Social Media Marketing and its Impact on Branding: A Case Study of Air France
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This paper discusses the impact of social media marketing on branding, with a case study of Air France. It covers the role of social media networks, traditional advertising methods, and challenges faced by companies. The paper also provides recommendations to increase brand awareness.
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Running head: SOCIAL MEDIA MARKETING Social media marketing and how it transformed the idea of marketing and reached all over the world- Case Study of Air France Name of the Student Name of the University Author Note
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1SOCIAL MEDIA MARKETING Acknowledgement Thank you to all of those who have helped listened and encouraged me throughout this study. I am indebted to my supervisor ……………………. whose guidance, advice and patience have been immeasurable. My sincere thanks to all members of the…………… [Mention your university/college name], both staff and students, whose continuous support have made this thesis possible. I would like to thank all of the participants in the study: students, teachers and Local Education Authorities, for the time and help given throughout. Without their participation, this research would not have been possible. In this context, I am also thankful to them, whose research work helped me to execute this paper well. Finally, I thank my family, without whom this thesis would not have been started or completed! Your encouragement and support have never faltered; thank you.
2SOCIAL MEDIA MARKETING Abstract Social media marketing is the process through which the attention of the potential customers can be gained in the social media sites. The marketing programs that are adopted for the social media sites encourage the customers in reading the contents that are shared by the companies. The level of interaction between these two has increased to a great extent due to the use of social media networks, which has helped in marketing the products and services in a proper manner as well. The social media platforms has gained popularity in the recent years, which has helped the businesses to increase its level of productivity and brand awareness in the market as well. It has also resulted for the company in shifting towards new media from the traditional media networks that are present.
3SOCIAL MEDIA MARKETING Table of Contents 1.0 Introduction..........................................................................................................................5 1.1: Problem Statement..........................................................................................................5 1.2: Organization background................................................................................................5 1.3 Aim of the study...............................................................................................................6 1.4 Research objectives..........................................................................................................6 1.5 Research questions...........................................................................................................6 2.0: Literature Review................................................................................................................8 2.1: Concept of social media..................................................................................................8 2.2: Social networking sites...................................................................................................8 2.2.1: Facebook..................................................................................................................8 2.2.2: Twitter......................................................................................................................9 2.2.3: LinkedIn...................................................................................................................9 2.2.4: Flickr........................................................................................................................9 2.2.5: YouTube.................................................................................................................10 2.3: The role of social media networks................................................................................10 2.3.1: Marketing with the help of social media................................................................10 2.3.2: Sales Funnel adoption in social media...................................................................11 2.4: Value and power of social networks.............................................................................11 2.4.1: Sarnoff’s Law.........................................................................................................11 2.4.2: Metcalfe’s Law......................................................................................................12 2.4.3: Reed’s Law............................................................................................................12
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4SOCIAL MEDIA MARKETING 2.5: Factors determining impact of social media on brand awareness.................................13 2.6: Online branding.............................................................................................................14 2.6.1: Disadvantages of online branding..........................................................................14 2.6.2: Brand equity...........................................................................................................15 2.7: Traditional channels of advertising...............................................................................15 3.0: Research Methodology.....................................................................................................16 4.0: Analysis and Findings.......................................................................................................17 4.1: Introduction...................................................................................................................17 4.2: Quantitative analysis.....................................................................................................17 5.0: Discussion and Conclusion...............................................................................................21 5.1: Discussion.....................................................................................................................21 5.2: Conclusion....................................................................................................................22 Reference List..........................................................................................................................23 Appendices...............................................................................................................................26 Appendix 1: Survey questions.............................................................................................26
