with the decis ion-
maker. For example, the decision -maker could be asked what he has in mind when he uses the
term market potential. This is a legitimate question since the researcher is charged with the
responsibility to develop a research design which will provide the right kind of information.
Another approach is to focus the discussions with the person commissioning the research on the
decisions which would be made given alternative findings which the study might come up with.
This process frequently proves of great v alue to the decision -maker in that it helps him think
through the objectives and perhaps select the most important of the objectives.
Whilst seeking to clarify the objectives of the research it is usually worthwhile having
discussions with other levels of management who have some understanding of the marketing
problem and/or the surrounding issues. Other helpful procedures include brainstorming, reviews
of research on related problems and researching secondary sources of information as well as
studying comp etitive products. Kerlinger suggests that a well -defined marketing research
problem tends to have three common characteristi cs as shown in figure 1.3. ([19])

52
Step 2: Hypothesis generation
Whilst it is true that the purpose of research is to address som e question, nonetheless one
does not test research questions directly. For example, there may be interest in answering the
question: "Does a person's level of education have any bearing upon whether or not he/she
adopts new products?" Or, "Does a person's age bear any relation to brand loyalty behaviour?".
Research questions are too broad to be directly testable. Instead, the question is reduced to one or
more hypotheses implied by these questions.
Figure 5.2.1. Characteristics of a sound definition of the research problem

A hypothesis is a conjectural statement regarding the relation between two or more
variables. There are two key characteristics which all hypotheses must have: they must be
statements of the relationship between variables and they must carry clear implications for
testing the stated relations. These characteristics imply that it is relationships, rather than
variables, which are tested; the hypotheses specify how the variables are related and that these
are measurable or potentially meas urable. Statements lacking any or all of these characteristics
are not research hypotheses. For example, consider the following hypothesis:
"Red meat consumption increases as real disposable incomes increase."

53
This is a relation stated between one variable , "red meat consumption", and another
variable, "disposable incomes". Moreover, both variables are potentially measurable. The criteria
have been met. However for the purposes of statistical testing it is more usual to find hypotheses
stated in the so -called null form, e.g.
"There is no relationship between red meat consumption and the level of disposable
incomes."
Consider a second hypothesis:
"There is no relationship between a farmer's educational level and his degree of
innovativeness with respect to ne w farming technologies."
Again there is a clear statement of the relationship being investigated but there are
question marks over the measurability with respect to at least one of the variables i.e. "…a
farmer's degree of innovativeness." We may also en counter difficulties in agreeing an
appropriate measure of the other variable, i.e. "level of education". If these problems can be
resolved then we may indeed have a hypothesis.
Hypotheses are central to progress in research. They will direct the researche r's efforts by
forcing him/her to concentrate on gathering the facts which will enable the hypotheses to be
tested. The point has been made that it is all too easy when conducting research to collect
"interesting data" as opposed to "important data". Data and questions which enable researchers to
test explicit hypotheses are important. The rest are merely interesting.
There is a second advantage of stating hypotheses, namely that implicit notions or
explanations for events become explicit and this often lea ds to modifications of these
explanations, even before data is collected.
On occasion a given hypotheses may be too broad to be tested. However, other testable
hypotheses may be deduced from it. A problem really cannot be solved unless it is reduced to
hypothesis form, because a problem is a question, usually of a broad nature, and is not directly
testable. ([19])

54
Step 3: Decision on type of study
Marketing research can be carried out on one of three levels: exploratory, descriptive or
causal.
Figure 5 .2.2. Three types of marketing research study

