Free Essay

Social Media Effects on Business

In: Business and Management

Submitted By clove420
Words 2542
Pages 11
Social Media Effects on Business

Contemporary Business – Dr. Professor
March 10, 2010

Social media is a popularity tool for individuals and business. As an experiment in the infancy of globalization it has outgrown its original hypothesis’. If sites such as Facebook were their own countries, they would be placed in the podium of power internationally. (Divol, R., Edelman, D., & Sarrazin, H. 2012) So, it would be safe to assume that star power is worth its time spent creating. By publishing high quality work and building a massive amount of followers; your audience will share your information with their audience. (Gunelius, Susan. 2013) However, from a marketing stand point business can’t rely on social media alone. “If you spend all your time on the social Web directly promoting your products and services, people will stop listening. You must add value to the conversation. Focus less on conversions and more on creating amazing content and developing relationships with online influencers. In time, those people will become a powerful catalyst for word-of-mouth marketing for your business.” (Gunelius, Susan. 2013)
Gaining popularity in the business landscape of the twenty first century is quite different than that of the past century, and adversely more evolved than the nineteenth century. Prior to the industrial revolution consumers learned of new products and services by word of mouth, the occasional publication, and pounding the ground beneath their soles. The everyday Jack and Jill would head to the corner store for most things that could not be obtained by their own hard work and diligence. Occasionally close knit neighborhoods would practice the art of bartering; hence the language of trade. In order to become popular in trade an entrepreneur whether blue or white collar would have to practice what they preached. If any conflict in sales occurred, most often than not it was due to irresponsible actions on the part of the business person.
It is my hypothetical view, yet one that is worth discussing that social media has existed before the twenty first century. As inventions such as the industrial printing press pumped out larger amounts of advertising to supplement reader subscription, the consumer was officially created. Products that were once exclusive to mail order catalogs, exclusive boutiques, and handcrafted artisans and cultured by high society could now be seen more than talked about. Increasing the public’s ability to monitor trends and respond would only be disabled by economic fallout. At the same time, purchasing of raw materials to create goods and improve services was amplified due to popularization of marketing. Essentially the social media tool of the nineteenth century could be the industrial printing press.
Personal acquaintances have noted that the speed of media in the twentieth century ideas of marketing truly embraced what aspects being social would constitute. Technological evolution, the growth of communication, and the breaking down of social class structure in the continental United States converged with media. The children of these impetuses would grow to be giants. The birth of the automobile allowed people to travel distances to purchase product that were once only obtainable in weeks, within a matter of days. Due to this, social interaction would be greatly affected. More people talking about business outside of boundaries once difficult would grow business that could afford to advertise in publications that were able to grow their distribution beyond the local market. As sales dollars for businesses grew beyond local and mail order distribution, so would the publications that solicited their offerings.
The mass introduction of the telephone into popular culture took communication through paper and pen, typewriter, and the communication wire allowed culture to talk even more than before. Conversation which once would be limited to travel now could be carried out without ever leaving the living room. This form of media grew employment, grew income, and allowed for ordering systems to be grown. Job creation at the effect of technological innovation increased distribution channels. Trade would become career fields as the entrepreneur could access larger pools of potential business. The consumer could have conflicts on service appealed faster than before. Just the same being able to complement or complain to neighbors and business’ about business faster than ever before would popularize public opinion. Business of all sizes would be affected by this “media.” Making something public would compromise moralities. As society was able to discuss and interact with merchants daily instead of periodically from all walks of life through multiple regions, business was forced to monitor, respond, and lead customer behavior.
The next big change to customer behavior would be the invention and culture incubated through the radio and television. Broadcasting would need financial backing, and like journalism it would need advertising dollars. Increasing the market of a business would now have the ability to travel at the speed of sound. Telegraph lines used for telegraph systems in the nineteenth century that were expanded through telecommunication were now becoming everyday consumer technology. Business could now go even further than the telephone. Through the science of carrying sound and image through radio waves cut the umbilical cord of client and business. It was now replaced by antennae. A wireless world would break some of the inhibition associated with the wired public. Twenty year cycles were first observed due to this technology.
Twenty years prior to the industrial printing press, consumer demand was based off local supply. Two decades after media was widely accessible to society, the telephone and automobile took the place of the horse and telegraph. In 1922, the first radio advertisement hit the airwaves. (McDonough, John. 2012) The same cycle produced radio and television. The ability to connect, disconnect, and repeat were now only limited by how long a person was willing to accept information sitting down or stopping their routine.
The radio and television could inform, misinform, create, fabricate, and be the shepherd to the slaughterhouse. Reading, writing, publishing, criticizing, and building social consciousness once regarded as a private matter until it was agreed to take public would now be broken down. Walls of class could be turned into curtains to be pulled back for the public. Entertainment was now something available any day of the week. Every broadcast station would be sponsored by a business. In order to “sponsor” a broadcast, the business would provide advertising dollars to the funding and maintenance of the media outlet. The average household who enjoyed programming would make purchasing decisions based off of being programmed. This process would evolve into the term “branding.”
