Use of Social Networks in Businesses - Martell Home Builders - Case Study Example

Use of Social Networks in Businesses Student’s Name: Course Code: Lecture’s Name: Date of Submission: Use of Social Networks in Businesses 1.0 Introduction Developments in the domain of information and communication technology have significant created new platforms of communication for both individuals and businesses (Marsico, 2010, p.967). One area that has experienced phenomenal growth as a result of development in ICT is the emergence of the online community who utilises micro-blogging sites for communication purposes. This refers to a group of individuals or firms that exploit internet platform so as to disburse information entertain and socialise. This growth is embedded in what is presently known as social networks/ new media or social media (Elgin, 2006). Based on Martell Home Builder case example, the aim of this report is to outline use or role of social media in business. In this regard, the report discusses the use of social media within the context of communication such as advertising & product promotion, eliciting feedback, developing personalised care to customers & other stakeholders and as platform for public relations. Secondly, within the framework of e-business, the report examines how it is used to reinforce online transactions such as reservation of products/ spaces. 2.0 Social Networking Sites Before indulging deeper to discuss the content, it is integral to establish what is meant by Social Network and the perspective taken in this paper to discuss the said content. Boyd & Ellison (2008, p.210) conceptualises Social Networking Sites as web—based services which empower individuals and firms to build public or semi-public profile in a bounded system so that they can exchange information. In a nutshell, Social Networking Sites are computer enabled communication system. Punie et al. (2009, p.136) on the same breadth defines online media as ‘a composition of open, web-based and user-friendly applications that allows online community to network, share data, collaborate and co-produce content’ . Equally, social media or new media can be used interchangeably to refer to Social Networking Sites or online media (Marsico, 2010, p.967). These social networking sites include, but not limited to Facebook, You Tube, BlackPlanet, Twitter, MySpace, Bebo, Cyworld as well as blogs among others. The significance of these sites is premised on the numbers visiting these sites and thus a guarantee for wider reach, ability to integrate multimedia elements in one platform; the ubiquitous & real time nature of the platform and ability to interact & solicit feedback (Barrows & Powers, 2009, p.403). For instance, number of people visiting 10 social media sites in 2006 grew from 46.8 million people to 68.8 million in a one year period (Bausch & Han, nd,). Moreover, a 2009 survey indicated 770 million people visited these sites (OECD, 2010, p.36). Additionally, Hayes & Miller (2011, p.295) indicates 72 million users which represents 38% of internet users globally visit these social networking sites at least once every month. However, the ultimate challenge arises when it comes to the integration of social networking sites and social media into business processes and operations (Verret, 2011). 3.0 Application of Social Network Concept in Business: A case Study of Martell Home Builders According to Porterfield (2011), Martell Home Builders is a custom homebuilder based in Canada which in earlier years relied on realtors so as to conduct sales. Nevertheless, this scenario changed once they integrated social media in their business operations thereby empowering them to build a direct-to-direct consumer model that did not rely totally on middlemen. The author’s attention to this case study was necessitated by results presented in Google search and subsequent listing by Porterfield (2011); Falls (2008) as one of the companies ‘doing social media right’. A description of how the issue arose within this case example, why it happened and the actual problems that were caused in this case can be best contextualised using SWOT analysis documented on the organisation before implementation of solutions. The specific focus would be on the weaknesses (W) and the threats (T). According to Falls (2008), the weakness of Martell Home Builders lied on their inability to create direct contact with customers. Instead, the firm they over relied of agencies or middle men to conduct their business. This implied that they could not offer personalised services which are an integral factor in home construction industry as home owners taste are diverse and personalised. Moreover, the model meant that bottom-up approach of dealing with agents added more to their bottom line. To re-align their business model, the firm adopted top-down business strategy driven by social media and online presence where they are able to build close working rapport with customers anchored on transparency. In this regard, they have invested in Twitter handle for broadcasting updates to customers; Facebook page for a detailed description on projects and company information; YouTube channel for expert discussions on home building, decoration & design and lastly, their blog titled ‘the martell experience’ that has empowered them to design customer-accessible management tool anchored on ‘Base Camp/ Group Hub’ software. This has enabled the firm to address the problem/ weakness of not having direct personalised relationship with customers by being able to communicate by informing, advertising, ensuring vendor relations, conducting of reservation and engaging in public relations (Porterfield, 2011; Falls, 2008). 