Summer Training Report

ON

“Role of social media marketing in

consumer buying preferences with
special reference to Amazon”

Towards partial fulfillment of

Bachelor of Business Administration (BBA)

Submitted To: Submitted by:

Mr. Shiraz Khan Gaurav Rathore
BBA 3 Year
Roll No.1807985071008
Batch: 2018-21

INTERNET INSTITUTE FOR SPECIAL EDUCATION,

LUCKNOW

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 DECLARATION

I certified that this report is prepared based on the project undertaken by me in ‘Role of

social media marketing in consumer buying preferences with special reference to

Amazon’ under the guidance of assistant professor in partial fulfillment of the requirement

for the award of degree of Bachelor of Business Administration from Internet Institute

For Special Education, Lucknow, Uttar Pradesh. The work submitted by me in partial

fulfillment of the requirement for the award of degree in this report is of my own, it has not

previously been presented for another assessment. I declare that this report is my original

work. Wherever work from other sources has been used, all debts (for words data, argument,

and ideas) have been appropriately acknowledged and referenced in accordance with the

requirements of regulations and guidelines.

Student’s Sign:

Date:

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 ACKNOWLEDGEMENT

I take this opportunity to express our sincere gratitude to all those who helped us in various

capacities in undertaking this report and devising the report.

I am privileged to express my sense of gratitude to my respected Assistant professor Ms.

Saliha Anjum whose unparalleled knowledge, moral fiber and judgment along with her

know-how, was an immense support in completing the report.

I shall be indebted to Mr. Manoj Saxena (Head of Management Department) for the concern

in providing necessary information during making of this Summer Training Report.

I feel pleasure and pride of being part of management studies, International Institute for

Special Education, Lucknow that moulded me to this present state and I feel gratitude

towards.

I take this opportunity also to thank my friends and contemporaries for their co-operation and

compliance.

Gaurav Rathore

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 Table of Contents

S.No. Contents Page No.

1.) INTRODUCTION 5

2.) INDUSTRY PROFILE

3.) COMPANY PROFILE

4.) SCOPE AND PERIOD OF STUDY

5.) OBJECTIVES OF THE STUDY

6.) RESEARCH METHODOLOGY

7.) LIMITATIONS

8.) DATA ANALYSIS & INTERPRETATION

9.) FINDINGS

10.) RECOMMENDATIONS

11.) CONCLUSION

12.) BIBLIOGRAPHY

13.) ANNEXURE

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 INTRODUCTION
People were communicating with other people without a language in olden days. There is a

massive change in the method of communication in modern days. Social Media have become

a convenient way to communicate among all age clusters. The Internet and particularly social

media have modified the shoppers and marketers communicating medium. The Internet has

characteristics such as - the power to inexpensively store huge amounts of data at different

locations - the powerful search engines, organizing and disseminating of data - the power to

function a physical distribution medium as software - relatively low prices. With the help of

net and the presence of various social media sites it is now possible for business people to

meet worldwide customers at single click of the button. Thanks to the internet technology,

which helps the consumer to search the product on the web, view the review and ranking of

existing customers for the product before he purchased the product. Consumers use the

technology now a days too much as computer is used by many consumers so use of online

marketing. Consumer purchase decision is influenced by social media through group

communication. The web platform is a new method for developing the business. Social media

modifies the communication methods between sellers and buyers. E commerce influences the

consumer in their purchase decision. Communication through social media is a new platform

to exchange information about product and services. The analysis of consumer behavior is the

core activity for selling product and service since most consumers are using the internet and

on-line social media tools. Social media become an important media to introduce and market

products and also to do surveys. Nowadays Social media is an important marketing tool for

promotional activities. Hence it becomes necessary to perceive how Social media is affecting

consumer behavior.

Social media is hot. Social Media is now the trend. And for businesses it represents a

marketing opportunity that transcends the traditional middleman and connects companies

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directly with customers. This is why nearly every business on the planet—from giants like

Starbucks and IBM to the local ice cream shop—are exploring social media marketing

initiatives. A year ago, businesses were uncertain about social media. Now it's here to stay

and companies are rapidly adopting social media marketing. Much like email and websites

first empowered businesses, social media is the next marketing wave. Social media marketing

is marketing using online communities, social networks, blog marketing and more. It's the

latest "buzz" in marketing. India is probably among the first proponents of social media

marketing. These days, the organizational cause has replaced the social cause as companies

seek to engage with their audience via the online platforms. The explosion of social media

phenomenon is as mind boggling as that and the pace at which it is growing is maddening.

Trust and goodwill are the basis of social networking, and by marketing in the realm of social

media these fundamental notions need to be adhered. It is probably the only marketing

platform that encourages fool proof communication and accountability among sellers as well

as consumers. Global companies have recognized Social Media Marketing as a potential

marketing platform, utilized them with innovations to power their advertising campaign with

social media marketing.

The rise of online social networking sites:

According to Wikipedia report, there are three hundred and more Social Networking Sites

and 150 crore members all over the world (www.en.wikipedia.org). At the basic level social

network is a web community where people move through profiles that represent themselves

to others. The important reason for today’s people to browse these sites is because of the

emergence of Social Networking Sites major paradigms shift that has taken place among the

millions of people. The Social Networking Sites able to realize friends simply and form

teams accruing to the interest, business, etc. It is very straightforward to transfer photos, share

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views on culture, cinema, sports, education and day- to-day events and happenings. Social

Networking Sites is reuniting old friends and helps to continue the broken bonds. Through

Social Networking Sites knowledge grows in cultural, social and economic aspects. The

ultimate reason for the ascension of Social Networking Sites is, because of its user

friendliness. Anybody can have an account and relate with anyone. Most of the content

shared in Social Networking Sites is personal details, photos, interest etc. Social Networking

Sites are still terribly a lot of its early stage but contains many software applications which

are used worldwide, when it attains maturity stage, new applications will come into existence.

Social media concentrates on relationship with the users by way of sharing of information

and interest among users. There are numerous Social Networking Sites present across the

world, ranging from Facebook, MySpace, Orkut, and Cyworld to LinkedIn Among the

rapidly growing list of Social Networking Sites, Facebook is the global leader, catering to

concerning 300 million registered users around the world.

The term Social Media Marketing consists of two terms “Social Media” & “Marketing”.

Social Media:

Social media are interactive digitally-mediated technologies that facilitate the creation or

sharing/exchange of information, ideas, career interests, and other forms of expression via

virtual communities and networks. While challenges to the definition of social media arise

due to the broad variety of stand-alone and built-in social-media services currently available,

there are some common features:

1. Social media are interactive Web 2.0 Internet-based applications.

2. User-generated content—such as text posts or comments, digital photos or videos, and

data generated through all online interactions—is the lifeblood of social media.

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 3. Users create service-specific profiles for the website or app that are designed and

maintained by the social-media organization.

4. Social media facilitate the development of online social networks by connecting a user's

profile with those of other individuals or groups.

Users usually access social media services via web-based apps on desktops and laptops, or

download services that offer social media functionality to their mobile devices (e.g.,

smartphones and tablets). As users engage with these electronic services, they create highly

interactive platforms through which individuals, communities, and organizations can share,

co-create, discuss, participate, and modify user-generated content or self-curated content

posted online. Additionally, social media are used to document memories; learn about and

explore things; advertise oneself; and form friendships along with the growth of ideas from

the creation of blogs, podcasts, videos, and gaming sites. This changing relationship between

human and technology is the focus of the emerging field of technoself studies.

Some of the most popular social media websites, with over 100 million registered users,

include Facebook (and its associated Facebook Messenger), TikTok, WeChat, Instagram,

QZone, Twitter, Tumblr, and LinkedIn. Depending on interpretation, other popular platforms

that are sometimes referred to as social media services include YouTube, QQ, Quora,

Telegram, WhatsApp, LINE, Snapchat, Pinterest, Viber, Reddit, Discord, VK, Microsoft

Teams, and more. Wikis are examples of collaborative content creation.

Social media outlets differ from traditional media (e.g., print magazines and newspapers, and

TV and radio broadcasting) in many ways, including quality, reach, frequency, usability,

immediacy, and permanence. Additionally, social media outlets operate in a dialogic

transmission system (i.e., many sources to many receivers), while traditional media outlets

operate under a mono logic transmission model (one source to many receivers). For example,

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a newspaper is delivered to many subscribers and a radio station broadcasts the same

programs to an entire city.

Observers have noted a wide range of positive and negative impacts of social media use.

Social media can help to improve an individual's sense of connectedness with real or online

communities and can be an effective communication (or marketing) tool for corporations,

entrepreneurs, non-profit organizations, advocacy groups, political parties, and governments.

Social media may have roots in the 1840s introduction of the telegraph, which

connected the United State.

Types of Social Media

There are many different types of social media, and many services could t into multiple

categories. Here are a few of the major types, along with some examples.

Social Networks

Social networks specialize in connecting and exchanging thoughts, ideas, and content with

other users—often with users who share tastes and interests. Facebook and Twitter are

examples of social networks. Though more professional than others, LinkedIn may be

considered a social network, as well.

Media Networks

As opposed to social networks, which specialize in letting users share and exchange raw

thoughts and ideas, media networks specialize in distributing content like photographs and

videos. Instagram and YouTube are examples of this. A YouTube user, for example, will

upload a video they've created, and other users can "like," "dislike," or comment on the video.

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If they enjoy the video enough, a user may choose to "subscribe" to the creator, so that new

videos from that creator appear in their feed.

Discussion Networks

Discussion networks like Reddit are the ideal outlet for posts that can spark in-depth

discussion among users. Users can leave detailed responses in the comment section, and other

users can respond directly to those comments, allowing for conversations to grow and

develop organically.

Review Networks

Review networks like Yelp and TripAdvisor add social media aspects to user reviews of

products and services. Users can interact directly with those leaving reviews, as can the

businesses being reviewed.

Businesses and Social Media

While any individual can sign up for social media, social media platforms have become an

important part of marketing for businesses of all sizes. The key to successful social media is

to not treat it like an extra appendage but to treat it with the same care, respect, and attention

you do all of your marketing efforts. Here are some things businesses should keep in mind

while using social media.

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Marketing:

Marketing refers to activities a company undertakes to promote the buying or selling of a

product or service.

In 2017, The New York Times described it as "the art of telling stories so enthralling that

people lose track of their wallets.

It is one of the primary components of business management and commerce. Marketers can

direct their product to other businesses (B2B marketing) or directly to consumers (B2C

marketing). Regardless of who is being marketed to, several factors apply, including the

perspective the marketers will use. Known as market orientations, they determine how

marketers will approach the planning stage of marketing. The marketing mix, which outlines

the specifics of the product and how it will be sold, is affected by the environment

surrounding the product, the results of marketing research and market research, and the

characteristics of the product's target market. Once these factors are determined, marketers

must then decide what methods will be used to promote the product, including use of coupons

and other price inducements.

The term marketing, what is commonly known as attracting customers, incorporates

knowledge gained by studying the management of exchange relationships and is the business

process of identifying, anticipating and satisfying customers' needs and wants.

Definitions of Marketing:

Marketing is defined by the American Marketing Association as "the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large". The term

developed from the original meaning which referred literally to going to market with goods

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for sale. From a sales process engineering perspective, marketing is "a set of processes that

are interconnected and interdependent with other functions of a business aimed at

achieving customer interest and satisfaction".

Philip Kotler defined marketing as "Satisfying needs and wants through an exchange

process" and a decade later defines it as "a social and managerial process by which

individuals and groups obtain what they want and need through creating, offering and

exchanging products of value with others"

In the past, marketing practice tended to be seen as a creative industry, which included

advertising, distribution and selling. However, because the academic study of marketing

makes extensive use of social sciences, psychology, sociology, mathematics, economics,

anthropology and neuroscience, the profession is now widely recognized as a science,

allowing numerous universities to offer Master of-Science (MSc) programs.

The process of marketing is that of bringing a product to market, which includes these steps:

broad market research; market targeting and market segmentation; determining distribution,

pricing and promotion strategies; developing a communications strategy; budgeting; and

visioning long-term market development goals. Many parts of the marketing process (e.g.

product design, art director, brand management, advertising, inbound marketing, copywriting

etc.) involve use of the creative arts.

