Dissertation Fernando bez - An Exploration Into the Impact of Social Media on Marketing Strategy

II
An Exploration into the Impact of Social Media on Marketing Strategy
Fernando Bez
M. Sc. in Strategic Management
Dublin Institute of Technology
Supervisor: Gerry Mortimer
September 2013

IIIIII
DECLARATION
I hereby certify that this material, which I now submit for assessment on the programme of
study leading to the award of
M. Sc. in Strategic Management
is entirely my own work and has not been submitted for assessment for any academic purpose
other than in partial fulfilment for that stated above.
Signed ............................................................. Date .............................................
(Candidate)
Word Count - 19569

IV
ACKNOWLEDGEMENTS
I wish to express my sincere appreciation and gratitude to the following individuals, without
whose assistance, this study would not have been possible.
Firstly I would like to thank my supervisor Gerry Mortimer for his valuable support and
insight throughout the writing process and for making this dissertation joyful to write.
Secondly I would like to thank the interviewees who gave up their time to participate in the
interviews.
A note of thanks goes to Mrs Sudeshni Fisher for her involvement in this study as she
provided input, advice and support.
Huge thanks to my classmates Roberto, Michael and Andrea for motivating me, sharing ideas
and the constant reminder of the proverb “failure is not an option”.
Thank you to both my parents for believing in me and encouraging me throughout this entire
study period, it cannot be appreciated enough.
Finally I would like to thank my classmate Michael De Korte for his continuous support,
patience, dedication and for being a constant source of inspiration.

V
TABLE OF CONTENTS
DECLARATION ..................................................................................................................................................... III
ACKNOWLEDGEMENTS....................................................................................................................................IV
LIST OF FIGURES..................................................................................................................................................IX
LIST OF TABLES .................................................................................................................................................... X
Chapter INTRODUCTION................................................................................................................................1
1.1 Background to the Study.............................................................................................. 2
1.1.1 General Introduction to the Research .................................................................... 2
1.2 Research Problem, Limitations of the Study, Objectives and Report Structure............. 2
1.2.1 The Research Problem.......................................................................................... 2
1.2.2 Purpose of the Study............................................................................................. 3
1.2.3 Structure of the Dissertation.................................................................................. 3
Chapter LITERATURE REVIEW...................................................................................................................5
2.1 Introduction to the Literature Review .......................................................................... 6
2.1.1 Aim of this Literature Review............................................................................... 6
2.2 What is Social Media................................................................................................... 7
2.2.1 Definitions of Social Media .................................................................................. 7
2.2.2 Web 2.0................................................................................................................ 9
2.3 Rise of the Social Media............................................................................................ 11
2.4 Strategy..................................................................................................................... 15
2.4.1 Strategy Definition.............................................................................................. 15
2.4.2 The role of Strategy ............................................................................................ 15
2.5 Social Media Strategy................................................................................................ 16
2.6 What is Marketing Strategy....................................................................................... 19
2.7 Social Media and Marketing...................................................................................... 21
2.8 Value Creation .......................................................................................................... 22

VI
2.9 This is What Social Media Can Do............................................................................ 23
2.9.1 Dell .................................................................................................................... 23
2.9.2 PepsiCo .............................................................................................................. 23
2.10 Conclusion .............................................................................................................. 24
Chapter RESEARCH METHODOLOGY....................................................................................................25
3.1 Introduction............................................................................................................... 26
3.2 The Research Path..................................................................................................... 27
3.3 The Research Question.............................................................................................. 29
3.4 Research Objectives .................................................................................................. 30
3.5 Research Philosophy ................................................................................................. 31
3.5.1. Epistemology..................................................................................................... 32
3.5.2 Positivism........................................................................................................... 32
3.5.3 Interpretivism ..................................................................................................... 33
3.5.4 Realism............................................................................................................... 33
3.5.5 Conclusion.......................................................................................................... 33
3.6 The Research Approach............................................................................................. 34
3.6.1 Deductive Research ............................................................................................ 34
3.6.2 Inductive Research.............................................................................................. 35
3.6.3 Conclusion.......................................................................................................... 36
3.7 Research Design........................................................................................................ 36
3.7.1 Secondary Research............................................................................................ 36
3.7.2Primary Research................................................................................................ 36
3.7.3 Ethnography ....................................................................................................... 37
3.7.4Netnography ....................................................................................................... 37
3.7.5 Qualitative Research........................................................................................... 37
3.7.6 Conclusion.......................................................................................................... 39
3.8 Data collection Method.............................................................................................. 39

VII
3.8.1 Semi Structured Interview Process...................................................................... 40
3.8.2 The Sample......................................................................................................... 41
3.8.3 The Choice of the Companies ............................................................................. 41
3.8.4 Candidate Selection ............................................................................................ 41
3.8.5 Data Required..................................................................................................... 41
3.8.6 Structure of the interviews .................................................................................. 42
3.8.7 Limitations of Methodology................................................................................ 42
3.8.8 The role of the Researcher .................................................................................. 43
3.9Data Preparation and Analysis.................................................................................... 44
3.9.1 Categorization .................................................................................................... 45
3.9.2 Utilising Data ..................................................................................................... 45
3.9.3 Recognizing Relationships and Developing Categories....................................... 45
3.9.4 Developing and Testing Hypothesis.................................................................... 46
3.9.5 Reliability and Validity....................................................................................... 46
3.10 Conclusion .............................................................................................................. 47
Chapter ANALYSIS AND FINDINGS........................................................................................................48
4.1 Introduction............................................................................................................... 49
4.2 Participants................................................................................................................ 50
4.3 Coding....................................................................................................................... 50
4.3.1 Coding Categories .............................................................................................. 50
4.4 Interviewees background on social media channels.................................................... 51
4.4.1 Social Media Channels in a private capacity ....................................................... 51
4.4.2 Social Media Channels in a professional capacity ............................................... 52
4.5 Research Questions ................................................................................................... 53
4.5.1 Research Question One....................................................................................... 53
4.5.2 Research Question Two...................................................................................... 55
4.5.3 Research Question Three .................................................................................... 57

VIII
4.6 New findings............................................................................................................. 58
4.6.1 How to use Social Media .................................................................................... 59
4.6.2 Main reason for using social media within organizations .................................... 63
4.6.3 Brand Awareness................................................................................................ 65
4.6.4 Social Media Risks ............................................................................................. 67
Chapter CONCLUSIONS AND RECOMMENDATIONS .....................................................................68
5.1 Summary of Dissertation ........................................................................................... 69
5.2 Review of the Research Objectives............................................................................ 70
5.2.1 Conclusion – Research Question One ................................................................. 70
5.2.2 Conclusion – Research Question Two................................................................. 70
5.2.3 Conclusion – Research Question Three............................................................... 71
5.3 General Conclusion ................................................................................................... 72
5.4 Research Limitations ................................................................................................. 72
5.5 Recommendations ..................................................................................................... 73
5.5.1 Recommendations for future researchers............................................................. 73
5.5.2 Recommendations for organizations ................................................................... 73
APPENDICES .........................................................................................................................................................75
APPENDIX SAMPLE EMAIL SENT TO INTERVIEWEES IN JUNE 2013...............................76
APPENDIX SAMPLE EMAIL SENT TO THE INTERVIEWEES...................................................77
APPENDIX INTERVIEWEE GUIDE........................................................................................................78
APPENDIX INTERVIEWEES PROFILE...............................................................................................79
APPENDIX -THEME SHEET FOR INTERVIEWS................................................................................80
APPENDIX SAMPLE INTERVIEW TRANSCRIPT ............................................................................82
APPENDIX CODING OF THE THEMES................................................................................................94
BIBLIOGRAPHY.................................................................................................................................................110
ONLINE REFERENCES...................................................................................................................................115

IX
LIST OF FIGURES
Figure 2.1: Steps in the consumer decision journey 09
Figure 2.2: Web 1.0 and Web 2.0 10
Figure 2.3: Commonly used social media platforms by marketers 13
Figure 2.4: The most important social platform for marketers 14
Figure 3.1: ‘The Research Onion’ 28
Figure 4.1: When and Why to create content 60
Figure 4.2: Tweet activity from the #aima13and 62
Figure 4.3: Example of how KLM uses social media 63
Figure 4.4: Why are companies using social media 64
Figure 4.5: The Marketing Funnel 66

X
LIST OF TABLES
Table 1.1: Classification of Social Media 19
Table 4.1: Coding Categories 51
Table 4.2: Emerging Themes 59

XI
ABSTRACT
An Exploration into the Impact of Social Media on Marketing Strategy
Student: Fernando Bez
The growing usage of social media indicates a new potential platform for marketers.
However, little academic research examines the impact social media is having on
organizational marketing strategies.
This exploratory study uses an interpretivist philosophy to gain a qualitative insight into the
marketing strategies currently employed by organizations as opposed to those used prior to
their journey into social media. This is achieved through a combination of secondary
academic research into the rising of social media and primary research in the form of
ethnography and semi-structured in depth interviews. These interviews were conducted on
key individuals of organizations who are currently active on social media.
The findings confirm that social media has had a significant impact on marketing strategies
for the companies interviewed allowing them to interact with customers, support marketing
initiatives and create brand awareness. These results offer insight into how social media
supports brand proposition, provides the brand a personality and drives traffic.
The findings suggest that professionals should consider which social media channels work
best for them and how to best utilize social media in their marketing plans. General themes
and categories from participants’ responses were evaluated and recommendations regarding
the use of social media are proposed by the researcher.

