Marketing and Social Networking Web Sites - Essay Example

Marketing and Social Networking Web Sites College Table of contents 0. Introduction . 3 2.0. Social Networking theories . 3 3.0. Critical Evaluation of Social Networking.5 3.1. Examples of companies that have utilized social networking to do marketing....5 3.2. Advantages of using social Networking site to do marketing . 7 3.3 Disadvantages of using social Network sites for marketing....12 4.0. Recommendations ..13 5.0. Conclusion .14 6.0. Bibliography...16 Report: Marketing and Social Networking Web Sites. 1.0 Introduction The absolute number of users or visitors to social networking Web sites and their obsession for the area represents a potentially considerable opportunity that marketers have up till now to not fully understood and tapped. Nowadays social networking sites have a greater stronger pull on their users relative to other Web sites. These social networks have now turned into a potentially valuable marketing tool for many businesses. Social Networking was intended for the average individuals to communicate more liberally with the rest of the people. In these picky sites, one is generally able to upload a picture, video and various basic information concerning themselves. It's a straightforward concept that assists build integrity when you are able to put a face to the messenger. 2.0. Social Networking theories Social networking sites like Facebook and MySpace have turned out to be the party lines in this 21st century. They are attractive and fascinating and a powerful tool for communication between people. Learning the way to use them intelligently for marketing can add to any businesses profile. Social networking Web sites provides an important media channel for broadcasting to a diverse demographic, ranging from teens and young to adults, women, moms, prosperous consumers, to elder individuals. In fact experts suppose U.S. ad expenditure on social networks to rise by about 200% by 2011. Consumers react less to conventional media and advertising, and are changing towards consumer-to-consumer communication including mobile messaging, blogging, word-of mouth marketing, similarity shopping sites, and peer-to-peer networks. Study shows that 80% of consumers belief in the advice from online friends, representing thrice as much trust compared to through traditional media. Additionally, one of every three users of the internet visits Web sites comprising of user-generated stuff to aid make purchase choices (Ward, 2007, 3). There are several companies, including P&G, Morgan Chase, Toyota, Unilever and JP Burger King that have successfully leveraged their marketing communications through social networking Web sites to accomplish different marketing strategies. These social sites permit people to communicate freely on anything. However, most significantly allow people to share knowledge that might be helpful to both parties. Numerous common things shared via these sites are fashionable recipes, sites to visit, trustworthy mechanics in their area, superlative place to acquire a steak and still great areas to go fishing. A number of the most well known and established Networking sites comprise of MySpace, SlingAd Videos, Facebook, YouTube, and Twitter. Social Media on the internet is a vast untapped source of leads, projections and partners to business and the good news with this is they are FREE. Thus, in order to take advantage of the social media madness, businesses have to recognize how precisely to monetize this critical untapped resource of prospective business partners. Numerous Online business proprietors have learned the way to establish a Blueprint of themselves over the internet with the rationale of presenting to their consumer that they have used up the time perhaps writing articles, redistribution videos and presenting photos of themselves and their relatives in order for this new consumers not to be intimidated when they contact them through either email or calls. This enables the consumers to easily be capable of picturing a face of the person who is connecting with them. Social networking that marks the beginning to social marketing as a fresh marketing tool and it may be a vast asset if it is engaged properly. Although the benefits are enormous for a business, these tools have to be used in the most resourceful way that is likely. Social marketing offers business the opportunity to get popularity on internet by means of social bookmarking sites as well as social networking website. The extend of success relies on the extend and nature of the social network that is employed. There are a lot of advantages and disadvantages that are linked with the use of these sites in the field of marketing. 3. Critical Evaluation of Social Networking 3.1. Examples of companies that have utilized social networking to do marketing Numerous successful persons are using these sites on a habitual basis to add worth to their business name. for instance on Twitter you may come across Home Depot, Anthony Robbins, CNN, Mike Filsaime and Jay Kubassek among many others that have established a way to communicate with more populace on a daily basis this manner while establishing trust in themselves as well as for their products. Several companies use these social networks for several reasons or objectives: including advancing customer understanding, endorsing issues of social distress, promote goods and services, helping internal information sharing and boosting brand awareness. Nonetheless, the eventual purpose of all single social media websites is building of relationships. This is the lone intention any business is supposed to be driven by when they venture to these social networking sites as it is the same that every individual has when he or she joins a group on Facebook or offering a Tweet. Relationship Building is a vital element to a victorious internet marketing for all businesses and the faster all the companies grasps this idea the better. There are three trends that indicate the expansion of the social networking incident. One being the increasing number of people visiting social networking Web sites, two is the raise in ad spending on social networking sites and three worldwide reach of social networking sites. In current