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Father Saturnino Urios University

College Department
S.Y. 2017 - 2018
First Semester

USAGE OF SOCIAL MEDIA MARKETING:


A COMPARATIVE STUDY ON
PEDRO’S AND BURGITO’S

Submitted To:
Hannah Dara Vanzuela Garay-Nugroho
Business Policy and Strategy Instructor

Submitted By:
Amparo, Angel May K.
Borja, Maria Arrah
Cabahug, Ana Mae L.
Dumanon, John Ninyo M.
Pepito, Cheevie Khaye
Isobal, Christian
Plaza, Gilberto Jr.
Tabaranza, Rhodney
Tan, Marriz B.

A41
February 2018
Chapter I

Introduction

*Rationale

….……..

This study is conducted for the primary purpose of presenting the significant
impact of the use of social media as a marketing tool in achieving business goals and
objectives. This study also aims to give readers additional information relating to the
relevance of a marketing strategy in a business.

Statement of the Problem:

This study intends to compare and look into Pedro’s and Burgito’s marketing
strategy. Specifically, this paper pursues to answer the following queries:

1. What is/are the current marketing strategy of Pedro’s and Burgito’s?

2. Why did Pedro’s and Burgito’s use social media as a marketing tool?

3. What are the benefits of using social media as a marketing tool for Pedro’s and
Burgito’s?

4. How can social media strategy have a significant impact in achieving the business
goals and objectives of Pedro’s and Burgito’s?

Objectives:

This study seeks to identify and understand the following areas relating to
marketing strategy:

● To define marketing strategy and understand its importance.

● To provide information about the current marketing strategy used by Pedro’s and
Burgito’s.

● To find out the reason why Pedro’s and Burgito’s use social media as a marketing
tool in the business.

● To identify the benefits of using social media as a marketing tool in the business.
● To determine whether or not the social media strategy have a significant impact
in achieving Pedro’s and Burgito’s business goals and objectives.

● To give ideas to the readers on how to achieve the business goals and objectives
through social media strategy.

*Significance of the Study

The fundamental purpose of this study is to help citizens, specifically the current
and aspiring businessmen, realize the importance of marketing strategy in achieving
the business goals and objectives. The contributions of this study will be of interest to
the following:

● Businessmen,

● Customers,

● University, to encourage more instructors and students to conduct this kind of


study in order for the university to improve the quality of education they provide
and it also gives an opportunity to the students to apply their learnings in the real
setting;

● Researchers, to use this as a reference for future research on the subject of


business policy and strategy particularly in the topic of marketing strategy.

*Operationalization of Terms
Chapter II

Theoretical Background

*Review of Related Literature

The way social networks have impacted our personal and professional lives is far
greater than most of us could have anticipated. The evolution of social networks in
the past 10 or even 5 years has been truly remarkable. Having 92% of marketers
reporting that social media is important to their business, gives us a clear view that
marketers believe social media holds weight (Zeckman, 2015). With the ongoing rise
in social media usage and marketing on and through the platform, modern businesses
are continually challenged to alter their strategies. Today, social media has been a
staple marketing tactic for nearly every business, helping brands build awareness,
share and interact with customers and prospects, and create important touch points in
the changing customer journey. However, both green and seasoned marketers are still
trying to nail down what a successful social media marketing strategy looks like
(Burgess, 2017).

Marketing strategy creates pathways to a desirable future (Sudharsan, 1995). In


its strategic role, marketing focuses on a business’s intentions in a market and the
means and timing of realizing those intentions (Jain, 1993). Hence, understanding the
strategic situation confronting an organization is an essential starting point in
developing a marketing strategy (Cravens, 1986).

In the current modern society, social media are commonly used in order to
connect people together throughout the world using the Internet. Whether it is
through social networks, forums, blogs or media sharing websites, people can now
have a conversation online, also called interactive dialogue, with anybody and on any
subject, permitting them to share their experiences and valuable information.
Furthermore, Social Media Marketing and more particularly Social Networks are
becoming increasingly important in consumers’ purchasing decisions, mainly because
they amplify word-of-mouth. They may even become more important than
advertising as a trusted source of information. However, it is important to stress the
fact that, in Social Media Marketing, marketers have less control over messaging and
positioning. (Arca, 2012).
Definition of marketing strategy

According to Management Study Guide (n.d.), Marketing strategy is the


comprehensive plan formulated particularly for achieving the marketing objectives of
the organization. It provides a blueprint for attaining these marketing objectives. It is
the building block of a marketing plan and it is designed after a detailed marketing
research. A marketing strategy helps an organization to concentrate it’s scarce
resources on the best possible opportunities so as to increase the sales. A good
marketing strategy should be characterized by a clear market definition, a good match
between corporate strengths and the needs of the market and superior performance,
relative to the competition, in the key success factors of the business (Jain, 1993).
Moreover, it should integrate an organization’s marketing goals, policies, and action
sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to
provide a foundation from which a tactical plan is developed. This allows the
organization to carry out its mission effectively and efficiently. Hence, market
strategy is the process by which the organization aligns itself with the market it has
decided to serve (Fifield, 2007).

