What is the best approach to integrate Traditional Media and Social Media into a single strategy?

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What is the best approach to integrate Traditional Media and Social Media into a single strategy?

  1. 1. What is the best approach to integrateTraditional Media and Social Media into a single strategy? By Carine Esteves -Supervised Jessica LICHY MBA- MDEI 2009-2010
  2. 2. ACKNOWLEGMENTThis research could not have taken its present shape without the help of myfriends, supervisor and colleagues, whom I wish to thank all for contributing insome way to this work.I am grateful to Ms Jessica Lichy Reader, under whose able guidance andsupervision this study has been undertaken. I am thankful to her for providingme guidance and support for this study.I would also like to thank Markus Pfeiffer who has been always very prompt inreplying to all my online queries and providing me guidance from time to time.I am sincerely grateful to all the other academicians who have lent me supportand permitted me to cite their publications.I express my deep sense of gratitude to Mr Kamel Touzaline for his constantsupport and encouragement.This research would not have been possible without the support of Barbara K.Kaye, Antony Mayfield Andrew T. Stephen, Anton Koekemoer and the WSI teamwho spared their precious time to fill in the questionnaires and providingvaluable information for this study.I express my sincere gratitude to Charlotte Malaurie for her overwhelmingsupport during the various stages of this research.A special thanks goes out for all of them. 1
  3. 3. ABSTRACTThe purpose of this study is to provide business with a roadmap to developingand implementing an effective media strategy. The goal is to find the bestallocation of traditional media and social media, by exploring the social mediaas a vehicle to listen, educate, support and market to customers and potentialcustomers. With a user base of nearly 600 million worldwide, online networkersprovide business with a global audience and a good reason to learn about whatInternet-based social networks are and to use them to reach a target audience.Social networks can help businesses to connect and market themselves toconsumers.Through an exploratory research, this study shows that social media as vehiclefor advertisement have great potential. Book, articles, blogs and websitesanalysis bring us to two confronting ideas: (1) traditional and social media are incompetition and (2) traditional and social media complement each other.Indeed, as time allocated to media has remained the same, consumers can‘t bereceptive to traditional media and to social media. Consumers are either,passive with traditional media, or active, with social networking thanks toInternet-based activities. A time displacement, referring to the idea of having anew form of activity replacing an older one, is caused by new activities usuallytechnology-based such as the Internet as regards of television. Indeed, bothtechnologies are in competition and one causes decline of usage to the other. Asocial networker user may spend time on social networks using it as asubstitute for other activities that served similar function such as watchingtelevision, listening to radio or reading printed media. In that, they appear ascompetitors.On the other hand, this study also approaches the social media from amarketing point of view, by analyzing the effectiveness of the usage of Internetas a media for advertising products. As a result of this analysis the study showsthat the effectiveness of such media depends on the characteristics of theproduct advertised and the degree of involvement of the customer in thepurchase decisions. 2
  4. 4. Showing that Internet, through social media advertising, is efficient for one typeof products – high involvement product as car, life insurance, while traditionalmedia advertising is efficient for another type of products – low involvementproducts as toothpaste, vitamins. In that, they do complement each other.In addition, six interviews with professional and professors acting in the socialworld, stresses that both traditional and social media do not compete. Insteadthey do complement each other. The study highlights that people do believe inthe complementary role of traditional and social media in marketing andadvertisement. Multiple media channels have become the dominant strategy;and, actually, to some professionals, the convergence of both media hasalready begun. To some point, they are going converge to form one singlemedia.As a result of this research analysis, suggestions of media allocation time aredeveloped focusing on three main marketing objectives: marketing objectives:increasing sales, educating consumers or increasing product and imageawareness.Depending on these objectives the time allocated to one media has to beemphasized. With an objective of increasing sale, social media turns out to meless effective than traditional media. Indeed the media to be emphasized is thetraditional one, while social media marketing is the most effective for brandawareness. However, the suggestion of time allocation to reach the objective ofeducating consumer is even. 3
  5. 5. TABLE OF CONTENT1. INTRODUCTION 62. LITERATURE REVIEW 72.1. UNDERSTANDING MAIN CONCEPTS 72.1.1. WHAT ARE TRADITIONAL MEDIA? 8Publishing 8Broadcast 102.1.2. WHAT IS THE INTERNET? 112.1.3. WHAT IS SOCIAL MEDIA? 112.1.4. FORMS OF SOCIAL NETWORK SITES 132.2. ANALYZING FACTORS OF MEDIA CHOICE AND EFFECTIVENESS 152.2.1.1. Time displacement 162.2.2. FACTORS AFFECTING THE CHOICE OF MEDIA 202.2.3. FROM ONLINE TO OFFLINE 282.2.4. OBAMA08 34Public Engagement Model 372.3. FORMULATING HYPOTHESIS 433. RESEARCH METHODOLOGY 453.1. INTRODUCTION 453.2. METHODOLOGY SELECTION 453.2.1. QUALITATIVE RESEARCH 45Survey Methods 463.3. PROBLEM DEFINITION 46Research question 463.3.2. RESEARCH OBJECTIVES 47Interviews 474. FIELDWORK 494.1. VERIFYING HYPOTHESES 494.1.1. H1: TRADITIONAL MARKETING, AS A STAND-ALONE STRATEGY, IS NO LONGERENOUGH 494.1.2. H2 : SOCIAL MEDIA ARE CREDIBLE AND TRUSTWHORTHY 514.1.3. H3: SOCIAL MEDIA MARKETING, CAN‘T STAND ALONE 534.1.4. H4: SOCIAL MEDIA AND TRADITIONAL MEDIA CONVERGE. 55 4
  6. 6. 5. RECOMMANDATIONS 575.1. SUGGESTION OF TIME ALLOCATION 575.1.1. INCREASING SALE 615.1.2. EDUCATE CONSUMER 635.1.3. BRAND AWARENESS 656. CONCLUSIONS 707. BIBLIOGRAPHY 718. APPENDIX 78APPENDIX 1 :THE FCB GRID 78APPENDIX 2 : INTERVIEWS 79 5
  7. 7. 1. INTRODUCTIONWhether you call it Web 2.0, the social Web or any other neologism, the newnetwork economy is about communities, collaboration, peer production, user-generated content and co-creation. The customer, more commonly called theuser, is directly involved into the personalization of the product or service andshares it widely through the Web. It is now known as the place to be to connectwith customers since consumers behavior has changed.The advance in social media technology has heavily impacted traditional media.Internet marketing strategies have emerged from it and many businesses arenow wondering how to implement web 2.0 tools into their media strategy. Thesocial media influence traditional media as a competitive replacement: it hasreduced the use of traditional media since consumers‘ media consumptiongenerally keeps constant. The time allocated to traditional media hasdramatically dropped- in most cases by over 50% since 1989. Obviously, usingtraditional media only is no longer enough to inform the customer. The impact ofthe online media on the use of the traditional media has caused a rapid declineof television audience as a result of the increasing popularity of the Internet andother social-networking activities.Used for a wide variety of purposes, social media help people in communicatingwith friends and family, meeting new people, acquiring information about news,health, and other topics, entertainment, and commerce. Indeed friends‘recommendations on restaurants or movies are heavily influencing consumers.However, new social media is still not heavily trusted and sometimesmisunderstood in marketing management. This study sets out to analyze theextent to which these new media can be integrated alongside traditional media. 6
  8. 8. 2. LITERATURE REVIEWIn this chapter, we will start by defining the main concepts of mediacommunication from traditional media to social media, which are also defined asoutbound and inbound marketing. 2.1. UNDERSTANDING MAIN CONCEPTSBefore engaging into an analysis, it is helpful to define the main relatedconcepts. The most important concept to understand is that all media is profit-centered. Media is business. ―Whether we believe a media product to be purelyentertainment informational or even altruistic in its intent, the goal of all media isultimately to make money‖ and ―the method used to generate profit involvescarefully crafted messages delivered to the public through various forms ofmedia products. ― (Beth Lane., 2010 ).The core concepts of media are that all delivered messages are constructed,using a creative language with its own rules in order to gain profit and/or power.It is important to know that different people experience the same messagesdifferently. (Seth Ashley, 2010)Inbound marketing is defined as marketing strategy that focuses on being foundby the customer by publishing helpful information on a blog, social mediawebsite, etc. In contrast outbound marketing strategy (or traditional marketing)focuses on finding customers by building brand awarenessthrough advertising and promotion. (B. Halligan, D. Shah, 2010)Seth Godin related inbound marketing to ―permission marketing‖ (2001) whileoutbound is named "interruption marketing".The term ―permission marketing‖ is used because marketers obtain permissionbefore advancing to the next step in the purchasing process. They askpermission to send email newsletters to prospective customers. In other words,it is online advertising through websites and social medias 7
