Popularity and effectiveness of social media marketing for businesses

Popularity of Social Media Marketing Among Businesses

Viral Marketing (social media)

Social Media Marketing

Social media are a shift in the way people read, share and discover information and related contents. This is taking place through the internet in the form of social networks (example Myspace, Facebook), blogs, music and video portals (example YouTube), micro blogging (example Pluk, Twitter) and news aggregators. The possibility brought through Web 2.0 is an evolutionary convergence allowing two way communication platform that harnesses collective intelligence. Social media marketing caries potential similar to a double-edged-sword (Trusov, Bucklin, & Pauwels, 2009).

Reasons for Exceedingly Popularity of Social Media Marketing Among Businesses

Outwardly, communication activities by businesses of all sizes have changed owing to growth of social media globally (Martin, 2009). Unlike the traditional channels of communication, social media provides a platform for existing and potential consumers to share opinions virtually. This transfers power to build or break a brand from the business owners to the market consumers. Businesses struggling to develop a communication channel with the market bank on the social networks platform to obtain real-time reactions from the market. The potential in monitoring public sentiments on a round-the-clock basis on the social network spaces allows quick attention to complaints, consumer preferences and potential revenue maximizing opportunities. Businesses use the social networks to conveniently avert potential disasters that are likely to boil to apprehensions (Myron, 2009).

The growth of social media marketing is present in rising investments made by companies and businesses towards marketing. (Dailey, 2009) observes that large companies are allocating up to 10% of annual marketing budget towards social media marketing programs. Small business allocations to such ventures are approximately 30% of the total marketing budget. The proportions in budgetary allocation will increase with high expectations in the efficiency of the social networks. Social media marketing have better outreach to the market stretch as well as, a higher return on investment (ROI) *(Dailey, 2009).

The growing preference for social media marketing by business of all sizes is not only attributable to the expected return on investment (Donna, Hoffman, & Fodor. M., 2010). In comparison with the traditional marketing media, social media marketing has a better accuracy in targeting the core objectives of advertising a product in the market. Marketing seeks to define, build recognition, increase trials of the product or service, expand products or service, bolster reputation and build loyalty (Donna et al., 2010). Social media networks provide this and more through the avenues of interactions that encourage market participation. This perspective offers efficiency in defining a product and authenticates candidly market opinions on the product. Other marketing media fail to offer interactions that can lead to greater impact on consumers' decision owing to lack of participation forums.

Social media has transformed the marketing venture through allowing willful participation of potential consumers in obtaining and reacting to information. Audio and vision marketing advertisement constantly interrupt potential consumers during their normal viewing/listening. According to Dailey (2009), it compromises the willingness of potential consumer to embrace information presented in this form. Social media marketing is different in that the consumers exercise the derogative to obtain the information. Willing participation in reading and airing views about a product opens a channel for potential and existing consumers to absorb more information on a product or service. In the real world people hold value the opinion of their close associates. The social network media offers substantial volume of affiliation magnifying the potential influence people's opinion will have on personal choices. The social media in this perspective have a bigger influence owing to reach and relations created compared to other media (Myron, 2009).

Businesses are compelled to reorganize and rethink their strategies and communication measures in reaching out to the market. The influence of each consumer's opinions on brands and products serves to create powerfully coordinated forces that raise awareness. Social media marketing is preferred by business owing to the transfer of control to the customers that lessens the burden of public relation in corporations.

The time spent on social network has also influenced business preference for social media marketing. It is observed by Dailey (2009) that the average person revisits their social network site at least four times a day. This behavior provides an opportunity to gather valuable information on individual interests that advertising business target for purposes of selling their brands. The interactions generated from the frequent visit to the site builds opinions on a product allowing for brand recognition and trials by consumers. Business growing preference for social media marketing is not ill-advised given the potential the discussion forums generate in influencing the brand performance.

Advantages and Disadvantages of Social Media Marketing For Business Entrepreneurs

Advantages

Social media framework outlines a measure for a global community engagement omitting the apprehension of the long-term value of investment in the processes (Joel, 2009). The form of business to client engagement presents opportunity for a business to connect and build a community of loyal consumers. The increasing affiliation of consumers is an investment that provides leverage to the company against potential competitors in the market. The rapport and trust resulting from the firm and consumer connectedness builds a durable business relation hard for competitors to encroach upon (Joel, 2009). Businesses are likely to look at the short-term influence the social media provides but, it also extends the potential of sustainability in the market and brand loyalty.

