Brand Salience and Buzz Marketing as a Means of Attaining Brand Salience - Research Proposal Example

A Research Proposal on The effect of using Social Networking Sites to Advertise Products on the Mental Image of Customers in Saudi Arabia ABSTRACT The aim of the research is to explore the effect of using social networking sites to advertise products on the mental image of customers in Saudi Arabia. The study equates development of mental image to the concept of brand salience. Thus, the study was out to examine if the concept of advertising on social networks contributes to development of brand salience on customers brain or not. The reason for this is based on the fact that any advertising platform that does not contribute towards product market share expansion should be abolished. The study will be conducted in two major cities of Saudi Arabia these being Jeddah and Riyadh. The reason for the two is based on the fact that they are to provide maximum information and that as a result of their complexity, factors that work in them can work elsewhere. The study product to be studied is of a company that has been advertising on social media preferably Facebook as a result of the large number of subscribers in it. The product must have been advertised for the last three years. On the other hand, the study population would be those who have been using social media for the last three years preferably Facebook and have been login at least once per day. The study will use a sample size of 250 drawn from a sample frame of 1000 using systematic probability sampling method for each selected city. To avoid bias and be valid, the selected in the sample frame will not be told of the product to be analysed until the respondents are picked. Thereafter the questionnaire will be administered through telephone interview. TABLE OF CONTENTS ABSTRACT i TABLE OF CONTENTS ii 1.1 Background of the Study iii 1.2 Problem Statement iv 1.3 Purpose of the Study iv 1.4 Scope of the Study v 1.5 Research Objectives v 1.6 Research Questions and Hypothesis vi 1.6.1 Research questions vi 1.6.2 Hypothesis vi 1.7 Justification and Assumption of the Study vi 1.8 Definition of Terms and Variable vii 2.0 LITERATURE REVIEW viii 2.1 Brand Salience viii 2.2 Buzz Marketing as a Means of Attaining Brand Salience ix 3.0 METHODOLOGY xi 3.1 Study Area xi 3.2 Research Design xi 3.3 Research Population xii 3.4 Sampling Design and Determination of Sample Size xiii 3.5 Sources of Data xiii 3.5.1 Secondary Sources of Data xiii 3.5.2 Primary sources of Data xiv 3.6 Data Collection Methods xiv 3.7 Method of Presentation and Analysis xiv References xvi Table 1: Parameters for computing Chi-Square xv 1.1 Background of the Study The advancement of communication technology has revolutionized how individuals and businesses operate, communicate and relate with each other. The internet through social networking sites and media tools has presented great opportunity for businesses and other organizations to improve their operations in terms of communication with customers. According to Singh, Becker and Williams (2009, p. 59), the social networks can transform a business entity in a short while, turning a struggling business into a thriving business. In personal and social life, social networking sites continue to play significant roles with regard to how individuals communicate and relate with each other. In business, social networking sites enable organizations to reach greater levels of economic prosperity, effectiveness and customer satisfaction. Nevertheless, the biggest challenge occurs when it comes to the combination of social networking sites and social media into business practices like marketing (Verret, 2011). According to World Internet Stats (2010), by June 2010 there were 9.8 million internet users in Saudi Arabia. This constitutes 38.1% of the population. Moreover, the report indicates that there were 2, 575, 740 Facebook users by August 2010. This specific example affirms the high number of social media users. The question then that emerges is that how can marketers use this phenomenon to market their products to online communities who numbers millions of people. With the realisation that social networking sites offers platform (contact point) for marketer to communicate and interact with customers through advertising it is the onus of companies/ marketing department to formulate advertisements that are able to create a lasting mental image to customers in Saudi Arabia. The study’s overall goal then would be to interrogate the effects of social networking sites as a platform of advertising products on the mental image of Saudi Arabia consumers. Creation of mental image is best explained through brand salience. Romaniuk and Sharp (2004, p.327) posits that brand salience relate to the capability of a product or organizational brand to be different or rather “stand out” from others in the same class. 