  9. 9. 2.1.1. What are traditional media? Defining traditional media is no longer clear. The explosion of digital communication technology and the fast growing use of Internet are leading to confusion on the subject. Traditional media are used to vehicle a message created by a person or a group of people sent through a transmitting device (a medium) to a large audience or market (Beth Lane 2007) By definition, traditional media, also referred as old media, is any medium used to transmit mass communication (Beth Lane, 2007). It includes exclusively media introduced before the use and advent of the Internet. Until recently traditional media were clearly defined and were comprised of the five mass media industries such as movies, recordings, radio and television broadcasts and most print publications like magazines, books, newspapers (Wikipedia, 2010). To get a better understanding of what these media are, we will try to define each of them. . Traditional media are classified under categories as defined here after: Printing, including magazines and newspapers and even highway billboards and transit posters from the late 1400s Broadcasting, in the narrow sense, for radio (from about 1910 ) and television (from about 1950) More specifically these categories are described as following: Publishing Publishing is the industry concerned with the production of literature or information (The Future of Publishing, 2007) – the activity of making information available for wide public view. (Wikipedia, 2007)‖ Traditionally the term refers to the distribution of printed works such as books and newspapers. (Michael R. Peres, 2007). The printing media is the oldest form of media (Converging Media Trends, 2010) With a business point of view, publishing includes the development, 8
  10. 10. marketing, production, and distribution of newspapers, magazines, books,literary works and other works dealing with information (Wikipedia, 2010).MagazineA magazine is a periodical publication containinga variety of articles, generally financed byadvertising and/or purchase by readers.Published weekly, monthly or quarterly, they areoften printed in color on coated paper, and arebound with a soft cover.There are two categories of magazines:consumer magazines and business magazines.They can be classified as:- General interest magazines- Special interest magazines(womens, sports, business,etc) Figure A: The media Evolution (Extract from : Online Media and Search: The New Opportunity, 2007) 9
  11. 11. NewspaperA newspaper is a publication folded sheets that is issued daily or weekly andincludes local and international, news stories, advertisements, announcements,opinions, cartoons, sports news and television listings (n.d, 2008). Usually theyare printed on low-cost paper. Such as magazines are, newspapers may be ofgeneral or special interest, most often published daily or weekly.BroadcastBroadcast is the distribution of audio and video content to a dispersed audiencevia radio or television. (Wikipedia, 2010)Television and radio programs are distributed through radio broadcasting overfrequency bands. (New World Encyclopedia, 2010) Both are communicationtechnologies vital that have revolutionized the lives of billions of people aroundthe world.RadioBeing the second-oldest form of media after printing media (Converging MediaTrends, 2010), radio advertising is now seen as a complementary medium totelevision. Before the advent of Internet, it was the most interactive medium.Listeners could call and comment on a program while it was in progress(Converging Media Trends, 2010). Radio allows for those in remote areas tostay in communication with the rest of the world.TelevisionCombining aspects of print and radio with the clarity of video, television is nowthe most dominant form of media. Television remains one of the fastest andmost global ways for news to reach a great deal of people 10
  12. 12. 2.1.2. What is the Internet?The Internet is defined by Carr and Snyder (1997, p. 368) as ―an informationinfrastructure comprised of thousands of computers connected by thousands ofpaths - a global network of networks, or a Metanetwork‖. While Tetzeli (1994)would describe it ―as a loosely configured web of corporate, educational andresearch computer networks around the world. In any case, Internet is a widelyspread technology which connects the world‖. 2.1.3. What is social media?Social media is the production, consumption and exchange of informationthrough online social interactions and platforms. Social network sites are ―web-based services that allow individuals to construct a public or semi-public profilewithin a bounded system, articulate a list of other users with whom they share aconnection, and view and traverse their list of connections and those made byothers within the system‖ (Boyd & Ellison, 2007).According to Antony Mayfield (2010), a good way to think about social media isthat all of it is about ―sharing ideas, cooperating and collaborating to create art,thinking and commerce, vigorous debate and discourse, finding people‖.―Social media is best understood as a group of new kinds of online media,which share most, and sometimes all, of the characteristics listed here after:‖That said, in the online world, social media relate to any online application thatengages two or more people together. In the age of the social Internet, it refersto the tools and content that are created by people using these interactivetechnologies as ‗social media.Antony Mayfield; in it‘s eBook, identifies five key elements of the social media :ParticipationSocial media encourage contributions and feedback from everyone who isinterested. It blurs the line between media and audience. 11
  13. 13. OpennessMost social media services are open to feedback and participation. Theyencourage voting, comments and the sharing of information. There are rarelyany barriers to access and make use of content – password-protected contentis frowned on.ConversationWhile traditional media is broadcasted and transmitted to its audience withoutallowing any conversation, social media is two-way interactive street allowingusers to share what they have on mind. It promotes communication betweenlike-minded people (Yes That‘s What Social Media is All About!, 2010) Community Social media allows communities to form quickly and communicate effectively. Communities share common interests, such as a love of photography, a political issue or a favorite TV show… Connectedness Social media websites make use of links to other sites, resources and people (Mayfield, 2008)Figure B : Social media key elements,(extract form the Purchase funnel, 2010). 12
  14. 14. 2.1.4. Forms of Social Network SitesSocial networks are defined by Boyd, D. M., & Ellison, N. B. (2007) as ―web-based services that allow individuals to (1) construct a public or semi-publicprofile within a bounded system, (2) articulate a list of other users with whomthey share a connection, and (3) view and traverse their list of connections andthose made by others within the system. The nature and nomenclature of theseconnections may vary from site to site.‖The size of the network reflects the active participation of the audience. The real value of a network is measured by the frequency of engagement ofthe participants. For marketers, consumers‘ endorsement, in the form offriending/following/subscribing, validates their efforts and activates a viraldistribution of their brand across channels. (Ryan Walker, 2008)Blog, shorthand term that means ―Web log‖—is an online, chronologicalcollection of personal commentaries and links. It is a type of Web site used byindividuals, groups or business entities to publish opinions and commentary onvarious topics. Content can be focused on very niche topics or can covercurrent events, popular themes, or even take the shape of a personal diary.―Blog posts are listed in reverse chronological order and also allow reader topost comments. Posts can be in the form of text, image, video, that is to sayrich-media formats. In addition, blogging platforms allow for rapid syndication ofcontent to interested audiences using opt-in protocols such as Really SimpleSyndication (RSS)‖ (Ryan Walker, 2008) For advertisers, it offers interactive channel to reach engaged andenthusiastic consumers. Additionally, because of their conversational natureand affinity with readers, blogs provide media planners with additional insightabout consumer behavior and intent. With blogs, it is possible to map elementsof engagement to traditional consumer demographic profiles. 13
  15. 15. Micro blogging is the practice of posting, online and through the mobile phonenetwork, small pieces of digital content (‗updates‘), which could be text,pictures, links, short videos, or other media. Twitter is the clear leader in thisfield. It has become an extremely popular channel for both professional andpersonal pursuits. Friends use it to keep in touch, business associates use it tocoordinate meetings or share useful resources, and celebrities and politicians(or their publicists) microblog about concert dates, lectures, book releases, ortour schedules (7 Things You Should Know About Microblogging , 2009).Wikis are Web page that can be viewed and modified by anybody with anInternet access. Any visitor to the wiki can change its content if they want. Whilethe potential for mischief exists, wikis can be surprisingly robust, open-ended,collaborative group sites. (7 things you should know about Wikis, 2005) It permits asynchronous communication and group collaboration across theInternet and provide users with both author and editor privileges. Sounds,movies, and pictures can be integrated in wikis (7 things you should know aboutWikis, 2005). The most popular wiki is Wikipedia, the online encyclopedia,which has over 2 million English language articles.Podcasts, are series of portable digital audio or video files that allow users todownload music from their computer directly to the device for later listening.They are released episodically and often downloaded through web syndication.These media files are available by subscription through services like AppleiTunes. The term was initially inspired by the Apple Computer Corporation‘siPod. (7 things you should know about Podcasting, 2005) It permits automatic downloading of files (most commonly in MP3 format) forlistening at the user‘s convenience. Unlike traditional radio or other Web-basedstreaming media, podcasts give listeners control over when they hear therecording. 14
  16. 16. Forums are online discussions site where people can hold conversations in theform of posted messages, often around specific topics and interests. Forumscame about before the term ―social media‖ and are a powerful and popularelement of online communities. (Antony Mayfield, 2010)Content communities organize and share particular kinds of content. Themost popular content communities tend to form around photos (Flickr andvi.sualize.us), bookmarked links (del.icio.us), music (hypem) and videos(YouTube).The approach to social media marketing is by no means definitive. 2.2. ANALYZING FACTORS OF MEDIA CHOICE AND EFFECTIVENESSThe large and growing media choices and more specialized target marketshave led to the increased importance of linking media and target-marketcharacteristics (Cannon, 1993).The question whether old media are driven out of existence by new media hasbeen a long concern by research but has received no definitive answer (AnNguyen, Mark Western, 2006).. One of the most frequently heard predictions isthat television as we know it today will soon be largely replaced by computer-based activities, such as surfing the web (Negroponte, 1995). Even thoughusers, of both old and new media claimed that the time they spent on traditionalmedia had stayed the same, trend indicates that those Internet users whosemedia patterns have changed are abandoning traditional media at a muchgreater rate than they are increasing their use (Kaye and Johnson, 2003). 15
