Reputation and Reputation Management: Facebook - Assignment Example

? Reputation and Reputation Management Introduction The current digital age has not only extended companies’ market channels, but also provided the organizations’ promoters and marketers with a wide array of new methods to correspond with customers. For instance, Web 2.0 based technologies, which include social networking and online posting of content generated by users, have immensely enhanced interaction between companies and their customers. Additionally, these technologies have made it possible for an organization’s customers to communicate amongst themselves (Barker & Roberts, 2010, pp.23-27). This mode of communication is referred to as electronic word of mouth (eWOM) and covers chatter conveyed through social media platforms like Twitter, Facebook, and MySpace, among others. However insignificant it may seem; customers chatter, especially over highly influential platforms like Facebook, has far reaching effects on a company’s reputation and could either impact it positively or negatively. According to Chaffey (2011, p.39), this potent impact of eWOM could translate into positive or negative business performance, hence explaining the increased demand for companies’ Online Reputation Management (OMR). This paper seeks to explore the prevailing ORM practices from a marketing or management perspective. The study achieves this by evaluating the extent to which firms comprehend and implement ORM practices, with particular interest in Facebook. The study also evaluates the impact of these ORM practices on marketing principles and strategies, eventually recommending a simple ORM model that a firm can use, in order to foster best marketing guidelines and outcomes. Online Reputation Management trends Management of reputation in the contemporary economic environment is increasingly becoming complex, owing to the constantly varying online environment, coupled with elevated customer dynamism. In conventional reputation management, a company was simply required to monitor the public’s perceptions about its performance or practices, and then attempt to close the gap prevailing between reality and perception. This would further guarantee the respective firm an opportunity to select its target audience, thus giving it competitive advantage over rivals. In contemporary reputation management, monitoring public perceptions is just a small portion of a company’s overall responsibility. This is because a modern company has to relentlessly pay close attention to internet users that are affiliated to social media platforms like Facebook (Chaffey, 2011, pp. 42-46). Online users are capable of launching campaigns against an entire company or its products. Simply equipped with a computer or internet enabled phone and a personal opinion, an online user can instantaneously change an organization’s reputation for the worst by conveying misinformed information either intentionally or accidentally. For instance, a registered Facebook user may post a negative comment about a company and several likes draw the attention of other users who read the background story, only to enhance the backlash. An excellent example is that of Wal-Mart, a renowned retail giant, which at one point decided to partner up with bloggers with the aim of building its reputation. The bloggers, posing as independent individuals were supposed to go around the retail mall’s outlets and interact with employees. However, they just posted exceedingly positive remarks and it was discovered that they were actually not as autonomous as conveyed earlier, since they were being paid by the firm. This prompted a heated Facebook backlash against the company, with users posting remarks like “Wal-Mart sucks” among others. This incident further deteriorated the organization’s already poor reputation; an aspect attributable to dishonesty of the company and disrespect for its online customers. The other company that recently suffered a negative reputation impact from Facebook users’ harsh comments is Toyota. The Japanese automobile manufacturer had to recall some of its car models for rectification of sticky accelerators, brakes and gas-pedals. Despite the fact that just a few individuals had these faulty car parts, the Facebook campaign against the company significantly damaged its reputation. An online survey conducted showed that Toyota fell from first place to third place in terms of consumer loyalty and trust. The negative perception of Toyota vehicles deeply got ingrained into online users’ minds, as well as, those of people around them, making them decide not to ever buy a car made by this manufacturer. The Wal-Mart and Toyota cases clearly illustrate that online communities present numerous challenges, as well as, hurdles to, promoting a firm’s reputation or rebuilding damaged reputation. Nevertheless, if utilized responsibly, the online environment can build a company’s reputation to great heights. Additionally, a meticulous reputation management approach can afford a business the chance of addressing a hitch before occurrence of any significant harm Greyser (2009, pp. 591-595) notes that, although many modern organizations acknowledge and comprehend the significance of ORM, a small section of these firms consult expert for assistance. These firms’ ORM practices range from implementing highly intricate guidelines on social media to no measures at all. ORM and Marketing The materialization of user generated content (UGC), content rating, social networking, and video sharing, are some of the information conveyance utilities availed by platforms like Facebook (Chaffey et al., 2008, p.12). These have, in turn, enhanced relations between company brands and their consumers, thus transforming marketing from the customary monologue to a mutually beneficial company-to-customer association. For instance, companies that maintain Facebook pages facilitate a dialogue between their marketing departments and loyal, as well as, prospective customers (Farquhar and Rowley, 2006). Another crucial interaction afforded by Facebook is that, which occurs between one customer and another. This provision allows consumers to voluntarily and freely discuss, evaluate, and recommend or disapprove certain goods, services or brands (Barker & Roberts, 2010, p. 28). However, eWOM can threaten brands’ good performance, especially in situations where many consumers simultaneously post criticism about the specific company or brand (Hennig-Thurau et al., 2004, pp. 39-43). According to Mintel (2010), approximately 46% of customers usually review services or products, finally posting comments on online platforms like Facebook. Therefore, as Dwyer (2007, pp. 64-68) conclusively states, online social platforms act like double-edged swords, in that, they can disseminate useful market information, but at the same time ruin a company’s reputation and its potential market if not carefully monitored. It is due to the potential negative impact of social media, that online reputation management is increasingly becoming necessary for companies. ORM seeks to ensure that the information conveyed through social interfaces such as Facebook does not destroy a company’s market perception about products or service offered. Therefore, if appropriate ORM practices are executed, they would ensure that companies do not encounter unnecessary marketing crises or setback. According to Mintel (2010) a relatively low percentage, that is, 33% of companies have executed tactics to audit and monitor online reputation. Additionally, about 39% of organizations do not utilize any form of online reputation evaluation or regulation strategy. The remaining percentage possibly comprises of companies that do not even have any knowledge regarding information posted online about their services or products. This is because such organizations do not even take the initiative to find out about online information, and instead opt to operate oblivious of customers’ opinions. This should not be the case, and as Chaffey (2011, p.63) emphasizes, ORM should fall under the category of a firm’s most imperative objectives. This is because, monitoring information posted by consumers on the organization’s Facebook page, among other platforms of social media, would enable it to transform services or products based on customers’ preferences. This would ultimately translate to enhanced product sales and increased consumer loyalty, since individuals realize that their opinions are valuable to the firm. Further, proper ORM strategies would ensure that, the respective company gets appropriate feedback from customers, as well as, suggestions on how to develop new, market-oriented goods or services (Mei et al, 2009 pp. 144-147). Appropriate interaction of the marketing team with consumers via Facebook, also goes a long way towards building consumers’ trust in the company, thus improving its brand image and popularity. ORM Practices As mentioned earlier, ORM awareness in the contemporary business environment is relatively high, but it is addressed under numerous titles such as: Online Brand Management (OBM); Online Crisis Management (OCM); Online Public Relations (OPR) and Social Media Monitoring (SMM). Despite the varying titles and methods of execution, these management practices all constitute ORM. For instance, most companies provide an interface on Facebook and other platforms like LinkedIn, Twitter and MySpace, where consumers can provide their feedback on brands or services offered. A few organizations even offer incentives for consumers to provide a response, since this is seen as a way of acquiring relevant market information (Hills and Cairncross, 2009, pp. 28-30). However, many companies still utilize manual and unplanned evaluation systems. This is because some are still skeptical about the influential role played by social media in affecting a company’s reputation. This explains why many opt to avoid investing in social systems with the aim of improving brand image. The skepticism is also responsible for the limited human resource allocation to maintenance of company’s Facebook pages, and provision of individualized responses to customers’ queries. There is also a prevalent concern in management of social media platforms, especially regarding the individuals or departments responsible for this activity. Some individuals feel that this task should be assigned to the public relations department, while others uphold the idea that maintenance of Facebook pages and constantly responding to customers is the marketing team’s duty. All the same, each department in a firm must contribute actively in the maintenance of a good online relationship with customers. This is because; customers’ demands are equally diverse and may not be targeting just the PR and marketing departments. In matters concerning products and services of a firm, however, the marketing team should be actively involved. The team should take time to explain the features of each service or product, in addition to responding directly and honestly to questions posed. Additionally, the marketers must be highly trained on courteous and polite demeanor, to avoid angering the customers and hence, making them, cease to contribute actively towards brand improvement. Responses provided to customers via Facebook must also be timely, with the team focusing on providing articulate answers within say 24 hours of the query being posted. This serves to depict professionalism of the firm, as well as, its commitment to responding to customers’ concerns; an attribute that indubitably builds the respective firm’s corporate image and ultimately its reputation and popularity among consumers. ORM Awareness on Facebook In terms of professionalism, ORM is basically comprehended by the communications manager, but in most cases the marketing managers will tend to request for support from the risk management, in order to mitigate marketing issues related to Facebook. In many cases, a marketing manager using Facebook as an advertising medium can get bombarded with information and would like to know how to mitigate the issue without affecting the product or the company’s reputation. Therefore, as a marketing manager, one can adapt online crisis management and this will shoe that they have familiarized themselves with reputation management concept in the new Social media platform (Ross, 2009, pp, 451-452). Numerous professionals will recommend a proactive route, whereby a firm will have with a documented plan for ORM that incorporates crisis management. Additionally, there should be a