years, social networking Web sites have shown a burst of growth in their figure of visitors. A study by Nielsen/NetRatings in 2006 shown that social networking Web sites got a 47% raise in visitor traffic from 2005 to 2006. Over the same period, MySpace experienced a growth of 367% in the number of its visitors (Kirkpatrick, 2006, p6). During past five years, the utilization of the Internet has gone up, with interactive Web sites acquiring the greatest notice. Multimedia Web sites that encourage visitors to participate in text, audio, still images, animation, video, and interactivity substance forms and society Web sites, like wikis, blogs, and social networking sites that offer visitors with connecting platforms to exchange and pass common interests got higher growth in the number of sole visitors relative to e-mail, games and news. The increase in ad spending on social networking Web sites is another trend that is prompting businesses to move to these social networks. Experts forecast that from 2007 to 2011, U.S. ad expenditure on social networks will increase by almost 180% to $2.5 billion from $900 million, which is expected to increased income projections of the famed social networking site Facebook and amplified spending on sector of social networks. Advertising over the social networks at present represents a small bit of total online advertising, but this is set to increase to roughly 8% of overall online ad spending by 2011 (Vranica, 2007, p10). The worldwide reach of social networking sites is another trend that is drawing the marketers to this site. A multi-country investigation in 2006 revealed that over one-fifth of adults all over the world visit these social networking Websites. Up-and-coming countries, like Mexico, Brazil, South Korea, and China, have the uppermost percentage of Internet visitors' recurrently visiting social networking websites relative to developed countries. Therefore marketers can take advantage of this chance to aim the middle class and well off consumers in these emerging countries. In the majority of the countries studied, not less than two -thirds of the total Internet clients visit social networking sites in a month (Wang, 2007, 15). It is in fact due to these figures that marketers should look into ways to capitalize on this opportunity: for instance in March of this 2009, roughly 61.2 million people visited the Facebook, while in April this year, visitors to Twitter shoot by 3,000 percent. Additionally to this pull, social media may be accessed for at no cost which means, a free way in to prospective clients. 3.2. Advantages of using social Networking site to do marketing The consumer base available at social networking sites is wide and varied ranging from the young to the old, the poor to the wealthy and cutting across all sexes. Marketing through the social sites and markets the businesses to many kinds and varieties of potential clientele. It is estimated that Ninety-six percent of teens make use of social networking tools like blogging and direct messaging and visit online social groups. A study by Pew Internet and American Life Project in 2007 notes that over 55% of teens make a personal profile on a social networking site and almost half take part in social networking actions daily. In general, women utilize social networking sites over men, with 56% of women relative to 46% of men on the online social networks (Hodgson, 2007, P.1). Women more and more refer to social networking sites to come up with purchase decisions. Of women, mothers characterize a powerful consumer population to target through social networking sites. In addition social networking sites are more well-liked by younger affluent consumers and wealthy men. Study reveals that 32% of wealthy men relative to 22% of wealthy women are on social networking sites. Additionally the old are also on the social network sites, for instance 1n 2005, 55 year old people contributed 7.1% of MySpace visitors, a figure that went up to11.0% in 2006 (Darren, 2007, p.3). Social networking websites offers a number of advantages for upcoming businesses. Foremost, they are normally free to join and simple to use, while creating and keeping a detailed and helpful website may be cost high-priced for a number of small businesses, but it is generally affordable. In most cases, making a profile for a business in one of the available social networking sites needs very modest effort and no monetary cost. Furthermore, social networking websites have established themselves realistic and effective ways of advertising. Social networking websites permit businesses to hook up with both customers and other connected businesses. Through linking to businesses in identical or associated fields, many businesses get the opportunity to establish mutually helpful alliances and cross promote one another. For instance, numerous businesses from very similar neighborhood can form an association through linking their social networking profiles. Inhabitants of that neighborhood may too link their individual profiles, offering the businesses way in to a pool of customers. Those alliances of businesses may then utilize their profiles for their intended advertisements. Advertisements that are offline are less focused compared to those that utilized the advantage of social networking websites. Social network have the options of forming groups that enhance networking among the individuals members of the groups. For instance, a secondary height for outreach is LinkedIn's Groups. Presently there are over 150,000 groups, comprising business forums, fan clubs, alumni groups, and conferences (AllBusiness.com, 2008, p.1). For example if a business run an internal design firm, or sell to internal design firms, then it may can choose from over 90 groups that are related to the field. A number of groups are credential-base, while a few are based on geography. The group "holder" approves any person or organization to membership to guarantee validity. The Internet in no way closes, therefore advertising in social networking sites has the prospective to reach a lot of more customers relative to using traditional means of advertising. For instance, an ad that is run on the radio can only run as number times as it was paid for, however