In addition, marketing strategies involve selecting and analyzing target markets


and creating and maintaining an appropriate marketing program (product,
distribution, promotion, and price) to satisfy the needs of those target markets. It is at
this level where the firm will detail how it will gain a competitive advantage by doing
something better than the competition: Its products must be of higher quality than
competitive offerings; its prices must be consistent with the level of quality (value);
its distribution methods must be as efficient as possible; and its promotions mustbe
more effective in communicating withtarget customers. It is also important that the
firm attempt to make these advantages sustainable. In its broadest sense, marketing
strategy refers to how the firm will manage its relationships with customers in a
manner that gives it an advantage over the competition (Ferrell & Hartline, 2016).
Overall, a marketing strategy should be centralized around the key concept that
customer satisfaction is the main goal (Chavan, n.d.).
The marketing mix

According to The Balance, the 5P’s of marketing mix which lays out the building
blocks of a Marketing Strategy includes the following:

1. All products and their packaging must support the brand’s positioning.
Functionality and design need to be carefully considered and developed to clearly
communicate product benefit(s).

• What you selling?

• What are the physical attributes of your product or uniqueness of your


service?

• How is your product different from your competitors and what benefits does
it provide your customer?

2. Price plays a critical role in both market positioning and customer perception.
Brands selling a premium product or service can command above average prices.
Those who want to be perceived as price leaders need to offer lower prices to gain a
competitive edge.

• How much will it cost to get your product or service?

• How does it compare to your competition?

3. The selection of distribution channel must be consistent with the brand’s


positioning. A high-end product must be associated with a high-end distribution
channel to reinforce product value.

• Where will your products and services be available for purchase?

• What will your Internet marketing strategy be?

4. Promotion strategy must take all of the brand’s marketing objectives and create
specific tactics that will deliver against them. This can include brand awareness,
recall of key communication points, shifts in preference, and more.

• How are you going to let the market know about your product or services?

• How will you tell them about the features and benefits you provide to entice
them to check out what you offer?

• What marketing tactics will you use and what do you anticipate will be the
results of each method?
• What about any incentives or coupons you'll use to attract business?

5. People in the newly added "P" to the marketing mix, and is important in creating or
delivering your product or service.

• Who are these people (i.e. sales people, virtual assistants) and what do they
do (i.e. sales calls, customer service)?

• What is there level of training and/or experience in providing help to your


business?

Product

According to Andrew Whalley (2010), products differ in the way; they do things,
how they are used, how they are distributed and at whom they are aimed. There are
two types of product: the consumer products and industrial products. These include
the following:

 Consumer Products

Durable goods. These products are expected to last a considerable length of time.
They are not used up all at once but can be used repeatedly.

Non-durable goods. These products are used up in the process of consumption. They
do not last.

Service products. These cannot be stored at all. Normally, they are used there and
then. Services present marketers with particular challenges.

Convenience goods. These are products that customers buy frequently and think little
about. They are of little value and have many close substitutes so they need strong
branding and eye-catching colours and designs to make them stand out from the rest.

Shopping goods. These carry a higher associated risk for a customer than
convenience products do. They may be higher priced or it may be that the cost of
product failure is high. These products are therefore sometimes referred to as high-
involvement purchases.

Speciality goods. These are unusual, and often quite expensive, products which are
commonly sold in niche markets. They may be high-risk products and so customers
may need extensive emotional support and encouragement from the supplier before
they buy.

 Industrial products

Capital goods. There are durable products. They are designed to last for a number of
years. They are usually high cost, bought infrequently and carry high potential risk.
Consequently great care is normally taken over these purchases.

Accessories. These are smaller capital items, which support the business. As they are
lower cost, they normally represent a lower financial risk to a company.

Raw materials. These are goods that will be processed, and added to, by the business.
They are often generic products. Together they become the finished article.

Sub-assemblies, components and parts. These have already been manufactured but
are not finished goods. They are brought by businesses to incorporate into their own
products.

Supplies. These are non-durable minor items which are used by the business and are
smooth running.

Services. These are provided by a third party to a business, usually so that it can
concentrate on running its own operation efficiently.

