Impact of Social Networking Sites - Example

Running Header: Impact of social networking sites Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Table of Contents Table of Contents 2 Executive summary 3 Introduction 4 Social network sites and marketing 4 Advantages of social networking 7 Better targeting 7 High return on investment 7 No specification or vast technical skills required 7 Better than online ad campaigns 8 It increases visibility 8 Conduct market research 8 Strengthen customer service 9 Bring out personal reputation 9 Raise awareness 9 Spy on competition 9 Enhance personal relationships 10 Development of social media 10 Marketing communications methods and techniques 10 Marketing Communications 12 Role of marketing communications 13 Conclusion 14 References 16 Executive summary This research work critically examines the impact of social networking sites for marketing communications. Social media is recently one of the most influential ways of spreading information across the nations. This is because it has established itself as a leading source of information and has some of the highest number of followers and users. The media has received worldwide attention for its techniques in promotions, creating awareness and giving information on controversial topics. Social networking has therefore taken over from direct marketing of informing people about company’s products. It is also the online version of word of mouth as people are able to give their views and receive feedback immediately. Harnessing this method is therefore beneficial to any business as it results to increased customer base, more sales and higher online visibility. Impact of social networking sites Introduction Online marketing is the recent trending topic in social media marketing as it has significantly influenced most companies to connect to various social media channels as a way of marketing. Glynn and David (2010) shows if well implemented social networks are the cheapest and effective mode of marketing and promotion of organisational products. However, once the social networks are not used effectively they might lead a company into a disaster. This explains the reason why most companies have turned around social media as they benefit from various reasons which include improving company profile, products, improved customers value etc. Social media marketing involves a practice where organisations follow to connect with their target markets. The above study shows the impact of social networking sites for marketing communications that coordinates various promotional elements such as personal selling, sales promotion and direct marketing. Social network sites and marketing According to Jeremiah (2008) in 2007, 33 percent of small businesses indicated that they would increase spending on social networks in marketing their products while only 37 percent of the businesses do not use social networking. This shows that a big number of small businesses use social media, company website and email marketing. The main reason for this increased use of social media is that consumers are connecting with each other this has built trust among them. The other reason is the influence of the media stating social media to be the newest form of marketing and the final reason is that many people use social networks in communicating for example a study showed that about two-third of North American youths make use of social networks daily and a third of adults use social media a month (Gentle 2009). The increased growth of social media has a significant impact in the way businesses communicate to its customers especially with the use of Web 2.0 a technique that enables people and organisations to improve their social and business connections. This increased communication fosters brand awareness and improves customer service. Social media is a platform that is easily accessible to any individual who has easier access to the internet for example with the improvement of social networks such as Twitter, Facebook, You Tube and blogs. These social sites promote company products both on individual level as they explain the uses of products in short messages. This link gives followers an opportunity to spend more time offering advertising opportunities for example the integration of Sporting News website increased visiting websites by over 500 percent (Alicia 2011). Social media is also mostly preferred as it benefits companies and people for the provision of social channels that support customer. They also act as a way of gaining a competitive position in the market, recruitment, retention on new customers and it is also a method of building reputation to online users. The importance of social media marketing increases day by day as companies have significantly adopted the tools of marketing. There are five major important reasons for this which includes: Branding. This is where most companies use social media channels as a way of increasing their friendliness and trustworthiness therefore resulting to better branding. Conversations made with customers through social networks create a great amount of reliability among a company’s customers unlike in the traditional media types such as television where customers lack trustworthiness of the company (Glynn and David 2010). The other reason why most companies use social media in marketing is to improve lead generation. This is important as it enables a company in targeting various strategies and it is also capable of deciding the relevant lead generation and as a result it improves company’s profits. David (2010) argues that social media allows companies to easily engage with its clients as this is important as it helps to retain the existing customers and increase the trustworthiness of the brand. Customers are also able to communicate with their favourite brand producer. By this they express their opinions about certain brands therefore enabling companies to provide products according to the needs of their clients and according to their expectations. It also creates significant transfer of information which is the main purpose of online marketing campaigns. David (2010) describes that the implementation of new products and services also develops awareness about an existing product or service in the market. This is because social media provide the cheapest and better method of informing target audience about the trends in the market. It also enhances company’s products and improving return on investment unlike in the traditional methods of advertising. Li and Bernoff (2008) describes that one major event that was influenced by the social media is the 2008 presidential campaign where Democratic candidate, Barrack Obama was so much visible in Twitter and Facebook sites. His profile page was frequently being updated and he was able to interact with his followers as he asked for votes and this gave followers insight and it also builds trustworthiness and loyalty. Social media is therefore the hottest media format currently in the market due to its effectiveness. David (2010) puts it that as compared to the traditional media types such as television, newspapers and radio, social media emerges the best mode of communication about company’s products. This is because social media is more sophisticated especially with the recent growth of internet users. This makes it easier for companies to inform more target customers through networking sites. Social marketing is therefore the newest internet marketing tool and is a major asset to an organisation if used effectively. This is