You are on page 1of 55

DECLARATION

I, Pradeep kumar soni, student of Institute of Management Studies, DAVV, Indore, MBA IVth semester have prepared the research on the topic Impact Of Social Media Sites

on Advertising.

The research as per my knowledge is an original and genuine work. The research is not published in any research journal previously.

PRADEEP KUMAR SONI MBA (MM)

IMS-DAVV (INDORE)

Page 1

ACKNOWLEDGEMENTS

I wish to express my thanks to IMS DAVV Indore, which gave me the chance to do this project report on Impact Of Social Media Sites on Advertising.

This project came into the existence under the enlightening guidance of Dr. Niranjan Shrivastava sir who helped me whenever I needed him in case of difficulties that I encountered during the project.

Last but not least, I thank all those who have helped me directly or indirectly during the course of this project.

IMS-DAVV (INDORE)

Page 2

CERTIFICATE

This is to certify that Mr. Pradeep Kumar Soni student of Institute of Management Studies, IDAVV, Indore of MBA (IV sem) program has prepared major research project report on topic Impact Of Social Media Sites on Advertising under my guidance.

Dr. Niranjan Shrivastava Faculty guide

IMS-DAVV (INDORE)

Page 3

INDEX
Particulars 1. Introduction 2. Integrated marketing communications 3. Review of literature 4. Conceptual framework 5. Rationale of study 6. Objectives of study 7. Research Methodology 8. Data analysis and interpretation 9. Findings & Suggestions 10. Conclusion 11. Bibliography Page No. 5 7 16 19 24 25 26 33 52 54 55

IMS-DAVV (INDORE)

Page 4

INTRODUCTION

A social network is a social structure made up of individuals or organizations called nodes, which are connected by one or more specific types of mutuality, such as friendship, common interest, financial exchange, dislike relationships of beliefs, knowledge or prestige. It was initially intended to make friendship and stay connected with colleagues, but now days every businessman would have known how important social networking is for their business. Mainly online business has made social networking a priority as well. Premier Websites have made it possible for businesses to develop their contact lists, handle their relationships and created the ideas of viral marketing. It is because Shopping and social networking Web sites gather a lot of information about online users, and has become tremendously useful for companies to track and model consumer behavior. Businesses are looking to companies like Twitter, MySpace and Facebook to help companies to sell more products and services. Lets see how it makes an impact on your business in reality. . The emergence of Internet-based social media has made it possible for

One person to communicate with hundreds or even thousands of other people about Products and the companies that provide them. Thus, the impact of consumer-to consumer Communications has been greatly magnified in the marketplace. This article Argues that social media is a hybrid element of the promotion mix because in a Traditional sense it enables companies to talk to their
IMS-DAVV (INDORE) Page 5

customers, while in a nontraditional Sense it enables customers to talk directly to one another. The content, Timing and frequency of the social media-based conversations occurring between Consumers are outside managers direct control. This stands in contrast to the Traditional integrated marketing communications paradigm whereby a high degree of control is present. Therefore, managers must learn to shape consumer discussions In a manner that is consistent with the organizations mission and performance goals. Methods by which this can be accomplished are delineated herein. They include Providing consumers with networking platforms, and using blogs, social media tools And promotional tools to engage customers. Advertise is a most have promotion for a online business which mostly attract buyers. Though, social media websites are getting messy with a craze of advertisements, businesses can target display ads effectively by paying close attention to communities, their interests and preferences, and emerging niche audiences. This is what social networking can boost your business by promotion your products.

IMS-DAVV (INDORE)

Page 6

Integrated marketing communications

1.

Social media, the promotion mix, and integrated marketing communications:-

Integrated marketing communications (IMC) is the guiding principle organizations follow to communicate with their target markets. Integrated marketing communications attempts to coordinate and control the various elements of the promotional mixpromotion, personal selling, public relations, publicity, direct marketing, and sales promotionto produce a unified customer-focused message and, therefore, achieve various

organizational objectives (Boone & Kurtz, 2007, p. 488). However, the tools and strategies for communicating with customers have changed significantly with the emergence of the phenomenon known as social media, also referred to as consumer-generated media. This form of media describes a variety of new sources of online information that are created, initiated, circulated and used by consumers intent on educating each other about products, brands, Business Horizons (2009) 52, 357365 www.elsevier.com/locate/bushor Social media encompasses a wide range of online, word-of-mouth forums including blogs, company sponsored Discussion boards and chat rooms, consumer-to-consumer e-mail, consumer product or service ratings websites and forums, Internet discussion boards and forums, moblogs (sites containing digital audio, images, movies, or photographs), and social networking websites, to name a few. As illustrated by Table 1, social media outlets are numerous and varied. The 21st
IMS-DAVV (INDORE) Page 7

