Marketing And Social Network - Thesis Example

? Viral Marketing and Social Networking Acknowledgement It would have been rather impossible to write this research without the help of the kind people around me. Most of all, I would like to thank my friend (Name) whose support and patience in all times compelled me to stay determined in completing this research. I would like to acknowledge the advice provided and unsurpassed knowledge he holds without which this research would not have been possible. Table of Contents 1. Abstract………………………………………………………………............……………3 2. Introduction……………………………………………..……………….……………...…4 3. Research questions……………………………………………………………………………..……5 4. Background…………………………………...……….…………………………………..5 5. Research methodology……..………………………………………………………………………..8 a. Hypothesis…………………………………………………..……………….……8 b. Type of research……………………….………………………………….….…..8 c. Population size….………………………………………….……………………..8 d. Population characteristics………………………………………………….…….9 e. Sample size ………………………………..……………………….………….….9 f. Sample characteristics…………..…………………………………..…….……….9 g. Data collection tool………………………….…………….………..……………10 h. Research setting……………………………………………..…………………...10 i. Unit of analysis……………………………….…………………….…………...11 6. Limitations………………………………………………………………….…………..11 7. Empirical presentation……………………………………………………..…………….11 8. Conclusion and Analysis……………………………….……………….………………..13 9. Reflection………………………………………………………….……………………..16 10. Appendix………………………………………………………………………………..18 11. References.………………………………………………………………………………21 Abstract: The aim of this study is to determine the relationship of marketing, or in specific, viral marketing and social networks with each other with the help of a sound theoretical framework. The framework thus developed managed to form a study that points out dimensions that ensure a testable hypothesis. The study finds the relationship and interdependency of marketing and social networks on each other and questions whether the data collected by the social marketing intelligence is an ethical dilemma or not. The study is conducted with the help of a small scale survey and formal interviews that have been conducted over a college premises. The data thus collected is effectively analyzed to find answers to the research questions developed. It has been concluded that the variables under discussion, the viral marketing and social networks, are directly linked to each other and both have aided the advancement of each other over the growth cycle. 1. Introduction: Marketing is a business technique in which a marketing message is spread to the people by several means, with the aim of creating value for customers. This phenomenon encourages and facilitates marketers to increase brand awareness, aids product/brand/service outreach to its targeted customer segment, and achieve aims related to product/service promotion and/or selling. Out of the many types, viral marketing, according to Allen (2008, p 15), is a technique that uses social networks of other people so that they can propagate their business products and/or services. In viral marketing advertising is done by the passage of a marketing message by the word of mouth. This technique is referred to as viral marketing because like a virus it has the power of self-replication. Person to person information is bound to spread as people share their experiences with others and if a large amount of people receive certain information, an even larger percentage of people will get to know about it. This creates a potential for a speedy and exponential growth of the marketing message and ensures that it will receive more influence and exposure. Business people are of the stance that if they are able to make use of other people’ social network systems, they can rather decrease their marketing costs (Allen, 2008, p 16). Now social networking, which is at its zenith nowadays, is a term everyone is familiar with. A social network is basically a group of people gathered together for some specific purpose. Social networks come in various kinds. Some are big, some small; some are for business dealing, others for recreational purposes. Social network can be any group or cluster of people interacting together with some purpose in mind. Social networks can be in a workplace, in schools, colleges etc. but the most popular social networks are online. Social networking has been there since many centuries but only since the last hundred years has it been able to solve the problem of distance. This connection of people who are millions of miles away from each other is by far the most popular form of social networking (Cullinane, Singh, 2012, p.202-220). 2. Research Question: With a clear understanding of the vital parts of the topic, this paper aims at determining the relationship of marketing, or in specific, viral marketing and social networks with each other. The paper will also shed light on the problems which arise in this collaboration and look into the possible solutions. The main research questions that this paper aims at discussing are: 1. Has social networking revolutionized viral marketing? If yes, how? 2. Is viral marketing essential for the survival of social networks? 