DIM-SM

MA Marketing Communication

MODULE: 4MMC713
Direct Marketing and Social Media in the Digital Age
a) Critically evaluate social media as a method to drive acquisition.
b) Describe and critically evaluate the marketing communications campaigns for TWO products you have followed on social media, including the ways they have attempted to engage with you and encourage you to buy.

Submit Date: 6 October 2014
Module Leader: Carol Blackman
CHIEH-KO TSAI
REF: 147668681

Nowadays, social media has been developed as “Internet-based applications that created on the extremely advanced technological foundation of Web 2.0, and make users generate the several and creative content.” Besides, social media can be separated by several types, such as blogs, social news delivering, collaborative projects and comment communities. (Kaplan, A, & Haenlein, M 2010)
Furthermore, according to the Fretwell and Stine et al., 2013, the digital consumers count on the Internet-based information to search and purchase the product. Social media play the key role to spread a variety of product’s comment and advertisement news, because of non-limitation geographical restrictions and the zero-day news deliver. Based on the latest report in July, 2014, currently, Facebook has around five hundred million registers, and more than half of user (two and half million) log into their account every day. (Lee, E, Kim, Y, & Ahn, J 2014) More importantly, as number of
Facebook users increasing day by day; this social media platform has been seen as a great opportunity to advertise the product or service in the digital market. However, even Facebook has huge potential business opportunities; the target group is too vague to lock in, because some of accounts are created for child or pet. The brand can totally get benefit from fans that are around the world to advertise their product or service when fans spread the social context to each others. Furthermore, this social context would be the free promotion advertising for brand and lower company promotion cost. Yet, normally, back to the early time, company spend magnificent budget on public relationship, the ROI figure decreases and gets effective restrictions.
Due to the fact that people spend most of free time surfing on the internet, especially via social media, the buyer behaviour changing because that consumer

looking for what brand they interest in the internet and search someone’s comment rather than goes to the real store. When brand offers the sound goods information and better reputation in the social media, which means that consumer has large opportunity access and purchase. (Hajli, M 2014)
In other words, social media is the connecting bridge between brand and consumer in contemporary buyer behaviour. This phenomenon also shows that which brand can dominate the social media well then this brand grasping better opportunities to cause customer interests and turn into purchase.

Facebook, for instance, when users click “like” on any page or comment, what user do will also spread to other users, by doing this, the information will be spread broadly in the short time. More importantly, what the purpose for the social media is
“sharing”, people always share interesting campaigns or product comment to their friend. Once some special issues were pup up, Facebook is a great platform to share with friend at the first moment. However, if the campaigns or product is not good enough even worse, the bad reputation also spread around the world in the short time. Turn into another word, water is a boon in the desert, but the drowning man curses it. On the other hand, Twitter operates in totally different way comparing with Facebook. Twitter users are lees interaction than Facebook, they follow the prefer brand or organization and share to their friend. Yet, the difference between
Facebook and Twitter is that Twitter has word limited to post, by this way, information could be delivered more immediate and sample without extra decoration. (Li, T, Berens, G, & de Maertelaere, M 2013)

In the next paragraph, H&M and Nespresso will be shown as example to illustrate how social media (Facebook) connecting between customer and brand, also

changing the purchase behaviour.

According to the social media usage from the Mintel report in 2013 showed that most of younger users who between 16 to 24 ages, preferred used social media, for instance, Facebook, to looking for fashion trend, such as latest fashion news, and discount sales. Furthermore, sales promotion is the most valuable and attractive information for these followers. However, Twitter users seem not positively looking for discount sales, but pay more attention on comment and critical information.
(Mintel, 2013) H&M, one of the top ten selling fashion retailers in the UK and born by Swedish company. Besides, H&M locked the younger generation as a target group.
Surprisingly, H&M has around 20.5 million followers on the Facebook fans page and keep rising every day. This figure indicates that H&M did the attractive efforts to the potential consumer, even exiting costumer. What H&M attract people is that they post the well layout with simple words, by this way; people can read the content easier and comfortable. Furthermore, the H&M will not ignore the costumer question on the page, H&M online customer service team answer as detail as possible which means that they want to tie up with costumer and make them feel are respected. Secondly,
H&M utilizes the celebrities’ endorsement to create hot issue to fascinate public attention. For example, the world-known football player David Beckham and famous top model Miranda Kerr. H&M use celebrities’ visibility to convince customer after purchasing the product, they will be as fashionable as those celebrities.( Hennes &
Mauritz, A 2013) Moreover, even potential customer who are not H&M loyal fans, they will also start follow H&M updating news because of their idol’s endorsement.
Besides, H&M fans page is the perfect platform to look for product’s comment from customer who are from around the world. Everyone has free right to post their vision to the H&M, sometimes is the free idea for H&M to creative more inspiring

operational means to distinguish from others brand. As customer part, what they care about is the news of effectiveness and does H&M care about their opinion. For instance, H&M let online fans has a voting right to select what is the next fashion season trend, then in the annual fashion week, H&M shows the special edition from the highest vote from Facebook. In the fashion industry, how to keep offering the first hand information to the customer and adjust the operation way in the short are most critical things.( Cruz, J 2013) In short, social media indeed attract the public attention in the short time, yet, how to reflect to the real profit is another key issue to involve in.