century is witnessing an explosion of Internet-based messages transmitted through these media. They have become a major factor in influencing various aspects of consumer behavior including awareness, information acquisition, opinions, attitudes, purchase behavior, and post-purchase communication and evaluation. Unfortunately, the popular business press and academic literature offers marketing managers very little guidance for incorporating social media into their IMC strategies. Therefore, many managers lack a full appreciation for social medias role in the companys promotional efforts. Even though social media is magnifying the impact consumer-to-consumer conversations have in the marketplace, methods for shaping those conversations have not yet been articulated. The purpose of this article is threefold. First, we propose that social media be considered a hybrid component of the promotional mix and therefore be incorporated as an integral part of the organizations IMC strategy. The second purpose of the article is to compare and contrast the traditional communications paradigm that relied on the established promotional mix, elements which were developed and refined over the past 100 years, with the new communications paradigm which incorporates social media. Finally, we discuss methods by which marketing managers can shape the consumer toconsumer conversations which are now driving the marketplace to a greater extent than ever before. 2. Social medias hybrid role in the promotion mix:It has long been acknowledged in marketing management circles that successful IMC strategies clearly reflect the values articulated in an organizations mission statement and contribute to the fulfillment of the organizations performance goals. To accomplish these objectives, the elements of the promotion mix are carefully coordinated so the information transmitted to the marketplace through these
IMS-DAVV (INDORE) Page 8

elements consistently communicates a unified message that broadly reflects the organizations fundamental values. For example, the promotional efforts conducted by Procter and Gamble (P&G) or General Electric (GE) illustrate the underlying values of these organizations as articulated in their respective mission statements and statements of strategic principles When these two organizations entered the social media arena, they carefully crafted their communications with the marketplace to consistently reflect their organizational values. By doing so, both organizations acknowledged the importance of incorporating social media into their IMC strategies and promotional efforts. GE and P&Gs use of social media demonstrates that this media has two interrelated promotional roles in the marketplace. First, social media enables companies to talk to their customers, and second, it enables customers to talk to one another. Social media also enables customers to talk to companies; however, this role is market research-related rather than promotion-related and, therefore, is outside the scope of this article. The first role of social media is consistent with the use of traditional IMC tools. That is, companies can use social media to talk to their customers through such platforms as blogs, as well as Facebook and MySpace groups. These media may either be company- sponsored or sponsored by other individuals or organizations. The second promotion-related role of social media is unique: customers can use it to communicate with one another. In his book The New Influencers, Gillin (2007) points out that Conventional marketing wisdom has long held that a dissatisfied customer tells ten people. But that is out of date. In the new age of social media, he or she has the tools to tell 10 million (p. 4) consumers virtually overnight. Gillin illustrates this potential power by recounting the story of Vincent Ferrari, a blogger who posted an audio recording of his encounter with an AOL customer service representative. The representatives persistent attempts to convince Ferrari not to cancel his account offended listeners sensibilities to the extent that approximately
IMS-DAVV (INDORE) Page 9

300,000 of them requested to download the audio file. The story went viral as it was picked up by thousands of other bloggers and websites. It eventually drew the attention of such mainstream media as The New York Post, The New York Times, and NBC. It can be presumed that AOLs management was embarrassed, to say the least. In a sense, this second role of social media enabling customers to talk to one anotheris an extension of traditional word-of-mouth communication. But as the Vincent Ferrari story illustrates, the uniqueness lies in the magnitude of the communication. Instead of telling a few friends, consumers now have the ability to tell hundreds or thousands of other people with a few keystrokes! The question for managers becomes: How can this power be harnessed for the benefit of the organization? While companies cannot directly control consumer-to consumer messages, they do have the ability to influence the conversations that consumers have with one another. Methods for accomplishing this are presented in section 4. We argue that social media is a hybrid element of the promotion mix because it combines characteristics of traditional IMC tools (companies talking to customers) with a highly magnified form of word-of mouth (customers talking to one another) whereby marketing managers cannot control the content and frequency of such information. Social media is also a hybrid in that it springs from mixed technology and media origins that enable instantaneous, real-time communication, and utilizes multi-media formats (audio and visual presentations) and numerous delivery platforms (Facebook, YouTube, and blogs, to name a few), with global reach capabilities. The emergence of a highly educated, historically affluent, and an increasingly skeptical and demanding consumer population facilitates its acceptance in the marketplace. Consumers ability to communicate with one another limit the amount of control companies have over the content and dissemination of information. Christopher Vollmer and Geoffrey Precourt (2008) underscore this in their book, Always On. As they note, in the era of social media
IMS-DAVV (INDORE) Page 10

consumers are in control; they have greater access to information and greater command over media consumption than ever before (p. 5). This shift in the information control needle is dramatically influencing the way consumers receive and react to market information (Ramsey, 2006; Singh, Veron-Jackson, & Cullinane, 2008). Consequently, marketing managers are seeking ways to incorporate social media into their IMC strategies (Li & Bernoff, 2008). The traditional communications paradigm, which relied on the classic promotional mix to craft IMC strategies, must give way to a new paradigm that includes all forms of social media as potential tools in designing and implementing IMC strategies. Contemporary marketers cannot ignore the phenomenon of social media because it has rapidly become the de facto modus operandi for consumers who are disseminating information on products and services.

