A

DESSERTATION REPORT
ON
Effectiveness of Social Media Marketing in the Cosmetic
Industry
PREPARED BY
CHANPREET KAUR
BENGAL INSTITUTE OF BUSINESS STUDIES
MBA

(2021-2023)
UNDER THE GUIDANCE OF
PROF. SULAKSHANA SINHA
This project is submitted for the partial fulfilment of Masters of Business
Administration from Vidyasagar University

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 DECLARATION

I, CHANPREET KAUR, student of MBA, of year (2021-2023) studying at

Bengal Institute of Business Studies, Kolkata, hereby declare that the dissertation
report done in “EFFECTIVENESS OF Social Media Marketing in the Cosmetic Industry” is
the original work conducted by me.
The information and data given is authentic to best of my knowledge. The dissertation
report will not be used anywhere else for any award of any other degree, diploma and
fellowship.

SIGNATURE OF STUDENT

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 CERTIFICATE

TO WHOM MAY IT CONCERN

Whom it May Concern To This is to certify that (Reg

No.______________________________________ of 2019-2021

of Roll No. _______________________________), a bona fide student of

“BENGAL INSTITUTE OF BUSINESS STUDIES” has completed his/her own
dissertation and it is an original work and is not copied from any other
resources.

Thanking you,
Yours truly,

Assistant Professor
Bengal Institute of Business Studies

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 ACKNOWLEDGEMENT

It is my privilege to acknowledge the contribution of all the people who helped in making this
Dissertation Report come to fruition. The time and effort taken by them to provide their
cooperation and guidance for the progress of this Report is duly appreciated

I offer my special thanks and prayers to God Almighty for showering his blessings on us and
bestowing us with the skills and abilities to carry out this study.

I cordially thank Bengal Institute of Business Studies for giving me the opportunity to
undergo the dissertation report.

I express my profound sense of gratitude to my research supervisors for their guidance,

support, encouragement and opinion whenever needed.

I would like to thank all the people who directly and indirectly helped me groom my
knowledge and taught me during the course of my master’s study.

Most of all I would like to thanks my parents and give my sincere gratitude for all the support
and encouragement they have given me during the entire master’s journey.

Lastly, I would like to thank my friends who directly and indirectly helped me making the
dissertation.

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 ABSTRACT

Marketing has always been a vital part of a business and is important in helping to create a
brand image and attract consumers to the brand and products. Previously, businesses have
turned towards large marketing campaigns on T.V and other forms of media such as
newspapers and magazines. However, some brands have chosen to use social media as a way
of marketing their products. This dissertation focuses on the cosmetic industry and their use
of social media and how they attract customers and engage with them online. This study
begins with a literature review, which evaluates previously published work in relation to
social media. The research methodology is provided which puts forward the philosophical
stance that is adopted throughout the study and justifies the type of data that will be used for
analysis. Some interesting conclusions have been made form analysing the research, which
has allowed recommendations to be made for both mangers and future researchers. Social
media content strategies have been created and used for years as a way to advertise and
influence market decisions in various industries. The reason for their effectiveness should be
adequately studied so that we can have a better understanding of which strategies are
successful and which ones are not. This dissertation focuses on the cosmetic industry and
their use of social media and how they attract customers and engage with them online and use
effective social media content strategies, with a focus on brand and customer-centric
strategies. This research contributes to best practices in social media marketing in order to
understand the effectiveness behind content strategies.

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 Table of Contents
DECLARATION------------------------------------------------------------------------------ 1

PREFACE---------------------------------------------------------------------------------------2

ACKNOWLEDGEMENT------------------------------------------------------------------- 3

Chapter 1:

1.1 Introduction

1.2 Overview of Advertising Industry

1.3 Background of the Topic

1.4 Significance of the study

!.5 Objectives

1.6 Chapter Summaries

Chapter 2: Literature Review

2.1 Social media

2.1 Traditional Marketing

2. 2 Social media and Marketing

2.3 Blogging

2.4 Brand awareness

2.5 Consumer Buying Behaviour

2.6 Wider Audience and Followership

2.7 Advantages and Disadvantages of Social Media Marketing

Chapter 3: Methodology

3.1 Introduction

3.2 Research Philosophy

3.3 Research Approach

3.4 Primary Data

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3.5 Secondary Data

Chapter 4: Data Analysis and Discussion

4.1 Data Analysis Introduction

4.2 4Ps marketing framework

4.3 Consumer Buying Behaviour

4.3.1 Social Media Impacts

4.4 Segmentation, Targeting and Positioning

4.5 Porters Generic Strategies

4.6 Porters Five Forces

4.7 Discussion

4.8 Analysis of research data

Chapter 5: Conclusion

5.1 Introduction

5.2 Summary of findings

5.3 Implications

5.4 Further Research

References

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 CHAPTER-1
INTRODUCTION

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 1.1 INTRODUCTION

Social media content strategies have been created and used for years as a way to advertise
and influence market decisions in various industries, and the reason for their effectiveness
should be adequately studied so that we can have a better understanding of which strategies
are successful and which ones are not. Content strategies are useful when developing a social
media plan, although some may work better than others depending on the industry. In the
past, researchers have focused on strategy effectiveness on a larger scale, so there is an
opportunity to measure it based on industry to discover why certain content strategies are
effective and why other strategies fail. The problem that is studied is why certain content
works, or not, and if the audience reaction clarifies why the content works. Social media
analytics for specific accounts would be helpful to follow in order to understand why certain
accounts are doing well, but unfortunately, they are not public information, which creates a
roadblock for researchers. Creating a method to systematically infer how well, or how poorly
an account is performing based on publicly available information would be useful to
marketing and communication professionals. This study identifies effective social media
content strategies, in order to investigate the reasons why they work, or not. It focuses on
several content strategies, including brand and customer-centric strategies, and identify the
message design and audience reaction. The research contributes to best practices in social
media marketing in order to understand the motive behind content strategies.

1.2 OVERVIEW OF ADVERTISING INDUSTRY

Consumer is a person who buys and uses products. Therefore, consumers keep the production
cycle moving as well as play an important role in the economic system of any nation, as a
result, any nation will face crisis if consumers don’t have the effective demand for goods
produced. Advertising is all about mass publicity of products. Advertising involves creating
awareness of product’s uses and their benefits to consumers. By doing this, it makes a
product to be available to those who want it and this satisfies the needs of the advertiser;
increasing sales. According to Cohen, advertising is a business activity that employs creative

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techniques to design persuasive communication in mass media that promote ideas, goods, and
services in a manner consistent with the achievement of the advertiser ‘s objective, the
delivery of consumer satisfaction and the development of social and economic welfare.
(Cohen, 1988)

From Cohen’s definition, it can be found that advertising satisfies three objectives; to
increase sales of the firms, to guarantee consumers a great deal of service and finally to
ensure the social and economic welfare of society. Advertising can be done through various
media such as; radio and television, billboards, magazines and newspapers and websites.
(Cohen, 1988)

Advertising has huge stimulating influence on purchasing behaviour of the consumers.

Mostly, advertising is more effective on products that have intrinsic qualities. Qualities are
not known at the time of purchase and it takes one to discover the qualities upon using the
product. And, when there is a substantial chance of differentiating a product, it best suits to
advertise on that product (Schiffman, 1993).

In the absence of advertising, consumers may not be aware of the product and its potential to
satisfy their needs and desires. According to (Kotler and Keller ,2006) advertisings mix
consists of eight modes of advertising which are; personal selling, direct marketing,
advertising, sales promotion and exhibitions, public relations and publicity, events and
experience, interactive marketing, and word of mouth.

One form of advertising is personal selling. The Relevance of personal selling to this study
lies on the role of face-to-face interactions in marketing of tourism products. This involves
face-to-face interactions with prospective buyers for the purpose of selling a product or
service. These days, personal selling is considered to be the most effective tool as it involves
personal interaction, hence feedback is received immediately (Kotler and Keller,2006).

However, personal selling suffers from a few drawbacks i.e., it is the most expensive tool of
promotion. Secondly, it requires too much dependence on sales force. If the organization is
using a pull strategy to sell the product a sales force will be required to make sure that retail
outlets are looked after well, that they have enough stock, are trained well so they can push
the product onto the consumer (Kotler and Keller, 2006).