5SOCIAL MEDIA MARKETING 1.0 Introduction Social media marketing is the process through which the attention of the potential customers can be gained in the social media sites. The marketing programs that are adopted for the social media sites encourage the customers in reading the contents that are shared by the companies. This results in electronic word of mouth (E-WoM) so that the sales of the companies can be increased to a significant manner (Scott). The social networking websites allow the consumers in interacting with one another so that a better level of relationship can be built. This enables the company in handling the complaints and feedbacks that are provided by the customers in a proper manner. The networking sites also act as a direct platform for the consumers in interacting directly with the companies with respect to the products and services that are being offered to them (Lewis). 1.1: Problem Statement The use of social networks has helped in transforming the level of connectivity between the companies and the customers. The level of interaction between these two has increased to a great extent due to the use of social media networks, which has helped in marketing the products and services in a proper manner as well. The problem associated with the social media networks are that it creates an impact on the branding of the company in a positive or negative manner. The companies are also facing many challenges, which needs to be minimized so that the management can be done accordingly and to determine the best social networking tools that will help the companies in creating awareness of their brands (Strauss, Judy and Raymond). 1.2: Organization background Air France is one of the main flag carrier airships that has its headquarters in Tremblay-en-France. The company is a subsidiary of the Air France-KLM Group and plays a
6SOCIAL MEDIA MARKETING part in the global alliance of airlines. The airlines help the customers by serving in 36 destinations and specializes in cargo and passenger services. The global hub of the company is located in the Charles de Gaulle Airport and the domestic hub of the company is located in Orly Airport. The company has been using the social sites so that it can spread awareness of its services among the customers. This has enabled them in gaining many new customers with the discounts and offers that they are providing to the customers. However, in the recent times it can be seen that the customers are not being attracted towards the company in spite of the advertisements that are being done by them. This factor will be studied in thesis thesis (Air France KLM). 1.3 Aim of the study The thesiswill helpin shedding lighton howthecompanycan takeup the opportunities that are present in the social networking sites so that it can spread brand awareness. The use f the right tools in social media network will also allow the company in increasing the brand visibility. 1.4 Research objectives The thesis will be based on the following objectives: ï‚·To study the role of social media and its branding impacts ï‚·To understand the challenges that the company face so that it can be reduced ï‚·To understand the traditional advertising methods and its relevance today ï‚·To provide suitable recommendation so that the social network sites can help the company in increasing brand awareness 1.5 Research questions The thesis will be done according to the following questions: 1.How does social media create an impact on the branding techniques?
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7SOCIAL MEDIA MARKETING 2.What are the challengesthat thecompany faceswith respect to socialmedia marketing? 3.What is the importance of traditional advertising tools in the world at present? 4.What are the suitable recommendations that can be provide to the company to increase brand awareness?
8SOCIAL MEDIA MARKETING 2.0: Literature Review 2.1: Concept of social media The social media platforms has gained popularity in the recent years, which has helped the businesses to increase its level of productivity and brand awareness in the market as well. It has also resulted for the company in shifting towards new media from the traditional media networks that are present. This has led the companies in facing multiple challenges at the initial years in adapting to this technology. It has been seen that the companies are shifting their focus gradually towards the online advertising methods so that they can align themselves in a better manner with the modern buyers (Ryan). Social media is a platform that helps the company to be connected with their customers on a virtual platform so that the products and services that are launched by the company can help in increasing the brand awareness. The social sites such as Facebook, YouTube, Twitter, Flickr and LinkedIn has allowed the companies in advertising their services to its customers and stay connected with them as well (De Mooij). 2.2: Social networking sites 2.2.1: Facebook This site was launched in the year 2004 and currently has more than 800 million users who are active on this platform. The site is also accessible also through the mobile devices that has helped the people in staying connected with their friends and families located at different places. The site is also available in different languages so that it can help the people in conversing in their native languages. The company has also launched a new portal in 2011 for the marketers so that it can help them in showcasing their products and services to the customers. Air France has to market the services in a proper manner through this platform so
9SOCIAL MEDIA MARKETING that it can help the customers in understanding the varieties that are being offered to them (Mulhern). 2.2.2: Twitter This site was launched in 2006 and was quite the opposite of Facebook, as it helped the people in getting the latest information regarding the topics that they find interesting. After finding the interests, the users need to follow them so that it can help them in getting more information when the company updates their portal. It has allowed many companies in positioning their brands in the market through the feedbacks so that it can help in increasing the market intelligence. The customer relationship marketing has also allowed in increasing the direct sales so that the company can reach out to their customers directly. Air France uses this platform to advertise their services so that it can help in lifting their brand name and enhance the relationship with the customers (Jenkins et al.). 2.2.3: LinkedIn According to Chaffey, this site was launched in the year 2003 so that the users can share their knowledge and ideas with each other. It is responsible for operating the largest network of professionals and covers more than 200 countries. The portal is available in different languages so that professionals of different regions can have access to it. The portal helps in providing access to variety of information such as the name and size of the company and the job title for which the employees can be hired. Cathay Pacific Airway is a perfect example that uses this portal, which has enabled them in sending messages to different people so that their feedbacks can help the company to improve. They have been able to increase their brand awareness in the market as well using this portal. Air France on the other hand has not been able to capitalize through this site and needs to improve their portal so that potential users can be attracted.