Examples of social media Social networking sites (MySpace, Facebook, Faceparty) Creativity works sharing sites: Video sharing sites (YouTube) Photo sharing sites (Flickr) Music sharing sites (Jamendo.com) Content sharing combined with assistance (Piczo.com) General intellectual property sharing sites (Creative Commons) User-sponsored blogs (The Unofficial AppleWeblog, Cnet.com) Company-sponsored websites/blogs (Apple.com, P&Gs Vocalpoint) Company-sponsored cause/help sites (Doves Campaign for Real Beauty, click2quit.com) Invitation-only social networks (ASmallWorld.net)
IMS-DAVV (INDORE) Page 11

Business networking sites (LinkedIn) Collaborative websites (Wikipedia) Virtual worlds (Second Life) Commerce communities (eBay, Amazon.com, Craigs List, iStockphoto, Threadless.com) Podcasts (For Immediate Release: The Hobson and Holtz Report) News delivery sites (Current TV) Educational materials sharing (MIT OpenCourseWare, MERLOT) Open Source Software communities (Mozillas spreadfirefox.com,

Linux.org) Social bookmarking sites allowing users to recommend online news stories, music, videos, etc. (Digg, del.icio.us, Newsvine, Mixx it, Reddit)

3. Paradigms: Traditional vs. new communications In the traditional communications paradigm, the elements of the promotional mix are coordinated to develop an IMC strategy, and the content, frequency, timing, and medium of communications are dictated by the organization in collaboration with its paid agents (promotion agencies, marketing research firms, and public relations consultants). The flow of information outside the boundaries of the paradigm has generally been confined to face-to face, word-of-mouth communications among individual consumers, which has had minimal impact on the dynamics of the marketplace due to its limited dissemination (Mayzlin, 2006). This paradigm has served as a framework for developing IMC strategies during the post-World War II era (Muniz & Schau, 2007). Its long shelf life appears to be largely due to the high degree of control over the communications process that it affords businesses. Social media: The new hybrid element of the promotion mix
IMS-DAVV (INDORE) Page 12

359 However, in the era of social media, marketing managers control over the content, timing, and frequency of information is being severely eroded.In the new paradigm, information about products and services also originates in the marketplace. This information is based on the experiences of individual consumers and is channeled through the traditional promotion mix. However, various social media platforms, many of which are completely independent of the producing/sponsoring organization or its agents, magnify consumers ability to communicate with one another. This groundswell (Li & Bernhoff, 2008) has profoundly affected all aspects of consumer behavior, and has bestowed consumers with power they have not previously experienced in the marketplace.

IMS-DAVV (INDORE)

Page 13

In the new communications paradigm (see Figure 1), marketing managers should recognize the power and critical nature of the discussions being carried on by consumers using social media. The impact of the interactions among consumers in the social media space on the development and execution of IMC strategies is illustrated by the following points:

_ The Internet has become a mass media vehicle for consumer-sponsored communications. It now represents the number one source of media for consumers at work and the number two source of media at home. The Internet reaches more than 60% of all United States consumers for an average weekly usage rate of more than 100 minutes (Rashtchy, Kessler, Bieber, Shindler, & Tzeng, 2007).

_ Consumers are turning away from the traditional sources of promotion: radio, television, magazines, and newspapers. Consumers also consistently demand more control over their media consumption. They require on-demand and immediate access to information at their own convenience (Rashtchy et al., 2007; Vollmer & Precourt, 2008).

_ Consumers are turning more frequently to various types of social media to conduct their information searches and to make their purchasing decisions (Lempert, 2006; Vollmer & Precourt, 2008).

_ Social media is perceived by consumers as a more trustworthy source o information regarding products and services than corporate-sponsored

communications transmitted via the traditional elements of the promotion mix (Foux, 2006).
IMS-DAVV (INDORE) Page 14

The above trends have severely diminished the usefulness and practicality of the traditional communications paradigm as a framework for developing IMC strategies. The new communications paradigm, on the other hand, requires several important changes in managements attitudes and assumptions about IMC strategy formulation. First, marketing managers must accept the reality that a vast amount of information about their products and services is being communicated by individual consumers to other consumers via social media forums. Second, consumers are responding to thisinformation in ways that directly influence all aspects of consumer behavior, from information 360 W.G. Mangold, D.J. Faulds Figure 1. The new communications paradigm acquisition to post-purchase expressions of satisfaction and dissatisfaction. Third, consumers are turning away from the traditional elements of the promotion mix; in particular, they are reducing their reliance on promotion as a source of information to guide their purchase decision-making. Finally, managers who are accustomed to exerting a high level of control over company-to-consumer messages must learn to talk with their customers, as opposed to talking at them, therefore influencing the discussions taking place in the social media space.