1.2 Problem Statement Creating a permanent image about a product in the customers’ brain is an important factor of improving sales since if the customer wants to do the purchase the one that has stuck in her or his mind comes first and hence, the likelihood of it being purchased. With marketers embracing the platform of social networking sites as a medium of advertising, the simmering question is that does it have that effect of creating mental image about a product on customers or is just fad. The premise behind this discourse is based on the fact that effective advertising and communication should be able to create that lasting positive image of quality, value and superiority on the target customers’ brain. In talking about mental image, the concept of brand salience comes into forefront. In addressing the question of effects of social marketing sites on mental image of consumers, then the social media being used should be able to address the issues of brand salience to have that required long lasting positive mental effect. 1.3 Purpose of the Study The knowledge gap that this research seeks to bridge is on the effects of using social networking sites to advertise a product on the mental image of consumers in Saudi Arabia. In order to show that there are some effects that social networks as advertising avenues contributes towards creating mental image or not, the research will have to answer one critical question. In exploring the question in contention, the paper will adopt inductive reasoning. This question is tied to creation of mental image about a product through advertising and it includes brand salience. Thus, the purpose of the study would be to show if there is positive relationship between advertising on social media and creation of mental image about a product in users mind. The results found of this study then would be able to answer the critical question which is the ultimate aim of any marketer which is “are social media advertising platform a fad with no effect on mental image creation or is it a reality that creates that required mental image and thus, companies should invest in it in Saudi Arabia?” the findings from this explorative research can then be used to inform companies, marketers/ advertisers about the potential of social media on creating mental image about a product and hence, need to invest in it. 1.4 Scope of the Study The study seeks to address brand salience in relation to social networks as medium for advertising. Brand salience is coined as the measurement parameter as it turns out be the data needs of the research. This means to show the effects of the topic on mental image, results on social media has to answer its ability to create brand salience or not. The next scope is spatially based whereby the study will be conducted in Saudi Arabia with the targeted group being those who have subscribed to major social networks like Facebook, Myspace and Twitter among others. 1.5 Research Objectives i. To examine if there is positive relationship between advertising on social networks and creation of long lasting positive product image (brand salience) in Saudi Arabia. This objective will then subsequently develop a ground for the study to infer the hypothesis of seeing it as a fad or a reality. ii. To prove that if there is positive relationship between advertising on social networks as an effect then it contributes to expansion of product’s market share and hence should be adopted by marketers. This objective will address the inductive reasoning to be developed thereof. 1.6 Research Questions and Hypothesis 1.6.1 Research questions i. Is there positive relationship between advertising on social networks and creation of a long lasting positive brand image? ii. If there is positive relationship between advertising on social networks and creation of a long lasting positive brand image, does it contribute to expanded market share? 1.6.2 Hypothesis Null Hypothesis (Ho) Advertising on social networks has a positive relationship with mental image/ brand salience. Ho: Advertising on social networks ˃ mental image/ brand salience. Alternate Hypothesis (Ha) Advertising on social networks has no positive relationship with mental image/ brand salience. Ha: Advertising on social networks ˂ mental image/ brand salience. 1.7 Justification and Assumption of the Study The ultimate aim of any company is to expand its market share so as to gain market leadership. One of the approaches to achieving this is through the marketing mix (Ehmke, Fulton & Lusk, 2005 p. 2). Marketing mix implies utilising any resources, capabilities and platforms to improve their sales. The 4p (price, product, place and promotion) concept forms one of the approaches to marketing mix (Ehmke, Fulton & Lusk, 2005 p.3). The critical aspect that is important in the 4p is the promotion concept if taken from company perspective or communication if take from customers point of view. Promotion or communicating with customers is an important factor in achieving brand image and salience. One way of doing this is through advertisement. Social networks have offered a new media platform of engaging the public about a company’s product. However, the truth is that a company should not utilise any advertising platform that is not having the required positive effect such as brand salience. The assumption that this study adopt is based from the hypothesis that postulates that advertising on social networks has a positive relationship with mental image/ brand salience. 