because social networking enables businesses and websites to gain popularity for example through the use of blogs, video, social networking sites and social bookmarking websites. There are five major advantages brought about by proper use of social marketing. These include; Advantages of social networking Better targeting Once social marketing is effectively implemented in a business, it is capable of drawing a highly targeted segment of internet users. Scoble and Israel (2006) shows this enables more people to visit the business website. Most companies benefit through increased visibility of contents found in the social media both local and global level. Small businesses benefit more by bringing in more local audience through social marketing. High return on investment This is an important aspect in marketing for example to low budgets planned by small businesses in marketing. In order to yield maximum benefits, return on investment has to be good. Social marketing is therefore the cheapest way of marketing available especially is small businesses. This is because social media cost the business nothing in marketing and if any the costs are minimal. Businesses therefore benefit by getting free publicity (Gentle 2009). No specification or vast technical skills required Social marketing is beneficial as one does not need to have technical skills in order to since most of the social media are visually oriented and straightforward and do not require one to learn coded language. Better than online ad campaigns Internet users encounter many advertising every day and people have now become used to the online advertisements. People have also lost their trust on campaigns backed by money and therefore are more capable of trusting advertisements made through social media. This is because it provides a way of attracting potential customers. It increases visibility Social networking helps in spreading marketing information. This information may also be correlated in the business site in order to increase site’s popularity. Wendy (2011) shows the information may also enable businesses in creating new contents needed by people and which will be free therefore encouraging more people to use the social sites. This is because most businesses aim at increasing audience therefore creating awareness. Scoble and Israel (2006) shows social networking has therefore taken over from direct marketing of informing people about company’s products. It is also the online version of word of mouth as people are able to give their views and receive feedback immediately. Harnessing this method is therefore beneficial to any business as it results to increased customer base, more sales and higher online visibility. Conduct market research Social networking enables businesses to conduct market research for example by listening to what customers say about the company’s products. Businesses are able to track what links they click on and know what customers like and what they are more likely to respond to. People feel free and are more likely to express their opinions in social media sites which enable business executives to review their strategies in a way that pleases their customers. Strengthen customer service Social networks enable businesses to answer questions and concerns from customers directly and in a timely manner. This therefore improves customer satisfaction and increase customer loyalty, it also saves business money and time which could have been used for making long distance calls (Petley 2002). Bring out personal reputation Social networks enable businesses to make a name in the outside world. This is because no matter how small a business is, it is capable of building a good reputation though online sites. This is critical in today’s world for example when one is looking for a job or a new business contact (Wendy 2011). Raise awareness As majority of the population today are visiting social media such as Facebook, Twitter and YouTube, it is easier for businesses to get their brand name all over the networks. This enables people to know that the company exists and creates awareness of new products in the market. Lon (2008) shows one is also able to create a fun YouTube video in order to entertain and inform customers about the company. The video should be interesting enough for the target audience to share with more people on the networks. At the same time creating a fun page at Facebook and Twitter will enable more customers to visit and will boost loyalty and facilitate traffic to the website increasing online sales. Spy on competition Social networks enable companies to follow their competitors through the media. By this, one is able to monitor the strategies of the competitors and making sure that they provide better strategies to beat competition. Enhance personal relationships Through sites such as LinkedIn, a company is capable of building business contracts which enhances reputation as an expert in the industry. One also gets a chance of connecting with other professionals in the same field and share important information about the business. Social networks such as LinkedIn enables people to post their resume while looking for a job and this helps to bring in new opportunities. Development of social media Social networks have introduced ways of interacting with one another and therefore taking people to somewhere they never imagined though it is necessary in dealing with the weakening limits remaining which means that the social rules will have to be rewritten. The social networks have stretched the social life of people as one gets an opportunity of meeting various kinds of people who with different ideas and opinions. Benkler (2006) describes that the new concept is getting to know other people online which reflects back to the days where advertisements used Bulletin Board Services (BBS) or CompuServe. The difference between social networking and these services is that in social media people communicate through the immediate messages for example through writing on website page on or twitter. Additionally, social media tends to imitate in person communication and it is more efficient than email, forums or message boards. Marketing communications methods and techniques Sales promotion involves activities, materials and techniques used to supplement the various advertising and marketing efforts. Benkler (2006) describes that sales promotion helps marketers to coordinate advertising and personal selling effort. Petley (2002) gives that examples of sales promotions include special display, coupons, promotional discounts and gifts. There are various reasons that would make a marketer introduce sales promotion. One of the reasons is due to increased competition. Competition in the market has led to the introduction of sales promotion in any organisation. This is because the activities carried out in the process facilitate development of new strategies for beating competitors. The second reason is to gain market share. An organisation that aims at increasing market share may use gives to attract more customers. The third reason is to penetrate a new market or even in existing businesses. Sales promotion is also used to effectively eliminate old items in stock for example through free gifts. Direct marketing on the other hand is a form of advertising that involves communication with targeted group of consumers. Information about products reaches consumers through various channels of advertising such as news papers, TV or radio. Petley (2002) puts it that others include using fliers, promotional