The Idea of Social Networking - Literature review Example

Introduction Social network is one of the most novel methods of connecting people and the emergence of internet provided this phenomenon a new dimension and a new direction. Social Networking may be termed as group of people sharing same beliefs, attitudes, values or characteristics however what is most important is the fact that with the advances in technology and emergence of novel and unique websites such orkut.com, facebook etc helped social networking to evolve into new direction. From being a place where members meet electronically, social networking sites also proved to be one of the best sources of generating unconventional means of marketing as the buying behaviors and patterns of consumers is largely influenced by the community behaviors. What is most important to understand is the fact that electronic commerce is now starting to emerge into an entirely new way. The Google Adsense, Craiglist.com has made the advertising cheaper and readily reachable to the targeted audience. The idea of social networking1 added much to this concept as now marketers are targeting such social networking communities to derive strong word of mouth for the products and services they offer. Therefore social networking coupled with electronic commerce not provided an opportunity to meet and broaden the social network of individuals but marketers also tapped a new avenue for marketing the products and services in much unique and effective way. This paper will discuss social networking through electronic commerce besides discussing how social networking can provide a new opportunity to generate revenue for businesses. Social Networking As discussed above that social network are groups who share common characteristics and are willing to formulate common platforms which help them to discuss and share their interests, attitudes, likings, disliking, professional information etc. However, what is critical is the fact that social networks have now emerged in much broader sense. Information technology has broadened the scope and depth of such networks by providing a cheap alternative of meeting electronically. As a result, not only ordinary social networks such as facebook emerged but professional social networks have been developed too where professional belonging to same profession often discuss their ideas and information. While discussing social networking, it is also important to discuss social software, a new word which is re-defining how people tend to meet. Social software has been defined as a set of social tools which allow its users to create, support, manage as well as discover interpersonal relationships. (Teten & Allen, 2005). In an essence, therefore, a social software provide an opportunity to support the conversaton between the members or groups, create and support the social feedback received during that conversation and finally help the emergence of social networks. This can be achieved either through formation of personal websites, online forums, instant messengers such as MSN and Yahoo, creating blogs or finally websites such as facebook, myspace etc. Castells define a network society as a society "whose social structure is made of networks powered by microelectronics-based information and communication technologies" (Manuel. Castells, 2004). This very definition hints towards how the information flows with the help of new technologies and subsequently helps to formulate societies which share particular traits or characteristics. One of the commonest characteristics is the use of information technology to get connected with each other. Viewing in that perspective, social networking may also be described as potential network or electronic societies which allow people to formulate groups that share common characteristics. The following quote from one of the articles appearing on Wharton@ knowledge website suggest that popularity of such social networks: "MySpace, with 70 million visitors, has become the digital equivalent of hanging out at the mall for today's teens, who load the site with photos, news about music groups and detailed profiles of their likes and dislikes. Other social network sites include Facebook, geared to college students, LinkedIn, aimed at professionals, and Xanga, a blog-based community site. In all, an estimated 300 sites, including smaller ones such as StudyBreakers for high schoolers and Photobucket, a site for posting images, make up the social network universe." (Wharton, 2006) The above quote clearly demonstrate how popular the phenomenon of social networking is and how fast it is making en-roads into the lives of different strata of population specially youngsters. It is also critical to understand that besides offering an opportunity to socialize with each other electronically, social networking sites are in fact re-defining the way we use to meet and interact with each other. The greater reliance on information technology as a means of communicating has made it cheaper to keep in touch with each other. What is also most important for the emergence of such societies is the fact that innovation in technologies and willingness of consumers to share and find common platform to explore gave virtually a new dimension to such network societies. According to one article, published in Wall Street Journal, Social Networking allowed the development of more personalized business networking environment which is now crossing over into the modern corporate world to be exploited in more unique way. (VASCELLARO, 2007). The changing dynamics of doing business corroborated by globalization made it easier for organizations to look for more unique and less costly ways of reaching their customers. Such drive to reduce cost and increase the market presence has driven most of the organizations, from small to large, to focus on word of mouth, generated through such social networks, as one of the strongest means of marketing and selling their products to previously unknown and unconventional market segments. However, it is also critical to understand that the future of social networks and their potential to offer new business opportunities also depend upon as to how such networks attempt to keep the interests of their members intact. (Wharton, 2006) therefore whether such networks provide a sustained opportunity to continue to generate revenues largely depend upon how such social networks