1.8 Definition of Terms and Variable The study adopts brand salience as a measure of creating mental image. Brand salience can be viewed as the ability of a product or organizational brand to be different or rather “stand out” from others in the similar class (Romaniuk and Sharp, 2004, p.327). Alternatively, Social Networking Sites are services that are web-based and that allow individuals to build either semi-public or public profile in a system that is surrounded in nature from where they are capable of connecting and sharing information. Therefore, a social networking site could be illustrated as a computer-mediated communication site or system (Boyd & Ellison, 2008, p.210). The two variables that the study seeks to measure if there is positive relationship between them are advertising in social media and mental image. In this case advertising in social media is the independent variable while mental image is the dependent variable. 2.0 LITERATURE REVIEW 2.1 Brand Salience In modern marketing theory, Brand salience considerably draws from social psychology. It also relates to the product capability or organizational brand to be different or rather “stand out” from the rest in the similar class. Therefore, saliency relates from the fact that not all of customers or somewhat buyers’ beliefs on a given brand make the same cognitive reputation. Consequently, customers may become more attentive of several of their beliefs than others on a given brand of goods or business, which may be simply and readily conceptualized in their minds. Studies on saliency have it that, it is this cognitive fame that allows buyers to notice a given product with ease (Romaniuk and Sharp, 2004, p.327). Furthermore, cognitive fame of a brand allows consumers to get back them from long term memory with no difficulty. Therefore, brand salience is apprehensive with the quality and capacity of mind structures’ network that customers hold as regards a specific brand of product or business association. In essence therefore, brand salience has a key function in manipulating customers’ variety of brands, as well as conduct of a consumer. Romaniuk and Sharp (2004, p.327) claim that brand salience is greater than brand awareness and attitudes; as well as the tendency for customers to be acquainted with or keep in mind a brand when buying. As such, brand salience is conceptualized as the distinction or rather how simply customers can get a specific brand of product or organization in their memory. According to research, from the human memory’s point of view, prominence is attainable in 2 diverse manners. Initially, current prominence whereby customers of a known brand of product note, memorize or identify the new brand they bought and that is what is retrieved from their working memory. Second, consumers or buyers notice, remember or recognize a given brand of product from the memory that is long term. Therefore, Brand salience is related with the fame of a given brand when customers are in buying/shopping circumstances or utilization of media situations such as reading or viewing an advert of brand marketing. 2.2 Buzz Marketing as a Means of Attaining Brand Salience Buzz marketing program is suitable for each kind of product thus a good idea for marketing. Carl (2006, p.601) restates that buzz is a marketing up-and-coming fact that is considered as a catching talk concerning a brand particularly on the social networking sites like MySpace, Twitter and Facebook amongst others. As a type of person-to-person communication, buzz marketing is a strong and interactive type of word-of-mouth referral which takes place both online and offline (Lantos, 2011, p.301). As such, buzz marketing succeeds as a good idea for all type of product. Dye (2000, p.140) argues that every product becomes eligible as a superior contender to be promoted through buzz programs of marketing because of two vital rationales. Primarily, all goods that can be promoted by buzz program are exceptional in a specific facet. Thus, each type of product succeeds for buzz marketing program as each type of product is exceptional with regard to appearance, easiness of use or rather user friendliness, functionality, price or worth. Second, each product with buzz probability is typically extremely noticeable to customers. However, this visibility is usually a no-brainer for most types of products. But insightful companies and marketing agencies such as Hotcow have discovered that each type of product can be made visible through the chat groups in the internet as well as social networking sites. This will allow consumers share their familiarity with a specific kind of product, as well as swap over information on a certain form of product that would else have stayed concealed. Marketing that is thriving occurs from the marketers’ capability to make and leave a lifelong notion on consumers. Buzz marketing program is an excellent thought for each form of product since buzz significantly influences nearly all businesses like finance, fashion, pharmaceuticals, entertainment, agriculture, electronics, and manufacturing (Dye, 2000, p.140). Consequently, buzz marketing program would be a fine thought for each kind of product as technological improvement and innovations like the internet allow the customers of each product to extend the buzz on a certain product rapidly. In the US for example, slightly more than two-thirds of the economy has been influenced by buzz. Dye (2000, p.140) notes that 13% and 54% of the US economy was mostly driven by buzz and partly driven by buzz respectively. The 13% was constituted by products such as sporting goods, motion pictures, toys, fashion products, amusement and recreation services, as well as broadcasting. 