Chapter II

Review of Related Literature

This chapter shows a retrospective presentation of previously written material:

research literature and conceptual that has relevance and significance to the research

under considered.

A. Related Literature

According to Calvin Kennedy's Social Media: The Art of Marketing on YouTube,

Facebook, Twitter, and Instagram for Success (2017), some entrepreneurs see social

media marketing as the next big thing, a powerful but temporary fad that has to be

taken advantage of it while it’s in the spotlight. To others, it’s just a buzzword that

doesn’t have a practical advantage, and there’s a complicated, steep learning curve with

it. Due to the rapid pace in which social media has developed its reputation, some

business owners perceive this as a passing marketing interest, therefore, it is presumed

non-profitable. However, the statistics are illustrating different results. Hubspot

reported that 92% of marketers in 2014 claimed social media marketing was imperative

for their business, with 80% indicating social media marketing efforts have increased

traffic to their websites. 97% of marketers, according to Social Media Examiner,

participate in social media marketing, but 85% of participants are not sure what social

media marketing tools are the best ones to use, as well as how they should be

marketing on social media, to begin with.

According to Wazeen Azizan's Facebook Marketing 3.0 Made Easy (2017), Facebook

is primarily a social media network designed specifically for social interaction. What

differentiates Facebook from other social networks, and what has made it so special is

the plethora of easy to use features that allows people from all around the world to find

and interact with like-minded people even when they are separated by regional and
cultural barriers. Facebook allows people to create online profiles complete with

personal photos and pictures to showcase socially centered occurrences, where people

can list their interests and preferences, as well as post their contact information, so

others can get in touch with them. The site’s popularity, combined with all these

features, has made it the perfect platform to locate long-lost friendships and to meet

new friends. Facebook is also a great venue for entertainment for people from all walks

of life, because they can use the platform to play games, to live chat with Facebook

friends and to share video content. Some of the most popular social features offered by

the Facebook platform include photo albums that can be shared with friends and with

other people, comments on other people’s profiles, and Facebook “groups” which are

often used by families and groups of friends as hubs to share content

privately.Facebook is an attractive platform for businesses, too, because it offers

companies, organizations and businesses of all types to reach an audience of almost 2

billion people in any given month, which is not only important for revenue, but also for

building brand awareness. Facebook can easily help any type of business stand out big

time, thanks to the high rates of user engagement with brands that have a presence in

the platform. This is because Facebook is a way more interactive platform than a

business website would ever dream to be due to its very social nature. Businesses can

have their own Facebook profiles by creating a Facebook page. Facebook pages are

designed to allow businesses, companies, brands, organizations, artists and other

entities, have a window to interact with users in the most popular social network there is.

Businesses with Facebook Pages can upload content to the platform the same way that

any regular user would, with the added benefit of allowing businesses to promote and

market their products and services with laser sharp precision thanks to its meticulously

built advertising platform!

According to Appel, G., Grewal, L., Hadi, R. et al, social media is used by billions of

people around the world and has fast become one of the defining technologies of our

time. Facebook, for example, reported having 2.38 billion monthly active users and 1.56

billion daily active users as of March 31, 2019 (Facebook 2019). Globally, the total

number of social media users is estimated to grow to 3.29 billion users in 2022, which

will be 42.3% of the world’s population (eMarketer 2018). Given the massive potential

audience available who are spending many hours a day using social media across the

various platforms, it is not surprising that marketers have embraced social media as a

marketing channel. Academically, social media has also been embraced, and an

extensive body of research on social media marketing and related topics, such as online

word of mouth (WOM) and online networks, has been developed. Despite what

academics and practitioners have studied and learned over the last 15–20 years on this

topic, due to the fast-paced and ever-changing nature of social media—and how

consumers use it—the future of social media in marketing might not be merely a

continuation of what we have already seen.

According to Bauer H. H., Toma B., Fischer D. (2015), today’s consumer markets are

characterized by an increasing market saturation and product homogenization, two

factors that have led to fierce competition among companies. As a consequence,

consumers are exposed to promotional clutter. This, in turn, decreases the probability

that they become aware of a firm’s communication activities. The corporate website on

Facebook, the so called “Facebook page” or “Fanpage”, has recently emerged as a novel

communication instrument that offers companies the opportunity to break through

promotional clutter by relying on the principle of communication pull. However, research

and practice both lack evidence about the effective implementation and marketing
potential of Facebook pages.

According to Cahyono, Darmawan Budi (2013), businessmen claimed to be easier to

market its products through facebook as the first target of this business is known,

making it easy to communicate with. Facebook marketing is not just a matter of

promotion but there is a lot of value contained in it. The purpose of Facebook marketing

is to build community, to create a series of connected, creating communication,

credibility, sell, mendaangkan visitors.

According to Tosswill, C. (2015), evaluating any aspect of a marketing

communications campaign is challenging, especially when the campaign includes

social media. In the past, social media and paid social activity such as Facebook have

been measured with metrics such as clicks, impressions, likes, comments and fans.

Although these measurements provide an insight into the numbers of viewers exposed

to content and some indication of how well the content is ‘liked’, they are less efficient

at providing an understanding about how consumers engage with the content. The trial

of Facebook Reactions provides an opportunity for marketers to measure such

emotional engagement.

Facebook Reactions provide an opportunity for marketers to gain a better

understanding of how consumers engage emotionally with social media content. With

the potential for more precise measurement of emotional response, these metrics will

allow brands to consider new ways to measure campaign effectiveness in the future.

This will necessitate that marketers will need to consider the emotional objectives of

marketing communications campaigns.