Social Media as the Cost-Effective Marketing Tool for Charities and Commercial Firms - Research Paper Example

Online Social Enterprise Contents Contents 2 3 Introduction 3 Discussion 4 Theoretical Model 4 Research Methodology 6 Case Study Analysis 7 Conclusion 12 References 13 Abstract The entire study encompasses different dimensions of social media. In current scenario social media is considered to be cost-effective marketing tool. There are various techniques adopted by firms in context of social media. Commercial firms implement social media marketing campaign with profit motives. On the contrary, social enterprises mainly focus on building network to collect funds for societal well-being while selecting social media as a marketing approach. There have been two case studies included in this study of Starbucks Corporation and John Taylor Hospice. This study is totally based on secondary research. Introduction Marketing strategy is a common phenomenon adopted by organizations. The major objective of this strategy is to communicate brand message to target audience. Every firm encompasses a specific brand message to be conveyed so as to drag attention of target group. There are different approaches which are effectively utilized by organizations as their marketing tools and techniques. In earlier years, focus was on traditional marketing practices but in recent years new digital concepts have been included in the system. Digital marketing approaches are inclined towards adopting advanced technologies in order to transmit required message to audience. Social media is an innovative platform incorporated by many firms. There are different aspects of social media like spreading awareness, involving target group in campaigning activities, generating funds, highlighting special elements of the brand, etc. In this study, more emphasis shall be given on analyzing the concept of social media. It is observed that social media concept differs in commercial firms in comparison to social firms. Social enterprises utilizes social media concept to generate funds and spread awareness amongst public. It is essential that charities are able to communicate its noble cause or social message to target audience. Lack of awareness at times deprives social enterprises from collecting funds. On the other hand, social media have been portrayed as a platform for conducting branding activities of commercial firms. These kinds of firms require extensive promotional activities so as to remain competitive in the industry. In this particular study, differences and similarities of using social media by charities and commercial firms shall be further elaborated. Discussion Theoretical Model Social media in current scenario is becoming an important constituent for all organizations. Internet technology development has contributed magnificently towards accessing information online or posting comments online. It can be stated that all these communication techniques have facilitated growth of social media concept. Traditional marketing approach comprised of exchange of information between friends, peers or relatives. However in modern era there has been significant shift towards mass media. Every organization aims at accessing large percentage of target audience so as to gain desirable profit margins. In many mass media approaches, there is existence of one way of communication but social media has initiated two-way communication system (Li, 2010). To be more precise social media facilitates retrieval, solidification and storage of online word-of-mouth content. There are different theoretical frameworks based on social media. Most relevant one is a multi-dimensional framework that encompasses all elements of social media. It mainly consists of four elements as highlighted in figure 1. Figure 1: Modules of Social Media (Source: Kotler and Keller, 2012) As per figure1, these four dimensions are basically based on different theoretical frameworks. McLuhan’s media theory forms the basis of this integrated framework. McLuhan was able to separate media into two forms such as hot media and cool media. Cool media represents seminars, television, etc., where people needs to give effort in order to understand the content. Hot media indicates photography, films, etc., where senses of viewers is enhanced and much effort is not required (Nair, 2011). The integrated model along with connections amongst social media components have been represented in figure2. Figure 2: Integrated Meta Framework (Source: Contractor, 2009) According to figure2, social networking model is well defined by three theories social penetration theory, social exchange theory and McLuhan’s media theory. This aspect will deal with various layers of confidential information along with significant relationship levels. Purchase funnel and social graphics demonstrates frequency of commenting and posting on social networks by target audience. Research Methodology Research methodology outlines the structure to be followed in a study. This study shall be centered towards analyzing marketing frameworks adopted by two types of organizations – commercial firm and social enterprise. There are different ways to gather information related to a particular study. Primarily research study is classified into two types such as qualitative and quantitative research. Quantitative research mainly deals with market related data or those data which can be statistically measured. On the other hand, qualitative research takes into consideration opinions or views of experts. This form of data cannot be analyzed using statistical tools. Data being collected are of two types like primary and secondary data. Secondary data is basically obtained from journals, websites, books, articles, magazines, etc. Primary data is acquired from questionnaires, interviews, focus group study, etc. The selection of research methods is totally dependent on nature of the study. For