Exploratory research : The chief purpose of exploratory research is to reach a better
understanding of the research problem. This includes helping to identify the variables which
should be measured within the stu dy. When there is little understanding of the topic it is
impossible to formulate hypotheses without some exploratory studies. For example, crop
residues such a straw are high in lignin (a wood -like substance) and low in nutrients. This makes
them a poor a nimal feed since the lignin acts against digestibility and the low nutrient content
means poor food value. However, if treated in a strong alkali, plus a little heat, the lignin breaks
down and the nutrient content increases. A company was established to e xploit this technology
and did so successfully for 4 seasons. After this period sales began to slow down. Three other
manufacturers had entered the market by this time. The company, Animal Feed Systems, did not
know whether the whole industry had slowed do wn or if only their product was suffering. Nor
did they know if the problem was temporary in that perhaps the market comprised of "early
adopters" had been saturated but it was only a matter of time before other farmers began to buy
their systems when they saw how well they worked. It was also possible that if a problem did
exist it could lie in any one of a number of areas: animal populations might be declining,

55
distributors may not be promoting the product aggressively, customers may be experiencing
difficulties in getting the chemicals, and so on and on.
This is a good example of a situation where insufficient knowledge prevented the
development of clear objectives, since the problem could not be articulated with any precision
and therefore research of an exploratory nature was required. Such research can take the form of
literature searches, informal personal interviews with distributors and users/non -users of the
product and/or focus group interviews with farmers and/or distributors.
Exploratory research is intended to help researchers formulate a problem in such a way
that it can be researched and suggest testable hypotheses.
Descriptive research : As the name suggests, descriptive research is concerned with
describing market characteristics and/or marketing mix characteristics. Typically, a descriptive
study specifies the number and size of market segments, the alternative ways in which products
are currently distributed, listing and comparison of the attributes and features of competitive
products, etc.
This type of study can involve the description of the extent of association between
variables. For example, the researcher may observe that there is an association between the
geographical location of consumers and their tendency to consume red meat. Note that the
researcher is able to describe the relationship rather than explain it. Nonetheless if the
relationship between the two is fairly stable this descriptive information may be sufficient for the
purposes of prediction. The researcher may, for e xample, be able to predict how fast the per
capita consumption of red meat is likely to rise over a given time period.
The principal difference between exploratory and descriptive research is that, in the case
of the latter, specific research questions hav e been formulated before the research is undertaken.
When descriptive research is conducted the researcher must already know a great deal about the
research problem, perhaps because of a prior exploratory study, and is in a position to clearly
define what he/she wants to measure and how to do it.

56
Causal research : Causal research deals with the "why" questions. That is, there are
occasions when the researcher will want to know why a change in one variable brings about a
change in another. If he/she can under stand the causes of the effects observed then our ability to
predict and control such events is increased.
In summary then there are three distinct types of marketing research study: exploratory,
descriptive and causal. The purpose of each is summarised in figure 1.4. In some cases, a
research programme will be of one kind or another, but in other instances these three typologies
will represent phases within a single marketing research investigation.
Step 4: Decision on data collection method
The next set o f decisions concerns the method(s) of data gathering to be employed. The
main methods of data collection are secondary data searches, observation, the survey,
experimentation and consumer panels. Each of these topics is dealt with later on, so they are
simply noted here.
Figure 5 .2.3. Data collection methods

([19])

57
Step 5: Development of an analysis plan
Those new to marketing research often intuitively believe that decisions about the
techniques of analysis to be used can be left until after the data has been collected. Such an
approach is ill -advised. Before interviews are conducted the following checklist should be
applied:
 Is it known how each and every question is to be analysed? (e.g. which univariate or
bivariate descriptive statistics, tests of association, parametric or nonparametric
hypotheses tests, or multivariate methods are to be used?)
 Does the researcher have a sufficiently sound grasp of these techniques to apply them
with confidence and to explain them to the decision -maker who commissi oned the study?
 Does the researcher have the means to perform these calculations? (e.g. access to a
computer which has an analysis program which he/she is familiar with? Or, if the
calculations have to be performed manually, is there sufficient time to com plete them and
then to check them?)
 If a computer program is to be used at the data analysis stage, have the questions been
properly coded?
 Have the questions been scaled correctly for the chosen statistical technique? (e.g. a t -test
cannot be used on data which is only ranked)
There is little point in spending time and money on collecting data which subsequently is
not or cannot be analysed. Therefore consideration has to be given to issues such as these before
the fieldwork is undertaken. ([19])
Step 6: Data collection
At this stage the researcher is ready to go into the field and collect data. The various
issues relating to data collection constitute the main body of the text and therefore, are not dwelt
upon here.

