Proposal on a New Social Media Policy for Stone Goose Company - Business Plan Example

Running Header: BUSINESS PROPOSAL ON A NEW SOCIAL MEDIA POLICY Business Proposal on a new Social Media Policy for Stone Goose Company BY YOU YOUR SCHOOL INFO HERE DATE HERE EXECUTIVE SUMMARY Growth in social media is explosive year-on-year with many different consumer target segments. An overwhelming volume of small- and medium-sized businesses use this as a viable forum for improving revenue growth, brand distinction, and building more quality relationships with desirable consumer segments. Research has identified that the benefits of social media include higher revenue growth, better word-of-mouth, and the ability to create potent psycho-social influences related to consumer values and needs. It is proposed that Stone Goose adopt a social media policy that includes training in-house bloggers and social media champions to create an interactive social media presence. Accompanied by informative video production by the company for YouTube and other well-visited social media sites, the business will build important brand recognition that will improve its advertising position. Business Proposal for a new Social Media Policy for Stone Goose Company Introduction Stone Goose Company is a struggling business determining how best to improve revenue growth and appeal to diverse consumer segments in the United States. The business provides a new and revolutionary service to many consumer demographics which involves transformation of traditional video content into three-dimensional digital technology and video transfer services to more durable DVD format. Many consumers maintain VHS videos and traditional reel-to-reel home videos and other important heirlooms that are constantly at risk of degradation over time. This creates many psychological and sociological implications for consumers that value and treasure their historical family and social memories that have been previously captured on more old-world, traditional media formats. However, identifying appropriate markets and engaging consumers to consider transformation of their reel-to-reel and VHS videos to 3D and DVD formats has been difficult for Stone Goose utilizing print advertising and direct marketing. To gain more brand attention domestically and internationally, and improve interest in the service in many consumer segments, it is proposed that Stone Goose begin utilizing social media as a tool for revenue growth and to build brand awareness. Why Social Media? Social media is inclusive of social networking websites, social blogs, Internet forums, picture- and video-sharing sites (such as YouTube) and weblogs. Twitter, Facebook and YouTube represent three of the most utilized and respected social media platforms in contemporary society. The benefits of giving Stone Goose a presence within social media is better interactivity and engagement with disparate consumer segments and the ability of the company to establish word-of-mouth advertising that is highly beneficial for revenue growth. Goodson (2011) asserts that in order for a marketer to improve word-of-mouth, they must be perceived as being trustworthy to consumers, be holistically transparent, and illustrate to consumers the values and beliefs of the organization. Currently, Stone Goose has no brand awareness across the country as the current business model and marketing activities are not transparent, hence consumers are unaware of this important service and its benefits to improving lifestyle and enhancing psycho-social needs. Social media provides a platform by which to define the company’s mission, assert its value system and link these to consumer needs fulfillment theories, and build a sense of trust and respect for the company, its brand and its services. Statistically, there is ample evidence that utilizing social media will provide many superior benefits to Stone Goose over that of traditional advertising methodologies which are not providing any measurable return on investment for the firm. A whopping 81 percent of small to medium-sized businesses currently in operation utilize social media and, of this 81 percent, 94 percent engage in social media for marketing purposes (Wagner, 2014). Why is this? Consumer utilization of social media has increased dramatically since 2011. Today, consumers spend 20 percent of their time engaged with social media while on their personal computers and 30 percent via mobile phones (Nielsen, 2012). Furthermore, the total time that disparate consumer segments spend on social media sites increased 37 percent between 2011 and 2012, increasing to 121 billion minutes as compared to 88 billion minutes in 2011 (Nielsen). Hence, consumers are actively engaged in social media as a lifestyle activity, creating ample opportunities to capture the interest and attention of many different demographics. Social Reference Groups Influencing Consumption Behavior Moreover, Steve Olenski, a social media strategist awarded with the distinction as a ranking expert in the Top 100 Influencers in Social Media supported by Social Technology Review, indicates that the number one reason consumers use social media is to read what others in the social environment are proclaiming about various brand and products (Olenski, 2011). Why is this advantageous for Stone Goose? Marketing theory indicates that the influence of important social reference groups, individuals or groups by which an individual compares themselves, is highly important in consumer decision-making behavior (Hawkins, Best & Coney, 2006). The development of loyalty toward a product or brand, consequently, is motivated by social sentiment regarding a brand and the level of approval toward the brand given by these reference group figures (Hite & Hite, 1994). The desire to fit in with social groups is so important that consumers will begin to develop their social identities based on what reference groups feel about a particular brand. Hence, buying the right brand becomes a means to improve social status and convey an image of coolness (DelVecchio, 2002). If consumers buy a product that has not received positive sentiment, they will reject the brand to avoid negative peer judgments about their purchase decision. A person who buys the right brand is considered to be more socially viable and attractive (McAlister & Cornwell, 2010). This phenomenon is not only true in the youth market, but the adult market as well under the concept of conspicuous consumption, whereby