Literature Review

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Literature ReviewSeptember 62013

Student ID: N0466534

Supervisor: Adam Smith

Word Count: 3,212

Literature Review

Table of ContentsAbstract..........................................................................................................................................2

Introduction....................................................................................................................................3

Different Aspects of Social Media that can Influence the Image of a Brand..................................4

Identity........................................................................................................................................4

Conversations............................................................................................................................5

Sharing.......................................................................................................................................5

Presence....................................................................................................................................5

Relationships..............................................................................................................................5

Reputation..................................................................................................................................6

Groups.......................................................................................................................................6

Establishing the Brand Identity by Using the Honeycomb Model..................................................6

The Connection between Customer Relationship and Social Media.............................................9

Maybelline New York: a Case when Social Media Improved the Brand`s Image through Social CRM.............................................................................................................................................11

The strategic choices of IMC in the Online Space.......................................................................13

Conclusion...................................................................................................................................13

References..................................................................................................................................16

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Literature Review

Literature Review

Abstract

The literature review has as a topic the following research question: “Can social media change

the image of a business by improving the relationship with its customers?” and the aim is to

clearly answer it by in depth analysis of various academic sources, which supports forming a

personal perspective. The first part of the report presents the core model, around which the

arguments are build, being the Honeycomb model of Kitetzman et al. (2011), presenting all the

dimensions that can influence a brand`s image on social media. In the next part, the Keller`s

(2001) model for enhancing a brand image was shown, explained and adapted to the

Honeycomb model (Kietzman el al., 2011), creating a new model, with the aim of showing the

connection between improving a brand image and the social media space and secondly and

how this can be done by presenting the role of each dimension that forms the Honeycomb. The

succeeding section refers to the connection between social media and the Customer

Relationship Management (CRM) including two researches conducted by IMB Institute for

Business Value (2011), one of them showing an existing gap. The analysis of the topic goes

from a slightly general point of view to a in depth one, when the case of Maybelline New York

brand is presented, section succeeded by the importance of the strategic choices in terms of the

promotional mix on the variety of social media channels.

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Literature Review

Introduction

According to Boone and Kurtz (2007), the guiding principle followed by the organizations in

order to connect to their target markets is the Integrated Marketing Communications (IMC),

which uses various combinations of promotional mix (Blackshaw and Nazzaro, 2004), with the

aim of producing a “ unified customer focused” message (Boone and Kurtz, 2007:488). But

according to Mangold and Faults (2009), what is the consumer-generating popular method to be

used nowadays, is the social media. So in order to achieve a company`s objectives,

contemporary marketers created IMC strategies that incorporate social media in all its forms (Li

and Bernoff, 2008).

Moreover, social media is a way for consumers-sponsored communications (Rashtchy et al.,

2007), a phenomenon that influences the customers in having requirements in terms of

immediate access to information about brands, products, at their own convenience (Vollmer and

Precourt, 2008), information on which they base their purchase decision (Lempert, 2006), being

considered by them a trust-worthy source (Foux, 2006). So taking into consideration the fact

that social media is so popular amongst customers and is considered a trust-worthy source of

information, having the capacity to spread both positive and negative word of mouth in a timely

manner, can this method of communication have an effect and “ change the image of a brand

by improving the relationship with its customers?” The report will be structured around this

research question and the answer will become the thesis of the primary argument.

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Different Aspects of Social Media that can Influence the Image of a Brand

According to Kietzmann et al. et al. (2011), the seven functional blocks of social media, as can

be seen in the Figure 1, refer to the different aspects, such as identity, conversations, sharing,

presence, relationships, reputation and groups. More exactly, the framework helps examine

different facets of social media, and its implications. In this case, the framework of Kietzmann et

al. (2011) has been adapted to the brands` context and not to the individuals, as was mainly

described by the author.

Fig.1, The Honeycomb of Social Media (Kietzmann et al. et al., 2011)

IdentityMore exactly, according to Culnan, McHugh and Zubillaga (2010), the identity block refers to

how the brands create their identities by disclosing corporate information. For example,

Waitrose uses the Facebook page (Waitrose Official Facebook Page, 2013) amongst all the

other social media channels, where its identity is created in a consisted way, integrating social

media in the theirs IMC strategy, portraying the brand as being a healthy choice, social

responsible, connected and carrying about its customers, the same image created in the offline

medium and on the other online channels such as Twitter, Youtube.

