November 24, 2014

Written by Kristina Persson


Changes in technology over the past decade have influenced the way consumers engage and participating in activities online. The web is an environment for creation, consumption, and socialising (Seraj 2012). Marketers realise the potential to capitalise on consumers as creators, advertisers and advocates for their brands through co-creation of products and experiences, in turn generating value. By understanding roles consumers take when engaging online, marketers can better target, reach, engage and interact with the right audience for their brand. 



This paper provides an overview of online marketing, branding and consumption, to explain why and how marketers can adapt their strategies online to create value. Consumers participate on social media platforms to fulfil personal needs, which can also generate value for brands. This paper seeks to explain the concept of value, the roles consumers take, and provide considerations to 'why and how should marketers generate value from consumers?'


Ideas presented in academic literature will provide the basis for defining these concepts. The analysis will outline why and how marketers can adapt their activities in the context of the internet. Finally, some conclusions will provide a summary of the findings and encourage readers to ask themselves where they find value when engaging online. For brand managers, taking a marketer's perspective, they may consider where are potentials source to exploit to capture and create value and meaning for their brands. Readers may consider their own consumer roles, and how their social media activity might appear outwardly to their friends, communities, followers, and the millions of internet users with access their information, blog posts, comments and conversations online, and marketers who may be monitoring them (Varadarajan & Yadav 2009:19). The paper is presented in two parts, the first part outlining the theoretical framework and definitions, and the second addressing the 'why' and 'how' aspects of analysis and discussion about marketers generating value from consumers.


Theoretical Framework

This paper is written from a social viewpoint, considering roles of marketers and consumers and social interaction online, with a theoretical perspective of postmodern consumerism (Firat and Venkatatesh 1995:259). Postmodernism expresses the possibility to create spaces outside the market system, in a 'lifeworld', for example in social spaces, community and civic life (Firat and Venkatesh 1995:259) to explain consumption occurring in these spaces, beyond pure markets. Zwick, Bonsu and Darmody (2010:168) explain that brands are becoming embedded in these 'consumer lifeworlds', which means marketing itself is entwined with consumers, who are producing and consuming, and partners in brands creative and production processes (Zwick, Bonsu and Darmody 2010:168).


Value creation is considered from a perspective of neo-liberal Marxism, where marketers manage and seize creativity, knowledge and communication to generate economic value (Zwick. Bonsu & Darmody 2008:177). Seraj uses a definition that explains value as consumers perception and assessment of 'what is received and what is given' (2012:209). Co-creation and constructing 'productive social relations' for capitalist growth (Zwick. Bonsu & Darmody 2008:177) is used to describes how marketers can generate value from consumers interacting with corporations, or brands, and with each other (Zwick. Bonsu & Darmody 2008:177; Winer 2009:109). Brands manufacturing involvement and emotional and social attachments around products, which gives them value (Zwick Bonsu & Darmody 2008:186).


Definitions and concepts


'Traditional marketing' (Armelini & Villaneva 2011:29) 'old' marketing (Zwick, Bonsu & Darmody 2008:164) or 'offline marketing' (Christodoulides 2009:141) is characterised by its one-way nature and corporate brand-directed messages broadcast to audiences. This style of marketing has also been called 'one-sided', where marketers and brand hold the power and information and opportunity to have their say (Christodoulides 2009:142) and consumers reactions to marketing are limited by their expression of choice to participate in the market, and purchase, or not (Muñiz Jr & Schau 2011:209).


New marketing is characterised by its interactivity, and digital nature (Winer 2009:110). Electronic versions of traditional 'one-way' advertising in banners, billboards and static messages and content online are found in addition to podcasts, video streams, as well as platforms of social communities where two-way and multi-way dialogue is possible (Winer 2009:110; Muñiz Jr & Schau, 2011:209; Seraj 2012:209). Akar and Topcu  highlight that marketers, involvement in social media, and communications affect the internet, and the lives of people using the internet (2011:58).



Consumers engage in social acts of consumption and production, symbolic acts, in moments where meanings, relationships and social definitions are interpreted and reinforced (Firat and Venkatatesh 1995:242). That is, activities and social exchanges that people take part in generating meaning.  In social online communities, people fulfil individual and social needs such as desires to seek information, experiences, express creativity, develop identity, and escape (Seraj 2012:209, Eisenbeiss et al 2012:12).



Varadarajan & Yadav explain the market place extending beyond the physical market, into electronic, and a technology and internet-enabled one (2009:11). Eisenbeiss et al. (2011) describe Virtual Worlds, where people assume identities, have experiences, cooperate and interact, and take part in virtual activities, such as travel, business and relationships, in virtual worlds with virtual markets (2011:5,17). This may be one clear 'lifeworld' that can be understood as a social community, however market and social transactions or 'exchange processes' do occur (Eisenbeiss et al. 2011:5; Firat and Venkatesh 1995:240). 


Online marketing, can therefore be understood as social marketing, groups of people, including consumers and brands communicating in all directions - that is, creating, receiving, and responding to messages. This is enabled by the internet and communications technologies, particularly with Web 2.0 tools (Christodoulides 2009:143; Varadarajan & Yadav 2009:21) and virtual worlds (Eisenbeiss et al 2011).   


The types of social environments online include webs of content, which have value (Akar &Topcu 2011:35). Social media channels allow observers to become participants are platforms for influencing users (Hanna Rohm & Crittenden 2011:267) and  include, social Media channels such as Twitter, Facebook and other Web 2.0 platforms, including Youtube, MySpace and Flicker (Akar & Topcu 2011: 36; Hanna Rohm & Crittenden 2011:266)



Park, Jaworski & MacInnis (1986:135) define branding as activities that firms, or corporations,  engage in to convey an image effectively to a target market, to maintain a market position and improve performance. Brand Concept-Image Management is a complete system for firms to develop, maintain and control brand image (Park, Jaworski & MacInnis 1986:135) and manage it long term (Park, Jaworski & MacInnis 1986:144). Managing a brand's image is considered important as a brand itself, alongside firms resources and products, can be seen as something worthy of long term investment, and source of long-term competitive advantage (Park, Jaworski & MacInnis 1986:144). With or without physical presence, brands are sources of economic value, which makes them something worth valuing and protecting (Christodoulides 2009:141)


Christodoulides view of branding incorporates activities that take place in social networks, as dynamic environments enabled by computer and technology (2009:141-142). Rather than managing, brand 'hosts' conversations and manage customer perspectives about their experiences with brands based on their products and services (Christodoulides 2009:143). This branding activity occurs  in social media spaces, in groups, blogs, networking sites, where consumers create, define and dictate messages and advertising about the brand  (Christodoulides 2009:143). Marketers can listen and follow the conversations and messages being communicated in the social media ecosystem (Hanna, Rohm and Crittenden 2011:266).


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