an individual procures socially-favorable products as a means of enhancing their social status. Therefore, there are significant social implications for using social media as a means to capitalize on social reference groups and the sociological phenomenon of engaging in product consumption as a method of enhancing one’s social prominence. If Stone Goose is able to create a positive brand reputation and personality that receives social accolades, it will motivate and incentivize consumption of the company’s services more productively. Important Target Demographics It is recognized that consumers who are over 55, the Baby Boomer generation, is one of the most sentimental consumer groups that value nostalgia. When this market segment recognizes that a company or brand is aligned with their personal values, beliefs and ethics, they are more likely to buy products from that organization (Myron, 2012). Statistics indicate that social media usage in the 65+ market increased a dramatic 100% in 2010, representing a viable market opportunity (Norman, 2010). Baby Boomers have some of the highest levels of disposable income than any other consumer segment and actively seek out products that are able to develop and maintain relationships based on shared social meanings and shared personal values aligned with like corporate values. Furthermore, 47 percent of all Internet users between the age of 50 and 64 regularly use social media (Norman), which was an 88 percent growth rate in just one year between 2009 and 2010. The markets between 50 and 65+ are using social media as a means of psycho-social fulfillment: avoiding being left behind in term of technology competency and prowess. Norman (2010, p.2) refers to social media usage for these demographics as “sympathy tools” that are appropriate and relevant to these markets for social support. Hence, if Stone Goose can develop social media content that is relevant to the aforementioned characteristics, values and attitudes of the older consumer demographic, it is likely that nostalgic psychological needs will drive these high resource markets toward wanting to take advantage of Stone Goose’s restoration and transformation services. The Proposed Social Media Policy for Stone Goose Based on all provided statistics, demographic considerations, and potential relationship engagement benefits that social media provides, a reliable social media policy can be proposed for the company. Stone Goose, with the need for transparency and trustworthiness that can be developed with recurring presence and content upgrades in social media identified by Goodson (2011), should be devoting a social media champion to serve as the face and representative of the organization in this virtual environment. This individual will actively search the most viable social media sites, inclusive of Twitter and Facebook, to identify individuals who discuss their nostalgic preferences and family values. Once identified, this professionally-trained blogger will engage consumers and spread knowledge of the service and brand. This will build a brand identity that is enthusiastic and genuine as it pertains to familial values and ethics by building rapport with these important, high-resource markets. Chat rooms and social forums, as well as blog sites relevant to the business model of Stone Goose, would be the focus of daily interactivity in this new position. Furthermore, it is proposed that the company devote a one-time expenditure to produce a short, yet informative video for YouTube and other relevant social media sites that illustrate the process and a before and after demonstration illustrating the restorative, colorizing, and transformational benefits of the company’s services. Periodic discounting, using a code for short-term retrieval, will also provide incentives that will give the company more value perceptions. Engagement in this format should dramatically improve word-of-mouth that is highly critical to revenue growth and establishment of critical brand awareness. Conclusion If Stone Goose adopts a new social media policy, the benefits to the organization will include revenue growth, relationship development with important target consumers, the establishment of brand recognition, and lay the foundation for loyalty to the brand with certain consumer demographics. Consumer utilization of social media as a lifestyle tool continues to grow dramatically year-on-year, improving the likelihood that Stone Goose will become a recognized and respected brand personality. Acceptance of this proposal will make Stone Goose more visible nationwide (and internationally) and will be able to create demand where, previously, none has existed. The return on investment for this new social media policy cannot be over-stated. References DelVecchio G. (2002) Creating Ever-Cool: A Marketer’s Guide to a Kid’s Heart. New Orleans, LA: Pelican Publishing Company, Inc. Goodson, S. (2011). Is Brand Loyalty the Core to Apple’s Success?, Forbes Magazine. Retrieved February 13, 2014 from http://www.forbes.com/sites/marketshare/2011/11/27/is-brand-loyalty-the-core-to-apples- success-2/ Hawkins, D.I., Best, R.J. & Coney, K.A. (2006). Consumer Behavior – Building Marketing Strategy (9th ed.). McGraw-Hill. Hite, C. & Hite, R. (1994). Reliance on Brand by Young Children, Journal of the Market Research Society, 37(2), pp.185-193. McAlister, A. & Cornwell, T. (2010). Children’s Brand Symbolism Understanding: Links to Theory of Mind and Executive Functioning, Psychology & Marketing, 27, pp.203-227. Myron, G. (2012). Conscientious Consumption. Retrieved February 14, 2014 from http://www.demodirt.com/index.php/baby-boomer-trends/consumer-spending/527- conscientious-consumption Nielsen. (2012). State of the Media: The Social Media Report 2012. Retrieved February 14, 2014 from http://www.nielsen.com/us/en/reports/2012/state-of-the-media-the-social-media- report-2012.html Norman, J. (2010). Boomers Joining Social Media at Record Rate, CBS News. Retrieved February 13, 2014 from http://www.cbsnews.com/news/boomers-joining-social-media- at-record-rate/ Olenski, S. (2011). When it comes to Brands, Consumers use Social Media for this more than Anything else. Retrieved February 13, 2014 from http://socialmediatoday.com/steve- olenski/370277/when-it-comes-brands-consumers-use-social-media-more-anything-else Wagner, K. (2014). LinkedIn: 81% of Small and Medium-Sized Businesses use Social Media. Retrieved http://mashable.com/2014/02/13/linkedin-social-media-study/ Read More