  17. 17. Nie and Ebring (2000) reported that the Internet reduced newspaper reading.Coffey and Stipp, (1997) added that television usage among PC users isalready declining and predict large reductions in TV usage. The discussionabout the relationship between the traditional media and the new media hasbeen dominated by one main aspect: computer and Internet usage will reducethe TV viewing.Moreover this fear keeps growing as the Internet audience is constantlyincreasing together with the use of social media.Very little attention was given to the factors that could somehow explain thesechanges of media usage while going online. According to Flanagin & Metzger(2001), people seem to go online with similar motivations as they use traditionalmedia but the amount of time available to use either traditional or new mediahas become an important aspect. Indeed, people do not have infinite amount oftime to devote to the usage of traditional media and therefore distribute theirtime availability as suitable for them but when a new technology, such as theInternet is introduced, people must redistribute the time allocated to otheractivities and establish new patterns of behavior (Vitalari, Venkatesh, &Gronhaug, 1995). 2.2.1.1. Time displacementThe major focus of displacement effects of new media studies usually involvestime and functional displacement. Whenever a new medium is introduced insociety, there are always concerns about its displacement effects on existingmedia and, since people only have fixed amounts of time to spend, if theyspend more on one medium, then they will spend less on others (Paul S.N. Lee& Louis Leung, 2006). 16
  18. 18. Most of the time, the new medium is viewed as more desirable than the oldmedium, and consequently people will reduce the time devoted to traditionalmedia that are functionally similar (Dimmick, Kline, & Stafford, 2000; Kang &Atkin, 1999).As the Internet and television share many similar functions, researches havecentered their studies on the time taken away from television because it isstructurally similar to the Internet (Kaye & Medoff, 2001). It was found that 25%of Internet users watch less television, while 11% of them read fewer magazinesand newspapers (The Interactive Advertising Bureau, 2002).The Internet and other new media will displace functionally similar traditionalmedia if people perceive that the new media have superior content and aremore convenient (Lin, 2001a). Indeed the new media benefits from the noveltyeffect., it offers more entertainment and can displace television.Kayany and Yelsma (2000) reported that when people went online, televisionviewing experienced the most time displacement. Many researchers proposedthat a new medium would displace an existing medium when it can serve thefunction of the existing medium in a better and more effective manner: that is,when it provides a functional alternative (Himmelweit et al., 1958; Schramm etal., 1961; DeFleur and Ball-Rokeach, 1982).Lin (2001a, 2001b) assumes that a new medium is less likely to reduce timespent with media that are functionally dissimilar and therefore might supplementor complement the existing medium.People may be motivated to use the Internet for the same reasons they turntheir television on: entertainment. But television does not satisfy socialinteraction needs that the internet offers (DAmbra & Rice, 2001; Kaye, 1998).Different components of the Internet are functionally different than the TV andfrom each other so they may gratify different needs. For example, modes ofcommunicating such as Chat Forums where users "converse" in real time (Kaye& Medoff, 2001) does satisfy the social interaction need. 17
  19. 19. Paul S.N. Lee & Louis Leung (2006) introduced two main approaches to theissue of the effect of media displacement: the ―User-centric‖ approach and the‗‗Medium-centric‘‘.One is centered on the medium and its attributes and supports a displacementand replacement (absolute displacement) hypothesis; the other is focused onusers needs and often results in proposing a complementary effect of the newon the old.„Medium-centric‟‟This approach leans toward a technological-deterministic stand.Media richness theory (Daft and Lengel, 1984; Rice, 1992, 1993), which is avariant of the ―medium-centric‖ approach, assumes that users tend to choosemedia according to attributes such as speed of feedback, social presence, andrichness of language.To be more specific Short et al. (1976) considers e-mail as a less rich mediumthan the telephone because it has lower ‗‗social presence‘‘ features.Grounded on ― media richness theory‖; the more time a user spends on a newmedium as a consequence of new features, the less time the user will spend onold media“User-centric”This approach stresses on ‗‗transcendental needs‘‘ aspect and social influencesin the use of media assuming that they select media to meet their needs.This approach conceives that no new medium can be a substitute for all of theuses and gratification of existing media.In opposition to the ―Medium-centric‖ approach, the substitution occurs only ifthe media satisfaction fails in meeting the users‘ needs. Indeed, if a traditionalmedia keeps satisfying specific needs of users, thenthe new media will not be able to be its substitute.Grounded on these considerations, needs are better served by multiple media 18
  20. 20. rather than a single media and therefore, the more time Internet users spend onnews and information, the more time they spend on the functionally similartraditional media (e.g., newspapers, radio, and magazine) for their news andinformation needs. (Paul S.N. Lee & Louis Leung, 2006)However, there is a basic difference in both approaches. The ―medium-centric‖tends to emphasize how the technological advantage of a new medium servespeople‘s needs, while the ―user-centric‖ tends to emphasize the predominantinfluence of needs across different media (Paul S.N. Lee & Louis Leung, 2006).With respect to the Internets impact Waldfogel‘s (2002) comprehensive studyfinds very modest evidence of substitutability between just a few differentmedia.He finds that people who use media of one type tend to use more total media ingeneral.Surprisingly, empirical evidence regarding substitutability between variousmedia (e.g. television, radio, Internet, newspaper) for media consumers is low.As a conclusion of the ―Media Substitution Theory‖, perhaps we can admit thatthe internet may be taking time away from traditional media. As the Internet iswidely adopted and trusted, it is expected that traditional media use will keepchanging. From an historical perspective, whenever a new medium reachescritical mass it threatens to displace existing media to some degree.Whenever a new medium emerges, old media use patterns are altered untileventually the old and new media fill different niches and learn to exist side byside (Kaye & Johnson, 2003) and show interaction between the media. 19
  21. 21. 2.2.2. Factors affecting the choice of mediaThis section aims at comparing the differences in media characteristics betweenthe internet and traditional media, then determine product characteristics thatare the most influential in the choice of internet advertising, and, finally, identifyproduct-related factors responsible for media use (Yoon and Kim, 2001).Internet advertising like sponsor links or banner ads differs from traditionalmedia advertising in many ways. One of the most significant differences may bethe interactivity. It confers the media audience with the ability to "choose andrespond" to a particular advertisement of their liking.Since the Internet has been widely adopted as a new medium breaking thetraditional boundaries of media advertising, very few studies have looked intothe motives of using Internet advertisements (Clawson, 1993; Park et al., 1997).However few authors took into consideration that Internet advertising may differfrom traditional advertising in its effectiveness for certain kinds of consumersand for certain kinds of advertisements. For example, Bezjian-Avery et al.(1998), in their attempt to differentiate traditional media and Internet, theyhighlighted the fact that Internet should include a broader base ofunderstanding media audiences needs and preferences, and by arguing that ―acognitive matching" is necessary between system properties (i.e., being visualor verbal) and the consumers preferential needs (i.e., preferring visual or verbalpresentation) in order to ensure maximum persuasion‖.In addition to the idea of effectiveness, the product should be also taken intoconsideration to determinate the best fit between media choice. This approachis called ―product-media matching‖. It was first approached by Yoon and Kim(2001), whom have looked online advertising‘s impact on traditional advertisingfor specific products.With support of conceptual frames based on Katzs functional attitude theory(1960) together with the FCB Grid (Appendix 1), Yoon and Kim (2001) tried todeterminate which product characteristics would influence the choice of media. 20
  22. 22. Based on FCB Grid four product categories were used to discover the productrelated factor responsible for media use. Figure C : FCD Grind (extract from Wikipedia, 2010)This integrative model divides goods and services into four categories, alongtwo axes: the Think/Feel axis and the High Involvement/Low Involvement axiswas first approached by Krugman (1965).The issue of product characteristics as potential determinants of mediaselection was approached within the context of consumer behavior. The mostappropriated concept as regards of this issue is the concept of productinvolvement since it affects the way information is processed by the consumers.The theory of involvement into advertising by Krugman (1965), reports thatprocess of receiving advertising information by consumers is very different inhigh consumer involvement situations as opposed to low-involvement ones. Onthe other hand, when attention is once given to advertising, consumers eithertry to interpret its meaning according to their goals or they get interested insecondary elements (headlines, logos, and illustrations) Finn (1988).Richard Vaughn, creator of the FDB Grid, stated that if there were a proventheory of advertising effectiveness it would help in strategy planning, responsemeasurement and sales prediction. But there is no such theory. However he 21
