Business Web Innovation - Case Study Example

Name: Tutor: Title: Business Web Innovation Institution: Date: Executive summary The growth of internet and social networking sites has created a vast arena, offering more opportunities for businesses, especially small to medium sized businesses to sell their services and products to a worldwide audience faster and effectively. Given the strategic significance of the small to medium sized enterprises sector to job creation and growth and the huge base of present internet users and potential users, the success of small to medium sized business attaining business leverage from social media is vital to the future of worldwide economies. Small to medium sized business stand to gain considerably from the benefits and opportunities social media provides to businesses. Thus, the utilization of social media is broadly viewed as vital for the competitiveness and success of small to medium sized businesses within the emerging worldwide market. Introduction Businesses are searching for novel technologies to achieve their distinctive business needs and to position themselves in order to be able to take advantage of the global shifts in business activities. Social media refers to mobile and web-based technologies utilized to turn communication into an interactive dialogue amid communities, individuals and organizations. Both large and small business requires information to succeed in modern day changing business environment. They need to be capable to utilize information and target markets through the use of social media applications. The expansion of social media has created a huge arena, offering more opportunities for small to medium sized businesses (SME) to be able to market their services and products to a worldwide audience. This report looks at relevant social media applications relevant to small to medium sized businesses and how businesses can fully exploit these applications. Social media applications Identification and description of relevant social media applications for a small to medium sized business The most common social media applications for small to medium sized businesses include twitter, LinkedIn, You Tube and facebook. According to Kerpen (2011), Twitter is a popular social networking site utilized by companies and individuals. Companies can utilize twitter to expand their social networks and thus access diverse perspectives and more information. Twitter permits organizations to be in direct contact with customers and also offers a platform for organizations to easily communicate with customers. Customers are free to enquire or give opinions on organizations; services and products through twitter. Subsequently, these organizations are able to quickly respond to questions and know the needs and wants of customers, assisting to offer the best services or products to customers. Facebook is a social network that allows a company to offer photos, videos, and descriptions of its services and products. Facebook videos can display when and how to utilize a product and may also involve testimonials of other followers who comment on product pages for other users to see (Kerpen, 2011). Companies use blogging platforms to create an environment for online connection with clients. Companies that identify the need for accessibility, originality and information utilize blogs to make their services and products distinctive and to reach out to a wider audience. According to Kerpen, (2011), blogs permit a company or product to offer longer descriptions of services and products. Blogs can also entail testimonials and can link from and to Twitter and Facebook. Blogs are frequently updated and act as promotional methods of attracting and retaining customers. LinkedIn is a professional business connected networking site that permits businesses to develop professional profiles as well as profiles for their businesses to network and meet customers. LinkedIn offers its users the chance to create business partners and sales leads. Members are able to utilize company pages that are identical to Facebook pages to develop an arena that will permit businesses to promote their services and products and be capable of interacting with their clients. You Tube is a popular social media application that allow enterprises to promote the services and products they provide in a manner that suit target audience, It offers web based videos where users are able to access and freely upload video. It is free for commercial utilization, permitting organizations to promote their products and services (Kerpen, 2011). All these social networking sites provide options to create pages and profiles, wherein small and medium sized businesses are capable to advertise their services and products. Qualman (2009) notes that social media sites like Twitter, LinkedIn and Facebook have dramatically changed the manner in which people and businesses interrelate with one another on a worldwide scale. They have also reformed the manner in which organizations promote their brands, distribute and advertise their services and products, and network with consumers. In order to connect with and reach the increasingly digital marketplace, several organizations are recognizing that they should maintain a dynamic presence within the social medial world, because that is where majority of their consumers are. Social media platforms boost business, build buzz and serve small and medium sized businesses at no-cost or low cost marketing tools. Social medial enables small to medium sized businesses to connect with other businesses and consumers in manners that conventional internet portals such as Google search and web pages don’t permit (Qualman, E., 2009). How small to medium businesses can fully exploit the social media applications Social media is turning into an indispensable portion of the marketing mix for several businesses and an excellent way of reaching to clients and customers. Social media is beneficial to small to medium sized business because it is less expensive. Conventional media may be extremely costly, especially for SMEs. Zarrella (2008) argues that social media applications are entirely free to utilize and the sole cost that businesses incur is the time spent when updating profiles along with interacting with contacts. The low price of entry to the social media makes it