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10SOCIAL MEDIA MARKETING 2.2.4: Flickr This site helps in sharing photos that was launched in the market in 2004 and was taken over by Yahoo! In the year 2005. The company is available in ten languages and has more than 50 million users. It allows the users in uploading images and videos through the Free and Pro account where the Free account allows the user in uploading 2 videos and 300 MB of images per month and the Pro account gives unlimited access in uploading photos and videos. Air France does not use this portal as it does not help them in increasing their customer base in the market (Leeflang et al.). 2.2.5: YouTube According to Tuten and Michael, YouTube was created in 2005, which was primarily a website to share videos that are inspirational and informative for the users. The company uses HTML5 and Adobe Flash Video so that the video content can be generated for the user and can be viewed by more number of people. Almost 5 billion videos are viewed on an everyday basis and almost 800 million people visit the site on a monthly basis so that the contents can be watched and shared. Air France uses this medium to advertise their products and services so that it can spread awareness of the products among the customers. 2.3: The role of social media networks Babin and William stated that one of the many characteristics of social media is that this platform can be used by the people to initiate interactions and collaborate with others based on the ideas that has been pitched. It also enables the users in sharing the content so that the level of communication can be increased. The primary role of social media networks is to increase the level of communication so that it can help in developing trust between the customers and the business.
11SOCIAL MEDIA MARKETING 2.3.1: Marketing with the help of social media Marketingisafunctionthathelpsintheprocessofcreating,deliveringand communicating the values to the customers so that a healthy relationship can be developed between the stakeholders and its organization. Internet marketing is an application that helps in using the digital technologies in achieving the objectives of the company set for marketing. It helps the company in identifying the processes for which internet can be used for marketing so that the needs and wants of the customers can be analysed. The contribution from the online revenue can also be anticipated so that the satisfaction among the customers can be increased (Boone and David). 2.3.2: Sales Funnel adoption in social media The relationship between online networking and brand has to be developed in a proper manner so that it can make the business sustainable in nature. The companies need to understand the network in an efficient manner, which will help in attracting the customers due to better quality and increasing the prospects in the market as well. The sales funnel is wider at the top and narrows down while reaching the bottom portion. The marketers use this form of advertising so that it can help in presenting their ideas to prospective clients and increase its level of marketing process (Hays and Dimitrios). 2.4: Value and power of social networks The social network is a set of relationship that has the ability to grown in to complex patterns in an enormous manner. The company may go online depending on various factors such as establishing their brands or growing contacts with more number of people. The laws of value-governance help in understanding the relationship between the patterns that are present (Baker).
12SOCIAL MEDIA MARKETING 2.4.1: Sarnoff’s Law This law was developed by David Sarnoff who was also the founder of National Broadcasting Company (NBC). The law establishes the fact that the network value is directly proportionate to the number of listeners who are eager to know more about the network. With respect to the social network, it can be stated that more number of people can stay connected with a particular brand with the help of social network (Chaffey and Paul Russell Smith). Figure1: Interpretation of Sarnoff's Law 2.4.2: Metcalfe’s Law This theory was developed by Robert Metcalfe who was also one of the inventors of Ethernet and founder of a firm specializing in networking known as 3com. The law states that more number of users with the services allows the service to become a part of community. This theory states that a new member makes the profile of the user more valuable (Aral et al.).