Concept of Marketing:

The 'marketing concept' proposes that to complete its organizational objectives, an

organization should anticipate the needs and wants of potential consumers and satisfy them

more effectively than its competitors. This concept originated from Adam Smith's book The

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Wealth of Nations but would not become widely used until nearly 200 years later. Marketing

and Marketing Concepts are directly related.

Given the centrality of customer needs, and wants in marketing, a rich understanding of these

concepts is essential.

Needs: Something necessary for people to live a healthy, stable and safe life. When needs

remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be

objective and physical, such as the need for food, water, and shelter; or subjective and

psychological, such as the need to belong to a family or social group and the need for self-

esteem.

Wants: Something that is desired wished for or aspired to. Wants are not essential for basic

survival and are often shaped by culture or peer-groups.

Demands: When needs and wants are backed by the ability to pay, they have the potential

to become economic demands.

Marketing research, conducted for the purpose of new product development or product

improvement, is often concerned with identifying the consumer's unmet needs. Customer

needs are central to market segmentation which is concerned with dividing markets into

distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who

might require separate products or marketing mixes." Needs-based segmentation (also known

as benefit segmentation) "places the customers' desires at the forefront of how a company

designs and markets products or services." Although needs-based segmentation is difficult to

do in practice, it has been proved to be one of the most effective ways to segment a market.

In addition, a great deal of advertising and promotion is designed to show how a given

product's benefits meet the customer's needs, wants or expectations in a unique way.

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Social Media Marketing:

Social media marketing is the use of social media platforms and websites to promote a

product or service. Although the terms e-marketing and digital marketing are still dominant in

academia, social media marketing is becoming more popular for both practitioners and

researchers. Most social media platforms have built-in data analytics tools, enabling

companies to track the progress, success, and engagement of ad campaigns. Companies

address a range of stakeholders through social media marketing, including current and

potential customers, current and potential employees, journalists, bloggers, and the general

public. On a strategic level, social media marketing includes the management of a marketing

campaign, governance, setting the scope (e.g. more active or passive use) and the

establishment of a firm's desired social media "culture" and "tone."

When using social media marketing, firms can allow customers and Internet users to post

user generated content (e.g., online comments, product reviews, etc.), also known as "earned

media," rather than use marketer-prepared advertising copy.

Given the popularity of social media, social network marketing is a broad category of

marketing. Anytime a business uses social media, it could be considered a form of social

network marketing. This form of outreach could take place on any social media platform,

whether it's Facebook, Twitter, YouTube, or anything else.

Social network marketing is also varied due to the varied nature of marketing. Marketing

outreach can take many different shapes—from outright advertisements to more subtle ways

of building a relationship with potential customers. Social network marketing can similarly

be straightforward ads for products or services, or it can be a means for a business to develop

relationships.

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 INDUSTRY PROFILE

Social media marketing:

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Social media marketing consists of the attempt to use social media to persuade consumers

that one's company, products and/or services are worthwhile. Social media marketing is

marketing using online communities, social networks, blog marketing and more. Lazer and

Kelly’s (1973) define social marketing as "concerned with the application of marketing

knowledge, concepts, and techniques to enhance social as well as economic ends.

It is also concerned with the analysis of the social consequences of marketing policies,

decisions and activities." Social media marketing is not merely about hitting the front page of

Digg or any other social news website. It is a strategic and methodical process to establish the

company’s influence, reputation and brand within communities of potential customers,

readers or supporters.

Growth of social media marketing:

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A recent study, “The State of Small Business Report,” sponsored by Network Solutions, LLC

and the University of Maryland’s Robert H. Smith School of Business, points to economic

struggles as the catalyst for social media’s rapid popularity. The study results show that social

media usage by small business owners increased from 12% to 24% in just the last year, and

almost 1 out of 5, actively uses social media as part of his or her marketing strategy. In 2009,

only 23% of marketers were using social media for years. Now that number has grown to

31%.

Here’s a breakdown of what the small businesses reported as the main uses of social media

marketing:

 75% have a company page on a social networking site.

 69% post status updates or articles of interest on social media sites.

 57% build a network through a site such as LinkedIn.

 54% monitor feedback about the business.

 39% maintain a blog.

 26% tweet about areas of expertise.

 16% use Twitter as a service channel.

According to the study, different industries are adopting social media marketing at different

rates, and while many industries have started using social media marketing in their efforts to

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reach more customers, many still have not positioned it as their top priority. 5 A research

shows that charitable organizations are still outpacing the business world and academia in

their use of social media. In a study conducted in 2008, a remarkable eighty-nine percent of

charitable organizations are using some form of social media including blogs, podcasts,

message boards, social networking, video blogging and wikis. A majority (57%) of the

organizations are blogging. Forty-five percent of those studied report social media is very

important to their fundraising strategy. While these organizations are best known for their

nonprofit status and their fundraising campaigns, they demonstrate an acute, and still

growing, awareness of the importance of Web 2.0 strategies in meeting their objectives. In

just the last few months, marketers have shifted their attitudes toward social media marketing

spending. This was recently affirmed in the new study, “The CMO Survey”, from Duke

University’s Fuqua School of Business and the American Marketing Association. A key

finding: Social media marketing budgets continue to rise. According to the results, businesses

currently allocate 6% of their marketing budgets to social media, an allotment they expect to

increase to 10% during the next year and 18% over the next 5 years.

Benefits of social media marketing:

Significantly different from conventional marketing strategies, Social Media Marketing

(SMM) offers three distinct advantages. One, it provides a window to marketers to not only

present products / services to customers but also to listen to customers’ grievances and

suggestions. Two, it makes it easy for marketers to identify various peer groups or influencers

among various groups, who in turn can become brand evangelist and help in organic growth

of a brand. And, three, all this is done at nearly zero cost (as compared to conventional

customer outreach programmes) as most of the social networking sites are free.

Social media marketing helps in:

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  Generating exposure to businesses.

 Increasing traffic/subscribers.

 Building new business partnerships.

 Rise in search engine rankings.

 Generating qualified leads due to better lead generation efforts.

 Selling more products and services.

 Reduction in overall marketing expenses.

Companies in the west are investing increasingly in SMM to get in touch with their

customers. They are indulging in constant interaction with their prospects in order to

understand their needs and hence make products better. It’s the best way to learn from your

customers about their needs and your own shortcomings. However, SMM is a very

personalized way of advertising and promotions can be targeted only to particular groups

which are interested in a particular domain, quite unlike conventional advertising.

Understanding the Relevance of Social Media in Marketing:

The role of social media in marketing is to use it as a communication tool that makes the

companies accessible to those interested in their product and makes them visible to those that

don't know their product. It should be used as a tool that creates a personality behind their

brand and creates relationships that they otherwise may never gain. This creates not only

repeat-buyers, but customer loyalty. Fact is social media is so diversified that it can be used

in whatever way best suits the interest and the needs of the business.

According to 2010 Social Media Marketing Industry Report 2010, a majority of marketers

(56%) are using social media for 6 hours or more each week, and nearly one in three invest

11 or more hours weekly. Twitter, Facebook, LinkedIn and blogs were the top four social

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media tools used by marketers, in order. A significant 81% of marketers plan on increasing

their use of blogs. A majority of the marketers are employing social media for marketing

purposes and small businesses were slightly more likely to use social media. 76% of

marketers are spending at least 4 hours each week on their social media marketing efforts.

In the present context, it is increasingly becoming pertinent for companies to (1) build a

favorable base of consumers, and (2) involve them in decision making. According to

Softpedia, during the last quarter of 2009, 86 percent of online retailers in US had a Facebook

page. It was expected that this figure would reach 99 percent very soon. During this same

period, e-marketer pointed that 65 percent of its surveyed online retailers were active on

Twitter. Another 26 percent were planning to incorporate Twitter in their plans. E-marketer

projects that by 2011, 91 percent of online retailers will be Twitter ready and all of them will

have a Facebook page. Presently, greater than 700 thousands businesses have an active

Facebook page. And around 80 thousand web portals are Facebook Connected presently.

Social media gives marketers a voice and a way to communicate with peers, customers and

potential consumers. It personalizes the "brand" and helps you to spread the message in a

relaxed and conversational way.

Adult beverage companies, exotic automobile manufacturers, pastry shops have been using

social media tool. Pepsi Coke, Nokia and many of the top brands have effectively used social

media for achieving their business objectives. Few companies that have become involved in

social media are:

 Absolut Vodka - Online Video on YouTube and Using Facebook to house their Top

Bartender fan page.

 BMW - Utilizing Facebook to promote their 1-Series Road Trip and they have

created a Rampenfest Page for fans.

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  Dunkin Donuts - They've found value in social media and have set up a

microblogging Twitter account.

 General Motors - GM leverages the social media to improve the online equity of its

brand and make consumers feel more connected.

Until recent past, social media effectively served as another customer outreach activity of

organizations – essentially building brand awareness and generating leads. However, trends

are now changing towards utilizing social media for positively impacting sales. A mindset

shift towards making social media a committed engagement channel is already underway. An

analysis by Wetpaint and Altimeter – engagementdb.com, concurs that the most successful

companies on social platforms were maintaining profiles on 7 or more channels.

How Does Social Media Marketing Work?

When successful, social media marketing helps a business:

 Increase referrals or sales leads

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  Build word-of-mouth reputation

 Increase sales of products or services

 Provide a means of feedback

 Develop a reputation as an expert or thought-leader

 Drive traffic to a business website or blog

 Develop new products or services

 Keep people informed about special events, sales, and other newsworthy events

 Provide customer service

The Most Popular Social Media Platforms

According to a Pew Research survey in 2019, the most popular platform was YouTube,

which was used by 73% of U.S. adults. These are the worldwide usage stats for the other

platforms included in the survey:

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  Facebook: 94%

 Instagram: 76%

 LinkedIn: 59%

 Twitter: 53%

 Youtube: 53%

 Pinterest:25%

 Snapchat: 5%

PLATFORMS

All social media networks are not created equally.

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While Instagram might be a powerhouse for one brand, it’ll do nothing for another – and

while one business might have tons of engagement on Facebook, another business will gain

more traction on LinkedIn.

The best move is to have at least a presence on each of the major platforms, and from there,

strategically choose which ones to double down on.

We’re going to take a look at each of the seven major social media platforms in our social

media guide: Facebook, Twitter, LinkedIn, Instagram, Snapchat, Pinterest, and Reddit.

You’ll also gain insights into what content succeeds on each platform and get actionable tips

to take your own social media marketing to the next level.

Before we dive in, let’s take a look at each of these networks at a glance.

1. Facebook

Headquarters: Menlo Park, CA

Founded: 2004

Active Monthly Users: 2.45 billion

This OG social media network is tried and true, and no matter your industry, there’s a space

for you on Facebook.

Some of the leading industries on Facebook include financial services, ecommerce, retail,

gaming, entertainment, media, telecom, technology, consumer goods, and automotive

businesses.

While the News Feed increasingly suppresses business posts, there are still ways to bolster

engagement without investing in ads.

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Consider joining (or creating) groups, using a Facebook Messenger chatbot, or using live

video to up your engagement.

2. Twitter

Headquarters: San Francisco, CA

Founded: 2006

Active Monthly Users: 330 million

Fast and sometimes furious, certain businesses really thrive on Twitter.

If your business is related to entertainment, sports, politics, or marketing, you stand to earn

tremendous engagement on Twitter.

On Twitter, brands have an opportunity to craft and hone their voice – there’s room to be

clever and personable in addition to informative and helpful.

Jump into threads, provide value, share your own content as well as others, and join the

nonstop conversation.

3. LinkedIn

Headquarters: Mountain View, CA

Founded: 2003

Active Monthly Users: 310 million

Within its massive network of professionals, you’ll find more than 61 million users in senior

positions on LinkedIn.

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If you’re looking for decision makers who have the power to hire your company, stock your

product, or partner with you, LinkedIn is the place to be.