Another form of advertising is direct advertising. According to (Kotler and Keller, 2006)
direct advertising is advertising which communicates directly with customers and prospects.

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The merits of direct marketing are that it reaches a larger number of people, the message can
be repeated, its cost is not high, and with the development of art and graphics, statements can
be transformed into forceful messages.

Advertising can be categorized into above the line advertising and below the line advertising.
According to (Kotler and Keller,2006) there is above the line advertising is advertising placed
in TV, radio, newspapers and other advertising channels in which the advertiser pays an
advertising agency to place the ad. Below the line advertising is based on advertising via
direct mail, sponsorship, merchandising, public relations, trade show and personal selling.

(Kotler and Keller, 2009) explained it as variety of programs designed to promote or protect a
company’s image or its individual product. For example, British Airways has recently
invested in changing its identity by redesigning its aircraft livery. The change from the use of
a corporate colour scheme and national image on the aircraft to a far more international
image reflects the company’s global ambitions (Pender, 2009).

Company sponsored activities and programs designed to create daily or special brand related
interactions (Kotler and Keller, 2009). Sponsorship is about providing money to an event; in
turn the product or company is acknowledged for doing so. Sponsorship helps the company
improve its image and public relations within the market and usually the company attempts to
sponsor events that mirrors the image they are trying to aim for.

1.3 BACKGRIUND OF THE TOPIC

Over the past years there has been a vast change in technology and most companies have to
embrace this change and move away from traditional marketing methods (Arlberg, 2010).
This has therefore paved the way for marketers to move towards integrating social media into
the marketing strategy. Ellison (2007) defines social networks as a web-based service that
allows individuals to articulate a list of other users with whom they share a connection.
Users can share words, pictures and videos and in the context of a marketplace, it is the
experiences of the consumers that relate to brands, products and services that are shared
(Evans 2012). With 75% of Internet using adults in the US being active on social media,
traditional advertising is now on the decline with the rise of social media in the UK and USA
(Bern off et al. 2008). Therefore, social media gives companies a better platform to
communicate with consumers and build brand loyalty beyond traditional methods (Jackson
2011).
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Beauty brands across the world are now increasing their online presence as the tools and
approaches for communicating with customers have changed greatly with the emergence of
social media (Mangold and Faulds 2009). Implementing social media campaigns are
paramount for branding, marketing and public relations and businesses, both small and large
can attract potential customers by engaging in online social media (Smith 2009). Along with
marketing their products and creating brand awareness, it is also very important for
companies to understand what the consumer wants and gain their feedback on products.
While social media is less controlled than traditional research, it allows businesses to
understand the most passionate insight into customer perceptions and experiences (Sharma
2013).

1.4 SIGNIFICANE OF THE STUDY

The timeliness of this study is important now more than ever. Due to the COVID-19
pandemic and the emphasis on utilizing digital media to connect, social media is crucial for
businesses to incorporate into their marketing plans as users are spending more time on it.
The results offer best practices of content strategies that will be critical to understand and
grow audience engagement and sales. It identifies the reasons why certain content strategies
work, and others do not, for the chosen organizations. This is useful information for
marketing and communication professionals to use when developing and implementing future
marketing plans. The problem that is investigated is practical and the results offer action
items for marketing and communication professionals to follow. This particular study
addresses the effectiveness of content strategies in one industry, versus a broad perspective. It
makes valuable contributions to social media marketing and communication literature. The
research focused on finding what types of content caused users to engage (likes, comments,
etc.). Overall, this study did not focus on engagement with any specific brand in social media
but provides understanding of the ‘big picture’ for content strategies, which is why they
suggest looking at specific industries for future research.

1.5 OBJECTIVES

The aim of the research study is to explore whether social media can be used as a key
marketing platform and if it has become more effective than traditional marketing methods.
Due to the growing use of social media, the topic of social media and the marketing
implications have been widely published in academic literature. However, this research looks

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at the beauty industry as a particular example of brands using social media. Furthermore, the
study looks at how social media affects the business itself but also the impacts it has on the
customers and the way that they react to this type of marketing.

 Identify why brands are using social media to market their products over traditional
marketing methods
 Determine the effectiveness of using social media marketing
 To examine the relationship between social media and consumer buying behaviour
 To investigate the increase of customer power that has come about through the use of
social media

1.6 CHAPTER SUMMARIES

In order to gather an understanding of the objective, the following chapters will be included
in the study; literature review, methodology, analysis, conclusions and discussion on the
topic. A brief summary of the chapters is provided below.
Chapter-2 is the literature review which examines the current discussions and views relating
to social media marketing. It includes the main features of marketing that are affected by
social media such as brand awareness and consumer buying behaviour and also aspects of
social media marketing such as blogging and followership. Furthermore, it looks at the
advantages and disadvantages of brands using social media to market their products.

Chapter-3 explains the type of methodology that is used in this study, firstly looking at the
research type that is used and why it is appropriate for this research. Secondly, the chapter
analyse the use of primary and secondary research and provide a justification of the choice of
data that is used.

Chapter-4 analyses the models and frameworks of marketing and applies them to the findings
found from the literature. It evaluates whether or not they can be applied relevantly and if
they need to be adapted to relate to social media marketing.

Chapter-5 gives a conclusion of the research study and provides a summary of all the main
points that were discovered and also the implications made from the findings of the study.

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 CHAPTER 2

LITERATURE REVIEW

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2.1 SOCIAL MEDIA

There have been vast amounts of literature surrounding the topic of social media and the
ways in which it can be used to market products. This literature review will examine the idea
of using social media as a key platform over traditional marketing method. “The current
marketing environment is characterized by a surge in multichannel shopping and increasing
choice of advertising channels. This situation requires firms to understand how advertising
online influences sales offline.” (Dinner, Heerde & Neslin 2014). Pitta & Quinones (2012)
agree with this and have stated that the industry has recognized the importance of social
networking and user-generated content. The internet has had a large effect on the way in
which marketers interact with consumers and this is because “social media has affected more
than promotion. Traditional media has become less important as communication vehicles and
other areas in marketing have had to shift their focus,” (Pitta & Quinones 2012). There is a
large amount of literature discussing social media and businesses however this will look
specifically into how beauty brands utilise social media to reach their target market and the
way their online presence can affect consumers brand awareness. Furthermore, it will also
investigate whether social networks run by the consumers themselves, such as blogs, have
any effect on how the products are perceived by other customers.

Social media usage is one of the most popular online activities. In 2020, over 3.6 billion
people were using social media worldwide, a number projected to increase to almost 4.41
billion in 2025 (Clement, 2020). Duong (2020) explores several reasons for its popularity,
including the ability to create content, user-friendly platforms, it’s free to use, and has the
ability to share jobs in order to cast a wider net for candidates. In addition, it is continually
being updated to include new features. Social media involves all four prototypes of
communication: one-to-one, one-to-many, many-to-many, and many-to-one (Jensen &
Helles, 2017). It can also provide both synchronous and asynchronous communication. Social
media has been defined numerous times by various scholars. Carr and Hayes (2015)
attempted to synthesize definitions, defining social media as “internet-based, disentranced,
and persistent channels of mass personal communication facilitating perceptions of
interactions among users, deriving value primarily from user-generated content.” They
further clarified that social media “allow[s] users to opportunistically interact and selectively
self-present, either in real-time or asynchronously” (2015). This means that users can interact
at any time, without the constraints of business hours. Obar and Wildman’s (2015) one pf the
point is that user generated content is the lifeblood of social media. Without user-generated

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content, most social media sites would be non-existent. They can only continue if there are
people posting in them. User-generated content can include anything from a status update on
Facebook, a photo posted to Instagram, a video uploaded on YouTube, and even a comment
left on someone else's post. This is where the interactive and participatory nature of social
media lives. Obar and Wildman’s (2015) one more point is that social media services
facilitate the development of social networks online by connecting a profile with those of
other individuals and/or groups. This is created through a homepage that aggregates content
shared by people in a list. This list is usually developed by the user, by “friending,”
“following,” and “connecting” through social media sites like Facebook, Instagram, and
LinkedIn respectively. By having the ability to interact with people the user wants, they are
more likely to network and utilize social media to the fullest.

