Social Media Marketing in Australian Automotive Industry - HI6008

This report, prepared for the HI6008 Business Research Project, provides a comprehensive literature review on the impact of social media marketing on the Australian automotive industry. The report begins with an introduction that highlights the increasing importance of social media in brand promotion within the automotive sector. It then delves into the methodology and reviews the relevant literature, exploring the understanding of social media marketing and its influence on the Australian automotive market. The review discusses the benefits and drawbacks of social media marketing, analyzes the future profitability of the automobile industry with social media usage, and concludes with a summary of the key findings. The report examines the shift from traditional marketing to digital platforms, the challenges and opportunities in the industry, and the evolving customer behavior in the digital age. It emphasizes the importance of adapting business models to leverage social media for effective marketing and customer engagement. The report also analyzes the profitability of the automobile industry in the future with social media usage, including consumer behavior, customer journey and the role of social media in customer engagement.

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BUSINESS RESEARCH
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Table of Contents
Introduction......................................................................................................................................3
Methodology....................................................................................................................................3
Literature Review............................................................................................................................4
Understanding Social Media Marketing and Its Impact on Australian Automotive Sector........4
Explanation of benefits and disadvantages of social-media marketing.......................................6
Analysing the profitability of automobile industry in future with social media usage...............7
Summary..........................................................................................................................................8
References........................................................................................................................................9

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Introduction
Social media is perceived as big revolution for contemporary world. In the era of
advanced technology and revolution, the limitless availability of Internet and devices with smart
technical expertise has facilitated business industry (Iankova et al. 2018). Car service industry
have conventionally depended on traditional mode of advertisements in order to promote their
brands. However, with ever-changing media setting shifting into social media, automobile
industry has attained great recognition for brand promotion. According to Kanagavalli and Devi
(2018), social media in the automobile sector is beyond simply magnetizing clienteles by placing
endorsements (Yeow, Soh and Hansen 2018). The automobile sector places entire-car buying
procedures over social media. The paper constitutes inclusive review of literature regarding role
and significance of social media in endorsing brands for Australian automobile industry.
Literature Review
Understanding Social Media Marketing and Its Impact on Australian Automotive
Sector
Globalization has generated a change in the marketing focus from product to corporate
products and brands. Establishing global brand has been understood as an aspiration of number
of automotive companies. Alalwan (2018) in his studies has found that challenges in successfully
maintaining authentic product discrepancy in the period of product simulated as well as
homogenization of products and amenities, which further added to advancement towards
corporate branding. Meanwhile, Hanelt et al. (2015) have opined that in the perspective of
automotive sector, as mobile digital technologies penetrate into customary context of physical

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mobility, they tend to bring challenges connected to customer difficulties while purchasing the
product. These demands however have been related to need for gathering information along with
environmentally liable mobility solutions and safety. Furthermore, they have mentioned the need
for automotive industry in Australia to reconsider and modify their business models to seek
accurate combination between factors dependent on the physical world of movement and further
transport components relying on digital world of advanced technology driven mobility.
Meanwhile, considering increasing demand of social media, Hanelt et al. (2015) have
observed that this type of marketing in social media facilitates automobile service industry to
react to general societal developments of buyers seeking to gather greater degree of information
for gaining more empowerment. Hanelt et al. (2015) have drawn insights from other scholars
who have noted that automobile service industry in Australia expand their business models by
linking their digital interactions with their customers such as during the process of product
enterprise. Anisimova (2016) in his study has postulated that Australian automobile industry has
been controlled by subsidiaries of novel equipment manufacturer (OEM) that have their origins
in countries like Japan and United States. Furthermore, by drawing relevance from formerly
conducted studies Anisimova (2016) has claimed that because of robust Australian economic
system, it has been highly challenging Australian automobile service industry to maintain
competitiveness in the international market. Furthermore, Bagga and Gupta (2014) have claimed
that assemblage plants did not have adequate scale in their automobile sector in Australia.
Likewise, Heinze et al. (2016) have claimed that for Australian car service industry, use of social
media would enable automobile marketers to shape as well as customize the types of information
and content, which have been posted based on clients’ choices. Hanelt et al. (2015) by drawing
relevance to formerly conducted researches have asserted that in recent times customers have

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been largely witnessed to show adequate loyalty and contentment if they view degree of
personalization.
Explanation of benefits and disadvantages of social-media marketing
In the academic domain, there has been given rise to essential question whether social
media marketing is operative tool for every business. Bagga and Gupta (2014) while conducting
their study on efficiency of social media marketing have mentioned that social media marketing
essentially focuses on amplified presence of online visibility and strong digital word of mouth.
Likewise, comprehensive studies of have asserted that social media marketing tactics has been
facilitating tactics for selective communication which can be highly effective for marketers
involved in automotive sector. Book has highlighted the value of social media as pivotal
channels for digital marketing. Furthermore, it has been posited that adoption of social media has
increased the demands similar to what has been seen in ‘dotcom’ publicity taken place during the
1990s. On the contrary, Kanagavalli and Devi (2018) have argued that social media marketing
strategies despite of its growing demand require constant scrutiny because of legal aspects.
Furthermore, the study has drawn insights from previous scholars and highlighted critical
areas, which has led to dissemination of false or inaccurate information regarding brands, thus
lessening the value of the brand (Iankova et al. 2018). Furthermore, it has been claimed that if
organizations run as small organization with clients positioned within short distance, the
revenues for social media marketing might not show any kind of effectiveness. Social media
marketing thus relates to formation of reputation and bringing individuals to company’s website.
Heinze et al. (2016) have drawn insights from former studies which assert that customer journey
depends on numerous factors which include market promotions, users’ comments and rapid word
of mouth communication. By drawing relevance to previous studies, Heinze et al. (2016) have

