A Comprehensive Comparison of Social Media Marketing and Word of Mouth

This report provides a comprehensive comparison between social media marketing and traditional word-of-mouth marketing. It investigates the impact of social media marketing on persuasive strategies, examines the influence of word-of-mouth marketing, and contrasts the two approaches to det...Read More

Comparison of social media marketing with traditional word of mouth marketing
Name of the student
Name of the university
Author note

Table of contents
1. Introduction..................................................................................................................................3
1.1. Problem Statement................................................................................................................3
1.2.Research Aim and Objectives................................................................................................4
1.3.Research questions.................................................................................................................4
1.4.Research Justification and Potential Outputs........................................................................5
2.The Conceptual Framework and hypothesis development...........................................................6
2.0 Significance of social media marketing.................................................................................6
2.1 Concept of traditional word of mouth marketing..................................................................6
2.2 Interrelationship between social media marketing and word of mouth marketing...............7
2.3 Difference between social media marketing and traditional marketing................................7
2.4 Social media marketing and its impact on enhancing business profitability.........................8
2.5 Conceptual framework.........................................................................................................10
3.Methodology...............................................................................................................................11
3.1Research philosophy.............................................................................................................11
3.2Research Approach...............................................................................................................11
3.3Research design....................................................................................................................11
3.4Data collection method.........................................................................................................12
4.Research Project Organisation, Budget and Schedule................................................................12
4.1Reserach project organization...............................................................................................12

4.2Budget...................................................................................................................................12
4.3Schedule................................................................................................................................13
4.4Gantt Chart............................................................................................................................15
References......................................................................................................................................16

1. Introduction
1.1. Problem Statement
The diverse range of marketing operations that are undertaken by the organizations assist
the same in developing the potentials of the same while operating in different markets. Stephen
(2016) stated that the different mediums that are utilized by the organizations for enhancing the
rate of collaborations assisted the ventures in developing the potentials of the same while
operating in the different markets. The transition from the traditional word of mouth marketing
to the social media marketing assisted the ventures in enhancing the potentials of attracting the
attention of vivid range of customers.
However, there are different cost related factors that might challenge the potentials of the
venture while operating in different markets. Barreto (2014) stated that the costs that might be
incurred by the organizations has challenged the same in developing the potential while
marketing and positioning their offerings in adherence to the demand of the customers. The
enhanced rate of operations of the venture assists the same in improving the efficiency of the
operations in adherence to the demand of the customers. The research will aim at delineating the
difference between the traditional word of mouth and social media marketing and promotions.
The different modifications in the organizational processes are reliant on the
effectiveness of the marketing approach and the strategies that are considered by the ventures.
The marketing strategies are created with the objective of attracting the attention of the target
customers. The social media marketing assists an organization in enhancing the rate of
persuasiveness while adhering to the technological innovations. On the contrary, word of mouth
marketing through grapevine communication might affect the brand image of the ventures

through misinterpretation of the marketing message. The development of organizational social
media marketing potentials would assist the same in developing and expanding the awareness
among the customers based on the range of product offerings (Pfeffer, Zorbach & Carley,
2014). On the other hand, word of mouth marketing tainted the brand image of the ventures
while operating in the different markets due to lack of well figured ideas and misinterpretation of
the message. Therefore, the research will aim at developing a coherent argumentation for
comparing and contrasting the effectiveness of social media marketing over the traditional word
of mouth marketing.
1.2.Research Aim and Objectives
The aim of undertaking the research is to compare and contrast the effectiveness of social media
marketing over the traditional word of mouth marketing.
The objectives for undertaking the research are:
 To understand the impact of social media marketing on the persuasive strategies of the
organizations
 To examine the influence of word of mouth marketing on the persuasive capabilities of
the organizations
 To compare and contrast social media marketing and word of mouth marketing to
determine the most persuasive marketing media
 To suggest recommended activities to the organizations for developing the marketing
related potentials of the same

1.3.Research questions
The research questions will be:
 What is the impact of social media marketing on the persuasive strategies of the
organizations?
 How might word of mouth marketing influence the persuasive capabilities of the
organizations?
 How is social media marketing different from word of mouth marketing and which is the
most persuasive marketing media?
 What are the recommended activities that might be considered by organizations for
developing the marketing related potentials?
1.4.Research Justification and Potential Outputs
The research will aim at identifying the effectiveness of the social media marketing
strategies of an organization whole enhancing the persuasiveness of the same while operating in
different markets. The justification of the research study is reliant on the understanding of the
effectiveness of the marketing operations through the utilization of the social media platforms for
maximizing the reach of marketing operations (Eisingerich et al., 2015). On the other hand, the
research will also enumerate the different factors relating to the effective utilization of the
marketing media strategies with the aim of developing the efficiency of the operations.
The potential outputs of the research will be reliant on making the future researchers
aware of the differences between the social media and word of mouth marketing. The
appropriate delineation of the differences in the marketing strategies would assist the researchers
in developing suitable research on the efficient strategies that might be applied by the
organizations and the manner in which it would assist in improving their productivity. On the