a profile on the social network websites can be visited an infinite number of times online. In addition businesses can as well advertise on a number of social networking sites by means of traditional kinds of Internet marketing like pay per click, although not every social networking site provide this type of advertising. The major advantage of utilizing social networking sites to advance business is the ability to establish a network of dependable clientele. Becoming a "friend" of your potential customers lets you to examine their friend catalogs for additional customers. Likewise, being incorporated in numerous people's friend list offers business added integrity and comes as a ringing support. Furthermore, a business profile allows it to keep its clients up to date on any advancement such as new offers and products, specials and extra helpful information. Social networking websites obtain "word of mouth" online, as well as businesses have a lot to gain. Social network site too helps the business understand their client better. For instance, Procter and Gamble (P&G) established an online forum for its feminine consumers to enhance their understanding their needs and purchasing behaviors. The company held that a deep understanding of these customers might enable them come up with more targeted offerings. P&G opened two Web sites targeting at creating online societies and forums for women to exchange their ideas and learn from one another concerning issues like breast cancer and professions. P&G connects one of these Web sites to its client's Choice Award and Capessa to allow women to facilitate connections. The firm's forayed into position social networking, not to endorse specific brands however to, carry out extensive market research of picky customer demographic behaviors (Tyler, 2007, p.2). In accordance to Kristi Colvin, (2009, p.1) the chief creative officer at We Heart and Twitterface, blogging may establish customer loyalty. She considers that blogging can broadcast information regarding a company and thus act as a boost to brand attachment. A noteworthy aspect of enormous customer service is establishing a real relationship with the clients and engaging their perspective, which can be achieved through blogging. So as to have an advantage in the ranking of a search engine, blogs are supposed to be refreshed frequently. An hour to two can be sufficient to make a post (Muncaster, 2007, p.1). A lot of customers prefer an individual touch and this may be feasible through connecting with them through social Networks such as Twitter. Continuing with a constant conversation may be a lot more easily with the utilization of mobile tools like Tweetie and Tweetdeck. In such manner, tweeting businesses can deal with his time however still be able to publicize the company's trademark, fresh products or promotions. Entrepreneurs that have established a network have the extra bonus of getting and sending instant replies to questions, view on brand elements, goods and services ideas and so on all due to rapid-fire conversation like that available on Twitter. With his videos on social network site such as Youtube, gives foreigners a quick look concerning life in other places in the world and help them learn the language, culture and traditions of those people faster. Understanding the interests and values of the customers can be of great advantage to the business as it helps establish some understanding that can assists in customer relationships. Watching a number of viral videos can help a business to learn the way to build a good content, goods and services. In addition posting video clips in social networks such as in Youtubes reaches a wider audience relative to a network TV. YouTube, which is the biggest network for video sharing online, is a best place to do various video marketing. Video Marketing is very important as it helps any company build a good relationship with its stakeholders; more so the new who may be complete stranger. What may be more influential when it comes to establishing trust with a new person on the internet than video A video can much impact on a person as he can watch you move, listen to you speak and hearing your thoughts directly from your mouth rather than reading them on his or her computer. An additional way to build credibility for the business social network site such as LinkedIn is through participating in the Answers forum. For example if it's a travel agent you may want to tour the Business Travel segment to see if you may give or receive any advice. There a proprietor gets to know people to advance their businesses and establish good contacts, however you require get to be acquainted with them a bit prior to promoting the services you offer. Chances are a proprietor may get a connection, whether it's a partner, an individual interest, or a potential client. For the long range, the worth for marketing on social networking websites might be basically the ability to get to niche groups through advertising. The majority of these sites have targeted content advertising with charges that are in reach of even the small businesses. For instance LinkedIn's charges may be as small as $5 for 1,000 impressions and permit users to lay down a budget. 3.3 Disadvantages of using social Network sites for marketing By getting to these social network sites businesses are putting out information regarding their name, location, brand, gender, and several other kinds of information that might not wish to allow others know. The majority people would claim be careful, however no one is able to be certain at all times. This may give imposters the opportunity to pretend to be you either for their advantage or even to disadvantage you. In several of the social network sites there is a possible for letdown of security in both personal and business situation due to scams that may become harassing to both the connecting parties. Whereas many websites apply definite measures to keep such cases of annoyance, online scams, cyber-stalking, and identity robbery to a limited minimum, this always find their way to through these filters. Therefore businesses have the problem of these scams or incorrect information being send to their clients or even receiving such from unreal clients. Thus