ContentServer - Asp 2
ContentServer - Asp 2
HELENA NOBRE
University of Aveiro, Aveiro, Portugal and iMarke, Research in Marketing and Strategy,
Braga, Portugal
DANIELA SILVA
University of Minho, Braga, Portugal
While the need for a social network (SN) marketing strategy has been
explored with large firms, little exploration has been undertaken to
138
Social Network Marketing Strategy and SMEs 139
H1: Small medium enterprises will benefit from the impact of WOM on
social networks.
H4: The presence of small medium enterprises in social networks will have
a direct impact on the brand familiarity of these firms to the consumer.
about the identity of the brand or product, thus helping to convert customers
into loyal advocates of the company (Burson-Marsteller, 2010). This led to
the final hypothesis.
METHODOLOGY
A qualitative approach was chosen as the best method since this methodology
appears when there is a ‘‘need to get meaning and in depth’’ (Carson, Gilmore,
Perry, & Gronhaug, 2001, p. 69). According to Neale, Thapa, and Boyce (2006)
one of the main advantages of studying the case is that this method enables
access to more detailed information compared to other methods, therefore
providing ‘‘a more complete picture’’ of what happened in that particular
‘‘context, and why.’’
The use of social networks as a management tool, particularly for small
medium enterprises, is a recent development and scientific literature remains
scarce (Gil-Or, 2010). Yin (1994) states that the exploratory multiple-case
study is an appropriate, and perhaps the best method when undertaking this
type of investigation. The multi-case analysis has several advantages as
multiple firms can indicate trends and offer insights that a single case study
is not capable of doing. Herriott and Firestone add that ‘‘evidence from
multiple cases are considered more compelling and comprehensive . . . being
being more robust’’ (Herriott & Firestone, 1983, cited in Yin, 2001, p. 68)
the study offered greater support for generalization as the four companies
represented different business sectors.
Yin (1994) notes that the case study fits in the investigation when
a ‘‘ ‘how’ or ‘why’ question is being asked about a contemporary set of events
144 H. Nobre and D. Silva
over which the investigator has little or no control’’ (Yin, 1994, p. 9). Building
on this, the researchers believe that the multi-case method is well suited for
and can be applied to investigations that have an initial exploratory hypo-
theses that can be studied and developed to provide future insights into
broader research activities. The research was designed to investigate how
social networks impact the strategy of small medium Portuguese enterprises.
The format was to analyze four cases using semi-structured interviews, and
later on elaborating a ‘‘cross-company case’’ where each company was
analyzed and compared to ascertain the expectation of patterns relating to
either social network strategic designs or outcomes.
Four small medium Portuguese enterprises were selected based on four
specific criteria:
Four SME Portuguese enterprises were selected for the multi-case study:
ACIAB, Braga Pop Hostel; Brb. Artesanato Urbano (Brb. Urban Craft), and
MARKA–Vinhos do Douro (Table 1).
The ACIAB is a business association, founded in 1911, and its goal is to
promote business development in the region providing assistance to firms
to adapt in the current market as well as providing tools to compete and
innovate. ACIAB has more than 1,000 associates (companies) in different
branches of business, from trade, industry, and services.
Braga POP Hostel is the first hostel in the city of Braga, in an early
differentiating aspect of the brand, and desires to position itself as a local
informal housing alternative that is close to the customer and youth culture.
Social Network Marketing Strategy and SMEs 145
RESULTS
Managers had different aspirations for their Facebook page (Table 2). Only
one desired to have the site expand the number of interested viewers
(ACIAB). This is an understandable goal for them, being an association
membership-based company. Two firms of the four expressed a desire to
mitigate the effects of negative WOM comments on the site. Although the
international aspects of the Internet and Facebook are widely discussed, it
is interesting that all firms desired viewers to share information about their
company and to obtain a greater fan base from the local area.
The first aspect is reflected in how WOM appears in Facebook; in the
four cases, the site seems to present itself as a means of fostering the sharing
of information about the company and a wider range of consumers’ territorial
level as well, because the companies have visitors from various parts of the
world.
The purpose of the company Facebook page varied among the firms.
The firm ACIAB had a different outcome objective than the others, being
a not–fo- profit organization whose goal was not revenue based but rather
to assist firms in the region through seminars and consulting. As such, it
was the only firm with the objective of creating a viral environment to spread
information among members about organization operations. All firms shared
the objectives of sharing information about the company and gaining local
customers. Only Urban Craft and Douro Wines felt that the Facebook page
should manage the effects of negative WOM responses (Table 2).
The objectives of the Facebook site also varied among the different
firms but each firm appeared to have a developed strategy based on the type
of firm and desired outcome of Facebook interaction (Table 3).
The outcomes of site ownership varied among the firms and three of the
four met either increased sales or membership results. Table 4 depicts the
reported benefits to the different firms coming from their Facebook page.
CONCLUSIONS
found the site increased traffic. The only common benefit of four companies
in the case research is the increased traffic on the company’s Facebook page.
Only in one case (Braga Pop Hostel) was Facebook selected as a channel of
choice for establishing relationships with customers because this media
allowed the company to interact with the client in a unique way of immedi-
acy and interactivity that no another channel provided. This was consistent
with ACIAB’s object to increase membership and awareness of their offerings
and the site did increase the number of clients. As a membership organiza-
tion they would not be involved in sales; however, the significant traffic
on ACIAB’s website seemed to successfully lead to the wider customer basis,
as well as the better company acknowledgment. Determined by ACIAB’s
business model, which targets customers directly, the number of clients is
much more essential than sales volume.
Braga Hostel did increase brand loyalty and traffic but this did not
translate into increased sales. Both Urban Craft and Douro Wines increased
knowledge, traffic, and sales. What appears to be the case with these two
firms was that the increased sales came from different customer sources.
In the case of Urban Craft, who saw increased client number, sales came
from existing and new consumers. Actually, injecting energy in either
reaching out for new or keeping existing clients can be extremely acceptable
and help a small or middle-size company to expand. In the case of Douro
Wines, however, there was not an increase in new clients, pointing to the
increase in sales to come from existing consumers buying more products
(see Table 4).
For the first formulated hypothesis—H1: Small medium enterprises will
benefit from the impact of WOM on social networks—the results suggest
these firms can benefit from the impact of WOM on social networks. WOM
presents itself as a prominent factor for the Facebook users to learn about
companies and their products through the sharing of information and the
interaction that the site enables. It must also be taken into consideration that
the sites may generate negative communications about a firm that must be
taken into account, making it necessary for firms to monitor the sites care-
fully. It was suggested that when WOM is negative it can be minimized if
the content was taken from pages quickly and=or responded to effectively.
In consideration of H2: Social networks are an important means of
enabling consumers to share information about a product=service, the results
suggest that Facebook is a privilege channel for consumers to talk about
brands and their products and services. Companies can accentuate this trend
by promoting interaction between consumers and the firm through such
activities as contests and sweepstakes on its pages. Such actions would have
the objective of increasing the number of visitors interacting with the site.
Results concerning the third hypothesis, H3: The level of com-
munication in social networks reflect the quality of the relationship
that companies have with consumers indicate that each of the selected
Social Network Marketing Strategy and SMEs 149
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