The Increased Popularity of Social Media - Essay Example

MANAGEMENT PROJECT: LITERATURE REVIEW SOCIAL MEDIA Social networks comprise of networking sites including Facebook, Twitter, Linked-In and YouTube among others. Social networks identify websites developed in recent times to influence communication connectivity among individuals around the globe. Increased popularity of social media has influenced consequent adoption among businesses. Social media adoption within businesses seeks to promote the business agenda in an effort to develop a larger clientele base comprising of the existent and potential clients. Increased usage of social media has influenced the adoption of social media processes in the business context through the integration of the processes in the marketing context. Social network have influenced the development of a platform for marketing company products to a larger audience. In addition, social networks have influenced the conduction of market surveys on different aspects that could be of interest to the business processes. Social media has revolutionized the manner in which companies and businesses interact with each other, the market, and the potential customers. Increased adoption of social media has developed the communication tool into a viable marketing tool for organizations. Figure 1: Social Media Sites, Source: Meyers (2012) Social Media and the Brand Figure 2: Interrelationship between social media and branding, Source: Meyers (2012) In the last two decades, the internet has developed into a vital communication tool. Increased internet development has enhanced the utilization of social media platforms within the marketing strategies developed by companies. Increased utilization of social media ensures that the company is able to work effectively using the all the media channels available and relevant to the business processes. Meyers (2012) states that increased development and usage of social media has transformed the media platform into a vital component of daily life. Increased usage has influenced the development of the platform into a crucial component incorporated in a company marketing strategies. In addition, the probability of success experienced by companies or businesses integrating the marketing strategies are rendered high due to increased utilization of social media in the brand development process. The utilization of social media is vital in the brand awareness campaign as it enhances rapid growth of the consumer knowledge pertaining to the brand within the market. Increased consumer awareness and brand development influences the development of a larger customer base due to increased customer awareness regarding the company’s products. Therefore, social media identifies a favorable outlet that enhances the product’s brand awareness levels within the market through maintaining increased activities on the sites, which encourage the provision of customer feedback and consequent growth of the market share. USE OF SOCIAL MEDIA IN ORGANIZATIONS Engaging the social media community has developed into a vital company strategy geared towards enhancing the development of the industry’s customer base and individual company market share. Social media adoption may be enhanced through the integration of effective communication, collaboration, education and entertainment processes. These processes are necessary as they enhance the development of favorable relationships with the customers within the market. Effective integration and utilization of the steps influences the achievement of company goals pertaining to the acquisition and maintenance of new customers as well as expanding the company’s market size within the industry (Nail, 2005). The existence of a variety of social media platforms necessitates the development of adequate marketing strategies by organizations. The developed social media strategies are geared towards influencing the integration of viable operational processes geared towards reaching the company’s target populations. Therefore, proper analysis of the most viable and consequent adoption of the most preferred social media platform remains vital in the realization of the organization’s marketing strategies. In addition, the integration of social media platforms within the marketing activities will influence the development of a larger market share through increased brand development. Social media platforms remain instrumental in the brand development as they enhance the awareness levels within the market pertaining to the brand. The development of high awareness levels influences the market penetration processes, which influence the development of the organization’s customer base within the existent and new markets. Therefore, the integration of a viable social media platform develops its basis upon the identification of the organization’s marketing objectives pertaining to the market together with the identification of the market characteristics. The integration of the market characteristics and organizational objectives will influence the development of a viable marketing strategy pertaining to the integration of social media tools. a) Communication Social media tools seek to enhance the levels of communication experienced among friends and family. The communication aspect attached to social media develops the medium as a viable platform aimed at enhancing the communication processes experienced between individuals as well as between the company and customers in the market. Increased usage of social media platforms has influenced the development of an avenue for companies to communicate the product and service offerings to the customers within the market. The majority of companies within the tourism and hospitality industry have enhanced the process using tweets, blogs, e-mails, surveys etc. In addition, companies have enhanced social media adoption through the integration of online surveys pertaining to the company products within the market