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been conclusive that digital and social media marketing actions serve vital role in the process of
initiation and advancing customers through entire journey of marketing. On the other hand,
Felix, Rauschnabel and Hinsch (2017) claimed that coinciding of marketing experience as well
as technical experience has been changing the idea of social media marketing. Felix,
Rauschnabel and Hinsch (2017) in the studies have highlighted that technology has been
recognized as primary tool for marketing however, by simply accepting it; the actual benefits of
social media marketing can be accomplished.
Analysing the profitability of automobile industry in future with social media usage
Bagga and Gupta (2014) in their studies have found consumers crosswise over business
industries have undergone five different stages as they go along the auto way to purchase as well
as advanced media undertake an essential part at each one stage. On the other hand, Bagga and
Gupta (2014) have drawn information from previous studies, which has examined viable social
networking methods such as corresponding with customers productively on diverse social
networking periods tend to drive them to acquire from their authorization. In addition to this,
Felix, Rauschnabel and Hinsch (2017) have claimed that extensively utilized social stage for
example, Facebook and Instagram has offered substitute of using social consideration. Such
social consideration has been recognized as avenues in which organizations provided client
supervision to their customers and dealers associated with utmost of the group, The research
further mentioned websites such as dealer.com, cars.com, dealerrater.com where automobile
companies’ assessment and reviews provided capacious thought to the customers to opt for the
correct option. Meanwhile, Yeow, Soh and Hansen (2018) have taken information from formerly
conducted studies and mentioned that substantial number of persons in reality used social media
as an advantage while seeking to choose other kind of automobile. Furthermore, Bagga and

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Gupta (2014) opined that social media served as effective tool to aid customers identify types of
models they would prefer and further similar dealerships to think regarding purchasing new
model. Such a method for acquiring as well as examining regarding the vehicle on social media
through examining surveys of other users tends to be effective to purchasers in comparison to
typical marketing driven by authorizations, dealerships and makers.
On the other hand, Barger, Peltier and Schultz (2016) have drawn insights from previous
studies which have examined the impact of automobile on online customer participation.
Research on automobile has significantly resulted to an increase in negative posts on social
media regarding the automobile model being recalled. Furthermore, it has been noted that across
32 automobile brands over five year timeline there has been witnessed an increase in advertising
and subsequent fall in online word of mouth, while they attentiveness that extensive research are
essential to determine if relationship is fundamental. Studies further evaluated that online
discussions hedonic products have profited from stimulating customers to recording unsolicited
viral marketing information to Facebook users sand offering small monetary benefits to convince
the receiver of trying and utilize the products. Likewise, Barger, Peltier and Schultz (2016) have
highlighted underlying factors behind ‘consumer brand sabotage’ which has further be explained
as deliberate method of hostile, unconstructive behaviour from customers’ end intended to harm
brand. Furthermore, studies have found that customers who consider lack of knowledge
especially while buying automobile services are highly motivated to share knowledge on social
media to indicate higher level of knowledge. By drawing insights from previous studies authors
have noted that in recent times, customers have shown less interest towards word of mouth than
on social media.

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Summary
Social media has been increasingly utilized as effective tool for conducting marketing
and promotion activities. Organizations in recent times have been spending substantially on
social media advertisements to promote brands. Marketing in social media eases automobile
service industry to respond to common social progresses of purchasers looking for collecting
greater degree of information for gaining more authorization. Social media marketing strategies
has been simplifying makeovers for careful communication, which can be extremely effective
for dealers involved in automotive sector.

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References
Alalwan, A.A., 2018. Investigating the impact of social media advertising features on customer
purchase intention. International Journal of Information Management, 42, pp.65-77.
Anisimova, T., 2016. The effects of corporate brand symbolism on consumer satisfaction and
loyalty: evidence from Australia. Asia Pacific Journal of Marketing and Logistics, 28(3), pp.481-
498.
Bagga, T. and Gupta, D., 2014. Internet marketing by automobile industry: Special reference of
Indian counterparts. International Journal of Computer Applications, 97(6).
Barger, V., Peltier, J.W. and Schultz, D.E., 2016. Social media and consumer engagement: a
review and research agenda. Journal of Research in Interactive Marketing, 10(4), pp.268-287.
Duffett, R.G., 2017. Influence of social media marketing communications on young consumers’
attitudes. Young Consumers, 18(1), pp.19-39.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
Hanelt, A., Piccinini, E., Gregory, R.W., Hildebrandt, B. and Kolbe, L.M., 2015, March. Digital
Transformation of Primarily Physical Industries-Exploring the Impact of Digital Trends on
Business Models of Automobile service industry. In Wirtschaftsinformatik (pp. 1313-1327).
Heinze, A., Fletcher, G., Rashid, T. and Cruz, A., 2016. Digital and social media marketing: a
results-driven approach. Routledge.

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Iankova, S., Davies, I., Archer-Brown, C., Marder, B. and Yau, A., 2018. A comparison of social
media marketing between B2B, B2C and mixed business models. Industrial Marketing
Management.
Kanagavalli, G. and Devi, R.S., 2018. FINANCIAL PERFORMANCE OF SELECTED
AUTOMOBILE COMPANIES. International Journal of Management (IJM), 9(4).
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Yeow, A., Soh, C. and Hansen, R., 2018. Aligning with new digital strategy: A dynamic
capabilities approach. The Journal of Strategic Information Systems, 27(1), pp.43-58.