Price

According to Andrew Whalley (2010), there are many ways to price a product.
There are twelve pricing strategies and these are the following:

• Premium pricing, is used where there is uniqueness about the product or service.
This approach is used where a substantial competitive advantage exists, that is
also sustainable in the long-term.

• Penetration pricing, is designed to maximize the capture of market share in a


short timescale. In this, the price charged for products and services is set
artificially low in order to gain market share.

• Economy pricing. Exactly as the name implies this is no frills low price. The cost
of marketing and manufacture are kept to a minimum. Supermarkets often have
economy brands for soups, spaghetti, etc. Note to maintain such pricing policies
means a tight organizational reign on costs which does not sit philosophically
well with the marketing concept, as such companies using economy pricing are
often product or production-oriented.

• Price skimming. The aim is to charge a high price because you have a substantial
competitive advantage and you can maximize your financial return because
customers have to meet your price to purchase the product. However, such
advantage is rarely, if ever, sustainable in the long-term as such high returns
encourage competitors.

• Psychological pricing. This approach is used when the marketer wants the
consumer to respond on an emotional, rather than rational basis. For example
‘price point perspective’, $6.99 instead of $7. In fact, you can see examples of
this everyday in the high street and local shops.

• Product line pricing. Where there is range of product or services the pricing
reflect the benefits of parts of the range. This is often used in ‘families’ of
products where a variety of product offerings exist.

• Optional product pricing. In this, the seller attempts to increase the amount
customer spend once they start to buy. Optional ‘extras’ increase the overall price
of the product or service. For example, airlines will charge for optional extras
such as guaranteeing a window seat or reserving a row of seats next to each
other.

• Captive product pricing. Where products have complements, companies will


charge a premium price where the consumer is captured.

• Product bundle pricing. Here, sellers combine several products in the same
package. This also serves to move old stock or to get trial samples to consumers.

• Promotional pricing, is uniquitous. You can see examples everyday online and
on the high street the most common is the BOGOF (Buy One Get One Free)
offer.

• Geographical pricing, is evident where there are variations in price in different


parts of the world.
• Value pricing, is used where external factors such as recession or increased
competition force companies to provide ‘value’ products and services to retain
sales. For example, value meals at McDonalds.

Place

According to Bucklin (1966), when considering place, a business need to think


about a channel of distribution which comprises a set of institutions which perform
all of the activities utilized to move a product and its title from production to
consumption. There are six basic channel decisions:

1. Do we use direct or indirect channels?

2. Single or multiple channels.

3. Cumulative length of the multiple channels, longer length adds cost.

4. Types of intermediary.

5. Number of intermediaries at each level.

6. Which companies as intermediaries to avoid intrachannel conflict.

Promotion

Promotion includes all of the tools available to the marketer for marketing
communications. As with the marketing mix, marketing communications has its own
promotions mix, where different aspects of the promotions mix can be integrated to
deliver a unique campaign (Whalley, 2010). The elements of the promotions mix are:

• Personal Selling

It is an effective way to manage personal customer relationships. The sales person


acts on behalf of the organization. They tend to be well trained in the approaches and
techniques of personal selling. It is highly persuasive and is often used in markets
where personal choice figures strongly in the purchase.

• Sales Promotion

It tend to be thought of as being all promotions apart from advertising, personal


selling, and public relations. Others include couponing, money-off promotions,
competitions, free accessories, introductory offers, and so on.
• Public Relations

It is defined as the deliberate, planned and sustained efforts to establish and maintain
mutual understanding between an organization and its publics. It can be split into
proactive - communications designed to build understanding - and reactive -
communications designed to counter misunderstanding.

• Direct Marketing

It is very focused upon targeting customers based upon a database. It is now


expanded into areas such as Telemarketing, Cataloguing, door-to-door leafleting, e-
mail marketing, broadcast faxing, etc. As such, it is a major sub-section of marketing
in its own right.

• Trade Fairs and Exhibitions

The purpose of this is to increase awareness and to encourage trial, largely through
face-to-face contact of supplier and customers. They offer the opportunity for
companies to meet with both the trade and the customers, for both to build
relationships outside traditional sales meetings. They are heavily used with Business-
to-Business marketing, especially within technology and engineering based products.

• Advertising

It is a paid for communication in a communications medium, which might be mass


targeted. It is used to develop attitudes, create awareness, and transmit information in
order to gain a response from the target market. Tradition advertising media were
mass; newspapers, magazines, journals, television, cinema, posters, and radio.
Modern media is direct; internet, mobile phone, e-mail, etc.

• Sponsorship

It is where an organization pays to be associated with a particular event, cause or


image. Companies will sponsor sports events such as the Olympics or Formula One.
The attributes of the event are then associated with the sponsoring organization.