54% partially driven by buzz constituted by finance and investment products; electronics; hotels and lodgings, printing and publishing products; food and drink; pharmaceuticals and healthcare products; tobacco; transportation; automotive; as well as agricultural products were partially driven by buzz. As such, buzz marketing program is a good idea for every type of product. For example, the buzz concerning Versace trade name began from its lavishness mores. The flashy celebrities connected with the brand including Gianni Versace and the brand’s clientele of celebrities, stars, princesses and women in high-society who were extremely noticeable. This assisted increase of the fame regarding the Versace brand (Chadha and Husband, 2006). As a pharmaceutical product, Viagra brand is regarded as offensive. Its basis as an answer to erectile dysfunction in male ignited considerable buzz and its fame increased even in the midst of people with no erectile dysfunction trouble who did not even require it. Currently, Viagra is amongst the largely talked-about pharmaceutical prescription product (Dye, 2000). Both brands of Versace and Viagra apart from revealing the buzz feature are vastly pioneering, noticeable and exceptional products thus ideal candidate for buzz marketing. 3.0 METHODOLOGY This chapter deals with the design and methodology utilized for the research. Research methodology basically illustrates the research design, population and sample size determination, sources of data, questionnaire design and administration. 3.1 Study Area The study will be conducted in Saudi Arabia. The rationale behind Saudi Arabia is out of the fact that it has active participants on social media especially the young population. Various literatures present different figures about social media use in the country. For instance, Social Baker (2012) observes that there were 5, 855, 780 facebook users with penetration percentage of 22.76 making it ranked 33 globally. Arab Social Media Report (2012) ranks the country third in Middle East in terms of Twitter usage. The other interesting perspective about the country is that the internet contents are regulated (Teitelbaum, 2011). This makes it an interesting area for study. 3.2 Research Design The study has a non experimental design. The main aim of this approach is to measure the relationship between advertising in social media platform and the ability of consumers who utilise the same platform to build a positive long lasting image about the product. To answer the research question, the research adopts two tier systems. The first is the descriptive statistics based on nominal and ordinal level of measurements. The second is based on inferential statistics with the main focus being Chi-Square. The main of utilising Chi-Square is to measure if there is any significance difference or not when a firm advertises in social media holding other factors constant. This will be able to show if any relationship exist between the dependent and independent variables. Other things held constant, the firms which are to participate in the study must been advertising in the social media for the last three years. The trading data of the previous years when the company was not advertising in social media provides entry point for comparison. Moreover, for the company to qualify for the study, it must have not done major changes towards product promotion in the three year period apart from advertising it in the social media. The social media to be taken is Facebook. However, if the company chosen is not advertising in Facebook, but meet the pre stated conditions, that social media will be used. 3.3 Research Population According to Okeke (1995, p. 10) population is “the collection of elements, units or individuals for which information is sought”. The population to be studied are those people who leave in Saudi Arabia and have signed in social media preferably Facebook for the last three years and login into their account at least once in a day. Apart from this, spatially, the research will be conducted in two major cities of Saudi Arabia. They include Jeddah and Riyadh. The reason for this is based extreme situation which is tied to the belief that the situations in these cities are complex and if they can be addressed then it would apply to other regions. The second supporting criterion is the need for maximum information and these two are probable candidates for the same. Once identified, the research will administer the questionnaire through online format or through telephone interviews. 