final DR Dina

Alexandria University Applied Languages Program Faculty of Arts Marketing The effect of online promotion on consumer brand preference. Presented by: Sara Hassan Kamel Supervised by Dr. Dina El Kordy. 5/6/2022 2021-2022 1

Table of Contents 1- Introduction………………………………………………………...4 2- The History of Brands………………………………………….....4 3- Consumer Preferences………………………………………………5 4- RESEARCH PROBLEM……………………………………………5 5- THE RESEARCH OBJECTIVES………………………………….6 6- INTRODUCTION OF SOCIAL MEDIA MARKETING…………6 7- INTRODUCTION OF SOCIAL MEDIA MARKETING…………6 8- SOCIAL MEDIA AND MARKETING…………………………....8 9- The characteristics of social media marketing……………………..8 10- SOCIAL MEDIA MARKETING AND THE CONSUMER PURCHASE DECISION…………………………………………9 11- Using a popular figure ……….………………………………..10 12- Benefits of Online Advertising……………………………….10 13- Disadvantages of Online Advertising……………………………10 14- Conclusion……………………………………………………….11 15- References………………………………………………………….12 2

1. Introduction: One of the most pressing issues facing businesses in recent decades has been determining how consumers will react to various items that will be employed to achieve their ultimate aim. Consumer behavior research has become a concern for marketers since it may reveal how customers choose goods and services to suit different requirements, as well as the elements that influence their decision. Because online advertising has risen significantly in the previous decade, companies are increasingly turning to it for this reason. The amount of individuals interacting and spending more time online is increasing every day. Additional gadgets (such as smartphones and televisions) can provide additional internet access. Rapid technological advancements, as well as the rise of new media and communication channels, have drastically altered the advertising industry's landscape. However, as people become more reliant on the internet as a primary source of information and communication, it has become a popular advertising platform. In 1994, Hot Wire sold its first banner ad on its own website, and since then, internet advertising has expanded to become a critical role in ensuring that companies receive fair returns for their products and services. 2. The History of Brands: Marketing is not a new concept for brands. The ancient Egyptian brick-makers were the first to adopt the concept of the brand, drawing symbols on bricks to identify them. Other examples of the use of brands may be found in the Greek and Roman eras when retailers used symbols to identify their businesses due to illiteracy. Furthermore, throughout the Middle Ages, craftsmen used stamps to distinguish their expertise by marking their wares with a trademark. With the rise of cattle farming in North America, the next milestone of brand evolution occurred as a form of 3

legal protection, proof of ownership, and quality signals. Brands have grown into a valuable intangible asset and vital resource that serves as a strategic reference point while also contributing to increased value and market success. The importance of brand management has been emphasized, and the definition of brand has been expanded beyond marketing communication and the resource-based theory of marketing strategy. The brand orientation strategy puts the customer and the brand at the center of the company's strategy. Building a successful brand, according to Doyle, results in a large market share and increased profitability. Successful brands, he defined, are those that have linked aspects that can't be reproduced by competitors, enhancing consumer preferences over competing brands. Success demonstrates a brand's strength by demonstrating its capacity to earn consumer preferences and build long-term partnerships. 3. Consumer Preferences: Marketers have long paid close attention to customer brand preference since it is an important step in understanding consumer brand choice. Horsky et al. highlight the value of including brand preference information into the brand choice model. Consumer preferences for a particular brand are referred to as brand preferences. It refers to the consumer's behavior characteristics that demonstrate how much they prefer one brand 4

over another. In terms of expressing customer evaluation of brands, brand preference is close to reality. Consumers are frequently faced with scenarios in which they must choose between multiple possibilities in the marketplace. Consumer brand choices represent three types of responses: cognitive, affective, and conative (behavioral). The utilitarian beliefs of brand elements are included in the cognitive components. The degree of liking or favoring that indicates consumer feelings towards the brand is referred to as affective responses. The consumers' expected or approaching act towards the thing is defined by Zajonc and Markus as conative or behavioral inclinations. It is the preference that is manifested in the decisions of customers. Chernev et al. believe that there is a link between behavioral outcomes like willingness to pay and brand preference. These are thought to be linked to a person's behavioral patterns. The brand strength is determined by the bias customers hold toward a particular brand as a result of comparison judgement between alternatives. As a result, changes in consumer brand choices have an impact on brand performance and market share. Furthermore, brand preference mixes desired traits with consumer perceptions, providing an indirect and unobtrusive way to evaluate important attributes. As a result, determining customer brand preferences is regarded a vital input in developing a successful brand strategy, brand positioning, and product development. As a result, understanding brand preferences aids in the development of strong brands capable of forging long-term relationships with customers. Identifying consumer preference patterns across the population and finding customer heterogeneity is also critical for establishing and developing novel marketing tactics and effective market segmentation strategies. It's critical for marketers to understand how consumers weigh the pros and disadvantages of several brands before making a decision. Because brand choice has a direct impact on consumer purchasing decisions, segmenting the market based on 5

