SOCIAL MEDIA AS AN EFFECTIVE MARKETING CHANNEL - Essay Example

? SOCIAL MEDIA AS AN EFFECTIVE MARKETING CHANNEL here] of [Due paper Introduction In today’s world, the use of social media has significantly increased (Gross and Acquisti 2005, p. 71). With its increased personal use, it has also influenced the way SMEs and large corporations market their business products and services and provide customer service (Zarrella 2010, p. 53). It is also playing a key role in the overall community building. There are many types of social media that help people communicate with each other and develop business relationships. However, social media mainly refers to the social networking websites that play a dynamic role in the personal and professional lives of people. Some of the main business benefits of using social media include provision of an effective marketing platform, ability to reach large audiences, and improved customer service. In this paper, we will discuss the value of social networking websites for advertising, customer service, and as a community building tool. The paper will also include a discussion on the value of social media as an effective marketing tool. 2. Social Media as an Effective Marketing Channel Social networking websites are playing a valuable role as effective marketing channels for all types of companies whether large, small, or medium-sized (Kelly 2013). With the advent of the social media as an effective network for marketing and advertising, companies started using social networking websites for achieving better response, as well as to provide customer service through enhanced level of interaction with the customers of the company (Richardson, Gosnay and Carroll 2010, p. 58). “The main goal of social media marketing is to ensure high participation of target audience in campaigns and content shared by the company” (Rajarammohan 2012). It is imperative for a company y to know the needs and demands of the customers for the provision of best products and services. Managers use a range of tools to gather required information because without the information of customers’ requirements, it is not possible for a company to deliver customer value properly. Social media marketing helps managers and concerned employees in contacting the customers of the company directly to know their requirements and preferences. Today, many small and large companies form manufacturing and retail industries are focusing of the use social media marketing to customize their products in accordance with the customers’ preferences, as well as to deliver their message in a more effective and conventional way to the target audience. Social media marketing refers to marketing using social networking websites and other forms of social media (Weinberg 2009, p. 4). Gone are the days when people used to visit products’ dealers and companies personally to know the functionalities and specifications of their required products. Today, most of the people use internet and related media to get all information about the products that they want to buy. For example, the number of people using online portals and websites for shopping is increasing with every passing day. The reason is that they do not need to waste their precious time going to markets and collecting information about different products. Today, internet has become the biggest and the most convenient marketplace where trading occurs in the same way as it occurs traditionally. The role of internet in this regard is evident from the fact that some popular social media websites, such as, Youtube, Twitter, and Facebook receive millions of clicks every day regarding product information (Rajarammohan 2012). The role of Youtube seems to be on the top in this regard as millions of people use this website to gather information about different products and services. For example, if a person aims to buy a new mobile phone of a particular company, he/she is most likely to open Youtube and see different videos related to that mobile phone. This is the reason why almost all major brands have started paying attention towards creating awareness about the distinguishing features of their products through social media marketing. It is a fact that things move perfectly with tradition. If online shopping has become the tradition in most parts of the world, companies should also focus on using social media as a tool to attract customers and increase sales. Let us now discuss some of the main ways that companies can use social media as a marketing channel to increase awareness of the products and services among local and international customers. I. Company Blog Blogging has become an effective way introduce products. Many companies use their own blogs to spread awareness about their products and services, functionalities of products, associated benefits, and discount and bundle offers among the customers. The key to make blogging an effective marketing tool is to link it with social networking websites and other popular media. Almost every person explores different search engines to gain information about required products. Companies link their blogs with the search engines that customers can view to get required information. II. Social Bookmarking Social bookmarking refers to the presence of a company’s blog posts on social websites. Every blog post should be sent to the social networking websites so that users can view them and take buying decisions considering the information provided to them through the blog posts. To do this, companies need to make a connected use of blogging and social websites. You must have seen links to all major social networks along with every single blog post. “Blog posts are combined with these tools so that viewers can easily bookmark the