powered by various platforms such as Survey Monkey. Through the surveys, companies acquire detailed information that influences the development of viable processes geared towards influencing customer engagement. In addition, through the surveys, the company develops the information capacity pertaining to company products in relation to the existent market needs (Andzulis et al. 2012). b) Collaboration The emergence of the internet influenced the development of platform that encouraged increased collaboration of companies and well as professionals with common goal pertaining to the realization of the existent market needs. Through the integration of social media platforms, companies within the automotive industry have incorporated viable features that enhance the company’s competitive advantage within the market. Social media platforms are vital for organizational development within the market as they influence the development of a viable forum for staff and customers. Through social media platforms, the company may influence the development of an interactive platform between the staff and the management that influences the integration of favorable product and marketing strategies. Increased collaboration among the staff remains vital in the development of company products that seek to meet the existent market needs thus enhancing the company’s growth through increased sales and market share. In addition, the platform may be utilized to influence customer involvement in the product development process. Increased customer involvement will enhance the identification of the customer needs within the market, which will influence the customization of the products and services to meet the existent needs. The integration of social media platforms have enhanced the development of a sense of involvement for the potential customers as it develops a sense of association to company products, which enhances the achievement of the company goals (Avloniti & Nikolaos, 2010). c) Education Social media can be an education resource centre upon proper integration by the organization in enhancing the achievement of company goals. The majority of companies within the automotive sector have integrated social media as an educative tool. Through social media, the company informs the public on matters relating to products and packages offered together with the services incorporated by the company. The majority of companies have identified blogs as effective tools utilized in educating existent and potential customers. In addition, more companies are involved in posting links on their pages on the social networks that redirect internet users to the company website (Richardson, 2010). d) Entertainment The use of humor to spread a message has developed into a viable communication strategy in daily life scenarios and the business context. The majority of companies within the market credits increased sales figures and market growth to the use of humor within the marketing messages and strategies. Spreading humorous messages over the internet influences user interaction on the online platform through comments and sharing of the message among other users for example over Facebook. Increased interaction with the user influences user association with the company as well as a brand, which influences the development of company sales within the market (Hoffman & Fodor, 2010). Social media classification is identified as versatile through the integration of an array of content comprising of words, pictures, videos and audio. Thus, social media platforms differ on the above features depending on the specific context and utilization of the media platforms. According to Safko and Brake, (2009) social media tools and applications are categorized into the following areas; social networking, publishing, photo sharing, audio, video, microblogging, livecasting, virtual words, productivity applications, SEO and mobile applications. The automotive industry can incorporate any of the social media applications that enhance the spreading of their message to the existent and potential customers within the market. Personal Selling Personal selling identifies a promotional method whereby one party, which identifies the sales person, enhances the selling process through the integration of marketing skills that place emphasis on relationship development. Personal selling places emphasis upon the development of relationships that influence the provision of value to both the client and the company through the provided good or service. The value derived from the customer is identified from the benefits accrued upon purchase and consequent utilization of the product. Personal selling seeks to influence the provision of information and knowledge to consumer pertaining to the brand. The sale process integrated through personal selling necessitates the integration of personal contact. Several forms of communication may be integrated in the process to enhance personal contact including face-to-face meetings, telephone conversations, video conferencing and online chat through various platforms including Skype. Personal selling remains instrumental in the sale of luxury brands as it influences the provision of intricate information pertaining to the brand, which cannot be realized through brochures. Luxury brand purchase incorporates a unique clientele that places emphasis upon the quality and value of the brand as opposed to the price element attached to the brand. Therefore, the integration of personal selling concerning luxury brands seeks to influence the development of a personal relationship between the customer and the brand. The process endeavors to ensure that the customer identifies the unique elements incorporated into the brand, which influences the purchasing decision. In the sale of luxury cars such as Mercedes Benz, personal selling develops an intricate aspect of the overall process. Through the integration of personal selling, the customer develops