Rise of Social Media Marketing

Chapter 1 Introduction

1.0 Background

Social Media Marketing (SMM) has emerged as one of the leading platforms through which businesses can promote their products and services (Hoffman & Marek, 2010). Considering the latest developments in the field of digital technologies and digital marketing, the use of SMM has increased by a considerable margin. Extensive reach among the target customers is one of the main reasons for the explosive success of the SMM as a primary tool for marketing (Kim & Eunju, 2012). A key proponent for the growth of social media marketing is globalisation. With an increasing demand for interconnectedness and an increase in the use and consumption of information and communication, social media emerged as a critical platform that could satisfy all the related parties. An increasing number of people are using social media platforms like Facebook, YouTube and Instagram to search for different products or services (Saravanakumar, 2012). Even, these platforms have developed their marketplaces to enable people to buy and sell through them.

1.1 Problem

As social media has become increasingly prevalent in the modern world, there is almost no sector or industry which has been left untouched by it (De, Sonja, & Peter, 2012). Same can be observed with the hotel and restaurant services sector as well. Social media has made it simpler for hotels and restaurant services-based firms to operate and provide high-quality services to the customers (Erdoğmuş & Mesut, 2012). However, one of the aspects that have largely been left untouched by previous researchers is that of supply and demand. Although social media affects all areas of operations of the sector, not many studies have been carried out that highlight and evaluate the impact of SMM on supply and demand for hotel and restaurant services in the UK. In the current study, the researcher will explore how SMM has influenced the supply and demand for the food and beverages sector.

1.2 Aim and Objectives

The aim of this study is “To Find Out the Influence of Social Media Marketing on Supply and Demand for Hotel and Restaurant Services in the UK”. To achieve this aim, the following objectives will have to be fulfilled:

To explore the use of social media marketing.

To identify key performance indicators for SMEs in the food and beverage industry.

To find out various social media marketing techniques and their impact on the food and beverage industry.

To determine the change in demand for hotel and restaurants services in the UK attributed to by social media marketing.

1.3 Research Questions

Fulfilling the aim and objectives presented above will require answering the following research questions:

What are the uses of social media marketing?

In the food and beverage industry, what kind of key performance indicators are used for social media marketing?

How the various techniques of social media marketing influence the food and beverage industry?

How has social media marketing brought about a change in demand for hotel and restaurant services in the UK?

Chapter 2 Literature Review

2.0 Introduction

In any research study, the section of the literature review holds significant importance (Mackey & Susan, 2015). This section enables the researcher to explore their understanding of the topic and also help the readers to understand the subject matter in a better and more effective manner. In this section, the researcher provides a critical and thorough analysis of different past studies that have been carried out on the research topic. Through the literature review chapter, the researcher provides a critical analysis and overview of the subject matter and aid in the understanding of the researcher and readers.

2.1 Concept of Social Media Marketing

Social media marketing (SMM) is one of the primary forms of marketing methods used by companies. It is considered as one of the leading and highly effective techniques of digital marketing. The primary goal of SMM is to produce and present such content that can be easily understood by the readers. According to Felix, Philipp, & Chris (2017), SMM content is one of the effective ways through which companies can engage with their target customers. Social media marketing provides companies with a significant amount of exposure. In view of Leung, Billy, & Kurt (2015), social media has evolved so much so that it has empowered the customers. It provides companies with an immense reach in the target market. Due to this reason, companies use this form of marketing more than traditional approaches. In their study, Dwivedi, Kawaljeet, & Hsin (2015) found that social media marketing, because of its significant reach among the target customers is the preferred means of communication for companies, regardless of the market or industry that they may be a part of. According to Alalwan & Nripendra (2017), this is especially true for small and medium-sized enterprises. Since these organisations operate at a very small scale in comparison to larger enterprises, engaging with the customer is of utmost importance to them. They get such ability through social media marketing methods and techniques.

2.2 Uses of Social Media Marketing

Today, social media marketing is the primary tool of marketing used by companies. For many organisations it is the key through which they can build better relations with the target customers and also engage with them. Järvinen, Aarne, & Heikki (2012) stated in their study that SMM helps business, in particular, SMEs, to grow their operations and build better relations with the customers. Since most customers, i.e. the people, are on social media, SMEs need to use social media channels in order to reach out to their customers. This is one of the essential uses of SMM for small and medium-sized enterprises. Hennig-Thurau & Charles (2013), in their study, evaluated the role of social media in the normal marketing function. They found with development in technologies; social media marketing is emerging as a highly reliable source of marketing for the SMEs. Another use of SMM, according to Clark & Joanna (2013), is that it helps companies to access a wide variety of data about the customers. It includes the likes of information about their shopping behaviour and patterns, likes and dislikes and many others. Based on such information, the SMEs can take appropriate decisions and ensure that the firm achieves its goals and objectives.