3. Is the data collected by social marketing intelligence an ethical dilemma? The main aim of this paper is hence, to find the relationship and interdependency of marketing and social networks on each other. For this purpose the use of both primary and secondary research has been employed. A small scale survey will be carried out in the college premises and interior town of Sundsvall, Sweden to gather results from primary research. Moreover, available literature will also be scanned to study the findings of experts in order to make sound conclusions about this research by comparing and contrasting results from both primary and secondary data. 3. Background Under the umbrella of Marketing, viral marketing is one of the best forms of marketing as it spreads from a person to another person. Social networking is the most popular Internet phenomenon today. Online social networks are the biggest source of interaction amongst people through the Internet. People not only talk to their friends but they also share their experiences, their likes and dislikes etc. If they find a good product they usually recommend their friends to use it too. People naturally trust the word of their friends more than they trust any advertisement. So according to Rosenblum (2007, pp. 40-49) viral marketing through social networks is the cheapest and most effective form of marketing as people get to know about new brands or brand promotions through the people they trust. Viral marketing through social sites is no doubt influential and fast but certain questions rise regarding this technique and it is important to seek their solutions as well. As Ryan (2011, p.2-7) puts it, social networks provide interaction among people of common interests so that if they hear of something gone viral which intrigues them, they will be sure to let others know about it as well. Social interaction has canceled out all the distances and this is the main reason why viral marketing is most effective via social networks. Even though viral marketing is very fruitful in social networks but people are often seen complaining that nowadays social sites have just become sites for putting up advertisements. The main purpose of social networks is getting lost in between as the social sites are losing the social interactions and are becoming advertising platforms only. No matter what site you open, an advertisement is popping up, blocking the screen, or covering the sides etc. These advertisements sometimes become a nuisance; viral marketing on social networks is usually exploited for wrong purposes and is a source of spreading negative information, scandalous content, celebrity propaganda, and fake pieces of information etc. Social networks can be used to earn profit and millions of people are doing that today. Savvy social networks gave profound methods to promote their business, launch their products, and advertise their brands through various social networks relying on the technique of viral marketing. Social network advertising is a significant part of any social network. Most social sites generate funds for providing services to their customers by advertising on their sites. Viral marketers put on advertisements and in return have to pay a specific amount of money to the host website or social network (Zarrella, 2009, p.11-17). This money is not that much but imagining the number of advertisements in a social network alone tells us how much profit can be earned by managing a social networking site. Some sites also have the option of no ad policy, where no matter what they do they won't open their sites for marketing and advertising. Due to such a step, it might happen that the company getting bankrupt as their resources to run a non-profit network run out sooner or later. The question rises that what if the capital needs of a social networking site are not fulfilled, and that there are no other means for their fulfillment except for advertising and marketing; is there any chance that the social networking site may still survive? This is a question that needs more research. Social marketing intelligence is a method of extracting information of the users of the targeted site in order to know the demands and needs of that community and to target a specific group of people. As asserted by Van den Bulte & Wuyts (2007, p. 16), establishing a new site for a new product never gets as much response as launching it to a network where people are already interacting with each other. Moreover, according to Vered (2007, p.89-144), launching products by targeting a specific market is a very effective technique, and especially when the likes and dislikes of people are revealed by social marketing intelligence, it becomes clear which products to launch and which brands to establish. Social media intelligence is a fairly novel technique but it is very effective, fast implementing, and has a significantly lower cost. 4. Research Methodology: Hypothesis: The hypothesis developed for the research can be stated in the following lines: Hypothesis 1: H0: Social networking has not revolutionized viral marketing. H1: Social networking has revolutionized viral marketing. Hypothesis 2: H0: Viral marketing is not essential for the survival of social networks. H1: Viral marketing is essential for the survival of social networks. Hypothesis 3: H0: Data collected by social marketing intelligence is not an ethical dilemma. H1: Data collected by social marketing intelligence is an ethical dilemma Type of research: The conducted research studies the overall effect of social networking and viral marketing on each other. Therefore the overall nature of the research is a combination of two types of researches. The combination is thus of: Cross-sectional Research: This is so because the study conducted manages to find the effect of viral marketing and social marketing on each other at a given point in time. Qualitative Research: This qualitative research is basically a form of research that does not use any scale that asses the variable quantitatively. Since the research did not use a numeric rating scale, the study held a qualitative nature. Population Size: The population size is basically the group of respondents that are although not currently in use, but do have the potential to be included in the sample group later on. The total numbers of respondents that were chosen for the research were identified as the number of people in the area of Sundsvall in Sweden. The survey was carried out in a specific sample area. As for the secondary data, an adequate amount of published resources were used to contrast and compare the findings and almost 20 sources were consulted. Population characteristics: The Population of Sweden is a combination of various ages and gender. The genders selected for this research, were both male and female; their ages ranging from 25 to 35 years. When it comes to defining the overall characteristics of the