certain extent to which details are examined, in time, as well as, in investment depending on the type of company being run. It is imperative to note that when one is utilizing Facebook as a mode of marketing, one should not invite the passion for a large number of comments. This is because one will be able to uphold the reputation of their product without necessarily having to deal with some uncouth customer comments. This way the person will retain a good reputation. Additionally, it is good to undertake an online audit in order to determine if the important topic are being discussed. Therefore, it is important not to spend a lot of time on the topic but rather try to consider commenting from a customer’s point of view. It is also imperative to follow a Facebook comment with a continuous activity that includes the acquiring an online reputation in other principal websites and blogs that deal with marketing and also managing other online communities like tutor and also scrutinizing for any ad hoc factors or comments that might bring negative reaction (Gruen and Czaplewis, 2006, pp. 450-454). In a nutshell a firm should prepare a policy or guidelines that ought to: a) Be incorporated as part of the employment contracts. This is because; when individuals utilize Facebook as an advertisement platform, some may use it to convey personal messages or communicate in an uncivilized manner. For this reason, the firm should not be held liable if it dismisses such workers. b) The guidelines are supposed to be given to people because; employees are the best voice that one can have when using Facebook to market products It is also important to invest because one should remember that Facebook is not a free entity and one should put into consideration the number of people following an advert or any kind of marketing post or status. This is because; Facebook is a tool that is used in the marketing docket to increase customer awareness. Therefore it is crucial to note the kind of comments that people use especially when dealing comments related to ones product. It is also important to note that people will identify with something that has more positive effects. That way, the product being marketed will have a better chance of getting the right kind of reputation in the online world and especially to the target market (Smith and Sivakumar, 2005, pp. 16-28). Facebook Reputation Management Model It is evident from both consumer study and literature indicates that customers feel that they are not getting the right kind of attention in terms of being listened to. Additionally, consumers claim that they are also not being provided with the right and prompt response to their online comments from companies especially in marketing. Many companies using Facebook as an online marketing platform can make five changes or recommendations towards improving their online marketing. They should have a model that deals with Listening => Responding => quick Responce => Avoiding the use of automated email responses => Make the reviews visible. This aspect was noted by Meredith (2009, pp. 64-66), indicating that individuals like it when organizations are taking part in the conversation not only as an entity but as human beings, providing their point of view and also have an ability to listen. It is evident that many companies make feedback provision intricate and the same applies in giving reviews; factors that cause immense frustration among consumers prompting them to lobby against the firm’s products, services or operations. This affects the company’s reputation, and it is simply because many customers are dissatisfied, an element that can be easily dealt with. This has been confirmed by Greg (2009, p. 26) who explains that, when a company has open channels of communication, it fosters consumer trust, as well as, the company-customer association. The above model shows how companies should embark on managing reputation via Facebook and other Social media. The model comprises of crucial business practices such as assessment of, online auditing, formulation of plans and policies, measurement of the executed strategies, performance monitoring, responding to customer’s concerns, as well as, refining or reviewing the procedure in order to suit market conditions. Objectives of Using the Facebook Model The principal objectives of the model are to: 1. To improve the reviews on Facebook in ensuring customer satisfaction. 2. To enable the company to reach a higher rank in the Reach the industry of action. 3. To Build better engagement with customers on Facebook. 4. To be able to increase conversions on Facebook visitors and customers. 5. To strengthen customer loyalty as well as repeat business amongst customers. 6. To be able to encourage customers in writing good reviews as well as sharing of feedback. Strategies To achieve these objectives, the following strategies should be formulated: 1. It is imperative to solicit reviews from contented consumers, as well as, distributing review cards on for reviewing Facebook use 2. The company should share positive consumers’ feedback on Facebook. 3. Use Facebook in monitoring feedback. 4. Should be shared with the employees in order to note where to improve and also in assisting resolve problems. 5. By responding to both positive and negative reviews and feedback. Responsibilities and Roles Marketing managers are responsible for administering Facebook, reviews response and also generation of content. Employees are responsible for making sure that they give the right kind of repose to the customers when necessary. Therefore they are encouraged to follow the business profile on Facebook and share the business information and ideologies with the customer. Conclusion ORM definition is clear but its utilization in business, especially in marketing is still unclear and its infancy stage. Therefore, firms should embark on gaining the right kind of knowledge when using Facebook and other social media platforms, so as to retain a highly esteemed reputation. This will assist in keeping a satisfied base of loyal customers who will always give good reviews for the company, thus maximizing advertising and product sale opportunities provided by the popular social interaction platform. 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