1. . summarized fromdissertation submitted to’Oxford Brookes University’
A CRITICAL EVALUATION OF SOCIAL MEDIA FOLLOWERS’ PERCEPTIONS OF SOCIAL MEDIA
MARKETING IN DEVELOPING A MARKET DRIVING POSITION IN B2B ENTERPRISE SOFTWARE
FIRMS
Nurcan Bicakci Arcan
July, 2016
ABSTRACT
The expanding role of social media in marketing is continuing to change the way companies are doing
business and allocating their marketing budget& efforts. While the tools of social media are more
widely used in B2C marketing,the usage in business-to-business markets is still limited.Jussila etal,
(2014) emphasizes the fact that social media has notreceived much attention in B2B. There are various
viewpoints on how and why social media marketing is/mustbe used by B2B technologycompanies.A
highly supported one by academics is thatthe main aim ofsocial media marketing for B2B technology
companies is creating “marketdriving” perception.(Sarin et al., 2003) They argue that the main aim is
to position their firms as “marketdriving”.Kumar et al. (2000) describes “marketdriving” as a firm’s
ability to lead fundamental changes in the evolution of industryconditions by influencing the value
creation process atthe product, market,or industrylevels.
This paper focuses on B2B enterprise software industryand aims to explore and analyse whether these
companies are able to create “market driving” perception through social media marketing.
2. . summarized fromdissertation submitted to’Oxford Brookes University’
1. INTRODUCTION
This paper addresses a currentissue broughtwith the digital transformation in marketing.It focuses on
B2B technologycompanies and includes an assessmentofcustomer’s perceptions ofsocial media
marketing in developing a marketdriving position.
The expanding role of social media in marketing is continuing to change the way companies are doing
business and allocating their marketing budget& efforts. Kaplan and Haenlein (2010 cited in Valos,
2016) define social media as “a group of internet-based applications thatbuild on the ideological and
technical foundations ofWeb 2.0 and that allow the creation and exchange of User Generated Content”.
They characterize Web 2.0 as an open and collaborative system through which users share and modify
content, and they use that term to describe how the Internet currently operates.In that way, Web 2.0
pools collective intelligence,and itis the platform on which s ocial media operates.This definition
clarifies social media’s potential value:through the creation and exchange of content, social media
offers leaders oforganizations the potential to forge stronger bonds with key stakeholders.
By 2016, social media platforms such as Facebook,Twitter,Linkedin, YouTube, Flickr, Instagram and
many blogging platforms-owned by brands or independentlymanaged- are popular with increasing
number offollowers.According to wearesocial Digital Book of2015 and 2016, world population has
increased by2.5% from January 2015 (7.21 billion) to January 2016 (7.39 billion),whereas number of
social media users has shown an increase of11% during the same period (2015:2.07 billion,2016:2.3
billion)
Twitter has 320 million monthlyactive users as ofDecember 21,2015. (Twitter statistics) Linkedin
operates the world’s largestprofessional network on the Internet with more than 433 million members in
over 200 countries and territories as ofend of 2016 March (Linkedin statistics).
According to Barnes (2010 in Valos et al, 2016) social media is becoming integral to marketing strategy
due to its interactive nature (Kaplan and Haenlein,2010 in Valos et al, 2016) that allows collaboration
(Prohaska,2011 in Valos et al, 2016) and fast information collection (Wright etal., 2010 in Valos et al,
2016).Social media marketing is defined as a system which allows marketers to engage,collaborate,
interact and harness intelligence crowd sourcing for marketing purposes.” (Tsitsi,2013)
While the tools of social media are more widelyused in contemporaryconsumer marketing,the usage
in business-to-business markets is still limited. Jussila etal,(2014) emphasizes the factthat social
media has notreceived much attention in B2B. Some B2B industries are pioneering in social media
usage in their marketing mixwhile some are still way behind in becoming aware ofthe benefits
associated.One of the pioneering industries in this domain is definitelytechnologyindustry. According
to Brennal et al. (2012), since technologycompanies have themselves spearheaded new Web 2.0
business models,as well as enabling the whole social media phenomenon to develop through
incremental improvements in connectivity, they have been familiar with the potential earlier than others.