Did you know that 44% of LinkedIn users have an income above the national median? Or

that more than 50% of Americans with a college degree use LinkedIn?

It might not be the flashiest social media network, but there’s unlimited potential for

connecting with an elite group of professionals who can make a difference for your business.

4. Instagram

Headquarters: Menlo Park, CA

Launched: 2010

Active users: 1 billion

Instagram is a smorgasbord of eye-catching visuals and inspiring creativity.

It’s also a social network where product-based businesses, influencers, and coaches can

thrive.

Since introducing shoppable posts in 2018, the potential ROI for productbased businesses is

higher than ever – not only can B2B’s connect with a massive audience, they can link the

product information and sales straight from the ‘gram.

If your target demographic is under 35, Instagram is a gold mine: 63% of users are between

the ages of 18 to 34, with virtually even split between male and female users.

5. Snapchat

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Headquarters: Los Angeles, CA

Founded: 2011

Active Monthly Users: 360 million

If your target demographic is young, you definitely want to get in on Snapchat.

The most active users are Snapchat are 13-year-olds, and they’re spending upwards of 30

minutes a day on the app.

Snapchat is a haven for user-generated content, behind-the-scenes videos, exclusive offers,

and influencer takeovers.

6. Pinterest

Founded: 2010

Headquarters: San Francisco, CA

Active Monthly Users: 322 million

Some of the most popular content on Pinterest includes fashion, food, decor, wedding,

workout and DIY-related pins.

In addition, anything with rich visual can thrive on Pinterest.

Notably, 81% of Pinterest users are female – if you have a predominantly female audience,

that’s a compelling reason to invest time in social media marketing on Pinterest.

That’s not to say that men aren’t on Pinterest.

In fact, 40% of new Pinterest signups are male.

7. Reddit
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Founded: 2005

Headquarters: San Francisco, CA

Active Monthly Users: 430 million

Reddit heralds itself as “the front page of the internet.”

According to Alexa rankings, Reddit is one of the top 20 most-visited sites.

Reddit has a unique blend of content and community, with more than 150,000 communities

dedicated to every topic imaginable.

With so many niches, there’s a place for every brand and business – it’s a matter of finding

the niches where your potential customers are active and diving in.

The Pervasiveness of Social Media:

Social media is no more a fancy term; its popularity can be deduced from the findings of the

latest PEW Research – as much as 70 percent of the economically active population is well

entrenched in to the social media space. Similar statistics, albeit from a different source –

eMarketer, further corroborates this notion; 46 percent of people in age group of 44 – 62

years and around 61 percent under category 27 to 43 years are socially networked.

Role of social media in marketing:

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Social media is now increasingly becoming an ingrained aspect of political campaigns,

national defense strategies, public policy, public relations, brand management and even intra

company communication. Since the major task of marketing as tool used to inform

consumers about the company’s products, who they are and what they offer, social marketing

plays an important role in marketing.

• Social media can be used to provide an identity about the companies and the products or

services that they offer.

• Social media helps in creating relationships with people who might not otherwise know

about the products or service or what the companies represent.

• Social media makes companies "real" to consumers. If they want people to follow them they

need not just talk about the latest product news, but share their personality with them.

• Social media can be used to associate themselves with their peers that may be serving the

same target market.

• Social media can be used to communicate and provide the interaction that consumers look

for.

Why businesses need to consider social media marketing services?

 Size: Facebook has over 250 million users globally. On an average, 70-100 tweets

happen by the second. An average user on Facebook has 120 friends. This is the kind

of enormity Social networking sites espouse and with this comes the license to

communicate powerfully. But when such large numbers are involved, there is a

danger of something going wrong and when it does, it happens in a big way. An

expert should be hired to do what is best for business.

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  Transparency: No cheat code involved. No black hat techniques allowed. Everything

that happens in the social networking landscape is fool proof. Companies cannot fake

authenticity in an attempt to get more people involved. Members can choose to

associate with the company or opt out. Opinions made on social networking platforms

are taken seriously and the more authoritative the companies get, more seriously they

are taken.

 Reach: It is possible to make mark globally and do it quickly using social networking

sites.

 Boost website traffic: Social media is probably the fastest and easiest means of

redirecting traffic to company’s website. By simply placing their website URL in their

profile, the company can have all their profile visitors check out their website and a

percentage of traffic is sure to get converted in course of time. This is the virtual way

version of “word-of mouth”.

 Branding: Buying a candy may have been impulsive all your life, but if it is

discussed on a social networking site, there is likely to get brand conscious even a

candy. Social media is a smart way to build brands. Social media platforms are known

to be one of the most powerful and fast means of branding. Some of the big brands

like Coke, Ford, Dell, IBM, Burger King are some of the well-known brands have

powerfully used social media platforms to endorse themselves.

Barriers to Implementation of Social Media at companies:

On the other hand, social media use scenario is more encouraging at small businesses.

According to the State of Small Business Report, social media usage by small businesses

increased from 12 percent to 24 percent in the last year. Further, almost 20 percent of small

businesses actively employ social media as an integral part of the marketing strategy. In fact

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small businesses are currently allocating 6% of their marketing budgets to social media. It is

expected that this is expected to reach 10 percent by 2011 and further to around 18 percent

over the next 5 years. Some of the findings from the survey are particularly encouraging from

business via social media point of view, these include:

 75 percent of small businesses have presence on a social networking site

 54 percent are monitoring feedbacks

 69 percent post updates or interesting articles on social media sites

Those are some mind boggling numbers, especially after the viewing the depth of social

media penetration across big companies. But what is most striking from the two surveys is

the fact that while nearly 70 percent of Fortune 100 companies are virtually inactive.

However, a similar percentage of small businesses are buzzing with activity on social media.

Nonetheless statistics aside, it is high time, that businesses, irrespective of their size have a

social media plan that has 3 C’s in it, viz

(1) A Companywide engagement strategy that

(2) ensures Conversations with consumers, and

(3) Causes user loyalty across social networks.

Social Media Marketing in India- An Overview

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India has 71 million active internet users. Social Media is really picking up new heights in

India. According to the 2010 Regus Global Survey of business social networking, India tops

the usage of social networking by business – it has the highest activity index, 127, far more

than the US’97, and 52% of the Indian respondent companies said that they had acquired new

customers using social networks while 35% American companies managed that. Many

companies are coming big way for Social Media Optimization for their Product or Services

nowadays. During Election 2009 Social Media was used for Influence Indian Voters. Social

Media Marketing in India is being undertaken by brands like Tata Docomo, MTV India,

Channel V, Clear Trip, Tata Photon, Axe deodorants, Microsoft, Naukri, Shaadi and many

more. Besides, numerous Indian celebrities are also using SMM platform to promote their

movies, music and events via Twitter, Facebook and personalized blogs. Social Media

Marketing is also boosting public relations business. Several PR agencies in India are

undertaking brand building exercises for corporate organizations, brands and celebrities.

However, to the delight of many among us, the biggest gainers from SMM till date have been

the organizations from the Not-for-profit sector. Several Campaigns like ‘Bell Bajao’ and

‘Jaago Re’ have been quite successful on Social Networking Sites. These campaigns have

been spreading the word about their cause through blogs, Twitter and Facebook.

Social Media Marketing Strategies:

SMM is still in its infancy. Most of the online retailers though appreciate its positives fallouts

on the brand awareness and promotion; they are still in the early stages of adoption. For an

organization willing to invest in social media marketing, it is important to understand why

SMM is an important marketing strategy and how it can help:

• This is the age of consumer satisfaction. It is not about selling it is more about

interacting. There is a lot to learn from the customers. Using social media one can

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 identify customers, listen to their feedback and use them to improve and innovate on

products or services.

• SMM is not a mass advertising strategy. It can be used to identify peer groups and

advertise to that particular group. Social Media can help in identifying influencers and

through them one can guide a prospective customer into making a purchase.

• SMM calls for novel advertising methods as the attention span of online junta is very

low. This is largely due to the multitasking phenomena. A person watching a video

clip on YouTube might be simultaneously updating a blog, while reading another one

and watching friend’s photographs on Facebook. In order to garner their attention

away from distractions the advertisement must be innovative and interesting to hold

the imagination and attention of the prospect.

• At the same time the message must also provoke the recipient into action; like seeking

a detailed description of the product/service, or suggesting to a friend, or initiating

purchase. So, if the advertisement is trying to sell something then it should be

conveniently placed with links so that the prospect can make a purchase with least

effort.

• Similarly Social Media can be used to increase customer loyalty through customer

support services and hence improve customer retention.

• Social Media Marketing can also be used by brands to ward off any negative

publicity. But the brands will have to be cautious here as over doing it may further

aggravate their customers / stakeholders

Companies using traditional marketing methods (e.g. surveys, focus groups, test marketing)

often spend millions to locate their target markets. Establishing a social media strategy will

help them see where potential customers are hanging out. The companies can search for

related groups and Fan Pages through Facebook, start accounts on social bookmarking sites

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such as Digg or Stumble Upon, and check on who is linking to your site to find out who’s

interested. Social media gives businesses on small budgets the ability to find out what people

are saying about them (and others) in their industry, without paying large sums on market

research. With its ear to the ground on social media, the company will be the first to know if

its product is working or if changes need to be made. To successfully implement one’s SMM

strategy the following points must be kept in mind:

 The company shouldn’t just jump on to the bandwagon just because others are

jumping into it. The market should be analyzed first to understand whether their brand

would really benefit from SMM. It should try and find out whether SMM strategies fit

its brand.

 The company shouldn’t expect results over night. SMM is a long term strategy. It will

not happen overnight. The results might become visible anywhere from three to six

months.

 SMM is not a standalone tool for marketing. It has to be used along with all the other

conventional marketing strategies. There are many things that social media can do for

business. Developing a strategy for using it means that the firms need to think about

what they want to accomplish this year and determine how social media fits into the

plan. One of the benefits of a social media strategy is the fact that the available tools

can customized for their particular needs. The firms can choose to concentrate their

efforts on the sites that seem to offer the best return on investment, while taking a

“wait and see” stand on the others.

Purpose and Tactics

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One of the main purposes of employing social media in marketing is as a communications

tool that makes the companies accessible to those interested in their product and makes them

visible to those who have no knowledge of their products. These companies use social media

to create buzz, and learn from and target customers. It's the only form of marketing that can

finger consumers at each and every stage of the consumer decision journey. Marketing

through social media has other benefits as well. Of the top 10 factors that correlate with a

strong Google organic search, seven are social media dependent. This means that if brands

are less or non-active on social media, they tend to show up less on Google searches. While

platforms such as Twitter, Facebook, and Google+ have a larger number of monthly users,

the visual media sharing based mobile platforms, however, garner a higher interaction rate in

comparison and have registered the fastest growth and have changed the ways in which

consumers engage with brand content. Instagram has an interaction rate of 1.46% with an

average of 130 million users monthly as opposed to Twitter which has a .03% interaction rate

with an average of 210 million monthly users. Unlike traditional media that are often cost-

prohibitive to many companies, a social media strategy does not require astronomical

budgeting.

To this end, companies make use of platforms such as Facebook, Twitter, YouTube, and

Instagram to reach audiences much wider than through the use of traditional print/TV/radio

advertisements alone at a fraction of the cost, as most social networking sites can be used at

little or no cost (however, some websites charge companies for premium services). This has

changed the ways that companies approach to interact with customers, as a substantial

percentage of consumer interactions are now being carried out over online platforms with

much higher visibility. Customers can now post reviews of products and services, rate

customer service, and ask questions or voice concerns directly to companies through social

media platforms. According to Measuring Success, over 80% of consumers use the web to

35
research products and services. Thus social media marketing is also used by businesses in

order to build relationships of trust with consumers. To this aim, companies may also hire

personnel to specifically handle these social media interactions, who usually report under the

title of Online community managers. Handling these interactions in a satisfactory manner can

result in an increase of consumer trust. To both this aim and to fix the public's perception of a

company, 3 steps are taken in order to address consumer concerns, identifying the extent of

the social chatter, engaging the influencers to help, and developing a proportional response.

