Impact of WeChat Marketing Strategy on JW Marriott Hotel Shanghai

This report presents the understanding of different theories of social media planning including long tail theory, communication theory, and media richness theory. It also explains the impact of ‘WeChat’ marketing strategy on the performance of JW Marriott Hotel Shanghai in terms of increasing customer demand, revenues, and profitability due to a large number of active users in Shanghai.

Running head: LITERATURE REVIEW

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Table of Contents
Introduction......................................................................................................................................3
3 theories about social media planning............................................................................................3
Impact of JW Marriott Hotel Shanghai ‘WeChat’ marketing strategy on the performance of hotel
.........................................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
In the current business scenario, social media planning is used to attract a large number of
customers by endorsing their products and services through social media. This report presents the
understanding of different theories of social media planning. It also explains the impact of
‘WeChat’ marketing strategy on the performance of JW Marriott Hotel Shanghai.
3 theories about social media planning
The long tail theory of social media planning
According to Voss et al. (2016), long tail theory defines that origination of electronic selling as
well as digital products generated a model to change the mode of the company in terms of
producing the revenue. Traditional networking permits a person to communicate with small
amount of customers. There is a need for more efforts to update permanently. Since, an
individual does not frequently update their information to a company like number of telephone,
position of job, address, and addresses of e-mail. As a result, contact information cannot be
updated at all times as well as the company unable to trace the individuals and unable to retain
them. In such case, it is illustrated that social networking sites enable the business to organize
continually increasing contact without any additional time. Furthermore, social networking sites
permit the users to access the valid contact information at all period with profile acting as a
authentic self-actualizing contact record.

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.
(Sources: Scott, 2015).
In support of this, Leonardi (2014) evaluated the key motive of long -tail theory is to develop a
market and creates revenue from consumer. It leads the corporations to execute a wide variety of
long-tail marketing tools. These tools are based on the internet technologies. The most
representative is engaged to use the new media marketing. The managing and creating an
account on the social network as well as online and virtual societies is beneficial to extend the
market with low intensity and low-frequency consumer in a cost-effective manner.
Serrano-Cinca and Gutiérrez-Nieto (2014) exemplified that there are different techniques is
required for a company to endorse the goods like RSS feeds, podcasts as well as RSS feeds. It
also evaluated that the strategic application of word of mouth and communication of viable data
from P2P (person to person) in an online and authentic-words atmosphere could be beneficial to
generate revenue. This theory can be used in viral marketing. In this way, it discusses that the
deliberate distribution of marketing messages apply preexisting social networking channel by
focusing on the non-intentional, casual and low cost. These marketing could be performed by
using YouTube, standalone microsites, and viral emails.

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On the other hand, Best Manktelow and Taylor (2014) stated that long tail theory also
emphasizes on the pay per click and search engine optimization. In this way, it is assessed that
the marketing of websites on search engines could be performed via Yahoo, Google, and Bing.
This marketing emphasizes on long-tail keywords, which have less rivalry in the market.
Demand-side methods are also alike as SEM (search engine marketing) as it emphasizes on
keywords regarding long tail, and auctions related purchasing and trading mechanism. These
techniques are feasible to improve the ad impressions of long tail. It is existed in diagonally
niche publishers in the realism of display advertising. Publishers use ad exchange atmosphere
like AdECN and right media for competently and effectively trade display stock as it could be
unsold by direct sales force operations. As a result, it can be stated that company can get a higher
return by using the long tail advertisers.
Communication Theory of social media planning
As per the view of Bennett (2015), communication theory defines two-way activities to interact
with two or more parties or people. Traditional mass communication can shift the principle of
communication to push the audience. There are different channels, which could be used by a
company such as radio, newspaper, television and presented little opportunity for obtaining
feedback from the audience. Social media has made alteration and interactivity is one of the
unique features of the marketing platform.
In favor of this, Liu and Fraustino (2014) illustrated that the communication theory of social
media planning focuses on different elements such as engagement and connection. Engagement
is about the conversation. The theory of communication attempts to engage with the target
customers and generates genuine conversation. The medium provides a chance to strengthen and
extend favorable image among influencers and supporters. A corporation can also openly

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identify the unfavorable report to endorse the responsiveness of customer’s services and aids
individual consumers. In addition, followers are competent to engage with like-minded
consumers, maintain meaningful conversations as well as inspire one another to deal with
challenges.
Rauniar et al. (2014) opined that communication theory regarding social media planning is
focusing on the making connection through social media. There are different sites like MySpace,
Facebook, and its predecessor. It was originally generated to provide online networking amid
friends with the intention of social activities. Corporation has realized that the social networking
provides the value of making personal and direct communication with their current and potential
customers. This theory could be used in business to consumer atmosphere in which, it makes
competent to the company to converse directly with the individual client and collect feedback
and obtain consumer research. It is also used to endorse products and services to people who
have selected to obtain news by connecting or following the profile of the company.
Media Richness theory
According to Ngai et al. (2015), information richness is described by Daft and Lengel. They
stated that Media Richness theory is the competency of data to modify understanding within a
time interval. This theory also defines that all communication media differ in their competency
to enable consumers to communicate and to alter their knowledge accordingly. The extent of this
competency is an alias as medium's richness. MRT involves all communication channels on a
permanent scale based as per the proficiency to adequately interact with the complex message.
Media that could effectively handle different frames of references as well as clarify the complex
concerns that are considered to be richer while communication media has need of more time for
conveying the knowledge are estimated less rich.

