Social Media As An Effective Tool For Sales Promotion

In an era where technology prevails, entrepreneurs as well as marketers see the need to keep up with the fast pace of change or risk being outdated. Gone are the days when a pure-bricks business model will thrive well in current market scenario. It is practically impossible to design a marketing strategy without considering social networks. This study was carried out to examine the effectiveness of social media as a tool for sales promotion. The study made use of managers and employees of Guinness Breweries Plc, Lagos state as the respondents for the study. Social media had become really important gradient in today"s marketing mix in general and in promotion mix in particular. Adapting some form of marketing online through social media is a key node for all businesses, especially in an industry where trends constantly change such as fashion and handicrafts. The study reveals the effectiveness of social media as a marketing and sales promotion tool and shows the extent to which social media helps consumers in buying decision making. In addition, strategies have been suggested for maximizing the effectiveness. Various statistical tests have been applied to support the research hypothesis.

1.0 Introduction

1.1 Background of the Study

Social media has become an integral part of how organizations promote their goods and services to their target market. Social media has broadened the horizon, allowing organizations to advertise, communicate and receive feedback from their customers as well as reach out to new ones.

Kaplan and Haenlein (2010) refer to social media as a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user generated content. Furthermore, social media depends on mobile and web- based technologies to create highly interactive platforms through which individuals and communities share, co-create, discuss, and modify user-generated content. Kaplan and Haenlein (2010) explain that social media introduces substantial and pervasive changes to communication between organizations, communities, and individuals. They state further that social media is made up of a multimedia mix of personal words, pictures, videos and audios.

Social media has become a new and increasingly popular approach to advertising in recent times. Social media as an advertising tool helps the audience to not only become aware of products but engage with products on different levels. According to Jones (2010), consumers and organizations are increasingly using the web to discuss, share and collaborate. Though social media is an emerging trend in the advertising industry, it is important for professionals to understand and appreciate the role that the new medium plays within the industry.

Studies by Constantinides and Fountain (2008) found that social media is a new step in the development of the increasing use of the internet for advertising practices, allowing social media to become more interesting for the marketing activities of businesses. According to Howe (2006), social media can be used to increase traffic to corporate websites, disseminate significant information to customers, attract new customers, foster customer relationships and gain feedback from customers. These will provide organizations with some help in getting insight into the preferences and loyalty of buyers as well as to promote brand identity. Vance, et al (2009) explain that Social Media can be used at a relatively low cost and in periods of crises, yielding more benefits for organisations.
Social media differs from traditional or industrial media in many ways, including quality, reach, frequency, usability, immediacy, and permanence. There are many effects that stem from Internet usage. According to Nielsen (2012), Internet users continue to spend more time on social media sites than any other type of site. At the same time, the total time spent on social media in the U.S. across personal computers (PC) and mobile devices increased by 37 percent to 121 billion minutes in July 2012 compared to 88 billion minutes in July 2011. For content contributors, the benefits of participating in social media have gone beyond simply social sharing to building reputation and bringing in career opportunities and monetary income. Geocities, created in 1994, was one of the first social media sites. The concept was for users to create their own websites, characterized by one of six "cities" that were known for certain characteristics.

According to statistics from Wire (2010) social media and specifically, social networking sites (SNS) such as Facebook, Twitter, MySpace and LinkedIn, are popular online activities in terms of average time spent by people. Given the increasing use and popularity of these social media tools, it is important to study their role within the related field of advertising considering that little research has been done in this area especially within Nigeria. Companies are now paying more and more attention to social media as an aspect of their operational activities.
Arens (1999) defines advertising as a structured form of non-personal communication of information which is persuasive in nature about goods, services and ideas paid for by an identified sponsor. Kotler (2003) also defines advertising as any form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.

Advertising generally aims at promoting ideas, services, goods and products but most importantly, the advertisements (ads) are paid for by identifiable sponsors. Ads are promoted through many channels such as traditional media, outdoor media and the new media. Kotler (2003) explains that the basic objectives of advertising are to inform, persuade, remind or reinforce.