People

According to Andrew Whalley (2010), people are the most important element of
any service or experience. Services tend to be produced and consumed at the same
moment, and aspects of the customer experiences are altered to meet the individual
needs of the person consuming it. Most of us think of a situation where the personal
service offered by individuals has made or tainted a tour, vacation or restaurant meal.
Remember, people but from people that they like, so the attitude, skills and
appearance of all staff need to be first class. Some ways to add value to a person’s
experience, as part of the marketing mix are training, personal selling and customer
service.

• Training

All customer facing personnel need to be trained and developed to maintain a high
quality of personal service. Training should being as soon as the individual starts
working for an organization during an induction which exposes the new employee to
the organization’s culture for the first time, as well as briefing them on day-to-day
policies and procedures.

• Personal Selling

There are different kinds of salesperson. There is the product delivery salesperson.
There is the order taker, and these may be either internal or external. The internal
sales person would take an order by telephone, e-mail or over a counter. The external
sales person would be working in the field. In both cases, little selling is done. There
is the missionary who promotes faith, building goodwill with customers with the
long-term aim of generating orders. The forth type is the technical salesperson. Their
in-depth knowledge supports them as they advise customers on the best purchase for
their needs. Finally, there are creative sellers. Creative sellers work to persuade
buyers to give them an order. This is tough selling, and tends to offer the biggest
incentives. The skill is identifying the needs of a customer and persuading them that
they need to satisfy their previously unidentified need by giving an order.

• Customer Service

Customer services provided expertise, e.g. on the selection of financial services,


technical support, e.g. offering advice on IT and software and coordinate the
customer interface, e.g. controlling service engineers, or communicating with a
salesman. This disposition and attitude of such people is vitally important to a
company, so the processes they use and their training are paramount.
Importance of marketing strategy

The primary purpose of a marketing strategy is to effectively allocate and


coordinate marketing resources and activities to accomplish the firm’s objectives
within a specific product-market. Therefore, decisions about the scope of a marketing
strategy involve specifying the target market segment or segments to be pursued and
the breadth of the product line to be offered. Next, firms seek a competitive
advantage and synergy through well-integrated program of marketing mix elements
tailored to the needs and wants of customers in the target segments. However,
changes, such as (1) the increased globalization of markets and competition, (2) the
growth of the service sector of the economy and the importance of service in
maintaining customers satisfaction and loyalty, (3) the rapid development of new
information and communications technologies, and (4) the growing importance of
relationships as mechanisms for the improved coordination and increased efficiency
of strategic marketing programs, are rapidly altering the context in which marketing
strategies are formulated and carried out, and the tools that marketers have at their
disposal. Hence, it light of these changes, it is apparent that firms in most, if not all,
industries will have to be market-oriented, tightly focused on customer needs and
desires, and highly adaptive to succeed and prosper in the future. In turn, this
suggests that the effective performance of marketing activities - particularly those
associated with tracking, analyzing, and satisfying customers’ needs - will become
even more critical for the successful formulation and implementation of strategies at
all organizational levels (Whalley, 2010).

According to Brand Uniq, many business owners fail to see the benefits of
incorporating Marketing strategy in the overall strategic business process. A well-
crafted strategic plan:

• Provides the business with focus and direction by identifying the best
opportunities worth pursuing as well as the threats to be avoided;

• Identifies the tools that the company can effectively use to fight competition and
gain market share;

• Saves company time and money by focusing the resources on attracting the right
employees and investing only om marketing initiatives that support the overall
business objectives;
• Differentiates a company from competition by identifying the distinctive
advantage and the supporting elements;

• Translates the company vision, mission, objectives, into effective Marketing


initiatives;

• Serves as foundation for all your communication campaigns;

• Improves the effectiveness of the Marketing message to customers and partners;

• Increases sales and profits; and

• Creates consumer preference for the brand.

Coordinating your activities is critical to eliminating interference and


maximizing your profits because one aspect of a marketing plan affects all of the
others. A marketing strategy looks at all of the areas of your selling activities and
helps each one support the next, making sure all of your departments are aware of
what each is doing. Understanding how to create an integrated marketing strategy
will help you make better individual decisions regarding specific marketing tactics
(Ashe-Edmunds, 2017).

• Streamlines Product Development

A marketing strategy helps you create products and services with the best
chances for making a profit. This is because marketing strategy starts with
marketplace research, taking into consideration your optimal target customer, what
your competition is doing and what trends might be on the horizon. Using this
information, you determine the benefit customers and clients want, what they’re
willing to pay and how you can differentiate your product or service from the
competition.