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13SOCIAL MEDIA MARKETING Figure2: Interpretation of Metcalfe's Law 2.4.3: Reed’s Law This law was established by David Reed who had a specialization in the field of computer networking. It establishes the theory that the impact of network value is done through the recognition of supporting group of members. It also helps in the formation of subgroups so that the communication flow is relevant and important information can be passed through the network (Armstrong et al.). Figure3: Interpretation of Reed's Law 2.5: Factors determining impact of social media on brand awareness Tsimonis, Georgios and Sergios stated that there are various factors that creates an impact on the awareness of the brand. The first factor is the audience, as the company has to
14SOCIAL MEDIA MARKETING understand the audience towards whom the advertising will be directed through the social media. This will help in providing better level of exposure for the products and services in the online platform as well so that sales can be increased. Another factor is known as influence, which can be understood by the comments that are posted by the customers on the online portal with respect to advertise that are being provided by the company on the social network sites. The influence can be positive or negative depending on the reviews that are being given by the customers. Holt also stated that another factor that helps in determining the brand awareness is engagement, which has to be determined through the number of responses that the company gets with respect to the message that is being posted for the respective brand. The higher amount of engagement suggests that the product or service is being consumed in a better manner within the market. Action and loyalty is yet another factor that allows the customers in increasing the level of consumption for the product or service that is being delivered by the company. The loyal customers act as marketers who function without any payment for the company to promote their brands on the social media platforms. 2.6: Online branding Branding is a process of managing the struggles between the customers and the company so that it can help in building up an efficient relationship between the two. Using the social media allows the company in providing better experience to the customers with respect to the product and service that they want to advertise. The use of online branding allows the company in promising the customers with respect to quality products and services, as the message is conveyed in a better manner. It also helps in building up the trust among the customers, as the products that are being delivered to them are of quality, which will help in satisfying their needs and wants. It also
15SOCIAL MEDIA MARKETING allows the company in improving their services on a continuous manner from the feedbacks that are provided by the customers to the company (Hudson, Simon and Karen). 2.6.1: Disadvantages of online branding There are numerous challenges that the company also faces for establishing their brands in the online portal. It results in devaluing the goodwill if the product does not match up to the quality that has been shown in the online advertisement. It may result in the loss of reputation for the company, which may also affect their level of sales in the market where they are operating. The wrong way of advertising the products and services online also results in loss of brand equity due to the poor way of structuring the information on the online sites (Lamberton and Andrew). 2.6.2: Brand equity Dibb and Marylyn stated that Brand equity is the value of the products and services that are being given by the company in the market for the customers to purchase and consume it. A positive brand equity results in increasing the level of loyalty among the customers with respect to that particular brand, as more number of customers are willing to purchase it from the market. Similarly, a negative brand equity means that the company may be at a loss due to the inferior quality of products and services that they are offering in the market. It may also result in increasing or decreasing the goodwill of the company. Brand equity is important in cases when the product that is being used by the customers are visible to others. This increases the chances of the product to be purchased repeatedly by the customers as well. 2.7: Traditional channels of advertising Armstrong et al. stated that the traditional advertising channels are the old methods that were used by the company in advertising their products and services before the invention of internet. These traditional methods helped in the promotion of sales as well as increasing
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16SOCIAL MEDIA MARKETING the level of profit for the company. These traditional methods included television and radio as well as print media so that it can help in attracting the customers towards the products and services. These traditional methods helped the company in spreading awareness regarding the brands that are available in the market.
17SOCIAL MEDIA MARKETING 3.0: Research Methodology Figure4: Research method The research has been conducted following the necessary methods so that the data analysis can be done properly. The researcher has taken the deductive approach where the data has been analysed and proper recommendations have been provided (Mackey and Gass). The positivism philosophy has been taken, as it has helped in gathering the factual knowledge so that the statistics can be explained in a proper manner (Glesne). The descriptive design has been chosen by the researcher so that the variables can be described through the analysis that has been conducted (Brinkmann). The data has been collected from 15 middle management employees so that they can provide a better opinion regarding the social media marketing techniques. The sample has been collected following the simple random technique, as it has allowed the participants to be a part of the survey process in an equal manner (Flick). Topic Identification Literature Review Research Design Data CollectionData AnalysisThesis Writeup
18SOCIAL MEDIA MARKETING 4.0: Analysis and Findings 4.1: Introduction Thischapterhasanalysedthedatathathasbeencollectedfromthemiddle management employees through the survey process. The data from the analysis has also been interpreted by the researcher so that it can help in making the study more conclusive in nature. 4.2: Quantitative analysis NoYes 0 1 2 3 4 5 6 7 8 9 10 6 9 Social media platform Figure5: Social media platform The survey has been conducted among the participants to know whether the company uses any social media platform. It can be seen that most of the middle management employees have stated that the company uses the social media platform for various purposes.