  23. 23. developed the FCB Grid, which helps creative strategy and media strategy as itclarifies how consumers approach the buying process for different products.It is important to understand that the type of product drives the process, soproduct analysis is the first step. According to R. Vaughn, people evaluatedifferent products depending on where they are positioned within their productevaluation cycle.Yoon and Kim (2001) came to the conclusion that internet advertising wasperceived as the best medium in terms of media preference , however not aseffective as TV in terms of advertising. The factors affecting internet advertisingas a media was more related to two dimension of the product characteristics :involvement and affective/rational orientation.Meaning that the high involvement products were more adapted to internetadverting. In opposition, TV is more suitable for low-involvement product.The phenomenal growth of consumers and businesses connecting to theInternet indicates a viable audience for advertising for many companies(Margherio, Henry, Cooke, and Montes, 1998). Numerous businesses havealready integrated the internet into their media strategy, however manyorganizations are uncertain or divided on how effective Internet marketing is totheir organizations (Bush, Bush, and Harris, 1998).Considered as one powerful advertising tool and the substitute of traditionalmedia, the internet is obviously compared with the relative effectiveness of theother advertising media. Despite its capability of opening new advertisingopportunities the researchers are now focusing on how it is perceived byinternet manager and evaluating its effectiveness in relation with the maintraditional media (email being considered as one traditional media) on keyattributes considered to be important.By discovering how advertisers perceive the internet relative to other media ondimensions they consider important in making their medium decisions, Hoffimanand Novak (1996) first place the internet in an intermediate position, neither 22
  24. 24. personal nor impersonal, dynamic nor static. .Elaine K.F. Leong, Xueli Huagan and P.J. Stanmers (1998) findings delineatethe effective features of the Web site vis-a-vis traditional media.With the aims of exploring the perceived position of the Internet‘s effectivenessas an advertising tool compared with several traditional media from theperspective of business managers, the authors developed a two-dimensionperceptual mapping based on marketing media and their attributes.Based on the two-dimensional aspects they first came up with the dendrogramFigure 1, in which the relationship of media in terms of their attributes areexamined.Figure D : Dendrogram of Advertising Media and Their Attributes.(extract from Factors affecting the choice of media, 1997)Print Media and the Internet have traditionally been regarded as "strong" and"very strong" in conveying detailed information by some advertising mediaconsultants (Merchant and Partners Perth, 1992). 23
  25. 25. Given this ability, it is not surprising to see that print media such as Magazineand Press are located close to Internet.Given this ability it is not surprising to see that print media such as Magazineand Press are located close the Internet.Figure E : Perceptual Mapping of Marketing Media and Their Attributes(extract from Factors affecting the choice of media, 1997)The following attribute-based perceptual map shows the relative proximity of thetwo-dimension described previously: marketing media and their attributes.The horizontal axis differentiates the medium attributes that have moreemotional content from those with more rational content while the vertical axis 24
  26. 26. mainly differentiates short-term promotional objectives from long-termpromotional objectives.The Internet is located in the intermediate position and is perceived to be verydistinctive from most of the other media (Elaine K.F. Leong, Xueli Huagan, P.J.Stanmers 1998).It is perceived to be a rational medium, effective for both short- and long-termpromotional objectives such as brand/product/corporate awareness,communicating product/brand image, and communicating corporate image.However the internet ability to stimulate emotions is not as effective astelevision. Indeed, as Neilsen (1997) pointed out, the Web is "mainly a cognitivemedium, whereas TV is mainly an emotional medium.‖ Therefore, Internet isless effective to convey emotional content.Also it is perceived to be less effective in changing attitudes. Findings indicatedthat Television and Outdoor are more effective than the Internet coming to theconclusion that the Internet is more distinctive and complements the othermedia in many ways.Therefore, the Internet should be integrated into the media strategy to helpachieve the companys marketing and communication objectives. “A key reason the Internet has been such a success is because it is the most open network in history”Industry commenters frequently claim that the Internet is leading to a substantialdecline in the use of traditional news media implying that online news sourcesmust be serving as substitutes for traditional print, broadcast, and cable media.(Mark Cooper)Studies have shown contradictory and inconsistent findings, which may be dueto the fact that erroneous and mistaken measures of traditional media use werestudied (Paul S.N. Lee, Louis Leung 2008). Also most studies that examined theInternet‘s impact have ignored its diversity of use, treating aggregate Internet 25
  27. 27. usage as the independent variable by comparing users versus non-users,heavy versus light users, or early versus late adopters.Researchers have used cross-sectional data, thereby confounding thecharacteristics of Internet users with the consequences of using the Internet.When looking at the question of substitutability, there are not any statisticallysignificant and/or materially substantial terms. It is quite obvious that the use ofthe Internet does displace traditional media use of television, newspapers, andradio. The Internet performs a substitutive.However findings suggest that even if a displacement effect takes place, therewill be no absolute displacement. (Paul S.N. Lee, Louis Leung 2008) Instead ofreplacement, the data show interactions between the media. Indeed checkinge-mail, reading news, playing games, and visiting friends‘ blogs became thedaily routine but traditional media will still exist to complement the Internet inserving human beings news and information needs.(An Nguyen, Mark Western,2006)Paul S.N. Lee, Louis Leung (2008) research suggests that media attributeshave to ‗‗interact‘‘ with user needs, as well as other psychological attributessuch as lifestyles and personalities, in shaping media choices. Assuming thatsuch choices may be a result of both user needs and media attributes, it leadsto different conclusions and that the precise ways that we use the media matter.We can assert that no medium can be seen as an absolute functionalalternative to another: each medium has its distinctive features to serve differenthuman beings in different contexts and thus complements other media insatisfying their diverse media-related needs.(An Nguyen, Mark Western, 2006).Knowing that there is no absolute displacement, it leads us to the assumption ofthe complementary relationship between both old and new media. So far,studies previously stated in this paper, assumed that traditional media werecompeting with new media but we come to the conclusion that this theory has tobe reconsidered. Indeed, using both simultaneously instead of using one as asingle unit medium can bring much more benefits and reach a wide target.Studies have shown that there is no relative effectiveness of the internet being 26
  28. 28. used as a single medium and that the choice of medium has be considered according to the product to sales, so why not mixing both advertising strategy? Investigation of synergies between online and traditional media advertising found that online advertisings share in the media mix can have a significant increase in the effectiveness of an overall advertising campaign. Indeed, the also known as Multi-charnnel Marketing, enables firms to build lasting customer relationships by simultaneously offering their customers and prospects information, products, services, and support (or any combination of these) through two or more synchronized channels (Rangaswamy & Bruggen, 2005). Many advertisers are now aware of the complementary effects of new media usage with traditional media and are, therefore increasingly integrating Internet advertising into their campaigns and we can expect online advertising budgets to experience major increases in the coming years. ― A brands success often is driven by many different communication channels—online and offline—at the same time.‖ There are two approaches of the synergy : integrating traditional media with new media integrating new media with traditional media That is what Markus Pferifer and Markus Zinnbauer (2009) tried to differentiate by postulating that a factor which seems to have a major impact on the need for cross-media campaigns combining Internet and non-Internet advertising means is the type of company (pure-play Internet vs. Classic "brick-and-mortar"). Indeed, Pure-Plays, organizations originated and doing business purely through the internet and Brick-and-mortar, company that possesses buildings or store for operations do not have the same business model and therefore the strategies may differ from one to another. 27
  29. 29. 2.2.3. From Online to Offline Amazon.com, one of the largest online retailer, is considered as a pure-play and isa good example of a company that built its brand notoriety exclusively throughthe Internet and it actually works.Many practitioners believe that commercial pure-plays need to rely on classicchannels—especially TV—to overcome the limitations of online advertising tocreate awareness for the brand and support of their online marketing activities(McMains and Morrissey,2009)Ebay.com; a virtual marketplace for the sale ofgoods and services for and by individuals,integrated offline marketing into its strategy with acampaign called "Shop Victoriously"? This campaign features television,Internet and movie-theatre advertising, relationship marketing, and publicrelations (eBays Fall Campaign Includes TV Ads, 2007).The aim of this strategy was to reach a target-market not yet aware of such amarket place. Indeed, multiple media play a collaborative role in the firm‘scommunication mix (Prasad A. Naik & Kay Peters, 2007). By improvingawareness, Ebay‘s intention was to improve its web traffic. 28
