Use of Social Networking Sites for Marketing in the Fast Food Industry - Example

Topic: Use of Social Networking Sites for marketing in the fast food industry. (Presented by) (Presented to) Institution Date Introduction Marketing remains one of the most important functions of any business or company. It is the branch which is responsible for raising awareness of products and services of a business among its target market (Marshall & Johnston, 2010). Marketing is also responsible for profiling the behaviour of customers and tailoring products that suit them. As such, marketing is directly related to the volume of sales made by the business and ultimately the profit made. However, marketing has continued to constantly change mainly due to the ever evolving technology. Technological advancements could be viewed as a double-edged sword as far as marketing is concerned. The Internet and the world-wide web have presented and continue to present excellent marketing opportunities for businesses. However, they also present considerable challenges largely due to their ever changing nature. Thus, organisations and businesses should always strive to keep up with the pace so that their marketing strategies are not outdated. As a result, fundamental changes in the ways people interact in both the business world and the private sphere have occurred. Online-based communication channels, such as e-mail, chatting applications, web blogs and other internet forums have changed entire business process chains (Haythornthwaite, 2005). One of the most important technological developments is the invention of the web 2.0 standard. Web 2.0 is a term that refers to the changing trends in the use of World Wide Web (WWW) technology and web design which aim to improve information sharing; enhance creativity, collaboration and functionality of the web. Web 2.0 concepts have resulted in the development and evolution of web-based hosted services and communities such as social-networking sites, wikis, blogs video sharing sites and folksonomies. Although the term 2.0 gives hint of a new version of the World Wide Web, it does not refer to an update or improvement to any technical specifications, but to changes in the ways software developers and end-users utilise the Web (Washington & Miller, 2010). According to Tim O'Reilly, “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as platform, and an attempt to understand the rules for success on that new platform.” Social networking sites (SNS) in particular have had a profound effect by changing the nature and efficiency of communication processes in both business and private life (Misner, 1999). A social network is defined a social structure made of nodes (usually individuals or organizations), which are tied by one or more specific types of interdependencies such as visions, ideas, values, financial exchange, friendship, dislike ,kinship , conflict or trade. The resulting graph-based structures are usually very complex (Washington &Miller, 2010). Examples of social networking sites include: Facebook, twitter, nimbuzz and Hi5. These sites offer would-be consumers an opportunity to interact among themselves by freely exchanging ideas and information that may deemed relevant for the services or products offered by a given business. Facebook, for instance, has a feature which gives a business or an organisation with a large following an opportunity to open a fan page where their fans, who are potentially their customers, interact with them. Not only are the fans able to gather information about the services and products offered but they are also able to share information and discuss the competitiveness of those products and services as far as value for money is concerned. Twitter on the other hand, gives prospective customers an opportunity to become followers of an account that is run by the business or organisation where they can access information on new products and services offered. Use of social networking sites in the fast food industry Marketers in the fast food industry are particularly interested in better understanding of WOM (word to mouth) as opposed to traditional forms of communication which appear to be losing effectiveness (Nail 2005).Word-of-mouth communication strategies are particularly appealing to marketers in this industry because they combine the prospect of overcoming consumer resistance with significantly lower costs and fast delivery, especially through technology, such as the social networking sites. Social networking sites (SNS) provide numerous avenues for consumers to share their views, ideas, preferences, or experiences with others. This creates an interactive environment as well as opportunities for firms to take advantage of marketing. Consequently, it is not uncommon to see various hotels and fast food chains advertising their products in the social network sites such as Facebook and twitter. Others even have dedicated blogs where they inform their customers of latest products, treats and giveaways. Social Networking in a Business. Case Study: Dairy Queen Dairy Queen (DQ) is an ice cream company that has been in operation since 1940. Over the many years that they been in existence, they have positioned themselves as the market leader in the soft serve and fast food restaurant industry. They currently operate about 5,600 plus domestic stores and internationally are in more than twenty countries (Morril, 2009). The dairy queen brand (DQ) brand is well recognised all over the world. As a matter of fact, it is by nature a very social brand. Until recently they relied on traditional media for advertising like many other major corporations. However, all that changed in 2008 when they embarked in the world of social media and never looked back. Dairy Queen is not among those companies that one might think would profit from the use of social networking, but the truth of the matter is that they have excelled by social networking and building on a fan base to keep their customers coming in and getting tasty treats. Dairy Queen