The effect of social media marketing activity on brand image and

brand loyalty

Master of Business Amanistration

Project Proposal By:

M.Waleed Shahzad
17-NTU-5136

Project Supervisior:
Dr. M. Shahzad Iqbal
The effect of social media marketing activity on brand image and brand loyalty

Introduction:
In the Introduction we overview of the whole research. A research background and problem
statement is drawn to let readers gain some basic knowledge of the research. The research
objectives and benefits related have clearly been identified and discussed. Information about
aspect of previous works, which related to this study have also been comprehensively discussed
in the study. This study explains the basics and fundamentals of existence and nature of
relationship between social media marketing activities and brand image and or brand loyalty.
In today's competitive environment, branding is a significant factor that differentiates similar goods
and services which are produced by different firms in the minds of the consumers and makes them
preferable for consumers (Brand positioning). The brand, while reflecting an authenticity, value and
commitment to the goods and services which are introduced to comers for businesses, has a function
ranging from reducing the risks related to goods and services for consumers and establishing social
bonds without expressing their identity. In this regard, businesses that achieved to become a brand
have been differently categorized in terms of goods and services they offer among other businesses.
They have a special position in consumer’s mind and build a business identity. The construction of
this identity is directly proportional to the communication between the brand and the consumer. The
greater the power of communication between the brand and the consumer, the higher the consumer's
brand preference and brand image. In any case, the important thing about branding is that the strong
relationship that established with consumers has the power to direct choice of the consumer and
brand image.
Background

The internet provides the companies and consumers with opportunities to reach a wider
audience and create compelling value propositions that were never possible before, through
providing new tools for promotion, interaction, relationship building and individualization.
According to the Internet world stats, data from 2018 indicates that there are 4.03 billion Internet
users, and Asia got the first place in the internet users in the world’s distribution by world
regions by 45.7%.
 Social media is a phenomenon that has drawn a lot of attention both to companies and
individuals interacting on the networking landscape. Social media has changed the traditional
communication between brands and consumers and enabled consumer to make positive as well
as negative influence on brand equity. Therefore, it is important for companies to know, how to
manage marketing activities in social media seeking to build brand image by building positive
awareness for brand.
One of the common channels of communication that companies have recently applied in their
marketing activities is social media. Social media can be defined as an online application
program, platform, or mass media tool that facilitates interaction, collaboration, or content sharing
between users in general. The effect of social media on consumer’s behavior includes a wide
spectrum of activities ranging from informing, sharing ideas and attitudes to acquire awareness
and understanding, and visualize post-purchase behavior without purchasing. This leads
businesses to be more interactive in marketing communications and to find innovative
applications to make products and brands more affordable through online marketing efforts via
social media communication channels. These practices, which express social media marketing
activities, include actions that encourage consumers to choose products and brands and that target
marketing messages to other consumers online.
In research, it has been identified that social media marketing activities are significant parts of
branding actions for businesses. However, it has been observed that social media marketing
activities generally focus on customer satisfaction and the effects on customers' behavioral
intentions.
The art of marketing is largely the art of brand building. Brands have been considered as the
second most important assets for a firm after customers. Strong brand has several advantages such
as: fast recognition of an offering, assurance to the quality and performance and emotional
benefits. Obtain price premium, obtain higher market share, loyal customer and offer avenues for
further growth. Enhance company value, increase consumer perceptions and preferences, barrier
to competition, high profits and base for brand extensions.
OBJECTIVES:
The objective of this research are as following:

 Examine the effect of social media marketing on brand awareness.

 Measuring the effect of social media marketing on brand image.
 Analyzing the effect of social media marketing on brand loyalty.
.
PROBLEM DEFINITION:
In addition, with a very low cost, informing customers is very functional in terms of
familiarity and brand awareness that products and brands of businesses appear on social
networks where millions of users sign in but there is a lack of emotional connections and
diminishes understanding and thoughtfulness. Marketers are aware of the opportunities and
appealing that social media has presented as part of its marketing strategy.
This research aims to provide an understanding about the relation between social media
marketing and branding techniques. The research further explains the effects and nature of
these said effects on the image and loyalty of a brand.
LITERATURE REVIEW
Social Media remarkably facilitates marketers with opportunities to reach consumers
their social communities and helps in create relations with consumers (Kelly et al., 2010). Social
media has revolutionized the way brand content is created, distributed and consumed and has
transferred the power to shape brand images from conventional marketing practices to online
connections of consumers and content generated and consumed by them (Tsai and Men, 2013).
Social media proves to have quite a significant role in the success of a brand across many sectors
(Phan et al., 2011). Louis Vuitton (LV) for example posts videos of its catwalk presentations on
its Facebook page, giving all LV fans the opportunity to enjoy the show (Kapferer, 2012).
Burberry launched an online shopping site for Chinese consumers, offering a 24-hour customer
service through online chat systems. The brand also has accounts on Chinese social media sites
such as (kaixin001.com and douban.com). Local celebrities send comments to the Burberry
account on Weibo (a microblogging service). In January 2012, Burberry had 180,000 Weibo
followers, up from 90,000 in early 2011 (Spillecke & Perrey, 2012).

Hermès launched J'aime mon carre (I love my scarf), a social networking website dedicated to
 its signature square scarves. The website, which is directly linked to the Hermès Facebook page,
shows hip young girls wearing scarves as turbans, ties, belts, bras, and around the neck
(Cpp- luxury.com 2013). (Kim and Ko, 2012) described brands' social media marketing efforts
as comprising five dimensions: entertainment, interaction, trendiness, customization, and word of
mouth (WOM).
Methodology
Social media are online applications, platforms and media which aim to facilitate
interactions, collaborations and the sharing of content (Richter & Koch, 2007). They take a
variety of forms, including weblogs, social blogs, micro blogging, wikis, podcasts, pictures,
video, rating and social bookmarking. As their use increases exponentially, not only existing
social networkers but even business firms and governmental organizations are joining and using
them as communication tools. Unlike individual social networkers, these entities actively make
use of the media for advertising and marketing. While commercial messages and interactions with
consumers’ partner with media, events, entertainment, retailers, and digital services through social
media, it is possible to perform integrated marketing activities with much less effort and cost than
before. According to Kim and Ko (2010), social media can have a dramatic impact on a brand's
reputation. One-third of survey participants posted opinions about products and brands on the
brand's blog, and 36% thought more positively about companies that have blogs. A recent study
by DEI Worldwide (2008) provides the following statistics: 70% of consumers have visited social
media sites to get information; 49% of these consumers have made a purchase decision based on
the information they found through the social media sites; 60% said they were likely to use social
media sites to pass along information to others online; and 45% of those who searched for
information via social media sites engaged in word-of-mouth. The report states that companies
not engaging in social media as part of their online marketing strategy are missing an opportunity
to reach consumers. With a significant percentage of people passing along information to others
through social media, the value of one customer is worth far more than what he or she initially
spends. Thus, firms and brands now need to factor in the value of customers and also the
influence of social media on them.
 Hypothesis

H1. Social media marketing activities have positive effect on Brand awareness

H2. Social media marketing activities have positive effect on Brand loyalty

H3. Social media marketing activities have positive effect on Brand image

Research Model

The research model guiding this research is depicted in Figure 1. The proposed model
draws from the diverse research. As the figure depicts, social media marketing efforts have direct
effects on the perceived quality of a brand, which is exponential and significant for maximization
of awareness, image and loyalty of said brand. The research model in Figure 1 posits the social
media marketing activities has a positive effect on brand image and brand loyalty.

Brand Awareness

Social Media
Perceived Quality Brand Image
Marketing Efforts

Brand Loyalty