Moreover, some unique characteristics oftechnologyindustrymake these companies closer to the
conceptof marketdriving.
There are various viewpoints on how and why social media marketing is/mustbe used byB2B
technologycompanies.A highly supported one by academics is thatthe main aim of social media
marketing for B2B technology companies is creating “marketdriving” perception.(Sarin etal., 2003)
They argue that the main aim is to position their firms as “marketdriving”. Kumar et al. (2000) describes
3. . summarized fromdissertation submitted to’Oxford Brookes University’
“marketdriving” as a firm’s abilityto lead fundamental changes in the evolution of industryconditions by
influencing the value creation process atthe product,market, or industrylevels. The sophisticated
nature of technologyindustry requires firms to markettheir products & services accordinglyand “market
driving” or so-called “thoughtleadership” perception plays an importantrole in this.
This research aims to understand whether technologyfirms’ efforts in this positioning strategycreate
the perception of “marketdriving” in the minds of their social media followers.The technologyindustry is
limited to “enterprise software companies who develop and sell software solutions to various industries”
such as SAS, Oracle (software only), IBM (software only), Informatica and SAP (software only). The
reasoning behind this choice is to analyse the companies working in the same dynamic environment.
2. WHAT IS “MARKET DRIVING”
“Market driving” or “driving markets” is a conceptof marketorientation.Kohli et al. (1993) define market
orientation as the organization wide generation of marketintelligence pertaining to currentand future
needs ofcustomers,dissemination ofintelligence horizontallyand vertically within the organization, and
organization wide action or responsiveness to marketintelligence.Jaworski etal.(2000) discuss two
approaches to being marketoriented- a market-driven approach and a driving-markets approach.
Market-driven refers to a business orientation thatis based on understanding and reacting to the
preferences and behaviors ofplayers within a given marketstructure.According to the authors,driving
markets,on the other hand,implies influencing the structure ofthe marketplayers in a direction that
enhances the competitive position ofthe business.
Sarin et al. (2003) argue that marketing in technologyindustryrequires a broader and more proactive
strategic approach called “market driving”.Based on all these literature reviewed, this paper defines
marketdriving as “a firm’s abilityto lead and change their industryby creating value at product,market
and/or industry levels.”
Dimensions of Market Driving Strategy
In their study, Sarin et al. (2003) constructed “marketdriving” on 3 main dimensions:value creation,
change and leadership.These 3 dimensions will be the basis ofthis research in evaluating customers’
perceptions.These have been selected as the basis to the study since these dim ensions were
evaluated to be common in mostdefinitions given above thus cover the literature widely. As this paper
will discuss later under social media marketing section,Sarin et. al. (2003) argue that active
participation in B2B social media networks contribute along all three ofthese dimensions and become a
valuable componentofa marketdriving strategy in technologyindustries.
Value creation
Market driving organizations create value by engaging in innovative activities both within the
organization, and outside it (Deshpande etal.,2000). Value creation can occur through means such as:
process innovation (Reichheld and Sasser,1990) strategyimplementation (Hamel,1996),and
developmentofcompetitive barriers to entry (Jaworski etal., 2000) among others.
Change
4. . summarized fromdissertation submitted to’Oxford Brookes University’
Market driving organizations actas change agents or catalysts.(Sarin et al., 2003) Market driving firms
don’tjustengage in educating customers (Kumar etal., 2000),but their activities extend to creating
fundamental shifts in the attitudes,behaviors and structures ofcompetitors,allies,potential partners,
investors and other industry-level actors (Jaworski etal., 2000)
Leadership
Closelyrelated to the dimension ofchange,leadership is the third dimension of“marketdriving”
behaviour. While it may be possible thatany firm mightcreate value or effect change,marketdriving
firms extend themselves further,compelling other industryparticipants to follow them in a new direction.
