Strengthening the Link to User-Generated Content - Dissertation Example

? Internet Marketing: Responding to the Power of User Generated Content Number and Number Number of Words: 2,085 Introduction Also referring to social media, the Web 2.0 is the second generation of the Internet-based services. In line with this, the common social media tools that emerged over the past few years include not only web logs or blogs but also podcasts, the really simple syndication (RSS) feeds, video-sharing options, and social networks like MySpace and Facebook. Before people were introduced to the use of social media tools, large-multinational companies were very much in control of the type of corporate image and messages they are sending out to their target audiences through the use of TV and print advertisements. Specifically the one-way communication between large multinational companies and its target consumers has to change in response with the rapid development over the use of the Internet technology (Edelman and Technorati 2006). Since the use of the Internet allows two-way communication between large multinational companies and its target consumers, marketing managers today are challenged to effectively manage positive and negative opinions coming from its online target consumers (Bernoff and Li 2008). Specifically the new ability of all marketing message recipients to respond via social media tools – also known as the Web 2.0 user generated content tools has reduced the ability of brand owners to monopolize brand messaging. As explained by McGrail (2008, p. 73), viral marketing is a type of marketing strategy which allows the public viewers to willingly share a video or written content by encouraging friends and internet acquaintances to visit a website or read about the latest product promotional offers. By utilizing the social media tools, there is a strong possibility for brand responses to spread through viral marketing. On the contrary, the use of Web 2.0 technology also enables the brand critics to equally reach a large group of target audiences. The available literature concerning the overall impact of blogs and Web 2.0 user generated content over the marketing return on investment (ROI) is somewhat limited due to the contemporary nature of technological changes. In line with this, the study of Freeman and Chapman (2009) focused on reviewing the use of crowd sourcing (see Whitla 2009) by Camel to produce tobacco packaging. However, this particular study does not directly dealing with a different area. According to McGrail (2008, p. 73), user-generated content (UGC) is referring to the “customer views or comments”. In line with this, Hamill et al. (2009) investigated the interaction with user-generated content (UGC) in tourism. As compared to the study of Hamill et al. (2009), the most useful source is Li (2010) who managed to identify the need for brand owners to out-compete brand critics by producing extremely strong brand narratives. However, these two studies are too general and lack quantification method which can provide the readers with a more generalized outlook concerning the selected research topic. To provide the readers with a better understanding of this study, the first part of the literature review will first identify and differentiate the types of social media tools that are commonly used by marketing managers. Eventually, strategic ways on how active engagement with UGC communities could provide large multinational companies an excellent marketing return on investment (ROI) will be tackled in details. Aims and Objectives Strengthening the link to user-generated content (UGC) communities could enable large multinational companies produce an excellent marketing ROI. Considering the shift from the use of traditional marketing communication (i.e. television and print advertisements) to word-of-mouth marketing strategy in online communication platform (i.e. Facebook and MySpace), this study aims to examine how large multinational companies could take advantage of user-generated contents or word-of-mouth strategy in Web 2.0 in stimulating growth in the business profit and sales. As part of the study objectives, the researcher will not only examine the different types of social media tools used in creating user-generated content but also determines how active engagement with UGC communities could make large multinational companies create an excellent marketing return on investment (ROI). Since user-generated contents could either create a positive or negative brand image, strategic ways on how large multinational companies could effectively manage negative consumers’ comments concerning a product or brand will be tackled in details. Literature Review Types of Social Media Tools Commonly Utilized by Marketing Managers Back in 1999, the blogging software offered by Blogger.com and Pitas.com allows the end-users to freely express their non-professional personal opinion concerning a product under specific brand (Douglass and Smith 2005, p. 371). Even though the use of blog software could help create a peer-group relationship by allowing the end-users to link their personal blog sites to other bloggers (Lister and Dovey 2003, p. 268), not all bloggers are continuously updating or activating their blog sites because of the presence of the more friendly-user interface such as the use of social networking sites. Through the use of RSS feed, podcast allows audio programs or music video which contains verbal interviews, speeches, music and radio programs to be downloadable online to computers, iPod, MP3 and/or MP4 players (Hall 2008, p. 162). Using the RSS feed reader; it is possible to publicize podcast files from one user to another. Founded by PayPal employees, video-sharing sites such as YouTube do not only allow the public to post their personal videos for public viewing but also provides the viewers the opportunity to leave their comment regarding the quality of the video materials (Lister and Dovey 2003, p. 268). As compared to blogs, podcasts, and video-sharing, more people are becoming heavily dependent over the use of social networks like MySpace, Facebook, Bebo, Cyworld, Friendster, LinkedIn, and Tribe.net because these social networking sites not only allows the end-users to have the opportunity to construct their personal public and/or semi-public profile available for public viewing but also provides them the benefit to create journals and upload photos or videos which they can readily share online to their few selected friends (Boyd and Ellison 2007; Lister and Dovey 2003, p. 268). Through the use of social networking or social media tools, the model of public relations has gradually shifted from one-way communication between large multinational companies and its target consumers to a two-way communication model (Edelman and Technorati 2006). Since the role of public consumers has shifted from being a passive receiver to a more active receiver of marketing messages sent out through advertisements (Rosen 2007, p. ix), Bianco et al. (2004) explained that the emergence of digital devices increases the risk of continuous declining trend over the use of traditional advertisements. Given the challenges most large multinational companies are facing when it