• Twitter:

Twitter allows companies to promote their products in short messages known as tweets

limited to 140 characters which appear on followers' Home timelines. Tweets can contain

text, Hashtag, photo, video, Animated GIF, Emoji, or links to the product's website and other

social media profiles, etc. Twitter is also used by companies to provide customer service.

Some companies make support available 24/7 and answer promptly, thus improving brand

loyalty and appreciation.

• Facebook:

Facebook pages are far more detailed than Twitter accounts. They allow a product to provide

videos, photos, longer descriptions, and testimonials where followers can comment on the

product pages for others to see. Facebook can link back to the product's Twitter page, as well

as send out event reminders. As of May 2015, 93% of businesses marketers use Facebook to

promote their brand. A study from 2011 attributed 84% of "engagement" or clicks and likes

that link back to Facebook advertising. By 2014, Facebook had restricted the content

published from business and brand pages. Adjustments in Facebook algorithms have reduced

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the audience for non-paying business pages (that have at least 500,000 "Likes") from 16% in

2012 down to 2% in February 2014.

• LinkedIn:

LinkedIn, a professional business-related networking site, allows companies to create

professional profiles for themselves as well as their business to network and meet others.

Through the use of widgets, members can promote their various social networking activities,

such as Twitter stream or blog entries of their product pages, onto their LinkedIn profile

page. LinkedIn provides its members the opportunity to generate sales leads and business

partners. Members can use "Company Pages" similar to Facebook pages to create an area that

will allow business owners to promote their products or services and be able to interact with

their customers. Due to spread of spam mail sent to job seeker, leading companies prefer to

use LinkedIn for employee's recruitment instead of using a different job portal. Additionally,

companies have voiced a preference for the amount of information that can be gleaned from a

LinkedIn profile, versus a limited email.

• WhatsApp:

WhatsApp was founded by Jan Koum and Brian Acton. Joining Facebook in 2014,

WhatsApp continues to operate as a separate app with a laser focus on building a messaging

service that works fast and reliably anywhere in the world. Started as an alternative to SMS,

WhatsApp now supports sending and receiving a variety of media including text, photos,

videos, documents, and location, as well as voice calls. WhatsApp messages and calls are

secured with end-to-end encryption, meaning that no third party including WhatsApp can

read or listen to them. WhatsApp has a customer base of 1 billion people in over 180

countries. It is used to send personalized promotional messages to individual customers. It

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has plenty of advantages over SMS that includes ability to track how Message Broadcast

Performs using blue tick option in WhatsApp. It allows sending messages to Do Not Disturb

(DND) customers. WhatsApp is also used to send a series of bulk messages to their targeted

customers using broadcast option. Companies started using this to a large extent because it is

a cost effective promotional option and quick to spread a message. As of 2019, WhatsApp

still not allow businesses to place ads in their app.

• Yelp:

Yelp consists of a comprehensive online index of business profiles. Businesses are searchable

by location, similar to Yellow Pages. The website is operational in seven different countries,

including the United States and Canada. Business account holders are allowed to create,

share, and edit business profiles. They may post information such as the business location,

contact information, pictures, and service information. The website further allows individuals

to write, post reviews about businesses, and rate them on a five-point scale. Messaging and

talk features are further made available for general members of the website, serving to guide

thoughts and opinions.

• Instagram:

In May 2014, Instagram had over 200 million users. The user engagement rate of Instagram

was 15 times higher than of Facebook and 25 times higher than that of Twitter. According to

Scott Galloway, the founder of L2 and a professor of marketing at New York University's

Stern School of Business, latest studies estimate that 93% of prestige brands have an active

presence on Instagram and include it in their marketing mix. When it comes to brands and

businesses, Instagram's goal is to help companies to reach their respective audiences through

captivating imagery in a rich, visual environment. Moreover, Instagram provides a platform

38
where user and company can communicate publicly and directly, making itself an ideal

platform for companies to connect with their current and potential customers.

Many brands are now heavily using this mobile app to boost their marketing strategy.

Instagram can be used to gain the necessary momentum needed to capture the attention of the

market segment that has an interest in the product offering or services. As Instagram is

supported by Apple and android system, it can be easily accessed by smartphone users.

Moreover, it can be accessed by the Internet as well. Thus, the marketers see it as a potential

platform to expand their brands exposure to the public, especially the younger target group.

On top of this, marketers do not only use social media for traditional Internet advertising, but

they also encourage users to create attention for a certain brand. This generally creates an

opportunity for greater brand exposure. Furthermore, marketers are also using the platform to

drive social shopping and inspire people to collect and share pictures of their favorite

products. Many big names have already jumped on board: Starbucks, MTV, Nike, Marc

Jacobs, and Red Bull are a few examples of multinationals that adopted the mobile photo app

early. Fashion blogger Danielle Bernstein, who goes by @weworewhat on Instagram,

collaborated with Harper's Bazaar to do a piece on how brands are using Instagram to market

their products, and how bloggers make money from it. Bernstein, who currently has one and a

half million followers on Instagram, and whose "outfit of the day" photos on Snapchat get

tens of thousands of screenshots, explained that for a lot of her sponsored posts, she must

feature the brand in a certain number of posts, and often cannot wear a competitor's product

in the same picture. According to Harper's Bazaar, industry estimates say that brands are

spending more than $1 billion per year on consumer generated advertising. Founder of

Instagram Kevin Systrom even went to Paris Fashion week, going to couture shows and

meeting with designers to learn more about how style bloggers, editors, and designers are

currently dominating much of the content on his application.

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Instagram has proven itself a powerful platform for marketers to reach their customers and

prospects through sharing pictures and brief messages. According to a study by Simply

Measured, 71% of the world's largest brands are now using Instagram as a marketing

channel. For companies, Instagram can be used as a tool to connect and communicate with

current and potential customers. The company can present a more personal picture of their

brand, and by doing so the company conveys a better and true picture of itself. The idea of

Instagram pictures lies on on-the-go, a sense that the event is happening right now, and that

adds another layer to the personal and accurate picture of the company. In fact, Thomas

Rankin, co-founder and CEO of the program Dash Hudson, stated that when he approves a

blogger's Instagram post before it is posted on the behalf of a brand his company represents,

his only negative feedback is if it looks too posed. "It's not an editorial photo," he explained,

"We're not trying to be a magazine. We're trying to create a moment." Another option

Instagram provides the opportunity for companies to reflect a true picture of the brand from

the perspective of the customers, for instance, using the user-generated contents thought the

hashtags encouragement. Other than the filters and hashtags functions, the Instagram's

15second videos and the recently added ability to send private messages between users have

opened new opportunities for brands to connect with customers in a new extent, further

promoting effective marketing on Instagram.

• Snapchat:

Snapchat is a popular messaging and picture exchanging application that was created in 2011

by three students at Stanford University named Evan Spiegel, Bobby Murphy, and Reggie

Brown. The application was first developed to allow users to message back and forth and to

also send photographs that are only available from 1–10 seconds until they are no longer

available. The app was an instant hit with social media members and today there are up to

40
158 million people using snapchat every single day. It is also estimated that Snapchat users

are opening the application approximately 18 times per day, which means users are on the

app for about 25–30 minutes per day.

• YouTube:

YouTube is another popular avenue; advertisements are done in a way to suit the target

audience. The type of language used in the commercials and the ideas used to promote the

product reflect the audience's style and taste. Also, the ads on this platform are usually in

sync with the content of the video requested; this is another advantage YouTube brings for

advertisers. Certain ads are presented with certain videos since the content is relevant.

Promotional opportunities such as sponsoring a video is also possible on YouTube, "for

example, a user who searches for a YouTube video on dog training may be presented with a

sponsored video from a dog toy company in results along with other videos." YouTube also

enable publishers to earn money through its YouTube Partner Program. Companies can pay

YouTube for a special "channel" which promotes the company’s products or services.

• Social bookmarking sites:

Websites such as Delicious, Digg, Slashdot, Diigo, Stumbleupon, and Reddit are popular

social bookmarking sites used in social media promotion. Each of these sites is dedicated to

the collection, curation, and organization of links to other websites that users deem to be of

good quality. This process is "crowdsourced", allowing amateur social media network

members to sort and prioritize links by relevance and general category. Due to the large user

bases of these websites, any link from one of them to another, the smaller website may in a

flash crowd, a sudden surge of interest in the target website. In addition to user-generated

promotion, these sites also offer advertisements within individual user communities and

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categories. Because ads can be placed in designated communities with a very specific target

audience and demographic, they have far greater potential for traffic generation than ads

selected simply through cookie and browser history. Additionally, some of these websites

have also implemented measures to make ads more relevant to users by allowing users to

vote on which ones will be shown on pages they frequent. The ability to redirect large

volumes of web traffic and target specific, relevant audiences makes social bookmarking sites

a valuable asset for social media marketers.

• Blogs:

Platforms like LinkedIn create an environment for companies and clients to connect online.

Companies that recognize the need for information, originality/ and accessibility employ

blogs to make their products popular and unique/ and ultimately reach out to consumers who

are privy to social media. Studies from 2009 show that consumers view coverage in the

media or from bloggers as being more neutral and credible than print advertisements, which

are not thought of as free or independent. Blogs allow a product or company to provide

longer descriptions of products or services, can include testimonials and can link to and from

other social network and blog pages. Blogs can be updated frequently and are promotional

techniques for keeping customers and also for acquiring followers and subscribers who can

then be directed to social network pages. Online communities can enable a business to reach

the clients of other businesses using the platform. To allow firms to measure their standing in

the corporate world, sites enable employees to place evaluations of their companies. Some

businesses opt out of integrating social media platforms into their traditional marketing

regimen. There are also specific corporate standards that apply when interacting online. To

maintain an advantage in a business-consumer relationship, businesses have to be aware of

four key assets that consumers maintain: information, involvement, community, and control.

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 • Tumblr:

Blogging website Tumblr first launched ad products on May 29, 2012. Rather than relying on

simple banner ads, Tumblr requires advertisers to create a Tumblr blog so the content of

those blogs can be featured on the site. In one year, four native ad formats were created on

web and mobile and had more than 100 brands advertising on Tumblr with 500 cumulative

sponsored posts.

Ad Formats:

 Sponsored mobile pPost – Advertisements (Advertisers' blog posts) will show up on

user's Dashboard when the user is on a mobile device such as smartphones and

tablets, allowing them to like, reblog, and share the sponsored post.

 Sponsored web post – "Largest in-stream ad unit on the web" that catches the users'

attention when looking at their Dashboard through their computer or laptop. It also

allows the viewers to like, reblog, and share it.

 Sponsored radar – Radar picks up exceptional posts from the whole Tumblr

community based on their originality and creativity. It is placed on the right side next

to the Dashboard, and it typically earns 120 million daily impressions. Sponsored

radar allows advertisers to place their posts there to have an opportunity to earn new

followers, reblogs, and likes.

 Sponsored spotlight – Spotlight is a directory of some of the popular blogs throughout

the community and a place where users can find new blogs to follow. Advertisers can

choose one category out of fifty categories that they can have their blog listed on

there.

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These posts can be one or more of the following: images, photo sets, animated GIFs, video,

audio, and text posts. For the users to differentiate the promoted posts to the regular users'

posts, the promoted posts have a dollar symbol on the corner. On May 6, 2014, Tumblr

announced customization and theming on mobile apps for brands to advertise.

Marketing techniques

Social media marketing involves the use of social networks, consumer's online brand-related

activities (COBRA) and electronic word of mouth (eWOM) to successfully advertise online.

Social networks such as Facebook and Twitter provide advertisers with information about the

likes and dislikes of their consumers. This technique is crucial, as it provides the businesses

with a "target audience". With social networks, information relevant to the user's likes is

available to businesses; who then advertise accordingly. Activities such as uploading a

picture of your "new Converse sneakers to Facebook" is an example of a COBRA. Electronic

recommendations and appraisals are a convenient manner to have a product promoted via

"consumer-to-consumer interactions. An example of eWOM would be an online hotel

review; the hotel company can have two possible outcomes based on their service. A good

service would result in a positive review which gets the hotel free advertising via social

media. However, a poor service will result in a negative consumer review which can

potentially harm the company's reputation.