Social media is a tool that can be used by anyone, including businesses that use it to connect
with an audience. The proper use of social media can help organizations strengthen
relationships with stakeholders, build brand trust, identify new opportunities and foster
communication (Ho, 2014). In addition, organizations can improve trust and commitment
through active participation in their online communities (Kang, Tang & Fiore, 2014). Social
media can be used in a way to foster a positive return on investment, but the right content has
to be shared to engage an audience.

2.2 TRADITIONAL MARKETING

Kotler (2005) defines marketing as “a social and managerial process by which individuals
and groups obtain what they need and want through creating and exchanging products and
value with others.” Traditional marketing methods typically involve advertising through
newspapers, magazines, radio and TV (Lavinsky 2013). Mangold & Faulds (2009) state that
in traditional communications the elements of the promotional mix are coordinated to
develop a strategy, and the content, frequency, timing and medium of communications are
dictated by the organization in collaboration with its paid agents. In addition, the flow of
information outside had generally been confined to word-of-mouth communications among
individual consumers, which had minimal impact on the dynamics of the marketing A.

However, social media sites are now as influential as, and perhaps more so than conventional
media (Botha & Mills, 2012). Pitta & Quinones (2012) stated that have consumers have

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reduced their use of traditional media like the telephone and have adopted social media
instead. Smith and Zook (4: 2011) suggest that ‘old’ marketing had too much emphasis on
just marketing communications and this worked before customers had fewer communication
channels meaning it was easier to get a customer’s attention. Furthermore, they state that
“advertising is a maturing industry” and the traditional TV advertisement is no longer the
answer to everything. In the past most individuals read the local newspaper which meant that
they were solid marketing channels which business owners could rely on, however, more and
more people are choosing to get their news online rather than through newspapers (Lavinsky
2013).

Social media differs substantially from traditional marketing as they approach customers with
interactive objectives such as conversations, sharing and engagement, whereas traditional
marketing is delivered directly from the marketer and involves awareness, knowledge and
recall (Weinberg & Pehlivan, 2011). There is a much higher level of efficiency on social
media compared to other traditional communication channels which has prompted companies
to participate in Facebook, Twitter, Myspace and others, in order to succeed in online
environments (Kaplan and Haenlein, 2010).

Although much of the literature points towards social media marketing being more effective
than traditional marketing, Evans (2012) explains that social media is a complementary
extension of all other channels still exist and that social media is a mind-set, rather than a true
channel.

2.3 SOCIAL MEDIA MARKETING

Social media has become increasingly popular in the recent years and Kotler (2003: 34) states
that ‘much of today’s business is carried over networks connecting people and companies’
showing that the use of the internet is now a more popular way of connecting Businesses to
their customers. Woodall and Colby (2011) researched why consumers have chosen social
media over traditional media and suggested that there were four elements which were;
satisfying an impulse, the excitement of sharing, seeking advice and sharing with others with
similar interests. This emphasises that there is a move away from traditional marketing.
Marketers have moved towards using social media marketing to take advantage of the
number of consumers that can be reached through various social networks.

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Chi (2011, 46) defines social media marketing as a “connection between brands and
consumers, while offering a personal channel and currency for user centred networking and
social interaction.” Social media marketing differs from traditional methods of marketing as
it relates to relationships and making connections with consumers rather than trying to sell to
them (Gordhammer, 2009).

Utilizing social media for business introduces new opportunities for growth. The social media
marketing environment can be defined in terms of entrepreneurial orientation, innovation 17
orientation, and market orientation (Wu, Martinez & Martin, 2020). Entrepreneurial
orientation refers to identifying business opportunities to introduce new products or create
new businesses. It consists of proactive and risk-taking behaviours. Innovation orientation
refers to creating new ideas through innovative product development processes, and reflects
the tendency to engage in new ideas. Market orientation is focused on understanding
customer needs and staying up to date with competitors. All three of these orientations are
crucial in the social media marketing environment.

Consumers spend more time online than they did a few years ago and these consumers have a
wider social network because they can connect with strangers and develop their own
relationships (Pitta & Quinones 2012). Jobber and Ellis-Chadwick (2013:687) suggest that
although the number of users over 65 is increasing, those under 30 are more likely to use a
social networking site than any other. However, Kaplan & Haenlein (2010) believe that
marketers often falsely believe that social media is often only used teenagers however;
members of generation X, now 35-44 years old are increasingly joining the social media
trend, making social media a prime channel for marketing.

In order to understand if a business is successful on social media, performance needs to be

evaluated. Social media performance can be measured in terms of brand reputation and brand
equity (Davcik & Sharma, 2016). This can be seen through the amount of “likes” and follows
a business has, which can be translated in terms of online support. Performance can also be
measured by the quality of customer service and relations (Guesalaga, 2016), which can be
seen in public interactions with users in comments. In addition, marketing costs are also a
measurement of performance (Zhang, Guo, Hu, & Liu, 2017) because it is useful to know
whether a business is paying for their engagement or receiving it organically. Other indicators
that measure how well a social media strategy is doing includes sales of product or services.

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This can be counted by a post-sale survey, or by counting the amount of link clicks on a
social media post.edia is often only used teenagers however; members of generation X, now
35-44 years old are increasingly joining the social media trend, making social media a prime
channel for marketing.

Social media does however present a challenge to organisations because until recently they
have been able to control their marketing via other marketing channels and it seems now that
because of social media, the consumer now defines the brand (Gillin 2009: Li & Bernoff,
2008). Mangold & Faulds (2009) identify that in the era of social media, marketing
managers have less control over the content and timing of information.

2.4 BLOGGING

Internet based social tools have revolutionised how consumers communicate by word of
mouth (Eikelmann et al. 2008). Onishi & Manchanda (2012) explain that Consumer
Generated Media, such as blogs have grown immensely in recent years. Blogs are personal
online diaries which are compiled by one person or a team of people. The postings would in
this case be about various beauty products and typically comments can be added to each blog
to help create interactivity and feedback (Chaffey et al. 2009:11). Beauty companies are
beginning to see the benefits of social media and the use of blogging is becoming
increasingly popular to communicate brand awareness (Matthews, I 2011). Furthermore, Cho
and Huh (2008) go on to state that blogs are now becoming a new form of interactive
advertising.

Consumers rather than the brands themselves mainly control Blogs and there are many blogs
and profile pages on social networks, which contain consumer’s recommended brands.
Furthermore, there are more than 248 million pages of personal content on the Internet with
the sole purpose to give feedback on various beauty brands and products (Davis, J 2008).

Watkins (2013) highlights that promoting products through well-known beauty bloggers can
reach a large customer base and it is also aimed at the desired target audience. Consumers
who are interested in the products will be the ones who are following those particular blogs
and therefore the products can be marketed directly to them. Furthermore, Watkins suggests
that a sense of trust is built with the brand being advertised because it is being used by a real
person rather than a photo shopped celebrity. Matthews, I (2011) reiterate this point when

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she states that people trust recommendations from individuals, rather than being sold to by
brands. The emergence of social economics sites allows the consumer to review the
recommendations given by other consumers and then purchase the product directly from the
products site (Davis, J 2008). This allows beauty brands to make use of the consumer blogs
and integrate them into their marketing strategy.

2.5 BRAND AWARENESS

Brand awareness is creating the brand and ensuring that customers are aware of the brand’s
existence (Peter 1996). Communicating with consumers is vital, and the Internet—notably
blogs and social media outlets—is invaluable in spreading the word about a beauty brand and
connecting with consumers (Chein, H 2012). Social media has affected consumers’
interaction with the brand – not just the purchasing side, but with the feedback to the brand
direction in general (Hill, A 2010). The conversations that are being had between peers can
provide a cost-effective way for companies to increase brand awareness and increase brand
loyalty (Gunelius, 2011). Mckee (2011) therefore suggests that social media helps to build up
brand awareness through networking and conversation.

Social media can significantly boost the brand awareness as there is such a large reach on
social networks. The well-known beauty brand E.L.F has made social media their main
channel for marketing and they have no traditional media budget. Beauty brand E.L.F gets
more than 200,000 visitors monthly and this interest is generated purely through social media
(Neff, J 2009), showing the effectiveness of social media in creating interest for brands.

