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KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT (KUSOM)

End Term Project Report



Social Media Marketing




Submitted To:
Sandip Timsina





Submitted By:

Prajol Joshi (12114)
Vivek Dhakal
Resha Neupane (12123)
Shrizana Shrestha



Date: 22
th
May, 2013


ACKNOWLEDGEMENT
We are thankful to Kathmandu University School of Management (KUSOM) for giving us this
opportunity to apply our knowledge gained throughout the Management Information System
(MIS) course into this final project.
Our utmost and sincere thanks go to our course instructor Mr. Sandip Timsina for his
continuous guidance, knowledge and experience sharing ability along with his interactive and
discussion based self-motivating classroom environment that made our learning process fruitful.
We are indebted to all those authors and scholars whose works have directly or indirectly
supported us in the preparation of this report.

Table of Contents

1) Executive Summary: ............................................................................................................. 4
2) Introduction of Social Media Marketing: ........................................................................... 4
3) Literature Review: ................................................................................................................. 5
4) Discussion: .............................................................................................................................. 7
4.1) Social Media Tools & Platforms ......................................................................................... 7
4.2) Benefits of Social Media Marketing:................................................................................. 11
4.3) Overall market produced by social media ......................................................................... 13
4.4) Industry trend:.................................................................................................................... 13
4.5) Points to remember before participating in Social media marketing: ............................... 14
5) Further development:.......................................................................................................... 17
6) Conclusion: ........................................................................................................................... 17
7) Recommendation: ................................................................................................................ 18
Bibliography ................................................................................................................................. 20


