What Is Social Networking and How It Works - Case Study Example

PAGE MEMO Table of Contents Introduction ………………………………………………………………………………………………………………………..………… 4 What Is Social Networking and How It Works …………………………………..………………………………………. 4 Major Social Networking Sites………………………………………………………………………………………..…………….… 6 Advantages and Disadvantages of Social Networking…………….………………………………………………………… 7 Conclusions ...……………………………………………….…………………………………………………………………………..……. 7 Recommendations …………………………………………………………………………………………….…………………………… 8 Illustrations 1. List of Social Networking Websites……………………………………………………..………………………………. 6 2. Sephora’s Facebook Page …………………………………………………………………………………………………… 7 3. Zappos Twitter Sample Message ……………………………………………………………………………………..…. 7 INTRODUCTION The purpose of this report is to gain a substantial understanding of what social networking is, how it works, who the players are, and to learn about successes achieved through this new marketing strategy. The report also studies what the advantages and disadvantages are when engaging in social networking. Social networking has become such a buzz term these days for both companies and consumers that everyone seems to be getting on the so-called bandwagon. What is social networking really and why is it such a hit that small, medium and large corporations are using this in one form or another? This paper will give an overview of what social networking is about, what it is used for and will endeavor to give examples of companies and their social networking strategies. A social networking plan and recommendations will also be given specifically for Stone Shine, a stone cleaner product that the company, Deb Richey Co. launched online. WHAT IS SOCIAL NETWORKING AND HOW IT WORKS A social network service is defined as “the grouping of individuals into specific groups, like small rural communities or a neighborhood subdivision” (Social, 2011). While the networking can be done physically such as in a workplace, or at school, social networking is most popular online. This is because the internet has transcended physical barriers and has made it possible for millions of people from all over the world to come together for a shared interest. Connecting is no longer impeded by the inability to physically come together. Social networking websites function like an online community of internet users (Social, 2011). Members communicate by email, forum posts, blogs, comments and instant messages. These are all features that can be made available by the varied social network sites. By becoming a member, these sites give every individual the chance to create his/her own profile. Having a personal profile lets members put personal information and define their personal interests, this is what sets social networking platforms apart from offline ones. There is ease of access to member information that makes it accessible to other members, making it easier for people to interact. The networking part also does not have to happen in real-time. This takes away the pressure of having to interact within a time frame, as with personal meetings, or whether to even react at all. Because there is this absence of pressure to connect plus the ease of access, social networking is a very enjoyable activity for lots of people. Coupled with the fact that man is a social being with an innate need to connect, there are literally millions of participants that are hooked into social networking[if you did not use sources, you need to to show you the reader you have done research] – my own words. MAJOR SOCIAL NETWORKING SITES There is this website on the internet called Alexa that has a toolbar that ranks websites “built on the principle that timely and relevant information is essential to a vital web experience”(Alexa, 2011. The higher the rank, the more relevant and widely visited the site is. Wikipedia has a table/list of social networking websites that is arranged according to its Alexa Ranking. The top 5 players are Facebook (Alexa rank #2), Twitter, (#10), LinkedIn (#17), Flickr (#33), and Vkontakte (#37) as can be seen on Exhibit 1. Facebook is clearly the #1 social networking website today. Their website press section boasts of more than 500 million active users with 50% of these logging on every day (“Statistics,” n.d.). Imagine 250 million users logging on to a single website each day. That is a mine of information right there, for brands to tap and for advertisers to target. Companies have started to create their Facebook pages to host fans and followers, and to have a venue to update everyone who’s a Friend with the goings-on for that brand/company. An example would be Sephora’s Facebook page where they update all the members and friends of Sephora with new product releases, promotions, free samples, and store events. See Exhibit #2. Exhibit 1: Social Networking Sites ranked according to its Alexa Page ranking (“Wikipedia,” 2011) Exhibit 2: Sephora’s Facebook Page Twitter, who just celebrated its fifth year of existence on March 21, 2011 has about “190 million users twitting 65 million times a day”(Schonfeld, 2010). A really interesting example of the use of Twitter as a social networking platform is by Zappos, a quite successful online retailer very well known for its exceptional customer service with a corporate culture that is centered on delivering happiness to customers (Balwani, 2009). Customers and followers of the Zappos Twitter account get a daily dose of news and updates that give them an inside look into the company’s goings on. Sometimes a twitt comes from no less than its own CEO. See exhibit 3. Exhibit 3: Zappos Twitter Sample Message (Balwani, 2009) Most of the social networking platforms performed by companies could very well be centered on these top two websites. A close third is LinkedIn with 55 million users (Mccorvey, 2010). It is primarily a business and professional networking website where people post their credentials, establish connections and networks with past and present colleagues, partners, classmates, etc. LinkedIn has become a good source of job leads as well, as people tend to prioritize or favor hiring someone that another contact (friend, colleague, etc.) knows or recommends. It can be safely said that social networking plays a major role in the success and popularity of these social networking websits. ADVANTAGES AND DISADVANTAGES OF SOCIAL There is literally little or no cost to join any of these social networking platforms. Creating an account on any of these top websites is absolutely free. What is needed though, is to appoint someone in charge of this endeavor to ensure there is continuous updates, activities and interaction amongst the members of the community. Having a Facebook or Twitter account gives customers or followers an intimate relationship with the brand (or its representative). There’s a sense of community and belonging fostered in that every single one has a direct line to the company. Sometimes even a CEO twits, blogs or responds which makes it highly impressive. A great example is Sun Microsystem’s CEO, Jonathan Schwartz who maintains