58
Step 7: Analysis of data
The word 'analysis' has two component parts, the prefix 'ana' meaning 'above' and the
Greek root 'lysis' meaning 'to break up or dissolve'. Thus data analysis can be described as:
"…a process of resolving data into its constituent components, to reveal its charac teristic
elements and structure."
Where the data is quantitative there are three determinants of the appropriate statistical
tools for the purposes of analysis. These are the number of samples to be compared, whether the
samples being compared are independ ent of one another and the level of data measurement.
Suppose a fruit juice processor wishes to test the acceptability of a new drink based on a
novel combination of tropical fruit juices. There are several alternative research designs which
might be emplo yed, each involving different numbers of samples.
Table 5 .2.1. Samples of research designs

The next consideration is whether the samples being compared are dependent (i.e.
related) or independent of one another (i.e. unrelated). Samples are said to be de pendent, or
related, when the measurement taken from one sample in no way affects the measurement taken
from another sample. Take for example the outline of test B above. The measurement of the
responses of fruit juice drinkers to the trial formulation in no way affects or influences the
responses of the sample of non -fruit juice drinkers. Therefore, the samples are independent of
one another. Suppose however a sample were given two formulations of fruit juice to taste. That
is, the same individuals are ask ed first to taste formulation X and then to taste formulation Y.
The researcher would have two sets of sample results, i.e. responses to product X and responses
to product Y. In this case, the samples would be considered dependent or related to one another .
This is because the individual will make a comparison of the two products and his/her response
to one formulation is likely to affect his/her reaction or evaluation of the other product.

59
The third factor to be considered is the levels of measurement of t he data being used.
Data can be nominal, ordinal, interval or ratio scaled. Table 1.1 summarises the mathematical
properties of each of these levels of measurement.
Once the marketing researcher knows how many samples are to be compared, whether
these samp les are related or unrelated to one another and the level of measurement then the
selection of the appropriate statistical test is easily made. To illustrate the importance of
understanding these connections consider the following simple, but common, quest ion in
marketing research. In many instances the age of respondents will be of interest. This question
might be asked in either of the two following ways:
Please indicate to which of the following age categories you belong
(a)
15-21 years ___
22 – 30 years ___
Over 30 years ___
(b)
How old are you? ___ Years
Table 5 .2.2. Levels of measurement

Choosing format (a) would give rise to nominal (or categorical) data and format (b)
would yield ratio scaled data. These are at opposite ends of the hierarchy of levels of
measurement. If by accident or design format (a) were chosen then the analyst would have only a

60
very small set of statistical tests that could be applied and these are not very powerful in the
sense that they are limited to showing association between variables and could not be used to
establish cause -and-effect. Format (b), on the other hand, since it gives the analyst ratio data,
allows all statistical tests to be used including the more powerful parametric tests whereby cause –
and-effect can be established, where it exists. Thus a simple change in the wording of a question
can have a fun damental effect upon the nature of the data generated. Figure 1.7 provides a useful
guide to making that final selection.
Figure 5 .2.4. Selecting statistical tests

The individual responsible for commissioning the research may be unfamiliar with the
techn icalities of statistical tests but he/she should at least be aware that the number of samples,
their dependence or independence and the levels of measurement does affect how the data can be
analysed. Those who submit marketing research proposals involving quantitative data should
demonstrate an awareness of the factors that determine the mode of analysis and a capability to
undertake such analysis.
Marketing researchers have to plan ahead for the analysis stage. It often happens that data
processing begins whilst the data gathering is still underway. Whether the data is to be analysed
manually or through the use of a computer program, data can be coded, cleaned (i.e. errors

