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Is Social Media Marketing Beneficial for Mc Donalds

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Introduction

For companys social media marketing has become a very important strategic operation within the last years due to the changing habits of the population. More than one billion people worldwide are using facebook actively nowadays and the number is still increasing. (Chart no. 1: (Brandt, 2012, Statista)).

Therefore companys need to adopt to this dramatic change in communication and have to be present on social platforms, to stay in customer contact and build relationships (Edelman, D.C. (2010), “Branding in the digital age“).

This term paper deals with the question wheater social media marketing is an opportunity or threat for Mc Donalds, in particular Mc Donalds Germany. Although social media is a must-have for companys nowadays and nearly twenty thousand firms have a facebook page for their business, social media could be a threat for companys. Especially fast food restaurants are often criticised by protestants and social platforms are perfect places to make their criticism public.
So businesses need to evaluate wheather social media is an opportunity or threat for their performance.

My thesis statement is that social media marketing is very effective for companys as well as for Mc Donalds and possible threats do not represent a serious danger for them.

Importance of social media for companys nowadays

Social media marketing is a type of onlinemarketing, where companys use social media for several purposes. There are several possibilities to use social media for business useful, for example foster a good image, increase brand awareness, increase sales or offer support for customers and strengthen customer relations (Onlinemarketing-praxis.de).

More than one billion people are using facebook and other social media platforms nowadays, so through social media companys are able to reach as much people as no other channel is able. The importance of social media is also shown by the fact that 58% of businesses that used social media platforms over a period of three years have incresed sales during this period (forbes.com, 2012).

Social media has become unavoidable if they want to maintain or expand their marketshare.

The value of a “Like“ on facebook: Companys are able to share content among their fans and therby increase the depth of engagement and loyality among fans which generates incremental purchase behavior. Furthermore friends of the companys fans are influenced (Lipsman, A.,2012, „The power of “Like“).

Social media marketing enhances the product: The best thing business can do is to listen to company’s fans and provide them with the content they want. Furthermore companys try to engage customers, manage customers service and therby strengthen customer relationships while satisfying them (Bynum-Degen, K., 2011, Sozialized Marketing).

Counter Argument: On the other hand social media marketing could only be effective if companys are really committed to create an interessting and valuable social media website. If companys are not caring for valuable content for users they are going to “unlike“ this brand, because they do not want to be annoyed by their posts in their newsfeed (socialmediatoday.com).

Mc Donalds in Social Media

Social media marketing is very important for business as such and for Mc Donalds there is no exeption. Quite the contrary, for Mc Donalds social media is a large opportunity. At the moment Mc Donalds Germany is opperating a facebook page with more than 2.2 million fans. Among their fans on facebook they started social activities like “My Burger“ were everybody is able to create his or her own burger by choosing among several ingredients. The five best burgers were then offered by Mc Donalds Germany (mcdonalds.de).

Food and beverages generate strong emotions: Due to the fact that food, beverages and the food culture as such are connected with strong emotions like sociablity and feelgood factors there is a hugh opportunity to get into conversation with the commuity (socialmediatoday.com).

“My Burger“: “My Burger“ was a complete success for Mc Donalds Germany. The involvement was tremendous in 2011, more than 300,000 burgers were developed and revenue increased by 6 percent in comparison to 2010. So through “My Burger“ Mc Donalds developed much better than Burger King, the main competitor of Mc Donalds’ (handelsblatt.com).

Counter Argument: Mc Donalds also experienced the bad sides of social media, when Mc Donalds started to introduce a Social-media-image campaign on twitter. Due to the fact that Mc Donalds did not earn much resonance in the beginnig, the concern bought a so called “sponsored tweet“ whereby also people who did not follow Mc Donalds received image polishing news from Mc Donalds. Many people who are critical of Mc Donalds took this as a reason to spread content which harms Mc Donalds’ image (handelsblatt.com).

Conclusion

To sum it up one can say that social media is a great opportunity for Mc Donalds. Cases like “My Burger“ have shown that through social media marketing companys are able to reach much more people than through traditional marketing tools.
The fact that social media as such is increasing in popularity for human beings makes social media marketing more important for companies nowadays. Through one single facebook fan a company is able to reach all the connected friends of him or her’s. Furthermore companies are able to improve products they offer by listening to customers via social media. That also enhances customer service and companies build strong relationships with their clients.

However there are also negative examples of social media marketing like facebook users that are annoyed by companies advertising in their newsfeed and especially Mc Donalds experienced a little social media disaster. But overall these negative examples of social media do not really endanger Mc Donalds.

All in all social media is more an opportunity than a threat because campaigns like “My Burger“ were a great success fort he concern. More than 300,000 burgers were developed and nearly every fourth german was reached. Furthermore the turnover increased by six percent in comparison to the previous year.

So all in all one can say that social media is a great opportunity for companies espacially for Mc Donalds whose social media marketing was a real success in the past.

Reference List

Bynum-Degen, K. (2011). Socialized Marketing p.42

Edelman, D.C. (2010). Branding in the Digital Age. P.64

Forbes (2012). The Developing Role of social media in the modern business world. Retrieved 8.8.2012 from http://www.forbes.com/sites/moneywisewomen/2012/08/08/the-developing-role-of-social-media-in-the-modern-business-world/

Get Shared, (2013). The important of social media marketing for business. Retrieved from http://getshared.co/the-importance-of-social-media-marketing-for-businesses/

Handelsblatt, (2012). Bei Mc Donald’s perlt es bald. Retrieved 25.02.2012 from http://www.handelsblatt.com/unternehmen/handel-dienstleister/neuheiten-bei-der-fastfood-kette-mein-burger-aktion-erfolgreich/6674690-2.html

Handelsblatt, (2012). Mc Donalds experiences Twitter Desaster. Retrieved 26.01.2012 from http://www.handelsblatt.com/technologie/it-tk/it-internet/social-media-mcdonalds-erlebt-twitter-desaster/6114416.html

Lipsman, A. (2012) The power of „like“: How Brands reach fans through social media marketing. P. 40

Onlinemarketing-praxis.de (n.d.). Social Media with Success. Retrieved from http://www.onlinemarketing-praxis.de/social-media/social-media-mit-erfolg

Onlinemarketing-praxis.de (n.d.). Definition: Social Media Marketing. Retrieved from http://www.onlinemarketing-praxis.de/glossar/social-media-marketing-smm

Socialmediatoday.com (2012). Social Media: Is it necessary fort he food industry. Retrieved 14.12.2012 from http://socialmediatoday.com/aaronkesteloot/1078206/social-media-it-necessary-food-industry

Socialmediatoday.com (2013). Facebook Survey: What users hate about brands. Retrieved 8.8.2012 from http://socialmediatoday.com/amy-birch/1342266/brands-facebook-users-likes-dislikes

Chart no1:

Statista (2012). 1.Mrd. Menschen nutzen Facebook. Retrieved 4.10. 2012 from http://de.statista.com/themen/138/facebook/infografik/638/anzahl-der-monatlich-aktiven-nutzer-von-facebook/

I herewith declare that the following work I prepared is my own without the use of materials other than those cited.

Place, date, signature
Florian Meier

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