The paper “ The Effectiveness of Social Media Marketing, Managing Brands in Social Media" is a spectacular example of a literature review on marketing. This chapter will review the pertinent literature to provide a background to the research questions of this study, to clarify the underlying theoretical and practical concepts of social media marketing and brand management. Therefore, this review follows several separate but closely related lines of inquiry: First, the study investigates how social media marketing fits into the established marketing theory. Second, literature related to the management of branding in the social media context is reviewed.
And finally, a review of studies addressing the use and effectiveness of social media in marketing and brand management is presented. Social Media Marketing in Marketing TheoryMuch of the theoretical background of social media marketing focuses on the impact of the technology on users’ processing of information and on patterns of communication and interaction. One concept that seems to be centrally-important to using social media and Internet technology in general as marketing tools is Central Capacity Theory, which acknowledges that humans are able to divide attention to a number of simultaneous tasks, but with limitations (Eysenck & Keane, 1995 in Hong, Thong & Tam, 2004, p.
65). The obvious implication of the central capacity theory is that the more information that is presented to a user, the more attention will be divided amongst the various bits of information, which reduces the user’ s interaction with each of them, and his recall of them later. Several studies provide evidence to support the limitations on attention and recall suggested by central capacity theory. Studies of users’ interactions with online advertising indicate that users are likely not fully aware of the extent of their exposure to advertising, and in many cases actively avoid it.
531). The researchers’ specific conclusions were that, “ Within a session, we found a negative and nonlinear effect on click probability due to wear out, and that earlier ad had a higher probability of being clicked on than ads exposed later. Across sessions, we found that longer intersession times in prior sessions, more banner exposures in prior sessions, and more time since the last click in prior sessions led to higher click probabilities in the current session.
We also found that click probability declined as the total number of sessions increased. ” (Chatterjee, et al. , 2003, p. 535) In other words, the old adage “ familiarity breeds contempt” may be applicable; the longer a user is exposed to advertising, the less likely he is to respond to or otherwise positively interact with it. A different perspective on the ability of online marketing to attract and hold users’ attention is taken by Coyle and Thorson (2001), who measure “ telepresence” in websites as a function of “ vividness” and “ interactivity” presented to the user (Coyle & Thorson, 2001, pp.
67-68). The study is a test of a marketing model developed by Rodgers and Thorson (2000), which states that the success of a marketing presentation depends on its being offered to the user at the right moment where user attention, the user’ s mood, and memory are optimal. In what may be a negative indicator for social media marketing, the study found that the use of color, animation, and sound – the “ vividness” aspect of a website – is recalled by users more often than a website’ s lack of those things is recalled, but that interactivity did not appear to improve users’ recall, or lead to their having more positive impressions of a website (Coyle & Thorson, 2001, pp.