Advertising comes in various forms. According to Kaur (2008), there are several ways to advertise, including newspaper advertisements, ads on television, ads on websites, displaying banners on events, radio and billboards among others.

Internet usability is increasing rapidly and this has made it an attractive medium of advertisement for companies. Advertising on the internet can be referred to as online advertising. Though there are many forms of online advertising, advertising on social networks happens to be getting a lot of attention from organizations and businesses (Kaur, 2008, p29). According to Mangold & Faulds (2009) social media has caused significant changes in the strategies and tools used by companies for communication with clients.

Social media expanding usage is not surprising considering its potential for attracting the users and the general public. There is increasing evidence that social media has been used in other jurisdictions to target specific sections of the populace as part of advertising campaigns. In fact, it is not uncommon to find most industries in Nigeria using social media alongside other traditional methods of advertising. This study will access the role social media has indeed played within the Nigerian advertising industry. The purpose of this research is to examine the effectiveness of social media as a tool for sales promotion.

1.2 Statement of the Problem

The use of social media has become extremely popular in Nigeria. Social media allows users to combine the traditional print, radio and TV media, presenting them on one platform. Social media is a type of online media that expedites conversation as opposed to traditional media, which delivers content but doesn"t allow readers, viewers or listeners to participate in the creation or development of the content. Social media is of particular interest to businesses. Currently, businesses of all sizes are experimenting with social media marketing, grappling with the question of how to get in on what appears to be an especially viral way to get their message and their products to their target market.

Social media is a strategic tool for uncovering business insights. It manages the influencers who are driving the conversation around a particular brand. Social media is marketing that provides value and turns customers into evangelists. It is a critical component of customer care and it transforms the organization to meet the transparency and humanity customers now expect of brands.

Despite this increasing usage there is currently limited research on how social media is used in specific Nigerian industries. Thus the question still remains as to how exactly this medium has been employed in the developing world specifically Nigeria. To be sure, the current literature on social media discusses it mostly within the context of politics, individual interpersonal usage or within settings external to the Nigerian environment. This research fills an important gap in the literature by aiming to provide an insight to how social media is used for advertising in the Nigerian context.

1.3 Research Objectives

The main research objective is to examine the effectiveness of social media as a tool for sales promotion. The specific objectives are as follows:

To establish why organizations use social media for sales promotion and communications.

To determine how organizations use social media for sales promotion

and communications.

To ascertain consumer response to sales promotion messages on social media

1.4 Research Questions

In order to realise the objectives of the study, the following research questions were developed:

Why does organizations use social media for sales promotion and communications?

How does organizations use social media for sales promotion and communications?

How do consumers respond to social media sales promotion messages?

1.5 Hypothesis

HO1: Social media is not an effective tool for sales promotion

HA1: Social media is an effective tool for sales promotion

1.6 Significance of the Study

Social media reaches a wide population and its usage is fast growing in the Nigerian society. The advancement of social networking sites such as Facebook and twitter has provided organizations with a platform to communicate and interact with their target audience. Unfortunately, as mentioned in the problem statement, there is currently limited research on how social media is used in specific Nigerian industries as more organisations are catching up with social media trends.

Not only will this study provide new insight into how and why organisations use social media for advertising and communications purposes, but will also examine consumer response to social media advertising. According to Mabry (2010), the study of social media is important because consumers interact with these platforms differently than with traditional media. Adequate knowledge of these platforms will contribute to the limited research available and will provide researchers and organisations with the opportunity to understand the value of social media networks for advertising.

This study is significant as an emerging tool for reaching target audiences. Findings from this research will contribute to informing companies in Nigeria as to whether to use social media as a platform to advertise and promote their goods, services and ideas.

1.7 Definition of Terms

Social Media:

Are interactive technologies that allow the creation or sharing/exchange of information, ideas, career interests, and other forms of expression via virtual communities and networks.