61
removed) and the proposed analytical tests tried out to ensure that they are effectiv e before all of
the data has been collected.
Another important aspect relates to logistics planning. This includes ensuring that once
the task of preparing the data for analysis has begun there is a steady and uninterrupted flow of
completed data forms or questionnaires back from the field interviewers to the data processors.
Otherwise the whole exercise becomes increasingly inefficient. A second logistical issue
concerns any plan to build up a picture of the pattern of responses as the data comes flowing i n.
This may require careful planning of the sequencing of fieldwork. For instance, suppose that
research was being undertaken within a particular agricultural region with a view to establishing
the size, number and type of milling enterprises which had est ablished themselves in rural areas
following market liberalisation. It may be that the West of the district under study mainly wheat
is grown whilst in the East it is maize which is the major crop. It would make sense to coordinate
the fieldwork with data analysis so that the interim picture was of either wheat or maize milling
since the two are likely to differ in terms of the type of mill used (e.g. hammer versus plate mills)
as well as screen sizes and end use (e.g. the proportions prepared for animal ve rsus human food).
([19])
Step 8: Drawing conclusions and making recommendations
The final chapter is devoted to the topic of report writing. However, it is perhaps worth
noting that the end products of marketing research are conclusions and recommendations. With
respect to the marketing planning function, marketing research helps to identify potential threats
and opportunities, generates alternative courses of action, provides information to enable
marketing managers to evaluate those alterna tives and advises on the implementation of the
alternatives.
Too often marketing research reports chiefly comprise a lengthy series of tables of
statistics accompanied by a few brief comments which verbally describe what is already self –
evident from the ta bles. Without interpretation, data remains of potential, as opposed to actual
use. When conclusions are drawn from raw data and when recommendations are made then data

62
is converted into information. It is information which management needs to reduce the in herent
risks and uncertainties in management decision making.
Customer oriented marketing researchers will have noted from the outset of the research
which topics and issues are of particular importance to the person(s) who initiated the research
and will weight the content of their reports accordingly. That is, the researcher should determine
what the marketing manager's priorities are with respect to the research study. In particular
he/she should distinguish between what the manager:
 must know
 should know
 could know
This means that there will be information that is essential in order for the marketing
manager to make the particular decision with which he/she is faced (must know), information
that would be useful to have if time and resources within the budget allocation permit (should
know) and there will be information that it would be nice to have but is not at all directly related
to the decision at hand (could know). In writing a research proposal, experienced researchers
would be careful to limit t he information which they firmly promise to obtain, in the course of
the study, to that which is considered 'must know' information. Moreover, within their final
report, experienced researchers will ensure that the greater part of the report focuses upon ' must
know' type information. ([19])
Chapter Summary
Marketing research serves marketing management by providing information which is
relevant to decision making. Marketing research does not itself make the decisions, nor does it
guarantee success. Rather, marketing research helps to reduce the uncertainty surrounding the
decisions to be made. In order to do so effectively, marketing research has to be systematic,
objective and analytical.
The manager or other individual initiating the research must provide guidance to the
researcher in the form of a research brief. This document should state the purpose of the

63
research, its objectives, the time by which it must be completed, the budget to which the
researcher must work in developing the research design and t he timing and frequency of any
interim reports which the researcher is expected to make.
Having read, questioned and understood the research brief the onus is then upon the
marketing researcher to respond by preparing the research design. Research design b egins with
an accurate and, as far as is possible, precise definition of the problem. This is followed by the
generation of hypotheses. There will then be an intermediate stage whereby the hypotheses are
restated in a testable form, i.e. the null form. Thi s will probably only be done if it is intended that
statistical analysis is to be undertaken. Where the research is more qualitative in nature then it is
still recommended that hypotheses should be developed. These should include alternative
hypotheses; de pending upon what is already known about the research problem one of three
types of study might be undertaken, i.e. an exploratory study, a descriptive study or a causal
study. Before proceeding further, the researcher has to develop an analysis plan. It i s only when
the analysis plan has been considered that fieldwork, in the form of data collection, should be
undertaken. The final step in the research design would be to write the report. Customer oriented
marketing researchers will have noted from the out set of the research which topics and issues are
of particular importance to the person(s) who initiated the research and will weight the content of
their reports accordingly.
([19])