(Sarin et al., 2003)
Levels of Market Driving Strategy
So far the findings ofthe study regarding marketdriving being a multi-dimensional concepthave been
discussed.Besides being multi-dimensional, marketdriving is also a multi-level concept.Sarin et al.
suggestthatmarketdriving can occur in the following 3 levels:
Industry level: activity focused on driving change to the nature of competition by altering the
structures and/or functions ofindustry participants.
Market level: activity focused on driving change in one or more marketspace(s) within an industry
by altering customer preferences/behaviours.
Product level: activity focused on driving change to products/services byaltering the industry
standards for that offering.
3. MARKET DRIVING IN HIGH-TECHNOLOGY INDUSTRY
Mohr (2014,p9) argues thatstandard marketing strategies need to be modified and adapted in high -
tech industries. Marketing in technologically-oriented industries presents organizations with a unique set
of issues and challenges.(Sarin et al., 2003) High-technologyenvironments manifesta setof common
characteristics- mostnotably(1) marketuncertainty, (2) technological uncertainty, and (3) competitive
volatility. (Mohr 2014,p11)
Technological Uncertainty
There is always a technological uncertaintyas there is a doubtabout the ability of new technology to
function properly. Mohr (2014) defines technological uncertaintyas not knowing whether the
technology- or the companyproviding it- can deliver on its promise to meetspecific needs. When a
new technology is launched,there is always a hesitation both on the technologyowner and user side.
High-technologymarketers mustpursue strategies thatwill make the customers/potential customers
trust them.This paper asserts thatthis “trust” can be builtby positioning themselves as “thought
leaders”.As argued in Heath et al (2013), Prince and Rogers define a thought leader as “an individual
or firm that prospects,clients,referral sources,intermediaries and even competitors recognize as one of
the foremostauthorities in selected areas ofspecialization,resulting in itbeing the go-to-individual or
organization for said expertise.”
Market Uncertainty
5. . summarized fromdissertation submitted to’Oxford Brookes University’
Market uncertainty refers to ambiguityabout the type and extent of customer needs thatcan be satisfied
by a particular technology.It arises due to customer fear and anxiety, concern aboutthe
market/customer (end-user) reaction to the new technology, the ability of the technology to meet
customer needs,and the ability of the marketto accept the technologyas a standard (Mohr 2014, pp12-
14). Mohr (2014) argues thatcustomers having such anxieties and concerns require a high degree of
education and information,and need post-purchase reassurance to assuage anylingering doubt.This
paper claims thatthis is another reason for high-technologycompanies to pursue a marketing driving
strategy and position themselves as thoughtleaders as thoughtleadership is associated with “educating
and influencing” by Heath et al (2013).Moreover “post-purchase reassurance” (Mohr, 2014) can be
guaranteed by “high trust” which is again associated with thoughtleadership (Heath etal, 2013).
Competitive Volatility
A third characteristics oftechnologymarkets,Mohr (2014,p16) claims,is competitive volatility which is
defined as ”the rate of change in marketparticipants,both in terms of the number ofcompetitors and
the basis on which participants compete.” It refers to both intensityin degree of change in the
competitive landscape and uncertaintyaboutcompetitors and their strategies. Technologyindustry
participants have to make decisions with insufficientinformation due to uncertainty and frequent
changes in competition.This leads to a perception of risk in participants atboth the supplyand demand
side of the industry(D’Aveni, 1995).
Mohr (2014,p17) mentions thata key implication ofcompetitive volatility for technologycompanies is to
avoid being myopic when it comes to evaluating competitive threats.He defines marketing myopia as
“the tendency of managers to be narrow-minded or short-sighted in their views abouttheir industry
contexts and their business strategies.” An example could be thinking that their technologyis so new
that they have no competitors.Marketers in this industryshould be very careful aboutsuch myopia and
keep on positioning themselves as the marketdriver/thoughtleader in that specific area.Davidow
(1986,p23) further argues:
”In slower-moving fields,the displacementofone competitor by another can take years. But in
high-tech fortunes can change overnight. Companies atthe forefront of technologytruly balance on
their razor’s edge.The minute you think you are safe in a high-tech marketsegment,you have
sown the seeds ofyour own defeat.”