content on social engines and it is very effective in practice” (Rajarammohan 2012). III. Social Networking Social networking is also an effective way to gain awareness about different brands and products. Companies can encourage and promote in-person interaction with their customers by ensuring their presence on the social networking websites. A large number of people log on to such websites almost daily to check latest updates related to their accounts. They view messages, chat with friends, and explore different pages that may attract them. Putting information about products and services on popular fan pages of such websites can help companies in increasing products’ awareness among a wide range of customers worldwide. IV. Video Marketing Video marketing has been an effective marketing tool for the last few years. Companies place their video ads on popular social websites so that every user who opens those websites can view the ads. Large brands like Mars and Spencer, Hugo Boss, and Nike use this marketing technique and receive a large number of views daily on social websites. Some main benefits of using video marketing include traceable return on investment, increased engagement with customers, targeted desired audience, optimized business presence, improved ranking in the search engines, and low cost as compared to print media marketing (Dhanoa 2012). This form of marketing is also known as online marketing in which a person or a business creates video advertisements about the products of the company and uploads it on famous search engines so that a large number of users can view them and tailor their purchase decisions accordingly. These were some of the main ways social media can be used as an effective marketing channel. A company that adapts itself successfully to the use of these marketing tools can earn a large number benefits in terms of customer base, profit making, and reputation. Let us now discuss the value of social media for advertising, customer value, and community building. 2.1 Value of Social Media for Advertising Social media is considered to be a complementary mix of all other advertising and marketing efforts (Evans 2012). It also plays an effective role in marketing and advertising of products. According to Wilson (2011), who interviewed some business owners of both small and large firms, almost 40 percent of the small businesses created their profiles on a social network which is considered to an effective marketing move. The profile helps customers read company’s messages, range of products and services, and prices of products. The main networking website that these companies use is Facebook. These companies have created their accounts on Facebook which are available for view to every internet user. As Wheeldon (2010) states, “The main use of social networking sites is interaction and communicating with others”. The profiles on social websites create awareness about a company’s businesses, as well as play the role of ambassador for the companies as they reflect the image of a company to the users of the website. Today, companies have started using more than one platform to introduce their products and services to customers. For example, companies no longer focus on the use of one particular method, such as, display or search advertising to reach local and international online customers. According to Wilson (2011), most of the companies now capturing email addresses of customers (37.1%), create social profiles and set them for public view (40.9%), and request internet users to leave their reviews on regarding the use of products on social websites (25.9%). The basic goal of the companies in the present world is to reach larger audiences and engage them in product purchase process both online and offline. “With the popularity of digital marketing on the rise, many businesses are investigating how social media can help them promote their products and services to potential and existing customers” (Brookins 2013). The use of social websites is increasing among almost all age groups. Anticipating this trend, companies have also begun using such websites to create awareness among people regarding their offerings, as well as to increase the customer base (Andreasen 2002). Some of the social media websites that businesses use the most for the advertisement of their products and services include Facebook, LinkedIn, YouTube, and Twitter. Advertising through social networking websites offers a number of considerable benefits to businesses. Let us discuss some of them in detail to know the way social websites are improving the businesses of both small and large companies. 2.1.1 Affordability One of the main benefits of using social websites for the promotion of products is affordability or low cost. Internet advertisements are usually low cost as compared to print media advertisements. Traditional marketing modes of communication, which include banner advertisements, billboards, covert advertising, television and radio advertisements, and carrying out promotional campaigns are costly because they need a large amount of money to be given to concerned authorities. On the other hand, internet advertisements do not make such costs for businesses. Companies just need to create their accounts on some popular social websites to publish their ads for free. This mode of advertising not only helps in promoting products and services at a low cost but also helps in developing interactive and long lasting business relationships with customers. 