1) Executive Summary:
This report intends to understand in brief about the social media marketing. Social media
marketing in simple terms, means building a business through many different media, like viral
videos and blogs, because these gives a exposure to the companies. Social media marketing is a
very broad term so, companies or institutions before using it must determine what is social media
marketing for them, how are they going to use it and the results they expect. Generally it is
believed that investment in social media marketing is for long term, as its result is only shown
after few months. The companies cant expect to get results as soon as they use social media.
The research showed that the three major social media sites used by the companies for marketing
includes Facebook, Twitter and Blogs but, the companies indicated that they want to increase the
use of Facebook, Twitter and Youtube in future.
There are different platforms that could be used for social media marketing. This form of
marketing was developed and used extensively since 2003 though; the companies started the use
of digital media for marketing in 1960s. It has been claimed that the low investment in social
media marketing could yield a very high results but, they must be used very sensitively as it
could backfire to the company and affect the brand image. We have concluded that social media
is a great way to drive repeat business and to attract new customers. It is the way to use the
technology to build relationships, drive repeat business and attract new customers through
friends sharing with friends. A research revealed that 75% of people are somewhat or highly
likely to share content they like online with friends, co-workers or family 49% do this at least
weekly.
2) Introduction of Social Media Marketing:
Social media marketing refers to the process of gaining website traffic or attention through social
media site. Social media marketing programs usually center on efforts to create content that
attracts attention and encourage readers to share it with their social networks. A corporate
message spreads from user to user and presumably resonates because it appears to come from a
trusted, third-party source, as opposed to the brand or company itself. Hence, this form of
marketing is driven by word-of-mouth, meaning it results in earned media rather than paid
media. Social media is a platform that is easily accessible to anyone with internet access.
Increased communication for organization fosters brand awareness and often, improved
customer service. Additionally, social media serves as a relatively inexpensive platform for
organizations to implement marketing campaigns.
For effective use of social media, the business must build a mindset to use social media as
channels to connect, engage, share and build trust with your current and prospective future
customers. The social media form of marketing has been a new hype or innovations in sector of
marketing. Many big companies and small companies have proved its significance by expanding
its customer base across the globe through the use of social media.
But, if we talk in the context of Nepal, we might not see so much use of social media by the
companies. We can assume reasonably that companies of Nepal have not yet recognized the
importance of use of social media for increased customer satisfaction. However, if we observe
the recent trends, then, we can see that companies here are entering into era of social media
marketing through officially creating their own facebook page, twitter links. The companies have
started linking with the customers through their own social media sites. Companies are
increasingly passing their new updates, promotions and several other marketing tools through the
social media sites. Before few years, we couldnt see any presence of Nepali companies in social
media but, today most of the big companies like Ncell, NTC, Surya Nepal, Springwood etc. has
started entering into era of social media marketing.
3) Literature Review:
Social media marketing provides the companies with a way to connect with their customers. It
provides a platform that is easily accessible to anyone with internet access. Increased
communication for organizations with current and potential customers through social media
fosters brand awareness and often, improved customer service. It serves as a relatively
inexpensive platform for organizations to implement their marketing campaigns. These social
media sites like Friendster begin cropping up extensively in the early part of 21
st
century. The
social media sites showed its existence through Friendster in 2002. After that, other site like
MySpace was created in 2003, LinkedIn in 2003, Facebook in 2004, Twitter in 2006 and this
trend has been continuing ever since.
The Marketing concept started with Printed Advertisements followed by several other
marketing innovations like Billboards, Television Ads, Telemarketing and Magazines. But, From
1980s a new digital age started emerging which changed the entire industry. The marketing
changed its pace to the use of computers, mobiles, newspapers, Internet & E-mail, Search
marketing, search engine optimization, and blogging. Since 2003-2004, a new trend of marketing
through the use of social media sites evolved with the introduction of sites like LinkedIn,
MySpace and Facebook. Though, these sites most definitely propelled social media to new
heights, the truth is they dont represent the original social networking platforms. The reality is
that e-mail and bulletin board services (BBS) should be credited with the foundation to the social
media revolution of 2000s. Prior to this, we didnt have the digital culture, or mindset to
communicate through online services (Borges, 2012).
The importance of social media marketing increased further after the implementation of the
National Do not call Registry implemented in USA. There are 200 million Americans in this
list who dont want to receive any unnecessary calls for marketing thus, restricting the
companies to call the consumers for selling their product.
Today, young people of age 13-24 spend more than 13.7 hours per day online thus, it use of
social media marketing is very important for companies. In addition, the cost per lead from this
marketing is 60% lower than traditional marketing systems. Large corporations arent the only
businesses that can take advantage of online tools to drive real-world success. Even Small
businesses are utilizing the social media sites to connect their companies with the customers.
Facebook has recently been declared the virtual country and is third largest country in terms of
its population.
Since 2011, social media has been defined as social business which deals with B2H (business to
human) and, other group of people defines it as H2H (human to human). Business organizations