Introduction
2
“We are what we repeatedly do. Excellence, therefore, is not an act, but a habit.”
- Aristotle
1.1 Background to the Study
1.1.1 General Introduction to the Research
For billions of people, life without Twitter or Facebook is almost impossible to contemplate.
Increasingly the same is true for businesses (Winkler, 2013). The concept of social media is
top of the agenda for many executives nowadays. Decision makers, as well as consultants, try
to identify ways in which firms can make profitable use of applications such as Wikipedia,
YouTube, Facebook, Second Life, and Twitter (Kaplan & Haenlein, 2010, p. 59).
Facebook today has one billion user accounts and Twitter has 250 million users, tweeting
more than 340 million tweets per day. Social media and the way we use web 2.0
communication technologies have transformed our way of constructing, accessing and
disseminating knowledge (Kaplan & Haenlein, 2010).
In this report a contribution will be made in understanding the impact of social media on
marketing strategy and the influences that are shaping marketing strategy. Consumers are
having conversations about brands and its products and brands are often not aware of them.
With social media, a negative incident or experience of a consumer with a brand can be
shared with millions of people by the press of a button via the internet as Dell found out in
2009 (Jarvis, 2009).
The main research question of the thesis is: What is the impact of social media on Marketing
Strategy? This will be achieved by examining the strategic use of social media within
companies located in Ireland and its consequences on marketing strategies.
1.2 Research Problem, Limitations of the Study, Objectives and Report Structure
1.2.1 The Research Problem
Sekaran (2003, p. 69) states that research problem is a precise statement of the question that
is to be investigated. The research problem is defined by Blumberg et al. (2008, p. 85) as the

Introduction
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management question – a restatement of the manager’s dilemma(s) in question. Since social
media represents a challenge for marketers, the author decided that social media would be the
area of interest for this study. The aim of this study is to investigate the impact of social
media on marketing strategy and the research question has been selected as “What is the
impact of social media on marketing strategy?”
1.2.2 Purpose of the Study
The focus of this dissertation is to answer the research question by exploring how marketing
strategy is affected by social media. The author feels that he should make clear what the
study is not about. The study is not about the characteristics and benefits of specific social
media tools. The aim is not to explore how organisations use social media, or explore the use
of each type of social media, but to study the impact of social media on marketing strategies
employed by organizations and their influences. Additionally this study is a B2C (Business to
Consumer) orientated; therefore no attention is given to B2B (Business to Business)
literature.
1.2.3 Structure of the Dissertation
This report examines how social media have affected marketing strategies employed by
organizations before they embarked on using social media and what is the current strategy with
regards to social media and contains the following chapters:
Chapter 2 undertakes a review of the existing literature on social media. The literature review
begins with various academic and practitioners definitions of social media and the rise of
social media is discussed. It is followed by the literature review on strategy, social media
strategy and marketing strategy. Furthermore, the chapter will provide an understanding of
value creation and analyzes two case studies of the following companies: Dell and PepsiCo.
Chapter 3 of the report describes the research methodology that is employed for the research.
The research question and sub objectives are also outlined. The various research methods are
identified and a selection is made of the most suitable strategy to collect the data. The data
collection method of semi-structured interview is outlined along with the practicalities of the
data collection and analysis. Finally the researcher outlines the limitations of the methodology.

Introduction
4
Chapter 4 presents the analysis and findings of the research. The researcher reviews the data
primary research and examines this in relation to the primary research question and sub-
objectives.
Chapter 5 contains the conclusion and recommendations following on from the findings of
the primary research. It outlines other themes which have emerged from this study, the
limitations of the particular research and some areas for possible research.

Literature Review
6
“If you can’t explain it simply, you don’t understand it well enough.”
Albert Einstein
2.1 Introduction to the Literature Review
2.1.1 Aim of this Literature Review
(Webster & Watson, 2002) note that a methodological review of past literature is a crucial
endeavor for any academic research (as cited in Levy & Ellis 2006, p. 185). The need to
uncover what is already known in the body of knowledge prior to initiating any research
study should not be underestimated (Hart, 1998). However, it is important to remember that
not everything reported in the literature is of equal rigor (Ngai & Wat, 2002).
Reviewing the literature critically will provide the foundation on which the research is built.
Two major reasons exist for reviewing the literature. The first, the preliminary search that
helps to generate and refine research ideas. The second is part of your research project proper
(Saunders et al. 2007). Conducting a literature review is a means of demonstrating an
author`s knowledge about a particular field of study, including vocabulary, theories, key
variables and phenomena.
The aim of this literature review is to locate and critique relevant theory related to the
research problem, “What is the impact of Social Media on Marketing Strategy” and identify
concepts and themes (Ghauri & Grounhaug, 2005).
Hart (1998, p. 01) defines the literature review as “the use of ideas in the literature to justify
the particular approach to the topic, the selection of methods, and demonstration that this
research contributes something new”. Webster and Watson (2002) define an effective
literature review as one that “creates a firm foundation for advancing knowledge (as cited in
Levy & Ellis 2006, p. 185).
(Davison et al., 2005) explain that use of the peer-review process is essential as it ensures
that researchers can “use published work with confidence, and use the works of others as
stepping stones and corner stones for advancing new concepts and insights” (as cited in Levy
& Ellis 2006, p. 185).

Literature Review
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The objective of this particular chapter is to conduct a review of the existing literature on
social media and its impact on marketing strategies. The chapter begins by explaining what
social media is and the rise of social media will be discussed. This is followed by an
explanation of what strategy is and the literature on social media strategy and marketing
strategy is then discussed. The last section of the chapter reviews the literature on successful
stories of companies using social media.
2.2 What is Social Media
2.2.1 Definitions of Social Media
What is social media? Kaplan and Haenlein (2010, p. 60) define social media as “a group of
internet-based applications that build on the ideological and technological foundations of
WEB 2.0 and that allow the creation and exchange of user-generated content”. Solis (2007)
describe that social media are online tools that people use to share content, insights, opinions,
profiles, experiences, perspectives and media itself. Social media facilitates conversations
and online interaction between groups of people.
Social media is, therefore, forms of electronic communication through which users create
online communities to share information, ideas, personal messages, and other content. The
terms Social Media and Web 2.0 are often used as interchangeable (Constantinides &
Fountain, 2008) furthermore there seem to be confusion among managers and academic
researchers alike as to what exactly should be included under this term (Kaplan & Haenlein,
2010, p. 60). Further, it is also a tool for dialogue and conversation “that allows the creation
and exchange of user generated content” (Kaplan & Haenlein, 2010, p. 61).
Social media can take many different forms, including social networks, internet forums,
weblogs, social blogs, micro blogging, wikis, podcasts, pictures, video, rating and social
bookmarking (Kaplan & Haenlein, 2010, Weber, 2009)
There are a number of other words that suggest a similar meaning for what is understood by
social media. These synonyms include the social web (Weber, 2009; Weinberg, 2009), ‘the

Literature Review
8
groundshell’ (Li & Bernoff, 2008), ‘consumer generated media’ (Constantinides & Fountain,
2008).
Kaplan and Haenlein (2010, p. 60) note:
The era of Social Media as we understand it today probably started about 20 years
ago earlier, when Bruce and Susan Abelson founded ‘Open Diary’, an early social
networking site that brought together online diary writers into one community.
Weber (2009, p. 04) states that the social media web is “the online place where people with a
common interest can gather to share thoughts, comments, and opinions”. The groundswell is
described by Li and Bernoff (2008, p. 09) as “a social trend in which people use technologies
to get the things they need from each other, instead of from companies”.
Companies everywhere have been rolling out the red carpet in communities like Facebook,
LinkedIn, Twitter, and YouTube to build a fan base and monitor consumer emotions. Social
media such as blogging, video and photo sharing, forums, virtual worlds, opinion markets,
and collaboration environments present an opportunity to communicate with constituents
regarding their place in it.
Divol, Edelman and Sarrazin, (2012) have identified social media`s four primary functions as
depicted in figure. 2.1 - to monitor, respond, amplify, and lead consumer behavior - and
linked them to the journey consumers undertake when making purchasing decisions.