other hand, the research will also develop suitable means of reporting on the different marketing
initiatives that are undertaken by the organizations whit the aim of developing the operations of
the same. The research will assist in improving the efficiency of future marketing operations that
are planned by the organizations through the comparison of social media and word of mouth
marketing contexts.
2.The Conceptual Framework and hypothesis development
2.0 Significance of social media marketing
Social media has become one of the important contributors in the marketing field. In the
globalized business environment, changing consumption trends of the customers had brought
huge impact on the marketing process. In the words of Hudson et al., (2015), providing the
incredible benefits to the customers, social media makes an important contribution towards
sharing the mission and values of the company. Social media is being considered as an important
digital platform in which the business visibility as well as increasing attention can be grabbed.
As stated by Godey et al., (2016), near about 91% marketers believe that improving the brand
awareness, the social media plays an effective role. It is also true that social media marketing is
also being considered as the important marketing tools that not only helps to maintain the cost
effectiveness, but also it helps to manage the customer engagement in the growth process of the
company.
2.1 Concept of traditional word of mouth marketing
The term word of mouth also being called as the word of mouth advertising. In the era of social
media, word of mouth is being considered as the traditional version of the marketing (Kim, Lim
& Brymer, 2015). The transition from the traditional word of mouth marketing to the social
media marketing assisted the ventures in enhancing the potentials of attracting the attention of

vivid range of customers. Word of mouth is being considered as the trustable platform that plays
an effective role for developing the strong relationship with the customers (Hudson et al., 2016).
Developing the deeper relationship with the customers, the Word of mouth marketing helps to
make the profitable transaction as well as longer professional relationship.
2.2 Interrelationship between social media marketing and word of mouth marketing
Publicity is being considered as one of the important components in marketing effort. It cannot
be denied that in the initial stage, large numbers of organizations have followed the Word of
mouth marketing strategy for gaining the strong publicity (Wang & Kim, 2017). However, after
the arrival of digital media, new generation in marketing has been introduced. After the
introduction of marketing media, not only the speed of business has been increased, but also it
has generated the strong customer relationship in the organization. It is true that sales promotion
and advertisements are still making the important contribution towards the business growth
however, due to changing needs and demands of the customers the media platforms have got
changed. Few years back the Word of mouth marketing was the best way for dragging the
attention of the customers towards the product or services introduced by the companies.
However, in the current scenario, in the digital era, mobile and internet have become the
important marketing mediums. Although the changes in media platforms, the significance of
word of mouth cannot be denied (Levy & Gvili, 2015). In this situation, rather than following the
traditional Word of mouth marketing practices, the word of mouth is being accelerated through
different digital media platforms. In that case, it can be said that in the current business scenario,
ensuring the positive growth in the company, both the social media and word of mouth
marketing practices have brought the significant impact in case of generating the high revenue.

2.3 Difference between social media marketing and traditional marketing
Social media marketing is also considered as an inbound marketing, due to its notion for
attracting the uses through the website by providing entertainment information values and special
offers (Leung, Bai & Stahura, 2015). In case of inbound marketing Search Engine Optimisation
blogs social networks at being included. It is also true that email marketing is also included into
the social media marketing process. On the other hand in case of outbound or traditional
marketing Radio, TV, magazines, newspapers and print advertising are being included. In order
to develop the strong customer believe the social media is being considered as a powerful
medium. In order to support the product or services introduced by the companies the social
networks in hands the attitudes lifestyle and values of individuals which indirectly influence the
decision making abilities of them. the most interesting thing in social media marketing as in such
cases customers generally belief the reviews which are being posted by the strangers and based
on the reviews provided in the social media the decision making process of the customers get
influenced (Levy & Gvili, 2015). On the other hand the trick of word of mouth marketing relies
on providing great customer experiences by solving the real problem of the customers. In that
case, it is true that the traditional word of mouth marketing most transparent and the social media
platforms.
2.4 Social media marketing and its impact on enhancing business profitability
With advanced and globalised technological development it has become very important for the
marketing landscape to bring multicultural Marketing strategies. The World Wide Web and
internet have become that important components in today's marketing field. With the increasing
popularity of Internet it has brought huge impact on transforming the modern technology through
the social networking sites. It is also true that due to advancement as well as popularity of social