before using the social media networks must understand the importance of employees
participation in engaging with customers, other employees, suppliers, partners, their local
community and even competitors through digital channels. A true social business understands
the importance of authentic engagement with the community. A research revealed that 75% of
people are somewhat or highly likely to share content they like online with friends, co-workers
or family 49% do this at least weekly (Mendelsohn & McKenna, 2010).
4) Discussion:
4.1) Social Media Tools & Platforms
New web technologies have made it easy for anyone to create and most importantly, distribute
their own content. By the introduction of Web 2.0, people can now interact directly with each
other and to the mass and exchange information in the virtual community and networks. The
term Web 2.0 was first coined by Tim OReilly in 2004. Web 2.0 is the second generation in
web-based services, which includes collaborative publishing sites like Facebook and Twitter. It
uses the internet as a platform for social media through forums, blogs, RSS feeds, wikis and
social networks (Habib, 2012). People make their own interesting content and distribute it
socially on the web. This is how they make money and this is how social media is gaining a huge
part of market all around the world.
Social media is just a platform which creates opportunities for people to share information on the
web. But this information is created and shared in social media by the use of numerous social
media tools that people have created. Ablog post, a tweet, a YouTube video, etc. can be regarded
as social media tools or the forms of social media that can be used to create and share
information.
Social media comes in many forms. Here we focus on six of the most popular social media tools
used for marketing by people around the world. Each of these categories has unique features that
appeal to different people in the social media sphere.
1. Blogging
A blog is a type of content management system (CMS) that makes it easy for anyone to
publish short articles called posts (Zarrella, 2010). It is usually maintained by individuals or
groups, and more recently, businesses that offer commentary and ideas for a larger audience. A
typical blog features an entry, often sprinkled with graphics and video, followed by comments by
readers. The popularity of blogging has increased significantly now that virtually anyone with
internet access can easily set up a blog with any of the numerous free tools available (Safko&
Brake, 2009). Blog software provides a variety of social features, including comments,
trackbacks and subscriptions that make it perfect for marketing purposes.
Websites and blogs are the most powerful tools for social media marketing compared to other
networking tools as it can be integrated with nearly every other tool and platform. It provides
many other facilities in addition to just marketing our business. It helps us communicate with
other clients in case we have any problems. Every company with a website should have a blog
that speaks to its current and potential customers as real people.
Blogs can be set up on a variety of platforms. Some are free while others are hosted on a
centralized server and some are full-fledged paid solutions that boast of security updates. Popular
blogging platforms include WordPress (http://wordpress.org), Movable Type (http://
www.movabletype.com), and Googles Blogger (http://www.blogger.com)(Weinberg, 2009).
2. Microblogs (Twitter)
Microblog is a form of blog in which posts can have only a limited length; for instance, Twitter
updates which can contain only 140 characters. This limitation has spawned a set of features,
protocols, and behavior that are entirely unique to the medium. It facilitates conversations while
enforcing conciseness. Microblogging is generally useful to share links to interesting sites, make
announcements, provide updates while at events, etc.
Twitter is a free micro blogging service that allows users to communicate with one another using
short text-based messages. It provides robust tools for sending and receiving updates on a variety
of devices and through a plethora of tools. It started taking off in terms of popularity in the first
half of 2009 and now has become more mainstream than other similar social media tools.
Companies are using Twitter to tap into business prospects, influencers, and customers.
Other examples of microblogging platforms are Jaiku (http://www.jaiku.com), which functions
similarly to Twitter and Yammer (http://www.yammer.com), an enterprise platform that
facilitates internal communication.
3. Social Networks
A social network is a website where people connect with friends, both those they know offline
and those who are online-only buddies. They are profile-based sitesthat encourage users to meet
and initiate relationships with one another. Most social networks have the same basic feature: a
personal profile, the ability to add friends, photo albums, and a variety of ways to interact with
friends and their content.
Social networking sites are a hot topic for marketers, as they present a number of opportunities
for interacting with customers, including via plug-in applications, groups, and fan pages. Popular
social networks have a broad appeal and gather millions of users. Some current examples are
Facebook (http://www.facebook.com), a general-purpose social network that appeals to the
masses; MySpace (http://www.myspace.com), another general-purpose social network that also
targets bands promoting their music; and LinkedIn (http://www.linkedin.com), a social network
for all types of professionals.
These social networks are powerful for message broadcasting and for brand awareness. Because
these sites inherently connect people with similar backgrounds and interests, hub pages dedicated
to products and services are often invoked either by fans or by marketers/businesses out of a
desire to create strong associations between individuals and products. On Facebook, the two
predominant marketing tools are the applications and Facebook Page.
4. Media-sharing
Media-sharing sites empower users to create and upload multimedia content: videos, images,
podcasts, and other forms of media (Zarrella, 2010). With the advent of advanced technology
and high bandwidth Internet connections, media-sharing sites have become extremely popular.
Marketers can create videos with very little expertise and upload them to YouTube to reach
millions of users. A common feature of media-sharing sites is the use of a tag with a users
content, which makes it easier for people to find the content on the web.
Some of the recognized platforms of media-sharing are sites are:
i. Video Sharing Site YouTube, Vimeo, Dailymotion
ii. Photo Sharing Site Flickr, Instagram
iii. Presentation Sharing Site Slideshare