IMS-DAVV (INDORE)

Page 15

REVIEW OF LITERATURE

2011 Social media marketing industry report, How Marketers Are Using Social Media to Grow Their Businesses A P R I L 2 0 1 1 B Y M I C H A E LA.STELZNER Social media: The new hybrid element of the promotion mix W. Glynn Mangold a,*, David J. Faulds, a College of Business & Public Affairs, Murray State University, Murray, KY 42071, U.S.A.

A study on The Effectiveness of Promotion Matching Purchase Motivation by Joost Loef Erasmus Research Institute of Management (ERIM), February 2001. He recommends that the ad appeal should match the purchase motivation or attitude base. They suggest that for utilitarian brands informational promotion is more effective than transformational promotion. Likewise, for hedonic brands transformational promotion is more effective than informational promotion.

A study on Promotion Effects on Awareness, Consideration and Brand Choice published by Philip Hans Franses Erasmus University Rotterdam (EUR) - Department of Econometrics in March 2004, They used weekly data on promotion expenditures in various media and response data on awareness, consideration and choice, and test the hierarchy of effects hypothesis. Their empirical results, based on a simultaneous equations
IMS-DAVV (INDORE) Page 16

model with pooled parameters across brands, suggest that they can reject this hypothesis convincingly. For the category under scrutiny, they find that most promotion effects exist for awareness, although at the same time there are effects for choice. Newspaper promotion turns out to be most influential. A study on The Economics of Media Markets published by University of the Federal Armed Forces Hamburg - Department of Economics June 2003.Media and especially mass media like newspapers or magazines are characterised by a number of peculiarities which are interesting from both a theoretical and empirical point of view. The interrelationship of reader and promotion markets, high sunk costs and large economies of scale are typical features. This paper reviews the existent literature on media markets and their peculiarities and lines out areas for further research.

A study on The Effect of Media Promotion on Brand Consideration and Choice published by Tohoku University - Graduate School of Economics & Management and Ohio State University (OSU) - Department of Marketing and Logistics in October 1, 2009. The nature of the effect of media promotion on brand choice is investigated in two product categories in analyses that combine household scanner panel data with media exposure information. They find strong support for promotion effects on choice through an indirect route of consideration set formation, and not directly affecting brand utility. Implications for media buying and promotion effects are explored.

IMS-DAVV (INDORE)

Page 17

A study on Impact of Celebrity Endorsement on Consumer Buying Behaviour and Brand Building published by Dinesh Kumar Gupta, Guru Jambheshwar University of Science and Technology - Department of Business Management in January 1, 2007.The field of consumer behavior is the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of product, services, experiences, or ideas to satisfy needs and impacts that these processes have on the consumer and society. And understanding the consumer behavior is the prime and toughest task in front of every marketer. The result of this study was that definitly celebrity endorsee influence consumer buying behavior and brand building but while using celebrity endorsee, marketer has to take care of all the aspect that whether the brought personality and image of celebrity matches or not. A study on Assessing promotion media spending inefficiencies in generating sales published by State University of New York, Fredonia, NY, USA and Marketing Department, Georgia State University, Atlanta, USA in February 2003.While it is widely believed that promotion media spending may not be optimal or efficient, it is not easy to measure the inefficiency, or the potential loss of sales due to inefficient ad spending. Promotion media spending efficiency needs to be measured and benchmarked. Results show that top 100 marketers' promotion spending in print, broadcast, and outdoor media are not efficient and could bring in 20% more sales. A case study on Choosing among media alternatives for promotion published South East Asia Research Centre for Communications and Humanities (SEARCH 2009)

IMS-DAVV (INDORE)

Page 18

CONCEPTUAL FRAMEWORK

Advertising Media Definition of Advertising The term Advertising is originated from the latin word Adverto which means to turn around. Simply stated Advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring together the man with something to sell and the man who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definitions are: According to American Advertising Association, Any paid form of non personal presentation of ideas, goods and services by an identified sponsor.

According to Philip Kotler, Advertising is any paid form of non personal presentation and Advertising of ideas, goods or services through mass media by an identified sponsor.

According to William J. Stanton, Advertising consists of all the activities involved in presenting to an audience, a non personal, sponsor identified, paid for message about a product or an organization.
IMS-DAVV (INDORE) Page 19

Basic Features of Advertising On the basis of various definitions it has certain basic features such as : 1. 2. 3. 4. 5. 6. It is a mass non-personal communication. It is a matter of record. It persuades buyers to purchase the goods advertised. It is a mass paid communication. The communication media is diverse such as print (newspapers and magazines) It is also called printed salesmanship because information is spread by means of the

written and printed work and pictures so that people may be induced to act upon it.

Advertising Objectives The long term objectives of Advertising are broad and general, and concern the contribution Advertising should make to the achievement of overall company objectives. The basic Advertising objectives are as follows. 1. 2. To do the entire selling job (as in mail order marketing). To introduce a new product (by building brand awareness among potential buyers). 3. 4. To force middlemen to handle the product (pull strategy). To build brand preference (by making it more difficult for middleman to sell substitutes). 5. To remind users to buy the product (retentive strategy).
IMS-DAVV (INDORE) Page 20

6.