2.1.2 Able to Reach Large Audiences Another benefit that social websites provide to companies in terms of marketing is the ability to reach large audiences. When companies advertise through print media, such as, newspapers and magazines, the response rate is usually low because not all people read those magazines and newspapers and even they buy those, they hardly come across the ads unless they do not have a real intention for that. On the other hand, social media provides free access to such content. People use social websites more than they use newspapers for viewing ads. “Facebook alone has more than 750 million users, LinkedIn has over 120 million users and over 3 billion YouTube videos are viewed per day” (Brookins 2013). Using social media, companies can reach a larger audience which is impossible using print media. 2.1.3 Instant Reply Another benefit of using social media for advertising purposes is instant feedback. Using print media, companies have to wait for the response at least for some weeks. On the other hand, social websites provides the facility to users to give an instant response to the ads. Moreover, social media also promotes interactive relationship between the customers and companies. For example, customers can leave their precious feedback to the blogposts which is impossible in case of print media. These were some of the main benefits that social websites, such as, Facebook and Youtube provides to companies in the area of marketing and advertising. Getting skilled in the use of such websites for advertising, companies can reap many more business benefits. 2.2 Value of Social Media for Customer Service Social media also plays a key role in improving customer service of a company. The theory of customer service focuses on the need to satisfy customer in order to achieve desired results. When a customer becomes unhappy with the customer service of any particular company, the company may not notice it but a large number of other customers do notice it by reading the comments of the unsatisfied customer on blogs, websites, and user feedback areas on social networking websites. This eventually affects the customer base of the company that provided poor service to the customer. For example, when a customer is unhappy with a company for any reason, he/she is likely to post his/her poor experience with the company on some social networking websites. This way many other people which may include his/her friends and family members will read the comments and a negative image about the company will also develop in their minds. As Mangold and Faulds (2009, p. 357) state, “social media has made it possible for one person to communicate with hundreds or even thousands of other people about products”. Therefore, companies need to ensure provision of best customer service to customers in order to retain them. “Poor social media publicity is an early warning alert that something's amiss with a company's customer service” (Anderson 2012). Poor publicity of a company through social media produces adverse effects for a company. For example, it not only harms the image of the company but also decreases the level of profit. Researches have proved it that one bad tweet or a Facebook comment about customer service of a company results in the loss of many customers. Social media has become a real indicator of a company’s success or failure in the market in terms of customer perception. The key to develop a positive image in the minds of customers is to take care of the needs and demands of the customers. In today’s age of information technology, it is very difficult for a company to hide from the eyes of the public after delivering poor customer service. In today’s world of information technology, social websites are usually the first place customers visit to gain awareness about a product (Marshall 2013). When they see negative comments of existing customers about the use of that product, they become disheartened and try other options. As Holmlund and Kock (1996, p. 287) state, “profitable and long-term marketing can be achieved by focusing on present customers instead of concentrating on attracting new ones”. The better the customer service will be, more satisfied will be the customers of the company which will be reflected through tweets and comments on social websites. It is imperative for a company to raise the quality level of customer service department (Parasuraman 1998).  Many companies have started using social media top provide customer assistance. Social media offers a number benefits to companies in the area of customer care. For example, using social websites companies can address the problems of customers in a rapid way. Similarly, companies can get instant feedbacks from the customers regarding the use and functioning of the products that they buy. Moreover, companies can post their newsletters on the social websites showing their intention to improve customer service in accordance with the suggestions of the customers. Social media not only helps companies in resolving customers’ problems economically and quickly but also provides many other benefits to companies, such as, improved level of customer satisfaction, positive marketing of the business through customers’ comments and tweets, and improved brand loyalty (McLaughlin 2013). A company having an account on a social networking website gets the opportunity to interact with customers and resolve their issues immediately which improves the after-sales relationship between the customers and the company and also generates a positive consumer perception about the company (Harding 2013). 