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Social Power - Article Review

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Social Power

Since the dawn of time communication has been evolving. Not all too many years ago the pony express was the only way to get a message to a person in another state. Today we are able to talk to someone on the other side of the globe with just a click of a mouse. Facebook, Twitter and blogs have given people an enormous power to connect and change the world. The power of communication has been given credit for the fall of dictators and the liberation of nations. And, with this new found power consumers have enormous expectations. The power to communicate instantly has changed the face of business as well. Customers can now shop around the world from the comfort of their own home or office. This new shopping power means a change for how businesses market their products and even their companies. This also changes how companies get feedback on consumer opinion. To collect and analyze the information in this new media arena companies have had to develop centers to monitor the vast amounts of messages on the media waves. In one day there can be hundreds of thousands of tweets and blogs, maybe even millions. Sorting through these messages is something relatively new for most companies. In the past customer feedback might be only from word of mouth or maybe a letter or email from an unhappy customer. As we look at the media, how do we make it part of our corporate strategy? For some companies this means joining the social media frenzy. Companies around the world are using Facebook to get into the main stream of the social power. Going into Facebook a person can “like” a company and from then forward that company is part of the individuals Facebook page. People who do this give the companies an opportunity to learn about the customer from the Facebook profiles. This can give the company insight into the buying preferences of the person. One of the more interesting items mentioned in this article was the way Gatorade has reacted to social media. I was surprised to read that Gatorade had a command center just for the purpose of monitoring the messages on Facebook, Twitter and individual blogs. If someone says something positive or negative Gatorade can react immediately. For Dominos Pizza fast reaction to something placed on You Tube was necessary to save the company from huge losses. The use of these social sites can be advantageous for the development of certain business policies to a specific target group. Some sites have been developed just for the use of buyers and sellers wanting to interact. The creation of new software programs for use in these sites has been enormous. This is different than just putting a pop-up advertisement on the internet. These types of sites have completely changed the buying process cycle. While the marketplace is changing, some fundamentals remain the same. A company will need to find out what the customer is looking for and then develop the way in which they can provide the goods and services. Corporate Strategy will still require gathering information and analysis of that information. Even if the information comes from a blog or a remark by someone on Facebook it is still just information. Companies will still need to establish customer trust. An image will still need to be developed. Information on the internet can make or break a company, whether it is right or wrong. But the customer is going to be more demanding and be in power. Companies cannot fear this new power but embrace it. Strategic Management and Business Policies will now need to include social media in each of the areas. Press releases and newsletters can be posted into the social media as part of Public Relations. Account Management may need to be handled on Twitter. Maybe entire purchases can be handled through the use of Twitter and Facebook. Advertising will need to include how the customer can find you on Facebook and be your friend.
Technology has always been part of the development of Customer Relationship Management (CRM). The use of social media will now be just another tool in the CRM kit. Customer retention and customer loyalty can still be developed with Facebook and Twitter. Email was once feared as the death of the postal service and now the social power of this latest environment is causing concern too.
Change is something that we all must embrace and use to our advantage. Any time you let new technology and the changes it brings hold you back; you will be lost. This is a new phase that we are entering. It will be fun to watch as it brings the customer and big business together. I look forward to seeing how Strategic Management and Business Policies will be shaped in the pages of Facebook and Twitter and the blogs of everyone around the world.

References:
Kirkpatrick, D., (2011, September 25). Social Power and the coming Corporate Revolution. Forbes, 71-81

Wheelen,T.L., & Hunger. J. D., (2010). Strategic Management and Business Policy: Achieving Sustainability (12th ed.). Saddle River, New Jersey: Prentice Hall Publishers

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