especially useful to small and medium sized business who usually fined the costs connected with conventional media prohibitive Social media channels provide unparalleled chances to interact with clients and consumers and build relationships, hugely as a result of their realtime, interactive nature. Businesses can test ideas, source feedback and directly and quickly manage customer services online in a manner that traditional media can’t. According to Gillin and Schwartzman (2009), whist conventional media only permit one way communication, social media applications offer consumers the opportunity to choose the frequency and form of messages to send out and receive. Social media permits organizations and small and medium sized businesses to develop, share and communicate content on internet. So as to fully exploit social media applications, small to medium sized businesses are required to understand the landscape of social media operates and to make sure that their online activities match with their offline marketing. To strategically implement a large number of social media applications and to select the ones that effectively work for every unique organization, it is important for business to understand how these social media applications serve for communication, entertainment and collaboration. Small to medium sized business can fully exploit the benefits of social media applications if they use it for communication, entertainment and collaboration (Gillin & Schwartzman, 2009). Social media collaboration tools like, blogs, video sharing sites and review sites permit more users to collaborate, self serve and potentially act as an endorser for small and medium sized companies. Social media effectively works because individuals are highly likely to trust peers other then organizations. Social media offers people the power of mass collaboration which supports and serves small organizations in a unique manner. Through creating and tapping useful collaborative options, social media brings individuals together to exchange information and share information. According to Kerpen, (2011), the most significant reason why small to medium sized business can effectively exploit social media s a marketing tool is because it is fun. Social media applications allow people to air their voices, be listestened to and to enjoy themselves. SMEs are required to be situated where their target customers are. In modern days, several people are on Linkeldn, Facebook, and Twitter, majorly because it possesses entertainment value. Sites such as LinkedIn and Facebook are turning out to be the novel databases since they are fun and fast. Individuals are highly likely to update their LinkedIn and Facebook information. Small and medium sized businesses can thus exploit social media’s entertainment aspect to create their online database of connections and contacts, be discernible to prospective clients (Kerpen, 2011). Examples and evaluations of current use of social media applications within business Businesses, both small and large, are benefitting considerably from customers shift to novel media outlets like social networking sites as a means of obtaining information. Originally, companies emerged on the with conventional individual organization website. Nevertheless, the evolution of new media has changed the manner in which companies market their services and products trough the new media. In modern days, several organizations both small and large, have started to focus their efforts upon collaborative websites entailing and not restrained to social networking sites like Facebook, You tube, and Blogs. Organizations have turned to novel social media marketing and are gaining from the popularity of novel media among customers through saving money of marketing and advertising whilst still being capable to reach a wider audience. Several small and medium sized businesses have created Facebook groups and pages, making events on their special sale, grand opening or promotion and permitting it to spread virally and freely (Gillin, & Schwartzman, 2009) More and more organizations are currently utilizing social media applications for job recruiting which has simplified hunting for the job candidates. For instance, a common website like Linkedln has millions of professional employers across the globe that is capable to reach to a wide audience. Companies like Home Depot, Con Edison and Coca-Cola have web videos on You tube where promote themselves and also target customers. Zarrella (2008) argues that social networking is beneficial to businesses because it has enabled them to create their profile on these sites and including information and pictures on their businesses. Social media applications makes efficient and less expensive to market your business. Social networking has become very useful in business setting. Through the use of social media applications, business is able to develop worldwide collaboration, which assists them to discuss concerns or problems virtually and make valuable business decisions. Businesses are able to exploit social media to develop and dispense promotional materials, like audios, videos and articles for a portion of money it would incur for the content to appear on TV or radio. Distribution of this content trough the social media offers businesses with more chances to persuade others to link to their contents. According to Gillin (2008), the direct communication distinction of social media supports and serves small businesses as it brings the individuals to need to attract and maintain directly to them and thus makes it possible for direct communication, Social media turns communication into a conversation so that small to medium sized businesses can share, get feedback and connect on equivalent ground with target markets. Small to medium sized organizations can fully exploit social media applications if they use them for collaboration. Small and medium sized organizations make their target clients to feel powerful through empowering them. When target markets feel powerful, it buys form the organization, stays with the organization and trusts the organization. Social media collaboration changes customers into prosumers. In the age of social media, producers are individuals and not the businesses that make, break or shape purchase patterns. Small businesses can initiate collaboration for