letters or street advertising. This process helps marketers to build a profitable customer relationship and therefore enabling business to attain set objectives. The reasons for using direct marketing one are to generate new business leads and sales. O'guinn (2008) shows the other reason is to increase sales from the existing customers. Third, direct marketing re establishes a business relationship with dormant customers in the market therefore influencing them to purchase goods and increase customer loyalty. Other marketing tools include public relations which is necessary for informing customers about the availability of a product. Credibility is added when is used through third party support. The internet is the other tools used in marketing where existing and prospect customers’ obtain necessary information about a particular product and service. Customers are also able to purchase goods online. Other tools used in marketing communications include special events, video and audio presentations and multimedia presentations (Strokes 2008). Marketing Communications Various companies have a way of doing things and sending a unique message to their customers in order to create awareness of products available and to maintain customer loyalty. Marketing communications is described as an important concept used in management and is considered to make all aspects of marketing communication which involves various aspects such as advertising; sales promotion and direct marketing collaborate as an integrated force, rather than separation each to work on its own. Paul (2008) describes that this is said to be managing brand interactions with customers and the principle is to send a message in everything that the company does and what it does not do. Marketing communication involves a process which manages customer relationships that facilitates brand value through improved communication efforts. According to Kotler and Armstrong (2009) long ago, companies used to determine when, where and how to sell and market its products but with the improvement of technology, the driving force is the internet, credit cards, and delivery services as customers now determine and control what, where and how to buy. These changes have significantly companies’ strategies of marketing their products and the most successful would be to use a customer focused approach. One of these approaches is by use of integrated marketing communications as it is also a data driven method of communicating to the customers. Most of the companies have adopted the method such as Apple computers, Nestle, IBM, Microsoft and many others (Petley 2002). Marketing uses a concept of marketing communications planning that tend to add value of a major plan evaluating the strategic role of various communication principles. These include the use of sales promotions, public relations, and direct response. These principles are connected in order to provide clarity and consistency. Marketing communications to be successful, the firm should adopt the right combination of promotion tools and techniques that define the roles and should be easily coordinated to achieve desires outcome. Looking at this perspective, marketing communications may be describes as a strategic management of messages and media used by organisations in marketing their products. The major aspects are one; to make the brand be present and at customers reach and that the brand should spread the same message to customers but in different number of channels (O'guinn 2008). Once organisations do not focus on this, the brand may miss out on major contact points and may not be found when the customers need it. One may also reach our different contact points with different message and the customers may get confused about the brand as there is no one voice that associates the brand. Stroke (2008) shows the major role of integrating marketing communications is first to create awareness to the customers and second is to maintain customers’ loyalty. This therefore harmonises the major purpose, the key goals and strategies therefore creating similar messages and adequate channel of communication with the rest of the stakeholders. Role of marketing communications According to Strokes (2008) the role of marketing communications includes building a long term relationship with the stakeholder through various components which include foundation. This comprise of the corporate image, the buyer behaviour and promotions analysis. Other components of marketing communications (MC) include advertising tools, promotional tools and integration tools. The role of MC is shift from media to several methods of communicating to customers. It is also a way of moving from a manufacturer dominated market to one that is customer controlled and one that uses more specialized media and cantered to a specific target audience for example by the use of social networking. MC uses data-based marketing with greater accountability rather than advertising and marketing. MC also shows a shift from traditional compensation a performance-based with increased accessibility of internet. This includes change from product focus to consumer focus. Powell et al. (2011) shows MC focuses on what the customer wants and needs rather than selling what the manufacturer wants for example the display of products that customers may be willing to buy through various social networks. Price focus has also been replaced by cost. This is because organisations in this modern world are not focusing on customer’s cost in satisfying their needs. Some of these costs include the cost of driving to the firm, cost of conscience on what to eat and buy or the cost of guilt. Place has also been replaced by convenience. Strokes (2008) puts it that customers look for a convenient place to buy their products for example its location, accessibility, time of transaction and availability of products. Promotion has been replaced by communication where businesses need to communicate more and effective messages rather than use of media. This involves using a feedback mechanism which enables the business to understand customers’ needs. Conclusion Regardless of whether social media receives positive and negative attention all over the world, it is undeniable that it is a popular way of networking with friends and family. It is also an effective and cheapest mode of creating awareness, spreading news faster and also communicating an issue to a great number of people. It is also considered reliable and trustworthy by most users and more so businesses that use social media in promotions and creating awareness of their new products in the market. It also acts as a vehicle to open discussions of various subjects relating to politics, religious and cultural issues. Through posting variety of new content in form of debates and reports, social media will continue to develop trustworthy and credibility among users. Social media has incorporated with other broadcasting sources such as BBC and CNN for easier and faster spread of information across nations. References Alicia, D 2011, The importance of social media marketing, viewed 23 August 2011, Benkler, Y 2006, The wealth of networks. New Haven: Yale University Press. David, M 2010, The new rules of marketing and PR, How to use social media, Blogs, News releases, online video and viral marketing to reach buyers directly, 2nd ed., Wiley publishers. Gentle, A 2009, Conversation and community, The social Web for documentation. Fort Collins, Colo: XML Press. 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