these sites still remain unreliable for communication in a business scenario and therefore clients have to further go to the private sites of the company to verify such information. Fake advertisements might end up uploading spyware and viruses the computers of all the users. If this is social networking sites are not your type of thing, that it would only be a misuse of time for you. The goal to social networking is that it is believed to be fun, irrespective of if you are only doing it for funs or browsing around for business objectives. That must be reasonable sufficient for anyone, however there are those individuals who don't see the need. For such people, it may be a disadvantage. As the use of online media by consumers continues to grows, advertisers should review their marketing strategies. Marketers can practically take on customers on social networking sites through strategies for instance by placing paid advertising, redistribution or comments or reactions, and putting a link from the social networking websites to a organization's or brand's website. 4.0 Recommendations To establish a social networking marketing that will succeed there are a range of issues that are important to be analyzed prior to proceeding: one is the type of network that is applied, two the trust from users, interaction, and the nature of products that the marketer wishes to advertise. When these methods are applied, there significance or success that are resultant and the negative effects that are associated with this strategy are witnessed. In a marketing situation, there are a variety of tools that may be engaged in social networking sites for various marketing plans. There are many strategies that are of significance from the viewpoint of the marketer. Each day new forums happen and are established with the wish to assist others thrive in their Networks (Skoda, 2009 p.1). Not every of these are established to build a business activity. A number of Social Networkers love the idea of conveying themselves to a fresh group of followers. This is a means to distribute thoughts across a wide spectrum. Due to the way the majority of these sites are created anyone is able to research roughly any topic easier. These disadvantages are something to in fact think about. But not anything is without a flaw, for those of this kind of networking ought to not actually be that much of an issue regarding their safety. So long as they go along with no big mistakes made along the way, then it is all fine. Businesses can take advantage of the Internet trend that continues to grow day by day. Marketing on social networks offers businesses with an opening to reach a broad variety of consumers and place product presentation to enhance brand awareness and progress the perceptions of the consumers. A study in 2007 revealed that advertisers take on consumers on social networking sites to create brand awareness and likeness. As consumers often visit social networking sites, such sites offer an attractive and lucrative channel for creating awareness and branding. For instance the JP Burger King through these sites (MySpace) offers visitors with entertainment stuff on these sites to endorse brand resonance, to add to its brand awareness amongst its target clientele, who often visited that Web site. Also Honda has used such sites (MySpace) to empower consumers to establish the firm's marketing point on social networking sites. This assisted the company create interest for its innovative automobile and boost brand awareness. Social Network Web sites facilitate knowledge sharing among the employees more so when they are geographically dispersed. They offer a forum for firms to engage with geographically isolated employees. Worldwide companies can as well use these online social Web sites as effectual recruiting tools. For instance, IBM's had a strategy of utilizing social networking Web sites to support internal employee relations and facilitate resourceful knowledge transfer. The company targeted to use its virtual field as a communications means, where its management, geographically detached employees, and clientele could convene and talk about its products. The company intended to utilize Second Life as a meeting podium to horde virtual employee gatherings and conferences to exchange knowledge internally. IBM also uses chat room settings to generate brand new ideas, bringing collectively employees, company partners, and clientele. 5.0. Conclusion Social networking Web sites presents marketers with a sound-profiled target audience that share general interests. In particular, companies can utilize these Web sites as platforms to take on their environmental mindful customers in subjects of common interest (Sumita, 2007, p.5). Marketers may also apply social networking sites to endorse issues of social apprehension among their customer stand. Virgin Mobile's had a strategy to partner with a famous social networking Web site to widen awareness and carry out corporate social responsibility amongst that site's visitors and Virgin Mobile's clients. Virgin mobile in 2006 collaborated with YouthNoise, a youth-centered social networking site, a non profit organization concentrating on improving the way of living among the homeless children. This social networking site offered Virgin Mobile a stage wherein its customers would interrelate with one another other on a broad array of concerns, share their opinions, and find means to act to assist their societies. The site too linked the interests of customers with the effort of non-profit organizations. In the course of this partnership Virgin Mobile offered the chance for thousands of youth adults to find out about homeless kids and make a change in their lives. This consequently helps promote the company popularity as it creates a penetration route to the society and ultimately increases the sales and the profits of the company. Social Networking web sites such as Twitter, MySpace and YouTube are currently a continuous growing form of communication than any other kind of social communication. But still these sites vast potentiality remains untapped source of leads, opportunity and business partners for many business and their marketers. 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