• Helps Determine Optimal Prices

Part of a marketing strategy is setting the right price for your product or service
based on what you learned in your market research. If you learned that customers
want a high-end product in your category, your pricing strategy might require you to
sell at prices that create a high-end perceived value. If your target customer is bargain
conscious and is willing to accept fewer bells and whistles on your product in
exchange for paying less, your pricing strategy will require you to sell at or below the
competition’s price.

• Establishes Effective Distribution

Once you know what product features you’ll offer, who your target customer is
and what your price points will be, you can select where you want to sell to maximize
your marketing effectiveness. Younger customers will be more likely to shop using a
smartphone or on a website, paying with PayPal or a credit card. Older customers
might prefer to shop at retail outlets. If your market research shows you need to be in
retail stores but you don’t have a sales force, you can use a wholesaler or distributor.

• Assists with Marketing Communications

Your market research will help you create your brand, or image you want to
establish about your business. Without marketplace research and a strategic
marketing plan, you might respond to solicitations from advertising salespeople on an
individual, reactionary basis, sending messages that don’t fit in with the brand
identity you’ve created based on your product development efforts. A marketing
strategy lets you determine if a particular magazine, radio station or website fits into
your selling plans.

• Organizational Impact

When you have a marketing strategy, your departments can better work with
each other, because they are all working from the same plan. For example, your
advertising people will talk with your product development people to determine what
message you should send about your benefit. Your sales people will talk with the
people responsible for managing your image to determine if they can offer discounts,
coupons or rebates without damaging your brand.

Social media as part of the marketing strategy

As the Internet continues to weave its way into the fabric of everyday business
and personal life, and as the second wave of Internet entrepreneurship takes root,
companies of all types are addressing how best to make the Internet a fundamental
part of their business and their competitive strategies (Cravens & Piercy, 2016). In
today’s digital age, businesses need more than one strategy and a strategy for every
opportunity. There are Ten Marketing Strategies to fuel business growth online and
the number one strategy on the list is using Social Media. Businesses can't ignore
social media because that's where all the so-called magic is happening. Some
businesses have been built solely on the backs of social media. It can be intimidating
at first, but as you build momentum, you'll find posting on social media to get easier
and easier over time. Of course, businesses could also hire a social media manager if
they have money to burn. But if they don't, they just have to be themselves, be
authentic. They should post their thoughts, their products or anything that they find
relevant and useful that would help their audience either learn more about them and
their business, or about the industry that they’re in. It is efficient to use direct
messages on platforms like Facebook, Instagram and even Snapchat or Twitter to
reach out to other successful businesses or even to communicate with potential
customers who might be looking for your products and services. This is indeed a very
powerful marketing (Adams, 2015).

According to Andrew Whalley (2010), social media marketing is a recent


development with its origin in integrated marketing communications (IMC) plans.
IMC coordinates the elements of the promotional mix - advertising, personal seeling,
public relations, publicity, direct marketing, and sales promotion - to produce a
customer focused message that is consistent and coherent across all media.
Traditionally, the content, frequency, timing, and medium of communications used by
the organization was in collaboration with external agents, i.e. advertising agencies,
marketing research firms, and public relations firm. However, the growth of social
media such as Facebook, Twitter, Bebo, Stumbleupon, etc., has impacted the way
organizations communicate with their customers. In the emergence of Web 2.0, the
internet provides a set of tools that allow people to build social and business
connections, share information and collaborate on projects online; social media
marketing uses these social applications as the marketing message media.

According to Aakansha Damani (2012), Social media networks are mode of


social interaction. It is a platform of sharing and discussing information among
human beings. Social media marketing is a very broad term; it is a technique of
building a business using various social media networks. For instance, videos and
blogs that gives exposure to your company. When someone talks about social media
marketing people often think that they may be talking about Facebook and Twitter.
But social media networks also offer effective marketing tools that can bring more
traffic to your website and improve your online popularity. Social media marketing
has many characteristics. To attain a good marketing strategy, you need to have a
look at these following characteristics:

• Participation

Social media encourages contributions and feedback from everyone. Social media
includes delivery of ideas at the time of online conversation. It tries to bridge the gap
between companies and audience. With all the new channels of social media, people
are enjoying this process of participation.

• Openness

Social media success requires honesty, transparency and authenticity. You should
maintain a trust worthy relationship with your customers in your SMM (social media
marketing) strategy. One fake or negative comment can destroy your online
reputation.

• Build relationships

Social media is a two-way communication channel. It requires participation from


both companies and customers. As a business owner, it is very important to make
good connections with your target audience. Online conversation through various
social media tools happen in real time with real people. You get a chance to interact
with your target audience and you can answer to their queries. Answering to their
queries is a good way to build relationship with customers.

• Reliability

To make your profile reliable, you need to consistently show your online presence.
Effective social media marketer visits their targeted sites regularly. They also get
involved with new users and promote their products. They talk to their target
audience on a regular basis.