However, Weinberg (2009) highlights that consumer are now having conversations about the
brand in which the brand is not involved with and this is forcing brands to listen. Brand
managers must be concerned with the social media visibility of their own brand but they may
also want to make comparisons with the performance of other competitive brands (Botha &
Mills, 2012).

Hill, A (2010) implies that from a branding point of view, the quality of messaging due to the
internet has decreased and the communications have become more cluttered than ever. This
therefore means that brands are not clearly getting there message across social media sites
and it needs to be improved. However, larger companies see the value in treating digital

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media the same as traditional media; and there is a lot more room for creativity when using
digital media (Hill, A 2010).

2.6 CONSUMER BUYING BEHAVIOUR

Consumer buying behaviour is “the process by which individuals search for, select, purchase,
use and dispose of goods and services.” (Business Dictionary n.d.). Kotler (2003) believed
that consumers were stimulated by marketing strategies which then led them to make
decisions after processing the information.

Mangold and Faulds (2009) state that “Social media has influenced consumer behaviour from
information acquisition to post-purchase behaviour such as dissatisfaction statements about a
product.” Social media allows individuals to have their own voice, as well as have access to
product information that facilitates their purchasing decisions (Kozinets et al., 2010).
Schlosser (2005) found that a small amount of negative information from a few postings can
have a large impact on the consumer attitudes. Ioanas & Stoica (2014) conducted research
and found that before purchasing a product online, consumers usually inform themselves
from forums, company’s websites, Facebook accounts and peer reviews. They concluded that
social networks definitely have a role in influencing the behaviour of consumers. Cooke
(2006) suggests that this can be useful to companies as social media can be utilised to
measure and understand complex consumer decision making as consumers turn to blogs and
journals to record their journey through the purchasing process.

However, Wang & Hu (2009) highlight that when consumers first approach an unfamiliar
website; they have perceptions of uncertainty and risk. Therefore, is important for companies
to win consumers’ high initial trust or they may easily switch to other websites. Norris (2002)
reiterates this point when stating that “users have nearly unlimited choices and minimal
constraints about where to go and what to do. Therefore, commitment to any particular online
group can often be shallow when there are other options with just a mouse click away.”

2.7 WIDER AUDIENCE AND FOLLOWERSHIP

Mason & Gibbs (2012) clarify that social media is an excellent way to reach brand fans that
previously may have been out of reach due to distance and if properly aligned social media

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efforts can be global. For beauty brands, social media can be very important in reaching a
wider audience as consumers can be engaged through interactions through YouTube,
Facebook and Twitter (Mason & Gibbs, 2012).

The more followers a brand has on social networks, the more exposed their customers’
likings will be. Through sites like Twitter and Facebook, potential customers express their
likes or tastes which rationalize an agent’s observed actions (Beshears et al. 2009). Social
media increases the information about customers and therefore it is beneficial for businesses
to attempt to increase their follower count (Paniagua & Sapena, 2014).

The graph below highlights how important social media is for beauty brands as it shows the
number of Facebook followers many of the brands have. Their social network pages are
reaching millions of people, showing the sheer volume of consumers that can be reached
through social media.

(Source: statista.com)

Although the large number of followers on social networks reaches a wider audience, Taylor
et al. (2011) found in a study conducted that only 22% of consumers had a positive attitude
toward social media advertising and 8% of consumers abandoned a social network due to

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excessive advertising. Furthermore, they state that the culture of the internet has evolved in
such a way that consumers consider advertising to be intrusive and annoying that interrupt the
flow of online activities.

2.8 ADVANTAGES AND DISADVANTAGES OF SOCIAL MEDIA MARKETING

Social media marketing has made marketing products much easier than using traditional
methods of marketing. Smith & Zook (2011) state that social media can help to create
awareness and engage customers all the way through a purchase and help to convert
prospects to customers and customers into lifetime customers. Furthermore, it enables
consumers to give and read feedback on products brings benefits to marketers that were
impossible before the Internet. “The aggregate value of hundreds of positive comments about
a product gives a brand a buzz that cannot be matched by promotion via advertising alone.”
(Davis, J 2008) The products can be promoted in various different ways, but what matters is
the feedback and comments left by the customers (Arca, C 2012). This is because customers
are more likely to accept the opinions of other consumers rather than the brand itself (Myers,
N & Robinson, R 2012).

However, with the increasing usage of social media sites, businesses ‘increasingly less
control over the information available about them,’ and when conducting an internet search,
it is likely that the top five results do not always include the corporate page (Kaplan &
Haenlein 2010) meaning that the company’s brand image may be represented in a way that is
not beneficial to the business. Smith & Zook (2011) also highlight that social media requires
a continued feed of fresh content as well as responses to discussions, which can be time
consuming for businesses. They also bring light to the issue of hackers, scams and spammers
which could jeopardize the control of messages. Furthermore, Pitta & Quinones (2012)
suggest that the effects of Social media are clear but the techniques and approaches of how to
use them for marketing are not so straightforward. This would suggest that there is still much
research and development which need to go into using social media as a marketing method.

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 CHAPTER 3

METHODOLOGY

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3.1 INTRODUCTION

Research can be defined as a scientific and systematic search for information on a specific
topic (Kothari 2004). He states that the purpose of research is to “discover answers to
questions through the application of procedures” and to “gain familiarity with a phenomenon
or achieve new insights into certain areas.” This chapter will highlight the research
philosophy and approach that have been used and then explain the different types of data that
can be used and the one that has been used for this research study.

3.2 RESEARCH PHILOSOPHY

Saunders & Thornhill (2012: 127) suggest that research philosophy relates to the
development of knowledge and the nature of the knowledge. There are three main research
philosophies: positivism, realism and interpretivism.

Positivism is when data is collected about an observable reality, in order to find casual
relationships which are then used to create law-like generalisations (Gill & Johnson 2010).
Positivists believe that only phenomena and hence knowledge confirmed by the sense can
genuinely be warranted as knowledge and the purpose of the theory is to generate hypotheses
that can be tested (Blumberg et al 2005). Therefore, positivists follow a very structured
methodology in order to facilitate replication (Gill & Johnson 2010).

Realism also relates to scientific enquiry and what we sense as reality. The philosophy of
realism is that there is a reality independent of the mind (Saunders & Thornhill 2012: 136).
Saunders & Thornhill (2012) go on to explain two types of realism; direct realism which is
what we experience through our senses portrays the world accurately. The second type is
critical realism argue that what “we experience are images of the things in the real world, not
the things directly,” (Saunders & Thornhill 2012: 136).

The approach that is used in this study is interpretivism which is an approach that emphasises
the meaningful nature of people’s character and participation in both social and cultural life
(Walsham 1995). Interpretivists avoid rigid structural frameworks and adopt a flexible
research structure (Carson et al. 2001). Lin (1998) states that interpretivist researchers not
only look for the presence or absence of casual relationships, but also specific ways it
manifested, which is something that has been done in this research paper. Furthermore,

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Walsham (1995) explains that an interpretivist approach would be to collect the data before
analysing it, which is also used throughout this study. Saunders & Thornhill (2012: 137)
argue that an interpretivist perspective is highly appropriate in business and management
research, particularly in the field of marketing.

3.3 RESEARCH APPROACH

The approach that will be used in this research study is deductive. Deductive reasoning
occurs when the conclusion is made logically from a set of statements, the conclusion being
true when all the statements are true (Ketokivi & Mantere 2010). Deduction begins with an
expected pattern that is tested against observations, whereas induction begins with
observations and seeks to find a pattern within them (Babbie 2014: 51-52). Deduction is the
process used for this study as the pattern expected was put forward first and the research was
then done to see if the pattern occurred in the data.

3.4 PRIMARY DATA

Primary data is data that was previously unknown and has been obtained directly by the
researcher for a particular research project (Currie 2005: 89). Glass (1976) explains that
primary data is the original analysis of data in a research study. It is carried out when the data
that is needed is not available from published sources.

There are three main methods of collecting this type of data; surveys, interviews and
observations. Surveys and interviews mainly consist of asking respondents questions whereas
observations focus on collecting data about behaviour and the researcher records what is
relevant to their research (Currie 2005: 90).

The main advantage of primary data collection is that it is relevant to the topic of the research
and therefore the degree of accuracy is very high (Sindhu 2012). The questions the
researchers ask are tailored to draw out the data that will aid them in their study (IWH n.d.).
Using primary data ensures that the data collected is reliable and valid as it is carried out at
the time of the study and therefore will not result in outdated information which may be the
case when using secondary data.