To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product).

7. 8. 9.

To provide rationalization (i.e. socially acceptable excuses). To combat or neutralize competitors Advertising. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of Advertising).

10.

To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

Meaning of Advertising Media The most brilliant and original Advertising ideas will be wasted if they are not presented through the right media in the right place at the right time to the right people.

An Advertising media is a means or vehicle of delivering a definite message. It is a means through which an Advertising message or information is passed onto the targeted customers, readers, viewers, listeners or passersby. Selecting Advertising Media Selection of a right type of adverting media is a difficult task. Any media that is selected must be capable of accomplishing at least the three main objectives: It must reach the largest number of people possible. It must attract their attention. It must be less expensive.
IMS-DAVV (INDORE) Page 21

In practice there is hardly any single media that satisfies the above three objectives. There are a number of Advertising media choices available to the company in India. So the main task is to identify from among them the one which is relevant for the company Media Press Advertising or Print Newspapers City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English, vernacular or regional languages. Magazines General or special, illustrated or otherwise, English, Hindi, Regional language. Trade & Technical Journals, Industrial Circulated all over the country and among the Year Books, Commercial Directories, industrialist and business magnates. Telephone Directories, References Form

Books & Annuals. Direct Mail Circulars, catalogues, leaflets, brochures,

booklets, folders, colanders, blotters, diaries & other printed material. Outdoor or Traffic Poster and bills on walls, railways stations platforms outside public buildings, trains, buses. Broadcast or Radio and T.V. Publicity Spot, Sectional or national trade cost Movie Slides and films, non theatrical and documentary films, metal plates and signs attached to trees.

IMS-DAVV (INDORE)

Page 22

House to House

Sampling, couponing, free gifts, novelties, demonst-rations.

Dealer Aids

Counter and window display, Demonstration given by retailer or the advertiser of goods.

Internet

Today, Internet is an important medium for Advertising.

IMS-DAVV (INDORE)

Page 23

RATIONALE OF STUDY

Although marketing managers cannot control information disseminated through social media, ignoring the realities of the impact of information transmitted through these forums on consumer behavior is tantamount to surrendering the communication process to the vagaries of the marketplace. By including social media in the Advertising mix, these new communication formats are given a home in standard marketing management practices and theories. This new-found home for social media provides managers with a better understanding of social media and a framework for incorporating it into their IMC strategies, thus more effectively communicating with their target markets.

Today, people are overwhelmed daily by numerous Advertising campaigns on television, radio, and magazines. The increase in frequency of ads is especially evident during large events, such as music concerts and sports events. The major question from the producers point of view is why people choose one brand over another, seeing that most of the times products are homogenous. I found this to be an interesting question and began discussing possible explanations for it. Along with Advertising campaigns the amount of advertisement emitted at the consumers in an attempt to persuade them to buy products, led me into the subject area. Thus I decided to explore the extent in which Advertising campaigns affect consumer preference.

IMS-DAVV (INDORE)

Page 24

OBJECTIVES OF STUDY

I have taken following objectives for my research project.

1. To analyze the effectiveness of social media marketing. 2. To investigate if the medium of Promotional affects the effectiveness of Advertising. 3. To find out if any other factor related to advertising mediums affects the process of consumer decision making process. 4. To know that how to select the right social media tool(s).

IMS-DAVV (INDORE)

Page 25

RESEARCH METHODOLOGY

Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances.

1. Research design: Research design is the plan structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.

There are three types of research design, 1. Exploratory research. 2. Descriptive research. 3. Causal research.

I. Exploratory research: This focuses on the discovery of ideas & generally based on secondary data. It is preliminary investigation which does not have a rigid design.

IMS-DAVV (INDORE)

Page 26

II. Descriptive research: This study is undertaken when the researcher wants to know the characteristics of certain groups such as age sex, educational, level, income, occupation. In contrast to exploratory studies descriptive studies are well structured.

Descriptive studies can be divided into two broad categories:

Cross Sectional Longitudinal

Cross sectional study is concerned with a sample of elements from a given population. Thus it may deal with households, dealers, retail stores or other entities. Cross sectional studies are of two types Field Studies & Surveys. Field studies are ex-post-fact of scientific inquiries that aim at findings the relations and inter relations among variables in a real setting. Such studies are done in life situations like communities schools, factories, organizations & institutions. Another type of cross sectional study is the survey research. The major strength of survey research is its wide scope.

Longitudinal studies are based on panel data and panel methods. A panel is a sample of respondents who are interviewed & then re-interviewed from time to time.

III. Causal Research: This study is undertaken when the researcher want to know the cause and effect relationship between two or more variables.

IMS-DAVV (INDORE)

Page 27

Among the above three method I have selected descriptive research design which means a form of conclusive research that aims to identify association among variable. It concerned with the characteristic of individual or group. It also helps in developing hypothesis.

2. Defining variables to be used The buying behavior of consumers might be affected by various variables like age, gender, occupation etc. The study aims to understand the significance of such variables in the process of buying decision making of consumers.