Literature Review
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Figure 2.1: Steps in the consumer decision journey
Source: Divol, Edelman, and Sarrazin, (2012) Demystifying Social Media, McKinsey
Quarterly, Marketing and Sales Practice. [Online]
Social media is offering numerous opportunities to influence consumers, consequently many
chief marketing officers say that they wanted to increase their social media budget which was
an average of 7.4 percent in 2012 of their overall marketing budget. The main obstacle to
increase that share is the perception that the return on investment (ROI) from such initiatives
is uncertain (Hanna et al. 2011).
Chiu et al. (2012) analyse that China has the world’s most active environment for social
media. More than 300 million people use it, from blogs to social-networking sites to micro
blogs and other online communities. Divol et al. (2012) argue that without a clear sense of the
value social media creates, it is perhaps not surprising that so many CEOs and other senior
executives do not feel comfortable when their companies go beyond mere “experiments” with
social-media strategy.
2.2.2 Web 2.0
Web 2.0 is a collection of open-source, interactive and user-controlled online applications
expanding the experiences, knowledge and market power of the users as participants in
business and social processes (Constantinides & Fountain, 2008, p. 232).

Literature Review
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Web 2.0 is the term given to describe a second generation of the World Wide Web that is
focused on the ability for people to collaborate and share information online. Other improved
functionality of Web 2.0 includes open communication with an emphasis on Web-based
communities of users, and more open sharing of information. Web 2.0 has been used over
time more as a marketing term than a computer-science-based term. Blogs, wikis, and Web
services are all seen as components of Web 2.0.
Web 2.0 focuses on all forms of networking, how applications are being shared, how the
users integrate, link and communicate on the web creating online activities. The more data
and service are shared on the web the better the platform gets (O’Reilly, 2005).
Figure 2.2: Web 1.0 and Web 2.0
Source: O’Reilly (2005)
As depicted in figure 2.2 O’Reilly (2005) defines Web 2.0 as a collection of open-source,
interactive and user-controlled online applications expanding the experiences, knowledge and
market power of the users as participants in business and social processes.
Social media is a powerful tool that allows us to go where our existing and potential
customers are already engaged in conversation and connect with people we might not
otherwise reach. However, the challenge facing many companies is that although they
recognize the need to be active in social media, they do not truly understand how to do it
effectively, what performance indicators they should be measuring, and how they should
measure them. (Hanna et al. 2011, p.1).

Literature Review
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Harris and Rae (2010, p. 04) note that the internet has become known as ‘‘Web 2.0’’. In
many ways it represents a return to its roots; the Internet started life as a peer-to-peer
communication tool to exchange data among a number of users, allowing members of the
scientific community to collaborate and share information easily.
Today community sites such as TripAdvisor encourage users to review services that they
have experienced for the benefit of other users who are considering their own possible
purchases. Many people in the UK now buy a product or service directly because of
comments posted on a community by other consumers. This trend is fundamentally changing
the relationship between businesses and their customers, particularly as the information
(which may of course be positive or negative) is displayed in a very public – indeed global –
forum (Harris & Rae, 2010, p. 04)
2.2.2.1 Web 2.0 Competencies
O’Reilly (2005) summarizes what he believes to be the core competencies of Web 2.0
companies:
Services, not packaged software, with cost-effective scalability
Control over unique, hard-to-recreate data sources that get richer as more people use
them
Trusting users as co-developers
Harnessing collective intelligence
Leveraging the long tail through customer self-service
Software above the level of a single device
Lightweight user interfaces, development models, and business models
2.3 Rise of the Social Media
Divol et al. (2012) observe that social media is a relatively new topic, as a consequence the
vast majority of executives have no idea how to harness social media`s power. Businesses
are getting involved in social media in an attempt to increase sales, create brand awareness
and or attempt to reach new customers.

Literature Review
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Divol et al. (2012) highlight that executives certainly know what social media is. After all, if
Facebook users constituted a country, it would be the world’s third largest, behind China and
India. Executives can even claim to know what makes social media so potent: its ability to
amplify word-of-mouth effects. Companies diligently establish Twitter feeds and branded
Facebook pages, but few have a deep understanding of exactly how social media interacts
with consumers to expand product and brand recognition, drive sales and profitability, and
engender loyalty.
Harris and Rae (2010) argue that online communities will play a key role in the future of
marketing because they replace customer annoyance with engagement, and control of the
content with collaboration. Harris and Rae also claim that prosperous businesses of the future
will be those who embrace the social media and who see change as an opportunity.
As social media usage has become an increasingly influential factor in our everyday life
companies also see it as an attractive area to take advantage of. It is no secret that consumers
increasingly go on line to discuss products and brands, seek advice and offer guidance. Yet it
is often difficult to see where and how to influence these conversations, which take place
across an ever-growing variety of platforms, among diverse and dispersed communities, and
may occur either with lightning speed or over the course of months. (Divol et al. 2012)
Social media is growing due to the advantages they offer consumers such as transparency,
referrals, and ease of communication, and the empowerment they bring (Urban, 2004). This
has left marketers scratching their heads as to how to react (Mangold & Faulds, 2009).
The growing popularity of websites such as YouTube and Facebook demonstrates how the
Internet is changing; users are no longer simply downloading static data, but are increasingly
uploading and sharing content among themselves, leading to a proliferation of social
networks and other user-generated content sites. Li and Bernoff (2008) refer to this
fundamental transfer of power from institutions to individuals and communities as ‘‘the
groundswell’’ and it forms the title of their thoughtful and thoroughly researched book on the
topic. The authors’ predictions of significant change in marketing practice are supported by a
number of respected authors such as Weber (2009).

Literature Review
13
The use of social media and other electronic communication is growing quickly with
increasing numbers of social media platforms and applications, including blogs, social
networking sites, video sites, and forums.
Marketers are increasing their social media budgets. Marketers planned to allocate an average
of 7.4% of their overall marketing budgets to social media in 2012 and expect this amount to
increase to 19.5% by 2017, according to Business Poll carried out by the Duke University’
Fuqua School of Business poll of CMOs taken in February. This is a sign that social media
continues to mature. As it does so, it is time for marketers to start using social media as a key
marketing tool.
Figure 2.3: Commonly used social media platforms by marketers
Source: Stelzner (2013, p. 23) Social Media Marketing Industry Report. How marketers are
using social media to grow their businesses
As illustrated in figure. 2.3, Stelzner (2013, p. 23) reveals that Facebook, Twitter, LinkedIn,
blogging and YouTube were the top five platforms used by marketers, with Facebook leading
the pack. The top six have remained virtually the same since 2012.
Shih and Shalett (2013) divulge that there are conversations taking place about companies or
brands 24 hours a day, seven days a week in social media. Are you a part of these

Literature Review
14
conversations? Or are you hoping that if you don't hear them, they don't exist? Social media
offers a variety of opportunities for brands to understand and participate in those
conversations. While participating in social media is not without risk, not participating might
prove to be the greater risk — especially to reputations.
Figure 2.4: The most important social platform for marketers
Source: Stelzner (2013, p. 23) Social Media Marketing Industry Report. How marketers are
using social media to grow their businesses
As illustrated in figure 2.4, nearly half of marketers (49%) chose Facebook as their most
important platform, followed by LinkedIn (16%), blogging (14%) and then Twitter (12%).
This chart clearly reveals Facebook is the powerhouse platform for marketers. Hanna et al.
(2011) highlight what was noted by Reid Hoffman, co-founder of LinkedIn “the ability to
leverage relationships embodied in social networks will become one of the most
transformative uses of the Internet.”
Hanna et al. (2011, p. 08) note that technology has transformed the traditional model of
marketing communications. The rise in interactive digital media has catapulted company and
consumer contact from a Web 1.0 passive model, to a Web 2.0 interactive model where
consumers are simultaneously the initiators and recipients of information exchanges. The
combination of both traditional and social mediums allows companies to develop integrated
communication strategies to reach consumers on a myriad of platforms, enabling a wide
sphere of influence.

Literature Review
15
2.4 Strategy
2.4.1 Strategy Definition
Chandler (1962, p. 15) referred to strategy`s generic purpose as the “determination of the
basic long-term goals of an enterprise and the adoption of courses of actions and the
allocation of resources necessary to carry out these goals. Mintzberg (1978, p. 934) defines
strategy as “a pattern in a stream of decisions”,
Grant (1991, p. 114) states that strategy has been defined as “the match an organization
makes between its internal resources and skills…and the opportunities and risks created by its
external environment” while more recently McKeown (2013) argues that “strategy is about
shaping the future as the attempt to provide the organization with a direction.
More specifically within strategy content research, the individual organization approach
defines the purpose of strategy as the matching of external market opportunities with internal
firm competencies (Porter, 1991)
At first one may think about strategy as a general concept surrounding all the company and as
being controlled by the CEO. The most common way of thinking is to imagine the chief
executive as the one deciding over what to do and then let employees do it. Strategy is a little
bit more subtle and has to be seen as a tool enabling the firm to adapt to changes (Grant,
1991).
2.4.2 The role of Strategy
Porter (1991, p. 95) argues that the reason why firms succeed or fail is perhaps the central
question in strategy. It has preoccupied the strategy field since its inception four decades ago.
(Porter, 1996, p. 62) points out that a company can outperform rivals only if it can establish a
difference that it can preserve. It must deliver greater value to customers or create
comparable value at a lower cost, or do both. Porter also affirms that competitive strategy is
about being different. It means deliberately choosing a different set of activities does deliver
a unique mix of value.