population, it was identified that since the population managed to hold a firm relation to the research objectives, the population of Sweden formed the population of this research (Bartlet, Kotrlik& Higgins, 2001, p 6;19). Sample Size: The sample size is basically a representation of the population previously identified. Thus, the total numbers of respondents chosen out of the population were 56 respondents. The sample belonged to the college premises and interior town of Sundsvall, Sweden to gather results from primary research. In order to reduce the chances of sampling error, the study uses stratified sampling. The process began by identifying the stratum and recognized a sufficient portion of the population. Next, the technique of random sampling managed to select the subjects for the research. Thus, this method managed to ensure the availability of accurate information that directly related to the study. Considering the earlier statement it can also be confirmed that it may be difficult to identify the strata from the population selected, but the thing that must be kept in mind is that the results obtained through the stratified sampling manages to present a better result than the approach of random sampling (Barreiro &Albandoz, 2001, p.4).The current study thus used the above mentioned approach in order to achieve result with minimum chances of errors. Sample Characteristics: The Sample thus selected contained 32 females and 24 males out of a total number of 56 individuals. Other than the age, it was also observed that 87% of the respondents ranged between the ages of 21-25 years. The respondents belonged to different ethnic and religious backgrounds. Data Collection tool: In order to collect primary data necessary for the research, questionnaires and formal interview were used as the data collection tools to conduct the survey, which was the intended data collection method. These questionnaires and formal interview were standardized in nature and thus enabled effective collection of data. The questions were unbiased aiming at finding out the answers to our research questions. Other than that, secondary research was carried out for which extensive literature was reviewed to ascertain if any of the authors’ studies provided answers to our research questions. Research setting: The current research was conducted in the natural setting. This is so, because the research aims to identify the relation between viral marketing and social marketing as well as the ethical dilemma that is under question. Thus, the study was conducted in a college setting which provided efficient collection of data, near to reality. The setting was kept natural, the respondents were asked to fill out the questionnaire in this setting along with the consent form to be later returned to a specified location. The interview took about 15 minutes to effectively achieve the required answers. Unit of analysis: The study has been conducted as a group unit of analysis. To be more specific, this approach was identified because the study was conducted at the college located at Sundsvall in Sweden. Limitations: The research faced the following restrictive weaknesses during its execution: Access: Almost every study is limited to the amount of access it is provided regarding the as well as the necessary people and information. As far as the current study is concerned, it was not completely denied of the information but the concern of whether the respondents handed out a sizeable amount of information in the interviews. Longitudinal effects: The time needed to test the hypothesis was carried out in a limited time. Therefore, the change or stability of the selected sample of the study was controlled by the due date. Respondent Bias: Another concern that was obvious in the research was the respondent bias. The chance of the respondents filling the questionnaires in a biased manner was another major concern that the study faced. As far as the ethical considerations are concerned, the research managed to ask questions regarding the age, the frequency of time sent of the internet, the kinds of web sites visited and other questions, so the principle of voluntary participation, informed consent, risk of harm and the participants’ confidentiality (Wiles et al, 2008, p.21) were specially catered to. It was also made sure that the research followed strict standards of anonymity (Fritz, 2008, p. 13). 5. Empirical Presentation: As the study used standardized questionnaires to develop results, the following data was collected that stated the current view of the respondents regarding the variables under discussion. Through the questionnaires, it was determined that out of the 56 respondents, most of them spend most of their time online. More specifically, 53 of the respondents, which were both males as well as females, stated that the time spent more than 4 hours of their day on blogging and social networking sites. Further it was questioned if the respondents feel that the social media has grown and what was there frequency of visit to social networking websites. The response was affirmative which stated that out of the 56 respondents, 53 respondents which was an active internet user, visit social networking sites daily. One question specifically hit the most visited social networking site that was Facebook. According to the data collected, it was stated that approximately a 53 of the respondents visit this website daily while 3 visit every other week. It was also stated that almost every respondent had a Facebook account. Almost 39 of the respondents said that they have observed the advertisements placed on the right side of their homepage while 17 said they didn’t. The result also stated that almost every individual has internet access from their mobile phones, but only 22 of the respondents accessed social media other than Facebook from their mobile phones. It was thus gathered that almost 49 percent of individuals favored shopping from the internet and stated 55 individuals to put up an advertisement as their cover photo given it was