a blog - http://blogs.sun.com/jonathan/ where lots of networking professionals follow and learn what’s going on in Sun Microsystems, and also to gain insight from a quite successful and admirable IT figure (Schwartz, 2010). This is very subliminal, but a powerful tool that creates loyalty and builds credibility to the brand. These advantages, when played out right, should hopefully result to increase in sales and brand loyalty. [did you use any sources for this section? you need to cite them to avoid plagiarism] – these are my own words. No source, just a logical conclusion. There are disadvantages to social networking as well. As with any undertaking, there is always a need to put precautionary measures in place. The internet due to its openness can lead any player to vulnerability and to being hacked, scammed or harassed. Because it’s a very open platform, there is very little privacy or anonymity that can be enjoyed. Feedback is also instantaneous and any negative comment can spread like wildfire when not dealt with efficiently (Advantages, 2011) As a conclusion, the advantages of participating in social networking for businesses outweighs the disadvantages, especially since there are ways to anticipate, avoid and address the disadvantages. CONCLUSIONS Networking platforms can certainly be used to gain positive results for companies, products, artists, establishments, and more. Just having the potential to reach and directly communicate with fans, supporters, followers, friends and patrons is reason enough to jump on the bandwagon. To not do so could only potentially mean that the company/product has not evolved with the times, and with the way consumers communicate. One can certainly strategize on the platform to use, or what strategy to take on depending on what works best for the product. The disadvantages are quite calculable and anticipated, and measures can be taken to minimize mishaps, if not completely avoid them. There are social network platforms that are very basic and do not require heavy programming or IT solutions which in turn require a lot of monetary investments from a company. Having a Facebook page, a Twitter account, a website, and being searchable on search engines, primarily on Google, is quite a good and substantial start. Once companies get its feet wet doing social networking and are able to quantify and/or qualify its value and contribution, then that’s the time to explore more creative ways to do social networking. On the basis of the conclusions, the following plan of action is recommended: 1. Start on a simple social networking platform for Stone Shine by creating a Facebook page and start building on the number of followers and friends. All employees will be asked to become a member, and start inviting friends to “Like” the page as well. 2. Create a Twitter account to complement the Facebook page. Twit messages do not need to be updated every minute of every hour, but it is recommended to at least twit once or twice a day. They can be trivia on the product, a happening within the company, welcoming a new customer, etc. Twits have to be engaging, fun but still professional. 3. The next phase would be to create a blog site and plan topics that relate to the product such as how-to-articles on cleaning a coffee stain on a beautiful piece of granite countertop, history about a certain type of stone, using natural stones when building a new home, all about shower stains, and so on. These are going to be articles that consumers of Stone Shine will most likely be interested in reading. The point of the whole program/exercise is to establish authority amongst the members that we are the go-to-people for stone cleaners. 4. Appoint someone from the marketing department to be in charge of these social networking endeavors. 5. Run a 2-3 months trial period, assess and re-strategize based on the findings. Given the many successes and popularity a lot of companies have gained from social networking, there is very little doubt that this won’t bring positive results for Stone Shine and Deb Richey Co. REFERENCES About Alexa internet. Retrieved March 24, 2011, from http://www.alexa.com/company Balwani, S. (2009, February 6). Presenting: 10 of the Smartest Big Brands in Social media. Mashable. Retrieved March 23, 2011, from http://mashable.com/2009/02/06/social-media-smartest-brands/ The Advantages and Disadvantages of Social Networking. Retrieved March 24, 2011, from http://www.everyday-wisdom.com/social-networking.html List of social networking websites. (2011, April 21). Retrieved March 25, 2011, from http://en.wikipedia.org/wiki/List_of_social_networking_websites Mccorvey, JJ. (2010, January 25). How to Use Social Networking Sites to Drive Business. Inc.com. Retrieved March 23, 2011, from http://www.inc.com/guides/using-social-networking-sites.html Nations, D. (2011). What is Social Networking? Social Networking Explained. About.com. Retrieved March 24, 2011, from http://webtrends.about.com/od/socialnetworking/a/social-network.htm Schonfeld, Erick. (2010, June 8). Costolo: Twitter Now Has 190 Million Users Tweeting 65 Million Times A Day. Retrieved March 25, 2011, from http://techcrunch.com/2010/06/08/Twitter-190-million-users/ Schwartz, J. (2010, January 27). Where Life Takes Me Next. Jonathan’s Blog. Retrieved March 24, 2011, from http://blogs.sun.com/jonathan/ Social Networking. Retrieved March 25, 2011, from http://www.whatissocialnetworking.com/ “Statistics.” (n.d.). Retrieved March 24, 2011, from http://www.Facebook.com/press/info.php?statistics Twitter. Retrieved March 23, 2011, from http://Twitter.com/Twitter/status/49855164038905856 WHAT IS SOCIAL NETWORKING AND HOW IT WORKS Executive Summary The purpose of this report is to gain a basic and substantial understanding of what social networking is, how it works, who the players are, and to learn about successes achieved through this new marketing strategy. The report also studies what the advantages and disadvantages are when engaging in social networking. The top three players in the social networking field are Facebook , Twitter, and LinkedIn. These websites boast of 500 million, 190 million and 55 million users respectively. At any given time, at least a third of these members are online and actively interacting within their own networks. This is a gold mine that businesses can tap. The name of the game is advertising and reaching as many eyeballs as possible. Establishing a brand’s presence through social networking definitely brings a lot of advantages to businesses and outweighs the disadvantages. There are social network platforms that are very basic and do not require heavy programming or IT solutions which in turn require a lot of monetary investments from a company. Having a Facebook page, a Twitter account, a website, and being searchable on search engines, primarily on Google, is quite a good and substantial start. Once companies get its feet wet doing social networking and are able to quantify and/or qualify its value and contribution, then that’s the time to explore more creative ways to do social networking. Read More