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Role of Social Media Marketing in Tesco plc : Report

   

Added on  2020-01-07

31 Pages11257 Words1680 Views
ROLE OF SOCIAL MEDIA MARKETING AS AN AUDIENCEMARKETING TOOL IN ORDER TO PROMOTE CORPORATEEVENTS: A STUDY ON TESCO PLC, UK

EXECUTIVE SUMMARYIn the modern era social media as a tool has become significant for business as throughthis it is possible for business enterprise to develop awareness in the market. Further, it enhancesmarket performance of company and assist in accomplishment of desired objectives. The mainaim behind conducting present study is to evaluate the role of social media marketing as anaudience marketing tool in order to promote corporate events where Tesco has been chosen asone of the organization which operates in retail sector. Main motive of company is to enhance itspresence in the global market due to which social media practices are most commonlyconsidered by organization. On the other hand, for conducting method of analysis the businessoperations carried out by Tesco have been considered and they have been compared with itsmajor competitors in the market. Main competitor of Tesco is Sainsbury where business alsooffers retail products in the market. Overall analysis has shown that performance of Tesco islower as compared with Sainsbury in the market. Sainsbury’s gross margin, asset turnover,current, quick ratio is higher as compared with Tesco. In the present research all research methods have been considered in appropriate mannerwhere different layers are present which have enhanced efficiency of the entire research. For thepresent study data has been collected from secondary sources linked with social media and thishas enhanced efficiency of the study being conducted. Views of different authors have beenconsidered which with the help of different studies. On conducting the literature review part ithas been found that businesses are directly benefitted through adoption of social media as a tool.The entire study being carried out has supported in knowing about the effectiveness of socialmedia practices in sharing corporate events. Further, sites such as facebook, twitter etc areeffective enough in sharing corporate information with those of target market. On the basis ofconclusion there are some recommendations to Tesco such as time to time information sharedwith the help of social media sources must be updated; networking site such as facebook must beused rather than others.

TABLE OF CONTENTSCHAPTER 1: INTRODUCTION....................................................................................................11.1 Background................................................................................................................................11.2 Rationale....................................................................................................................................21.3 Research Aim.............................................................................................................................21.4 Objectives..................................................................................................................................2CHAPTER 2: LITERATURE REVIEW.........................................................................................32.1 Significance of social media marketing in promoting corporate events....................................32.2 Effectiveness of social media in building brand image of business..........................................42.3 Influence of social media on market performance of business..................................................52.4 Social media maturity model.....................................................................................................6CHAPTER 3: METHOD OF ANALYSIS......................................................................................83.0 Introduction................................................................................................................................83.1 Comparative analysis of Tesco and Sainsbury..........................................................................83.2 Analysis of the data collected....................................................................................................8CHAPTER 4: SYSTEMATIC REVIEW......................................................................................104.0 Introduction..............................................................................................................................104.1 Comparative analysis...............................................................................................................114.2 Issues in comparative analysis.................................................................................................114.3 Evidence..................................................................................................................................114.4 Social media theory.................................................................................................................144.5 Conclusion...............................................................................................................................15CHAPTER 5: CRITICAL EVALUATION...................................................................................16CHAPTER 6: DISCUSSION........................................................................................................19CHAPTER 7: CONCLUSION AND RECOMMENDATIONS...................................................227.1 Conclusion...............................................................................................................................227.2 Recommendations....................................................................................................................23REFERENCES..............................................................................................................................26