Social media marketing allows businesses to enhance their customer service experience through brand configurations that reflect customer needs (Dailey, 2009). The responsiveness of a company to consumer needs in general improves the perception of the company in global magnitude. It will in a tremendous way contribute the customer retention and in a powerful way contribute to sustainable business.

Disadvantages

Social media marketing provides an open space for companies to interact with consumers. These interactions are fruitful only to the business entrepreneurs receiving appraisals or positive criticisms on their brands (Myron, 2009). It is also expected that, the company will respond to the reactions shared by consumers in the market. Business to market interactions in the social media can be used to tarnish brand image by competitors in the market. This compromises the essence of objective interaction and sets in the need for marketers to defend their brand. Objectivity in the interaction is likely to be lost where marketers participate in shaping people's opinions through the same social network media. Disgruntled employees can also use the avenue social media provides to discredit the business, its products or services.

Businesses have significantly lost the power to control the perception of their brands through the evolution of social media marketing. The business entrepreneurs come to terms with challenges of engineering their desired product image owing to the influence of social media. Marketing objective in businesses is an uphill task of attending to matters relating to brand as far as public misgiving may arise. Owing to the spread of social media, a business facing numerous public misgiving may see its brand crumble (Joel, 2009).

Ford Fiesta Social media marketing

Ford is a car manufacturing company that traces its origins back in the U.S. Over the years, the company has brand reputation in Europe and other countries around the world. In a bid to bestow a reputation in its place of origin, the company considered social media marketing to broadcast publicly experiences by independent agents with the car. The independent participants were chosen in accordance to their outreach potential to the masses through social media. The participants included bloggers, filmmakers, local celebrities and social networkers who would readily document and share their experiences with the car.

The stories and were posted in individual social networks as well as the company's campaign web site dubbed FiestaMovement.com. The company gave the participants the derogative to say and do what they wanted as regards to the car. The result of the brand-rebuilding campaign was that a five million dollars campaign realized 60% brand name recognition. This also raised a following into the company's activities that contributed to a deeper understanding on market preferences in the region. The social media advertising campaign undertaken by ford substantially raised Fiesta's dominance in the market with a significantly small expenditure outlay.

Best Buy's Twelpforce

Best Buy took advantage of the market need for information on electronic equipment to improve its brand performance in the market and increased customer confidence in them. The company's CEO Brian Dunn is one of the few CEO who actively participates in the social network "Twitter." Dunn observes that, people use social networks to get information on the electronic equipment or even advice on equipment's performance. To him social media are a platform that allows people to gather information from respective interactive networks. The notion of garnering information through a social network is one that leads to forums and debates even with experts throwing in ideas and directions on a topic.

Dunn considers the organization to be best placed to offer expert advice and information on electronic equipment since they are retailers in the industry. The retailer launched the campaign in 2009 on Twitter where up to 3000 active employees of the company participate. The employees participate in discussions raised by customers of potential buyers of electronic items. With this involvement, Best Buy manages to sustain its presence in the market through consumer knowledge. It has also been possible for consumers to show their confidence level in the retailer owing to their expert advice through the social network. The company in this case is not seen as undertaking a direct marketing campaign. The retailer has managed to pull the interest of a wide market and involved them in a social network that serves their needs. Best Buy considered launching an independent social network website; BByfeed.com. The site is dedicated to assisting potential and existing customers to get value for their money.

Impact Social Media will have on Business in the Next Decade

The business environment has seen substantial developments in the past few decades. The forms of business and the ways people conduct business has changed to reflect most of these changes. Technological advancements have played a significant role in influencing in determining the forms of business that are development and the operation measures exiting businesses will take. Social media developments are part of the technological changes that have influenced business. Growing trends in social media are expected to influence business operations in future.

Social Media marketing has been embraced by a wide spectrum of businesses seeking to maximize their consumer outreach. The growth of social media to the extent of breaking the distance barriers continue to create a unified global business environment. Social media are expected to play a prominent role in business communication and continue to influence borderless business transactions. The continued use of social media for communication and insight gathering will influence business perspective on products and services to reflect consumer aspirations. Business managers' role will change from brand creation to that of merging different ideologies in the market to develop a suitable product for the clients' needs. Businesses will also face the challenge of increasing their product and service range in a bid to accommodate the insights received from clients. With this in perspective businesses will benefit from accurately targeting the market needs and minimizing cost in developing products on trial and error basis.

Traditional marketing undertaken by business will shift from giving detailed information on the products and concentrate on giving information on availability. The expansive role of marketing will be reduced there by availing more funds for business to develop products that are customer need specific.