I. Age Age is always an important variable in the buying process. As this study is focused toward college going youth, so the age group is defined in 18 to 23.

II. Gender Gender might also be an important variable in making buying decisions. So this variable too has been incorporated in this study and the respondents also divided into Male and Female subgroups.

III. Qualification As my study is focused towards college going youth so I have considered qualification also as a variable. They have been divided into undergraduate group and postgraduate group.
IMS-DAVV (INDORE) Page 28

3. Sample design

Sampling plan: When only some representative items of a population are selected and data are collected only from these items then this method is known as sampling. I. Sampling size It is the basic units of the population to be sampled here in the sample size of 200 respondents are taken for carrying out research because of the limited time.

II. Sampling method Basically sampling method or Techniques may be classified into two generic types. 1. Probability sampling. 2. Non-probability sampling.

Probability Sampling is based on the theory of probability. It is also known as random sampling. It provides a known non zero chance of selection for each population element. NonProbability Sampling or non-random sampling is not based on the

theory of probability. This sampling does not provide a chance of selection to each population element. The only merits of this type of sampling are simplicity, convenience and low cost. Non-Probability does population element.
IMS-DAVV (INDORE) Page 29

not

provide

an

equal

chance

of

selection

to

each

Here, I have selected non -probability judgmental/convenience sampling method because these are very specific sample unit and this method it self means to deliberate selection of sample unit that conform to some predetermined criteria. As they are the most appropriate once for the given study.

III.. Sample design Sample design means to select one particular design through which we are going to collect data.

There are two ways for sample design 1. Observation method. 2. Survey

I have used field survey to collect all the primary data by preparing questionnaire.

4. Data collection method: Primary data Data which are collected at first hand either by the researcher or by someone else especially for the purpose of the study are known as primary data. For getting primary data I have used Questionnaire method because it will give actual opinion by filling up a questionnaire.

IMS-DAVV (INDORE)

Page 30

Secondary data Data collected earlier for some other purposes are called secondary data. I have preferred reference books, Newspapers and Internet web sites for collecting the secondary data.

4. Research measurement tools As the source of collecting data will be primary and that would be obtained through survey method by personal interview. The tool that was used is Questionnaire. The questionnaire was accordingly. divided into structured and may either unstructured entail multiple questions choices, is an

A structured

question

dichotomous questions, or a scale, whereas open-ended words. question, which implies

an unstructured

question

that the respondents answer in their own

For this study I have used structured non-disguised questionnaire. Structured questionnaire will be used because research topic is precisely formulated and respondents are already known what is to be observed. Non-disguised questionnaire will be used because they are already known about what they have to respond. As I have use both source of collecting data so in primary data through survey method data are collected and for secondary data through various means like internet, newspaper and books are used.

IMS-DAVV (INDORE)

Page 31

5. Tools for data analysis I have taken two tools for data analysis. Percentage Analysis It means to compare the observed frequency on the basis of percentage. The analysed data can be represented graphically. Percentage = (Observed frequency/Total no. of sample) x 100

6. Limitation of study The research was limited to Social media sites only. It may or may not be the true representative of the entire population. The project relied mainly on the primary data. Limited time period. The study is based on limited sample.

IMS-DAVV (INDORE)

Page 32

Data Analysis & Interpretation

Data Interpretation & Findings of customer Survey


AGE Less than 13 13-19 19-25 25-35 More than 35 0 5 67 29 2 0% 5% 65% 28% 2%

Interpretation Majority of the respondents 65% were age between 19 to 25 years and 28% were age between 25 to 35 years, 5% were teenager and 2% were more than 35 years in survey.
IMS-DAVV (INDORE) Page 33

GENDER The respondents are divided between male and female.

Male Female

58 45

56% 44%

Interpretation Majority of the respondents 56% were males and 44% were females in survey

IMS-DAVV (INDORE)

Page 34

QUALIFICATION The respondents are divided on the basis of their Educational qualification.

UG Graduate PG Other

15 40 43 5

15% 39% 42% 5%

Interpretation Majority of the respondents 42% were postgraduate and 39% graduate in the survey.

IMS-DAVV (INDORE)

Page 35

OCCUPATION

Student

70

68%

Professional

20

19%

Self employed

13

13%

Interpretation Majority of the respondents 68% were postgraduate, 19% were professional
IMS-DAVV (INDORE)

and

Page 36

remaining 13% were self employed in the survey. then why do u like mam

How often do you use social networking sites? Daily 51 50% 24 23% Alternate day 23 22% Weekly 5 5% Fortnight

Interpretation

It was found that 50 % of the respondent use social networking sites daily, 23% of the respondent use social networking sites alternate day, 22% of the respondent use social networking sites once in a week and remaining 5% of the respondent use social networking sites fortnight.