an in-depth understanding of the brand’s features and aspects that render the brand unique. The personal selling process remains instrumental in the purchase of luxury brands as it influences the development of an informed understanding pertaining to the products. Therefore, through the purchase process, the customer attains value for their products. LUXURY Luxury brands identify products enjoyed by high-end markets due to the integration of high purchase prices. However, the customer base for luxury brands has experienced considerable changes in the last decade among different income groups. Increased demand for luxury brands has influenced the development of a large clientele base comprising of the higher middle class market. The development of a diverse market segment for luxury brands has been attributed to several factors including increased income within the population together with the desire to be accepted within the society. Luxury brands identify products demanded by the consumers out of affluence as opposed to necessity. An increase in income enhances consumers’ desire to purchase more products, which are not regarded essential or necessary as the purchase motive remains influenced by the desire to rise in prominence and status. The concept of luxury brands remains relative as the higher the income increases, the higher the consumer desire influencing purchase of the products among customers in the market. Increased demand for luxurious brands has identified a steady growth on a global scale despite the recent global financial crisis. Factors influencing the Purchase of Luxury Goods Luxury brand-purchase remains influenced by internal and external factors (Amatulli & Guido, 2009). The external reasons or motivators are defined by the need of the individual to purchase the products to “show” or “display” their capability and their status (O’Cass & Frost, 2009). The desire creates a link with the needs of consumers due to the developing desire to meet the society’s expectations and social standing. In addition, increased need by individuals to stand out from the rest by meeting a desire to affirm ones position or class to the rest of society influences the purchase of luxury goods. The internal motivators identify a link to the need to reward themselves, which develops its basis upon an individual’s states of mind and emotions. External motivators influencing the purchase of luxurious brands and develop their basis on the wealth status of the individual, which identifies an individual’s self-actualization needs. In contrast, internal motivators develop their basis on the need to self-reward, which seeks to adhere to an individual’s self-esteem needs. The purchase of luxury brands remains motivated by the desire for societal admiration through the display of increased income. Additionally, customers engage in luxury product purchase as a self-reward avenue upon achievement of individual milestones. According to Tsai (2005), the internal motivators that influence the development of an association between the individual and luxury brands develops its basis upon the theories of self-actualization and self-esteem. Shift in attitude In the producing markets, a shift in attitude arises because of their viewing of the economy as being capable of absorbing their products. The expansion and quick growth of the global economy provided an opportunity to firms engaging in the provision of luxury brands to rise to the opportunity to meet the increasing demand of the market. In addition, the integration of new firms within the global markets have influenced the provision of competing products and services to rival the existing market. Increased levels of competition have been witnessed in the industry due to increased demand for luxury cars within the global market. Consumer shift in attitude has been influenced by increased income within the market. Increased income coupled with a desire to display their levels of income has led to the growth of the global luxury brand economy. While the wealthy consumers develop the largest consumer segment of luxury brands, the upper middle class consumers are emerging into a growing class of consumers estimated to comprise of 12% of the market. The increased identified pertaining to the provision of luxury brands has developed into one of the fastest growing markets globally. Increase in Sophistication Increased globalization has influenced the level of interaction experienced among individuals on a global platform (Atsmon et al., 2011). Price transparency has developed into a vital customer issue in their need to identify with luxury brands. For example, the majority of customers in the course of their travels identify that the products are cheaper in certain areas than in others. In addition, consumers have access to the online markets and can through these forums purchase their products to their specifications and have them delivered to their doorsteps (Atsmon et al., 2011). In addition, increased consumer exposure to external markets and new lifestyles has influenced the desire to purchase luxury brands. Customer exposure influences the development of consumer knowledge pertaining to varied brands within the market. Consumer awareness influences the desire to purchase luxury brands that integrate high quality levels, which influences the provision of value for the purchase. New geographical markets With the rapid growth of the global luxury market, rapid urbanization is taking place within small towns leading to their transformation into large cities. Increased urbanization coupled with the increased wealth levels among consumers has influenced the identification of new exploration and expansion avenues for luxury brands within the market. The development of new geographically potential markets for the luxury market is aimed at acquiring the attention of the increasing consumers. According to Atsmon Yuval et al., (2011) smaller cities are becoming larger enough