instance, in some study there is demand for expert’s opinions whereas in another study there is more scope for collecting raw data from market. In this study more emphasis will be on analysis of secondary data. The use of social media by different types of firms like charities or commercial firms shall be obtained from secondary source of information. Case Study Analysis Many commercial firms have opted for social media marketing strategy. This strategy gives a competitive advantage to commercial firms in terms of accessing large base of consumer market segment. Starbucks is one such commercial firm which has incorporated social media concept within its system. The organization is a global coffeehouse chain of America. Over the years, Starbucks have been offering exceptional coffee to its customers. The company possesses expertise in the form of large base of loyal customers and quality products. It is considered to be the biggest coffeehouse chain across the globe. Their operations are spread across 64 countries with a total of 21,536 stores. Starbucks offers wide array of products such as cold and hot beverages, teas, snacks, pastries, whole bean coffee, etc. The coffeehouse was firstly established in 1971 by three founders like Zev Siegi, Jerry Baldwin and Gordon Bowker (Starbucks Corporation, 2015). Starbucks Corporation has always believed in extensive advertisement strategy. There have been small changes implemented in Starbucks logo in order to address changing taste and preferences of customers. The company maintains a large base of loyal customers and it offers huge amount of discounts to its customers (Dellarocas, 2003). Word of mouth publicity has enabled the firm to acquire desirable market share and retain its market position. However in recent years the company is focused on developing marketing strategies for social media platform. This company has been utilizing social media from early days of this concept’s incorporation. Starbucks success and growth is greatly dependent on social media marketing strategies since 5 years. The firm positioned its brand as an affordable luxury where individuals can enjoy coffee and spend time away from regular routine. Starbucks has occupied leadership position in context of adopting the approach of social media. It has been witnessed that this organization structures social media marketing strategy around official website. There are certain social platforms selected by the company in order to communicate brand message and its offerings to target group. These innovative platforms are Youtube, Facebook, G+, Twitter, My Starbucks Ideas and Pinterest. Social media have been able to create difference for the company because of many reasons such as customer relationships, dealing directly with customers, facilitating sharing, initiating customer engagement, enabling customization, giving more emphasis on My Starbucks Ideas, reflecting mission or values, and undertaking action. All of these components of Starbucks’ social media marketing strategy are associated with gaining high profit margins. The company aims at building customer relationship and expands its business operations across the globe. Starbucks created Facebook page to engage customers for sharing views or opinions. Word of mouth publicity for the company has been enhanced through this approach. A community has been formed in Facebook by the company where customers can share their opinions and experiences (Fill, 2006). The strategy of the firm behind social media campaign is to strongly connect with each customer and then subject them to some interesting advertisement campaigns. Starbucks is inclined towards following its customer base so as to ensure that customers are aware about brand offerings. It utilizes social media as a platform whereby strong connections can be developed by target group and existing customer base can easily influence others to opt for high quality products of Starbucks. Big brands like Starbucks believe in engaging with online community. The theoretical model portrayed in figure2, can be effectively applied on Starbucks. Starbucks’ main actors in social media campaign are its fans or customers, community members, etc. They generally contribute because they are highly satisfied with company’s quality offerings (Lasserre, 2012). Social networks enabled the firm to develop long-lasting relationship with customers. Word of mouth publicity enabled the company to stay ahead of competitors like Costa Coffee. Media communication enables an organization to implement one-way communication but social media facilitated Starbucks to connect with customers directly. On basis of this platform company can even focus on customer’s suggestions and implement it for further improvement. Social graphics component indicates that Starbucks designs its social media marketing strategy based on likelihood of customers (Huber, 2011). Their advertisement campaign is formulated for those customers who have tasted Starbucks products or have heard about its exceptional taste or superior quality. Social feedbacks are efficiently used by the company to motivate customers for purchasing their product line. Buyers purchase behavior is significantly influenced by peer reviews, word of mouth from friends, etc. This dimension is explored by the firm in context of promoting products and obtaining customer feedback. John Taylor Hospice is one of the renowned social enterprises located in United Kingdom. This firm occupies reputable position in the directory of Social Enterprise Mark. John Taylor Hospice has been given a golden mark due to its non-profitable objectives. Social enterprises need to be focused on well being of society. The major objective of John Taylor Hospice is to provide facilities to needy people. This organization attempts to minimize financial and personal cost of death and illness. Apart from providing services to West Midlands and Birmingham, the