Literature Review
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(Porter, 1996, p. 62) suggests that ultimately, all differences between companies in cost or
price derive from the hundreds of activities required to create, produce, sell, and deliver their
products or services, such as calling on new customers, assembling final products, and
training employees. Martin (2013) insists that strategy is not planning – it is the making of an
integrated set of choices that collectively position the firm in its industry so as to create
sustainable advantage relative to competition and deliver superior financial returns.
Grant (1991) specifies that numerous entrepreneurs can be pushed by the quest for creativity
and not only the quest for profits. There are multitudes of ways to develop strategies; it is a
dynamic process that changes and adapts itself as the external environment changes (Grant,
2010). The main role of strategy is to set directions for it to sail cohesively in its
environment. As strategy sets directions it can also blind the company to potential threats and
dangers (Mintzberg et al. 1998).
Companies without a clear strategy are doomed to bankruptcy. It is like diving in a pool
without making sure there is water in it. In our daily society where the product life cycle has
been sharply shortened and where innovation governs companies a well-implemented
strategy can lead to success. The quest for productivity, quality and speed has overtaken the
management tools. The business environment has become unstable as well as more
unpredictable which has led to a continuous quest for success (Grant, 1991).
2.5 Social Media Strategy
A study conducted by The SMB Group found that one in five small businesses have no social
media strategy. Without strategy or goals, a business is unable to determine whether or not
they are gaining anything through their efforts, or simply wasting time. Those businesses
without a strategy also reported being less satisfied with social media’s ability to generate
new leads (SMB Group, 2012).
Wilson et al. (2011, p. 23) point us that a global bank executive recently described a
challenge for our times. It turns out that a customer who normally would qualify for the
lowest level of service has an impressive 100,000 followers on Twitter. The bank is not
doing much yet with social media and has no formula for adapting it to particular customers,

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17
but the executive still wondered whether the customer’s “influence” might merit special
treatment. It is the kind of perplexing question many companies face as they formulate their
thinking about social media.
To understand how businesses are approaching the challenge, Wilson et al. (2011, p. 23)
analysed strategies and practices at more than 1,100 companies across several industries and
continents, and conducted in-depth interviews with 70 executives who were leading social
media initiatives. Their research revealed four distinct social media strategies, which depend
on a company’s tolerance for uncertain outcomes and the level of results sought and they
argue that organizations would be better served by focusing on one. These individual
strategies are; the predictive practitioner, the creative experimenter, the social media
champion and the social media transformer.
The predictive practitioner - This approach confines usage to a specific area, such as
customer service. It works well for businesses seeking to avoid uncertainty and to deliver
results that can be measured with established tools. Wilson et al. (2011) describe the example
of Clorox that to increase its virtual R&D capabilities, the social media team created Clorox
Connects - a website that enables brainstorming with customers and suppliers. A typical
query posted there: “We’re working on X product idea. What features would you like to see
included?” To encourage participation, Clorox uses incentives borrowed from gaming
The creative experimenter - Companies taking this approach embrace uncertainty, using
small-scale tests to find ways to improve discrete functions and practices. They aim to learn
by listening to customers and employees on platforms such as Twitter and Facebook.
Sometimes they use proprietary technologies to conduct internal tests. The IT services giant
EMC is a creative experimenter. It pays particular attention to how its 40,000 global
employees use internal social media to locate needed expertise within the company. In an
effort reduce the use of outside contractors, it created a test platform, called EMC/ONE, that
helped employees network and connect on projects
The social media champion - This involves large initiatives designed for predictable results.
It may depend on close collaboration across multiple functions and levels and include
external parties. Consider Ford’s 2009 Fiesta Movement Campaign, used to prepare for the
car’s reintroduction in the U.S. It required joint efforts among marketing, communications,

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and the C-suite. Wilson et al. (2011, p. 24) describe the example of how the company Ford
decided to lend 100 Fiestas for six months, with the requirement that they had to write in
social media about how they used the car. Within six months the drivers had posted more
than 60,000 items, which garnered millions of clicks, including more than 4.3 million
YouTube views, the $5 million campaign created a prelaunch brand awareness rate of 37%
and generated 50,000 sales leads to new customers
The social media transformer - This approach enables large-scale interactions that extend to
external stakeholders, allowing companies to use the unexpected to improve the way they do
business. In 2010 Cisco launched Integrated Workforce Experience (IWE), a social business
platform designed to facilitate internal and external collaboration and decentralize decision
making. It functions much like a Facebook “wall”: A real-time news feed provides updates
on employees’ status and activities as well as information about relevant communities,
business projects, and customer and partner interactions.
Wilson et al. (2011) argue that with the clarification of social media strategies, companies
and organizations can choose the social media approach that suits their business and which
will help them to reach their objectives. It is also important that the employees can use the
same social media platforms as the company does for its activities, however it is necessary to
give the same message in all the social media used by the company (Kaplan & Haenlein,
2010).
Mintzberg et al. (1998) underline the importance of planning and analysing for different
strategy formation schools. The strategist bases his strategy on calculations and analysis of
external and internal factors leading to possible disconnections between theory and reality.
The difficulty for companies can be to accept social media as part of daily life. Martin (2013)
highlights that there are still executives who do not understand the meaning of social media.
Considering these problems, companies may encounter some difficulties while developing
strategy with traditional methods that are formal analysis. Kaplan and Haenlein (2010) call
attention to the importance for the company to have a social media strategy that remains
flexible.

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19
Kaplan and Haenlein (2010) present a classification system for Social Media in the article
Users of the World, Unite! The Challenges and Opportunities of Social Media. The
combination of two dimensions (self-presentation and self-disclosure) are shown in the table
1.1.
Table 1.1 – Classification of Social Media
Source: Kaplan’s and Haenlein (2010, p. 62) Article – Users of the World Connected
Kaplan’s and Haenlein (2010, p. 62) suggest that with respect to social presence and media
richness, applications such as collaborative projects (e.g., Wikipedia) and blogs score lowest,
as they are often text-based and hence only allow for a relatively simple exchange. On the
next level are content communities (e.g., YouTube) and social networking sites (e.g.,
Facebook) which, in addition to text-based communication, enable the sharing of pictures,
videos, and other forms of media. On the highest level are virtual game and social worlds
(e.g., World of Warcraft, Second Life), which try to replicate all dimensions of face-to-face
interactions in a virtual environment.
Kaplan and Haenlein (2010) propose that companies need a social media strategy before they
start using social media since with a strategy they will be able to appraise what they need to
take into account with their activity, and where companies should put their focus in social
media. The company needs to carefully choose which social media platforms it wants to use
to reach the right market segments.
2.6 What is Marketing Strategy
The management guru Peter Drucker (2006) states “because the purpose of business is to
create a customer, the business enterprise has two and only two basic functions: marketing
and innovation.

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There are a wide range of definitions of marketing strategy. Dibb et al. (2005) state that it is
the selection of which marketing opportunities to pursue, analysis of target market(s) and the
creation and maintenance of an appropriate marketing mix that will satisfy those people in the
target market(s).
The definition of Webster (1997) cited in Hooley et al. (2008, p. 08) is similar to the above:
Marketing strategy seeks to develop effective response to changing market
environments by defining market segments and developing and positioning
product offerings for those target markets
Cravens and Piercy (2009, p. 13) include value for the customer:
Marketing strategy seeks to deliver superior customer value by combining the
customer-influencing strategies of the business into a coordinated set of
marketing actions
Kotler (2008) explains that in the beginning, marketing was a fancy word for selling. Then
came the "four Ps" of product, price, place and promotion, which got us to think about
"integrating the marketing mix". The third stage of marketing's evolution was about
segmentation, targeting and positioning. Previously, we thought we could mass-market to
everyone, like Coca-Cola. Next came customer relationship management (CRM), where the
ultimate aim was to "own the customer" rather than simply to make a sale. Now, we've
entered the era of "co-marketing," in which we invite the customer to join us in designing our
products and promotions. Lego has boosted its sales significantly by recruiting fans into its
innovation effort; Dell has created popular products thanks to a dedicated website that corrals
customer suggestions. Instead of saying 'We manage our customers,' now we co-manage with
our customers,"
Every organization needs to set clear marketing objectives, and the major route to achieving
organizational goals will depend on strategy.