  30. 30. Google Using Traditional Advertising―Google, which makes virtually all of its money off advertising still hardly seemsto spend at all on traditional ads.‖ (Google Does TV Ads, To Push ChromeBrowser In Commercials, 2009). Google notorious for not advertising itself to consumers (Google Airs TV Ad During Super Bowl – But Why?, 2010), has always been reluctant to usetraditional advertising (Google Operating System, 2007). However it has beenadvertising itself the old style doing traditional moves; from billboards to radioads and from taxi ads to TV. Here are some of the few offline Google ads:In 2005, to promote itsnon-traditional local voicesearch offer Google isusing a very traditional admedium in the city of SanFrancisco: billboardsand taxi ads.Google ran radio ads to promote its innovative program, AdSense, which helpswebsite owners earn money by displaying text and image ads on their websitestargeted ―finance site owners‖.These two campaigns were Google‘s first advertising campaigns promoting itsown product directly addressed to the final user. But Google also started newtraditional advertising activities providing more possibilities to its advertisers.In 2006, after the acquisition of ―dMarc Broadcasting‖, a radio advertisingcompany directly connecting advertisers to radio stations through automatedadvertising platform, Google integrated the radio advertisement into its businessby creating a new radio ad distribution channel for Google advertisers. Googletook over this dMarc to enhance Adword giving the option to its customer to buyradio advertisement in addition to Web ads. 29
  31. 31. In addition to the radio business Google started a TV business activity calledGoogle TV Ads. Like the radio it is an extension to its already existing Adwordsplatform enabling advertisers to advertise on TV in order to reach new users onTV.Other than integrating radio and Tv activities into its business and offering themto its customer, Google has never done any TV advertising to promote itsproducts before.But during 2006s Superbowl, Google started to air TV ads promoting its best-known products even though they didn‘t have any marketing problem.The ads, a series of short videos, were not created especially for the Superbowl(Google Airs TV Ad During Super Bowl – But Why?, 2010). Indeed, the videoswere on YouTube for months and Google decided to share them with a wideraudience since it had positive reactions online. Google claims the videos wereabout the products and the users, and how they interact more than real ads toattract uses. Also in 2009, it has launched its first TV commercial to promote its browser ―Chrome‖ a replacement for the browser ―Internet Explorer‖ developed by Microsoft. As regards of Newspapers, Google is now applying its technology and ad network to make money from ads in print publications. Its first newspapers ad targeted college students. The aim was to attract them to its Internet application: Gmail. 30
  32. 32. Google has been using its own advertising system to promote its system andactually never had to advertise its search engine to be popular. Its popularitycame from word of mouth. Indeed, users started to like tools and recommendedthem to others. Even though Google has never felt the need to put across itscore product (Google Airs TV Ad During Super Bowl – But Why?, 2010), usingtraditional media to promote its tools, application and services is a strategy ofexpansion. Indeed, what Google wants is to expand into all forms of advertising.J. G. Sandon, postulated that "you cant build a brand simply on the Internet” towhat Freeman added “you have to go offline” (1999).According to Markus Pferifer and Markus Zinnbauer, for online brands, thedecision to rely only on online marketing (Search Engine Marketing, SearchEngine Optimiesation, and banner advertising) or to invest in traditional,communication channels (TV, print, outdoor, and radio) often is solved bymanagement experience and intuition.Prasad A. Naik & Kay Peters (2009) by studying how online and offline can becombined to create synergistic effects demonstrated not only the existence ofonline-offline synergy, but also the importance of collaborative role of multiplemedia in the firm‘s communication mix.In addition, Markus Pferifer and Markus Zinnbauer have analyzed thecombination of both conventional media and online media and measured theeffectiveness of a brand and its strategy efficiency.Their objective was to examine the business impact of various communicationchannels and the role of other external factors on a web site. They came upwith the conclusion that classical advertising with a clear focus on TV clearlypays off and outperforms pure search-engine marketing with regards togenerating new registrations. Indeed TV campaigns tend to strongly affect thesuccess of a websites traffic; in contrast, print and poster both show weakefficiency levels and cannot significantly increase a Web sites traffic.weak efficiency levels and cannot significantly increase a Web sites traffic. 31
  33. 33. Online pure-play can effectively rely on online marketing once it has gained areasonable awareness, however classic advertising remains a necessity to builda brand strength.On the other hand, the second approach, which consists in integrating onlinemedia to traditional media, is the most expanded approach.Changes in consumer behavior, driven by technology advance and supportedby new business models (Online Media and Search: The New Opportunity,2007), have forced business owners to wonder whether or not going online. Forvarious businesses, the decision of expanding online has become an obligation.Effectiveness of the Multimedia Marketing has been proved. Old media and newmedia are not competitors, nor incompatible. Combined media strategy has,obviously, better impact on potential consumers and most of offline businesseshave now integrated the Internet marketing into their strategy.Examples of businesses, which choose to go online, are numerous but still theyare using different methods. Online marketing includes banner ads on specificwebsites, direct e-mail marketing, affiliate programs, online sponsorships,couponing, and referrals have become everyday tools for online marketersFor those who can afford it, the first option while going online is the website. Itprovides an environmentally friendly way of do business.It provides with many advantages and if carefully planned, it is an invaluabletool that provides a business with increased exposure, sales, and reduces theamount of time spent on administration. 32
  34. 34. But first it is interesting to add that researchers found that online advertisingsignificantly increases offline visits only in the presence of offline advertising viamagazines, newspapers, radio, and television, which makes prospectivecustomers aware and receptive to online exposures. This confirms that thecombination is required.One certainty is that it allows businesses to reach consumers who were notreachable through other media channels such as TV or print due to variousmedia consumption habits. Generation Y are considered as a target-marketreachable mainly online. Generation Y users have easier facilitation ofcommunication through technology and are very common with the internet andvery comfortable with new media and advertisement through websites likeYouTube and social networking sites like Facebook, Myspace, and Twitter. Theyare peer-oriented.The Generation Y members (18 to 35 year old) are more receptive to onlinemarketing than their counterparts. Compared to members of generation X, theyare more likely to use tools as instant messaging, social networking and textmessages as primary tool for personal communications.A great example of how receptive Gen Y members are is Barak Obamas 2008presidential campaign. Indeed, they have been Obamas biggest supportersthought the USA.From a communication perspective, Obama and his campaign expertsunderstood how to involve and motivate members, part of an emerging new―tribe‖ in the society.Obama also understood that the youth vote was the most powerful place toseed the ‗change‗ idea and building a popular community organization throughthe internet was the way to build a movement that superseded politics (TepperMarlin John, 2001 33
  35. 35. 2.2.4. Obama08The Obama campaign‘s social network also ―married community organizing tothe Internet‖ by applying two-way (perhaps more accurately multi-way)communication processes on a major scale (Feek, 2008).The key to Obama‘s success was his instinct for marketing.It would not be too much to say that Barack Obama‘s presidential campaign is acase study in marketing excellence (Quelch John, 2008)Obama saw that technology could offer the tools to create real change andunderstood that all available technologies should be used to createtransparency, which was one key value of the Obama‘s Administration.Toward this end, he deployed the most modern communication infrastructuresand changed the way business was conducted.Obama has used web 2.0 as a central platform and turned it into a major force.Thanks to his communication plan, Barack Obama converted everyday peopleinto engaged advocates through social networks, email, text messaging andonline video.By combining social media and micro-targeting in the manner that he did, thecampaign revealed force and leveraged all the tools of social media to giveordinary Americans access to resources usually reserved for campaignprofessionals .During his campaign, he has used technology with the intention to engagethose who have not been able to participate in prior presidential campaigns.He understood that the value social media could bring to the campaign wasgrowing exponentially if online presence was raised to the highest levels andintegrated into all elements of the communication.Its communication plan was revolutionary in the way he employed the same 34
  36. 36. tools as the former presidential candidates. He used the exact same tools ascompetitors but in a better way by prioritizing and tracking prospective voters.From a better-coordinated effort, he has built advantages from socialnetworking friends, web site and video viewers. Obama staffers monitored theexchanges as a way to help make their own communications with supporters astimely and personal as possible.( Lowry, 2008)By Election Day, Obama had nearly five times more Facebook supporters thanMcCain -over 3 millions cumulated friends on Facebook- and 20 times moreTwitter followers (Scott, David Meerman., 2009) . In addition he has over 13million members‘ emails and 3 million mobile subscribers.Compared to McCain, this is twice as more website traffic to ten times moreFigure F : Obama Vs McCain(extract from : The Social Pulpit Barack Obama‘s Social Media Toolkit, 2009)His campaign was built on the power of public engagement instead of relyingonly on the traditional one-way communication.Another aspect of transparency is citizen dialogue (Borins, 2009). By firstlaunching a web site, Change.gov, a website exclusively designed to let peopleexpress their thoughts and opinion during the campaign he enabled people toshare about issues.By giving average Americans the chance to propose opinions and informationon important policy issues he collected 15,000 policy ideas, which had beensubmitted through the web siteAt the end of the first month of the website opening, more than two millionpeople had visited the web site and 500,000 comments were posted. Indeed,there were discussions with thousands of comments about topics such as 35