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19SOCIAL MEDIA MARKETING AdvertisingConnecting with customersContent sharingPromotion of events 0 1 2 3 4 5 6 4 5 33 Activities Figure6: Activities From this analysis, it can be seen that the participants were surveyed regarding the activities that the company does in the social media sites. It was seen that most of the middle management employees have agreed to the fact that the connecting with the customers is the primary activity that is undertaken by the company. On a monthly basisOnce a daySeveral times 0 1 2 3 4 5 6 7 8 7 3 5 Usage Figure7: Usage
20SOCIAL MEDIA MARKETING The middle management employees were also surveyed regarding the frequency of using the websites to which they have stated that the company uses the sites on a monthly basis that helps them in posting news on the social media networks. Building relationship with customersEffective way of marketing the businessGetting prospective clients 0 1 2 3 4 5 6 7 8 7 44 Benefit Figure8: Benefit The participants were surveyed regarding the benefits that the organization will be deriving through the activities that are being done in the social media sites. It can be seen that most of the middle management employees have stated that the benefit of using the social media sites is that it has helped in building relationship with the customers.
21SOCIAL MEDIA MARKETING Competition is highConsuming timeDoes not help in increasing the company profile 0 1 2 3 4 5 6 7 8 7 44 Disadvantages Figure9: Disadvantages The survey was also conducted to gain insights regarding the disadvantages that are associated with using the social media sites. It can be seen that most of the employees have stated that the level of competition is very high, as many companies are advertising their products and services with the help of social media.
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22SOCIAL MEDIA MARKETING 5.0: Discussion and Conclusion 5.1: Discussion It can be seen that the participants have agreed to the fact that the company uses the social media platform for different purposes so that it can make the company visible to its customers with respect to the products and services that are being offered (Fig. 5). Scott stated that it has also helped the companies in eradicating the challenges that are present with respect to traditional media. The company is also shifting its focus on a gradual manner to the online method, which allows them in interacting with the customers in a proper manner. Additionally, the participants have also agreed to the fact that the social media platform is being used by Air France to connect with the customers in a proper manner so that the services that are being offered by them can be taken in to note by the customers (Fig. 6). Ryan was also of the view that the use of Facebook, Twitter, Flickr and other social media profiles has helped them in increasing the level of attractiveness in the market regarding the products and services that are being offered in the market. The participants were also surveyed regarding the frequency at which the company uses the social media sites to which it was seen that the company uses it mostly on a monthly basis so that it can be regularly update the customers and the social media users regarding the services that are being provided (Fig. 7). Mulhern stated that the company uses it to share the contents of the new product or service that is launched in the market so that it can help in increasing its attractiveness. The participants also said that the benefit of using the social media platform was to build a better level of relationship with the customers. This will help in selling the services in an efficient manner that is being offered by the company (Fig. 8). Leeflang stated that the branding that is done by the company with the help of marketing channels in the social media
23SOCIAL MEDIA MARKETING platforms will help in making the customers understanding the quality of the product so that they can get a prior knowledge before availing its services. The participants were also of the view that one of the major disadvantages for the company in using the social media platform is that the level of competition is very high. This has resulted in the advertising not being viewed by the customers and easily shifting to some another alternatives (Fig. 9). Holt was of the view that it may also affect the goodwill of the company, which will affect the overall sales of the company. The wrong method of advertising may result in increasing the chances of loss of reputation in the market. 5.2: Conclusion Thus it can be stated that the use of social media marketing is a new phenomenon that has been researched in this study and has a huge potential in the market to change the face of advertising and the level of technology. Air France needs to use the latest technologies so that it can result in increasing the level of engagement among the customers so that the awareness of the brand can be increased. This will help in increasing the attractiveness of the products and services among the customers within the market.