marketing through creating their individual communities or through joining communities. Through communities, organizations are able to connect and listen to target consumers and create a free forum in order to bring their target market together (Gillin, 2008). Appropriate management practices to optimize the implementation and use of social media applications Measurement of effectiveness and ROI Today’s internationally competitive business environment has compelled small and medium sized organizations to focus on expanding their businesses and improving consumer satisfaction whilst controlling cost. Fortunately, the internet and social media applications have generated a highly impartial competitive environment. Small to medium sized businesses use social media applications to expand their market reach as well as communicate with their partners and customers cost-effectively and quickly. Therefore, measurement of the efficiency and return on investment of a social media application is necessary to enable small and medium sized businesses to optimise the implementation and utilization of social media applications. Efficient social media measurement must begin by turning traditional return on investment approach. This implies that other than emphasizing their individual marketing investment and gauging returns on basis of customers response, management must start by considering customer motivation to utilize social media and then gauge social media investments that consumers make as they connect with marketers’ brands (Qualman, 2009). Handling measurement in this manner is sensible because it takes into consideration short term goals like increasing sales through social media marketing campaigns or cutting down costs as result of high receptive online support forums but also long term returns of important business investment in the social media. Qualman (2009) notes that in measuring social media return on investment, marketers and managers should begin by gauging the cost that will be incurred in launching a certain form of social media, such as a blog and then try to measure return on sales, from this social media investment. However, accompany can begin by thinking on what marketing objectives that a certain media application like a blog may satisfy, for instance brand engagement, why its clients would visit and which behaviours they may engage in when they get into the blog that could be connected to the marketing objectives of the company. Operational matters According to Gillin and Schwartzman, (2009), small and medium sized businesses can effectively optimize the implementation and use of social media applications through connecting management personnel to usual members within the organization for clear and better communication. For instance consumer satisfaction might be low due to minimized business focus on the relationships with consumers. Reduced customer satisfaction might also occur as a result of increased demands by the organization from its staff to increase profitability from a consumer other than establishing professional business links with these consumers. In this case, small and medium sized businesses can utilize online social media networks to permit a prospective member or a prospective customer to easily enhance an actual, human –level link with individuals in the company. The management can also utilize social networking to offer support to consumers, get feedback and make further sales. For instance, proper implementation and use of online networks will permit consumers to connect with specialists in the company who possess profound knowledge in a certain area. Undoubtedly, this will assist a company to greatly minimize the time needed for problem solving through permitting swift connection amid an employee and customer and an expert who has resolved identical problems previously or who is knowledgeable in a certain matter (Gillin & Schwartzman, 2009). Development of social media policy Development of a social media policy is an effective management practice that small and medium sized businesses can use to optimize the implementation and use of social media applications. Gillin (2008) states that the key to establishment of an efficient social media policy is through customization of guidelines to achieve the needs of the organization. A well established policy will direct employees in several ways that they participate in social communications. A best approach needs that the company invest resources, effort and time to plan and create a policy that will empower the organization, permits individuals to understand the worth of social media applications and also assist them to understand how they can better take part as interior brand champions. In order to be successful, the guiding principles ought to be in line with the stipulated ethics policy of the company and overlap with subsisting policies around communications. Conclusion Social media applications are effective marketing tools for SMEs. They enable businesses to promote their brands, advertise and distribute they services and products and also network with customers. Social media applications such as Facebook, Twitter, and blogs are ideal for small businesses because they require low cost to implement and use and enhance organizations to connect with customers in a way that traditional internet portals like Google search and web pages could not. Therefore, in order to connect with the increasingly digital marketplace and reach a huge audience, small and medium sized business are required to maintain a dynamic presence in the social media world. Bibliography Zarrella, D, 2008, The social marketing book, O’Reilly Media, San Francisco. Gillin, P, 2008, Secrets of social media marketing: How to use online conversations and customer communities to turbo-charge your business, Liden Publishing, New Jersey Qualman, E., 2009, Socialnomics: How social media transforms the way we live and do business, John Wiley & Sons, New York. Kerpen, D, 2011, Likeable social media: How to delight your customers, create an irresistible brand , and be generally amazing on Facebook(and other social networks), McGraw-Hill, Boston. Gillin, P, & Schwartzman, E, 2009, Social marketing to the business customer: Listen to your B2B market, generate major account leads, and build client relationships, Wiley, London. Read More