  37. 37. health care reform and the citizen‘s briefing book. (Borins, 2009)It demonstrates a ―social majority‖ on each and every issue faced by giving topeople; the possibility demonstrates their support for its campaign and policywith enthusiasm.―Obama also took a nearly moribund tradition—the President‘s Saturday-morning radio address, a weekly discussion of current events in the UnitedStates —and instantly transformed it for the Net Generation into a weekly videopost on YouTube‖ (Borins, 2009). Indeed, since relatively few people listened tothe radio and therefore to the Presidents Weekly Address. Issuing its ownPresident Elect Weekly Channel on YouTube was a way to regain the radio‘slost audience by gibing the possibility to the video to be shared and commentedon easily.More than 280,000 accounts were created on barackobama.com., whosemembers have organically created over 6,500 grassroots volunteer groups andorganized more than 13,000 off-line events using the site. Barack Obama waspresent in no fewer than 16 social media sites.His staff sought to ensure that the Obama social network would mirror the off-line world, because supporters would foster more meaningful connections byattending neighborhood meetings and calling on people who were part of theirdaily lives (Stelter, 2008).By December, many volunteers were holding house parties to discuss andfigure out how the connection could be channeled to improve Obamascampaign more support.They clearly understood that social media could give people voice, connectionto people with like minds and improve Barack Obama notoriety.―The underplay between online engagement and offline activities was a realsuccess.‖ 36
  38. 38. Barack Obama had his team sending emails to million of people and, in someway, had people spreading ―the message‖ for him, putting these ―super-volunteers‖ to work in ways that they use their skills, connections and time. (n.d)“The campaign’s technology activities demonstrate the positive role technologyhas played, opening up the closed practices of governance to greater citizenengagement and participation.”Barack Obama knew. Social-networking technologies had matured and moreAmericans were comfortable with them so he took advantage of it.He had 3 million online donors during the election and 2 million people werepassionate enough to create profiles on my.barackobama.com.(n.d, 2009)Public Engagement ModelFigure G : Sphere of Cross Influence (extract from: The Social Pulpit BarackObama‘s Social Media Toolkit, 2009)His campaign was such a success that businesses can learn from ObamasSocial Media Strategy. 37
  39. 39. Such as developed by Michael Krempasky in his article ―The Social Pulpit :Barack Obama’s Social Media Toolkit” , ten key learning points can beextracted from the social media program implemented by Obama.― Laddering support through tiers of engagement Empowering super users Providing source materials for user-generated content Going where the people are Using tools people are familiar with Ensuring that people can find your content Mobilizing supporters through mobile devices Harnessing analytics to constantly improve engagement activities Building the online operation to scale Choosing the right team ―The 4 first points are the main points a business should focus on. Laddering support through tiers of engagementObama figured out that it was fundamental to offer a variety of ways to getpeople involved in its campaign, by providing with taking into consideration thelevel of engagement. His approach was to provide escalating levels ofengagement―Like a the rungs of a ladder, each higher engagement level requires more workand holds fewer people, but it ideally also creates more value for the campaignor cause‖ (n.d http://www.epolitics.com/2009/12/03/winning-in-2010-online-fundraising-and-mobilization/).That way, the higher one moves up the ladder, more committed he gets and thebetter value he creates.The commitment being to start as a casual list-member to convert into a donor,which will then convert into a volunteer and finally become a precinct leader. 38
  40. 40. ―Keeping the most casual supporters working at a basic level, while alsoproviding more strenuous outlets for the smaller core of true activists‖ (Winningin 2010: Online Fundraising and Mobilization, 2009)One starts by sending a casual email, which does not require muchinvolvement; then makes phone calls that requires a little more commitment andthen makes personal visits.There are 3 engagements on the ladder to the campaign supporters. Advocate Recruit others t Host an event Create a group Social Post pictures/videos Write a blog post Join a group Personal Create a profile Post a comment Sign-up for e-mail/SMS Friend on social networksGetting people to recruit ten friends via email, for instance, is an easy way forthem to participate (n.d). 39
  41. 41.  Empowering super users―The first time you visited his site you were asked to join his mailing list. Onceyou subscribed you would start receiving high value emails from him driving youback to his website to take action‖ (―Lessons We Can Learn from BarackObama‘s Online Marketing Strategy‖).By offering different level of commitment, he offers the opportunity for the mostcasual supporters to stay involved and also giving the possibility to drive upcommitment while creating value.Most involved and reliable supporters were identified and were offered theopportunity to use tools to attract others. Called the super users, these engagedvolunteers were then collecting funds by creating groups and organizing eventson the community website. They also were given the possibility to access thedatabase of Barack Obama to make phone calls to collect funds. Providing source materials for user-generated contentThrough his web site, content such as video and up to date news are postedand therefore available for the supporters to reuse on their own by sharing themwith their contacts, posting them on their blogs or facebook pages. Going where the people areAs trend may show, 6 Americansout of 10 is currently using a social network. The main idea was reach eachand every member on any social network.The objective was to make sure that each supporter has a connection withObama no matter where they are.Barack Obama was member of 15 social networks reaching severalcommunities from Asian to Africans. 40
  42. 42. ―Obama was the first presidential candidate to have profiles on AsianAve.com,MiGente.com, and BlackPlanet.com.‖These social profiles were kind of a path to drive the supporters back to Obamacommunity site. The websites activity was then focused on raising funds.Figure H : Driving InnovationObama had also developed a mobile-device presence qualified as the largestmobile marketing event in the U.S by Nielsen Mobile.The Obama campaign used mobile advertising to target youngsters. Even aiPhone application was created, to give up-to date information 41
  43. 43. Obama segmented his market by combining several segmentation variablesrather than relying on a single segmentation base. While the key demographicsegmentation variables were age and race, the key segments Obama targetedwere young and minority voters.Obama targeted all-important demographic and psychographic segments bybrilliantly exploiting a mix of traditional media and modern technologies(Tempolral Paul, 2008)Figure I : Obama Campaign‘s Hub and Spoke Model (extract from: The SocialPulpit Barack Obama‘s Social Media Toolkit, 2009)The campaign has succeeded to get people to act offline using online and tofacilitate offline activities. Online and offline were both well combined. Sharingthe experience in the online space maximized the offline activity.Obama‘scampaign does proves that both totally complement each other.―The Obama campaign did experiment with social networks, online video,mobile test messages, etc. and scaled up what they found was valuable‖. 42
  44. 44. 2.3. FORMULATING HYPOTHESISAs exposed earlier, Internet usage has changed and is now part of everyone‘slife. Traditional media usage has evolved. Saying that it has decreased is a trueaffirmation but it is still part of business strategy. The evolution related to thetechnologies leads us to the following hypothesisH1: Traditional marketing, as a stand-alone strategy, is no longer enoughTodays ultra-competitive environment makes it difficult to be successful withjust great products, services and traditional marketing alone.Gaining awareness requires great communication skills , in this sense gettingthe customer to be notified about one companys product or service makes itobvious that using new technologies help to make them informed purchasers.H2: Social Media are credible and trustworthyNon-traditional approaches, like buzz marketing, have proven to be veryeffective. Communities of people forming direct, one-to-one relationships withbrands are the new way products are advertised.H3: Social media marketing, can’t stand aloneSocial media had shown great results and successful stories for manycompanies and we believe they are here to stay. It brings great potential butsocial media are constantly changing. However fast-growing and ever-changingsocial media scene makes it difficult to consider it as a relevant tool.In opposite traditional media have been around for years and have shown noreal signs of weakness before the arrival of the Internet. It does not seem to bedisappearing. 43
  45. 45. H4: Social Media and Traditional Media converge.Social media marketing is a valuable resource for both internet-based and brickand mortar businesses. Incorporating a mix of online marketing and traditionalmarketing techniques might exert synergistic effect by reinforcing both onlineand offline adsA diverse repertoire of marketing tools could give wider reach and better results. 44