CHAPTER 1: INTRODUCTION1.1 BackgroundIn the modern era social media as a tool has become significant for business as throughthis it is possible for business enterprise to develop awareness in the market. Further, it enhancesmarket performance of company and assist in accomplishment of desired objectives. It isregarded as one of the most effective advertising source and allows company to gain competitiveadvantage (Barker, 2013). With the rise in level of competition in the market every business isfacing large number of issues where promotion of products in the market has become difficult.Apart from this, substitute of products are easily available in the market due to which businesseshave to highlight unique features in the market for growth and development of the company.Social media as a tool allows business to build its internal strength and management can easilyhighlight the range of unique attributes present in the product or service range being offered. Inshort, it allows business to strengthen its customer base and leads to accomplishment of desiredaims and objectives. In the entire retail sector of UK various businesses are operating in themarket such as Tesco, Sainsbury and Asda and due to this reason, companies have started toindulge into social media practices so as to gain fruitful results with the help of this. Byconsidering the overall benefits of social media marketing its adoption is increasing at faster pace(Abernethy, 2012). Apart from this, company can easily deal with barriers being present in theexternal environment. For conducting the present study organization chosen is Tesco plc which operates in themarket of UK and well known for the range of retail products it offers to its target market. Mainmotive of company is to enhance its presence in the global market due to which social mediapractices are most commonly considered by organization. Further, networking sites such asfacebook, twitter etc are used for sharing information linked with corporate events or in anyother form. This has become one of the main reasons behind success of business in the market.This tool has allowed Tesco to better understand need and requirement of the target marketwhich change on continuous basis (Poole, 2011). Apart from this, by sharing informationregarding corporate events business ensures whether its practices are ethical and favorable forthe people living in the society or not. Therefore, this also assists in building brand image of thebusiness and supports company to sustain in the market for longer period of time which is one ofthe main objectives of business. 1

1.2 RationaleOne of the main reasons behind carrying out the present study is to analyze the socialmedia practices of Tesco with the motive to share corporate events and other type of informationwith the target market. Further, the entire study shed light on the social media practices ofcompany through which better relationship can be developed with the customers and they canknow about each and every operation carried out by business in the market. Moreover, it hasprovided long term benefits to the business in the form of higher profitability level and marketshare (Falls and Deckers, 2011). Further, there is no doubt that market where Tesco operates hasbecome challenging but to operate efficiently on continuous basis company has to build strongrelationship with its target market. In short, it can lead to accomplishment of desired aims andobjectives which is fruitful for business. Developing relationship with target market is must forbusiness and its absence can adversely influence business operations in the market. Adoption of social media as a marketing tool is increasing at faster pace where everycompany shares crucial information through the networking sites such as facebook, twitter, etc.One of the key benefit of employing social media as a tool is that it assist business to betterunderstand need and requirement of target market as social trends changes on continuous basisdue to which it is necessary for organization to comply with the same in effective manner (Wu,2013). Apart from this, advertising sources such as television and print media have becomeineffective due to which adoption of networking sites for marketing purpose has increased in themodern era as compared with past. So, this is advantageous for company in every possiblemanner and provides long term advantages. 1.3 Research AimTo evaluate the role of social media marketing as an audience marketing tool in order topromote corporate events: A study on Tesco Plc UK 1.4 Objectives Following are the range of objectives set for conducting the present study which are as follows:To understand the significance of social media marketing in promoting corporate eventsTo assess the effectiveness of social networking sites in developing brand image of TescoTo recommend the effective ways through which Tesco can better indulge into practicesof social media for sharing corporate events. 2

CHAPTER 2: LITERATURE REVIEW2.1 Significance of social media marketing in promoting corporate eventsAs per view of Preston (2012) in the modern era with the rise in level of competitionevery business has started to promote corporate events so that it is possible to enhance marketperformance (Preston, 2012). Further, one of the main benefit of employing social media as atool is that it supports in developing awareness in the market and in turn business can gaincompetitive advantage with the help of this. Social networking sites such as facebook, twitter etcare accessed by each and every individual in the modern era and this has provided businesseswide platform to share information and knowledge with target market. However, Levinson andGibson (2010) argued that sharing corporate events with the target market builds trust andconfidence in customers towards business. Therefore, it becomes easy for organization toaccomplish its desired aims and objectives. Apart from this, majority of the businesses havedeveloped their own page on networking site such as facebook which has assisted in buildingstrong relationship with the target market (Levinson and Gibson, 2010). Generally corporateevents are organized by every company on continuous basis and its main purpose differs fromone another. Further, it can be for social welfare or any other purpose and due to this reasonproviding customers information in relation with the corporate event is necessary. According to Baer (2013) engagement of customers with the help of social networkingsite is effective where businesses are able to engage its target market in its crucial practiceswhich are associated with the accomplishment of desired goals and objectives. This is one of themain benefits obtained by company through social media where they are able to engagecustomers in large number of practices (Baer, 2013). In short, it can support company to enhanceworldwide presence where more customers can be attracted towards range of services orproducts offered by company in the market. However, Evans (2010) argued that social mediamarketing as tool posses characteristics of sharing information on wider basis and its overalloutcomes are also favorable for business. It allows business to retain its loyal customers forlonger period of time and in turn build trust towards firm. Apart from this, it becomes easy fororganization to deal with large number of challenges such as rise in level of competition etc.Moreover, it is necessary for management of enterprise to ensure that data being shared isauthentic and reliable too (Evans, 2010). Otherwise in case of unreliable informationperformance of the business in the market can be adversely affected. Using social media tools3