their own business. As for Youtube, the questionnaires’ results showed that almost a hundred percent of respondents have visited this site but only a small percentage stated that they have ever seen an add on that website which resulted as 5. The website is used more as video streaming where the percentage of men as respondents was higher. When it came to shopping online, almost 49 of the respondents stated that they shop online and find it easier. The result stated that a high percentage of individuals preferred this mode of shopping and mostly learned about discounts and other new brands through their friends online. They stated that they mostly followed brands as asked by the questionnaires and a total of 33 supported this view. As for the rest of the respondents, they stated that they usually followed some celebrity. When asked about the recommendations, the interviews as well as the other collection techniques collected showed that almost every respondent is dependent on the recommendation provided by their friends and peers. It was thus concluded that the social networking in this scenario has become a major factor for the influencing parties to spread their message across the masses. Almost every respondent has a habit of reviewing product or service before purchasing it. Further, it was also found that the review carried out before the purchase of any product scanned the price as well as the quality of the product. It was thus collected that the social networking sites will find out more people supporting a cause than political rallies or a sporting event. When asked about the respondents’ view on online data collection, they stated that most of them haven’t really thought about it. Those who did said that it isn’t right to give out their information to any third party. Every participant stated the need for privacy and said that their expectation for such a clause to be upheld will always be there. It was also gathered from the interview that they would never favor the use of any other person’s data as well. They said that a need for internet protocol is needed and trust is the major problem on the internet. 6. Conclusion and Analysis: With the above data collected through various data collection methods, it can be stated that interaction among individuals is one of the biggest factors that aids the growth of virtual activities as supported by Pitta and Fowler (2005, p. 265-274).When the sample responded, it was observed that it is only the viral marketing that hampers the face to face communication in many cases. It was analyzed that Social interactions are not the only factors influenced and altered by online social networking; modes of marketing have also evolved to keep pace with the fast world of Internet. Especially viral marketing has been revolutionized by the increase in social networking usage. Before long, marketing was something you did to the customers or for the customers. Now however, it has been revolutionized and viral marketing is something you do with the customers. They become a part of the strategy, they trust you better and they trust your products better. In this modern era, if considerate planning is not done before launching a product and advertising it online, instead of being a cheap and fast way of marketing it will turn into a nuisance for the company with ad-block, and pop up blockers, etc. With the increasing communication modes and growing networking, it can be stated that through the masses present at the social networking sites, specific trends have become easier to detect. The trend thus detected further fuels the predictability of the human behavior that is an important tool for the marketers. It has also been analyzed that the presence of such trends can further divide the target market for viral marketing. More specifically, due to the presence of social networks, the viral marketers have a target market divided into groups that share the same beliefs such as the education, religion, political beliefs, and occupation. This stratification has further simplified the process for viral marketing (Uhrig, 2010, p.2-20). Evidently there is one limitation identified through this study. The study has pointed out that sometimes the social cues detected might not be as accurate as expected and may lead to a negative word of mouth for the intended marketing campaign (Wellman and Barry, 1983, p155-199; Gulia, 1999, p. 167-195; Wellman et al, 1996, p213-238). Nonetheless, referral behavior and viral marketing has been aided by the social network far more than the above stated problem. It has been observed through the study that with the availability of a positive social network, viral marketing can do wonders. Thus, hypothesis one stands true and can be concluded as: H1: Social networking has revolutionized viral marketing. Moving on, it was studied if viral marketing is an important factor in the survival of social networks. The first pop up blocker was developed shortly afterwards the first ad was developed in 1994. This was the beginning of marketing on the Internet but it was not as well received as it had been expected. Blocking the pop ups showed that the customers wanted things in their own hands and did not like the idea of being pressed on. So instead of forcing them with advertisements, a formal e-market was devised. The traditional advertising and marketing pans were discarded and when interacted with the customers in a polite un-patronizing way, it was realized that they become more attracted to the offers the company has to make; they are more vocal about their decisions and choices and share them with others (Silverman, 2011, p.46-87). According to the current study it was found out that a sizeable amount of individuals interact with the people they know. More specifically, these individuals always have something in common that brings them together and thus gives them something to discuss about. When the users identify what is common between them, the rate of usage of the internet and social networks increase. This means, that when they