Sales Promotion:

Is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales - it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions are aimed at consumers.

1.8 Organization of Study

The study comprises of 5 chapters. In chapter one, the concepts are introduced and the problem of the study is established with the research objectives and questions. Chapter two presents the literature review while chapter three presents the research methodology. The fourth chapter presents the results and discussion, and the last chapter presents the conclusion and recommendation.

5.0 Conclusion and Recommendation

5.1 Conclusion

In conclusion, business today is being transformed from a transactional relationship to a social relationship. It is now more critical than ever that successful businesses use Engagement Marketing principles to plan for successfully engaging their prospects and customers before, during and after their purchase cycle, and that the basis for this engagement is high-quality and relevant information. Information which are demanded by target market at a time and place of their choice (24/7 and 365 days/year). Marketer"s job is to provide this information in such a manner that you are viewed in a positive light, create a positive brand and product reputation, and are selected as their brand of choice. With the present growth and scale of social networking, we would even be able to buy products and services through the social medium. The medium is growing very fast and holds huge potential but is still in its nascent stage in India. Therefore, it is time for the companies to make effective strategies and execute them to win larger share of business through this revolutionary medium and become the innovative firm of coming future.
The advancement of social networking sites such as Facebook and twitter has provided organizations with platforms to communicate and interact with their target audience. Although Social media reaches a wide population and its usage is fast growing in the Nigerian society, not much research has been conducted on why and how social media is used for advertising in Nigerian industries. It is hopes that this research will provide some new insight into how and why organisations use social media for advertising and communications purposes as well as how consumers and target audiences respond them.

5.2 Recommendation

Social media channels have a remarkable ability to attract customers with very brief statements, and they can lead your prospects and customers to valuable content located on your website. On the other hand, your website can encourage visitors to engage with your company by prominently linking to your social media channels. In order to accomplish this goal the following steps may be followed,

Modify your website to complement your Social Media Strategy.

Identify the Actions you want your Customers and Prospects to take

Implement your Conversations

Provide the Content your Visitors Want.

Maintain a consistent Communication Style

Send Advertisements.

Use your Web Properties to drive people to take the actions you are targeting

In order to influence your prospects and customers, your sales effort must follow a process that captivates and transforms your prospects by implementing these steps, which must be integral part of Social Media Marketing strategy.

Develop the proper context of your message

Create an appropriate draw.

Create the proper content that engages

Provide a sample offering

Ensure you follow-up.

Request they share.

Preliminary Page(s)

Title Page

Declaration

Approval

Dedication

Acknowledgement

Abstract

Table of Content

Chapter One

1.0 Introduction

1.1 Background of the Study

1.2 Statement of the Problem

1.3 Research Objectives

1.4 Research Questions

1.5 Hypothesis

1.6 Significance of the Study

1.7 Definition of Terms

1.8 Organization of Study

Chapter Two

2.0 Literature Review

2.1 Social Media Definitions

2.2 Social Media as a Communication Tool

2.3 Benefits and Negatives of Social Media Utilization

2.4 Theoretical Framework

2.5 Related Studies

Chapter Three

3.0 Methodology

3.1 Research Design

3.2 Area of Study

3.3 Population of the Study

3.4 Instrumentation

3.5 Administration of Instrument

3.6 Method of Data Analysis

Chapter Four

4.0 Results and Discussion

4.1 Results

Chapter Five

5.0 Conclusion and Recommendation

5.1 Conclusion

5.2 Recommendation

References

Appendix

• Role Of Social Media In Shaping Public Opinion
• Influence Of The Electronic Media On Childrens Socialization
• Effectiveness Of Social Media As A Tool For Political Mobilization
• Impact Of Social Media On Political Education Of College Of Education Student
• Influence Of Social Media On The Lifestyle Of Students
• Impact Of Social Media Trends On The Behavioral Pattern Of Youths
• Social Media Influencers Effectiveness And Impact On Consumer Brand Preference Among Undergraduates

• Mass Communication Project Topics and Materials