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ConversationsIn terms of the conversion dimension, it refers to the extent to which a brand communicates to

its customers, having an essential influence, as how Kietzmann et al. (2011) states: “The

conversations are like pieces of a rapidly changing puzzle which, when aggregated, combine to

produce an overall image or message” (2011:476). An example offered here to contrast the

conversation dimension between two brands, is the one of Waitrose again, that responds to its

customers` posts and questions, involving, showing they care about their opinion, and Primark,

that just carries a monologue, by only posting and not engaging in conversations and answering

( Waitrose and Primark Facebook Official Pages, 2013).

SharingSharing is about the extent, to which a brand exchanges information, opinions, etc., and another

aspect to it is the content and the meaning of what is shared (Kietzmann et al. et al., 2011).

Moreover, according to (Engestrom and Kerosuo, 2005), organizations should be careful when

making a statement, firstly because it represents their values and creates or adds up to their

image and secondly, because when fuelled up by viewers, the conversations could rapidly turn

into either a positive or negative word of mouth (Borgatti and Foster, 2003). An example offered

by Lubin (2012) for Business Insider Website (2013), in order to show the impact of

conversations on a brand, is the McDonald`s case on their Twitter Page, where a twit for

McDstories campaign (“When u make something you pride, people can taste it," McD potato

supplier #McDstories) was interpreted wrong by the viewers, responding in inappropriate ways,

leading the brand to cancel it and as a result, lose some of the sales.

PresenceRegarding the presence block of the social media, here can be considered the Dr. Pepper

example, brand which was one of the 5 finalists for the “Best Presence on Facebook” offered by

the Shorty Industry Awards (Official Website, 2013), increasing the engagement with customers

by 85% on the Facebook Page, gathering 3.4 million likes, after realizing that their engagement

does not go to the right direction and made a change.

RelationshipsIn terms of the relationship that a brand has with its customers, according to Krackhardt (1992:

218), strong relationships are ‘‘long-lasting, and affect-laden’’ and in contrast, according to

Hansen (1999:84), the weak ones are “infrequent and distant”. Also, according to Granovetter

(1973), relationships can be formal, friendly, etc. and in addition, according to Muniz and Schau

(2007), even though connections do not represent everything, they are essential as they

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express a sense of trust and security, in terms of the numbers of followers, likes, etc., and

depending to the extent of these factors, the relationships aspect can act as an “influencer”.

ReputationAccording to Kietzmann et al. (2011), reputation can have different meanings, but when talking

about social media, it refers mainly to trust. In addition, according to Fombrun and Van Riel

(2004) and to Van den Bosch, De Jong and Elving (2005), the reputation of a brand represents

a significant influence on the customer`s purchasing decision and on the image of the products.

Moreover, according to Kania (2001) and to a research carried by Cheskin Research and

Sapient (1999), another aspect that builds up the reputation is the level of familiarity that the

customers` have with a brand, unless the customer has a negative image of the brand.

GroupsAccording to Roberts and Dunbar (2011), the group dimension represents the extent to which

groups or communities can be formed on the social media platform. In terms of the brand

context, according to Keller (2001), organizations usually have groups of fans of followers that

identify themselves with the brand. The importance of this aspect is shown in the argument

given by Fournier (1998), who states that customers have a comfort in seeing brands not as a

“passive object of marketing transaction” (1998:344), but as a member of the relationship who is

active and contributing, forming an interdependence.