4. ”MARKET DRIVING” STRATEGY IN SOCIAL MEDIA MARKETING IN B2B TECHNOLOGY
INDUSTRY
Heath et al. (2013) argues thatorganizations are increasinglyutilizing social media as an important
competitive tool that enables them to actively participate with key stakeholders including currentand
potential customers,potential employees,shareholders,competitors,industrythoughtleaders and
casual observers.Theystate that meaningful and focused social media conversations on ideas or
issues ofmutual interestto an organization and its stakeholders form the basis for strategic
engagementand continue:
”Organizations can engage with stakeholders via social media in a way that allows
them to manage their brand and influence demand for their products and services,
impactoverall marketdirections and guide future strategy.”
6. . summarized fromdissertation submitted to’Oxford Brookes University’
Influencing demand,impacting marketdirections and guiding future strategyare all seen as indicators
of being ”market-driving” which is used as synonymous with ”thoughtleadership” in this paper.
Sarin et al. (2003) argue that active participation in B2B social media networks contribute along all three
dimensions ofmarketdriving ”value creation, change,leadership” and become a valuable componentof
a marketdriving strategy in technology industries. According to the authors,the B2B marketer who
successfullyimplements a successful social media marketing strategycreates value for other
stakeholders and conditions for change within the industry by developing a new and vibrant forum for
the exchange of information and the collaborative developmentofnew ideas.Moreover, the goal of
social media marketing is to position the originator as a thought leader in that domain.They argue:
”The primary objective ofmarketdriving firms is to influence the evolution of their
industry in a direction consistentwith their own strengths and abilities,and to derive
long-term advantage from such an evolution.”
Based on the literature reviewed, this paper proposes a model (Figure 1) on how a B2B marketer can
drive a marketdriving strategy through social media marketing.
Figure 1: How B2B technology
marketer can drive a market-driving
strategy through social media
marketing
The model proposes thata B2B
marketer in technology industrywho
implements a successful social media
marketing strategyis able to show
that they create value for other
stakeholders,influence and lead
change in the industry and develop
new ideas. These are matching with
the dimensions ofmarketdriving:
Value creation,change,and
leadership. All these can be at product
level, marketlevel, and/or industry
level.
This paper claims thatB2B
technologycompanies mustposition
themselves as “marketdrivers”.This can be achieved through an integrated marketing approach in line
with overall marketdriving strategy. Efforts directly towards selling must be avoided and social media
mustbe seen as the platform to create “market driver/thought leader” perception.
7. . summarized fromdissertation submitted to’Oxford Brookes University’
5. RESEARCH METHODS & FINDINGS
The research is an exploratory research and is following a mixed method approach in which both
qualitative and quantitative methods are utilized.
The research starts with a content analysis aiming atidentifying the scope of social media for the
research. The term “social media” maybe used for various platforms. So the need to identify the scope
of social media was identified before the research has started. The content analysis was made using
SAS text mining software.Words’ frequencies have been counted with the aim of identifying which
social media platforms are mostrelevantfor the research.Once the scope was identified as Linkedin
and Twitter, this was used for the second and third phases ofthe research: questionnaire and interview.
The questionnaire was formulated around 3 dimensions and levels ofmarketdriving (Sarin et al., 2003).
Questionnaire results were analysed using SAS Enterprise Guide Software. Findings were then
discussed in a limited number of semi-structured interviews with an attemptto understand the survey
results better as it is a good way to interpret the data.
Figure 2: One-Way
Frequencies Analysis,
Distribution ofTotal Correct
Answers
As per the analysis,ithas
been noted that no
respondenthas given
”correct answers” (answers
that were associated with
dimensions and levels of
marketdriving per literature) to all the questions and only15 respondents outof102 gave more than 6
”correct answers” to 13 questions.This means 85,3% ofthe respondents gave 6 or less ”correct
answers” implying thatmajorityof our respondents do nothave the perception of”marketdriving”. As
clearly seen in both Figure 2, the highestfrequencyof number of“correct answers” is 4 with 25%,
followed by 21% of 5. As an example, 25 respondents outof102 respondents gave answers thatare
associated with a dimension and/or level of ”marketdriving” to 4 questions outof13 questions.So this
paper accepts that their level of “marketdriving” perception is only 25%.
