The Impact of Social Media on Businesses - Research Proposal Example

The impact of Social Media on Businesses Social media can be defined as a tool that links different online groups of people around the globe. This is only achievable by the use of desktop or mobile based technologies, in order to share their vast knowledge, interest, activities, and life experiences in form of interactive dialogue. Moreover, social media provides users with different range of facilities as simple as private chat to multi-video conference to the exchange of standard e-mail messages, to the participation in discussion groups. Targeting social media is a top priority for many business executives and entrepreneurs today. This is because; they will use the social media as a platform to advertise their products to their potential buyers (Zarrela 2010). CHAPTER 1: INTRODUCTION 1.0: Background According to Silver (2009), it is incorrect at this time and age to consign social media as a new phenomenon. Rather, social media should be accepted as part and parcel of the society. Social media has become an integral part of modern society. People do not need to log in to computers to be connected with friends. Nowadays most people are connected on these sites through their mobile phones. For in this way, they receive notifications just like receiving a text message. This means that they are connected on a 24/7 basis. Either way, the idea of social media application is just becoming so simple and easy to use for all types of age groups. Of late, social media has contributed greatly in building more steady governments, and in promoting to more democratic states. For example, Facebook and Twitter, contributed highly to the Arab spring. Through these two social networks, the people of Libya, Egypt and Libya managed to bring an end to abuse of power and dictatorship (Greenslade 2011). As of now, these social networks have brought together people of Syria, who are threatening to topple down the rule of Al Assad, the current president of Syria. In democratic states like Spain, people have used the social media to occupied public plazas nationwide, with a view to protesting high unemployment and exclusionary politics. In Israel, for instance, ordinary citizens from both right and left have put their differences aside and unanimously united in mass demonstrations against the high cost of housing. In India, furthermore, a single campaign against corruption went viral, bringing thousands to the street in support. 1.1: Business Opportunities According to Newman (2011), there are myriad business opportunities that are associated with social media marketing. Many businesses persons will be able to promote their businesses in the best possible way, by creating an intact network of potential customers as well as followers. If they are able to build this network of followers and loyal visitors, there is a big chance of wooing their prospect buyers, and future customers. Compelling words of advertisement and selling points must be established in every social media optimisation. By placing their business and product names all over the social media, marketing collaterals will then increase the opportunity of generating traffic that eventually be converted into actual purchase and sales. Coca Cola, Volkswagen and AT&T use social media to promote and advertise their brands. “Social media is not a tactic that stands alone from your advertising campaigns.” (Newman 2011) This trend is slowly moving towards small companies, which have great success with social media than larger companies. Smaller businesses do not have to invest to create a high impact. 1.2: Reasons why small businesses target social media To connect with customers For visibility For elf-promotion It is a cheaper method in terms of marketing 1.3: The advantages of the social media on businesses It can be used efficiently be utilised to create cost effective strategies and campaigns that can create viral results. The social media has the power to drive traffic to businesses websites. It is able to bring people together, especially when promoting global products, or cause-related campaigns and ideas since it allows people from the different geographical location to meet at a single point and express their views. It can be used to attract attention to business sites, products or services. It can be used to further build loyalty and long term relation with the audience. 1.4: The disadvantages of the social media on businesses The wrong strategy can put the business at viral social disadvantages and may even damage their reputation. For example, when they make a mistake by going unprecedentedly offline, few people will know. Making such as a mistake in front of hundreds or thousands of online audience would, after all, reflect straight away on their sales. Using social media for marketing and advertising could be more time consuming then the company expects To have a full effect the company needs to understand how it works, when, and how to use it and which channels to focus on depending on their end goal of using social media. Social media could have a negative influence on the worker productivity. Employees my waste valuable time using social media channels such as Facebook and Twitter. They can also use it to attack the company’s reputation. When social media is used excessively or in the wrong way, it could lead to serious detrimental outcomes on both mental and even physical health of individuals. 