• Build communities

Social media sites allow you to build communities quickly, this helps you
communicate more effectively. Communities share common interests, such as a love
of photography, a political issue or a favorite TV show. These communities help you
to know about your target audience. You can also support other communities which
you think are good for your business.

• Customer service

It is very essential to take care of your customers. Social media networks are all
about helping each others. It’s about providing value to your customers, not just
promotion.

• Avoid spamming

Don’t give importance only to promoting your links. Also share insightful content
about your company. Do not send the same message to your community again and
again, it works as a spam and it may irritate your customers.

Social media marketing is the most powerful platform for small businesses. An
effective social media marketing campaign grows your business and brings more
traffic to your website. Therefore, social media marketing is the best marketing
strategy allows you to promote your company at the same time build relationships
(Damani, 2012). According to Ashley Zeckman (2015), 92% of marketers report that
social media is important to their business. The top three most important social
platforms for marketers are Facebook, LinkedIn, and Twitter.

Impact of social media strategy to a business

As social media has grown in functionality and reach over the years, it has
changed the ways brands interact with their audience of current and potential
consumers. Whether or not you use social media, it has changed your business (Siu,
n.d.). A study conducted by the Altimeter Group indicated that companies use social
media to accomplish various business objectives, such as increasing annual sales
growth. Small businesses recognize the benefit of social media as a communication
platform that facilitates two-way communication between a company and its
stakeholders. This supports company processes and objectives including customer
relationship management, market research, customer base expansion and customer
retention, product marketing, cost control initiatives, public relations, sales and
recruiting (Nordmeyer, n.d.).
• Customer Relationship Management

Tom Funk writes in “Social Media Playbook for Business: Reaching Your Online
Community with Twitter, Facebook, LinkedIn, and More" that the principle
advantage of a social media program is the opportunity to strengthen the relationship
between a company and its customers. Through real-time online connections with
existing and potential customers, a company conveys information regarding its brand.
In turn, the company might benefit from positive word-of-mouth that is exponentially
broadcast across a social network. Funk states that the greater the frequency and
degree of engagement, the stronger the relationships become and the greater the
impact of the relationships on sales, customer satisfaction and product reputation.

• Customer Retention

Funk writes that 67 percent of Twitter users who become followers of a brand are
more likely to buy the brand's products. This sales result is due in part to a company's
use of social media to convey brand values, create positive word of mouth and
enforce the connection between the company and its customers. These enhance a
company's efforts to build customer loyalty.

• Expansion of Customer Base

According to Funk, companies reach new customers through the conveyance of the
corporate message on a social media channel, the broadcast of positive customer
feedback regarding the corporate message and its products to some of the 100 million
Twitter users and 500 million Facebook users, and the conversion of the feedback to
product purchases. The broadcast of such third-party endorsements complement such
traditional marketing efforts such as print and broadcast advertisements.

• Market Research

Stephen Rappaport writes in "Listen First: Turning Social Media Conversations into
Business Advantage" that social media is a reliable means to explore the culture,
views and lifestyles that influence consumer behavior. The social media arena is a
means to profile a target audience to develop marketing and advertising strategies.
Social media conversations also alert companies to issues that may negatively affect
current market opportunities.

• Product Marketing
A product can be directly marketed to the consumer using social media. Such
marketing amplifies messages that are conveyed by other product promotions,
including website advertisements and press releases.

• Achievement of Competitive Advantage

Funk states that 80 percent of Fortune 100 companies are active in one or more social
media channels, such as Twitter. The ability to listen to a competitor's message
enables a company to develop business strategies and tactics that directly counter that
competitor's initiatives. This helps your company to gain a competitive advantage.
For example, data transmitted by McDonald's regarding future franchise locations is
a key criterion used by Burger King in the selection of its franchise locations. This
gives Burger King a cost advantage in terms of saving market research expenses.

• Cost Control Initiatives

A reliance on relatively low-cost social media channels to market products to


millions of consumers supports a company's efforts to control costs of essential
functions, including sales, marketing and customer service. For example, a company
can maximize its return on marketing dollars by relying on social media to reach
some customers rather than higher cost television advertisements.

• Public Relations

Corporate news can be conveyed to an audience in real time using multiple social
media channels such as Facebook, Twitter and LinkedIn. According to Funk, a legal
or investor relations department relies on multiple social media channels to improve
audience engagement, which is key to the success of efforts to control bad news that
can "go viral" or be quickly disseminated to a large number of social media
participants once the news emerges.

• Sales

Funk states that sales can be increased by adding social media functions to corporate
websites. For example, customer product ratings, "fan" and "email friend" options
serve as ways to engage website users. This leads to user and company engagement
that contribute to increased product sales.