media the tremendous impact on the marketing channels of the companies has overlapped the
traditional marketing channels (Kim, Lim & Brymer, 2015). Based on the popularity of the
particular product or services in the virtual media the purchasing decision of the people our
changing. In the current business scenario social media has become an effective tool for
developing the communication between the organisation and the customers. In order to introduce
the multinational marketing strategies, social media is playing an important role. It cannot be
denied that in order to ensure positive customer relationship management as well as huge
revenue and the company marketing generation through the social media platforms has become
important.
Electronic word of mouth is being considered as the first strategy which has influence the social
media marketing practices (Kim, Lim & Brymer, 2015). In the current business scenario it
features the automatic broadcast notification as well as personalized invitations are being spreads
for increasing the product awareness. It has been considered as the most powerful as well as
influential form of advertising that passes the information from one person to another. It is also
true that some of the cases the good information are being propagated by the word of mouth.
Analysing the impact of social media it has been identified that creating the exponential growth
the marketing messages through the media platform can influence the purchasing decisions of
the customers. Based on the social media platforms it becomes easier for the companies to
understand the opinion attitudes as well as reactions of the customers towards the business.
The diverse range of marketing operations that are undertaken by the organizations assist the
same in developing the potentials of the same while operating in different markets. Stephen
(2016) stated that the different mediums that are utilized by the organizations for enhancing the
rate of collaborations assisted the ventures in developing the potentials of the same while

operating in the different markets. Social media marketing practices also play an important role
in case of providing the information and content to the nice communities by sharing the interest
about the brand and product. In order to develop the emotional connection between the uses and
brand the individuals use of social networks can bring the important contribution. In case of
developing customers trust and beliefs the social media platforms can be considered at
tremendous powerful marketing tool (Hudson et al., 2016).
In case of promoting the brands and increasing the sales revenue by ensuring the community
engagement in the digital era, social media is being considered as one of the important marketing
tools. Analysing the influence of social media in marketing it can be say that in order to develop
brand equity customers relationship management and value equity social media contributions
cannot be ignored. It is true that due to increasing technological opportunities in the market
young generation has become highly fond of different social networking sites like Facebook and
Instagram (Hudson et al., 2016). In that case with the effective contribution of social media
platforms not only the brand value increases but it plays an important role for ensuring the long-
term sustainability of the company in the competitive environment.

Modern Word of Mouth MarketingSocial media marketing
Brand Equity
Strong customer relationship management
Organizational profitability
2.5 Conceptual framework
Figure: Conceptual framework on social media marketing activities
(Created by author)
3.Methodology
3.1Research philosophy
The research will be undertaken through the utilization of the interpretivism philosophy
which will assist in demonstrating the different factors relating to the experiences and
recognition of human beings. The different aspects of social media marketing and word of mouth
marketing would be analysed through the effects of the same on the customers and the manner in
which the marketing operations might influence the persuasiveness of the campaigns (Choy,
2014). The utilization of the philosophy would assist in improving the quality of the study
through the enumeration of different changes in the marketing methods that are undertaken by
the organizations.

3.2Research Approach
The research will be conducted through the implementation of the deductive approach
which will assist in improving the quality of the study through deducing data points from
reviewing different online publications and available sources. The deductive approach will assist
in developing the study through reviewing different available sources of information. The
information for the research will assist in developing the study through the enumeration of
different contexts related to social media marketing and word of mouth campaigns.
3.3Research design
The research will be undertaken through the application of the descriptive research
design which will assist in developing the study through exploration and definition of the issues
and problems related to the social media marketing and the word of mouth marketing in an
organization. It will assist in assessing the pros and cons of a research through the enumeration
of different favourable concepts that would enrich the cognition of persuasiveness created by the
same (Redman-MacLaren, Mills & Tommbe, 2014). It would also assist in developing suitable
understanding of the needs of the research relating to the definition of the efficiency of the
marketing strategies that are being considered by the organizations.
3.4Data collection method
The research will be undertaken through the application of Secondary data collection
methodology which will assist in evaluating different available secondary sources like books,
peer reviewed journals, blogs and company reports. The enumeration of the different sources of
literature would assist in developing a suitable understanding of the role played by the social
media platforms and the word of mouth and the manner in which both influences the rate of
persuasiveness in adherence to the needs of the organizations.