4.0 Discussion: Role of Social Network in Business One of the uses of Social Networking Site is to communicate and inform. Communication is an integral part of influencing and convincing since it offers an avenue for meaning making between sender and receptor. Social networking sites and social media allow people to share information rapidly where individuals or firms interact and collaborate through various media tools (Napier et al., 2001, p.6). These networks offer classical opportunity for reaching wider customer base and thus, ease of product promotion in various market places and around the world. This ability to communicate is a key success factor that enhance s value creation which translates to competitive advantage and hence market leadership (Schneider & Perry, 2001, p.2). Under communication use of social networking in business, communication for marketing purposes comes into limelight. Specifically the domain of product promotion and advertisement occupies a central place. Romaniuk & Sharp (2004, p.327) observe that brand salience is a significant factor as it leads to creation of awareness, attitudes as well as the propensity for customers to recognise or recall a brand when buying. According to Carl (2006, p.601) Social Networking Sites are appropriate for buzz marketing where it enhances contagious talk about a brand or product. In a nutshell, online media offers a platform for intense and interactive communication (Lantos, 2011, p.301). Indeed, this is highly exhibited by Martell Home Builders utilisation of Social Networking Sites to develop personalised marketing. The firm advertises her products such as new building which are upcoming in various locations on their social network sites. These promotional advertisements contain pricings, building technologies employed and the value of the neighbourhood where they are constructed. As such, this has enhanced their brand equity and salience as opposed to an earlier status where they relied on middlemen to conduct the transaction and thus currently approximately 86% of contract emanate directly from consumer as a result of interaction they have had with them (Porterfield, 2011; Falls, 2008). Apart from product promotion through advertisement, the firm exploits the social media platforms such as YouTube and Facebook to offer insightful and informative information. For instance, the firm utilises photo galleries section to update clients on the progress of the construction process. Indeed, they go further to allow their clients to share these photos with the friends. Additionally, the firm managed to capture the attention of home buyers and owners through other informative topics such as ’14 must have tools for new homeowners’ and ‘home staging tips & techniques’. Lastly, they have a portal for geo-tracking the physical location of the contractors. This enhances trust between the firm and customers (Porterfield, 2011). Closely related to the two above is customer care and eliciting Feedback. Customer care is an important in the building industry since this is a complex engagement process where the customers need to be updated regularly on developments and challenges without the client necessarily being physically present. Moreover, for enhancement of product contents it is important to elicit feedback from consumers so as to gainful insightful information on performance gaps that can be proved so as to enhance value to customers and reduce cut throat competitions thereby leading to market leadership. Porterfield, Khare & Vahl (2011, p.566) indicates that social networking sites empowers firms understand the needs of customers. Thus, presence in social media in a business is integral in reacting to praises, complements, complaints and improvement proposals. For instance, the firm has Twitter handle where followers can communicate directly with the firm. It equally encourages employees to have official Twitter handles. Further, business can use social networking site for public relations purposes. Having a good reputation among public and consumer is a sure way of ensuring brand loyalty, brand equity and brand awareness. This helps reduce negative effects such as product boycotts. Reber, Petersone and Berger (2010, p.36) observes that public relations exercise is a significant tool in creating a positive psychological effect on consumers. Communication anchored on public relations exercise can empower organisation or individual to build a long lasting trust and hence a possibility of controlling their behaviour (Bambacas & Patrickson, 2008, p.52). In this regard, the control of the behaviour would be to incline them to be loyal to a firm’s product as the first choice option in the market. the same tactics have been applied by Martell Home Builders who announce their various social corporate engagements on the social media like Facebook such as green architecture and leadership in energy and environmental design. They equally have links for the sustainability policy, diversity management and code of ethics (Falls, 2008). All the above stated points are critical in customer relationship management (CRM). To achieve the target sales volumes, organisations engage in other process of marketing like customer relations management. One of the roles of a commercial organisation is to earn profit by meeting dynamic customer needs and wants by creating value for them. CRM through social