• Recruiting
In "Social Media for Business: 101 Ways to Grow Your Business Without Wasting
Your Time," Susan Sweeney writes that the social media platform is a cost-effective
way to directly reach potential employees in that four out of five online Americans
participate in a form of social media each month. Such a program also is a means to
determine if a recruiting program resonates with potential employees through the
feedback the company acquires regarding such items as the positions advertised and
the recruitment program itself.
*Synthesis
*Conceptual Framework
*Hypothesis

HO:

HA:

Chapter III

Methodology

*Design

This research paper is designed to give information to the readers about the
marketing strategy of Pedro’s and Burgito’s and how can social media strategy have a
significant impact in achieving their business goals and objectives.

This paper is done by collecting information without any manipulation of the raw
data obtained throughout the entire process. The data is obtained by means of
interview. It involves gathering of information that will show the benefits of social
media as a marketing tool. Pedro’s and Burgito’s are chosen as subject for this
research paper. The use of social media as a marketing tool of both business is
carefully examined using (insert theory). The researchers conducted an interview to
gather information from the owner/manager of the two businesses regarding their
marketing strategy - product, price, place, promotion and people - and their social
media strategy.

*Criteria

Research criteria contained data that are gathered from credible authors, articles,
websites and other sources. The two burger restaurants, Pedro’s and Burgito’s, is
chosen for the interview, since both are similar in nature and uses social media as a
marketing tool. The researchers chose this entities because it is located within Butuan
City and (small or micro business?). The data used are relevant with the research and
the questions are formulated according to the objectives set.

*Method of Analysis

The entities are selected by the researchers using the criteria elaborated above.
An interview with the owner/manager of Pedro’s and Burgito’s was conducted to
evaluate the marketing strategy themselves. Also, reviews from customers on their
social media were utilized. The gathered information are analyzed using qualitative
analysis to arrive at a basis for interpretation and conclusion.

Flow of the Research


Chapter IV

Results and Interpretation

*Interview Results

The researchers decided to gather information from the perspective of Pedro’s


and Burgito’s management. The following are the non-verbatim answers of the
respondent from the interview questions asked by the researchers.

Pedro’s Burgers and Ribs is a Filipino-American restaurant in Butuan City. The


business was established on December 8, 2016 by Mr. Pocholo Nikko A. Mones.
Currently, it has two branches in the city located in Capitol Bon-Bon Road and
Doongan Road. They have no clear vision and mission, but they want to provide
customers with high quality food and services and let them experience a Western-
kind of vibe in Butuan City by providing Filipino-American inspired menu. Their
target market are the young professionals in the city. For two years and a month in
the business, they aim to improve the current operation of their business in order to
survive in the market. The business’ goal is to establish its name in Butuan City to be
able to branch out in different cities, such as Coron and Siargao.

Burgito’s is an American-Mexican restaurant in Butuan City. The business was


established on May 23, 2017 by Mr. Ivan Cesar Medroso. It is located in Capitol
Drive, Butuan City. As of now, they have no clear vision and mission since they are
just 8 months in the business. But as a beginner, they aim to generate profit and
survive in business. Their target market are the students and young professionals. The
business’ goal is to establish its name in Butuan City to be able to branch out in
Caraga. They are planning to expand their business to at least 5 branches in 5 years.

Marketing Pedro’s Burgito’s


Strategy
1. Product Their main product is Burger. Their main product is Burger.
They also have Steak, Ribs, They also have Nachos and
Chicken Wings, Shrimp and Taccos, Fries, Chicken Meals,
Cold Beers. Silog, Frappes and Milkshakes.
 Physical The food and restaurant They are the only restaurant
attributes of showcases a western vibe. It who offers American-mexican
the product is the first food truck with food in the city.
or bulb lights in the city.
uniqueness According to the owner,
of the competitors look after their
service uniqueness.