comes to delivering the marketing messages to its target audiences, most marketing managers today are open in terms of gathering suggestions coming from other employees. Through teamwork, marketing managers are able to have better knowledge on how the company could maximize the use of its global marketing communication tactics. How Active Engagement with UGC Communities could Create an Excellent Marketing Return on Investment (ROI) Instead of spending a large sum of money on print or 30-second television advertisements, the ability of marketing managers to create a positive user-generated content (UGC) or positive customer views and comments concerning a product or brand could trigger positive results on marketing return on investment. Because of the emergence of social media through Web 2.0, the rate of television advertisers fell down to 35% in 2010 as compared to 1990 (Court et al., 2005, p. 39). In line with this, the trend over the use of other types of traditional advertisement such as the radio and print advertisement in newspapers and magazines also declined (Bianco et al. 2004). The existence of online communication platforms made available through Web 2.0 resulted to the development of UGC communities (Marsden 2007, p. xx). Aiming to capture public attention, a large group of semi-professionals and amateurs could enjoy the benefit of spreading their individual opinions concerning a wide-range of subject matter (Ogilvy 2008, p. 12). Consumers are willingly connecting themselves to their long lost friends through social networking sites like Facebook or MySpace. For this reason, consumers themselves are becoming unique publishers in their own rights. Instead of the need for large multinational companies to advertise its corporate brand and product, the end-consumers eventually gained more control and power in the creation of consumer-generated advertisements. According to Nyilasi (2007, pp. 169 – 170), marketing advertisements through word-of-mouth could not only create effective brand awareness but also influence in the creation of a positive consumers’ attitude towards a brand and product. This is necessary in terms of persuading the online viewers to purchase a product brand. Since large multinational companies have no control over the user-generated content, word-of-mouth or personal advertising and selling are among the newest marketing strategies that can be used in creating an excellent marketing return on investment (ROI) (Thorson and Rodgers 2006; Schindler and Bickart 2005, p. 37). Proposed Research Method Design In order to examine how large multinational companies could take advantage of user-generated contents or the use of word-of-mouth strategy in Web 2.0 in terms of stimulating growth in business profit and sales, this study will focus on conducting a quantitative and qualitative survey study. Designing of the research survey questionnaire will be aligned to the aims and objectives of this research study. Regardless of gender, age, and nationality, the completed survey questionnaire will be randomly distributed to marketing managers who has gained sufficient amount of knowledge through work experience with the use of social media networks. Combining the use of quantitative and qualitative research survey approach is necessary in order to address the limitations of each research method. According to Patton (1990, pp. 66 – 91), the use of phenomenological approach in research survey study is highly dependent over the use of qualitative questioning. On the other hand, Creswell (2003) explained that the positivist approach in research survey study is more focused on the use of quantitative research approach. With regards to phenomenological approach in research survey study, it is necessary to use open-ended questions to allow the randomly selected research survey participants to willingly share their personal opinions with regards to the research question. Through the use of open-ended questions, the researcher will be able to gather a pile of descriptive answers which could enable the researcher have a better understanding with regards to the research topic. Since the use of qualitative research approach does not provide the researcher with a more generalized insight concerning the research question, it is necessary to incorporate the use of quantitative type of research questions which can be easily answered by either ‘yes’ or ‘no’ (Ritchie and Lewis 2003). Proposed Target Population, Sample Size, and Research Study Venue The proposed target population for this study includes a total of 100 marketing managers who has gained sufficient amount of knowledge through work experience with the use of social media networks. Since it will be more difficult to travel from one company to another during weekdays, the researcher will conduct the actual research survey study at ____ (insert a Mall name) during weekends when most of the marketing managers are enjoying a little time off from work. To lessen the chances wherein the randomly selected research survey participants would choose not to participate in the actual research survey study, the researcher will purposely approach only individuals who are either drinking coffee in a restaurant or a coffee shop without a company to talk with. Likewise, the researcher will design a very short quantitative and qualitative research survey questionnaire so as not to take so much of the research participants’ precious time. Proposed Research Evaluation Method To easily interpret the gathered quantitative research survey results, the researcher will make use of a descriptive statistics which is composed primarily of percentage and frequency. To avoid developing a bias research study conclusion, the researcher will interpret the qualitative research survey results together with the gathered literature review. Proposed Research Schedule The researcher will completed the proposed research study within the next three months. In order to gain better understanding when formulating the proposed research study, the researcher will first conduct the literature review within the first two weeks followed by immediately design and print a total of 100 quantitative and qualitative research survey questionnaires. Between 4th to 8th week, the researcher will visit ____ (insert mall name) during weekends to randomly select 100 highly qualified research survey participants. Immediately after completing the research survey questionnaires, the researcher will proceed in interpreting and analyzing the gathered quantitative and qualitative research survey results together with the literature review. Between 11th to 12th week, the researcher will finalize the research study report. Proposed Time Schedule 1st – 2nd week Complete Literature Review 3rd week Design and print 100 quantitative and qualitative research survey questionnaires 4th – 8th week Visit _____ (mall); Randomly select 100 qualified research participants. 9th – 10th week Analyze and interpret survey results together with literature review 11th – 12th week Finalize research study report. *** End *** References Bernoff, J. and Li, C., 2008. Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review , 49(3), pp. 36-42. 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