Another good example to dominate the market by social media is Nespresso.
Nespresso is operated by Nestlé Group, and the whole new style coffee maker makes
Nespresso well-known around the world. So far although Nespresso only has 3 million fans on the Facebook page, Nespresso still working different delivery way to advertising their brand. First at all, Nespresso uses dark colour as their page’s decoration to make audience feel more elegant and high-class. Besides, Nespresso try to co-brand with several more luxury brand and sponsor, such as Victoria and
Albert museum and Rader golf cup. In their fans page, not only the latest product will be displayed, but also new trend of art and golf news. For example, Nespresso invited the well-known actor, George Clooney as the celebrity endorsement, and took several short commercial video to emphasize that using Nespresso coffee maker was not only for coffee, it’s a new and elegant life style. More interestingly, these series commercial videos are targeting the single female and Nespresso even holds the campaigns to invite the single female as the celebrity endorsement to share what is
Nespresso meaning for them and post on the fans page. Surprisingly, the feedback and comment are all positive, and more and more customer appears to share their own experience. This campaign successfully engages the customer to speak out what

they think about the Nespresso. (Matzler, K, Bailom, F, den Eichen, S, & Kohler, T
2013)
Another excellent integrated social media campaign example from Nespresso is called “The Nespresso Boutique in your pocket.” Nespresso lunched the smart phone application and combined with the social media (Facebook). Consumer can purchase the product in the app and even can post the comment then connecting with the
Facebook. More surprisingly, by doing way, both Nespresso and customer can have benefit from it. Nespresso can investigate which flavor is popular and customer can get the respond from the company directly. Furthermore, Nespresso invites member to vote which flavor can be created in the next season. All the final result will appear in the Facebook and pick the lucky one to win the free new testy Nespresso product.
This offering make customer participate the campaign more positively and enjoy.
(Nespresso, 2014)

In brief, based on the examples above, it is obvious to find out that social media play a key role between customer and brand. Social medial offers a great platform to make potential or existing customer have chances engage with the brand. Because of advanced data collection technology, Company can lock target audience more easily and offer attractive promotion which target group might interest in. So far, interaction with consumer in the social media is the main stream. Customer acquisition can’t only rely on short-term promotion, but focus on what consumer really need is the long-term strategy.

References:
Cruz, J 2013, 'H&M, a Master of Cheap Fashion, Moves Upscale ', Bloomberg
Businessweek, 4327, pp. 22-23, Business Source Complete, EBSCOhost, viewed 4
October 2014.

Fretwell, L., Stine, J., Sethi, H. and Noronha, A. 2013. Catch and Keep’ Digital
Shoppers How To Deliver Retail Their Way., Business Source Complete, EBSCOhost, viewed 1 October 2014.

H & M Hennes & Mauritz, A 2013, 'H & M Hennes & Mauritz AB: David
Beckham celebrates the launch of David Beckham Bodywear for H&M in
London ', Business Wire (English), February, Regional Business News, EBSCOhost, viewed 4 October 2014.

Hajli, M 2014, 'A study of the impact of social media on consumers ', International
Journal Of Market Research, 56, 3, pp. 387-404, Business Source Complete,
EBSCOhost, viewed 3 October 2014.

Kaplan, A, & Haenlein, M 2010, 'Users of the world, unite! The challenges and opportunities of Social Media ', Business Horizons, 53, 1, pp. 59-68, Business Source
Complete, EBSCOhost, viewed 2 October 2014.

Lauren, D 2012, '6 Ways to Acquire New Customers via Social Media ', Mashable.com,
29 March, NewsBank, EBSCOhost, viewed 3 October 2014.

Lee, E, Kim, Y, & Ahn, J 2014, 'How do people use Facebook features to manage social capital? ', Computers In Human Behavior, 36, pp. 440-445, CINAHL Complete,
EBSCOhost, viewed 2 October 2014.

Li, T, Berens, G, & de Maertelaere, M 2013, 'Corporate Twitter Channels: The Impact of Engagement and Informedness on Corporate Reputation ', International Journal Of
Electronic Commerce, 18, 2, pp. 97-126, Business Source Complete, EBSCOhost, viewed 3 October 2014.

Matzler, K, Bailom, F, den Eichen, S, & Kohler, T 2013, 'Business model innovation: coffee triumphs for Nespresso ', Journal Of Business Strategy, 34, 2, pp. 30-37,
Business Source Complete, EBSCOhost, viewed 4 October 2014.

Mintel Group Ltd. 2013. Clothing Retailing - UK - October 2013 - The ConsumerUse of Social Media for Fashion. , Business Source Complete, EBSCOhost, viewed 3
October 2014.

Nespresso. 2014. Nespresso. [online] Available at: https://www.facebook.com/nespresso?fref=ts, viewed 4 October 2014.

PR, N 2013, 'Responding To Nespresso Club Members, Favorite Limited Edition
Flavors Officially Added As Permanent Grand Cru Coffees ', PR Newswire US, 10 June,
Regional Business News, EBSCOhost, viewed 4 October 2014.

References: Cruz, J 2013, 'H&M, a Master of Cheap Fashion, Moves Upscale ', Bloomberg Businessweek, 4327, pp Fretwell, L., Stine, J., Sethi, H. and Noronha, A. 2013. Catch and Keep’ Digital Shoppers How To Deliver Retail Their Way., Business Source Complete, EBSCOhost, Mintel Group Ltd. 2013. Clothing Retailing - UK - October 2013 - The ConsumerUse of Social Media for Fashion. , Business Source Complete, EBSCOhost, viewed 3 October 2014. Nespresso. 2014. Nespresso. [online] Available at: https://www.facebook.com/nespresso?fref=ts, viewed 4 October 2014.