24SOCIAL MEDIA MARKETING Reference List "Air France KLM".Air France KLM, 2018, https://www.airfranceklm.com/en. Accessed 28 Nov 2018. Aral, Sinan, Chrysanthos Dellarocas, and David Godes. "Introduction to the special issue— social media and business transformation: a framework for research."Information Systems Research24.1 (2013): 3-13. Armstrong, Gary, et al.Principles of marketing. Pearson Australia, 2014. Babin, Barry J., and William G. Zikmund.Exploring marketing research. Cengage Learning, 2015. Baker, Michael J. "What is marketing?."The Marketing Book. Routledge, 2016. 25-42. Boone, Louis E., and David L. Kurtz.Contemporary marketing. Cengage learning, 2013. Brinkmann, S. (2014). Interview. InEncyclopedia of Critical Psychology(pp. 1008-1010). Springer New York. Chaffey, Dave, and Paul Russell Smith.eMarketing eXcellence: Planning and optimizing your digital marketing. Routledge, 2013. Chaffey, Dave. "Global social media research summary 2016."Smart Insights: Social Media Marketing(2016). De Mooij, Marieke.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited, 2018. Dibb, Sally, and Marylyn Carrigan. "Social marketing transformed: Kotler, Polonsky and Hastings reflect on social marketing in a period of social change."European Journal of Marketing47.9 (2013): 1376-1398.
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25SOCIAL MEDIA MARKETING Flick, U. (2015).Introducing research methodology: A beginner's guide to doing a research project. Sage. Glesne, C. (2015).Becoming qualitative researchers: An introduction. Pearson. Hays, Stephanie, Stephen John Page, and Dimitrios Buhalis. "Social media as a destination marketing tool: its use by national tourism organisations."Current issues in Tourism16.3 (2013): 211-239. Holt, Douglas. "Branding in the age of social media."Harvard business review94.3 (2016): 40-50. Hudson, Simon, and Karen Thal. "The impact of social media on the consumer decision process: Implications for tourism marketing."Journal of Travel & Tourism Marketing30.1-2 (2013): 156-160. Jenkins, Henry, Sam Ford, and Joshua Green.Spreadable media: Creating value and meaning in a networked culture. NYU press, 2018. Lamberton, Cait, and Andrew T. Stephen. "A thematic exploration of digital, social media, and mobile marketing: Research evolution from 2000 to 2015 and an agenda for future inquiry."Journal of Marketing80.6 (2016): 146-172. Leeflang, Peter SH, et al. "Challenges and solutions for marketing in a digital era."European management journal32.1 (2014): 1-12. Lewis, Ted G. "Booms."Book of Extremes. Copernicus, Cham, 2014. 51-67. Mackey, A., & Gass, S. M. (2015).Second language research: Methodology and design. Routledge.
26SOCIAL MEDIA MARKETING Mulhern, Frank. "Integrated marketing communications: From media channels to digital connectivity."The Evolution of Integrated Marketing Communications. Routledge, 2013. 19- 36. Ryan, Damian.Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers, 2016. Scott, David Meerman.The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons, 2015. Strauss, Judy, and Raymond D. Frost.E-marketing: Instructor's Review Copy. Routledge, 2016. Taylor, S. J., Bogdan, R., & DeVault, M. (2015).Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons. Tsimonis, Georgios, and Sergios Dimitriadis. "Brand strategies in social media."Marketing Intelligence & Planning32.3 (2014): 328-344. Tuten, Tracy L., and Michael R. Solomon.Social media marketing. Sage, 2017.
27SOCIAL MEDIA MARKETING Appendices Appendix 1: Survey questions 1.Does your company use any social media platform? Yes No 2.What activities do you do in the social media sites? Connecting with customers Advertising Promotion of events Content sharing 3.How often do you use the websites? Several times Once a day On a monthly basis 4.How does the social sites benefit your business? Building relationships with customers Getting prospective clients Effective way of marketing the business 5.What are the disadvantages of using social sites? Consuming time
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28SOCIAL MEDIA MARKETING Competition is high Does not help in increasing the company profile