5. Social News and Bookmarking Sites
Social news sites are websites that allow users to submit and vote on content from around the
Web. When users find content that interests them such as an article, video, image, etc., they can
submit the content to a social news site. The site serves as a filter and drives most voted content
to a top position on the site or the front page. This voting activity helps isolate the most
interesting links.It relies on the collective to vote on news stories that individuals think should be
exposed to a larger audience. Marketers hence use these sites to generate buzz and traffic around
specific campaigns or articles.
Some of the common and most popular social news sites are Digg(http://www.digg.com), which
is most popular for sharing information socially;Reddit(http://www.reddit.com), which enables
users to create their own categories in which to submit stories, Mixx, etc.
Social Bookmarking sites are similar to social news sites but the value presented to users is
focused on allowing them to collect and store interesting links that they find and wish to revisit.
Most bookmarking sites count the number of times a piece of content has been stored and
interpret these as votes to highlight the most valuable links.These sites also lets user discover
new content saved by ones peers.
The most popular social bookmarking sites are Delicious (http://www.delicious.com), a social
bookmarking giant owned by Yahoo! and StumbleUpon(http://www.stumbleupon.com), a site
which allows users to discover content according to their interests using a toolbar as well
recommend preferred sites by bookmarking.
6. Social rating and review Sites
Rating and Review sites are web-based services that help people find great local businesses.
People post their opinions and also come to discover a product or service in these sites. These
sites normally use Web 2.0 techniques to gather review from site users or may employ
professional writers to author reviews on the topic of concern for the site. Its important to listen
and respond to what people say about our business on these sites. Positive reviews can drive
sales while negative reviews may hamper the overall business.
Further research in these areas may yield beneficial ideas for social media marketing.
Nevertheless, companies may derive greatest benefit from focusing on the forms of social media
presented here, such as social networks, because of their enormous popularity.
Almost every company will have a different combination of customers, objectives, strategies and
technologies. Overall approaches to social media marketing are and should be different.
Nevertheless, every company should strive to integrate their message across all social media
channels to achieve a coherent and successful strategy. Zarrella (2010) notes that users of one
kind of social media are likely to be users of other types; it makes sense to invite those who
interact with you on Twitter to join your page on Facebook. In a similar manner, may
companies should consider running a company blog as the central hub of their social media
marketing efforts because blogs are capable of being integrated with many other forms of social
media (Zarrella, 2010).
4.2) Benefits of Social Media Marketing:
The up surging benefits provided by the social media marketing could be highlighted by the help
of below given crucial points:
1. Increased exposure:
According to a survey done by Michael A. Stelzner in April 2012 in US, UK, Australia and
Canada, it was found that 85% of all marketers indicated that their social media efforts have
generated more exposure for their businesses. So, in real life also we could see its
implications.
2. Increased traffic:
With the ease on gathering the useful information just with the click of a mouse, many people
are having a really good time to navigate around the means of social media resulting the
increased traffic flow of all types, race, gender, income levels, age group and different
nationalities of people over the web.


