Marketing and social media : benefits, and ways forward

Abstract

The second generation of Internet-based applications enhances marketing efforts by allowing firms to implement innovative forms of communication and co-create content with their customers. Despite the strengths of social media for marketing purposes, few studies have empirically explored why firms have begun to use it. To redress this shortcoming, this study adopts the perspective of the firm to facilitate an understanding of digital marketing and social media usage as well as its benefits and inhibitors. Through an online survey conducted in July and August of 2011, data were requested from marketing managers of the 2000 largest firms in Portugal. One hundred and seventy questionnaires were completed. Results demonstrate that firms face internal and external pressures to adopt a digital presence in social media platforms. Further, we identify four levels of digital engagement evolution and propose a new digital pattern matrix based on benefit perception and digital marketing usage. To successfully explore digital marketing and social media, marketers need to adopt marketing strategies to engage in relationship-based interactions with their customers. To meet this challenge, firms should complement their traditional Web practices with online social networking.