Social network marketing - Literature review Example

Social Networking Marketing: Literature Review By In this information technology based era every business is trying to enhance its services andproducts over its competitors. In this case online support is considered to be a crucial factor of any advertising policy and arrangement. Additionally, companies and industries initiated promotion and publicity operations focused on people with the help of written sources and audio/video channels. However, this policy is expensive and its efficacy is hard to determine.

On the other hand, it is generally not obvious that how broadcast marketing will play a major role in the latest information financial condition that allows for exceptionally cooperative and focused interactions. Thus, in this customer-oriented financial system, companies are trying to discover additional money-making methods to promote their business services and products-line, access existing clients, and make new users/clients across the business boundaries (Phillips et al., 2010). In addition, social networking websites facilitate users to communicate with people who exchange or distribute similar ideas or information.

Although these websites were originally produced to assist social associations, dealers are recognizing the prospect of these sites to offer the mechanisms to encourage valuable services and products of business. In this scenario, a very popular social networking website in the U.S. is Facebook, which comprises more than 500 million worldwide users. Additionally, the social networking websites similar to Facebook, Flickr and MySpace have turned into a well-liked method to distribute and publicize web based material.

Their huge fame has directed to viral marketing methodologies that try to offer useful content, services, effective products and thoughts through these social networking websites. Though, there exists less information openly accessible about viral marketing in the real world as well as not many studies and researches have demonstrated how valuable business data and information moves over an existing web based social network website. On the other hand, the web based social networking capabilities have currently turned into a well-liked manner to exchange and distribute business data.

In this scenario, the registered and regular users of social networking websites like Flicker, MySpace, and Facebook form systems/networks of their colleagues. Additionally, people over here distribute, discover, and distribute website data at a huge level. Thus, due to large popularity of these websites corporations utilize them for their business marketing. In addition, they are also used for viral marketing of website content, business products, and supporting operations for instance, several movie studios store and offer promos for their videos on MySpace website (Cha et al.

, 2009; Lemel, 2010). Moreover, an imperative and unique characteristic of web based social networks is the prospect for valuable data and information distribution down the social associations, that is information broadcast amongst associates in social networks, an individual expects with the passage of time. It is extensively supposed that this type of user-to-user interactions, as well known as “rumor” interactions, is able to increase website material, thoughts, or data extensively and swiftly all through the social network.

In this scenario, various researches have suggested viral marketing operations to use the rumor consequence. Additionally, during the year 2007, organizations spent $1.2 billion on publicity through web based social networks globally, and this volume is forecasted to go thrice by the end of 2011. However, to date, there exists less data and information openly accessible over viral marketing in the real-world and too little research work has been done to indentify how data and information is distributed on web based social networks (Cha et al.

, 2009; Lemel, 2010). Furthermore, companies are spending a lot of investment on social media networking websites at a quicker pace like any other type of web based marketing strategy. Few researches through Forrester Research revealed that investment on social network based arrangements will augment from $455 million during the year 2008 to $3.1 billion during the 2014 (which shows a 335% exceptional increase). In addition, just about 25 % of small-scale companies researched by Adology Research stated that they would like to invest much on social network based framework during the year 2011.

Moreover, the awareness and adoption of social networking paradigm by the companies reveals the increasing value of the utilization of these social networking capabilities (Lacho & Marinello, 2010). Bibliography Cha, M., Mislove, A. & Gummadi, K.P., 2009. A measurement-driven analysis of information propagation in the flickr social network. In WWW '09 Proceedings of the 18th international conference on World wide web., 2009. ACM New York, USA. Lacho, K.J. & Marinello, C., 2010. How small business owners can use social networking to promote their business.

The Entrepreneurial Executive, 15, pp.127-33. Lemel, R., 2010. Social Networking Tools for Marketing Fine Art. Allied Academies International Conference: Proceedings of the Academy of Marketing Studies (AMS), 15(2), pp.31-34. Phillips, M., McFadden, D.T. & Sullins, M., 2010. How Effective Is Social Networking for Direct Marketers? Journal of Food Distribution Research, 41(1), pp.96-100.