2.3 Key Performance Indicators (KPIs) in the Food and Beverages Sector

Measuring performance and analysing it is very important for businesses. Companies can gain much valuable information about their performance and the areas that can be improved. One of the main KPIs for the food and beverage sector is revenue per available seat hour (RevPASH). This KPI tells about revenue earned by the restaurant per available seat per hour (Wadongo, Edwin, & Oscar, 2010). For maximising revenue, restaurants and other forms of food and beverage organisations must increase their RevPASH, which would mean that the business should remain full at all times so that every seat in the restaurant can generate the maximum amount of revenue. Measurement of KPIs can enable these businesses to obtain more information about the operations. Based on such information, the management can then take appropriate decisions and thereby enable the organisation to achieve its goals and objectives. According to Teng & Jeou-Shyan (2012) and Kala (2014), the food and beverages market is highly competitive, which means that it is not easy for a food and beverage organisation to fulfil its KPIs all the time. On this basis, it may be said that such organisations might not be able to maximise their revenues. The KPIs should be developed, keeping in mind the current market trends, customer demands and state or level competition in the industry.

2.4 Social Media Marketing Techniques in Food and Beverages Sector

It is a well-known fact that social media marketing is one of the fast-emerging tools of marketing through which companies can reach out to their customers and develop and maintain healthy relations with them. According to Freeman & Bridget (2014), the best and highly effective method of social media marketing is to embed it directly into the firms’ marketing strategy. This means that the management has to link SMM techniques and tools with every other form of marketing method used by the firm. Herein, the management needs to link the other marketing functions with that of the SMM techniques (Kelly & Stefanie, 2015). This way, the company maintain similarity in all its marketing efforts and still be able to develop healthy relations with the target customers.

CHAPTER 3 RESEARCH METHODOLOGY

3.0 Introduction

In any research investigation, the role of the research methodology chapter is crucial. Herein the researcher discusses various tools and methods that would be used in conducting the study (Flick, 2015). Such knowledge can be very crucial for the researcher and would aid in carrying out the research work in a better and effective manner. There are various types of tools, methods and techniques that can be used in conducting a research investigation. Due to this reason, it is all the more important for a researcher to very carefully select the right methods. A mistake can adversely influence the whole research process.

3.1 Research Philosophy

It is related to the way data about a research phenomenon is collected. For any research work, the role of a well-defined and developed philosophy is imperative. It informs the readers as well as the researcher about the way(s) in which data about the topic should be selected. There are two main types of philosophies – interpretivism and positivism (Robson, 2011). In the current research interpretivism, philosophy will be used. The main reason for selecting this philosophy is that it would help in thoroughly analysing the impact of SMM on supply and demand for hotel and restaurant services. In this philosophy, the researcher will use a qualitative design that will be based on conducting interviews with staff at different food and beverage organisations in the UK. This will help in collecting the necessary data effectively and ensuring that the study is carried out correctly.

3.2 Research Approach

Research approach can be termed as the series of steps that need to be taken in order to conduct the study successfully and effectively. In any research investigation, the role of a research approach is crucial. Lather & Elizabeth (2013) defined the research approach as a plan and procedure that consists of different steps and stages that detail the processes of data collection, analysis and interpretation. There are two primary types of approaches – deductive and inductive. While the deductive approach focuses on testing the validity of available assumptions; the inductive approach contributes to the emergence of new theories and generalisations (Ledford & David, 2018). In the current study, the inductive approach will be used. It begins with a detailed observation of the target population and environment to identify and understand different aspects. Then the researcher will move towards general ideas and concepts about the research topic and then provide a detailed analysis, relevant to the current research topic.

3.3 Sampling

Sampling is the process of selecting specific individuals who can represent the entire target population and can provide relevant information about the research topic. In this study, a simple stratified sampling strategy will be used (Taylor, Bogdan, & Marjorie, 2015). The main reason for selecting this approach is that it would enable the researcher to focus on individuals, only with specific qualities and traits. Herein, business managers with at least three years’ experience in food and beverage organisations in the UK will be contacted. The total sample size here will be 50 such business managers.

3.4 Data Collection

As the name suggests, this section outlines the processes and methods that are used to collect data about the research topic (Novikov & Dmitry, 2013). In the current study, both primary and secondary sources for collecting the data will be used. While the primary data will be collected through the technique of interview of business managers of food and beverage organisations in the UK; secondary data will be collected by accessing past journals, online articles and books on the subject matter.

3.5 Data Analysis

In the current study, the approach of thematic analysis will be used. The main reason for selecting this method for analysing the data is that it would provide a thorough and detailed examination of the subject matter (Wiek & Daniel, 2016). Thereby it would also inform understanding of the researcher as well as the readers.

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