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2.7 Social Media and Marketing
Weber (2009) notes that instead of continuing as broadcasters, marketers should become
aggregators of customer communities. It is not about broadcasting marketing messages to an
increasingly indifferent audience. Instead, when marketing to the social web marketers
should participate in, organize and encourage social networks to which people want to
belong, rather than talking at customers, marketers should talk with them.
The task of aggregating customers is done in two ways: by providing compelling content on
your web site and creating retail environments that customers want to visit, and by going out
and participating in the public arena (Weber, 2009).
Marketing to the social web is not only for the largest multinational corporations, it may be
easier and more effective, for a relatively small or medium-size company to take maximum
advantages of social media (Weber, 2009).
Harris and Rae (2010) have looked at the role of social networking in establishing an
integrated marketing strategy. They argue that online communities have evolved considerably
since the early days of news groups and chat rooms and that businesses are recognising the
potential of generic online social networking such as Facebook and MySpace for the
development of their brands and to build relationships with key customers, but this a very
recent trend and it is difficult at this stage to draw conclusions on how successful companies
have been in using social networks in marketing.
Harris and Rae (2010) conclude in their article ‘The online connection: transforming
marketing strategy for small businesses’ that social networks will play a key role in the future
of marketing; externally they can replace customer annoyance with engagement, and
internally they help to transform the traditional focus on control with an open and
collaborative approach that is more conducive to success in the modern business
environment.

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2.8 Value Creation
Drucker (2006) argues that today, when top management is surveyed, their priorities in order
are: finance, sales, production, management, legal and people. Missing from the list:
marketing and innovation. Marketing and innovation produce results; all the rest are costs.
Aligned to Peter Drucker’s advice, (Sheth and Uslay, 2007) consider that the marketing goal
is to deliver value for the organization.
Prahalad and Ramaswamy (2004) conclude in their article “Co-creating unique value with
customers” that the role of the customer in the industrial system has changed from isolated to
connected, from unaware to informed, from passive to active. The impact of the connected,
informed, and active consumer is manifested in the following ways:
Information Access: With access to unprecedented amounts of information, knowledgeable
consumer can make more informed decisions
Global view: Consumers can also access information on firms, products, technologies,
performance, prices, from around the world
Networking: Individuals share ideas and feelings without regard of geographic or social
barriers,
Experimentation: Consumers can also use the internet to experiment with and develop
products, especially digital ones
Activism: As people learn, they can better discriminate when making choices, and, as they
network, they embolden each other to act and speak out
Prahalad and Ramaswamy (2004, p. 04) note that consumers have more choices that yield
less satisfaction. Top management has more strategic options that yield less value.
Companies can no longer act autonomously, designing products, developing production
processes, crafting marketing message, and controlling sales channels with little or no
interference from consumers. Consumers now seek to exercise their influence in every part of
the business system.

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2.9 This is What Social Media Can Do
2.9.1 Dell
This situation shows the extent to which social media can be your best friend, or your enemy,
depending on how corporations use social media.
Jeff Jarvis is the owner of one of the most respected blogs about the internet and media. Dell
sold to Mr Jarvis a faulty laptop and despite having paid for home service insurance, Mr
Jarvis had to send his laptop back several times to fix it. Each time the laptop returned it had
a new problem. Mr Jarvis contacted Dell several times and each time he had to start from the
scratch and he never made progress. “It drove me mad” (Jarvis, 2009).
On June 2005 Mr Jarvis decided to post on his blog;
'The machine is a lemon and the service is a lie', and 'Dell Sucks, Dell Lies. Put that in your
Google and smoke it, Dell’ (Jarvis, 2009).
Mr Jarvis blog received a lot of comments all regarding Dell and it did not take long before
these negative comments appeared in front of the Dell homepage on Google search.
Mr Jarvis wrote a letter directly to Michael George, Dell`s Chief Marketing Officer and Vice
President for US Consumer Business, outlining what happened. Mr Jarvis received a call
from the customer service offering him a full refund which he accepted.
Once it happened, Dell started approaching social media differently, creating IdeaStorm, a
site where customers could vote and discuss new concepts for the company based on what
people wanted. Dell started making decisions based on what their online community felt was
right. This actions resulted in happy customers that felt they were actually part of Dell`s
brand.
2.9.2 PepsiCo
PepsiCo has used social networks to gather customer insights via its promotions, which have
led to the creation of new varieties of its Mountain Dew brand. Since 2008, the company has
sold more than 36 million cases of them (Divol et al. 2012)

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Consumers are adopting increasingly active roles in co-creating marketing content with
companies and their respective brands. In turn, companies and organizations are looking to
online social marketing programs and campaigns in an effort to reach consumers where they
‘live’ online. (Hanna et al. 2011, p. 1)
2.10 Conclusion
This chapter began by outlining that the advances in web technologies have helped to make
social media more accessible to internet users. The collaborative nature of these sites have
attracted many businesses as they can engage with their consumer and use input to collect
user generated content to help improve their products (Schenckerber, 2009). Companies
diligently start using social media, but few have a deeper understanding of exactly how social
media interacts with consumers to expand product and brand recognition, drive sales and
profitability (Divol, et al. 2012).
Web 2.0 has given businesses and ideal platform where they can increase brand awareness
and build lasting relationships by using a pull medium rather than a traditional push
marketing medium. The literature on social media strategy and marketing strategy was
analyzed. The last part of the chapter focused on assessing literature on successful stories of
organizations that have embarked on using social media.

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Chapter 3 RESEARCH METHODOLOGY

Research Methodology
26
‘I keep six honest serving men, (they taught me all I knew) their names
were, what, and why, and when, and how, and where and who’.
- Rudyard Kipling
3.1 Introduction
The purpose of this chapter is to identify the methodologies available to the researcher for
this dissertation, outline the particular rationale to conduct primary research and to indicate
the researcher’s awareness and consideration of all of the issues relating to the methodology
and its relationship to the research question (Saunders et al, 2007).
The real challenge in any research project is to turn data into a rigorous, theoretically
informed analysis of a well-defined question or problem. Travers (2002) states that this
challenge is underpinned by the fact that many researchers fail to distinguish properly
between the terms ‘method’ and ‘methodology’.
Methods are techniques used in collecting data, these will be discussed further in this chapter.
Methodology however refers to ‘the assumptions you have as a researcher, which can be
epistemological or political in character, or mean that you support the view of the world
promoted by a particular tradition’ (Travers, 2002)
Birley and Moreland (1998) suggest that it is helpful to look at the research methodology as a
decision making process that is predicated upon sets of background assumptions or
paradigms. Research philosophy is the way through which the researcher generates
knowledge in the context of the research.
The purpose of this chapter is to:
Discuss the research philosophy in relation to other philosophies;
Expound the research strategy, including the research methodologies adopted;
Introduce the research instruments that I have developed and utilised in the pursuit
to investigate of the research question.
Saunders et al. (2007) outline a logical process for conducting research. They portray this
visually in the form of a ‘Research Process Onion’ which can be seen in figure 3.1. This

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chapter will follow Saunders et al. (2007) research process which addresses four key stages,
research philosophy, research approaches, research strategies and data collection methods.
Following on from these areas, the chapter will then detail the research paradigm, specific
area of research being studied and the subsequent methodology used in the study. Finally
issues regarding the data collection and implementation of the research and the analysis will
then be discussed.
This chapter will outline the approach I used in the dissertation. The research question is then
outlined followed by the sub-objectives and the context of the research. A number of research
strategies are then discussed and the most suitable is then selected. This is followed by a
discussion on deductive / inductive research, and qualitative / quantitative research
approaches. The possible data collection method of semi structured interviews is then
described along with the different choices that can be made through the research regarding
selection of the companies and interviewees. Finally, the chapter discusses the limitations of
the research approach, the issues of reliability, validity and the role of the researcher.
3.2 The Research Path
The author adopted the ‘the research onion’ model of Saunders et al. (2007). Its structure is a
useful metaphor for the research process as illustrated in figure 3.1.

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Figure 3.1: ‘The Research Onion’
Source: The Research Onion (Saunders et al. p. 102)
The figure above shows the research process which was adopted to carry out the research.
Each layer of the ‘onion’ is a stage in the process at which important decisions must be made.
The research process consists of many layers, each linked to the successor in linear fashion.
Saunders et al. (2007) outlined that the research decisions are made based on:
Philosophies
Approaches
Strategies
Choices
Time Horizons
Techniques and procedure.

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3.3 The Research Question
A researcher spends a great deal of time refining a research idea. An initial definition of the
research question is important in building theory from case studies according to Eisenhardt
(1989) and that without a research question it is easy to become overwhelmed by the volumes
of data.
Saunders et al. (2007) insist on the need to identify a feasible research question and Sekaran
(2003) states that the research question is a precise statement of the question that is to be
investigated. The author selected the following research question based on his earlier reading
for the research proposal:
An Exploration into the impact of Social Media on Marketing Strategy
The researcher has done the following:
1. Defined the specific question area
2. Reviewed the relevant literature
3. Pragmatically examined the feasibility to answer the question.
The author ensured the research question did not lack feasibility regardless of how significant
or researchable a question may be. The following considerations were taken into account:
Time
Availability of literature
Facilities
Experience of the researcher
Lack of ability to conduct the research

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3.4 Research Objectives
The Researcher has outlined three research objectives below. These objectives are explored
in order to gain a better understanding of the research question which is outlined in the
section 3.3.
1. Exploring how social media have affected marketing strategies employed by
organizations
Rationale: The objective is to establish whether or not the involvement of social media has
had an effect in terms of marketing strategies. The researcher’s aim is to find what strategy
was employed by organizations before the organization embarked on using social media and
what is the current strategy with regards to social media.
In order to explore the effect of social media on marketing strategy, it is crucial to first define
what social media and strategy are and how social media strategists are using them. The
literature review examines the technological advances that have given rise to these social
media websites as well as how organizations are using them. In order to find out the impact
of social media on marketing strategy, primary research in the form of semi-structured
interviews will be conducted in which respondents will be questioned on these subjects.
2. Exploring how social media can add value to the marketing strategies
Rationale: The objective is to explore how social media can add value to the marketing
strategies. The researcher’s aim is to find out if the organizations have experienced
significant increase in market share, growth or financial impact since they started using social
media.
In order to explore how social media can add value, the literature available was examined to
find out how organizations use this form of media. Primary research in the form of semi-
structured interviews will be conducted in which respondents will be questioned how their
organisations add value to the marketing strategy with the use of social media.