1.5: Research Questions According to Binmore (2007), research questions are important. In the course of the research, I will be required to answer numerous questions. By answering these research questions, I will be able to determine the success of this study. Additionally, the degree to which I am going to address these questions is going to determine in effect the degree of the research. Here are some of the research questions for this study. What are the various social media strategies that are available for businesses? What is the best way to analyze these strategies to come up with the best? Which are the excellent strategies that can be adapted by the businesses? 1.6: Justification for the Dissertation Russell (2006), is of the view that there are always numerous studies that are been carried out in any given field. For that matter, any new study within the restraint need to be justified on the ground of importance it is going to bring to the field. This been the case, the research I’m going to carry out will be of extreme importance. The findings of my research are going to be of exceptional importance to the business which uses social media as a platform for advertisement. Granted the rate at which social media is having on businesses, setbacks are inevitable. Given, these bottlenecks range from competition. CHAPTER 2: THEORETICAL FRAMEWORK Every research should be rooted in theory. This is because theories are tools that notify the gathering and construction of important knowledge in any field. This dissertation is going to be based on the theory: game theory. Game theory is an arithmetic method of determining decisions when one is given a competitive situation (Churchstone 2009). CHAPTER 3: RESEARCH METHODOLOGY 1.7: Sample population Without doubt, many companies use social media as a medium of advertising their products (Kumar 2005). This means that I will have to edge the extent of the dissertation and focus a lot more on a particular segment of the population. Given, the sample population for this dissertation will be firms based in the UK, which use social media. Additionally, I will edge the scope of the dissertation to include those firms that provide social media services. 1.8: Unit of analysis For this case, the unit of analysis for this study will be examining the competition that faces many businesses. The unit of analysis will also include strategies that the businesses will use to avert this competition. 1.9: Target population I consider this dissertation to take the structure of a survey. My considered target population will be businesses which use social media to advertise their products and services. 1.10: Unit of observation The unit of observation for this study will be the UK based firms which use social media as a medium for advertisement. CHAPTER 4: CONCLUSION There has been exceptional growth in the use of social media by business over the recent years. This influence has been fuelled by the unprecedented development of technology. As the demand increases, the growth of businesses also increases relatively (Mundorf 2002). However, there are numerous setbacks which these firms have to assert with. These bottlenecks include, amid others, change in consumer tastes and preference, and the augmented threat of internet scam. Nonetheless, the biggest setback that these firms have to content with is the frenzied competition. This is because there has been propagation of online business as the industry grows (Churchstone 2009). This research proposal is a comprehensive explanation of the study that I am aspiring to carry out. I will be analyzing the strategies that firms adopt to fend off competition. I will conduct the evaluation using the game theory view. References Barnett, Emma, “Jeff Weiner: Going Public is a Major Boost for LinkedIn” The Telegraph, Saturday 14, 2011. Binmore, Ken. 2007. A Text on Game Theory, New York: Basic Books. Churchstone, Fredrick I. 2009. Challenges in Online Business Management, New Jersey: McGraw Hill. Greenslade, Roy, “Arab Springs Revolutions Fail to Provide Greater Press Freedom” The Guardian, Thursday 13, 2011. Kumar, Ranjit. 2005. Research Methodologies, New York: Basic Books. Mundorf, Norbert. 2002. Global E-Commerce and Online Marketing: Watching the Evolution, Connecticut: Praeger. Newman, Andrew, “Brands Now Direct Followers to Social Media” The New York Times, Wednesday 3, 2011. Russell, Winston F. 2006. Theories in Scientific Research, Prince NJ: Princeton University Press. Silver, David. 2009. The Social Network Business Plan B: 18 Strategies that Will Create Great Wealth, New Jersey: Wiley. Zarrela, Dan. 2010. Social Networking for Business: Choosing the Right Tools and Resources to Fit Your Business, New Jersey: Pearson Prentice Hall. Read More