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In support of this, Chung and Koo (2015) discussed that a key driver of choosing the
communication medium for a specific message is to decline the ambiguousness and potential
misinterpretation of a message. When a message is vague and unclear then, the company may
face challenges in terms of interpreting the information. The vague message, the more cues, and
data required to interpret it appropriately. For instance, a simple message is desired to organize a
meeting on time and place. It could be interacted by using short email but the need of detailed
message regarding work performance and expectation of an individual would be effectively
communicated via face to face communication.
In opposed to this, Strekalova and Krieger (2017) evaluated that this theory entails a structure
with axes from minimum to maximum vagueness and minimum to maximum uncertainty. In this
way, minimum vagueness and uncertainty demonstrate a clear and well-defined situation, as well
as maximum vagueness and uncertainty, shows the ambiguous conditions that need amplification
by top authority. This theory also determines that message clarity could be improved when
multiple departments are interacting with each other as the department could be trained in
diverse skill set or have conflicting communication norms.
Impact of JW Marriott Hotel Shanghai ‘WeChat’ marketing strategy on the performance
of the hotel
According to Liang Wang and Xu (2016), WeChat marketing strategy has a favorable impact on
the performance of JW Marriott Hotel Shanghai. In this way, it is stated that there is a large
number of active users who use WeChat to access the particular brand. The number of the user of
WeChat is high as compared to other social media channels like Facebook as it is beneficial to
cover the wide area. WeChat provides an opportunity to JW Marriott Hotel Shanghai to directly

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connect with the customers by messaging, audio and video calls. By using the WeChat marketing
strategy, the company can increase the demand of consumers.
In opposed to this, Peng Lin and Ren (2016) evaluated that WeChat provides the more facilities
as compared to the social messaging application. WeChat has an official account that users can
follow, unlike another social messaging app. It is a mobile application as any data can put up on
the official account can be projected to arrive at the user. There is a large number of people who
have quicker access to the mobile phone as compared to laptop or PC. The official accounts
permit a two-way communication amid the users and JW Marriott Hotel Shanghai as it aids to
decline the distance between them and builds a long-lasting relationship.
Bonhomme (2017) stated that there are large numbers of customers who have linked their credit
cards with the account of WeChat and about 80% of people use WeChat to make payment. It can
facilitate very valuable facts and figures to JW Marriott Hotel Shanghai regarding consumer
preference and spending habits. It is beneficial for the hotel to make a strategic plan. WeChat is
not only used for pooling the information but also used to analyze the information. It facilitates a
wide category of data analysis technique to the owner of the official account.
In favor of this, Hua (2014) evaluated that Shanghai is one of the largest consumer markets
which owing to a large amount of population. As the country, progressively shift towards
territory sector and the service-centric market as it is beneficial for JW Marriott Hotel Shanghai
for expanding their business by using demonstrating marketing strategy. It is a basic need for the
hotel to identify the need local market. In case of unavailability of any other large-scale social
media platform, WeChat marketing strategy is highly used to promote the social media
campaign.

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Bonetti Perry and Fernie (2017) opined that WeChat marketing strategy provides a chance to get
higher revenue to JW Marriott Hotel Shanghai due to increasing active users. Shanghai
persuades the consumer market and deals with social network circumstances by using WeChat
marketing strategy due to its unique features. One of the significant features of using WeChat in
JW Marriott Hotel Shanghai is to interact with the customers at a own level. The rich
characteristics of using WeChat is that it permits celebrities as well as JW Marriott Hotel
Shanghai to interact with fans and engages with them via message, photos, videos and much
more. In addition, Subscription page is a special channel in which brands and corporation can
endorse themselves to customers.
On the other hand, Hua (2014) stated that WeChat has modified the scenario of mobile
commerce. It is more effective as compared to another app due to offerings, growth as well as
possibilities. WeChat has provided an advance mobile commerce platform to build inside by
using the E-commerce platform and WePay. By using the WePay, users access authentic account
to add credits as well as make transaction through the app.
As per the view of Bonhomme (2017), WeChat marketing is unique, which could be used by JW
Marriott Hotel Shanghai for mobile commerce by celebrities, services, brands and even WeChat
themselves. Users can pay for anything and everything through the app. The ease of access to
products and connectivity could lead to the user for becoming more prone to make payment
through mobile rather than using the other technique. From point of view of JW Marriott Hotel
Shanghai, WeChat marketing strategy is essential for a business to pull the attention of a large
number of customers towards their products and services. In opposed to this, Bonetti Perry and
Fernie (2017) evaluated that JW Marriott Hotel Shanghai looking to grow and endorse itself
within Shanghai as it should aware about the growing and exciting app of mobile.

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Conclusion
From the above interpretation, it can be summarized that different theories are used by the
company to make social media planning. These theories are a long tail theory of social media
planning, Communication Theory of social media planning and Media Richness theory. It can be
also concluded that ‘WeChat’ marketing strategy has a positive impact on the organizational
performance of JW Marriott Hotel Shanghai. This strategy is beneficial to increase the
customer’s demand, revenues and profitability of company due to a large number of active users
in Shanghai.

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References
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