has always taken note of the changing landscape in public relations and turned that into personal connections between groups, individuals; both inside and outside the company. Dairy Queen is doing it right, not only with their famous free five dollar tasty treat give-a-ways, but also by allowing people to become fans on Facebook. Who does not like ice cream? Who does not have fond memories of their childhood and ice cream? Dairy Queen employs a strategy that rekindles these fond memories and gives people a chance to rekindle their childhood memories by giving someone a five dollar card to relive something from their childhood. In addition, they have special packages where one is allowed to bring along their families which is a really good idea because it results in a big pool of customers mainly due to advertising by word of mouth (WOM) effect and referrals on the social networks. In summary, social networking significantly cuts down the cost of advertising of dairy Queen while allowing many people to participate and put them back in people’s minds. This is why it has worked and why it remains a powerful approach in social media for fast food industry. It invokes memories of when we were there last; the idea behind this approach is to bring that desire for a treat or tasty food back into the forefront of people’s minds. Social media provides for that connection, and that is where its power exists. It is about the connections. No information on social network marketing and its implications will be complete without highlighting the distinctive advantages of using this medium over traditional forms of advertising. Among the several reasons for the immense popularity of advertising on social networks include: Social networking has a long lasting and wide reaching appeal. It is not only able to reach consumers from every corner of the globe but also the impact of any efforts yield long standing results as demonstrated in the case of Dairy Queen. Social networking allows a business to communicate with its consumers directly. As a result of the increased level of interaction, a rare chance is given to the marketer or the business owner to exchange ideas and freely share information with his/her consumers and be a part of the marketing equation. It also provides a means for tracing performance. Another extraordinary feature of marketing and advertising on social network platforms is the ability to trace the efficacy of the money used for marketing and the precise impact of advertisements. Social networking provides a primal human need. Social networking sites allow people to actually socialize and communicate as opposed to other forms of marketing such as radio or TV where an advertisement is frequently perceived as an irritating interruption. Discussion As seen in the case study above, social networking in the fast food industry presents exciting opportunities for any company in the fast food industry that wishes to take its marketing to the next levels while considerably keeping the costs down. Apart from low costs, there are several other advantages that social networking presents to a company as discussed in the section above. As such, managers and other decision makers in a business should endeavour to fully understand the implications of social networking in this industry. Impact of Social Networking on the fast food industry The big question among management and other key decision makers in the industry is how businesses and corporations will be impacted, and how they will make the most of the web 2.0 opportunities such as social networking sites (SNS). One of the impacts of social networks on this industry is changing how corporations communicate. Social Networking is introducing a broad new range of technology and innovations to communications with enhanced multimedia, presence and interactivity. Customers are therefore able to look for values that make sense apart from looking for values of products. Social networks are also expected to change how businesses in the fast food industry are organised. In fact, many businesses are contemplating flattening their pyramid in order to gain the benefits of start-ups with their associated adaptability and fast growth models. Managers will need to adapt and become Social Networking evangelists (Demailly, 2009). Conclusion Social media marketing is playing an increasingly significant role in the marketing strategies of businesses and companies. One of the biggest advantages that social Networking Sites (SNS) have over business or news sites is that consumers who visit social media websites are more likely to take action because of the high level of interaction experienced in these platforms. Consequently, businesses and companies which integrate elements of social media into their marketing strategies will have a greater opportunity to influence consumers’ behaviour including buying choices. References Demailly, C. (2009). The Business Impacts of Social Networking. A White Paper in Cooperation with Early Strategies Consulting .Retrieved from http://www.att.com/emea. Haythornthwaite, C. (2005). Social Networks and Internet Connectivity Effects. Information, Communication & Society. 2005 (8), 125-147. Marshall, G., & Johnston, M., (2010). Essential of Marketing Management. London: McGraw-Hill. Morrill, D., (2009). Using Social Networking in Your Business. Case Study: Dairy Queen. Misner,R. (1999), The World’s Best Known Marketing Secret: Building Your Business with Word-of-Mouth Marketing, 2d ed. Austin: Bard Press. Nail, J. (2005). What’s the Buzz on Word-of-Mouth Marketing? Social Computing and Consumer Control Put Momentum into Viral Marketing. Retrieved fromhttp://www.forrester.com/Research /Document/Excerpt/0, 72. O’Reilly, T. (2005). What Is Web 2.0? Design Patterns and Business Models for the Next Generation of Software. Retrieved from http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html. Washington, K. & Miller, R.K. (2009). In R.K. Miller (Ed.), Consumer Behaviour 2010 Social Networking (69-72). Read More