The Impact of Social Media Marketing on Consumers’ Brand Awareness in Ethiopia

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Date

2014-06

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Publisher

Addis Ababa University

Abstract

In this technologically advanced era, it is surprising to see that how international companies are taking advantage of the internet. Internet has a significant impact on companies marketing campaigns. Social media platforms such as Facebook, Twitter, LinkedIn, You Tube and Google+ have changed the way companies market their products and services. Social media has become an integral part of their promotion mix and has transformed the way companies interact with customers. It is a new field of research and a literature review reveals that not many studies have been undertaken specially in Ethiopian context. There are few studies which have been carried out without much scientific evidences, which have concluded that due to emergence of social media, the traditional advertising has diminished. Nevertheless the use of social media marketing in Ethiopia is at its infant stage. However, the current situation may not extend for long due to the fast growing usage of social media platforms, fast growth of internet penetration and the need for companies to participate in the globalized world in order to be competitive with international companies and to benefit out of this astounding technology. The purpose of this research paper has been to look at how social media can create brand awareness and its use in Ethiopia. This study is of an exploratory and descriptive nature whose primary objective is to provide insight into a new marketing phenomenon. A combination of both quantitative and qualitative method was used. It has been possible to withdraw necessary primary and secondary data by conducting an online survey and expert interview and also by referring related literatures respectively. A combination of structured on line survey questionnaire and structured interview is conducted to collect the required information. Both primary and secondary methods were used to gather data to attain best possible outcome of the research’s effort. The size of the population for this study is unknown as social media networking sites are dynamic and complex and they are impossible to count given that the number of members increases on a daily basis. Therefore, the researcher used the sample size recommended for unknown population by Corbetta (2003) which is 385. However, the researcher distributed online questionnaires to 500 respondents in order to increase the response rate. viii Convenient and snow-ball non-probability sampling method were employed to conduct the online survey and expert non-probability sampling technique was used to interview experts. The data collected using the structured online survey questionnaire via a link https://adobeformscentral.com/?f=x3MvHdh1gSo0flJzC2L9ag was analyzed descriptively using adobeformescentral.com and the results were presented in different forms of graphical and tabular representations The finding of this research paper indicates that most consumers pay attention to advertisements recommended and shared by friends and contacts on social media networks rather than the direct information provided or advertisement campaign made by companies. Recommendation of others which is known as electronic word of mouth is considered as the most reliable source of information to influence consumers’ perception about products and services and half of the consumers buy products based on the information they acquire from social media networks. On the other hand, companies are using social media marketing specially to reach their international customers, to create awareness of their brand and to improve their brand image. Nevertheless, they are facing several challenges which hinder the smooth application of social media marketing campaign. However, most local companies use other traditional forms of promotional channels most such as TV and radio advertisements. The use of social media marketing nowadays is becoming very popular worldwide and it has changed the relationship between customers and business and this effect will gradually continue to evolve in Ethiopia as new media infuses the culture and society. Therefore, the research suggested that local companies should use social media network to present their brands with enormous reach, endless communication possibilities and with a very limited promotion cost and grab the possible opportunities of exploiting the brand building potential through the richest and fastest communication form available. However, Social Media as a form of marketing will present a whole new phase challenges. Therefore, companies need to develop their marketing strategy with special care in order to minimize the risk and challenges of online branding.

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Keywords

internet, marketing campaigns, Social media platforms

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