Social Media Marketing - Coca-Cola - Essay Example

Social media marketing Introduction Social media refers to interactions between persons as well as s via a virtual network that allows the exchange of ideas as well as information in general. On the other hand, marketing refers to the process of creating awareness about a particular product as well as creating brand loyalty. Social marketing refers to the process of creating website traffic. This is done by creating attention on a particular website so as to allow interaction and idea exchanges among the participants. Technological dynamics have resulted to the wide use of social media and this has resulted to a revolution on how business and especially how marketing is done. Easy accessibility to information in the social sites has enabled firms to penetrate and widen their markets. As such they are able to convene their markets globally into one site thus allow market segmentation. The need to expand and grow businesses due to competition has pushed firms to use social media so as to identify the challenges and opportunities prone to them. The need to create brand loyalty has also led to the use of such media. Interactions via this media help the customers understand a firm and its products better. This is due to the fact that it allows firms to get feedback from the market and on the same breadth give the required responses. The need for in depth market research has called for the use of social media since it’s a much cheaper and convenient way to obtain information. As such it reduces a firm’s marketing expenses while at the same time providing vital information that helps in innovation and invention within a firm. The need to capture the youthful market segment has also created the need to use social media. This market is the most active in the social media. As such, being the most dynamic market segment, firms have to ensure that they keep up with their changing tastes and preferences. ADVANTAGES OF SOCIAL MEDIA Social media enables faster transmission of information. Social media utilises real time technology thus it is instant in terms of relaying the updates. The wide use of social media allows for wider penetration of the global market. In this way businesses are able to tap fresh markets around the globe. This is further enhanced by online payment systems that allow for transactions to be carried out despite the distance. It is also a cheaper mode of marketing as it does not require field work activities. This is also a convenient way to carry out market research as it allows the exchange of ideas. It also enables firms obtain information on how their products are perceived and received in the market. It enables firms remain relevant in the business environment. This is so as it allows interaction among various business stakeholders thus enabling firms keep abreast with the current market dynamics (Lynch, 2003). DISADVANTAGES OF SOCIAL MARKETING Social marketing exposes firm’s secrets since at times it may be difficult to control accessibility. As such it may reduce the competitiveness of the business. It also increases chances of duplication of processes and products by competitors. Social media systems have to be properly secured so as to safeguard the firm’s reputation and confidentiality. Such security systems may be expensive thus not in line with the profit maximisation goal of the firm. The virtual aspect of the system may be an obstacle towards the view of the reality on the ground. As such this may result to distorted information that may cause big losses to the firm or even give the wrong impression to a potential consumer. Bulky traffic on any social media may hamper the flow of information thus reducing its effectiveness. This may also lead to lack of continuous updates thus making some participants feel left out in the online interaction Social media marketing and pepsi Social media has come in handy for Pepsi as it has enabled in to deeply penetrate its market. Its tweet account has a viral effect judging from the numerous tweets. This has a positive effect on the marketing aspect of the business. As such it has created a large following which trickles down to more Pepsi products awareness and thus market expansion in the long run. It has also facilitated market research. As such it has enabled Pepsi to open up outlets as well as branches around the world. This has been a key pillar to its turn around and rejuvenated growth. In light of this it has been able to keep abreast with the dynamics of the market and thus gained a competitive edge (Furlong, 1997). Through interactions with its current as well as potential customer base, it has been able to involve its customers in product development. This includes taking suggestions from their market in relation to branding, naming as well as the flavour. As such consumers are able to identify with a product and consequently this enhances customer loyalty. It has also assisted Pepsi in the evaluation of brand value for their products. This has assisted greatly in decision making procedures as regards what to produce more and not to produce. It enables the firm to prevent huge losses arising from unsold stock. It also helps the firm to gain a competitive advantage against its competitors as it provides a better channel of market evaluation due to its real time nature (Gietzmann, 1996). It assists Pepsi in managing its customer’s expectations. This is possible due to the high level of interactions with its customers. The use of consumer proposals and feedback helps to create a psychological image of how a product will look like or taste. As such, it reduces disappointments thus maintaining the current customers and creating a sense of trust in the firm’s products. This goes a long way in ensuring continued success of its new products as well as continuous improvement of the existing brands and in the long run the firm is able to meet its profit maximisation goal. CASE STUDY: COCA COLA AND USE OF SOCIAL MEDIA A perfect example of a global company that has utilized social media is Coca Cola. Being a fierce competitor of Pepsi, Coca Cola has not been left behind in the social media craze. Coca Cola is using music sites as well as producing catchy advertising melodies so as to attract its customers. This has really worked for them especially in capturing the teenage market. For example Coca Cola has created a music video online that shows teens from various regions around the world dancing alongside One Night Only band. Coca Cola has also created the Coca Cola Open Happiness campaign. This has resulted to massive following in the social media thus pushing up its market numbers. Coupled with the music aspect of the advert they have managed to handle the most dynamic effectively thus giving Pepsi a run for their money. CASE STUDY: GIVEINDIA ORGANISATION AND THE USE OF SOCIAL MEDIA Give India organisation is a charity organisation that has greatly utilized social media to obtain donors. It uses face book, twitter as well as you tube to interact with its stakeholders. It has developed a site that provides small and medium enterprises to interact and obtain ideas as well criticise each other. As such this has created a platform on which businesses can evaluate their performance in comparison to its competitors (McFarland, 1984). It has also helped to source donors so as to keep their activities running. This has allowed convergence of the organisation’s goals from the global market thus facilitating a wider spectrum of resources. By breaking the geographical barriers the world is brought together into a village. As such expansion becomes an opportunity for the business rather than a challenge. Interactions via the social media have enabled the consumers as well as the donors to understand the organisation and its activities thus fostering loyalty (Lipsey, 1987). References Furlong, W. (1997). Marketing concepts. New York, free state. Gietzmann, (1996). Customer satisfaction and privilege. Marketing Research (December): 409- 429. Lipsey. R. G. (1987): An Introduction to Positive Economics, ELBS/Weidenfield and Lynch, J. (2003): Principles of Economics, Boston, USA, West Publishing Company.MBA Project, University of Nairobi, School of Business. McFarland, F. (1984):”IT Changes the Way you Compete”, Harvard Business Review, 62(3). Read More