Strategic Branding through Social Engagement Marketing - Research Proposal Example

PROPOSAL Strategic Branding through Social Engagement Marketing Introduction This proposal is being submitted in compliance with the requirement for application for the PhD program in global marketing. The proposed research seeks to determine the viability of Social Engagement Marketing as a principal tool in Strategic Branding. The study shall explore the increasingly powerful phenomenon of online communities made possible through the expanding reach of social media, as a major tool for business to attain its strategic goals. It proposes to describe the present state and future directions of social media development, as well as the attributes of the online communities spawned through its use. This shall form the foundation for recommending specific and practical directions for the integration of such tools for business, and a citation of advantages and pitfalls that may be expected as a result. Reasons for choosing the topic The topic has been chosen after a careful scan of recent articles in peer-reviewed academic journals and professional publications. It was chosen because of several reasons, namely: 1. Novelty – The research shall examine attributes of a newly emergent phenomenon, the widespread use of social media and the growth of online communities as channels of opportunity for global marketing 2. Significance – Based on existing literature, the aforementioned channels present strong potentials for use in social engagement marketing in the international arena, due to ease of access, wide reach, low cost, and powerful content delivery. 3. Dearth of research – To date, there have been few articles written about the topic, and research has been fragmented and limited. Scant investigation has been conducted on the systematic use of strategic branding through online communities in social media. 4. Continuing development – The proliferation of social media has assumed several forms in the past which had provided the setting for earlier research. Social media, however, is in continual evolution due to the rapid changes in personal electronic data communication. Technical advances continue to enhance the potential of this channel which must be explored through continual research. 5. Necessity of integration – As mentioned, previous research has been fragmented, and depending upon the time they were undertaken, limited in scope. Advances made since then highlight social media and the creation of online communities as viable strategic tools to be integrated into the marketing function of a business undertaking. This research seeks to establish links among the technical, social, and commercial aspects of social media and online communities. Other than the foregoing criteria, the researcher is particularly interested in the topic because it encompasses two areas of personal interest to him: the use of modern personal communication media linked through the internet, and the field of international marketing that comprises the main success factor for business organizations in the future. Brief Literature Review Studies have established that the reputation of brands forms an integral part of the success enjoyed by products fielded under that brand. Out of a company’s total market capitalization (that is, the value of its stock based on its last transacted price), it is estimated that anywhere from 40 to 60 percent is attributable to “intangibles” which includes expectations concerning ethics and transparency of companies particularly as presented by social media (Timm, 2010). People’s expectations have risen as more information becomes available online and new forums for engagement have evolved. Timm’s research has shown, however, that Canadian companies are unable to sufficiently take advantage of this medium of communication as a marketing tool. The reluctance to maximize the benefits of social engagement through online communities has been explained as a natural fear (on the part of management) to lose control of their brand. From a traditional corporate communications perspective, releasing the brand into the online communication labyrinth could be intimidating. In contrast to the familiar broadcast advertising which is essentially one way or unidirectional, the new medium not only allows customers to talk back at the advertiser, but moreso talk among themselves concerning the merits of the brand. This embodies the threat that negative comments be shared more than positive, thereby destroying the brand’s integrity. The impact of brands is critical to the development of customer relationships and materially determines firm performance. Global brands in particular are advantageous for firms due to their ability to create economies of scale and scope in major cost centres such as manufacturing and particularly research & development (Eisingerich & Rubera, 2010). Aside from economies of scale, global brands also realize added value just from the fact of being global (Holt, Quelch, and Taylor 2004). Thus, to ignore the social engagement channels by which global branding may be effected or enhanced is to forego the greater cost efficiency and added value that shall define international marketing during the emergence of the online generation. The same was confirmed by Heatley (2010), whose report indicates that contrary to the experience in Canada (Timm, 2010), the general attitude of a great number of international companies initiate two way communication among their customers, in the course of which brand loyalty is engendered. In the past, the power of virtual communities in implementing C2C marketing strategies had been well explored, with venues such as eBay having established a reputation for reliability and thus garnering the trust and confidence of the international consumer pool. Heatley comments that there have