brand preference is more interpretable and managerially valuable than segmenting the market based on desired brand features. 4. RESEARCH PROBLEM: Identifying consumer preference patterns across the population and finding customer heterogeneity is also critical for establishing and developing novel marketing tactics and effective market segmentation strategies. It's critical for marketers to understand how consumers weigh the pros and disadvantages of several brands before making a decision. Because brand choice has a direct impact on consumer purchasing decisions, segmenting the market based on brand preference is more interpretable and managerially valuable than segmenting the market based on desired brand features. 5. THE RESEARCH OBJECTIVES Internet and social media: The goal of this study is to see if using company websites and/or social media platforms to create demand for a brand or product through aggressive online marketing communication (brand awareness) will be effective. Brand-consumer engagement: The goal of this study is to see if consumers are interested in engaging with businesses (through marketers) on social media platforms in order to learn more about their performance, capabilities, and price. 6

Online recommendations: The goal of the study is to see if consumers are willing to engage in word of mouth by sharing their thoughts, perceptions, and experiences with other consumers about tyre brands and tire purchases. 6. INTRODUCTION OF SOCIAL MEDIA MARKETING: Technology and the internet bring individuals together in a variety of ways, allowing them to share knowledge and information. Social media is the most widely used method of communication. Social media is a new method of communication that is altering people's behavior and expectations, as well as the way businesses operate. Users can utilise social media platforms to invite and interact with others in an easy-to-use manner. This form of connection has given millions of customers a voice, allowing them to communicate with one another and share their experiences and thoughts with a global audience for little or no expense. 7. ELECTRONIC MARKETING (E-MARKETING): According to Gommans, Krishnan, and Scheffold, in order to create and keep client loyalty in electronic marketplaces, a sharper marketing focus is required. Because brand image and identity are developed through mass media and internet interactions, marketers must guarantee that there is an effective dialogue between the brand and its customers. This indicates that brand equity has a significant impact on how customers learn, retrieve, and transmit information in online contexts when making final purchasing decisions. 7

Consumer markets are dynamic, and just as brand accessibility and brand associations may shift over time, so may consumer purchase behavior. As a result, in today's technology-driven world, where technology has provided the promise of anything, everywhere, and at any time, a consumer focus is vital when establishing marketing tactics. Buyers and sellers can readily use communication channels by chatting, organizing, and exchanging information thanks to the internet's accessibility. As a result, marketing's purpose is to develop a brand and control the global and virtual market place, giving the brand a competitive advantage. Firms may now take use of promotional and advertising channels thanks to the internet explosion (and, by extension, e-marketing). Technology, the internet, and marketing should work together to help marketers test new and inventive ideas, assess consumer reactions in real time, and create a brand in online marketplaces. E-marketing focuses on human behavior and the fact that consumers are members of a network who are always engaged in network groups as they connect with one another in real-time. As a result, online purchasing has grown into a social experience. E-marketing enables customers to obtain product information at any time via the internet, as well as facilitate real-time interaction and feedback, all of which aid customer relationship management. As a result, the focus of a marketing strategy should be on creating a highly dynamic environment that draws or attracts customers, establishes relationships with them, keeps them, and enables for continual personalised customer support. The way information is communicated to and from individuals all over the world is changing thanks to social media. The fast adoption of social media, such as blogs and other social networking sites, as well as media-sharing technology, is transforming how businesses respond to customers' needs and wants, as well as how they respond to competitors. By utilizing social media marketing technologies, marketers may now engage in broader and more inventive types of online mass media communications. 8