2.3 Value of Social Media as a Community Building Tool Social media can also play a valuable role in community building. Community building refers to ensuring wellness of the whole community using effective measures. The role of social networking websites is critical in this regard. Where social networking websites are playing a vital role in developing personal and professional relationships between people, they can also play a valuable role in community building. Social networking is not just limited to formation of relationships between people or sharing of pictures and experiences. It also encompasses the goal of building a socially responsive community. It is the responsibility of large corporations, national organizations, social organizations, and NGOs to organize community building events and publicize them on social websites. As Niven (2011) states, “social networks are beginning to have a bigger role in building community and catalysing neighbourhood co-operation and social action”. National organizations and social websites have been launching such events in the past. For example, The a post-riot clean-up Twitter campaign was launched recently which was aimed towards creating awareness among people regarding the ways to show corporate social responsibility (Niven 2011). Similarly, ‘Keep Britain Tidy’ is another example of such efforts. This scheme was aimed towards telling people the ways they can become a productive part of the society. Keep Britain Tidy has almost 2,000 on Facebook and 9,000 followers on Twitter which shows the success rate of this effort for community building. “The organisation has encouraged its Twitter followers to take photos of litter in their areas and share them as a Twitpic” (Niven 2011). These are just a couple of examples of how social media an be used to encourage people to play their role in community building. Such efforts can also be made at local level as users of such websites can start their own events aimed towards changing bad habits of people into the positive ones. 3. Conclusion Summing it up, social networking websites have influenced the way SMEs and large corporations promote their businesses and provide customer service. They also play a significant role in making people aware of their role in the process of community building. Some of the main social websites that are popular in the whole world from business point of view are Facebook, Twitter, and LinkedIn. Companies use these websites for marketing purposes, as well as for providing instant after-sales care to their customers. The way the use of social networking websites and other social media is increasing in the whole business world, it is not unlikely that social media will become the most effective marketing channel in the nearest future. References Andreasen, A 2002, ‘Marketing Social Marketing in the Social Change Marketplace’, Journal of Public Policy & Marketing, vol. 21, no. 1, pp. 3-13. Anderson, S 2012, ‘Social Media as a Customer Service Early Warning System’, viewed 12 March 2013, http://socialmediatoday.com/scooter71/1052246/social-media-customer-service-early-warning-system Brookins, M 2013, ‘The Advantages of Using Social Media Marketing’, viewed 12 March 2013, http://smallbusiness.chron.com/advantages-using-social-media-marketing-18593.html Dhanoa, S 2012, ‘6 Reasons Why Online Video Creates Better Marketing ROI’, viewed 12 March 2013, http://www.blinkmediaworks.com/blog/6-reasons-why-online-video-creates-better-marketing-roi Evans, D 2012, Social Media Marketing: An Hour a Day, 2nd edn, Wiley, New Jersey. Gross, R & Acquisti, A 2005, ‘Information revelation and privacy in online social networks’, WPES '05 Proceedings of the 2005 ACM workshop on Privacy in the electronic society, pp. 71-80. Harding, A 2013, ‘The Benefits of Social Media for Your Business’, viewed 12 March 2013, http://www.business2community.com/social-media/the-benefits-of-social-media-for-your-business-0401494 Holmlund, M & Kock, S 1996, ‘Relationship Marketing: the Importance of Customer-Perceived Service Quality in Retail Banking’, The Service Industries Journal, vol. 1, no. 3, pp. 287-304. Kelly, N 2013, How to Measure Social Media: A Step-By-Step Guide to Developing and Assessing Social media ROI, Pearson Education, New Jersey. Mangold, W & Faulds, D 2009, ‘Social media: The new hybrid element of the promotion mix’, Business Horizons, vol. 52, no. 4, pp. 357-365. Marshall, S 2013, ‘Social Media: The New Customer Service Portal For Every Brand’, viewed 12 March 2013, http://www.mediapost.com/publications/article/194875/social-media-the-new-customer-service-portal-for.html#axzz2NWZTX4yf McLaughlin, M 2013, ‘Can Social Media Save Customer Service?’, viewed 12 March 2013, http://socialmediacamp.ca/2013/02/can-social-media-save-customer-service/ Niven, R 2011, ‘The role of social media in community building and development’, viewed 12 March 2013, http://www.guardian.co.uk/voluntary-sector-network/community-action-blog/2011/dec/08/facebook-social-media-community-development Parasuraman, A 1998, ‘Customer service in business-to-business markets: an agenda for research’, Journal of Business & Industrial Marketing, vol. 13, no. 4/5, pp. 309 – 321. Rajarammohan, R 2012, ‘Social Media: An Effective Marketing Channel’, viewed 12 March 2013, http://beginwebsites.com/social-media-marketing-channel/ Richardson, N, Carroll, A & Gosnay, R 2010, A Quick Start Guide to Social Media Marketing: High –impact, low-cost marketing that works, Replika Press, Hong Kong. Weinberg, T 2009, The New Community Rules: Marketing on the Social Web, O’Reilly Media, Sebastopol. Wheeldon, E 2010, ‘A Social Society: The Positive Effects of Communicating through Social Networking Sites’, viewed 12 March 2013, http://networkconference.netstudies.org/2010/04/a-social-society-the-positive-effects-of-communicating-through-social-networking-sites/ Wilson, D 2011, ‘Social Media Most Effective Marketing Channel For SMEB’s’, viewed 12 March 2013, http://social-media-optimization.com/2011/07/social-media-most-effective-marketing-channel-for-smbs/ Zarrella, D 2010, The Social Media Marketing Book, O’Reilly Media, Sebastopol. Read More