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3. Exploring what is the impact of social media on marketing expenses
Rationale: This objective is to explore what is the impact of social media on marketing
expenses. The researcher’s aim is to find out whether or not the involvement of social media
has had an effect in terms of reducing marketing expenses and to find out if the overall
investment pays for itself. The internet has enabled companies to reach out worldwide,
targeting consumers that they would not previously have been able to reach (Weber, 2010).
3.5 Research Philosophy
A research philosophy is a belief about the way in which data about a phenomenon should be
gathered, questioned and used. The term epistemology (what is known to be true) as opposed
to doxology (what is believed to be true) encompasses the various philosophies of research
approach.
Research is important in both business and academic fields. However, misunderstandings
arise and there is no general consensus as to how ‘research’ should actually be defined.
Amaratunga et al. (2002) offer one reason for this, explaining that research means different
things to different people. They also propose several features that appear to be consistent
amongst the many definitions of research as follows:
- Is a process of enquiry and investigation;
- Is systematic and methodical; and
- Research increases knowledge.
Taking the above research process into account, it is then important to understand where the
process of research should be initiated. Saunders et al. (2007) note that the first stage to be
discussed is the research philosophy. To understand research philosophy and how it applies to
the research study at hand, firstly the origins of knowledge development itself must be
discussed.
A philosophy is important because it “contains important assumptions about the way in
which you view the world” (Saunders et al. 2007, p. 108) and these assumptions can define
the research strategy and its methods.

32
Bryman and Bell (2007, p. 30) argue:
Values reflect either the personal beliefs or the feelings of a researcher. On the
face of it, we would expect that social scientists should be value free and
objective in. The research that simply reflected the personal biases of its
practitioners could not be considered valid and scientific because it was bound up
with the subjectivities of its practitioners.
3.5.1. Epistemology
Epistemology is the study of knowledge. Epistemology concerns what constitutes acceptable
knowledge in a field of study (Saunders et al. 2007; Bryman & Bell, 2007). Epistemology
refers to how a researcher considers knowledge, or how a researcher can know reality or truth
(Hogan et al. 2009). Within the Epistemology there are two opposing schools of thought on
the philosophy of research, these being positivism and Interpretivism (Saunders et al. 2007)
A central question in epistemology is: what must be added to true beliefs to convert them into
knowledge? Epistemology usually restricts itself to questions about how we can ensure we
are obtaining the special kind of knowledge called truth.
A brief comparison between positivism and interpretivism follows in order to justify the
chosen philosophy for this particular study which is interpretivism.
3.5.2 Positivism
Saunders et al. (2007) note that researches that tend to favour the philosophical stance of the
natural scientist will prefer “working with an observable social reality and that the end
product of such research can be law-like generalisations similar to those produced by the
physical and natural scientists”. They state that to generate a research strategy the researcher
can use existing theory to develop hypotheses. These hypotheses will then be tested and
confirmed as a whole part of it, or it will be refused which in turn will lead to the need to
further development of the theory which then may be tested by further research.
Around the end of the nineteenth century, social scientists began to adopt the positivist
approach because it had been used with much success previously in many of the natural
sciences (Hussey & Hussey, 1997, p. 52). One of the main components of the positivist
approach is that research that is conducted is undertaken, as far as possible, in a value free

33
way, as a result the research does not affect or alternatively get affected by the subject of the
research being conducted (Hogan, et al. 2009).
3.5.3 Interpretivism
Interpretivism is derived from epistemology and the emphasis is on conducting research
among humans rather than objects (Fisher, 2007; Blumberg et al. 2008). Saunders et al.
(2007, p. 106) agree with the statement above pointing out that interpretivism is an
epistemology that advocates that it is necessary for the researcher to understand differences
between humans in our role as social actors. This emphasises the difference between
conducting research among people rather than objects such as trucks and computers.
Saunders et al. (2007) explain that the term ‘social actors’ is quite significant in the
interpretivism approach. The metaphor of the theatre suggests that as humans we play a part
on the stage of human life. In theatrical productions, actors play a part which they interpret in
a particular way (which may be their own or that of the director) and act out their part in
accordance with this interpretation. In the same way we interpret our everyday social roles in
accordance with the meaning we give to these roles.
3.5.4 Realism
Realism is an epistemological position which relates to the essence that what the senses show
us as reality is the truth: that objects have an existence independent of the human mind. The
theory of realism is that there is a reality quite independent of the mind. In this sense, realism
is opposed to idealism, the theory that only the mind and its contents exist. (Saunders et al.
2007).
3.5.5 Conclusion
Saunders et al. (2007) argue that an interprevist perspective is highly appropriate in the case
of business and management research, particularly in such fields as organisational behaviour,
marketing and human resource management. For this reason, as the dissertation topic is
related to business and management research, the author chose the interpretivism approach in
his research process for the purpose of answering the research problem.

34
The research conducted will seek to provide subjective data in order to gain some sort of
meaning rather than trying to measure something.
3.6 The Research Approach
It is necessary to examine the different research methods that are available when conducting
research at this point. These approaches occupy the second layer of the ‘onion’ (Saunders et
al. 2007). The research approach is concerned with trying to identify any characteristics that
can and will influence the research design in some way (Hogan, et al. 2009).
Saunders et al (2007) note that the research approach can either be deductive, where a theory
is developed and hypothesis (or hypotheses) and design a research strategy to rest the
hypothesis, or the approach may be inductive, where data needs to be collected and develop
theory as a result of the data analysis.
3.6.1 Deductive Research
Deduction refers to scientific testing of hypothesis, from which, information can be deduced.
Saunders et al. (2007, p. 117) state that deduction involves the development of theory that is
subjected to a rigorous test.
Amaratunga et al. (2002) state that deduction is fundamental to the positivist tradition which
centres upon atomist – that is, objects of experience are atomic, independent events. In
addition, a further key factor of deduction is the ability to generalise findings that is,
generalisation.
Saunders et al. (2007, p. 117) reference Robson (2002) who describes a sequential list of five
stages through which deductive research should follow:
1. deducing a hypothesis (a testable proposition about the relationship between two or
more concepts or variables) from the theory;

35
2. expressing the hypothesis in operational terms (that is, indicating exactly how the
concepts or variables are to be measured), which propose a relationship between two
specific concepts or variables;
3. testing this operational hypothesis (this will involve one or more of the strategies
detailed in Chapter 5);
4. examining the specific outcome of the inquiry (it will either tend to confirm the theory
or indicate the need for its modification);
5. if necessary, modifying the theory in the light of the findings.
3.6.2 Inductive Research
The alternative to a deductive research approach is an inductive approach which relates to
qualitative approaches. It differs from deduction in that theory is induced and is developed
from primary data, rather than the opposite, where data is extracted from existing theory and
then tested. In contrast with deduction, causation does not refer to regularity between separate
things or events ‘but about what an object is likely to do and what it can do, and only
derivatively what it will do in any particular situation’ (Amaratunga et al, 2002, p. 19).
The data collected would need to be analysed by the researcher in order to make sense of it,
and the subsequent results would form the basis of a theory.
The concept of induction fundamentally centres upon understanding how humans interpret
their social world (Saunders et al, 2007). Developing greater understanding and gaining
insight into human behaviour using techniques other than those with numerical tendencies
can prove beneficial for theory production and development.
Saunders et al. (2007, p. 119) believe that induction places an emphasis on:
Its tendency to construct a rigid methodology that does not permit alternative
explanations of what is going wrong
Research using an inductive approach is likely to be particularly concerned with the
context in which such events were taking place.