2. Price Their pricing depends on the They have an affordable price


quality of the product they compared to their competitors
will make. They do not and this serves as a competitive
depend on the pricing of their edge for them. Their price
competitors, but they stick ranges from 30 to 130 pesos.
with the price that would
enable them to provide a high
quality food and services.
Their price ranges from 60 to
200 pesos.
3. Place They have two branches The restaurant is located in
located in Capitol Bon-Bon Capitol Drive, where their
and Upper Doongan Road. competitors are also situated.
They are also planning to They think the location is good
open a branch in Father choice because it is less
Saturnino Urios University. expensive for them and it is
They are aiming to dominate convenient for the customers.
the market in Butuan City.
 Products and The customers can order The customers can order online
services are online through their facebook through their facebook page,
available for page, @pedrosburgerandribs, @burgitos, and they can also
purchase and they can also purchase reach them thru their contact
the food and drinks by number. They can also visit the
visiting the branches in restaurant in Capitol Drive.
Capitol Bon-Bon Road and
Doongan Road.
4. Promotion They use social media, They use flyers and word of
specifically a facebook page mouth to gain customers. Even
consisting of almost 5,000 though they have a facebook
followers. They post their page, they do not rely to this.
products and promos online, Their facebook page consists of
boost it, and share it with 600 followers which enables
various community forums or them to reach up to 5,000
pages in Butuan City. They users, however their page is not
currently give coupons to updated. As of now, they are
customers after they purchase still planning to give coupons
which is worth 10% discount to customers. They are also
on their next purchase. advertising their products
During Friday and Saturday, through the LED wall located
they have an acoustic band in the city’s downtown. In
which attracts more addition, if customers purchase
customers to dine in with reached 250 pesos and above,
them. They provide their they can avail a free delivery.
customers good food, good
music for their weekends.
They also personally contact
prospect customers such as
acquaintances through their
facebook page.
5. People The employees work is The employees work is
flexible except for the cook. flexible. Some of their
The employee do not need to employees don’t need training
have an experience since the since they already have an
owner or manager can train experience regarding the job.
them on how to get the job
done. The manager wants to
see the capacity of each
employee based on their
performance.

Pedro’s Burger and Ribs uses social media, specifically Facebook, as a


marketing tool from the very start of their business. They posts the products and
promos that they offer to global forums, pages, or groups on social media. They
update their posts every other day to get more followers and reach more people on
social media. The reason why they engage to social media strategy is because of its
effectiveness. It enables them to connect and interact with their target market and be
open with them. Aside from that, they posts pictures of their customers having fun
and experiencing the Western vibe in Pedro’s. Hence, a lot of Facebook users are
attracted to and decides to come over the restaurant. Most of those customers
recommend Pedro’s to their family and friends after experiencing the uniqueness of
their products and services. Through this social media strategy, customers can ask
questions if they have any concerns or suggestions to them and give feedback
regarding the quality of their food and services. They can be able to contact their
customers or prospect customers without spending too much costs. In addition,
customers find it convenient since they can order online. Lastly, it increases the
market’s awareness regarding their product. It was proven by their management when
they invited an internet sensation named Al Moralde to have a show on their
restaurant. Because of that, they gained more followers and their post do not need to
be boosted. The event has reached to almost 40,000 users on Facebook. A
disadvantage may be the pressure of dealing with the negative feedbacks from some
customers. But, the owner said that they are willing to accept those to improve their
business and address the needs of their target market. As of now, they think that they
haven’t satisfy the needs of their target markets. They still have to improve,
particularly their menu, because they want to have a full blast on their Filipino-
American menu in order to build a name in the business industry. With that, they
believe that they would be able to satisfy their target markets.

Burgito’s also uses social media, specifically Facebook, as a marketing tool to


post on their products online. They engage to this to gain their target market, the
students and young professionals, who are now dominating Facebook. Although their
posts in the page were not updated, it help them acquire sales through sharing their
posts. It was their key in gaining their capital back and earning more. They are also
aware that their target market, the students, look for a place with a good ambiance
aside from good food and services offered. With that, to attract more customers, they
regularly change the lights and the wall design of their store. They enagage on social
media strategy because it is really an effective tool in a business which offers food.
However, they are not really into using it because they prefer promoting their
products through flyers, coupons and word of mouth. Furthermore, one disadvantage
is that complaints from customers are widely spread on social media for just a short
period of time and it is hard to handle those. It has a significant impact as a marketing
strategy in achieving the business’ goals and objectives because through social media
you can access a wide range of market. So, it is easy to show your product and
services and invite people to try it. However, not everything you see on social media
is what you will experience in the actual. Hence, if a business will engage to this,
they must assure that the expectations of the customers will be met and provided.

Based on the feedback of the customers, regarding the food that we offer, yes. But,
they are working out to improve their customer services.

Insert reviews

Insert discussion
Chapter V

Summary, Conclusions & Recommendations

*Summary

*Conclusions

*Recommendations

Based on the results of the interview, survey and findings of the study, the
researcher’s recommendations are as follows:

Bibliography

Celine ARCA – Master of International Marketing 6/6/2012

International Journal of Enterprise Computing and Business Sisira Neti

Vol. 1 Issue 2 July 2011


Developing Marketing Strategies for Enhancing the Use of Solar Energy Products
Anupamaa S Chavan

Marketing Strategy, Fifth Edition O.C. Ferrell and Michael D. Hartline 2011

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