  46. 46. 3. RESEARCH METHODOLOGY 3.1. INTRODUCTIONThis chapter deals with the methodology adopted in undertaking this researchand begins with the description of the method adopted in this survey.It follows the four steps sequences: methodology selection, survey method,problem definition, and research objectives. 3.2. METHODOLOGY SELECTION 3.2.1. Qualitative researchTo gain a deeper understanding and to gather an in-depth understanding thistheses will be driven by a qualitative research methodology on accordance withexploratory research type. Exploratory data analysisWe find ourselves in a context where we seek to understand a phenomenon ofsubstance, for which a qualitative study proves to be the best solution.The quantitative study did not seem relevant in this context, because thephenomenon in question seems difficult to quantify or generalize. Beyond theexplanatory function that is the qualitative study, it will help to developknowledge about issues that have little or no research so far been treated.Therefore, it will have an important exploratory function in order to betterunderstand the phenomenon on which it is directed. 45
  47. 47. As this study relies on secondary research such as reviewing available literatureand/or data and more formal approaches through in-depth interviews theexploratory research approach is the most appropriate.These data have been analyzed for the purpose of formulating hypotheses.We will identify patterns and relationships thanks to literature review andinterview of specialized people of the social world.Problem > Data > Analysis > Model > ConclusionsSurvey MethodsTelephone interview, personal interview and mail interview were employed toconduct this survey. Telephonic interviews were appropriate for upscalerespondents who are accustomed to telephonic business transactions. 3.3. PROBLEM DEFINITIONAs developed previously in the literature review marketers used to rely solely onwhat has been working for them in the past using ―industry standard‖approaches, unwilling to explore new options.Many researchers have first seen the new media, social media included, as acompetitor to traditional media rather than considering them as acomplementary media that could enhance mutual growth across multiple mediaby building cross-media synergies.Research question“ What is the best approach to integrate Traditional Media and Social Media intoa single strategy? 46
  48. 48. 3.3.2. Research ObjectivesThis study aims at understanding what the stakes of having a social network-oriented strategy and the impact of implementing it into an already existingtraditional media strategy are.In light of the previous literature analysis, the objective will be to set up amarketing strategy combining both social-media and traditional marketing.InterviewsThe people being interviewed were actors of the social world, daily evolving inthis context or having written articles in relation to the new media. Intervieweesare mainly professionals, which helped us to have a better understanding of thechallenges they face.These administrated interviews are semi-structured as the interview is flexible,allowing new questions to be brought up during the interview as a result of whatthe interviewee says. Also it allows re-centering and giving more precision towhat the interviewee is expressing. 47
  49. 49. Interviewee Position Company/SchoolMarkus Pfeiffer Managing. Director. Vivaldi Partners Can Old Media Enhance New Media? How Traditional Munich and London Advertising Pays off for an Online Social Network. officesBarbara K. Kaye Assistant Director Masters Degree in Author of: From Here to Obscurity?: Media Substitution Communication - Theory and Traditional Media in an On-Line World. The Johns Hopkins UniversityAndrew T. Stephen, Assistant Professor INSEAD Business The Complementary Roles of Traditional and Social Media inPh.D of Marketing School Driving Marketing PerformanceAntony Mayfield Vice President, iCrossing, a search Author of: Me & My Web Shadow: How to Manage Your Head of Social and social media-led Reputation Online Media digital company www.antonymayfield.comAnton Koekemoer & Internet Marketing WSI Professional blogger, developer, web technology consultantWSI OMS‘s Team Consultant and a marketing strategist with an emphasis on Web 2.0 technologies.Jacquelyn Cyr Chief Executive Chief Executive Author: What the F**K is Social Media: One Year Later Officer Officer brandinfiltration.com 48
  50. 50. 4. FIELDWORKIn the following chapter, we are testing the hypotheses stated at the light of theliterature conclusions. The tests lean upon the questions of the 7 intervieweesand the general trend that comes out of the questionnaire provided to them.The answer to the hypotheses will be the result of their answers and will beeither approved or disproved in accordance with the general opinion of theinterviewees. 4.1. VERIFYING HYPOTHESES 4.1.1. H1: Traditional marketing, as a stand-alone strategy, is no longer enoughThe traditional media as we know it today has shown a great sign of power andhas gained a lot of credibility during the last decades. However, online media,as a result of the innovation and technology, is now taking part of our daily livesand people start to rely on what is found on the Internet. Actually theycomplement the audience‘s opinion by improving awareness and brand image.As pointed out by Mr Markus Pferifer, traditional media and social media do notcommunicate the same way. Indeed, we are used to see commercials aboutbrands and products everywhere, from TV to newspaper, and thosecommercials actually advertise the product by emphasizing on the benefits ofthe products and giving competitive advantages about a brand, while socialmedia can enhance the product or the brand image, not by doing advertisementabout the product itself but by communicating on the company image.The communication of a product launch has first to be carried out upstreamthrough traditional media getting people to know about the new product andthen communicating on social media to create brand awareness, increaseaffinity, drive traffic to a website and at the least position, increase sales. 49
  51. 51. Figure J : Social Media effectiveness by objectives (extract from MarketingSherpa)The previous graph shows that companies do use social media to improve theirreputation and increase their brand awareness.The way a business uses social media is different from the way it uses atraditional media. Because both types of media are used for different purposesand because company do not communicate on the same content itdemonstrates that traditional media are compulsory to have a relevantmarketing strategy but it cannot be efficient by itself. Using social media addsdepth to the message and meaning to the brand.According to Mr Andrew T. Stephen ―traditional is still broad-reaching and still amajor part of marketing plan‖.✓Traditional marketing strategy is not enough 50
  52. 52. 4.1.2. H2 : Social Media are credible and trustwhorthyMs Barbara K. Kaye stressed the fact that ― user-generated content sources areway too often factually incorrect‖ and that ―no matter how the content isdelivered, traditional media is the expert in information coverage and keep itsimage of real media‖. What she intends to say is that social media information ismisused since it is provided by anyone on the web. Indeed, spreading anerroneous message can be done by anybody and could reach a wide audienceeven if the message is totally wrong. According to Ms Kaye, media audienceshould strictly entrust the traditional media with the information provided on TV,on radio and newspaper and not take any social media message intoconsideration. According to her, majority of people thinks that the Internet ―complements the newspapers source of information as it brings a different typeof information‖. A minority of people still thinks that the Internet is not atrustworthy source of information and traditional media remains the best type ofmedia. On the other hand, Mr Mayfield sees it as a ubiquitous way of doing business and socializing with people that became almost ―invisible‖. Mr Markus Pferifer pointed out that social media have been adopted naturally within a couple of year and the users do trust social media. Indeed, 70% of the purchase decisions today, in many product categories, are actually driven by social media and this is thanks to the possibility to access a wide range of recommendation through the web, especially social networks and now also the mobile web making social network access a powerful tool.Figure K: In friend We Trust (extract from The Economist) 51
  53. 53. So Yes, internet users do trust a brand, like Mercedes, but when comes to a purchase decision, it is mainly driven by recommendations, opinions of other people through the social networks, both relatives and strangers. It‘s because consumers rarely trust marketing messages. Consumers today trust other people even if they don‘t know the person much more than a brand. That is what is called Word-Of-Mouth on the web, a consumer-to-consumer communication with no economic incentives, here considered as an online strategy through social media. Consumers are now seeking for a second opinion and tend to value opinions expressed directly to them. They are turning to online influencers to confirm their opinions before making purchase decisions Today, word-of-mouth operates on a one-to-many basis:- Product reviews are posted online- Opinions disseminated through social networks. Consumers discuss bad customer experiences and place them in context. Concerns and dissatisfaction are more loudly expressed through social media, even Web sites or blogs are created to praise or punish brands. Peer recommendation appears to be relevant when consumers intend to buy a product for the first time and particularly when the product is expensive. ✓Social media are credible and trustworthy 52
  54. 54. In the light of what has been developed in the previous hypothesis about theefficiency of a traditional media strategy as unique strategy makes the followinghypothesis more relevant. 4.1.3. H3: Social media marketing, can‟t stand aloneSocial media turns out to be a powerful tool to communicate and spread widelyan image or communicate over a message.As a matter of fact, it has reached more people that one could ever imagine.The general trend that comes out of the interviews is that the social media is a―revolution‖.The Social Media show a few signs of weaknesses due to the newness of thistype of marketing. First and foremost, the usage Social Media is not widelyspread and therefore, launching a marketing plan only using Social Mediawould not reach a large audience.As stated by Mr Anton Koekemoer ―Social media has created a highly involvedaudience that engages and interacts around focused topics … The internetviewing public has shifted to social media and many search engines haveincorporated it onto their complex algorithms to make use of this world widephenomena.‖The hypothesis about whether or not social media can stand alone is answeredby a pertinent sentences quoted by Mr Markus Pferifer : ―Just putting up aFacebook fan page of a new toothpaste would not be relevant.‖ Indeed, hestresses the fact that using social media by itself to promote a new productdoes not make any sense, as the communication up streaming did not occur.Mr Anton Koekemoer adds to this idea the fact that Social Media Marketing isabout sharing and publishing valuable content, building trust and relationships.It is never about selling directly.Social networks are not able to provide instantaneous success to a product or 53