3. Provides marketplace insight:
With the more and more use of tools of social media like facebook, twitter and others the
potential customers may be able to gain a good knowledge on the product offerings and
services being offered by the wide range of companies.
4. Generates lead:
It has now become quite obvious that the use of such tools is becoming the source of
competitive advantage for most of the competitive firms. They use the tools increasingly to
expand their sales, reaching a wider customer base and thus creating a good lead in volume
and amount of sales revenue and profit collection.
5. Develop loyal fans:
The public receive the accurate information on products and services from the social media
and they even made their purchase through online, saving their precious time for other more
important activities. Thus, gradually they are addicted towards following the same flow of
activities every now and then making them ultimately the loyal fans for the various
companies.
6. Improves search rankings:
Earlier before the introduction of such social media, the people have to turn the pages of
many newspapers and magazines looking for the advertisements of their preferred brands and
services but now the trend has shifted to turning to the various websites and blogs, search
engines to meet their requirements which not only fulfill their needs but also improve their
search rankings.
7. Foster business partnerships:
Since many companies see the ever increasing inflow of customers with lots of enthusiasm
and questions in their mind, now, many national and international partners are eager to
extend their hands of collaboration and cooperation with various companies providing the
products and services to the huge customer bases.
8. Reduce marketing expenses:
It is of no doubt that going online, automation reduces the cost of companies to the greater
extent and such companies are no exception yet all.
9. Improved sales:
The benefits of increasing loyal customers, improved search rankings, reduced marketing
expenses and all others have ultimately lead to the improved sales for many companies
worldwide.
4.3) Overall market produced by social media
With the increasing awareness of the latest communication and web based technologies and more
educated customers base, the companies nowadays see more business opportunities than what
they used to find few years back. The other ingredient vital to increase the access toward the use
of social media is also the ever increasing range of middle income households and their
increasing sophisticated living standards. Consequently, they rather going to physical stores to
know about the products, started loving to go online and gather information along with having
some chit chats through the use of facebook, twitter and yahoo chats with their spouse,
boyfriends, girl friends and others simultaneously without wasting much of their time.
Due to these factors and several others many people start believing the social media and now it
has almost become one of their basic requirements without which their life seems to be
complicated and troublesome in one way or the other. Therefore, it is of no doubt that due to
many of the advantages that we have seen in the above head, the popularity of it is growing
along with peoples hi-fi living standards like going for online shopping through Thamel.com,
esewa.com, amazon.com, etc. the use of social media seems to have increase the market to a
greater extent enabling many companies to become the market leader via various cost effective
approaches.
4.4) Industry trend:
Our digital world has had its starts and stops, so prediction can be difficult on new trends of
marketing. Nonetheless, many of the pundits agree that we will move away from television-
centric marketing practices by 2016. Television has been the center of consumer marketing and
communication plans since its inception. Every consumer in the world has spent considerable
amount of time watching television. Advertisers started their ad campaigns with a TV spot, then
added direct marketing, street marketing, newspapers and radio but, now they have turned to
Internet. Advertisers will be driven by a marketing and media strategy that places digital
interactivity at the center. Other media will be added to supplement the digitally-centric strategy.
Digital was an add-on in 2000 and an important element in 2010, but it will be foremost in 2016.
It is easy to see why. Younger consumers spend nearly every minute on interactive platforms
iPads, PDAs, smart phones. They organize their lives and communicate their whereabouts on
portables. They are already digitally centric. Marketing in 2016 will focus on the digital and
interactive or these consumers will not be reached.
An Industry report published in 2012 revealed that 94% of survey participants indicated that they
were employing social media for marketing purposes (STELZNER, 2012). It also revealed that
most of the companies preferably used Facebook as social media tool to market their product
followed by Twitter, LinkedIn and Youtube. Though, most of the companies were using
Facebook as social media tools, most of them indicated that they plan on increasing their use of
Youtube/Video. Further, it was revealed that currently, most of the marketers are not outsourcing
their social media activities but, they accepted that there exists possibility of outsourcing social
media activities. The number of firms outsourcing their social media activities has doubled in a
period of 1 year since 2010 thus; there is high possibility that more and more firms will start
outsourcing their social media activities in coming years.
Though, social media marketing offers a huge potential for companies to improve their brand
image and customer service but, the industry report revealed that the companies dont want to
take high risk of marketing failure thus, they would not decrease the non-social media marketing
in future. The companies would take the social media marketing and non-social media marketing
simultaneously.
4.5) Points to remember before participating in Social media marketing:
Social media marketing is an important aspect, that offers both benefits to the companies but,
involves a huge potential risk also so, companies should consider several points before entering
into social media marketing. It is not just to have a profile on every social network, nor is it to be
present in the area of Social Media and shed deals all the time. This is a strong commitment to
social-shopping can become total chaos if not managed properly.
The goal of social marketing in cyberspace, it is the content delivery value that ends up in the
medium and long term as a percentage of sales from some followers or fans. It is also about
winning, love and turns a follower into a brand advocate.
Following are the important points that must be considered before actually participating in social
media marketing:
1. Define your strategy:
Set a budget work plan that will help you refine your social media campaign. The Social
Media Marketing is not an innocent act; everything must be thought out and planned. It takes
a long time and not gets large expenses.
2. Evaluate, analyze and investigate:
Start recklessly on social media can mean disaster, especially when it comes to a brand and
reputation of a product. Building an effective social strategy involves the knowledge of who
your potential client, and where is. You should also know what and how? What your
competition is doing or the best in its field.
3. Identify social networks:
These platforms are sets of tools that can contribute and respond positively to their strategy.
Social Media Marketing is all about delivering the same consistent message across the entire
spectrum of social networks more suitable for us. Link all networks becomes a triumvirate
winner of Blog, LinkedIn and Pinterest. Strategically choose depending on your product or
service and its target audience.
4. Budget:
Decide on your budget and the size of your online advertising. Use the full potential of
Google and especially Facebook advertising, but be sure to steer wisely and think about the
identification and evaluation of their goals for geographical reasons. This will help you
optimize your online advertising budget. Choose PPC (pay per click) or CPM (cost per
thousand impressions) up to you according to your basic needs of each campaign.
5. Team work:
The group that manages the social Media is an important factor to impact. You can do with
your own personal and / or find an expert to operate social networks as a Social Media
Manager or Community Manager. Keep in mind that in any case will consume an initial
investment and monthly management fees.
6. Choose influential relationships:
Have your team identify key bloggers and activists of the main social media to talk about the
topic of your interest and your industry. This task is one of the hinges on the success of your
campaign.
7. Measurements and tools:
Tools are proof of the success of campaign and those responsible for fine tuning and
adjustments in the course of a campaign. For example, should measure every month, the
increase in the number fans on Facebook or followers on Twitter, because it is an indicator of
the health of your plan. Get to know how many times the brand through the web and qualify
these comments helps refine their strategy. You should also be able to keep track of
connections and identify where it comes to traffic and social platforms. Identify prospects for
future opportunities to help develop better strategies.
8. Offline Actions:
Identify offline components will be needed to supplement their Social Marketing. Offline
actions can also mean socializing with people on the web. The world can also offer prizes and
gifts, and give them at meetings, conferences and seminars etc. Determine how these
components can improve the user experience and how relevant it is to your online marketing
plan.
9. Contents:
Urge creates a quality relevant content when writing articles, and creates multimedia content
is another important part. Be sure to set editorial standards that define consistent between
content production platforms in terms of specifics, easy to read and appropriate techniques.
Define your keywords, content channels and perform a release calendar for each social
network. Note that you must constantly and consistently create content.
10. Human Media:
Urge to remain in the human face in each stage is essential. Launch a Social Media
Marketing strategy is the construction of the Social brand presence.
In social media marketing is about "Socializing first" with a willingness to listen and the ability
to communicate clearly, and without despair, then that is humane, clear and adequate hearing in
number and quality of dialogue, conversion rates medium term is perfectly predictable, almost
any company.
5) Further development:
Total focus on customer retention rather than winning new one through quality service,
customer relationship management and strategic thinking
Incorporate Facebook and Twitter for your customers into your marketing mix and
encourage them to communicate directly.
Increase youre your website traffic by linking through other social media sites such as
linked in and YouTube.
Acknowledge the customers complain immediately and act fast to fix the problem.
A good social media marketing strategy should be about community-building, not simply
about broadcasting the message.
Furthermore increasing number of followers in social media sites can impress clients or
collaborators for further projects, and you can quickly reach a wide audience with your
articles, videos and links.
Grab readers attention on social Medias with call to action (CTA). A call to action can
help seize the moment.
YouTube lacks innovation and customization. They should alter their strategy to suit
individual requirements or specifications.
Google + should be more user friendly and interactive to tempt and persuade customers
towards their business.
A firewall mechanism should be developed by the management so that the insiders
dissatisfaction would not be revealed among the customers.
Social media should be used as word of mouth to influence and advocate the customers.
6) Conclusion:
Social media marketing leads to increased sales, increased leads, increased brand
awareness and improved communication with clients and customers.
Social media is not about selling a product; it is about selling an experience. You create
the vision and your advocate will sell it for you.
Social media helps your business to reach out to customer faster. It also builds positive
relationship and tries to manage crisis.
SMM gives you the ability to run numerous campaigns at the same time with higher
conversion rate and cost effectiveness.
Datas available in social networking site are still not utilized to optimum level.
SMM has smoothened the customer relationship through enterprise resource planning
(ERP).
SMM help in managing the information flows between and among stages in a supply
chain to maximize total supply chain effectiveness and profitability
With the numbers of users rising each day in Facebook and other social networking sales,
it is bound to bring in more customers for the business and much more promotion and
marketing making social media, the better platform for marketing
7) Recommendation:
Social media marketing should be used as a medium to connect directly with customers
and get their feedback / suggestions for improving products or services
SMM can be used to advertize upcoming events or special offers to grab the attention of
customers.
Make use of a range of social media tools which can reduce the marketing cost
Company should use SMM to improve sales and reduce overall marketing expenses
Companies should increase their investment in social media technologies as well as
services to monitor and solicit public opinion about their brand and products.
Use social media to boost the campaigns you're already running. Instead of running
standalone social campaigns, use marketing automation to amplify all your campaigns.
Make it easy to authentically share content back to social platforms, and you'll get a
social lift from campaigns you're already running.
Vary your posts. Dont just post one sort of thing on social media. Mix it up with images,
video, text, sharing other peoples links, sharing your own stuff, and having
conversations. It will generate more engagement for customers.


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