evolve in the future and whether they will succeed in innovating their offerings to keep their members interested for longer period of time. Business Potential It has been claimed that more than 80% of the consumers replied that they consult with their social networking communities before they make any purchase decision. This fact suggest the great potential offered by social networks to the current businesses as community members often attempt to spread strong word of mouth and provide their personal experiences of driving utility from any product or service they used. Probably the biggest beneficiary in this whole new phenomenon was movie " Cloverfield" as by using viral marketing tactics on social networks and other websites, the producers of this movie was able to divert most of movie's audience to Cinema halls to view this movie. (Hassan, 2008). The success of viral marketing tactics suggested the strong business potential offered by social networking sites as modern corporate world prepare itself to fully tap the potential offered by such networks. Relying on the strong success of social networking sites such as facebook and MySpace etc, new and more innovative social networking sites have emerged too which are specifically directed at shoppers i.e. members share their experiences of using various products and services. It is also probably because of this strong potential of social networks that a new term of social shopping has emerged which now combines both social networking as well as shopping. (TEDESCHI, 2006). However, in order to fully tap the business potential offerd by social networks, it is critical that the organizations mus also continue to evolve and innovate. It has been argued that the marketers who benefited most from social networks attempted to develop "branded micro-sites, customer reviews, forums, peer-to-peer transactions, product blogs and user-generated content projects" (Matthew G. Nelson, 2006). However, it is also critical that the organization must also keep in mind their target groups as return on investment on such efforts may suffer if they fail to divert the concerned target market to use the products and services. Understanding consumers Before embarking on considering the use of social networks as the marketing tool, it is critical that the organizations must first be aware of their target market. Though in modern day world, most of the people use internet however it is still unclear as to whether that specific target market use the same channels for social networking or not. The business potential of social networks can only be exploited in much better way if organizations must know that their target audience are using that spefici social networking tool. For example, it may be unwise for the time being if Ford Motors to advertise on such social networks which are specifically targeted at students because students mainly lack the ability and purchasing power to buy Ford Products. Further, in order to fully tap the potential of the social networks such as blogs, community websites,it is necessary that the organizations must develop a positive experience of their shoppers. This positive experience must have the capability and strength to completely change the way consumers percieved your products or services earlier. (Wright, 2006). This is also critical from the point of view of a consumer because if on one hand, social networks offer a platform for strong word of mouth however, on the other hand, they can also serve as one of the most effective means of negative publicity also therefore what is critical for most of the organizations is to view their consumers in much larger perspective while marketing on social networks. Ethical Issues It is argued that the use of social networks, on internet, is a good way of creating an environment which serves as a good "indicator of diffusion, shape, and cultural specificity of the network society in a given social context" (Manuel. Castells, 2004). However, on the other hand the emergence of social networks also result into the so called digital divide because by becoming more specific in choices, attitudes, values and patterns, members of social networks attempt to segregate themselves from others. This can specially be of great concer for organization which are being pressed hard to adopt ethical business practices. As discussed above that the social networks can also prove as one of the biggest sources of negative publicity therefore firms must also avoid to be part of something which can increase the overall social cost of doing the business for firms. Conclusion Social networking is one of the unique means of interacting and communicating with people across the globe. By sharing same values, choices, preferences and likings, consumers often form digital communities to continue to interacting with themselves in less expensive way. However, such social networks can also prove to be one of the strongest sources of marketing also as social networks have the capability to spread strong word of mouth. Bibliography 1. Hassan, G. (2008, January 17). Can Cloverfield live up to its hype Retrieved November 30, 2008, from BBC: http://news.bbc.co.uk/2/hi/entertainment/7193692.stm 2. Manuel. Castells. (2004). The Network Society: A Cross-cultural Perspective. Northampton,: Mass Edward Elgar Publishing, Inc. 3. Matthew G. Nelson. (2006). Social Media and E-Commerce Converging: Report. Retrieved November 30, 2008, from http://www.clickz.com: http://www.clickz.com/3623667 4. TEDESCHI, B. (2006, September 11). Like Shopping Social Networking Try Social Shopping. Retrieved November 30, 2008, from The New York Times: http://www.nytimes.com/2006/09/11/technology/11ecom.htmlpartner=rssnyt&emc=rss 5. Teten, D., & Allen, S. (2005). The Virtual Handshake: Opening Doors and Closing Deals Online. New York: Amacom. 6. VASCELLARO, E. E. (2007, August 27). Social Networking Goes Professional . Retrieved November 30, 2008, from The Wall Stree Journal: http://online.wsj.com/article/SB118825239984310205.html 7. Wharton. (2006). MySpace, Facebook and Other Social Networking Sites: Hot Today, Gone Tomorrow Retrieved November 30, 2008, from Knowledge@Wharton: http://knowledge.wharton.upenn.edu/article.cfmarticleid=1463 8. Wright, J. (2006). Blog Marketing: The Revolutionary New Way to Increase Sales, Build Your Brand, and Get Exceptional Results . New York: McGraw-Hill Professional, 2006. Read More