Social networking sites such as Facebook, Instagram, Twitter, MySpace etc. have all

influenced the buzz of word of mouth marketing. In 1999, Misner said that word-of mouth

marketing is, "the world's most effective, yet least understood marketing strategy" (Trusov,

Bucklin, & Pauwels, 2009, p. 3). Through the influence of opinion leaders, the increased

online "buzz" of "word-of-mouth" marketing that a product, service or companies are

experiencing is due to the rise in use of social media and smartphones. Businesses and

44
marketers have noticed that, "a persons behaviour is influenced by many small groups"

(Kotler, Burton, Deans, Brown, & Armstrong, 2013, p. 189). These small groups rotate

around social networking accounts that are run by influential people (opinion leaders or

"thought leaders") who have followers of groups. The types of groups (followers) are called:

[81] reference groups (people who know each other either face-to-face or have an indirect

influence on a person’s attitude or behaviour); membership groups (a person has a direct

influence on a person's attitude or behaviour); and aspirational groups (groups which an

individual wishes to belong to).

Influencer Marketing

Marketers target influential people, referred to as influencers, on social media who are

recognized as being opinion leaders and opinion-formers to send messages to their target

audiences and amplify the impact of their message. A social media post by an opinion leader

can have a much greater impact (via the forwarding of the post or "liking" of the post) than a

social media post by a regular user. Marketers have come to the understanding that

"consumers are more prone to believe in other individuals" who they trust (Sepp, Liljander, &

Gummerus, 2011). OL's and OF's can also send their own messages about products and

services they choose (Fill, Hughes, & De Francesco, 2013, p. 216). The reason the opinion

leader or formers have such a strong following base is because their opinion is valued or

trusted (Clement, Proppe, & Rott, 2007). They can review products and services for their

followings, which can be positive or negative towards the brand. OL's and OF's are people

who have a social status and because of their personality, beliefs, values etc. have the

potential to influence other people (Kotler, Burton, Deans, Brown, & Armstrong, 2013, p.

189). They usually have a large number of followers otherwise known as their reference,

membership or aspirational group (Kotler, Burton, Deans, Brown, & Armstrong), 2013, p.

45
189. By having an OL or OF support a brands product by posting a photo, video or written

recommendation on a blog, the following may be influenced and because they trust the

OL/OF a high chance of the brand selling more products or creating a following base. Having

an OL/OF helps spread word of mouth talk amongst reference groups and/or memberships

groups e.g. family, friends, work-friends etc. (Kotler, Burton, Deans, Brown, & Armstrong,

2013, p. 189). The adjusted communication model shows the use of using opinion leaders and

opinion formers. The sender/source gives the message to many, many OL's/OF's who pass the

message on along with their personal opinion, the receiver (followers/groups) form their own

opinion and send their personal message to their group (friends, family etc.) (Dahlen, Lange

& Smith, 2010, p.39).

Organic Social Media

Owned social media channels are an essential extension of business' and brands in today's

world. Brand must seek to create their brand image on each platform, and cater to the type of

consumer demographics on each respective platform. In contrast with pre-Internet marketing,

such as TV ads and newspaper ads, in which the marketer controlled all aspects of the ad,

with social media, users are free to post comments right below an online ad or an online post

by a company about its product. Companies are increasing using their social media strategy

as part of their traditional marketing effort using magazines, newspapers, radio

advertisements, television advertisements. Since in the 2010s, media consumers are often

using multiple platforms at the same time (e.g., surfing the Internet on a tablet while watching

a streaming TV show), marketing content needs to be consistent across all platforms, whether

traditional or new media. Heath (2006) wrote about the extent of attention businesses should

give to their social media sites. It is about finding a balance between frequently posting but

not over posting. There is a lot more attention to be paid towards social media sites because

46
people need updates to gain brand recognition. Therefore, a lot more content is need and this

can often be unplanned content.

Planned content begins with the creative/marketing team generating their ideas, once they

have completed their ideas they send them off for approval. There is two general ways of

doing so. The first is where each sector approves the plan one after another, editor, brand, and

followed by the legal team (Brito, 2013). Sectors may differ depending on the size and

philosophy of the business. The second is where each sector is given 24 hours (or such

designated time) to sign off or disapprove. If no action is given within the 24-hour period the

original plan is implemented. Planned content is often noticeable to customers and is un-

original or lacks excitement but is also a safer option to avoid unnecessary backlash from the

public. Both routes for planned content are time consuming as in the above; the first way to

approval takes 72 hours to be approved. Although the second route can be significantly

shorter it also holds more risk particularly in the legal department.

Unplanned content is an 'in the moment' idea, "a spontaneous, tactical reaction." (Cramer,

2014, p.6). The content could be trending and not have the time to take the planned content

route. The unplanned content is posted sporadically and is not calendar/date/time arranged

(Deshpande, 2014). Issues with unplanned content revolve around legal issues and whether

the message being sent out represents the business/brand accordingly. If a company sends out

a Tweet or Facebook message too hurriedly, the company may unintentionally use insensitive

language or messaging that could alienate some consumers. For example, celebrity chef Paula

Deen was criticized after she made a social media post commenting about HIV-AIDS and

South Africa; her message was deemed to be offensive by many observers. The main

difference between planned and unplanned is the time to approve the content. Unplanned

content must still be approved by marketing managers, but in a much more rapid manner e.g.

1–2 hours or less. Sectors may miss errors because of being hurried. When using unplanned

47
content Brito (2013) says, "be prepared to be reactive and respond to issues when they arise."

Brito (2013) writes about having a, "crisis escalation plan", because, "It will happen". The

plan involves breaking down the issue into topics and classifying the issue into groups.

Colour coding the potential risk "identify and flag potential risks" also helps to organise an

issue. The problem can then be handled by the correct team and dissolved more effectively

rather than any person at hand trying to solve the situation.

IMPLICATIONS ON TRADITIONAL ADVERTISING

Minimizing use

Traditional advertising techniques include print and television advertising. The Internet has

already overtaken television as the largest advertising market. Web sites often include the

banner or popup ads. Social networking sites don't always have ads. In exchange, products

have entire pages and are able to interact with users. Television commercials often end with a

spokesperson asking viewers to check out the product website for more information. While

briefly popular, print ads included QR codes on them. These QR codes can be scanned by cell

phones and computers, sending viewers to the product website. Advertising is beginning to

move viewers from the traditional outlets to the electronic ones. While traditional media, like

newspapers and television advertising, are largely overshadowed by the rise of social media

marketing, there is still a place for traditional marketing.

For example, with newspapers, readership over the years has shown a decline. However,

readership with newspapers is still fiercely loyal to print-only media. 51% of newspaper

readers only read the newspaper in its print form, making well-placed ads valuable.

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Leaks

The Internet and social networking leaks are one of the issues facing traditional advertising.

Video and print ads are often leaked to the world via the Internet earlier than they are

scheduled to premiere. Social networking sites allow those leaks to go viral, and be seen by

many users more quickly. The time difference is also a problem facing traditional advertisers.

When social events occur and are broadcast on television, there is often a time delay between

airings on the east coast and west coast of the United States. Social networking sites have

become a hub of comment and interaction concerning the event. This allows individuals

watching the event on the west coast (time-delayed) to know the outcome before it airs. The

2011 Grammy Awards highlighted this problem. Viewers on the west coast learned who won

different awards based on comments made on social networking sites by individuals watching

live on the east coast. Since viewers knew who won already, many tuned out and ratings were

lower. All the advertisement and promotion put into the event was lost because viewers didn't

have a reason to watch.

Mishaps

Social media marketing provides organizations with a way to connect with their customers.

However, organizations must protect their information as well as closely watch comments

and concerns on the social media they use. A flash poll done on 1225 IT executives from 33

countries revealed that social media mishaps caused organizations a combined $4.3 million in

damages in 2010. The top three social media incidents an organization faced during the

previous year included employees sharing too much information in public forums, loss or

exposure of confidential information, and increased exposure to litigation. Due to the viral

nature of the Internet, a mistake by a single employee has in some cases shown to result in

devastating consequences for organizations. An example of a social media mishap includes

49
designer Kenneth Cole's Twitter mishap in 2011. When Kenneth Cole tweeted, "Millions are

in uproar in #Cairo. Rumor has they heard our new spring collection is now available online

at [Kenneth Cole's website]". This reference to the 2011 Egyptian revolution drew an

objection from the public; it was widely objected to on the Internet. Kenneth Cole realized his

mistake shortly after and responded with a statement apologizing for the tweet.

In 2012 during Hurricane Sandy, Gap sent out a tweet to its followers telling them to stay

safe but encouraged them to shop online and offered free shipping. The tweet was deemed

insensitive, and Gap eventually took it down and apologized. Numerous additional online

marketing mishap examples exist. Examples include a YouTube video of a Domino's Pizza

employee violating health code standards, which went viral on the Internet and later resulted

in felony charges against two employees. A Twitter hashtag posted by McDonald's in 2012

attracting attention due to numerous complaints and negative events customers experienced at

the chain store; and a 2011 tweet posted by a Chrysler Group employee that no one in Detroit

knows how to drive. When the Link REIT opened a Facebook page to recommend old-style

restaurants, the page was flooded by furious comments criticizing the REIT for having forced

a lot of restaurants and stores to shut down; it had to terminate its campaign early amid

further deterioration of its corporate image.

In 2018, Max Factor, MAC and other beauty brands were forced to rush to disassociate

themselves from Kuwaiti beauty blogger and Instagram 'influencer' Sondos Alqattan after she

criticised government moves to improve conditions for domestic workers.

Ethics

The code of ethics that is affiliated with traditional marketing can also be applied to social

media. However, with social media being so personal and international, there is another list

of complications and challenges that come along with being ethical online. A sensitive topic

50
about social media professionals is the subject of ethics in social media marketing practices,

specifically: the proper uses of, often, very personal data. With the invention of social media,

the marketer no longer has to focus solely on the basic demographics and psychographics

given from television and magazines, but now they can see what consumers like to hear from

advertisers, how they engage online, and what their needs and wants are. The general concept

of being ethical while marking on social network sites is to be honest with the intentions of

the campaign, avoid false advertising, be aware of user privacy conditions (which means not

using consumers' private information for gain), respect the dignity of persons in the shared

online community, and claim responsibility for any mistakes or mishaps that are results of

your marketing campaign. Most social network marketers use websites like Facebook and

MySpace to try to drive traffic to another website. While it is ethical to use social networking

websites to spread a message to people who are genuinely interested, many people game the

system with auto-friend adding programs and spam messages and bulletins. Social

networking websites are becoming wise to these practices, however, and are effectively

weeding out and banning offenders.

In addition, social media platforms have become extremely aware of their users and collect

information about their viewers to connect with them in various ways. Social-networking

website Facebook Inc. is quietly working on a new advertising system that would let

marketers target users with ads based on the massive amounts of information people reveal

on the site about themselves. This may be an unethical or ethical feature to some individuals.

Some people may react negatively because they believe it is an invasion of privacy. On the

other hand, some individuals may enjoy this feature because their social network recognizes

their interests and sends them particular advertisements pertaining to those interests.

Consumers like to network with people who share their interests and desires. Individuals who

agree to have their social media profile public, should be aware that advertisers have the

51
ability to take information that interests them to be able to send them information and

advertisements to boost their sales. Managers invest in social media to foster relationships

and interact with customers. This is an ethical way for managers to send messages about their

advertisements and products to their consumers.

Since social media marketing first came into being, strategists and marketers have been

getting smarter and more careful with the way they collect information and distributing

advertisements. With the presence of data collecting companies, there is no longer a need to

target specific audiences. This can be seen as a large ethically gray area. For many users, this

is a breach of privacy, but there are no laws that prevent these companies from using the

information provided on their websites. Companies like Equifax, Inc., TransUnion Corp, and

LexisNexis Group thrive on collecting and sharing personal information of social media

users. In 2012, Facebook purchased information from 70 million households from a third

party company called Datalogix. Facebook later revealed that they purchased the information

in order to create a more efficient advertising service. Facebook had an estimated 144.27

million views in 2016, approximately 12.9 million per month. Despite this high volume of

traffic, very little has been done to protect the millions of users who log on to Facebook and

other social media platforms each month. President Barack Obama tried to work with the

Federal Trade Commission (FTC) to attempt to regulate data mining. He proposed the

Privacy Bill of Rights, which would protect the average user from having their private

information downloaded and shared with third party companies. The proposed laws would

give the consumer more control over what information companies can collect. President

Obama was unable to pass most of these laws through congress, and it is unsure what

President Trump will do with regards to social media marketing ethics.

