Evaluate the importance to SBC of using social media to maintain and increase customer loyalty.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. Knowledge:
2. Social media definition: social media is any digital tool that allows users to quickly create and share content with the public. Social media encompasses a wide range of websites and apps such as Instagram, Facebook and YouTube
3. Role of social media in marketing: Element of the promotional mix within the marketing mix.
4. Links with gaining new customers and retaining loyal ones (customer relationship marketing)
5. Marketing strategy, including budget, objectives, integrated marketing mix.
6. Application:
7. SBC are expanding and launching new services, such as different business qualifications to different target markets
8. Need to keep business customers loyal (CRM)
9. Need to communicate new technology and Business courses to existing and new customers/offer launch promotions
10. SBC may need to market new government sponsored technology 'starter' courses, who is target market? Easily reached by social media?
11. References to cost of web-based promotion versus traditional.
12. References to reasons why customers (business and individual) may find web-based/social media promotion and communication easy/difficult to access.
13. Cost of website development of $250 000
14. Specific references to options 1 and 2.
15. Analysis:
16. Development of why social media/online marketing may be important or not - will it retain customers? How might this improve competitiveness?
17. Likely implications of different target market for different services B2B and B2C. SBC may need to use different social media platforms in order to reach different segments of the market this will increase costs
18. How will the use of social media affect different aspects of marketing strategy (not just marketing mix)
19. Possible impacts on company image and reputation of social media presence
20. Social media communication builds customer loyalty as quick responses to customers' messages can create a reputation for being responsive to customer needs.
21. Unhappy customers can quickly send out negative messages about SBC. This will be visible to SBC's target audiences through social media and review websites. This can damage SBC's brand and lower sales.
22. Relatively low cost providing a more effective use of SBC's limited marketing budget.
23. Evaluation:
24. Future use and the need to keep up with new developments.
25. Importance of maintaining and updating.
26. Judgement as to how important social media may be – what else may be more important?
27. Possible groups of customers who may be 'missed' by concentration on online promotion, what percentage of customers are the 'social media generation'