The interviews conducted indicated a similar result,as exemplified bythe following answers:
”I don’treally think that I learn anything from them.Actually this is a good question.
They are technologycompanies and Iwould expect that I would learn a lot from them.
But what I see on social media is mostlyinformation abouttheir products.Idon’t really
need to follow that companyto see this.That information is readilyavailable on web
site.”
”I don’tthink they setthe standards for the market.I would rather say they may be
improving them in some cases or simplyfollow whatis alreadyset.”
8. . summarized fromdissertation submitted to’Oxford Brookes University’
These comments actuallygive an idea aboutwhy they do not perceive these companies as “market
drivers”. The follower doesn’texpectto see productreviews,in other words they do not want to see an
effort to sell them something.Some others also mentioned this in the interviews:If they want to
purchase something and want to make an online investigation,they can simplygo to the web sites.
Per industrybreakdown analysis,ithas been noted 32% of the respondents come from finance industry
representing the highestindustrypercentage.It is followed by Information Technologycompanies other
than the ones in enterprise software industry.Retail represents 16% ofthe respondents and 15% ofthe
respondents are from enterprise software industry.
A distribution boxplot analysis has been made based on industries.This analysis excludes outliers in
the data setas seen in Figure 3. Outliers are shown as blue squares under Finance,Other IT and
Retail.The widestrange of answers is seen in Other IT, whereas the narrowestrange is observed in
Other Industries.Among these other industries are Public,Manufacturing,Health Care, and Consulting.
Other IT includes all information technologycompanies thatprovide solutions & products other than
enterprise software. The black square in the blue box represents mean,the average value, which is
highestfor Enterprise Software Industry. This is an interesting figure that may also remind the term
“myopia” previously. Mohr (2014, p17) defines marketing myopia as “the tendencyof managers to be
narrow-minded or short-sighted in their views abouttheir industrycontexts and their business
strategies.” Marketers in this industryshould be very careful about such myopia and keep on positioning
themselves as the marketdriver/thoughtleader in that specific area. Though it requires further research,
the fact that enterprise software industryis the one with the highestperception of”marketdriving” could
mean that they are becoming ”myopic”.They may be thinking that their efforts to position themselves as
”marketdrivers” or ”thought leaders” are well structured and they are positioning themselves as ”market
drivers” however results from various industries are notsupporting this view.This means kind ofa lack
of awareness and is very dangerous for competitive position in the market.
Figure3:Distribution Analysis based on industry/Box Plot
9. . summarized fromdissertation submitted to’Oxford Brookes University’
A distribution analysis was also performed based on geographies.Although Africa showed the highest
rates for marketdriving perception among others,even it remained atvery low levels and explicit
statements showing “marketdriving” perception did notcome out of interviews with respondents from
other regions.
6. CONCLUSION
As seen in literature review performed,B2B technologycompanies mustsee social media as a strategic
marketing channel and mustinvestin this channel as partof their integrated marketing plans.However
the main aim in these efforts should notbe direct selling butcreating a “marketdriving” or “thought
leadership” perception.However research performed shows thatcurrentfollowers ofthese firms do not
think that they are “market-drivers” or “thoughtleaders” butsee them as “continuouslyposting already
available information and/or trying to sell them something via social media. The findings show thatthere
is still a huge gap between academic viewpointand industrypractice.
7. LIMITATIONS AND FURTHER RESEARCH
This research was performed with a limited number ofsamples so there is need for further research to
be able to make a concrete conclusion on the topic. Furthermore,the findings show differentresults for
different regions and industries.Although these differences were partlyexplained during interviews,a
further analysis is required using relevantliterature on cultural diversity, social psychology,sociology,
technologymaturity indexes and a more comprehensive research with a higher number ofsamples.
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