8. SOCIAL MEDIA AND MARKETING: Social media should be considered as a marketing tool and resource since it allows marketers to have access to vital information that affects connection building and keeping the feedback loop open with customers. Social media marketing is a low-cost kind of marketing that allows businesses to interact directly with their customers. Passion, emotion, and real expression towards a brand are at the heart of social media marketing. It allows communication, slow revelations, and ultimately respect for the brand by strengthening the consumer-brand relationship. According to Trusov et al., eWOM has a significant impact on new client acquisition. As a result, customers have progressed from typical buyers to opinion leaders who may influence other consumers based on their expectations, views, expertise, and associations. As a result, social media marketing provides opportunities for communication and necessitates fresh and innovative thinking to ensure that consumers receive brand and product orientation. As a result, marketers should employ social media as a tool for nurturing brands in online settings and activating purchase intent. The human side of social networking is emphasised, and it gives a platform for people to express themselves creatively. As a result, social networks give marketers a better understanding of how people connect and interact with one another, as well as the importance of creating connections. As a result of social media's promotion of consumer-to- consumer communication and the ability for consumers and companies to interact with one 9

another, connection has been enabled. Because social media has allowed for improved situational awareness in terms of a changing environment, social media marketing is becoming increasingly significant in marketing. Consumers have built a new online culture thanks to the Internet and social media. Because the era of technology has made the marketplace more accessible to consumers, marketing is no more a commercial activity, but rather a method of doing business and reaching out to the end customer. Companies that incorporate components of social media into their marketing mix will have a larger opportunity to influence consumers' purchase decisions, as social media marketing allows marketers to communicate the brand to consumers in nontraditional and innovative ways in real-time. Social media provides marketing chances by allowing businesses to communicate directly with their customers. 90 percent of marketers said social media was important to their business, 33 percent are developing metrics to measure social media as part of their return on investment, 58 percent use social media for up to six hours per week, 34 percent use social media for up to eleven hours per week, and 70 percent of marketers want to learn more about Facebook, according to Stelzner's Social Media Marketing. Facebook, LinkedIn, Blogs, Twitter, and YouTube are five popular social networking services. Users can connect with each other on social networking platforms, which often attract a small group of first-time customers. The most appealing aspect of social media marketing is that it allows a business to have a significant impact on customers and consumer groups. 10

9. The characteristics of social media marketing: 1- Tone: It's all about being genuine and honest on social media. Marketers must ensure that the message they deliver to their target audience is trustworthy and genuine. 2- Conversation: The consumer is an integral member of the marketing department in social media marketing, which generates a two-way communication. Customer feedback is important and has an impact on marketing strategy. 3- Validation: Buyer and user reviews have just as much sway as the marketer's promises about the product's qualities and benefits. This sets the tone for the brand to deliver on its promises to customers. 4- Reach: Marketers may reach a larger number of people with more dramatic effects in far less time and for far less money through social media marketing 5- Control: Control is the most difficult aspect of social media marketing. The internet allows people all around the world to report on what they observe as it happens (in real time). All testimonials, opinions, positive and bad customer experiences, and consumer messages can go live at any time. These signals aren't always correct, and they're out of the marketer's control, so the problem for the marketer is to respond to them professionally. 10. SOCIAL MEDIA MARKETING AND THE CONSUMER PURCHASE DECISION: 11

The following are the research factors that influence a consumer's final purchase decision: - Internet and social media: The goal of this study is to see if using company websites and/or social media platforms to create brand demand through aggressive online marketing communication and brand awareness will be effective. Consumer attitudes toward online information available through electronic media and print marketing, as well as recommendations and blogs, will be evaluated. - Brand-consumer engagement: The goal of the study is to see if consumers will engage with businesses (through marketers) on social media channels to learn more about their performance specifications, pricing, and capabilities. - Online recommendations: The goal of the study is to see if consumers are willing to share their brand ideas, thoughts, and experiences with other consumers. 11. Using a popular figure (aka influencers) to promote their experience and reviews, (Celebrity endorsement) triggers the consumers' intent to purchase or use the product or service. The fast expansion of visual microblogging platforms like Instagram has given marketers new ways to engage with their customers. Brands have had to adapt as these platforms evolve in order to exploit the available social media channels to get visibility among the millennial demographic. Brands have recently turned to online \"celebrities\" known as social media influencers (SMI) to disseminate information and impact consumer impressions of products. This has become a typical approach in the fashion and beauty industry's communication and marketing efforts. There is a lot of study on the effects of celebrity endorsements, but there is currently a gap in research on the consumer's perspective on SMIs and the consequences of SMIs on consumers. 12