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Carrying out primary data collection can be very time consuming and a lot of effort is
required for the data collection. By the time the data is collected and analysed, the research
may have become outdated and therefore the purpose of the project may be defeated (Sindhu,
2012).

A disadvantage of primary data is that the results can often be bias because the observer uses
their own subjective view to interpret the events that are being observed (Saunders et al.
2012). Additionally, primary data can only be used when the respondents are cooperating
(Kothari 2004). Researchers may find that people are not responding to questionnaires or do
not want to be interviewed for the purpose of their research. Furthermore, if respondents do
reply, there is a chance that the may give ambiguous or hard to interpret responses (Kothari
2004).

Ethics is one of the main issues surrounding the collection of primary data, the researcher
must ensure that the correct permission is obtained and ensure that no physical or emotional
harm is inflicted upon the participants. Furthermore, it is important that participants are not
taken advantage of simply because they are easy to access (Driscoll & Brizee 2012).

Primary research will not be used in this research study as it will be extremely time
consuming to carry out the research and there are a large amount of ethical issues that need to
be taken into consideration and breaching these could hinder the project greatly. Furthermore,
there is a large amount of secondary data on the topic of research and therefore it would be
unnecessary to carry out primary research.

3.5 SECONDARY DATA

Secondary data is the re-analysis of data for the purpose of answering the original research
question with better statistical techniques, or answering new questions with old data (Glass,
1976). Saunders et al. (2012) state that secondary data includes both quantitative and
qualitative data and are used in both descriptive and explanatory research. They go on to
explain that it may be raw data, where there has been little processing, or compiled data that
have undergone some sort of selection and summarising.

Secondary data provides a large saving in resources, particularly time and money (Ghauri &
Gronhaug, 2010). This point is reiterated by Stewart & Kamins (1993) who state that using

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secondary data puts researchers at an advantage compared to those using primary data. This
is because the data can be evaluated before it is used and any unsuitable data can be rejected
at an early stage (Saunders et al. 2012). Corti and Thompson (1998) highlight that secondary
research is useful in providing case material for teaching and methodological development.
This in particular applies to this research study as is can be difficult to carry out empirical
work. Secondary data is also very useful as it allows us to apply a new perspective to the
original research (Long-Sutehall et al. 2010). Furthermore, secondary data provide a source
of data which is permanent and can be regularly checked with relative ease (Denscombe
2007).

Although secondary data is easy to access and use, there is also the secondary data does not
match the specific purpose of the research. This is because it would have been collected for a
specific purpose that differs from the particular research topic (Denscombe 2007). This
therefore means that the data found may be irrelevant to the research question which would
mean finding alternative sources of data (Saunders et al. 2012). Secondary data can also be
difficult to gain access to and in some cases the data may cost a large amount of money to
obtain the information (Saunders et al. 2012). Kervin (1999) also states that secondary data is
subject to measurement bias which may be intentional distortion to data or changes in the
way the data is collected. This is because the purpose of the study may be to reach a
predetermined conclusion (Smith 2006). Therefore, secondary sources should be evaluated
carefully to ensure that it is reliable and valid to the research question.

This research study will consist of secondary research. This is because it allows previous
research to be analysed and can offer various different perspectives on the topic. It will also
be less time consuming than carrying out primary research and allow time to be spent on
analysing the data rather than collecting it.

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 CHAPTER 4

DATA ANALYSIS AND FINDINGS

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4.1 DATA ANALYSIS INTRODUCTION
This chapter will include an analysis of the literature that was reviewed in chapter 2. The
findings will be discussed in relation to various marketing theories and frameworks. These
will be applied to the findings in order to analyse how social media marketing works and
whether they fit into the specific aspects of the suggested models. Furthermore, the findings
about social media will be taken into consideration, particularly how customers behave on
social media, and examine how this may change the theories and frameworks designed by
marketers.

4.2 4 Ps MARKETING FRAMEWORK

The marketing mix is the set of marketing tools; the product, its price, promotion and place
that the firm uses to achieve its objectives in its target market (McCarthy 2001). The 4 Ps
marketing mix was designed as a means of translating marketing planning into practice
(Bennett, 1997). It is a conceptual framework that identifies the principles that marketing
managers consider in their decision-making processes (Goi 2009). The central assumption is
that if the right decisions are made and implemented about the products, its price, and how it
will be promoted and distributed, the business will be successful (Doyle, 2002: 287).

When using social media marketing, the product aspect of the marketing mix is still
incredibly important as consumers will always look for products that satisfy their needs and
wants and the occurrence of social media has not changed this. Social media may make it
harder for an organization to differentiate the products significantly compared to competitors,
as there is a larger range of products available. But it does not make the product any less
important.

Social media affects other aspects of the marketing mix. Organizations must understand that
the price of their products is influenced incredibly by social media. If consumers spot
inconsistencies in the pricing of products they are likely to take to social media to voice their
views and this in turn will reflect negatively on the brand image. This may then allow for new
competitors to enter, as they can identify the issue of pricing and offer a product to
consumers with a more consistent pricing strategy (Cohen 2010).

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Furthermore, the 4Ps do not take into account pricing in an environment where there are a
large number of alternatives and consumers have a larger knowledge base. Consumers are
looking for the lowest price possible; therefore, organizations must compete with these
prices.

The marketing mix can only somewhat be applied to social media marketing as it is more
focused on making connections with consumers rather than trying to sell to them
(Gordhammer, 2009). Rothery (2008) has suggested a revised model and where there are
4E’s. The 4P’s revolve around traditional offline marketing strategies. The product has
become an experience, place becomes everyplace, price becomes exchange and promotion
becomes evangelism.

Everyplace focuses on the social media aspect of marketing. Rothery (2008) highlights that it
is not just stores that consumers go to find products, they now use the Internet. Organizations
should not spend all their time focused on one place as this means that it does not reach all
the potential customers, businesses need to utilize other outlets.

The 4E’s focus more on engaging with the customers throughout the process rather than
having separate focuses.

This shows the impact that social media has had on traditional models as they no longer fit
into marketing strategies and they have to be adapted to fit in with new technological changes
and the growing power of the consumer.

4.3 CONSUMER BUYING BEHAVIOUR

Consumer decision-making is usually depicted as a cognitive process. Consumers become

aware of a need and a possible means of satisfying which is typically found through
advertisements for particular products (Foxall 2002: 120). The person is influenced by an
environment, which consists of psychological variables, social influences and purchase
decision. Each variable includes different factors that will influence the decision-making
process (Weber & Capitant de Villebonne, 2002).

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The consumer buying behaviors
steps in decision process model
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
Need of Research
The consumer buying behaviors
steps in decision process model
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
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5. Post purchase behavior
Need of Research
The consumer buying behaviors
steps in decision process model
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
Need of Research

The consumer buying behaviors

steps in decision process model
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
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2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
Need of Research

Source: McCarthy and Perreault (2002)

Kotler (2006) suggests that consumers pass through five stages with all purchases. It is clear
from the process that the purchasing decision is part of a larger process and marketers should
be involved throughout the entire buyer decision process (Kotler, 2006: 152). When
consumers have identified a problem they begin their information search, they may turn to
external sources such as friends or family, however a great deal of information searching
takes place on the Internet. The objective of this research is to build up an awareness set
which is an array of brands that can potentially provide a solution to the original problem.

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(Jobber & Fahy 2009:61). This research is accompanied by the mental processing of the
advertising messages (Foxhall 2002). Once the awareness set has been built up, consumers
must then evaluate the choices, which will eventually lead to a decision being made about
which product to purchase.

4.3.1 SOCIAL MEDIA IMPACTS

Before social media was a large part of consumers’ daily lives, they would turn to
newspapers and friends or family to complete their information search. (Jobber & Chadwick,
2013). This would usually give a limited amount of information but would be sufficient to aid
their decision-making.