64
Chapter 6 . Conducting the Marketing Research
6.1. The marketing research
Step 1: Problem definition
Nowadays there are so many IT solutions at everyone‘s disposal but with this marketing
research we are trying to find out which are the most used methods by companies to promote
themselves.
Step 2: Hypothesis generation
There is a strong relationship between the field of activity of the comp any and the IT
solution s it uses most frequently .
Step 3: Decision on type of study
The m arketing research will be carried ou t on all of three levels: exploratory, descriptive
or causal.
Exploratory research – determine all the criteria the companies use in deciding what IT
solutions they should use .
Descriptive research – place the criteria companies use in deciding what IT solutions t o
use.
Causal research – determine which criterion is critical to a company's decision to choose
one IT solution or another .
Step 4: Decision on data collection method
For this marketing research we will use 2 methods:
 survey – posted on social media
 qualitative – focus group

65
The next 4 steps will be tackled for every method in its respective chapter.
Step 5: Development of an analysis plan
Step 6: Data collection
Step 7: Analysis of data
Step 8: Drawing conclusions and making recommendations

66
6.2. The survey
Step 5: Development of an analysis plan
The marketing research has been done between January and March 2017 and th e group of
35 respondents including colleagues from the faculty that work at different companies but also
friends and family.
Step 6: Data collection
From the 35 answers, 21 respondents work in a big enterprise, 6 in a medium enterprise
and 8 in a small enterprise.
Step 7: Analysis of data
Big companies
The 21 people working in a big enterprise answered that their companies which are from
IT and Telecommunications domains mostly use Facebook and TV Commercials as most used
promotion methods being done by the Marketing Department of the company .
Figure 6.2.1. Most common method of promotion
Most common method of promotion
Facebook
TV Commercials
Online Advertising
Google Ads
Digital Street Display
Newsletters
Banners
Others

67
Figure 6.2.2. How often does the company use as a w ay of promoting "Facebook ”

Figure 6.2.3. How often does the company use as a w ay of promoting "TV Commercials”

Facebook
Very much
A lot
More or less
A little
Not at all
TV Commercials
Very much
A lot
More or less
A little
Not at all

68
Medium companies
The 6 people working in a medium enterprise answered that their companies which are
from IT domain mostly use Online Advertising as most used promotion method being done by
the Marketing Department of the company .
Figure 6.2.4. Most common method of promot ion

Figure 6. 2.5. How often does the company use as a w ay of promoting "Online
Advertising”
Most common method of promotion
Online Advertising
Subway Advertising
Newsletters
TV Commercials
Facebook
Online Advertising
Very much
A lot
More or less
A little
Not at all

69
Small companies
The 8 people working in a medium enterprise answered that their companies which are
from Advertising domain mostly use Facebook as most used promotion method being done by
the Marketing Department of the company .
Figure 6.2.6. Most common method of promotion

Figure 6.2.7. How often does the company use as a w ay of promoting "Facebook”
Most common method of promotion
Facebook
Online Advertising
Google Ads
Newsletters
Facebook
Very much
A lot
More or less
A little
Not at all

70
Step 8: Drawing conclusions and making recommendations
From the 21 respondents working in big companies, 33% (7) use Facebook and 14% use
TV Commercials the most in promoting their companies. In conclusion when you are a big
company you already have a cust omer base and you use Facebook and TV commercials in order
to remind them why they love the product/service and why they should keep using it.
From the 6 respondents working in medium companies, 33% (2) use Online Advertising
in order to make the company v isible for all the possible customers. In conclusion when you are
a medium company you try to make your customer base by using Online Advertising so that as
many people find out about it and next you use other types of advertising like Subway
Advertising a nd Newsletters.
From the 8 respondents working in small companies, 62% (5) use Facebook to promote
the companies . In conclusion when you are a small company you try to make yourself as much
visible as you can through Facebook, then use Online Advertising, Google Ads and Newsletters
so that you make the customer base and maybe even grow in the future.