been tentative forays into B2C strategies through virtual communities, and there have been only a few incisive studies on the matter. (B2C refers to business-to-consumer marketing, and in this case involves online communities established by the corporation itself as a strategy to develop a familiarity between the company and its customers.) There is thus much room for improvement. Literature on B2C approaches to online social engagement may be few, but are slowly gaining in number and depth. Anone, Colot, Croquet, Beerts and Pozniak (2010) describe experiments by international businesses in the establishment of virtual communities of consumers. Discussion on the particular strategies in tapping the online social communities is sorely lacking, most likely due to the superficial regard with which online social media is still regarded by the traditionalist business marketing approach. The more progressive and innovative firms themselves initiated their own B2C communities in order to accelerate the process of development. In contrast, C2C communities developed spontaneously in the course of time until enterprising, technically adept, individuals took the initiative to organize the exchanges and ensure privacy of communication and integrity of data handling. The use of new and continually evolving technology is not as easy as it purports to be, and on one side, the uncertainty with the technology is the cause behind reluctance to adapt this strategic direction as a major activity. There is also much discussion about the economic potential of virtual communities, although there is scanty empirical proof of successful economic leverage. As the virtual community has practically redefined the manner in which members of the global community deal with each other, it is slowly evolving into the unavoidable venue for people and institutions to transact with each other. Research earlier in this decade have found that economic activities that are associated with the functioning of virtual communities, to flourish, must not only coincide with the communities’ social interactions, but must be embedded with them (Balasubramanian & Mahajan, 2001). Finally, it should be mentioned here that the constantly evolving conceptualization of shareholder engagement and online social marketing has begun to take on a new guise in the form of Stakeholder Marketing (Chakravorti, 2010). The study explores the innate complexity of the business firm opening up to a diverse and sometimes conflicting pool of stakeholders with different interests and ideas. While the feedback to the company is considered important in the design of marketing strategies, the attribute of social engagement marketing that makes it unique among other feedback methods is that the ease with which a greater number of people could send direct messages to the firm’s management challenges the capacity of customer service activities and resources. It must be recalled that individuals who have sent messages would most likely expect changes in favour of their stated opinions, and failure for this to materialize could backfire, and turn away disenchanted stakeholders rather than retain their loyalty. Proposed methodology The research would be conducted through deployment of a written survey questionnaire among international business firms as represented by their marketing personnel who deal directly with international strategic development. Person-to-person interviews where possible, or if not possible, through other means such as telephone or online conferencing will be conducted with the marketing manager or marketing unit head in companies of interest. Data gathered shall be quantitatively analyzed as to the primary data contained in the survey questionnaire, and qualitatively assessed as to the primary data gathered through the personal interviews with the appropriate respondents. Respondent sampling will abide by purposive sampling procedures, where individuals shall be assessed as to their suitability to be respondents to the survey. Critical factors shall include the individual’s competence and experience with regard to the various facets of global marketing, the use of social networking or social engagement as a strategic tool in marketing, and operational advantages and disadvantages of the use of such a tool. Conclusion The foregoing research proposal is but a cursory description of the intended research to be conducted by this applicant, should my petition be favourably considered and given due course. In closing, may I express my sincere desire to join the program, and I hope that through his proposal I had demonstrated the ability to conduct and write graduate level research on topics of salient nature. Should such be the case, this research proposal shall be further developed in order to render it more suitable for approval in the PhD International Marketing course. References Balasubramanian, S & Mahajan, V 2001 “The Economic Leverage of the Virtual Community”, International Journal of Electronic Commerce, 5(3), 103-138 Chakravorti, B 2010 “Stakeholder Marketing 2.0.” Journal of Public Policy & Marketing, Spring 2010, 29(1), p97-102 Eisingerich, A B & Rubera, G 2010 “Drivers of Brand Commitment: A Cross-National Investigation”, Journal of International Marketing, 18(2), 64-79 Heatley, M T 2010 “B2C Virtual Communities in Global Brand Strategy – The Strategic Planning Process”, LP Media Global, 9 March 2010. Accessed 10 June 2010 Holt, D B, Quelch, J A, & Taylor, E L 2004, “How Global Brands Compete,” Harvard Business Review, 82 (September), 68–75 Online Community Report 2010 “Social Marketing Compensation Research”, Community and Social Media Research, 9 March 2010. Accessed 10 June 2010, Timm, J 2010 “Branding by the masses”, Canadian Business, 83(7), 10 May 2010 “Virtual Communities – Some Prominent Virtual Communities” Accessed 10 June 2010 Read More