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 Company Profile

Trade name Amazon

Formerly Cadabra, Inc. (1994-95)

Type Public

Industry Cloud computing, e-commerce, artificial intelligence, consumer

electronics, digital distribution, self-driving cars

Founded July 5, 1994; 26 years ago Bellevue, Washington, U.S.

Founder Jeff Bezos

Headquarters Seattle, Washington, U.S.

Area Served Worldwide

Key People  Andy Jassy (CEO)-designate

 Jeff Bezos (President, CEO, and Chairman)
Products Echo, Fire Tablet, Fire TV, Fire OS, Kindle

Services Amazon.com, Amazon Alexa, Amazon App store, Amazon Music,

Amazon Prime, Amazon Prime Video, Amazon Web Services

Revenue Increase US$386.1 billion (2020)

Website Amazon.com, Amazon.in

Amazon.com, Inc. is an American multinational technology company based in Seattle,

Washington, which focuses on e-commerce, cloud computing, digital streaming, and artificial

intelligence. It is one of the Big Five companies in the U.S. information technology industry,

along with Google, Apple, Microsoft, and Facebook. The company has been referred to as

"one of the most influential economic and cultural forces in the world", as well as the world's

most valuable brand.

53
Amazon was founded by Jeff Bezos in Bellevue, Washington, on July 5, 1994. It started as an

online marketplace for books but expanded to sell electronics, software, video games,

apparel, furniture, food, toys, and jewellery. In 2015, Amazon surpassed Walmart as the most

valuable retailer in the United States by market capitalization. In 2017, Amazon

acquired Whole Foods Market for US$13.4 billion, which substantially increased its footprint

as a physical retailer. In 2018, its two-day delivery service, Amazon Prime, surpassed

100 million subscribers worldwide.

Amazon is known for its disruption of well-established industries through technological

innovation and mass scale. It is the world's largest online marketplace, AI

assistant provider, live-streaming platform and cloud computing platform as measured

by revenue and market capitalization. Amazon is the largest Internet company by revenue in

the world. It is the second largest private employer in the United States and one of the world's

most valuable companies. As of 2020, Amazon has the highest global brand valuation.

Amazon distributes downloads and streaming of video, music, and audiobooks through

its Prime Video, Amazon Music, Twitch, and Audible subsidiaries. Amazon also has a

publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, and a

cloud computing subsidiary, Amazon Web Services. It produces consumer

electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo devices. Its

acquisitions over the years include Ring, Twitch, Whole Foods Market, and IMDb.

Amazon has been criticized for practices including technological surveillance overreach, a

hyper-competitive and demanding work culture, tax avoidance, and anti-

competitive behaviour.

History of Amazon

54
Jeff Bezos founded Amazon in July 1994. He chose Seattle because of technical talent

as Microsoft is located there. In May 1997, Amazon went public. It began selling music and

videos in 1998, at which time it began operations internationally by acquiring online sellers

of books in United Kingdom and Germany. The following year, Amazon began selling items

including video games, consumer electronics, home improvement items, software, games,

and toys.

In 2002, Amazon launched Amazon Web Services (AWS), which provided data on website

popularity, Internet traffic patterns and other statistics for marketers and developers. In 2006,

Amazon grew its AWS portfolio when Elastic Compute Cloud (EC2), which rents computer

processing power as well as Simple Storage Service (S3), that rents data storage via the

Internet, were made available. That same year, Amazon started Fulfilment by Amazon which

managed the inventory of individuals and small companies selling their belongings through

the company internet site. In 2012, Amazon bought Kiva Systems to automate its inventory-

management business, purchasing Whole Foods Market supermarket chain five years later in

2017.

In January 2021, Amazon invested with over $278 million by opening two new centers in

Italy (Novara and Modena) and creating over 1100 jobs.

On February 2, 2021, Amazon announced that Jeff Bezos would be stepping down as CEO

and transition to Executive Chair of Amazon's board in Q3 of 2021. Andy Jassy, who is

currently CEO of AWS, will replace Bezos as CEO of the company.

Officers and Directors

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Officers:

1. Jeffrey P. Bezos, President, Chief Executive Officer and Chairman of the Board

2. Brian T. Olsavsky, Senior Vice President and Chief Financial Officer

3. David H. Clark, CEO Worldwide Consumer

4. Andrew R. Jassy, Chief Executive Officer, Amazon Web Services

5. Shelley L. Reynolds, Vice President, Worldwide Controller

6. David A. Zapolsky, Senior Vice President, General Counsel and Secretary

Directors:

As of September 2020, the board of directors is

1. Jeff Bezos, President, CEO, and Chairman

2. Keith B. Alexander, CEO IronNet Cybersecurity, former NSA Director

3. Rosalind Brewer, Group President, and COO, Starbucks

4. Jamie Gorelick, partner, Wilmer Cutler Pickering Hale, and Dorr

5. Daniel P. Huttenlocher, Dean of the Schwarzman College of Computing at the

Massachusetts Institute of Technology

6. Judy McGrath, former CEO, MTV Networks

7. Indra Nooyi, former CEO, PepsiCo

8. Jon Rubinstein, former Chairman, and CEO, Palm, Inc.

9. Thomas O. Ryder, former Chairman, and CEO, Reader's Digest Association

10. Patty Stonesifer, President, and CEO, Martha's Table

11. Wendell P. Weeks, Chairman, President, and CEO, Corning Inc.

No. of Employees
56
Shareholders:

Product and Services by Amazon

57
Amazon.com's product lines available at its website include several media (books, DVDs,

music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty

products, gourmet food, groceries, health and personal-care items, industrial & scientific

supplies, kitchen items, jewelry, watches, lawn and garden items, musical instruments,

sporting goods, tools, automotive items and toys & games. In August 2019, Amazon applied

to have a liquor store in San Francisco, CA as a means to ship beer and alcohol within the

city. Amazon has separate retail websites for some countries and also offers international

shipping of some of its products to certain other countries. In November 2020, the company

started an online delivery service dedicated to prescription drugs. The service provides

discounts up to 80% for generic drugs and up to 40% for branded drugs for Prime subscribe

users. The products can be purchased on the company's website or at over 50,000 bricks-and-

mortar pharmacies in the United States.

Amazon.com has a number of products and services available, including:

 Amazon Fresh, Amazon Prime,

 Amazon Web Services, Alexa

 Appstore, Amazon Drive

 Echo, Kindle, Fire tablets

 Fire TV, Video, Kindle Store

 Music, Music Unlimited

 Amazon Digital Game Store

 Amazon Studios, Amazon Wireless

Amazon’s Subsidiaries

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Subsidiaries

Amazon owns over 40 subsidiaries, including Audible, Diapers.com, Goodreads, IMDb, Kiva

Systems (now Amazon Robotics), Shopbop, Teachstreet, Twitch and Zappos.

1. A9.com- A9.com, a company focused on researching and building innovative

technology, has been a subsidiary since 2003.

2. Amazon Maritime- Amazon Maritime, Inc. holds a Federal Maritime Commission

license to operate as a non-vessel-owning common carrier (NVOCC), which enables

the company to manage its own shipments from China into the United States.

3. Annapurna Labs- In January 2015, Amazon Web Services acquired Annapurna

Labs, an Israel-based microelectronics company reputedly for US$350–370M.

4. Audible.com- Audible.com is a seller and producer of spoken audio entertainment,

information and educational programming on the Internet. Audible sells digital

audiobooks, radio and television programs and audio versions of magazines and

newspapers. Through its production arm, Audible Studios, Audible has also become

the world's largest producer of downloadable audiobooks. On January 31, 2008,

Amazon announced it would buy Audible for about $300 million. The deal closed in

March 2008 and Audible became a subsidiary of Amazon.

5. Beijing Century Joyo Courier Services- Beijing Century Joyo Courier Services is a

subsidiary of Amazon and it applied for a freight forwarding license with the US

Maritime Commission. Amazon is also building out its logistics in trucking and air

freight to potentially compete with UPS and FedEx.

6. Brilliance Audio- Brilliance Audio is an audiobook publisher founded in 1984 by

Michael Snodgrass in Grand Haven, Michigan. The company produced its first 8

audio titles in 1985. The company was purchased by Amazon in 2007 for an

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 undisclosed amount. At the time of the acquisition, Brilliance was producing 12–15

new titles a month. It operates as an independent company within Amazon.

In 1984, Brilliance Audio invented a technique for recording twice as much on the same

cassette. The technique involved recording on each of the two channels of each stereo

track. It has been credited with revolutionizing the burgeoning audiobook market in the

mid-1980s since it made unabridged books affordable.

7. ComiXology- ComiXology is a cloud-based digital comics platform with over 200

million comic downloads as of September 2013. It offers a selection of more than

40,000 comic books and graphic novels across Android, iOS, Fire OS and Windows 8

devices and over a web browser. Amazon bought the company in April 2014.

8. CreateSpace- CreateSpace, which offers self-publishing services for independent

content creators, publishers, film studios, and music labels, became a subsidiary in

2009.

9. Eero- Eero, stylized as eero, is a company that manufactures mesh-capable routers.

The company was founded in 2015 and is based in San Francisco. Amazon announced

it would buy Eero in 2019.

10. Goodreads- Goodreads is a "social cataloging" website founded in December 2006

and launched in January 2007 by Otis Chandler, a software engineer, and

entrepreneur, and Elizabeth Khuri. The website allows individuals to freely search

Goodreads' extensive user-populated database of books, annotations, and reviews.

Users can sign up and register books to generate library catalogs and reading lists.

They can also create their own groups of book suggestions and discussions. In

December 2007, the site had over 650,000 members and over 10 million books had

been added. Amazon bought the company in March 2013.

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11. Health Navigator- In October 2019, Amazon finalized the acquisition of Health

Navigator, a startup developing APIs for online health services. The startup will form

part of Amazon Care, which is the company's employee healthcare service. This

follows the 2018 purchase of PillPack for under $1 billion, which has also been

included into Amazon Care.

12. Junglee- Junglee is a former online shopping service provided by Amazon that

enabled customers to search for products from online and offline retailers in India.

Junglee started off as a virtual database that was used to extract information from the

Internet and deliver it to enterprise applications. As it progressed, Junglee started to

use its database technology to create a single window marketplace on the Internet by

making every item from every supplier available for purchase. Web shoppers could

locate, compare and transact millions of products from across the Internet shopping

mall through one window.

13. Amazon acquired Junglee in 1998, and the website Junglee.com was launched in

India in February 2012 as a comparison-shopping website. It curated and enabled

searching for a diverse variety of products such as clothing, electronics, toys, jewelry

and video games, among others, across thousands of online and offline sellers.

Millions of products are browsable, the client selects a price, and then they are

directed to a seller. In November 2017, Amazon closed down Junglee.com and the

former domain currently redirects to Amazon India.

14. Kuiper Systems- Kuiper Systems LLC, is a subsidiary of Amazon, set up to deploy a

broadband satellite internet constellation with an announced 3,236 Low Earth orbit

satellites to provide satellite based Internet connectivity.

15. PillPack- PillPack is an online pharmacy specializing in shipping pre-sorted

medications in by-day packets. It was acquired by Amazon in June, 2018.

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16. Lab126- Lab126, developers of integrated consumer electronics such as the Kindle,

became a subsidiary in 2004.

17. Ring- Ring is a home automation company founded by Jamie Siminoff in 2013. It is

primarily known for its WiFi powered smart doorbells, but manufactures other

devices such as security cameras. Amazon bought Ring for US$1 billion in 2018.