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3.6.3 Conclusion
Social media is a relatively new topic and according to Creswell (2003) if there is not much
existing literature on a topic because it is a relatively new phenomenon, it is more appropriate
to work inductively in order to reflect upon what theoretical themes the data is suggesting.
Due to the recent nature of social media, the author decided that the inductive approach
would be more appropriate to explore the research question.
3.7 Research Design
The following section outlines the design process undertaken.
3.7.1 Secondary Research
Secondary data is information that has already been collected and is usually available in
published or electronic form. Secondary data has often been collected, analysed, and
organized with a specific purpose in mind, so it may have limited applications to specific
market research.
3.7.2 Primary Research
Primary research involves gathering data for a specific research task. It is based on data that
has not been gathered beforehand. Primary research can be either qualitative or quantitative.
Primary research can be used to explore a market and can help develop the hypotheses or
research questions that must be answered by further research. Primary data can be either in
the form of quantitative data or qualitative data, depending on which is most suitable form for
the research question concerned (Hanson & Grimmer, 2007).
Saunders et al (2007) argue that the advantage of primary research is that the researcher can
address specific research issues as well as having a high degree of control over how the
information is collected. The disadvantages are that it can be time consuming in preparing

37
and analysing the data and in some cases it could be out of date by the time the research is
concluded.
3.7.3 Ethnography
Saunders et al. (2007, p. 142) note that ethnography is rooted firmly in the inductive
approach. It emanates from the field of anthropology. The purpose is to describe and explain
the social world the research subjects inhabit in the way in which they would describe and
explain it. This is very time consuming research and it takes place over an extensive period as
the researcher needs to immerse in the social world being researched as completely as
possible.
Ethnography is not a prevailing research strategy in business, however it can be very helpful
to get a better understanding of those involved in the research or of a particular context.
3.7.4 Netnography
Netnography is a branch of Ethnography that analyses the free behaviour of individuals on
the internet (O’Donohoe, 2010). Jiyao and Reynolds (2010) argue that it is the application of
ethnography to a computer-mediated environment with the epistemological remit largely
unchanged.
Netnography is faster, simpler, timelier and much less expensive than traditional ethnography
because it is unelicited, it is more naturalistic and unobtrusive than focus groups, surveys, or
interviews (Kozinets, 2006). Netnography provides information on the symbolism, meanings,
and consumption patterns or online communities consumption unrelated but online sociability
based on the exchange of information
3.7.5 Qualitative Research
According to Porter (1996), some authors have been reluctant to define the term ‘qualitative’.
Generally however, it is accepted that the qualitative paradigm is primarily concerned with
understanding. Qualitative methodologies are shaped in order to encapsulate a view of the
phenomenon within its own context. The goal is to gain insight and further understanding
from a humanistic perspective, of the phenomenon being studied.

38
Porter (1996) argues however, that the distinction between the two approaches is not clear
and to simplify them would be to ignore specifically the complexity of the qualitative
approach. He states that there are two types of qualitative scholars. One type rejects the
scientific approach as a means for studying human behaviour, the other accepts the basic
goals of science but rejects some of its procedures.
Qualitative research is primarily concerned with gaining direct experience with a setting and
is intrinsically an exploratory endeavor (May, 2002). Qualitative data refers to all non-
numeric data or data that have not been quantified and can be product of all research
strategies (Hogan et al. 2009).
Qualitative research includes in-depth and semi-structured interview, focus groups and
participant observations to explore the research question. Qualitative research is an
exploratory study as it aims to seek new insights and ask questions to assess phenomena.
(Saunders et al. 2007).
Kvale (1996) also notes that a qualitative research interview seeks to cover both factual and a
meaning level, though it is usually more difficult to interview on a meaning level.
The author has selected qualitative analysis by means of in-depth interviews to carry out the
research methodology. This method will enable the researcher to develop own thoughts and
interpretations. The author wanted to be able to interpret the answers collected during the
interviews and found the qualitative approach most suitable to the study.
(Kozinets, 2002) explains that qualitative methods are particularly useful for revealing the
rich symbolic world that underlies needs, desires, meanings and choice. Interviews when
conducted in comfortable ways are likely to be more personal as well as fruitful.
Saunders et al. (2007, p. 472) describe qualitative data as:
Based on meanings expressed through words
Collection results in non-standardised data requiring classification into categories
Analysis conducted through the use of conceptualisation

39
3.7.6 Conclusion
Qualitative research was chosen as the most suitable form of research design for the
exploration of the impact of social media on marketing strategy as the research was
exploratory in nature as well as there being time constraints involved.
The interview approach takes seriously that the notion that people are experts on their own
experience and so best able to report how they experienced a particular event or phenomenon.
If a range of people are interviewed about the same phenomenon there will inevitably be a
range of perspectives (Darlington & Scott, 2002).
3.8 Data collection Method
Data collection is an important aspect of any type of research study. Inaccurate data
collection can impact the outcome of a study and as a consequence lead to invalid results
When searching for information to solve a problem, some kind of data collection needs to be
done.
Questionnaires, interviews, sampling, survey, case studies etc., are some of the data
collection methods that can be used by a researcher, other methods such as observation, focus
groups and secondary data are indeed used but perhaps to a lesser degree (Saunders et al,
2007).
This section will briefly review the methods available to the researcher, subsequently
justification will be given for the specific method chosen and this will then be discussed in
detail.
The author rejected group interviews and focus groups because he was not exploring a single
theme or collective attitude (Lancaster, 2005). One to one interviews were selected as it
offered the best way of accomplishing the research objectives. They can be formal and
structured or informal and unstructured, or they can be halfway between (Saunders et al.
2007)

40
3.8.1 Semi Structured Interview Process
Face-to-face interviews have the strength that researchers can ask follow-up questions and
individuals are able to say much more in a face-to-face interview than in an email, so
researchers will get more information from a face-to-face interview.
The author used semi-structured interviews, as the author wanted the interviews to follow a
framework and at the same time being able to adapt the questions. In semi-structured
interviews the researcher will have a list of themes and questions to be covered. It was also
the most appropriate collection tool to assess the opinion of managers on this process which
is an important objective of this research project. In addition to this, the questions in this
research project are open ended and qualitative interviews are best suited to open ended
questions (Saunters et al, 2007).
One of the strengths of the qualitative interview process is that it allows the researcher to
probe answers, and where it is required, to get the interviewee to explain, or build on their
responses (Saunders et al, 2007).
Four interviews were conducted face-to-face and each interview was transcribed as shown in
appendix F and analysed later on. Each of the interviews was developed to last not more than
30 minutes considering the difficulty to reach the respondents during office hours.
3.8.1.1 Depth Interviews
Depth interviews are used when it is important that there is no ‘contamination’ of
respondents’ views, as can happen in a focus group scenario (Lehmann et al, 1998). The
depth interview is also unstructured; there is a guide or ‘theme sheet’ but no structured
questions as in a questionnaire. Unlike a focus group there is also enough freedom for the
respondent to steer the conversation. According to Hague (2002), the most important element
for the researcher in a depth interview is listening, ‘to listen carefully to a respondent is to
show interest and this is encouragement to say more. Furthermore, only through listening will
an understanding be built up from which there could be a deeper line of questioning – the
very substance of depth interviewing’.

41
3.8.2 The Sample
The research samples are companies currently active in social media located in Ireland. The
interviewees were contacted through LinkedIn as illustrated in appendix A, based on their
area of responsibility which is related to the researcher’s topic. Participants held prominent
positions in their respective organizations and therefore were informed to answer any
questions.
3.8.3 The Choice of the Companies
The author selection was based on the criteria of companies being active on social media. The
person in charge of social media and or marketing strategy was targeted as illustrated in
appendix D.
3.8.4 Candidate Selection
According to Yin (1984), the basis of selection of people for interview should be done so on
the theoretical underpinning of the study. The primary source of interview data must be
people in roles that are actively involved with, and have direct experience of the phenomenon
being studied (Blaike, 1993). For the purpose of this study there was a need to identify
managers that have experience in social media and marketing.
The focus on the candidate selection was to identify candidates with extensive knowledge
and experience in their roles. The researcher approached 15 potential candidates and got the
confirmation of four of them. All candidates were located in Ireland spread across a number
of different industry sectors. In order to prevent a bias on the part of the interviewees only the
broad topic of the research was mentioned rather than the specific details.
As requested by two of the interviewees, their respective company name have been kept
confidential.
3.8.5 Data Required
An interview guide was developed for the interviews in order to guide them and ensure that
every topic was covered in each separate interview. The four candidates identified as

42
interviewees for the semi structured interview process were provided by email with an outline
of themes in the research to be asked prior to the interviews as illustrated in appendix C.
As the interviews were semi-structured in nature it allowed the interviewee to be probed on
responses given to provide a greater understanding of their meaning.
The following topics were covered during the interviews:
Social Media Strategy
Marketing Strategy
Social Media Marketing Expenses
Value of Social Media
3.8.6 Structure of the interviews
The interviews started by explaining to the interviewee the purpose of the interview, format
and how long the interview would approximately take. The author allowed the interviewee to
clarify any doubts they had, meantime laptop and IPhone were prepared to record the
interviews. The main concern of the researcher was to understand the real meaning of what
the interviewee said.
Kvale (1996) notes:
The qualitative research interview seeks to describe and get the meanings of the
central themes in the life of the world of the subjects. The main task in
interviewing is to understand the meaning of what the interviews say.
In order to conduct the interviews the researcher prepared a questionnaire as shown in
appendix E, based on the research question and semi structure interview was use as the author
wanted the interviewees to follow a framework and at the same time being able to adapt the
questions to their answers.
3.8.7 Limitations of Methodology
Chapter three outlined the research process and the questions that need to be accessed when
deciding on research questions, objectives, deciding on a research method and the forms of