12. Benefits of Online Advertising: Online advertising, on the other hand, is significantly less expensive, reaches a much larger audience, and will almost certainly result in a higher profit margin than traditional advertising. It has a slew of benefits that traditional advertising can't even imagine. This new form of advertising offers so many options that your head will spin: video advertising, social media advertising, mobile advertising, e-mail advertising, banner advertising, Google Search advertising, and so on. The following are some of the advantages of online advertising: - Less Expensive: When compared to traditional advertising prices, one of the key advantages of online advertising is the lower cost. You can advertise at a lot lower cost and reach a much larger audience on the internet. - Wider Geographical Reach: Online advertising gives your campaigns a worldwide reach, allowing them to reach a larger audience. This can undoubtedly aid you in achieving better results from your online marketing plan. - No Rigorous Payment: Another tempting feature of online advertising is that it is cost- effective. In traditional advertising, regardless of the results, you must pay the full sum to the advertising firm. However, in online advertising, you must only pay for qualified clicks, leads, or impressions. - Easy Result Measurement: The ease with which online advertising can be measured makes it more tempting than traditional advertising tactics. You may find a variety of 13

useful analytics tools for measuring online advertising results, which can help you figure out what to do and what not to do in future campaigns. - More Targeted Audiences: In compared to traditional advertising, online advertising allows you to effortlessly reach your target demographic, resulting in the success of your campaign.  There are other examples of benefits on online advertising such as: Speed, Informative, Better ROI, Easy Audience Engagement and Better Branding. 13. Disadvantages of Online Advertising: The most significant di sadvantage of Internet advertising is that your marketing materials are instantly available for everyone in the world to duplicate, regardless of the legal implications. Logos, logos, and trademarks can be duplicated and utilised for financial gain, as well as to slander or mock your business. This isn't the case with television and magazine ads, where visuals must be duplicated rather than simply copied electronically. Another downside is that the Internet advertising gold rush has begun to fill the Web with ad clutter. Because web users are bombarded with banner 14

ads and spam email, they have begun to disregard internet advertisements just as much as conventional media advertisements. 14. Conclusion: With the rising popularity of the Internet as a platform for advertising, the World Wide Web is gradually becoming a standard advertisement platform. The Web is bringing rich media capabilities, interactive services, and global reach to the field of corporate advertising. To get the most out of this new media, it's important to first determine your target market and then strategize effectively. Although interactive technology promises new possibilities for the whole advertising business, the real impact of advertising is difficult to detect and evaluate for both mass media and the Internet. In the case of mass media, businesses such as Nielson TV and radio ratings quantify the size of the audience per commercial message, and initiatives are underway to further examine the economic consequences of advertising by linking advertising with a rise in sales. However, because of its duplication, broadcast advertising is inherently inefficient. It sends messages to everybody who is interested in, receptive to, or related to the product. Over the other hand, on the Internet, identifying an audience and checking the number of people who get a message is relatively simple. However, the marketer has no way of knowing whether or not the recipient viewed the message. For the Internet, more refined measures and approaches are being developed. For example, rather than paying based on the number of Yahoo! customers to whom its advertisement is presented on their search pages, Proctor & Gamble limits payment for its ads on the Yahoo! Search engine to the number of people who actually request more information by clicking on their advertisement. This is in contrast to the traditional way of determining viewership and payment, which is based on \"eyeballs,\" or the number of Yahoo! connections. As more and more merchants continue to mistrust the efficiency of Internet broadcast advertising, which essentially flashes banner ads, they must rely on alternative money streams. As a result, broadcast-based advertising will have fewer channels in the future. Targeted advertising is another option. 15

15. References: 1- Ramsunder, M., 2011. The impact of social media marketing on purchase decisions in the tyre industry (Doctoral dissertation, Nelson Mandela Metropolitan University). 2- Ebrahim, R.S., 2013. A study of brand preference: an experiential view (Doctoral dissertation, Brunel University Brunel Business School PhD Theses). 3- Ogilvy, D. and Horgan, P., 1963. Confessions of an advertising man (p. 192). New York: Atheneum. 4- Burke, K.E., 2017. Social butterflies-how social media influencers are the new celebrity endorsement (Doctoral dissertation, Virginia Tech). 5- Deshwal, P., 2016. Online advertising and its impact on consumer behavior. International Journal of Applied Research, 2(2), pp.200-204. 16