With the increased popularity of social media, as Norris (2002) mentioned, users now have an
unlimited amount of choices and conducting a quick search will allow them to access pages
from numerous businesses. Consumers will be able to find hundreds of brands and products
that they may not have been aware of beforehand, giving them more options to help build up
their awareness set. This can impact organizations, as they are no longer just competing with
other large brands; they also have to compete with small-unknown businesses and
international brands. Consumers have the ability to gain knowledge about products from all
over the world and are not limited to the country they are in. This could provide some
difficulty for businesses as they are competing on a global level without realising it. As a
result of this, marketers must understand the importance of social media as it allows them to
market their product to consumers without the expenses of big international marketing
campaigns.

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Beauty products in particular have a vast amount of social media attention with many
YouTube accounts dedicated to reviewing products and giving the view the opportunity to
witness the product being used. This means that consumers have more knowledge than ever
before on the products and social media gives them the tools to make a more informed
purchasing decision. Li & Bernoff (2008) previously stated that consumers define the brand;
this is evident from the way in which consumers are able to influence each other more than
the brands themselves.

Social media has had the biggest impact on the evaluation of alternatives in the consumer
buying process. This is because people trust recommendations from other people rather than
the brand itself meaning that some marketing efforts may be insufficient when people are
able to access networks where they can obtain feedback from other consumers. With the
emergence of blogs and users on twitter and Instagram taking to their networks to review and
give feedback about products, consumers have a variety of was to evaluate the products in
their awareness set. The popularity of these supports the statement made by Woodall and
Colby (2011) that consumers turn to social media to seek advice and share with others who
have similar interests.

The consumer buying process explains social media marketing as it takes into consideration
the influences on consumers when making their awareness set, however in order for it to be
more appropriate for social media marketing, more emphasis needs to be placed on the
information search, particularly from third parties.

Before social media, the business would be largely involved in the process of making a
purchase however; the shift of power from the brand to the consumer suggests that marketers
need to integrate social media into their marketing strategies in order to stay relevant in the
consumer buying process. Marketing managers also need to understand the importance of
having a strong presence throughout the whole process and ensure that the information that
consumers are obtaining is beneficial for the brand image.

4.4 SEGMENTATION, TARGETING AND POSITIONING

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Market segmentation is the ‘identification of the individuals with similar characteristics that
have significant implications for the determination of marketing strategy,’ (Jobber & Fahy,
2009: 109). The basic principle of market segmentation is that markets are not homogenous
and that it makes commercial sense to differentiate marketing offerings for different
customers (Evans, 2002: 246).

Target marketing is the process of selecting one or more market segments and developing a
product that is aimed specifically at those segments, it is particularly important in global
markets where major differences in culture and history can divide potential customers
(Adcock et al. 2001: 126-127).

Once a company has segmented the market and decided which segments to target they must
position the product. This is the decision of the company to choose the benefits that the brand
has to put forward to gain a distinctive place in the market (Lambin, 2007: 209).

Segmentation is a very important aspect of social media marketing as there is such a large
number of consumers online, businesses need to divide and target them effectively otherwise
may implement a marketing strategy that is only effective on a small proportion of
consumers. Social media allows companies to target specific consumer groups, which would
be more difficult to do in traditional markets due to high costs of obtaining information about
particular customers segments (Kim et al. 2004). Firms can get free marketing data from
social media, which could allow marketers to significantly reduce marketing costs.

A large amount of information is provided on social networking pages about consumers and
marketers can use this to their advantage by utilizing the data that is provided. Social media
allows segmentation to become more in-depth as before marketers had to divide consumers
into age brackets and geographical location. However, due to social media the groups in
which consumers are segmented into can be a lot more relevant and useful to the marketing
strategies.

For example, Facebook provides an insight which people have liked a brands page and what
other pages they have liked. This means that companies can build up an understanding of
their customer’s interests and firms can go beyond market segmentation to market
fragmentation, dividing their markets into even smaller groups of customers – even
potentially tailoring their offerings to individual customers (Robert, 1993). As consumers are

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more aware of alternative offerings, a more tailored approach would be a lot more effective
than mass marketing methods. This would suggest that the model could be reworked and
replace segmentation, which is very broad in social media marketing, to fragmentation, which
is a lot more precise and breaks down the groups of consumers further than segmentation in
traditional marketing.

Targeting is one of the most important aspects in social media marketing. Taylor et al. (2011)
found that only 22% of consumers had a positive attitude towards social media advertising.
This shows that marketing managers must ensure that they are aiming their promotional
activities to the correct segment of the market as only a very low percentage of consumers
were reacting positively to advertising.

The research found that ‘the quality of messaging on the Internet and communications have
become more cluttered than ever’ (Hill, 2010). Managers therefore need to understand the
importance of segmentation, targeting and positioning, as without it the marketing efforts
over social media will become very ineffective, as they will not be reaching the right
audiences.

4.5 PORTERS GENERIC STRATEGIES

Porter made a significant contribution to strategy development by identifying three generic

strategies and suggesting that the management of every organisation must accept and follow
one of the strategies in order to be successful (Adcock et al. 2001: 410).

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(Source: Adapted from Coulter, M, 2008: 173)

The cost leadership strategy is when the organisation aims to have the lowest costs in the
industry and it produces products for a broad customer base. If the cost leader has the lowest
costs in the industry, it can potentially charge the lowest price and still earn profit (Coulter,
2008: 173).

Differentiation stresses the benefits in developing marketing offerings that essentially

different and superior from those of competitor. This involves adding customer value through
specific features or improvements but it can be achieved by very effective marketing,
specifically involving brand building (Adcock, 2001: 410).

The focus strategy is used when an organization follow either a cost or differentiation
advantage but in a niche customer group. The three broad ways to segment the niche markets
would be: geographical, type of customer or product line (Coulter, 2008: 176).

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(Source: Kumar et al. 2006)

The diagram above illustrates the different strategies applied to various large cosmetic
companies. Estee Lauder uses a differentiation strategy, as the products are not the same as
those that are offered by other brands in the cosmetic industry, this allows them to charge a
higher price. Avon however, adopts a cost leadership strategy as they provide consumers a
large range of products at a low price. It is clear from the diagram that there are a range of
different strategies that are adopted by the cosmetics industry.

Over the years Porter’s generic strategies have received a good deal of support in traditional
business contexts (Miller 1988). However, it is unclear whether the generic strategies can be
applied to social media marketing (Smith, Bailey & Brynjolfsson, 1999). This is because
online marketing varies greatly from traditional marketing.

Cost leadership is still and obvious strategic choice for many businesses marketing their
brands online as Kim & Kim (2000) found, most online shoppers indicated that price was
their most important consideration. Social media allows firms to quickly adjust their prices,
which means that they can enjoy greater price flexibility and more efficient price competition
(Bakos, 1998).

Porter (2001) argues that it is difficult for brands to differentiate themselves on social media
as they lack many potential points of distinction such as showrooms, sales personnel and
service departments. However, if a business manages to offer a differentiated product, they
will gain an advantage as consumers can easily access information that was previously
impossible to obtain in order to find which brands will offer additional value through
differentiated features (Kim, 2000).

Using focus strategy targets specific groups of buyers, product lines or geographic areas.
Social media allows firms to customize their offerings to meet the specific wants and needs
of their customers (Bakos, 1998). Social media is the ideal medium to implement focus
strategies as it is viable for businesses to communicate and deliver content over the Internet
to small niche markets (Yelkur & DaCosta, 2001).

The generics strategies designed by Porter are broadly relevant in social media marketing.
Focus is the most relevant strategy as it is easier for marketers to access the information that

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they need to focus their products on consumers. Marketing managers should be aware of the
difficulties associated with differentiating their products in an online environment where
there are hundreds of similar products. The strategies used on social media need to take into
account the ability of consumers to find out more information and find alternatives.

4.6 PORTERS FIVE MODEL

Porter states that the nature and degree of competition in an industry hinge on the five forces:
the threat of new entrants, the bargaining power of customers, the bargaining power of
suppliers, the threat of substitute products and the rivalry between the competitors (Porter,
1979).

(Source: Porter, 1979)

The intensity of the rivalry helps to determine the level of head-to-head competition there
will be in the industry and may be one of the most important aspects of the framework when
determining whether a business should or should not enter an industry (Karagiannopoulos et

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al. 2005). The threat of entry involves how easy it is for a new company to enter the market
and whether there are any obstacles that will stop them from entering the market. Porter
(1980) explains that the threat of substitute products can have an effect on an industry’s
profitability and depends on the relative price-to-performance ratio of the different types of
products, which customers can turn to the same needs. Porter’s work also highlights the
impact that buyer and supplier power have on the attractiveness of a market.