4.Research Project Organisation, Budget and Schedule
4.1Reserach project organization
The research will be conducted through a secondary evaluation of the different articles,
journals and company reports relating to the social media marketing and word of mouth
marketing. The analysis of the research will be conducted through a thematic assessment of the
literature that is being gathered during the process. The different mechanisms will be delineated
in the methodology of the study which will be concluded by the findings and analysis of the
proposed research study.
4.2Budget
Tasks Costs that will be incurred
Library access and purchase of peer reviewed
journals
$150
Internet access $ 200
Photocopy and miscellaneous $50
Total costs $400
4.3Schedule
Task Name Duration Start Finish
Topic selection 5 days Mon 6/3/19 Fri 6/7/19
Identify suitable topics for
research 2 days Mon 6/3/19 Tue 6/4/19
confirm with lecturer 2 days Wed 6/5/19 Thu 6/6/19
finalizing topic 1 day Fri 6/7/19 Fri 6/7/19
Milestone 1: topic selected 0 days Fri 6/7/19 Fri 6/7/19
Secondary data collection 8 days Mon 6/10/19 Wed 6/19/19
Search for web articles and
peer reviewed journals 5 days Mon 6/10/19 Fri 6/14/19

Selection of significant
sources 2 days Mon 6/17/19 Tue 6/18/19
Designing the research
layout 1 day Wed 6/19/19 Wed 6/19/19
Milestone 2: Secondary data
collected 0 days Wed 6/19/19 Wed 6/19/19
Literature review 15 days Thu 6/20/19 Wed 7/10/19
Critical evaluation of
collected data 6 days Thu 6/20/19 Thu 6/27/19
annotated bibliography 4 days Fri 6/28/19 Wed 7/3/19
Literature review
formation 5 days Thu 7/4/19 Wed 7/10/19
Milestone 3: Literature
review completed 0 days Wed 7/10/19 Wed 7/10/19
Research methodology and
Analysis 11 days Thu 7/11/19 Thu 7/25/19
Identification of research
techniques 5 days Thu 7/11/19 Wed 7/17/19
validity and reliability
study 6 days Thu 7/18/19 Thu 7/25/19
Milestone 4: Research
methods selected 0 days Thu 7/25/19 Thu 7/25/19
Data collection and
analysis from Secondary
sources
9 days Fri 7/26/19 Wed 8/7/19
Gather data from different
secondary sources 5 days Fri 7/26/19 Thu 8/1/19
Data analysis using themes 4 days Fri 8/2/19 Wed 8/7/19
Milestone 5: Secondary data
analysed 0 days Wed 8/7/19 Wed 8/7/19
Conclusion of the Study 18 days Thu 8/8/19 Mon 9/2/19
rough draft formation 5 days Thu 8/8/19 Wed 8/14/19
Discuss with professor 6 days Thu 8/15/19 Thu 8/22/19
make amendments and
submit 7 days Fri 8/23/19 Mon 9/2/19
Milestone 5: Project
concluded 0 days Mon 9/2/19 Mon 9/2/19

4.4Gantt Chart

References
Barreto, A. M. (2014). The word-of-mouth phenomenon in the social media era. International
Journal of Market Research, 56(5), 631-654.
Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), 99-104.
Eisingerich, A. B., Chun, H. H., Liu, Y., Jia, H. M., & Bell, S. J. (2015). Why recommend a
brand face‐to‐face but not on Facebook? How word‐of‐mouth on online social sites
differs from traditional word‐of‐mouth. Journal of Consumer Psychology, 25(1), 120-
128.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016).
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), 5833-5841.
Hudson, S., Huang, L., Roth, M. S., & Madden, T. J. (2016). The influence of social media
interactions on consumer–brand relationships: A three-country study of brand perceptions
and marketing behaviors. International Journal of Research in Marketing, 33(1), 27-41.
Hudson, S., Roth, M. S., Madden, T. J., & Hudson, R. (2015). The effects of social media on
emotions, brand relationship quality, and word of mouth: An empirical study of music
festival attendees. Tourism Management, 47, 68-76.

Kim, W. G., Lim, H., & Brymer, R. A. (2015). The effectiveness of managing social media on
hotel performance. International Journal of Hospitality Management, 44, 165-171.
Leung, X. Y., Bai, B., & Stahura, K. A. (2015). The marketing effectiveness of social media in
the hotel industry: A comparison of Facebook and Twitter. Journal of Hospitality &
Tourism Research, 39(2), 147-169.
Levy, S., & Gvili, Y. (2015). How Credible is E-Word of Mouth Across Digital-Marketing
Channels?: The Roles of Social Capital, Information Richness, and Interactivity. Journal
of Advertising Research, 55(1), 95-109.
Pfeffer, J., Zorbach, T., & Carley, K. M. (2014). Understanding online firestorms: Negative
word-of-mouth dynamics in social media networks. Journal of Marketing
Communications, 20(1-2), 117-128.
Redman-MacLaren, M., Mills, J., & Tommbe, R. (2014). Interpretive focus groups: a
participatory method for interpreting and extending secondary analysis of qualitative
data. Global health action, 7(1), 25214.
Stephen, A. T. (2016). The role of digital and social media marketing in consumer
behavior. Current Opinion in Psychology, 10, 17-21.
Wang, Z., & Kim, H. G. (2017). Can social media marketing improve customer relationship
capabilities and firm performance? Dynamic capability perspective. Journal of
Interactive Marketing, 39, 15-26.