understand the common factor they interact more with each, thus increase the number of click for the social networks and thus aiding a massive amount of revenue for their survival. Given the scenario, the social network, thus use the viral marketing to point out that important common factor between individuals that would bring them together. This move will thus allow these social networks to gather more and more individuals with various common interests and thus increasing the usage of the sites so that the survival graph stays high. This idea is also supported by Trusov (2009, p.90-102). Thus hypothesis number two can be concluded as: H1: Viral marketing is essential for the survival of social networks. Most of the respondents of this study had been with the belief that they are uneasy with the fact that their data is being supplied and collected for companies or third parties. It has been analyzed that where the information collected is an important factor in social progress with the use of viral marketing, collection of information by the social marketing intelligence has the tendency to lead towards crimes and threatening of cherished social values (Prenhall). The existence of social networks has aided towards easy distribution, assembling and integration of information that is mostly without the consent of the user. Hence with the stated concerns by the respondents it can be concluded that: H1: Data collected by social marketing intelligence is an ethical dilemma 7. Reflection: Viral marketing and social networking are two terms which go side by side these days as the existence of one without each other is very difficult. Their collaboration in a smooth and steady ways is very beneficial and it is a great source of earning revenue as the economic conditions of the business world is collapsing all over. The two entities evolved with each other and they have created a revolution in the technological and economic world and cannot survive without each other (Rutledge, 2008). The field of viral marketing and social networking is a very dynamic field. It has many more novelties and better ways of achieving success to see in the coming years.If they remain on the same track then, further horizons will be opened for them in future years but the privacy of users and their trust should be valued more than anything. If people had not been so socially close to each other by social networking sites etc they would not have any means to enjoy and experience new launches in a comfortable way and to be able to share them quickly with other people of the same interests. Viral marketing has acted out as a tool that has provided a platform where entertainment interaction and marketing are collaborated in a fascinating manner. Further research Keeping the results obtained from this research in mind, it can be stated that this research will prove to be a strong basis for future studies. As the current findings have enhanced our knowledge regarding viral marketing and social networking, it has thus added to the existing literature and has the tendency to be carried out at a wider sample to examine trends in different places of the world. Appendix: Survey questionnaire Name: _____________ Gender: _____________ Age: ________________ 1. How many hours do you spend online approximately in a day? ____________ 2. Which websites do you usually visit? _________________________________ 3. Do you feel that the social media has grown? _________________________ 4. What is the frequency of your visit to the social networking websites? Is it daily? ________________ 5. Do you have a Facebook account? a. Yes b. No 6. Have you ever observed the advertisements placed on the right side of your homepage on Facebook? a. Yes b. No 7. Do you have internet access from your mobile phones? a. Yes b. No 8. Do you access social media other than Facebook from your mobile phones? a. Yes b. No 9. Would you favor shopping from the internet? a. Yes b. No 10. Will you be willing to put up an advertisement as your cover photo for your own business? a. Yes b. No 11. Do you visit Youtube often? a. Yes b. No 12. Have you ever seen any advertisement on this website? a. Yes b. No 13. Do you follow a certain celebrity or just a brand? a. Celebrity b. Brand 14. Do you take recommendations from your peers before buying a product? a. Yes b. No Interview questions: Do you prefer taking recommendations before buying any product? Who do you consult before buying a product? What are your thoughts regarding online data collection? Do you think it is right to give your information to the third party? References Allen.K (2008) Viral Marketing 100 Success Secrets- Secret Strategies, Buzz Marketing Tips and Tricks, and Interactive Marketing: 100 Simple Online Campaign Principles, Emereo Pty Ltd London, UK, p, 15-16. Barreiro, P. L., Albandoz, J.P., (2001) Population and sample. Sampling techniques, MaMaEuSch, Management Mathematics for European Schools, University of Sevill, p (4). Bartlet, E.J.,Kotrlik W.J, and Higgins. C.C, (2001) Information Technology, Learning, and Performance Journal, p (6;19) Cullinane, J. and Singh, T. (2012) Untitled. International Journal of Electronic Marketing and Retailing, 3 (3), p.202-220 Fritz, K. (2008) Ethical Issues in Qualitative research, Johns Hopkins School of Public Health, Department of International Health, p (13). Gulia. M (1999), "Virtual Communities as Communities: Net Surfers Don't Ride Alone," in Communities in Cyberspace, Mark A. 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Wiles.R, Prosser.J, Bagnoli.A, Clark.A, Davies.K, Holland.S, and Renold.E, (October, 2008), Visual Ethics: Ethical Issues in Visual Research, National Centre for Research Methods, p (21) Van den Bulte, C. and Wuyts, S. (2007) Social networks and marketing relevant knowledge series; Marketing Science Institute. p 16 Vered, A. (2007) Tell A Friend -- Word of Mouth Marketing: How Small Businesses Can Achieve Big Results. Lulu.com, p.89-144 Zarrella, D. (2009) The Social Media Marketing Book. O'Reilly Media, Inc., p.11-17 Read More