hence justifying the need for the presence of the luxury brand stores and merchandises. Increased economic growth has influenced the expansion of luxury brand names within the automotive sector into new global locations. The majority of the companies place emphasis upon the delivery of quality services to their clientele to attract a larger customer base as luxury consumers is identified particular in the provision of quality services. Companies and brand names have developed creative strategies geared towards attracting the growing market, which has influenced increased usage of the internet in the provision of luxury brands through online platforms. Increased interest in the rich cultural heritage of the brand market has influenced the growth of the luxury brand market as more consumers are seeking to purchase the product. Market Segmentation By perceiving the market as consisting of different types of luxury brands relating to the automotive industry available to customers, the market segmentation processes incorporated by the manufacturers are geared towards influencing the identification of the extent of product consumption within the market. From a marketing perspective, market segmentation influences the identification of the market’s potential for the goods and services provided. In addition, market segmentation influences the identification of the most viable and lucrative market segment for the company products. The identification of the preferred market type and segment remains instrumental in the identification of the existent market needs and consequent development of processes geared towards meeting the identified needs (Dubois et al., 2005). Dubois et al. (2005) maintains that income identifies the greatest determinant influencing market segmentation. Income has developed into the most viable demographic descriptor that influences the identification of a viable market. Generation Y: Consumer Brand Perceptions and Purchase Intention In the current generation, brands are deemed instrumental in the development of one’s identity as it influences the creation of a sense of achievement for the individual. In addition, brands develop a sense of recognition for specific consumer segments in the market as brands have developed into a new social protocol (Armour, 2011). The social protocol influences the identification of the individual’s self worth through the identification of visible brands such as luxury cars. Luxury brands provide consumers with an avenue of investing in themselves, which influence the development of strong and positive relationships between the brand and the consumer. Prior to the purchase of a brand, consumers evaluate varied elements pertaining to the brand including the brands capability to satisfy the existent emotional needs. Keller (2008) argues that luxury brand companies adhere to the customer emotional needs in the provision of brands. Emotional response remains instrumental in luxury brands as it influences the determination of the customer’s purchase intention and influences the customers purchase intention and cognition. Keller (2008) maintains that generation Y customers respond to luxury brands cognitively and emotionally, which influences the decision-making process. Emotional value encompasses a significant impact on customers purchase intention as the emotional value appeal to the affective reaction of the brand (Davis, 2010). The reaction develops a direct link to consumer personality. In addition, luxury brands integrate both symbolic and hedonic value that cements the luxury-brand purchase decision of the consumer. Conclusion Consumers purchasing decisions pertaining to luxury brands have identified a change in the trend towards the luxury market for a variety of reasons. These include the liberalization of the luxury market that was held traditionally as a male dominated market. The market for luxury brands has in recent times developed to one of the fastest growing economies in the world. The reasons for this are attributed to mainly the increased well-being of the consumer market. The definition of the word luxury has changed in meaning since the traditional role of the term has been phased out in the current world and conflicting theories have arisen as to the real definition of the term. Traditionally, the elite in society who are the royal families, the wealthy lords of lands, etc, in reference to products and goods mainly enjoyed the phrase. However, in the current modern society, the goods and services previously reserved for the rich and wealthy only are increasingly becoming more accessible to the affluent citizens all over the world. The reason for the increased participation of the consumers within the luxury market is to cater increasing need for recognition and association to items of symbolic values and significant pricing. Increased income identifies an increase in disposable income, which influences the consumer purchasing decisions pertaining to luxury products (Ikeda, 2006). In the situation of less income, a consumer will tend to cater to their basic needs, which mainly comprise of the three: food, clothing and shelter. However, in the event they have more disposable income, the consumers can purchase more products, which would be classified as luxuries to satisfy their wants. Research Questions 1) What is the extent of use of social media in marketing communications in the consumer market in China? 2) What is the impact of integrating communication in the most popular social media platforms between Mercedes Benz and its Chinese Customers? 3) What is the impact of the personal selling to luxury brand customers in the Chinese market in relation to Mercedes Benz? References Amatulli, C., and Gianluigi, G. 2011. Determinants Of Purchasing Intention For Fashion Luxury Goods In The Italian Market: A Laddering Approach. Journal Of Fashion Marketing And Management. 15(1), Pp.123-136. 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