71
Below there is the survey that we used for the marketing research:

Survey on the use of IT solutions in Marketing among SMEs

This survey aims to determine to what extent are IT solutions used in marketing among Small
and Medium Enterprises.
1. What kind of company is the company you work for?
○ Small ○ Medium ○ Large
2. In what field activates the company you work?
○ IT ○ Commerce ○Transportation ○ Telecommunications ○ Construction
○ Retail ○ Engineering ○ Insurance ○ Advertising ○ Customer Service
○ Banks ○ Human Resources ○ Restaurant ○ Logistics ○ Education
○ Other
3. What is the most common method of promotion that appeals to the company you work?
○ New sletters ○ Banners ○ Facebook ○ Youtube ○ TV Commercials
○ Online advertising ○ Subway advertisin g ○ Google Ads ○ Digital street display
○ Other
4. How much does the company‘s products or services get promoted by any of the methods
mentioned above?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
5. How often does the company use as a way of promoting "Newsletters"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
6. How often does the company use as a way of promoting "Banners"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
7. How often does the company use as a way of promoting " Facebook"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all

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8. How often does the company use as a way of promoting "Youtube"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
9. How often does the company use as a way of promoting "TV Commercials"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
10. How often does the company use as a way of promoting "Online advertising"?
○ Very much ○ A lot ○ More or l ess ○ A little ○ Not at all
11. How often does the company use as a way of promoting "Subway advertising"?
○ Very much ○ A l ot ○ More or less ○ A little ○ Not at all
12. How often does the company use as a way of promoting "Google Ads"?
○ Very much ○ A lot ○ More or les s ○ A little ○ Not at all
13. How often does the company use as a way of promoting "Digital street display"?
○ Very much ○ A lot ○ More or less ○ A little ○ Not at all
14. The promotion campaigns are handled by the marketing department of the company or by an
outsourcing company?
○ Marketing Department of the company ○ Outsourcing company

Thank you very much for your time and answers!

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Conclusions

Marketing is "the science and art of convincing customers to buy". The dual purpose of
marketing is to attract new customers by promising superior value and retain and grow current
customers by delivering satisfaction.
Nowadays online marketing has grown very much and it is placed em phasis on it because
everything happens on the Internet. People spend many hours sitting on social networks and
other sites of interest, which makes it very easy to watch commercials made by companies.
Whether it is SEM, SEO, P PC, Email Marketing, Video Marketing, Display advertising, all have
a common goal, to attract customers.
The efficiency of the methods varies from firm to firm and depends on the field of
activity.
Promotion refers to raising customer awareness of a produ ct or brand, generating sales,
and creating brand loyalty. It is one of the four basic elements of the market mix, which includes
the four P's: price, product, promotion, and place ment .
Promotion informs consumers about the rest of the marketing mix. Witho ut it, consumers
do not know about the product, the price, or the place. Promotion is more than just advertising,
and it includes several activities. It is crucial when you are selling in a mass market or you have a
brand name.
Facebook along with the othe r social sites play an important role in promotion on the
internet.
Marketing research is "the process or set of processes that links the producers, customers,
and end users to the marketer through information – information used to identify and define
mark eting opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process.
The general conclusion of this paper is that marketing research is a very important step in
a company‘s lifetime and it should not be neglected nor left outside before de ciding the
marketing strategies. So every company and business should focus on promoting their products
or services by being closer to the customer and make him want to buy y our products or services
even if he may not need them, make him think that he cannot live without them.

74
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