The internal rivalry in the cosmetic industry is incredibly high as there are a lot of existing
cosmetic companies currently competing in the market and the environment endorses large
corporations to acquire a number of brand name products (Kumar et al. 2006).

As previously discussed, social media provides consumers with easier access to information
about products and suppliers, which means that the buying power of consumers is increased
largely (Porter, 2001). This is because consumers now have a variety of choices when making
their purchasing decision and this means that businesses are fighting for their purchase,
leaving the power to the consumer.

The barriers to entry are also reduced by the occurrence of social media marketing, as it
offers opportunities to new brands. The result of this is that larger brands now face
competition not only from other large organizations but also small new entrants. This would
suggest that managers need to be aware of the smaller companies that may come into the
industry with new ideas and prices that could potentially attract new customers. In traditional
marketing environments, a larger marketing budget would normally be needed in order to
reach consumers but social media allows organizations to have an online presence and reach
a large target audience at significantly lower costs than before as Bernoff (2008) states that
social applications can almost be free and serve more sophisticated communities compared to
big advertising campaigns.

However, Porter suggests that after careful examination, there are major cost centres which
determine the level of the barriers to entry, which would suggest that threats of entry may
vary depending on the industry.

Social media enables new approaches to meeting needs and functions, therefore creating new
substitutes. Porter (2008) explains that the increase of substitutes is as a result of distorted
marketing signals. If the need is fulfilled with a number of products, then there is no need to

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create substitutes. Social media allows marketers to assess what the product needs to fulfil by
accessing consumers networking sites and evaluating their personal tastes and preferences.
By this theory, social media should reduce the threat of substitutes as there is no need for
consumers to turn to other products. However, due to the exposure to large amounts of
information and communication with others, consumer tastes can change at an instance
meaning that marketers can never truly fulfil all the needs and wants. Social media has a role
to play in this as it aids the constant creation of new consumer needs.

4.7 DISCUSSION

The theory presented in the data analysis chapter somewhat relates to the analysis of social
media. The results show that there are strong links to the theory and a lot of what is suggested
is still relevant to social media. For example, Porter’s five forces are still very much relevant
in assessing how attractive an industry is. However, some aspects of the frameworks and
models need to be adapted in order for them to properly be applied to social media. This is
because traditional marketing did not revolve solely around the use of the Internet.

The theories also help to explain social media to, especially the consumer buying behaviour.
The process highlights that consumer look to others when building up their awareness set and
this is why social media has become an integral part of people’s lives. It is a place where
people can connect with others and discuss their interests and obtain views and advice on
products and brands. The research shows that consumers often look to other people before
making their purchasing decision and they do this by looking at social network sites.

Consumers are very heavily influenced by others on social media, especially in the cosmetic
industry, social networking sites have become increasingly popular for consumers to voice
their opinions and views on particular brands and products. People follow various bloggers
on social networks such as YouTube, Instagram and Twitter and are heavily influenced by
the products they see them use.

However, models such as the 4Ps marketing needed to be reworked in order to explain social
media marketing, as some of the ‘P’s’ are not as relevant to social media as they were to
traditional marketing methods. This explains why new models of the original 4Ps have
occurred, because they have more relevance to social media and provide a better explanation
to the process of using the Internet as a marketing tool.

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From the research and analysis, it is clear that managers need to be more involved in the
marketing processes as consumers are looking to build up their relationships with the brand
rather than being sold to by the brand. This means increasing their overall presence on social
media. Marketing managers for cosmetic industries may choose to involve bloggers in their
marketing strategy. Instead of using a celebrity endorsement for a product they could choose
a blogger instead. This would be effective as the research shows that consumers have more
trust in real people rather than celebrities that the brand have chosen to represent the brand
(Watkins, 2013).

The consumer buying behaviors

steps in decision process model
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
Need of Research
The consumer buying behaviors
steps in decision process model

44 | P a g e
Their mainly five stages of
consumer buying behavior
1. Problem/Need Recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
Need of Research

4.8 ANALYSIS OF RESEARCH DATA

1) Are you aware about the Company’s Advertising Strategies?

Table 4.1: Awareness about Company’s advertising Strategies
No. of respondents Percentage (%)
Totally aware 25 50
Partially aware 20 40
Not aware 5 10
Total 50 100

Fig4.1: Awareness about Company’s advertising Strategies

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 PERCENTAGE OF RESPONDENTS
Totally Aware Partially Aware Not Aware

10%

50%
40%

INFERENCE:
50% respondents are totally aware about the cosmetics advertising strategies, 40%
respondents are partially aware about the advertising strategies and 10% of the respondents
have no idea about the advertising strategies.

These findings show that majority of respondents are aware of advertising strategies used in
advertising Forever Living products. With this regard, the Forever Living customers are well
aware of the various products and services they are buying and they make informed decisions
before purchasing.

2) Experience in Cosmetic Industry

0-2 Years 2-4 4-6 Years More than TOTAL

Years 6 Years
No. of 10 5 10 25 50
respondents
Percentage (%) 20 10 20 50 100

Fig 4.2: Experience of Respondents in Cosmetics Industry

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 Number of Respondents
0-2 Years 2-4 Years 4-6 Years More than 6 years

20%
10%

50%

20%

INFERENCE:
20% of respondents have 0-2 years of experience in cosmetic industry, 10% of respondents
have 2-4 years of experience, 20% of respondents have 4-6 years of experience and 50% of
respondents have more than 6 years of experience in cosmetic industry.

These findings show that majority of respondents have vast experience in the cosmetics
industry and this enhances their ability to perform well in their Forever Living cosmetics
business. This means, the more experienced customers are with using Forever Living
consumer products, the more likely they are to be influenced by advertisements when making
their purchasing decisions.

3) Do you think advertising attracts attention on Forever Living Cosmetic Products?

YES NO TOTAL
No. of respondents 35 15 50
Percentage (%) 70 30 100 Fig 4.3: Advertising
Attracts Attention on
Forever Living Cosmetics Products

47 | P a g e
 Number of Respondents
Yes No

30%

70%

INFERENCE:
It shows that 70% of respondents agree that advertising attracts attention on Forever Living
Cosmetic Products and 30% of the respondents do not agree with the same.

The respondents were of the opinion that advertising enables consumers to find out various
information about the cosmetics products including where the product was made, ingredients
of the products, quality of the products and the benefits of using the product.

4) Advertising Influences Consumer Buying Behavior by Creating Desire

Strongly Agree Disagree Strongly TOTAL

agree disagree
No. of 20 10 15 5 50
respondents
Percentage (%) 40 30 20 10 100

Fig 4.4: Advertising Creates Desire for Forever Living Cosmetics Products

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 Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree

10%
20% 40%

30%

INFERENCE:
It shows that 40% of the respondents strongly agree that advertising creates desire for forever
living cosmetic products, 30% of the respondents agree that that advertising creates desire for
forever living cosmetic products, 20% of the respondents disagree that that advertising
creates desire for forever living cosmetic products and 20% of the respondents strongly
disagree that that advertising creates desire for forever living cosmetic products.

These findings suggest that advertising helps to influence consumer buying behavior by
making the consumer want to use Forever Living cosmetics products instead of other
cosmetics products. Fist time users of Forever Living cosmetics products are more likely to
be influenced by to start using Forever Living products after seeing advertisements.

5) Product Quality

Strongly Agree Disagree Strongly TOTAL

agree disagree
No. of 20 10 15 5 50
respondents
Percentage (%) 40 30 20 10 100

Fig 4.5: Product Quality Influences Consumer Buying Behavior

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 Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree
10%

20% 40%

30%

INFERENCE:
It shows that 40% of the respondents strongly agree that product quality influences consumer
buying behaviour, 30% of the respondents agree that product quality influences consumer
buying behaviour, 20% of the respondents disagree that product quality influences consumer
buying behaviour and 20% of the respondents strongly disagree that product quality
influences consumer buying behaviour.

These findings show that product benefits influence consumer buying behaviour. Consumers
are more likely to start using a product after becoming aware of the quality of the products
through advertisements.