3.4 Sampling Design and Determination of Sample Size In order to select sample strata for this research, the research will adopt systematic random/ probability sampling. To develop a sample size of 500 people with Jeddah having 250 and Riyadh the same from the sample frame of 1000 people for every city, every fourth item in the list would be picked. To derive the sample list, the research will open a Facebook/ any other social media account which the company to be studied is using as an advertising platform, then post the requirements for participating in the study without disclosing the company/ product to studied so as to avoid bias (the company/product to be studied will be disclosed to the respondents after the sample size has been formulated). The first 1000 respondents who are above the age of 21 and have met the criteria as outlined in the target population will be picked for the two selected cities and thereof build a rapport with them by having friend request. To ensure validity, since the respondent shall have accepted friendship request, the researcher will be able to check the personal details. 3.5 Sources of Data 3.5.1 Secondary Sources of Data Saunders, Philip and Adrian, (2000) note that secondary data is data, which already has been collected by someone else for another purpose. The research obtained data from text books, Journal, magazine, newspapers and internet from related literature. 3.5.2 Primary sources of Data Primary data is gathered directly by researcher for a particular reason. Two major methods for collecting primary data exist and include inquiries and interviews. Either one or a combination of both can be used (Saunders, Philip and Adrian, 2000). The primary source of the information will be from the respondents listed in the sample list. Moreover, the company will try and interrogate marketing managers of the product under study. 3.6 Data Collection Methods The research instruments that will be used by the researcher in collecting useful information on this are questionnaire done through telephone. In this study, the questionnaire designed by the researcher will be structural and open ended. The questionnaire contains only relevant information for the study. 3.7 Method of Presentation and Analysis In analysing the data collected using the questionnaire the researcher will use the descriptive simple percentage tables and charts. A non-parametric measure based on chi-square statistics will be employed to test the hypothesis and determine if there is any relationship. The chi-square is based on the formula: χ2 = Σ(Oij-Σij)2 Σij df (degree of freedom)= (r-1)(c-1) where Oij and Eij are the observed and expected frequencies in the ith row jth column in the row by column contingency table. Moreover, the Chi-Square will be based on the question Table 1: Parameters for computing Chi-Square Level of improvement Before Advertising After Advertising No. of respondents % No. of respondents % More improved Fairly improved No improvement Worse References Arab Social Media 2012.Latest News: Twitter in Saudi Arabia. Retrieved on 2 November, 2012 from: http://www.arabsocialmediareport.com/News/index.aspx?PriMenuID=15&mnu=Pri. Boyd, D.M & Ellison, N.B. 2008. Social Network Sites: Definition, History, and Scholarship, Journal of Computer-Mediated Communication, Vol. 13(1): 210-230. Carl, W. 2006. “What’s All the Buzz about? Everyday Communication and the Relational Basis of Word-of-Mouth and Buzz marketing Practices.” Management Communication Quarterly 19(4): 601-634. Chadha, R and Husband, P. P. 2006. The Cult of the Luxury Brand: Inside Asia's Love Affair with Luxury. London: Nicholas Brealey International. Dye, R. 2000. “The Buzz on Buzz.” Harvard Business Review 78(6): 139-146. Ehmke, C. Fulton, J. & Lusk, J. 2005. Marketing’s Four P’s: First Steps for New Entrepreneurs. Purdue Extension EC-73, May 2005. Retrieved 2 November, 2012 from: http://www.agecon.purdue.edu/newventures/Pubs/AICC- NewVenReportJune08.pdf. Internet World Stats 2010. Saudi Arabia: Internet Usage and Marketing Report. Retrieved on 2 November, 2012 from: http://www.internetworldstats.com/me/sa.htm. Lantos, G. P. 2010. Consumer Behaviour in Action: Real-Life Applications for Marketing Managers. New York: M.E. Sharpe Incorporation. Okeke, A. O 1995, Foundation Statistics for Business Decision, Enugu,High mega system Limited. Romaniuk, J. & Sharp, B. 2004. “Conceptualizing and measuring Brand Salience.” Marketing Theory Articles 4(4): 327-342. Saunders, M., Philip, L. and Adrian, T. 2000. Research methods for business students. Essex: Pearson Educational Limited. Singh, S., Becker, M. and Williams, R. 2009. Social Media Marketing for Dummies. Amazon: For Dummies. Social Bakers 2012. Saudi Arabia: Facebook Statistics. Retrieved on 2 November, 2012 from: www.socialbakers.com/facebook-statistics/saaudi-arabia. Teitelbaum, J. 2011. Saudi Arabia contends with the Social Media Challenge. Retrieved on 2 November, 2012 from: http://jcpa.org/article/saudi-arabia-contends-with-the-social-media-challenge/. 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