firm also tries to reach out to other geographical regions. It has adopted an innovative tagline which states it to be a family friendly company. John Taylor Hospice denotes 24/7 service for all those individuals who find it difficult to survive. This social enterprise promises to be beside every needy individual (John Taylor Hospice, 2015). It takes into consideration differences which are prevalent in families and within individuals. All their extensive care is ‘taylormade’ in order to mitigate common problems faced by individuals in their old age. Their entire approach is divided into three segments such as alleviating pain, rekindling possibility and alleviating pain (Hudson, 2015). Volunteers of John Taylor Hospice are aligned with organizational goal of providing help and personal care to resolve any financial issues. The social enterprise has gained expertise in handling various pains like spiritual, physical and psychological. There are camps organized by the firm where special treatments and techniques are given to affected individuals. It gives an assurance to people that they are not alone but have a helping hand. A weekly clinic is run by the firm known as Pari Passu that comprises of clinicians and specialists who can assist on pain management techniques. There are new mechanisms implemented by this social enterprise whereby illness is taken away from people by making them take rest and eliminating their fears or worries. Social media marketing strategies is also adopted by this social enterprise to promote their widespread operations. Some similarities exist between social media marketing techniques incorporated by commercial firms and those used by social enterprises (Wintzer, 2007). The first similarity lies in considering social media as a platform where these firms can share their respective brand message and attract attention of target audience. It gives an opportunity to firms may that be commercial or social to directly engage with customers. This form of engagement facilitates better business opportunities in coming years. The major objective behind commercial firms utilizing social media is to draw a line of differentiation. It is essential for these firms to focus on their differentiation strategy in order to be more competitive in the market place. Commercial firms on basis of this strategy drive customer attention to generate high profit margins (Bruce, 2013). Return on investment is a common goal for all commercial firms while adopting social media concept. Social media is considered to be most cost effective medium in terms of communicating with target audience and transmitting brand message. Innovative social media campaigns are designed by commercial enterprises in order to highlight brand offerings and respective market positions in front of customers. On the contrary, strategy of social enterprises during designing social media campaign is completely different. Their focus is on attracting customer’s attention so that funds can be accumulated for the well-being of the society. Differentiating elements are not highlighted in such campaigns but offerings or features are more emphasized on by social enterprises (Pierce, Kostova and Dirks, 2003). These firms measure return on investment through funds collection and accomplishment of societal goals. John Taylor Hospice has been able to create a platform where people can view their projects and also contribute effective opinions or ideas. The social enterprise incorporates these ideas in order to facilitate relief programs for needy people. Social media platform even enables target audience to directly communicate with the firm. Unlike brand building which is commonly observed in commercial firms, these organizations are inclined towards spreading awareness across wider geographical base. In overall context, profit motives differentiate commercial firms from social enterprises. Social penetration theory can be associated with operations of social enterprises (Napoli, 2006). This is simply because it depends on contributions from viewers. As per the framework, John Taylor Hospice structures its social media as a platform where relationships can be developed with target audience. This form of relationship is not only essential for collecting funds but even enables extending support or help to required personnel. Conclusion As per the study, social media has emerged as an innovative communication platform. Over the years, communication has been regarded as a one-way process in marketing field. However this trend has changed in recent years. Digital marketing strategies now being implemented, initiates a two-way communication procedure. Social media is one such digital marketing strategy that is used by all firms in modern era. This platform enables a firm to develop strong relationship with customers. In long run it has been observed that relationship building plays a critical role. Firms should not only be focused on acquiring customers but even strategies have to be developed so as to retain these customers. Retention objective is accomplished to a great extent through designing social media marketing campaign. These campaigns usually differ across social enterprises and commercial firms. Later implements this strategy in order to gain desirable profit margins. On the contrary, former is dependent on this marketing tool to facilitate customer engagement and generate funds for projects. It can be stated that both these firms utilize social media to interact with target audience and develop a strong network. References Bruce, I., 2013. Charity marketing. 4thEd. London: ICSA Publishing. Contractor, N. 2009. The emergence of multidimensional networks. Journal of Computer Mediated Communication, 14 (1), pp. 743-747. Dellarocas, C., 2003. The digitization of word of mouth: Promise and challenges of online feedback mechanisms. 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