6) Influence of Product Ingredients on Consumer Buying Behavior

Strongly Agree Disag Strongly TOTAL

agree ree disagree

No. of 42 4 2 2 50
respondents
Percentage 84 8 4 4 100
(%)

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Table 4.6: Product Ingredients Influence Consumer Buying Behavior

Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree

8%
4% 4%

84%

INFERENCE:
It shows that 84% of the respondents strongly agree that product ingredients definitely
influence consumer buying behavior. 8% of the respondents also agree with the same. But
4% of the respondents disagree with the fact that product ingredients influence consumer
buying behavior. 4% of the respondents also strongly disagree with the same.

These findings show that product ingredients influence consumer buying behavior. This
shows that customers are more likely to start using a product after becoming aware of the
ingredients of the products through advertisements.

7) Influence of Product Price on Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 37 13 50

Percentage (%) 74 26 100

51 | P a g e
Fig 4.7: Product Price Influences Consumer Buying Behavior

Number of Respondents
Agree Disagree
26%

74%

INFERENCE
It shows that 74% of the respondents agree that product price influence consumer buying
behavior and 26% of the respondents disagree that product price influence consumer buying
behavior.

These findings show that product price influence consumer buying behavior. This shows that
consumers are more likely to make the decision to purchase a product after becoming aware
of the price of the product through advertising.

8) Influence of Models Used in Advertisement on Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 47 3 50

Percentage (%) 94 6 100

4.8: Models Used Fig in Advertisement Influences Consumer Buying Behavior

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 Number of Respondents
Agree Disagree
6%

94%

INFERENCE
It shows that 94% of the respondents agree that models used in advertisements influence
consumer buying behavior and 6% of the respondents disagree that models used in
advertisements influence consumer buying behavior.

These findings show that models used in advertisement influence consumer buying behavior
and that consumers are more likely to buy a product after being influenced by the model used
in the advertisements.

9) Influence of Brand Name on Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 37 13 50

Percentage (%) 74 26 100

53 | P a g e
Fig 4.9: Brand Name Influences Consumer Buying Behavior

Number of Respondents
Agree Disagree

26%

74%

INFERENCE
It shows that 74% of the respondents agree that brand name influences consumer buying
behaviour and 26% of the respondents disagree that brand name influences consumer buying
behaviour.

These findings show that brand name influence consumer buying behaviour. This means
consumers are more likely to make the decision to buy a product based on the name of the
brand as seen in advertisements.

10) Influence of Product Color on Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 10 40 50

Percentage (%) 20 80 100

54 | P a g e
Fig 4.10: Product Color Influence Consumer Buying Behavior

Number of Respondents
Agree Disagree

20%

80%

INFERENCE
This shows that 20% of the respondents agree that product color influences consumer buying
behavior and 80% of the respondents disagree that product color influences consumer buying
behavior.

These findings show that product color does not influence consumer buying behavior. This
means that some consumers are likely to be influenced to purchase a particular product due to
their color preferences or affiliation with a particular color. But most of the consumers are
not really concerned about the color of the product.

4.3 FINDINGS

1) Majority of respondents are aware of advertising strategies used in advertising Forever

Living products. With this regard, the Forever Living customers are well aware of the various
products and services they are buying and they make informed decisions before purchasing.

2) Many of the respondents have vast experience in the cosmetics industry and this enhances
their ability to perform well in their Forever Living cosmetics business. This means, the more
experienced customers are with using Forever Living consumer products, the more likely
they are to be influenced by advertisements when making their purchasing decisions.

55 | P a g e
3) The respondents were of the opinion that advertising enables consumers to find out various
information about the cosmetics products including where the product was made, ingredients
of the products, quality of the products and the benefits of using the product.

4) These findings suggest that advertising helps to influence consumer buying behavior by
making the consumer want to use Forever Living cosmetics products instead of other
cosmetics products. Fist time users of Forever Living cosmetics products are more likely to
be influenced by to start using Forever Living products after seeing advertisements.

5) Consumers are more likely to start using a product after becoming aware of the quality of
the products through advertisements.

6) Customers are more likely to start using a product after becoming aware of the ingredients
of the products through advertisements.

7) Consumers are more likely to make the decision to purchase a product after becoming
aware of the price of the product through advertising.

8) Models used in advertisement influence consumer buying behavior and that consumers are
more likely to buy a product after being influenced by the model used in the advertisements.

9) Consumers are more likely to make the decision to buy a product based on the name of the
brand as seen in advertisements.

10) Some consumers are likely to be influenced to purchase a particular product due to their
color preferences or affiliation with a particular color. But most of the consumers are not
really concerned about the color of the product.

11) Women engage more of forever living products business.

12) Advertising of Forever living products has been outlined as the most significant factors
by respondents. Integrated marketing communication mix(promotional mix) elements played
a key in consumers adoption and products knowledge, this includes special events and word
of mouth which carried majority percentages on its effectiveness on consumers production
knowledge and adoption, followed by magazine advertising, use of social media such as
facebook, DVD advertising, web based and T-shirts print outs advertising.

56 | P a g e
13) Consumers purchasing decisions on buying forever living products is determined by
Marketing Communication model such as AIDA model, whereby advertisement creates
attention, arouse interests, creates desire and draws attention to the consumers.

57 | P a g e
 CHAPTER

CONCLUSION

5.1 INTRODUCTION

This chapter will provide a summary of the findings that were presented in the previous
chapters. It will examine the key findings from the literature that has been reviewed and
evaluate the implications that can be made from it.

5.2 SUMMARY OF FINDINGS

58 | P a g e
Social media has become an important part of many businesses marketing strategies because
consumers have reduced their use of traditional media and have adopted social media instead
(Quinones 2012). As the amount of people using social media has increased largely, brands
have moved towards adopting social media as their main marketing platform. This is because,
as research suggested, people no longer look to newspapers and magazines for their
information, they now use social media to build up their knowledge base.

From the research study, some interesting results were found about the use of social media
and the effects it has on both the business and the consumers.

The research implied that by using social media, the amount of power increases significantly
within the consumers. Social media allows consumers to access blogs and various other
networks to see what other people are saying about the brand rather than what the brand is
saying themselves. The research found that a sense of trust is built up between consumers on
social networks and they would have more trust in recommendations from other individuals
rather than being told what to do by the brand. Furthermore, with the emergence of social
media, brands are no longer in total control of what is being said about the brand and the
image that is being created about them. People write about the brand and this is what is being
used to build up the brand image. This would suggest a lack of effectiveness of social media
as a marketing tool as the brand are not as in control as they are when using traditional
marketing methods.

From the research, it can be concluded that social media is effective in reaching a large
number of people on a global level and has definitely over-taken traditional marketing
methods. However, it would seem that social media gives a large amount of power to the
consumer and this somewhat hinders the marketing plans of the brand. This suggests that
social media should not be underestimated and seen as an easy marketing option and if a
company choose to use it as a part of their marketing strategy, they should put the same
amount of focus on it as they would have with traditional methods. If companies do not
implement it properly and ensure that they are regularly updating and checking the content,
they risk the brand image being hindered by third party comments.

5.3 IMPLICATIONS

59 | P a g e
The results from the research provide information that can be off use to managers in the
future in regards to social media marketing.

Social media allows managers to reach a larger audience, however in order to turn social
media into an effective method of marketing, managers should keep social media sites up to
date and active as consumers regularly check up on social networks especially when making
purchasing decisions. Additionally, companies should encourage customers to post positive
feedback to social media as consumers look to other when making their decisions. This
would significantly increase the effectiveness of social media as a marketing tool.

In addition, managers should aim to build up a relationship with their customers and this can
be done more easily over social media, doing this will enable managers to turn consumers
into lifetime customers who are dedicated to their brand. By building up these relationships, it
will also help brands to gain useful feedback and make changes to their products that will be
beneficial to the consumer. It will also keep the brand involved throughout the consumer
purchasing process and help them to influence decisions that are being made in regards to
their products.

The study focused on the cosmetic industry, particularly on females; therefore, future
research could be conducted with a focus on males in the same industry or a specific age
range. Furthermore, the research was mainly based on findings from USA and Europe;
further research could be conducted in other countries to assess whether culture has an
influence on the effectiveness on social media marketing. Also, the focus could be on another
industry area as it may be found that social media is not suitable for all industries.

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