18. Shelfari- Shelfari was a social cataloging website for books. Shelfari users built

virtual bookshelves of the titles which they owned or had read and they could rate,

review, tag and discuss their books. Users could also create groups that other

members could join, create discussions and talk about books, or other topics.

Recommendations could be sent to friends on the site for what books to read. Amazon

bought the company in August 2008. Shelfari continued to function as an independent

book social network within the Amazon until January 2016, when Amazon announced

that it would be merging Shelfari with Goodreads and closing down Shelfari.

19. Souq- Souq.com is the largest E-Commerce platform in the Middle East based in

Dubai, United Arab Emirates. On March 28, 2017, Amazon confirmed it would be

acquiring Souq.com for $580 million. Souq.com is now a subsidiary of Amazon, and

acts as Amazon's arm into the Middle East region.

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 Scope and Period of Study

The scope od the study is to study the role of social media marketing in consumer buying

preferences with special reference to Amazon. Secondary data were collected from company

websites, other websites like Wikipedia etc. It is aimed at enlightening how company uses

social media marketing in consumer buying preferences with regard to competitors.

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 Objectives of the study

The specific objectives of the study are;

 To find out different factors of social media that can influence consumer’s buying

preferences.

 To find out the use of social media marketing by Amazon to influence consumer’s

buying preferences.

 To find out the limitations of social media marketing.

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 Research Methodology

The coronavirus (COVID-19) eruption is first and prime human tragedy across the globe,

affecting the lives of millions of people. It has greatly impacted the global economy. This

paper is envisioned to provide business leaders with a view on the progressing situation and

implications on the consumer as well. Every sphere is affected and impacted by the

pandemic. Before lockdown work from home created a positive shift in the trend of online

shopping. But this could not reside for a long time. Unexpected lockdown of 21 days

impacted Indian online shopping and marketing trends drastically. Initially, Coronavirus's

influence on consumer buying behavior, towards brands and online tools was largely

unknown. This paper aims to reflect on different issues and perspectives of online marketing

due to COVID-19. There are still many more uncertainties to predict how the sale for the next

few months will be impacting the global community, both personally as well as

professionally. This study explores the impact of the epidemic from toilet tissue rolls to baby

gear, pet food to many more daily essentials. Although some of the companies managed to

operate through social commerce that is marketing by using e-commerce and social media.

Forty-six percent of users admitted that social networks are important for information sharing

and for making product choices. But results are indicative of the fact that online marketing

and shopping will soon go back to normal but the losses and downshift brought by this

pandemic are not ignorable.

INTRODUCTION

With the emergence of globalization and digitization, people, places, and products have

started coming close, approachable as well as affordable (Cetrez & Van Dam, 2018; Fouberg

& Murphy, 2020). Life was very fast, as everything from toilet roll to airplane ticket was just

one click away. All the business plans, meetings, trips came to halt with the introduction of

65
COVID-19 to the globe. The situation of the COVID-19 outbreak, made people think,

dynamically and timely diagnosis of how families have adjusted their spendings and online

shopping, and what are the characteristics of the households who have responded the fastest

and strongest. News media reported that customers collapsed supermarket drops to stock-pile

for durable goods (Barr, 2020). This was very much unplanned and sudden set back from

businessman to the common man. Every sector and individual has been affected badly by this

epidemic. Online marketing and shopping trends among customers are also squeezed by this

unsure epidemic. If the situation continues for a longer period, it will not be possible for the

big giants such as Myntra, Flipkart, Amazon etc. to retain their workforces as they have huge

turnover which have come to a complete hault. As per the current status, Coronavirus disease

(COVID-19) has infected more than 2.8 million people globally (World Health Organization,

2020). Since as per the medical science it spreads primarily through contacting the infected

person (even through cough or sneeze) or by touching the surface that has a virus on it, so the

best way chosen out by the government is to stay at home and stay safe. Initially, this has

jumped the number of users of online shopping, globally, but because of delay in order

deliveries, this has come to halt after a week. Specifically, in context to India, stay at home

has augmented the number of First Time Users (FTUs), earlier who were inhibited to shop

online. So, this study is an attempt to identify the impact of this crisis on online shopping

platforms and how the changed spending behavior of customers is going to sustain in the

future.

Indian Retail Market The Indian retail market is segregated in unorganized and organized

sectors, out of which unorganized sector includes about 13.8 million conventional family-run

neighborhood stores and the organized retail sector with a share of less than 10% (IBEF,

2020; Halan, 2020). The organized sector further includes all organized brick and mortar

stores and online shopping sites (Sinha, 2019). Despite the boom in the B2C e-commerce

66
sector in India, the majority of Indian consumers continue to have faith in the neighborhood

brick and mortar stores for shopping as they prefer to touch and feel the products before

buying and negotiating discounts over-the-counter. In India, a great majority of B2C

ecommerce retailers, draw consumers to shop online by offering various exciting schemes

such as discounts, free delivery, buy-one-get-one-free and exchange offers (Srivastava &

bagale, 2019; Joseph, 2019). However, many Indian shoppers known to be cost-conscious

and conservative as a part of their value system, are generally not attracted to making quick

decisions based on promotions and advertisements. Moreover, online shoppers, many-atimes,

come across problems concerning product delivery timelines and customer support services

(Khare, 2016; Arpana, 2020). Customers’ perception of risk toward online web sites is

aggravated due to the inferior IT set-up used by several e-tailers, resulting in the hacking of

personal information (Retail Economic Times of India, 2020; Staff, 2020).

Sensitivity towards Products Manufactured Abroad

Consumers have expressed their concern towards products that are made in china (Uyar,

2018). The emergence of this disease has created a panic mental situation among regular

users of the few products now; they are becoming more conscious of buying products made

abroad. This has given a boom to locally manufactured products and supports the MAKE in

India's initiative of the government. The majority of the consumers said that they will no

longer prefer the products made in china.

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Consumers are very much aware of the details of where the product has been made, and what

quality has been delivered to them at home. Survey has been done among seventy six males

and eighty three females regarding their change in behavior towards products manufactured

outside India. From figure 1 one can infer that majority of the male respondents do care about

the place of product manufactured and hesitate to buy products manufactured abroad and fifty

four percent of females supported that after COVID-19 they are concerned about a product

manufactured place and will not prefer made in china products as of now.

Empty shelves during COVID 19 have generated severe problems for the consumers’

(Lufkin, 2020). COVID 19 has forced consumers to change the way they preferred to shop.

There is an increased shift in consumer buying behaviour from traditional shopping to online

shopping (Reddy, 2020). Apart from the augmented number of customers indulging into

online shopping shift has been observed in the choice of products being ordered by customers

through these online tools. The majority of the customers have started positively ordering

more personal care and medical kits rather than ordering fashion products. National Retail

Federation (NRF) has surveyed on consumer’s online shopping behaviour in this epidemic

situation and has briefed certain consumer buying behavioural changes as follows:

1. As per the survey results, 9 out of 10 customers have changed their shopping practices.

2. Results are supportive that more than 50% of customers have changed their traditional

shopping habits by ordering products online.

3. About 6 out of 10 customers stated that they avoid going to store due to the fear of being

infected and ordering necessary goods from online marketing tools.

All these behavioral changes are not permanent but few are going to last permanently. As the

society will recover from this survival mode, this digital- online shopping adoption is likely

to become permanent. So, in the end, this pandemic situation has been classified into two

68
aspects one is a shift in customer behaviour that avoids public crowded gatherings and second

is more inclination towards digital adoption (Shashidhar, 2020).

Marketing research company Nielsen has further explored that one of the UK-based fashion

retailer’s online search traffic drop by approximately 40% after severe new procedures have

been announced in mid-March to fight with COVID-19 virus results are shown in Figure 2

below:

Figure 2
COVID-19 IMPACT ON SEARCH ITEMS PREFERENCE
Source: Nielsen Retail Measurement Services (2020)

Research done by Nielsen company claims that customer buying behavior has been changed

from fashion-oriented shopping to daily need-based shopping things as explained follows:

1. Active health product buying (increased purchasing of anticipatory health and wellness

products).

2. Responsive health management kits (increased purchasing of protective kits like masks

and alcohol based hand sanitizers).

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3. Vigorous pantry items purchasing (storing more of groceries and household daily

essentials).

4. Quarantine preparation in advance (facing shortages of goods in stores, customers have

cut down on store visits).

Figure 3: COVID-19 IMPACTS INCREASE IN THE SALE OF HEALTH-RELATED ITEMS

Source: Nielsen Retail Measurement Services (2020)

RESULTS AND DISCUSSION

Initiatives taken by Online Players

This pandemic situation surely will pass soon, and everything will be at place by the time.

But this time it will not be easy for people, business, and economies to settle. As the losses

incurred by the crisis are never fulfilling and forgotten. Everyone involved in the social

70
service sector doing their best to save the humanity. So as online market players too came

forward to provide uninterrupted delivery of medical and house hold services, so that all

together we can fight with the situation. On 25th March 2020, India’s renowned grocery

online store posted a message that “We'll be back soon! As we are currently experiencing

unprecedented demand. Even Amazon one of the leading e-commerce players over the globe-

is showcasing that “we are getting back on track”. Myntra is posting “STAY Safe Stay

Home”. So this is the story experienced by all the available online merchants in the phase of

the epidemic.

Figure 4:
AMAZON’S THANKYOU MESSAGE

As shown in Figure 4 Amazon one of the largest e-commerce player is coming forward to

thank the doctor’s workers, volunteers, picker suppliers, drivers and everyone who is

contributing towards fighting with this epidemic.

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In Figure 5 Amazon is supporting the lockdown announced by the Indian government and

promoting the safety message by staying at home and following the WHO norms.

Figure 5
(AMAZON PROMOTING STAY HOME STAY SAFE)
Like other online merchants in Figure 6, Myntra is also supporting the cause and making

people aware of the benefits of staying and staying fit. Even Big Basket, India’s largest

online food and grocery store has stood for the cause and initiated contactless delivery option

for all their customers as precautionary measure to fight against Covid-19. They are trying to

make people to ‘be a caring shopper’ by planning their grocery and essential good

requirement for next 3-4 weeks and placing the bulk orders so as to ensure safe and easy

delivery to customers of a locality in one go.

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 Summary of Key Initiatives Taken by Online Players

S.No Online Players Key Initiatives for consumers

1 Amazon  Increasing capacity for grocery delivery from Amazon

Fresh and Whole Foods Market as quickly as possible.

 Enhanced cleaning at all Whole Foods Market stores and

now open one hour early for customers who are 60+ years

old in the U.S. (70+ years old in the UK).

 Focusing on high-priority items to ensure the fastest

delivery of household staples, medical supplies, and other

high-demand products coming into our fulfilment centers.

 Vigorously combating price gouging to help protect

customers, help ensure fair pricing, and combat those

seeking to profit off the COVID19 crisis.

 Giving our customers more time to return items.

 Our Amazon and Alexa devices help keep customers stay

connected and informed.

2 Flipkart  Working closely with marketplace partners to ensure

adequate availability of consumer sanitary products like

hand sanitizers, gloves, and masks.

 Flipkart Travel is offering a full refund (including

convenience fee) on cancellation and rescheduling of air

tickets booked on Flipkart Travel.

 Working closely with our sellers to urge responsible

pricing and behaviour. Products with fake claims and

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 inflated prices are being removed an ongoing basis.

 Working with our sellers to replenish products and

encouraging them to be fair in the prices they are

proposing.

3 Big Basket  Selling 1199 essential products including groceries, fruits

and vegetables, baby care and feminine hygiene items.

 Curating our product selection to reflect only the essential

products needed at this time of Covid-19 to makes our

operations easier and helps us serve more customers.

 Vigorously combating prices by offering discounts to help

customers.

 Requesting and taking combined bulk orders of self and of

neighbours to initiate easy delivery to a locality in one go.

 Increasing our technical server capacity by 50% to enable

our app/website to manage more traffic which will help in

serving more orders.

 Initiating a refund policy on cancellation of order by

taking 7-9 days to credit the money back into customers

account.

4 Nykaa  India’s largest Omni-channel beauty destination is offering

upto 70% off on all the essential hygiene and beauty

products.