Establishing the Brand Identity by Using the Honeycomb Model

According to Low and Lamb (2000), a strong factor that stays behind the consumer`s purchases

is the perceived quality, personally believed to be close related to the brand image, opinion

based on the argument of Monroe and Dodds (1988), argument detailed by Jacob, Olson, and

Haddock (1973), explaining that the perceived quality is built on different cues, both intrinsic and

extrinsic (Richardson, Dick and Jain, 1994) such as price (Leavitt, 1954), brand image (Allison

and Uhl,1962), packaging (McDaniel and Baker,1977), etc. Moreover, according to Aaker

(1991), perceived quality is also based on the subjective evaluation of the customers of the

brand. A way to build brand image, according to Keller (2001) is by following four steps, as can

be seen in the Figure 2, these being: establishing brand identity, thought to be done by creating

brand awareness; creating brand meaning, considered to be done by using appropriate

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associations; drawing positive brand responses and last but not least, forming relationship with

customers based on loyalty.

Fig. 2, The 4 Steps Model, Keller (2001)

Linking Keller`s (2001) four steps model with Kitzmann`s Honeycomb model (2011) in order to

adapt the Keller`s model to the social media context, a new framework is created with the aim of

showing firstly, the connection between the establishment of a brand image and the social

media platform and secondly, how this could be done be presenting the role that each of the

seven blocks of the Honeycomb model can have in order for the image to be created online, as

can be seen in the Figure 3.

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8

PreRel

IdeRepGro

Con

Sha

PreRel

IdeRepGro

Con

Sha

PreRel

IdeRepGro

Con

Sha

PreRel

IdeRepGro

Con

Sha

Who is the brand?

Awareness

What is the brand?

Associations

What do consumers think about the brand?

Perceived quality

The level of connection of the consumer with the

brand

Loyalty

Ide: identity; Pre: presence; Rel: relationships; Rep: reputation; Con: conversations; Gro: groups; Sha: sharing.

Fig3. Establishing Brand Identity by using the Keller`s 4 Steps Model

(2001), adapted to the Honeycomb model (Kietzmann et al., 2011)

Literature Review

The Connection between Customer Relationship and Social Media

According to Evans and McKee (2010), a proper practiced social media marketing seeks to

engage a brand`s customers in the online platform, the place where they naturally spend time.

More detailed, Evans (2012), explained how the Social Feedback Cycle expands its role, when

the identity, the ease of publishing, the predilection to publish and share information regarding

the product-related decision making process are combined. Concluding that, the Social

Feedback Cycle, one of the areas of the traditional CRM (Customer Relationship Marketing),

wraps literally the entire business, as can be seen in the Fig 4.

Fig4. The Social Feedback Cycle, Evans and McKee (2010)

Moreover, according to Mangold and Faulds (2009), customers feel more engaged with a brand

when they are able to submit their feedback. In addition, products that are easy to use, fun,

intriguing, and highly visible or that engage their emotions are more expected to create

conversations than the ones that do not match that criteria, as Dobele, Toleman and Beverland

(2005) explain.

But on the other side, even though according to Keller (2003) and Safko (2010), social media is

a consumer-generating method, the results of a research conducted by IBM Institute for

Business Value (2011), in an article by Baird (2011), the Research Leader for IBM and Parasnis

(2011), the Vice President of IBM, showed a different side of the argument. According to this

research, (IBM, 2011), made on 1000 customers worldwide, in terms of who is using social

media, the reasons of why they use it, what sites do they use more frequently and last but not

least, what makes the customers engage with the companies, was concluded that the

customers` willingness to engage with the companies should not be taken for granted or easily

assumed. More detailed, according to Baird (2011) and to Parasnis (2011), the results of the

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research were the following: even though the social media is astonishingly booming, only a

small percentage of the users engage to a regular base by posting or responding, also that this

platform has as a main use socializing with family and friends and not engaging with brands and

that there is a gap between what companies think the customers want and what they really care

about.

More exactly, Baird (2011) and Parasnis (2011), explain that customers expect from their

interactions on social media with a company, in exchange for their personal data, time and

endorsement, something tangible. Moreover, the IBM research (2011) results also showed that

the majority of businesses believe that social media will increase advocacy, while only 38% of

the customers do agree and over 60% believe that the passion for a brand is essential for social

media engagement. A more detailed argument regarding the gap between the companies’

perception and the customers’ expectations, reasons, regarding the interaction on social media

companies` sites are offered in Fig 5.