networking sites helps in creating trust, contact and thus, allowing a firm to lock in customers. This then makes the approach a competitive and key success factor (Martins & Remenyi, 2007, p.288). Customer relationship management is anchored on three premises which include retaining existing customers, acquiring new customers and strengthening the relationship \ (Sileo, 2010, p. 207). For instance, in 2007, Martell homes managed a paltry sale of 16 units. However, in 2008 it grew to 40 and then later 100 in 2009. It is project that in future 80% of their total sales would be through direct sales as dictated by social media presence (Falls, 2008). Virtual business is dramatically expanding. Online media and social media platforms can be exploited in conducting E-Business or by aiding of online trading. For instance, social media tools in Facebbook and Twitter can be exploited to display pictures of goods being traded or for confirmation of attendance and reservation. This is indeed what Martell Home Builders have done where one can see photos of building, do reservation and book appointments through social network sites (Falls, 2008). 5.0 Conclusion Using the case example of Martell Home Builders, the ultimate premise of this report was to establish the use of Social Networks in business. To contextualise, the discussion, the paper first conceptualised what is meant by Social Networking sites. Secondly, the discourse outlined the case example of Martell Home Builders. In this regard it affirmed the choice of this firm as the case study; the problem which necessitated the adoption of social network. As such the report established that absence of direct contact with customers through reliance on middlemen which greatly impacted on their profitability and how they interact with customers necessitated the need for adoption of social media. Lastly, the report assessed the use of social networks in business and it realised that social network sites are significant in communication where it supports personalised customer care, online advertising, public relations, online transactions and product promotion. In a nutshell, the report established that Social Networking Sites or Social Media empowers business organisations to communicate with customers and other stakeholders to communicate dynamically through digital/ online advisement, public relations effort, and product promotion, disbursement of information and eliciting of feedback. References Bambacas, M. & and Patrickson, M 2008, Interpersonal communication skills that enhance organisational commitment. Journal of Communication Management, 12(1), 51-72. Barrows, C & Powers, T 2009, Introduction to the Hospitality Industry, 7th edn., New Jersey, John Wiley & Sons. Bausch, S & Han L (Nd). Social Networking sites Grow 47 Percent, Year over Year, Reaching 45 Percent of Web Users, viewed on 13 February 2014 from: www.nielsen-online.com/pr/pr_060511.pdf. Boyd, D & Ellison, N 2008, Social Network Sites: Definition, History, and Scholarship. Journal of Computer-Mediated Communication, 13(1), 210-230. Carl, W 2006, What’s All the Buzz about? Everyday Communication and the Relational Basis of Word-of-Mouth and Buzz marketing Practices, Management Communication Quarterly 19(4), 601-634. Elgin, B. 23 January, 2006, Yahoo’s Social Circle, BusinessWeek Online, viewed on 13 February, 2014 from:http://ehis.ebscohost.com/eds/detail?sid=1e1d7df7-7790-4a2c-b046c4bf42407980%40sessionmgr115&vid=2&hid=121&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=bth&AN=19582224. Falls, J 20 October, 2008, Social Media for Small Business: Martell Home Builders, viewed on 13 February 2014 from: http://www.socialmediaexplorer.com/social-media- marketing/social-media-for-small-business-martell-home-builders/. Hayes, K & Miller, A 2011, Revenue Management for the Hospitality Industry, New Jersey, John Wiley & Sons. Lantos, G 2010, Consumer Behaviour in Action: Real-Life Applications for Marketing Managers, New York, M.E. Sharpe Incorporation. Marsico, E 2010, Social Networking Websites: are MySpace and Facebook the Fingerprints of the Twenty-First Century? Widener Law Journal 19 (1), p. 967-976. Martins, B & Remenyi, D 2007, ECKM 2007: 8th European Conference on Knowledge Management 2007, Reading, Academic Conference Limited Napier, H. et al. 2001, Create A Winning E-business, Boston, Thomson Learning. OECD 2010, The Economic and Social Role of Internet Intermediaries, viewed on 13 February 2014 from: www.oecd.org/dataoecd/49/4/44949023.pdf. Porterfield, A 12 April, 2011, Companies Doing Social Media Right and Why, viewed on 13 February 2014 from: http://www.socialmediaexaminer.com/9-companies-doing-social- media-right-and-why/. Porterfield, A., Khare, P & Vahl, A 2011, Facebook Marketing: All-in-one for Dammies, New Jersey: Wiley Publishing, Inc. Punie, Y., Lusoli, W., Centeno, C., Misuraca, G. and Broster, D 2009, The Impact of Social Computing on the EU Information Society and Economy, IPTS European Commission – Joint Research Centre, Seville. Reber, B. H., Petersone, B. & Berger, B 2010, The role of mid-level gatekeepers in mobilizing grassroots activism and encouraging facilitative relationships, Journal of Communication, 14(1), 32-46. Romaniuk, J & Sharp, B 2004, Conceptualizing and measuring Brand Salience, Marketing Theory Articles, 4(4), 327-342. Schneider, G & Perry, J 2001, Electronic Commerce, Boston, Thomson Learning Sileo, J 2010, Privacy Means Profit: Prevent Identity Theft and Secure You and Your Bottom Line, New Jersey, John Wiley & Sons . Read More