 Accepting pre-paid orders for essentials like personal

hygiene products, hand sanitizers, sanitary napkins, and

more, although with longer delivery timelines than usual.

 Initiating ‘stay safe at home’ by promoting buying of

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 beauty tips through beauty guides and videos.

5 Snapdeal  Ensuring full access to the Snapdeal platform across

the app along with full functionality to ensure

customers continuous purchasing and tracking of their

orders.

 Tied up with dealers in local grain markets, FMCG

wholesalers and medical equipment dealers for e-

tailoring and delivering essential goods within 6-10

days

 Maintaining constant touch with our courier partners

to ensure that delivery of orders is run under high

levels of safety and hygiene norms.

 Working closely with our sellers to ensure that the

orders placed can be collected quickly for their

onward journey to customers.

 Ensuring that 100% of our team members are

working from home ensuring their safety.

 Prioritizing the deliveries of essential goods to ensure

timely delivery to our customers.

 Ramping-up on-ground support and hiring in addition

to offering incentives to supply chain and delivery

executive engaged in grocery and essentials to

enhance delivery capacity.

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 Limitations

Social media – one of the buzz word in digital marketing. Today, businesses and marketers

are utilizing social media platforms to boost their marketing in this digital world. The shift

from traditional marketing to digital marketing can be seen clearly throughout the past

decade. The main focus of marketers is to get customers to their business. And the majority

of customers are only found on social media. According to data, more than half (52%) of

companies say social media has helped increase their revenue and sales and this number is

expected to increase.

But the thing is social media is becoming a complicated part of a business’s marketing

strategy. It is because there are many limitations of the social media marketing that marketers

face today.

The common social media marketing limitations and solutions:

1. Not Built for Businesses

This is the main disadvantage of social media marketing for business. As mentioned earlier in
the article, many businesses, especially the new ones, which do not have enough awareness
or reputation, are extremely not advised to focus on social
media marketing.

Even, if the well-reputed business does not invest much in

social media marketing in general.

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This is all mainly because what the core purpose of what social media is. In my

opinion, social media are built for connecting two or more people in a “relaxed fashion”.

Relaxed fashion here means, for example, chatting with friends, liking photos, following

people, watching funny videos, etc, just what you do with social media in day to day life.

True, social media like Facebook or Instagram are now supporting business promotion but

you cannot forget what the core purpose they are built for and that people’s preferences and

choices will still remain the same.

There’s simply no ‘buying-intent’ when people use social media.

2. Negative Feedback and Tarnish Brand Name

Being on social media means exposing yourself publicly to all kinds of people who may or
may not have the intention of coming across or seeing your brand.

You and I both know there is always a dark side to everything, and social media is no
exception.

With the internet being easily accessible more than ever before, there are people who always
aim to damage one’s reputation.

If your business is unknown or just starting to gain momentum, the chances are of getting an
attack is more likely.

Because it’s so easy to comment or engage, anyone can easily write negative comments on
your business. Bad things can spread out through social media and you know how
quickly things are.

3. Heavily Rely On Ads

Ads, Ads, Ads everywhere! In today’s online marketing, ads dominate.

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Social media companies are very aware of that too.
Facebook ads announcement was a revolution.

With its ability to target specific audiences based on

various parameters in-depth, it’s what makes it such
a powerful tool to generate leads online.
(Disadvantage for small business)

Advertisement is the main channel for these giants to make money on their platform.
That’s why they really focus on promoting and luring people to use their ads platform.

This is one of the biggest disadvantages of social media for your business.
Unless you pump in loads of money, which is not recommended if your business is still new
or trying the market.

4. Low ROI

Other main negative of social media for business is ROI. ROI from social media marketing is

probably one of the lowest in online marketing strategies. You have to put time, effort and

money to really make things work.

If you are a social media geek, you should know this very well. If you do not post or engage

with your fans or people on a regular basis, what you notice is your followers will start

decreasing.

In social networks, only the die-hard fans stay. And if your brand or business is not well

aware of a particular group of people or locations, no one is really going to be your true die-

hard fans, trust me.

So it’s really time-consuming to actually create that kind of audience unless you are well
known.

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5. Time-Consuming

One big misconception people have about social media is that: It’s FREE.

There are several free or low-cost social media tools available, but you have to deploy a

substantial amount of time to understand and learn the usage.

Time is not absolutely free.

Companies who have implemented social media activities on their marketing strategies

successfully understand how much time it takes to learn and implement all of them.

6. Need to Stay Engaged and Active

Speaking about time-consuming, with social media marketing, you need to always stay
engage, monitor and active your marketing effort.

Social media is constantly changing and if you’re not up-to-date, you’re going to fall behind
the others.

For example, have you ever wondered why you lose Instagram followers when you don’t
post after a week or two? That’s the reason.

People on social media are always looking for new and fresh things. As a marketer, that’s
your job to provide them.

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7. Difficult To Measure

Measuring your marketing effort on social media is just more difficult and complicated than
it sounds.

This particular con of social media marketing is what many business owners will have to
face.

At one point, you’ve got likes, comments, retweets and followers all over the place, at
another point; you simply can’t pinpoint exactly whether these aspects really matter for your
effort.

The engagement and interactions are just all over the place and with this, you can’t definitely
be sure about your brand awareness strategies.

8. Security and Privacy Policy Issues

One of the biggest negatives of social media marketing is the security and privacy-related
issues.

When you’re using social media platforms for advertising, you basically need to surrender
your information, both public and personal, in order to get the most out of your marketing
effort.

With social media platforms being a constant target for hackers or unethical people, your
information and data will never be safe.

Take a look at the latest Facebook data breach news, millions and millions of data have been
leaked and with this, you’re risking your business in the hands of unreliable platforms.
True, social platforms are constantly improving on this, but they will never be 100% safe.

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9. Limited Only To Social Media Platforms

When you do social media marketing, you’re essentially using social media platforms

like Facebook, LinkedIn, Instagram or Twitter to market and build brand awareness.

But this is only limited to social media. Unlike other marketing channels like SEO or SEM,

where you can expand your marketing effort to various

places, thus being more flexible, social media marketing

only stays on social media.

Another disadvantage here is that different platforms

require different strategies. This is basically wastage of

time, effort and money.

10. Doesn’t Work For All Group of People

You cannot target all people groups with your social media marketing efforts.

This is because a different group of people uses social media differently. In fact, some groups
may not even be present on social media.

This is the reason why for any online marketing strategies, you need to do research for your
target audiences.

Even that, a different group of people is active on different platforms. For instance, Instagram
is more famous among female teens whereas Facebook is used more by elderly people.

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 Data Analysis & Interpretation

Correlation:

Correlation here means a Pearson correlation which measures the strength and direction of

linear relationship between two variables.

Electronic Word of Mouth and Purchase Intention:

The Correlation coefficient between electronic word of mouth (EWOM) and purchase

intention (PI) is (0.307) which is significant and positively correlated with each other. This

proves that electronic word of mouth (EWOM) has a significant impact on consumers'

preferences or purchase intention. As it is according to our proposed hypothesis so it is

accepted. Therefore electronic word of mouth has a significant impact on the purchasing

decisions of consumers (Chevalier and Mayzlin 2006). Other literature also supports these

findings as evident from the literature review.

Seller Created Information and Purchase Intention:

The correlation coefficient between seller created information and purchase intention is

(0.303). This shows that there is a significant positive relationship between the two variables

and establishes the fact that increasing information from the seller or producer the consumers'

preferences will increase. This proves our proposed hypothesis in the research.

Information Acquisition and Purchase Intention:

There is a strong positive relationship between information acquisition and purchase

intention. The correlation coefficient between information acquisition and purchase intention

is (0.407) which is significant and strong positive linear relationship. This proves the

82
proposed hypothesis. As the customers get more and more information from friends and

groups about the products and services their purchasing behavior is changing and vice versa.

Customers' Perceived Product Quality and Purchase Intention:

The quality of the product is important for the customers. There is a positive linear

relationship between product quality and purchase intention as by increasing one the other

will increase automatically. The correlation coefficient between product quality and purchase

intention is (0.184) which is positive and significant as well. This clearly supports the

proposed hypothesis.

Customers' Perceived Risk and Purchase Intention:

There is a weak negative relationship between customers' perceived risk and purchase

intention. The correlation coefficient between these variables is (-0.056) which is weak

negative relation. By increasing the customers' perceived risk will decrease slightly their

purchase intention. But the value of correlation coefficient is not valid. This also proves our

proposed hypothesis. The values of Correlation Coefficients are given in table no.1.

83
All the observations are independent as the researcher checks it through Durbin-Watson

statistics (1.512).There is a linear relationship between each independent variable and

dependent variable. When checked there is also a linear relationship between all independent

variables (EWOM, SCI, IAC, PQ, and PR) and purchase intention. The data was checked for

multi-collinearity and there was no significant relationship between any two independent

variables. From the correlation table 1 all the values are less than .70 so the chances of

collinearity become less. The data was normally distributed, that is, neither it was too skewed

nor was it kurtotic. The values of skewness and kurtosis for each variable falls in between the

standard range ±1. The values for skewness and kurtosis for EWOM were -.238 and -.686,

for PI the values were -.398 and -.030, for SCI the values were -.387 and -.080, for IA the

values were -.479 and -.177, for PQ the values were -.863 and .334 and for PR the values

were -.148 and -.320 respectively.

84
Findings

85
 Recommendations

In the future some additional dimensions should be add to the research model to find out the

dominant factors that affect the purchase intention of those consumers using social media. As

the e-commerce is a global phenomenon so the factors which the researcher has studied in

this research should be investigated across the multinational settings to device generalized

results for multinational organizations. The researcher suggests that in future studies must

focus on the impact of social media on the consumers' cognitive, affective and behavioral

attitudes should be seen to draw some practical implications for organizations. Future

research may also take all segments of society such as children; professionals etc to

generalized it for the whole society. Because social networking sites in social media are the

hub of interaction for every individual of all age groups. The impact of a product's facebook

page on consumers' preferences should be studied to draw some practical implications for the

companies. The Facebook page of a product or company is like by users of social media and

then it is rated on the bases of likes. It is also suggested that relationship of social media with

hospitality and service industry should be investigated. The impact of social media on

organization's efficiency, productivity, profitability, growth and market share should be

studied to draw some practical implications for many other organizations.

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 Conclusion

There is no escaping social media these days, either for individuals or for businesses. Today,

it is impossible to separate social media from the online world. The social media conversation

is no longer considered a Web 2.0 fad it is taking place in homes, small businesses and

corporate boardrooms, and extending its reach into the nonprofit, education and health

sectors. From feeling excitement, novelty, bewilderment, and overwhelmed, a growing

number of people now speak of social media as simply another channel or tactic. Blogging

can have a very positive effect on your Company’s branding & growth. As per the Hubspot

report, Customers with blogs gathered 68% more leads than customers without blogs. It is

imperative to understand that today, social media have exponential potential. They are part of

an ever-growing online network of people who discuss, comment, participate, share and

create. Whether you are an individual, a startup, small business or a large corporation, an

online presence and an ongoing conversation with your constituents is a baseline requirement

and will take time and expertise. Companies are diverting resources and rethinking their

traditional outreach strategies. And as the social media wave dissipates into the vast ocean of

connected experiences, the term itself will become an entry in dictionaries and encyclopedias

and we will embark on a new era of knowledge, accessibility and experiences unbound by

distance, time or physical walls. It is high time that every business adopts social media and

takes it seriously!

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 Bibliography

 https://money.cnn.com/quote/profile/profile.html?symb=AMZN

 https://etaileast.wbresearch.com/blog/amazons-engaged-buyers-

drive-social-media-revenue

 https://www.ecomengine.com/blog/amazon-social-media-marketing

 https://en.wikipedia.org/wiki/Amazon_(company)

 https://www.wsj.com/market-data/quotes/AMZN/company-people

 https://etaileast.wbresearch.com/blog/amazons-engaged-buyers-

drive-social-media-revenue

 https://www.smartinsights.com/digital-marketing-strategy/online-

business-revenue-models/amazon-case-study/

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Annexure

89
90