saves time and overall cost of the business which is also advantageous for company in themarket. Apart from this, business can easily focus on need and requirement of its target marketwhich is considered as one of the main objective behind carrying out operations in the market.Therefore, in this way social media marketing is effective enough in sharing corporate events. 2.2 Effectiveness of social media in building brand image of businessAs per view of Zimmerman and Ng (2015) social media as a tool is effective enough inbuilding brand image of company in the market. Further, to know overall effectiveness of socialmedia the model of social staircase is effective which takes into consideration series of stagesstarting from strategy, presence, tools and conversation (Zimmerman and Ng, 2015). All thesestages are followed in proper sequence and allow business to build strong relationship with itstarget market. First stage is strategy where plans are developed with the motive to supportbusiness and this has favorable impact on the company. Next stage is presence which isassociated with the value that business will provide to the target market. However Normore andDoscher (2007) argued that it is one of the most crucial stages as through this company can knowabout its target market and their needs can be targeted efficiently. Tools are another stage whichis linked with the techniques through which company can share its brand values. It can beadoption of sites such as facebook, twitter etc through which information regarding corporateevent or another other can be shared with target market (Normore and Doscher, 2007). Last stageis conversation where business can easily share information with its customers through adoptionof appropriate tool. This model has supported in knowing the effectiveness of social media in building brandimage of company in the market. Further, it is the ultimate goal of every enterprise to develop itsbrand image which is only possible when social media practices are enhanced. According toHinson and Kodua (2012) the practices of social media has supported businesses to build strongrelationship with its target market and has lead to favorable outcomes also. Moreover, it isbeneficial for customers also as through this they are able to know the range of operations carriedout by organization and this has somehow assisted to deal with the challenges present in thebusiness environment (Hinson and Kodua, 2012). Apart from this, social media as a tool saveslarge amount of time where it is possible for customers to respond back quickly on the basis ofinformation shared with them. Moreover, every business carries out events on continuous basisdue to which information in relation with the same has to be shared by business with its target4

market as it enhances brand image of company. However Vel and Sharma (2010) argued thatnetworking sites such as facebook and twitter are efficient enough in attracting customers and ithas provided wider platform to businesses so as to share important information with them oncontinuous basis. Apart from this, changes taking place in the business environment adverselyaffects company and due to this reason companies are required to consider social media as a toolfor promotion purpose (Vel and Sharma, 2010). Further, it has enhanced market performance ofcompanies in the market where it has become possible to enhance profitability along with thesales volume. So, in this way indulging into the practices of social media marketing allowsbusiness to focus on its key aim and objectives. 2.3 Influence of social media on market performance of businessAs per view of Chernov and Tsetsura (2012) social media practices have positive impacton the organization where it leads to higher profitability level along with sales volume. In short,it allows company to gain competitive advantage and in turn it is possible to focus on the majorareas where business is underperforming (Chernov and Tsetsura, 2012). Apart from this, withoutundertaking the concept of social media it is not possible for organization to survive in themarket and this can have adverse impact on the brand image also. In short, it has acted asdevelopment tool for the enterprise where market challenges can be faced easily. HoweverCoxand McLeod (2014) argued that social media practices leads to wider market coveragewhere business can easily share crucial information with its target market and through thisfavorable results can be obtained easily. Adoption of social networking sites for sharinginformation is rising at faster pace as it decreases cost associated with the promotion of goods orservices in the market which is easily possible with the help of social media tools. Apart fromthis, corporate events build brand image of business in the market where sharing information inrelation assist company to perform better in the market (Coxand McLeod, 2014). Moreover,there are some areas present which organization may not be able to perform efficiently.Therefore, social media also allows company in gaining competitive advantage. On the otherhand, networking sites such as facebook, twitter allows company to create own personal blogthrough which interaction with target market is possible and this leads to stronger customer baseof the organization. According to Musgrave (2011) social media practices are effective enough inbuilding brand image of business and it directly leads to accomplishment of desired goals andobjectives. Apart from this, every company operates in competitive market and to deal with the5

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