Which of the social media sites you are a member of? Facebook 95 92%
IMS-DAVV (INDORE) Page 37

Twitter Youtube LinkedIn Google Plus Flicker Amazon eBay

57 55 34 54 10 9 8

55% 53% 33% 52% 10% 9% 8%

Interpretation It was found that 92 % of the respondent are the member of Facebook, 55% of the respondent are the member of twitter, 53% of the respondent are the member of youtube, 52% of the respondent are the member of google plus, 33% of the respondent are the member of linkedin and other 10%, 9% and 8% of the respondent are the member of Flicker, Amazon and eBay respectively.

People may select more than one checkbox, so percentages may add up to more than 100%.

How often do you use social networking services? - Find some information Don't Use 2 2% 31 30% Rarely 43 42% Quite Often 27 26% Very Often

Interpretation
In the survey it was found that to find some information 42 % of the respondents use social networking sites Quite Often, 30 % of the respondents use social networking sites rarely, 26% of the respondents use social networking sites very often and 2 % of the respondents dont use social networking sites to find some information.

IMS-DAVV (INDORE)

Page 38

How often do you use social networking services? - Get opinions Don't Use 7 7% 43 42% Rarely 49 48% Quite Often 4 4% Very Often

Interpretation
In the survey it was found that to get opinions 48 % of the respondents use social networking sites Quite Often, 42 % of the respondents use social networking sites rarely, 4% of the respondents use social networking sites very often and 7 % of the respondents dont use social networking sites to get opinions.

How often do you use social networking services? - Socialize

Don't Use Rarely Quite Often Very Often

12 18 22 49

12% 17% 21% 48%

Interpretation
In the survey it was found that to be socialize 21 % of the respondents use social networking sites Quite Often, 17 % of the respondents use social networking sites rarely, 48% of the respondents use social networking sites very often and 12 % of the respondents dont use social networking sites to be socialize.

How often do you use social networking services? - Increase professional update Don't Use 13 13% 26 25% Rarely
IMS-DAVV (INDORE) Page 39

Quite Often Very Often

45 44% 17 17%

How often do you use social networking services? - Stay updated Don't Use 4 4% 21 20% Rarely 43 42% Quite Often 35 34% Very Often

Interpretation It was found In the survey that to stay updated 42 % of the respondents use social networking sites Quite Often, 20 % of the respondents use social networking sites rarely, 34% of the respondents use social networking sites very often and 4 % of the respondents dont use social networking sites to stay updated.

Do you believe on the content posted on the social networking sites?

IMS-DAVV (INDORE)

Page 40

Yes No Can't say

36 22 45

35% 21% 44%

Interpretation It was found in the survey that 35% of the respondent believe on the content posted on the
social networking sites and 21% of the respondent dont believe on the content posted on the social networking sites.

Did the information you get about the product on various social networking sites persuade you to buy the product?
IMS-DAVV (INDORE) Page 41

Yes No

50 53

49% 51%

Interpretation It was found that 49% of the respondent persuade on the content posted on the social
networking sites and 51% of the respondent dont persuade on the content posted on the social networking sites

11. Have you ever purchased a product or service based on an advertisement on social networking sites?
IMS-DAVV (INDORE) Page 42

Yes No

54 47

52% 46%

Interpretation It was found that 52% of the respondent have purchased a product or service based on an
advertisement on social networking sites and remaining have not ever purchased a product or service based on an advertisement on social networking sites

Does the organization you are related to, manage the communication via social media? Yes 70 68%
IMS-DAVV (INDORE) Page 43

No

33

32%

Interpretation It was found that the organization of 68% of the respondent manage the communication via social media and the organization of 32% of the respondent dont manage the communication
via social media.

Are you a member of a fan page for a brand or a product on social networking sites? Yes 55 53%

IMS-DAVV (INDORE)

Page 44

No

44

43%

Interpretation It was found that 53% of the respondents are a member of a fan page for a brand or a product on social networking sites and 43% of the respondents are not a member of a fan page for a
brand or a product on social networking sites

What type of promotional advertisement on social networking sites you are aware of? Viral Videos 67 65%

IMS-DAVV (INDORE)

Page 45

Banner Ads Web Pages Blogs Interactive tools/Applications

67 72 60 39

65% 70% 58% 38%

Interpretation It was found that 65% of the respondents are aware about viral videos on social networking sites, 65% of the respondents are aware about Banner Ads on social networking sites, 70 % of the respondents are aware about Web Pages on social networking sites, 58% of the respondents are aware about bloges on social networking sites and 38% of the respondents are aware about Interactive tools/Applications on social networking sites.

How do you feel about the advertisement on social networking sites? Very Annoying 10 10% Somewhat Annoying Indiffernt Useful Very Useful 19 34 39 1 18% 33% 38% 1%

Interpretation
38% of the respondents feels that advertisement on social networking sites are useful, 1% of the respondents feels that advertisement on social networking sites are very useful, 33% of the respondents feels that advertisement on social networking sites are indifferent, 18% of the respondents feels that advertisement on social networking sites are annoying and 10% of the respondents feels that advertisement on social networking sites very annoying.