Fig.5 CRM Study, IBM Institute for Business Value Analysis (2011)

Although Franzak, Pitta and Fritsche (2001) and Johnson and Bruwer (2003), explained

that companies in general are seeking to engage with their customers through the use of social

media, where the target market spends time naturally (Evans and McKee :2010), believing that

this increases advocacy (IBM, 2011), according to another research carried by IMB Institute for

Business Value (2011) on 351 business executives in different countries: United States,

Canada, the United Kingdom, France, Germany, India, China, Australia and Brazil, there is still

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a considerable percentage of companies that either do have a profile, but do not have presence,

or do not have a profile at all, as can be seen in the diagram from Fig.6.

Fig 6. CRM Study, IBM Institute for Business Value (2011)

Maybelline New York: a Case when Social Media Improved the Brand`s Image through Social CRMAccording to Shorty Industry Awards, the 5th Annual Edition (Official Website, 2013), which

honors the best brands, agency and professionals on social media, the winner for the year 2013

in the category “Best Overall Brand Presence on Facebook” was won by Maybelline New York

with its digital strategy in the Indian market. More exactly, Bharucha , the Digital Marketing

Manager and Karia, the Online Strategist (Shorty Industry Awards Official Website, 2013),

explained that the aim of the campaign was to engage customers in discussions and funny

conversion and moreover, the challenge was to promote the BB cream product only through the

digital campaign and the risk taken was that even though the cream was targeted at women, in this

case was marketed through men in the online platform.

Building a relationship by engaging the customers in a conversation is important (Kim and Ko, 2012)

because as Kumar and George (2007) explain, the value brought by a customer to a brand is not

only measured in terms of the profit from each transaction, but is the total that that customers

provide during the relationship with that particular brand. Moreover, according to Kim et al.

(2010) and Lemon, Rust and Zeithaml (2001), the customers` equity is the most important long

term value that a brand has. To adapt the theory to the Maybelline New York case, what the

digital team has done firstly was that they provided a platform where men could express their

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complaints regarding the time it takes for women to get ready (Bharucha and Karia for Shorty

Industry Awards Official Website, 2013). The subject engaged on Facebook 38, 000 men in 15

days.

The next step was to create a fan age where the battle between sexes was maximized by the

creative team around the subject “Women take forever to get ready”. Last but not least, the

solution provided and agreed to, by both sexes, was for women to go “Nude”, being the tone of

the BB cream. The campaign was also promoted by the use of an application, where 2,000

women revealed the BB cream picture, virtually, pixel by pixel. The success of the customer

‘engagement was shown by the positive feedback regarding sells, the brand having sold 75,000

units only in the first month (Bharucha and Karia for Shorty Industry Awards Official Website,

2013). Moreover, as Dobele, Toleman and Beverland (2005) stated, a brand that have a fun

product or make use, when promoting, of the fun aspect are expected to create more

conversations than the others, theory proved by the Maybelline New York example.

This example shows the importance of the different dimensions from the Honeycomb model

(Kietzmann et al. et al., 2011) in achieving a positive brand image and increased sales as a final

result. The dimensions present in the Maybelline digital campaign are: the presence: high in this

case (Award Winner), structuring and providing platforms for the conversations to take place;

the relationships: the brand showed interest in the customers` opinions and thoughts; the

groups: the customers were divided into men and women by being offered a subject on which

they had contrasting opinions in order to maximize the conversation, in a relaxed, funny context

and moreover, all these mixed aspects adding on the identity of the brand by creating greater

exposure (Hennig-Thurau et al. , 2010) and positively influencing the reputation (see Figure 7).

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Aknowledgement of the brand Commitment Influence Response

75,000 units sold in the first

moth

Groups

Reputation

Relationships

ConversationsIdentity

Presence

Fig.7, How Maybelline New York Achieved Positive Brand Image, using the Honeycomb model of Kietzman et al. (2011)

Literature Review

The strategic choices of IMC in the Online SpaceBut on the other side, according to Ghose, Telang, and Krishnan (2005), customers’ interactions

can also represent the threat of cannibalizing the sales of a new product and not only increasing

the value of the products (Schau, Munitz, and Arnould, 2009). More exactly, as the Integrated

Marketing Communications uses a combination of promotional mix, as Duncan and Everett,

(1993) and Rust, Lemon and Zeithaml (2004) explain, and “recognizes the added value of a

comprehensive plan that evaluates the strategic roles of a variety of communications

disciplines” (1993:33), both online and offline, where the role of the customers drives the

success (Ponsonby & Boyle, 2004), the same strategic choice takes place in the social space,

states Clark, a Senior Marketer from Coca Cola for Distributing Marketing Organization (Official

Website, 2010-2011).