  55. 55. service when used as a single marketing strategy. Even though a fewcompanies had succeed to become famous within a couple of days by creatinga ―buzz‖ chances to reach 1 million people with a buzz are still low becausethere are many companies which are trying to do so in the jungle of socialmedia.Social media bring various benefits to a business and offer tremendous newmarketing opportunities, however social media cannot be used as a singlestrategy.Mr. Antony Mayfield emphasizes that idea by stating, ―focusing exclusively onsocial media would be to ignore how customers get their information andentertainment – via a mix of media.‖ Indeed, using Social Media as a substituteto formal marketing strategy is considered as ineffective by a majority ofrespondents, if used as a stand-alone strategy.✗ -alone  It has to be integrated 54
  56. 56. 4.1.4. H4: Social Media and Traditional Media converge.Taking into consideration how social media have advanced since the past yearsshow how relevant social media are. They become increasingly powerful andshow a great sign for the future.Opinions as regards of the future of both traditional media and social media arequite unanimous: traditional media and social media (integrated into onlinemedia) are gradually forming one product with the advantages of all of them.Most of the interviewees do agree on the fact that traditional media may facedifficulties to overcome new media challenge but at the end they will get betterand will even ―be unrecognizable‖ (Antony Mayfield).The social web is disrupting traditional media but why should companiesabandon something that have been a very broad-reaching media, working forbusinesses for decades?The question about whether or not social media will replace traditional mediahas been of high concern for the last couple of years. Obviously, this concern isno longer relevant. Dr Andrew T. Stephen thinks that social media will becomeincreasingly interconnected and integrated to traditional media. Indeed, today‘sbusiness marketing is about integration and interaction and it involves playing toeach type of media channel‘s strengths and using the others to compensate forweaknesses.Mr Mayfield states that as a result business models are failing but new ones arebeing discovered. Also, by adding ―understanding media is about understandinghow people use it – and that means a combination of different formats,platforms, technologies‖.Convergence is of all types. The convergence has first been introduced byinternet-enabled gaming consoles. The Wii console is a great example offeatures gathered in one single device because it allowed gamer to access webbrowser and therefore social networks playing and sharing with anyoneconnected to the Wii. 55
  57. 57. In Mr Markus Pferifer‘s opinion the media industry is now being converged withthe mobile phone industry. Numerous devices have voice recorders, digitalcameras and mp3 players are now integrated into mobile phone, to what anApple introduced mobile-web navigation with the iPhone.The idea is also extended to the television-web convergence with the exampleof Google TV. Google combines the TV with the freedom and power of theInternet by allowing navigation to television channels, websites, apps, showsand movies.The power of the Internet is brought out of the computer into TV and ontomobile devices; the reach is maximized.It reaches even more massive media audiences than ever before, allowsinteraction and even generate media content. Audiences have now the controlof when, where and how they access and relate to information of all kinds.✓Social Media and Traditional Media converge. 56
  58. 58. 5. RECOMMANDATIONS 5.1. SUGGESTION OF TIME ALLOCATIONThis section summarizes data from the previous the conducted interview withthe 7 interviewees and compiles their results into recommendations for anobjective-oriented converged media-marketing plan to optimize marketingimpact and return on investment. Mixing social media with traditionaladvertising improve both. The challenge is about finding the best balance ofmixed media to use it in a coordinated program enabling the business todevelop conversations with its customers.Online advertisings shares in the media mix can have a significant increase inthe effectiveness of an overall advertising campaign. social media havepenetrated the business world with great speed but, unfortunately, with mixedresults..When effectively integrated, marketing budget can significantly raise brandawareness, educate consumers and considerably increase sales altogether.However the distribution between traditional media and social media has to beadapted to the advertising goal.Although the ultimate goal is to ensure the company‘s profitability and durability,meaning that the objective is to make sales, advertising objectives are notdirectly oriented to the increase of sales. Instead it is generally used to conveycustomers to a business by leveraging the brand awareness and the company‘sidentity with the ultimate goal of increasing sales. 57
  59. 59. First and foremost, before determining the best media mix to implement it isessential to identify the main advertising objectives: increase sales, increaseimage and brand awareness, educate consumer. The key objective willdetermine the allocation of traditional and social media placement.Two main orientations are identified:- Brand / Image Equity- ProfitabilityFigure K : The Media BalanceThen it is necessary to determine product‘s characteristics that are the mostsignificant in the choice of social media advertising, and, finally, identify product-related factors responsible for media use, by using the following FCB Grid. 58
  60. 60. - INVOLVEMENT + THINKING FEELING IV. INFORMATIVE (THINKER) III. AFFECTIVE (FEELER) Car, Life Insurrance, Hi-fi Fashion Apparel, Motorcycles Social Media II. HABIT FORMATION I. SELF-SATISFACTION Household items Candy, Cigarettes Traditional Media Figure L: FCB Grid Remodelled There are 2 dimensions with 4 different situations. The importance of the product explains the involvement. High involvement products represent the products for which it is needed to think or gather information about before the consumers make a purchase decision, such as life insurance, cars, etc. In opposition low involvement products are the products for which it is not necessary to learn or think about before making any purchase decision such as toothpaste, bread, etc. It is suggested that Internet advertising is relevant for highly involved and rationally oriented consumers. 59
  61. 61. Therefore online advertising using Social media has to be emphasizedwhenever the product is of high involvement (figure C). The more the customeris involved, the more social media has to be emphasized.When the product is of low involvement, such as daily products, traditionalmedia is more suitable. Nevertheless, one media should not be putted aside.The aim, here, is to use both media but by emphasizing one or the other,depending on the goal to achieve.Figure M: The balance between traditional and online media emphasis shouldvary according to the marketing objectives.In the following recommendations the traditional media methods include:Television commercialRadioPrintBillboards / Bus WrapsNewspaperand social media methods include :Social Networking. (Facebook, Twitter) Interact by adding friends, commentingon profiles, joining groups and having discussions. 60
  62. 62. Social Bookmarking. (Del.icio.us) Interact by tagging websites and searchingthrough websites bookmarked by other people.Social News. (Digg, GoogleNews) Interact by voting for articles and commenting on them.Social Photo and Video Sharing. (YouTube,Flickr) Interact by sharing photosor videos and commenting on user submissions.Wikis. (Wikipedia) Interact by adding articles and editing existing articles. 5.1.1. Increasing saleEach day we are exposed to a variety of media and marketing message that weunconsciously absorb without paying attention to it.Traditional media remain a broad-reaching media -especially TV ads andbillboards- as it still reaches a wide audience; yet this audience is not targetedenough compared to social media. TV ads and billboards reach extensivepotential consumers. In that, traditional media is highly efficient incommunicating to non-targeted consumers at a local or national level.Traditional media are used for all types of products, from low involvement tohigh involvement products or services. But still, the traditional media – otherthan TV commercials- are more suitable for special offer and promotionaladvertising of low to high involvement products and services because they havea local impact. It is more commonly used at a local level and sometimesnationally but it barely reaches an international scale.However, even at a local scale, it makes it possible to attract the attention ofthose who may not consider making purchases in your business. For example,if someone sees that a particular product is going to have a special offer it mayreconsider it purchase decision if the product turns out to be affordable. 61
  63. 63. Billboards are a good example of how non-targeted the advertising type is.Indeed, billboards are standing by the street sides are the message areabsorbed by drivers and their passenger.On the other hand, TV advertisement is more targeted as a specific audienceviews it at a specific time of the day.Radio and print publication are even more targeted as they are intentionallybought or listened by the reader or the listener, and therefore the audience paysmore attention to it.Figure N : Media TargetingAlso, social media are not made to sell a product; only traditional media aresuitable for selling as they can deliver a message such as product specificationto the most receptive part of a market. These messages need to be controlledand not left to a third party. Social media build the trust.Social media bring more customers to the business and ultimately increasesales and revenues, in that way traditional media have to be emphasized ratherthan social media it the goal is to increase sales. 62

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