When compared to other online promotions social media promotions are? Less Effective 10 10% Same
IMS-DAVV (INDORE)

38

37%
Page 46

More Effective Much More Effective

49 6

48% 6%

Interpretation

It was found that

48% of the respondents feels that social media promotions are more effective, 36% of the respondents feels that social media promotions are same effective, 10% of the respondents feels that social media promotions are less effective, 6% of the respondents feels that social media promotions are much more effective.

Do you consider advertisement that you see on your profile relevant to your interest? Yes, most of the time 21 20%

IMS-DAVV (INDORE)

Page 47

Occasionally Never

67 12

65% 12%

Interpretation
65% of the respondents consider that advertisement on profile relevant to interest occationally, 20% of the respondents consider that advertisement on profile relevant to interest most of the time and12% of the respondents do not consider that advertisement on profile relevant to interest.

In the last 3 visits did you notice any advertisement on social networking sites?

IMS-DAVV (INDORE)

Page 48

Yes No

78 23

76% 22%

Interpretation
76% of the respondents notice any advertisement on social networking sites in the last 3 visit and 22% of the respondents didnt notice any advertisement on social networking sites in the last 3 visit.

How often do you click on the advertisement you see on your profile? Often 18
IMS-DAVV (INDORE)

17%
Page 49

Rarely Occasionally Almost Never

48 27 10

47% 26% 10%

Interpretation
It is found in the servey that 17% of the respondents often click on the advertisement see on their profile, 47% of the respondents rarely click on the advertisement see on their profile, 26% of the respondents occasionally click on the advertisement see on their profile and 10% of the respondents never click on the advertisement see on their profile.

What is the main reason that makes you click on an advertisement?

IMS-DAVV (INDORE)

Page 50

Relevancy Attraction by a celebrity on an advertisement Recognition of a brand/company Im intrigued by a hint in the promotion

24 23% 53 51% 75 73% 12 12%

Interpretation
It is found in the servey that 23% of the respondents click on the advertisement see on their profile due to relevancy, 51% of the respondents click on the advertisement see on their profile due to Attraction by a celebrity on an advertisement, 73% of the respondents click on the advertisement see on their profile due to Recognition of a brand/companyand 12% of the respondents click on the advertisement see on their profile they intrigued by a hint in the promotion.

FINDINGS

IMS-DAVV (INDORE)

Page 51

Majority of respondents are the members of facebook, twitter, linkedIn and google
plus.

Majority of the respondents (51%) use social networking sites daily. Only 35% of the respondents believe on the content posted on the social networking
sites.

Majority of respondents (49%)


networking sites to buy the product.

persuade on the content posted on the social

Majority of respondents (52%)

have purchased a product or service based on an

advertisement on social networking sites.

The most known tools of promotion by social media sites are web pages (70%), banner ads and viral videos (65%) and blogs (58%).

The main reason that makes someone click on an advertisement posted on social media
is Recognition of a brand/company (73%), Attraction by a celebrity on an advertisement
(51%) and Relevancy (23%).

Majority of the respondents said social media promotions are useful (38%), some
says (33%) its indifferent and other (18%) says its annoying.

IMS-DAVV (INDORE)

Page 52

Majority of the respondent (48%) said


social media promotions are more effective.

when compared to other online promotions

Majority of the respondents (53%) are a


product on social networking sites.

member of a fan page for a brand or a

SUGGESTIONS
Promotion should not be too costly, because it increases the price of the product. Media should be selected according to targeted customer base.

Promotion can be made more effective if it focuses on increasing direct consumer involvement in the process of product promotion. New age media which are more personally reachable and more interactive like internet, mobiles, instant messengers etc should be used to enhance the outreach as well as the effectiveness of the campaigns Customer involvement seems higher with promotion when the message talks about tangible benefits of the product.

IMS-DAVV (INDORE)

Page 53

CONCLUSIONS

The conclusions that can be drawn from this research project are enumerated as follows :

I. Promotion has the potential to affect the customer decision making process in relation to social networking sites. So marketers should focus on using such promotion that generates positive buying behavior in the targeted customers.

II. The tools of promotion that seemed to be most popular with the customers were blogs and banner ads. This fact should convince the advertisers to focus more on this medium.

III. Customers seemed to be overly influenced by celebrity endorsed promotion. So probably to generate more customer interest and buying this type of promotion should be undertaken to a greater extent.

IMS-DAVV (INDORE)

Page 54

BIBLIOGRAPHY/WEBLIOGRAPHY

1. Kotler Philip, Marketing Management ,Pearson Education, New Delhi 2. G.C.Beri, Marketing Research, Tata McGraw-Hill Company Limited, New Delhi. 3. Handbook of Promotion Management by Roger Barton published by McGraw hill edu. 4.Promotion and sales promotions by Satish K Batra published by excel books 5. Business Today

Web Site www.wikipedia.com www.google.com

www.elsevier.com
www.scribd.com www.ssrn.com www.googlescholar.com

IMS-DAVV (INDORE)

Page 55

You might also like