More detailed, Mitchel (2013) writes in an article for Distributing Marketing Organization (Official

Website, 2010-2011), based on the interview with Clark that sending a consistent brand

message integrated on different channels, where the target audience is being sensitive in

different nuances, depending the channel, is a challenge. Moreover, the software platform that

Coca Cola uses, is following three quotes: that no single media is strong in the same way as a

combination of media, that is required for marketers “having a single, integrated conversation

across those screens…When we do this well, we create significantly higher impact than any of

those screens could do on their own” (Clark, in the article of Mitchel (2013) for Distributing

Marketing Organization, Official Website, 2010-2011) and last but not least, that is difficult and

challenging to integrate so many moving parts in real time, while the brand dialogue is

constantly changing (Mitchel, 2013). An example of the extent of negative impact that social

media can have on a brand image and evidently its sales is the fact that one of the telecom

clients of the McKinsey Company have seen a loss of 8% , offsetting their TV spend, as a result

of a negative sentiment in the social media space ( Gordon, McKinsey Principle, for an Ad Age

article, 2013).

Conclusion Taking into consideration the different arguments offered by the presented and analyzed

academic sources and the real-case examples of different brands, has been personally

concluded that social media can change the image of a brand in a positive way by engaging

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with the customers through an effective CRM and by strategically choosing the promotional mix,

which has to send as Clark, the Senior Marketer from Coca Cola for Distributing Marketing

Organization (Official Website, 2010-2011) stated, the same consistent, clear brand message,

in a real-time context on all the social media channels used by the brand. Also the image of the

brand could be affected and lose its customers if the social CRM is approached in a wrong,

ineffective way.

Moreover, after an in-depth research through the official websites of social media management

and engaging platforms, social content marketing companies, online selling companies, digital

marketing agencies , analyzing their methods and the recommendations of their founders and

CEOs`, together with the analysis of the academic sources, a plan to achieve/improve the

image of a brand on social media has been created, as can be seen in Fig.8., focusing on the

customers, by building trust and loyalty (Woodcock, Green and Starkey, 2011).

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Fig.8, Plan to Improve a Brand`s Image on Social Media through Social CRM

Literature Review

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Schiff, J.L. (2013). “Social media and customer relationship management (CRM) experts share their tips for how organizations can leverage social media to improve customer engagement”. Available:http://www.cio.com/article/734094/17_Tips_for_Achieving_Social_CRM. Last accessed 03/09/2013.

Shorty Industry Awards. (2013). “Best Overall Brand Presence on Facebook”. Available: http://industry.shortyawards.com/category/5th_annual/facebook_brand/Lw/dr-pepper-facebook-program. Last accessed 28/08/2013.

Social Centiv Official Website (2013).

Social Compass Official Website (2013)

Sprout Official Website (2013).

Straley, B. (2010). “How to: Target social media influencers to boost traffic and sales”. Retrieved July 29, 2010, from http://mashable.com/2010/04/15/socialmedia-influencers/.Strong Brands. Marketing Science Institute, Report No. 01-107.

Van den Bosch, A. L., De Jong, M. D., & Elving, W. J. (2005). “How corporate visual identity supports reputation”. Corporate Communications: An International Journal, 10(2), 108-116.Waitrose Facebook Page (2013).

Woodcock, N., Green, A., & Starkey, M. (2011). “Social CRM as a business strategy”. Journal of Database Marketing & Customer Strategy Management, 18(1), 50-64.

Wyshynski, G. (2009). “Inside the NHL's social media innovations, growing pains”. Retrieved October 1, 2010, from http://sports.yahoo.com/nhl/blog/puck_daddy/post/Inside-the-NHL-s-social-media-innovations-growi?urn=nhl-199092.

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Literature Review

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