43
the research to be conducted. The approach using qualitative data through interviews was
selected. Four organizations were identified for interviews which will be analysed using
comparative analysis in the next chapter
It is important for the researcher to acknowledge the limitations of the methodology being
employed in this study. There are a number of weaknesses associated with a qualitative
approach and interviews in particular as a method of data collection. These include flexibility
where the respondent provided the answer which they believe the interviewer is seeking, bias
resulting from poor questions or in relation to the respondents answer, poor respondent recall,
possible respondent discomfort in sharing sensitive information, the possible underestimation
and the dangers of becoming over dependent on one respondent (Darlington & Scott, 2002;
Yin, 2003). In order to overcome these weaknesses, the researcher circulated the key themes
of the interview questions in advance to the interviewees to give them an opportunity to
familiarize themselves with the research. The researcher had also reviewed a considerable
amount of literature prior to the interviews, to ensure focus on the research question and the
other key points in the interview.
There also weaknesses due to the small number of interviewees in the research. This was due
to time constraints and the difficulty of access. Considering the limited time and the resources
available to this study, it was decided that semi structured interviewees was the most
appropriate approach.
3.8.8 The role of the Researcher
The researcher biases are prejudices and value judgments which the researcher holds but
tends not to be aware of. Researchers may, unknown to themselves, impose their own belief
or frame of reference on the research process and this can be lead to distortions in the
research (Holloway, 1997). It is very difficult for the researcher to avoid or eliminate
researcher bias completely especially in qualitative research. Interviews are a subjective
technique and therefore the risk of bias is quite high (Darlington & Scott, 2002).

44
3.9 Data Preparation and Analysis
For analysis of the data in this study the researcher has approached the process from an
inductive position. The researcher has used existing theory to shape the approach to the
qualitative research process and to aspects of the data analysis (Saunders et al, 2007). The
author followed Yin’s (2003) idea where existing theory was used to formulate the research
question and objectives and these theoretical propositions were used to create a rough
framework to analyze the data. Therefore the research analysis follows an inductive
approach.
Data preparation includes the editing and transcription of all data collected during the semi-
structured interview process. The preparation is a similar process for both qualitative and
quantitative data. As the researcher chose qualitative data to answer the research question, it
needed to be collected in a non-standardized way to capture the richness and fullness
associated with it (Saunders et al. 2007).
All interviews conducted were recorded and additional notes were taken on any key points
mentioned. The recording of the interview was played back to be able to carry out further
analysis. The data was analyzed in order to get meaning from the information collected.
The activities listed below detailed by Saunders et al. (2007, p. 479) were followed in order
to perform a qualitative analysis:
Categorisation - It involves classifying data into meaningful categories, these categories
are in effect codes or labels that the researcher will use to group the data
‘Unitising’ data – It is the process to attach relevant portions of data to the appropriate
categories that have been advised.
Recognising relationships and developing the categories - Reorganising data searching
for key themes and patterns or relationships.
Developing and testing theories to reach conclusions. Firstly patterns and relationships
are established, hypotheses are developed with the aim of testing them against the data

45
3.9.1 Categorization
Once the transcribing was finalised the author conducted the first activity of classifying the
data into meaningful categories. These categories are in effect codes or labels that were used
to group the data. Categories provide the researcher with an emergent structure that is
relevant to the research project to organise and analyse the data further.
The identification of these categories will be guided by the purpose of the research as
expressed through the research question and objectives. Strauss and Corbin (1998) are
mentioned by Saunders et al. (2007, p. 480) who suggest that there are three main sources to
derive names for these categories:
Utilise terms that emerge from the data collected
Base them on the actual terms used by the researcher participants
Base them on terms used in existing theory and the literature.
3.9.2 Utilising Data
Following the development of the categories, the author attached relevant portions of data to
the appropriate category. For this research, the data was mainly words, a line of a transcript
or a complete paragraph of a transcript.
The researcher followed Saunders et al. (2007, p. 480) transferring and field to end up with
piles of related units of data, it was essential to label each unit of data carefully to know its
precise source.
3.9.3 Recognizing Relationships and Developing Categories
As the researcher continued to analyse the data key themes and relationships in the
rearranged data began to developed (Saunders et al. 2007). The author decided to subdivide
and integrate categories as way to focus on the analysis.

46
3.9.4 Developing and Testing Hypothesis
Saunders et al (2007) note that as the researcher seeks to reveal patterns within the data and
to recognise relationships between categories, you will be able to develop hypotheses in order
to test these. Hypothesis is defined as ‘a testable proposition’. The appearance of an apparent
relationship or connection between categories will need to be tested to be able to conclude
that there is an actual relationship.
3.9.5 Reliability and Validity
The concept of reliability has to do with how well the research project has been carried out
(Blaxter et al. 2006). Easterby-Smith et al. (2002, p. 53) refers reliability to the extent to
which data collection techniques or analysis procedures will yield consistent findings. It can
be assessed by posing the following three questions (as cited in Saunders et al. (2007)
Will the measures yield the same results on other occasions?
Will similar observations be reached by other observers?
Is there transparency in how sense was made from the raw data?
Creswell (2003) describes reliability as the attempts to minimize errors in the research. In this
study all of the interviews were conducted using the same framework, the same theme and a
consistent interview technique to ensure consistency and dependability.
Since the primary data is based on interviews the researcher is fully aware about the
subjective answers being possibly interpreted in several ways. The researcher has been trying
therefore to interpret the answers as they have been written and not adjust them to his own
thesis.
Saunders et al (2007, p. 150) note that validity is concerned with whether the findings are
really about what they appear to be about. Is the relationship between two variables a causal
relationship? Validity has to do with whether the methods, approaches, and techniques
actually relate to, or measure, the issues that are being explored in the research (Blaxter et al,
2006).

47
3.10 Conclusion
The objective of this chapter was to indicate that the researcher has understood the issues
regarding the methodology and its relationship to the research objectives. This chapter began
with a review of the most appropriate philosophical paradigms to do this research, and
subsequently continued by detailing the chosen methodology of interpretivism. The following
penultimate chapter will present the main analysis and findings.

48
Chapter 4 ANALYSIS AND FINDINGS

Analysis and Findings
49
Data analysis is not an end in itself…its purpose is to produce
information that will help address the problem at hand’.
- Malhotra 1999, p.434
4.1 Introduction
The next step in the study is the task of analyzing the data that has been collected from the
primary research, during the course of the semi-structured interviews as well as the
ethnography research. In this chapter the analysis and findings will be presented. It reports on
the facts that the researcher has discovered (Saunders et al. 2007).
In order to explore the themes that emerged from both the literature review and industry
reviews, the author asked questions revolving around their use of social media. While it must
be stated that the sample used could not be considered representative of the population as a
whole, the following insights have been gained. The interviews were semi-structured in
nature, the questions were varied depending on each participant`s responses.
According to Malhotra (1999), data analysis and preparation is the penultimate stage in the
market research process. It is important that meaningful conclusions can be drawn from the
data in order for appropriate decisions to be made. Aaker et al. (2001) note that the purpose
of data collection and analysis is to convert the data into ‘defensible, actionable sets of
conclusions and reports’.
The analysis will be broken into sections. The first section will list the research questions
and the interviewee`s point of view for that specific question and linkages will be made
between the findings and the literature review. The results from the interviews will be
analyzed and the data is presented herein and organized around three research questions,
followed by the presentation of additional thematic material. This will be followed by new
findings that emerged during the four interviews. The new findings will be presented as
emergent themes which constitute new knowledge outside the main research objectives.

Analysis and Findings
50
4.2 Participants
Four people were interviewed ranging from Managers to Senior Directors. Interviewees
represented males and females populations. Interviews were conducted in the months of July
and August of 2013 and they lasted between 25 and 50 minutes.
4.3 Coding
Gorden (1992) states that interviews have some specific purpose, so it is necessary to store
the responses in a relevant, usable, and accessible form to fulfill this purpose. Everyone who
uses the results of interviews needs some way to code the results so that they can be used
without listening to the whole recording or reading the whole transcript.
As explained in section 3.9 a coding was created and applied by classifying data into
meaningful categories, these categories are in effect codes or labels that the author used to
group the data. It was followed by the process of attaching relevant portions of data to the
appropriate category and reorganizing the data for key themes and patterns relationships.
4.3.1 Coding Categories
Gorden (1992) notes that to perform the task of summarizing, condensing, and storing a
concrete example that falls into a certain coding category, we assign an abstract symbol to
represent any case in that category. Thus, each category has its own symbolic label, or code.
This label may be an abbreviation, a number, a letter or anything else that is convenient for
the process of summarizing, analyzing, storing or retrieving the information.
The coding categories were defined as stated by Saunders et al. (2007, p. 479). It can be seen
in table 4.1 which shows the coding categories defined and assigned to every research
objective. Appendix G shows the coding category applied for all four interviews.

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