A brand was originally a way of marking a product; such as livestock for sale by the owner in order to track it when misplaced or stolen. Agriculturally developed, industrially implemented, and consumer driven a brand becomes a namesake. It is something that has a name beyond its creator. It carries a life cycle and is only as good as the popular success or failure within a market. Raw product, fabricated goods, and services offered take on an image. This image is what society advertises. Essentially brand identification is the child of social media. Before a product is sold it is given an image. This image is based off of what media outlets a business wants to advertise within. Within the media enterprise used to market a brand lays a “social economic” class. The brand is created to target a demographic based on size equal to that of the supply of product generated. As the brand grows, so does the market. This in turn makes the media socially based. It may be safe to make the assumption that social media could not have occurred without the practice of branding.
The ultimate change to how society conducts business has only recently occurred. The introduction of the personal computer and the convenience it provides has taken the largest leap in company to consumer relations. The personal touch that computing has opened up for business allows for multiple processes to work together more efficiently than in the past. This in turn has opened up the avenue for what we now know as networking. Networking brings the business unit in all of its facets into one setting, and opens true dialogue with the consumer.
The internet was originally established as a means to communicate information from computer to computer over a network based off of one main computing center. As the internet grew into the World Wide Web social networking sites enabled the consumer to connect with business’ in completely new arenas. The general public now could complement, as well as, complain publicly in a global environment. New and established companies could track the information, respond to it, and drive customer behavior.
Social media marketing is now an emerging strategy based on leveraging power. Establishing a hierarchy where the consumer feels as if they are at the top rung of the ladder is very important. In order to do so there are ten laws of marketing every business should follow. Listening is more important than talking. The marketing leader should only join in the online audience’s discussion in order to serve the customer. Secondly, the team should focus on building and maintaining brand loyalty. As always quality is the number one priority. Patience in the campaign is vital. Commitment to building the audience through indirect influence, acting as a moderator, and establishing value will retain new consumers. Acknowledging the influence of the community, keeping lines of communication open, and reciprocation of returns will make the investment in social media marketing strategy a well carried out campaign. After all branding the customer, as well as, the product line will sustain the bottom line. (Gunelius, Susan. 2013)
According to the Chicago Daily Herald an investment in social media technology benefits every size of business. (Paddock, 2009) However in order to make the investment a worthwhile venture, first having the right strategy going into the web for returns are essential. Applying the right social tools, keeping up to date on the most recent developments, and applying them will not waste precious time. Time is money, and even though social media marketing is cost effective as a set of tools, people still have to earn something for their time spent socializing in the web based marketplace.
Two of the most successful brands in the history of marketing their products to the public are Pepsi and Coke. What other companies can learn from these two soft drink giants is that branding a product takes more than offering something delicious to the public taste, but also making the product fun. Marketing reaches it goal by touching points of interest enough that it directly influences purchasing behavior.
Pepsi is notorious for hyping new product launches. Product lines such as Mountain Dew and Gatorade have brought in big name celebrities, endorsement of major sporting events, and being involved in popular culture (Erickson, J. 2009). Such events such as the “Dew tour” incorporate trends in alternative sports, music industry iconography, and even delve into environmental awareness. This tour has grown in popularity through online advertising campaigns that have included consumers voting on emerging product varieties. By incorporating public opinion on taste, look, and geographic location of distribution Pepsi has taken the lead in product development (Hardy, Quentin 2011).
Pepsi has gained customer insight in the building of community based projects as well. The Pepsi Refresh Project of 2010 was a marketing initiative by the company to dump funding into community development campaigns. It allowed the general public to vote on public assistance programs that applied to be a part of the refresh project. Pepsi benefited from this in tax breaks, and the winning campaigns benefited by receiving funding that normally would’ve taken months to apply for traditionally ( Hatch, David 2013) . The use of the refresheverything.com website was established as a social media marketing portal to gain information on causes that were worthy of investing in. This cut out much of the research time that it would take traditionally to fins such information. Enabling others to contribute data, build upon it, and eventually decide on a winner was a philanthropological breakthrough.
Coca Cola (Coke) has built its success on social media marketing also. To this day, one of the hottest antique collectibles is Coca Cola advertising signage. Cable television shows such as American Pickers, has shown the trend has not slowed down. This is due to the company building customer loyalty through past behaviors. Many people around the continental United States have fond memories of purchasing Coke products as children. In turn, the marketing of the time period collective made the brand family oriented. During the 1980s Coke even made it trendy to wear clothing that bore the brand’s logo. By integrating itself into the average American household through food product, clothing, and home décor it became social. Through brand marketing in such a way, and accessing several types of media, Coke has truly accessed and utilized the social aspects of multiple forms of advertising media.
Marketing is a necessary component of every size of business. No matter what a company is selling, it has to be brought to market. Merchants have deployed many forms of advertising since the birth of civilization. The entrepreneur of this age shares similar trials as their forefathers. The process of communicating to the public a good or service, and making it readily available to people who need or want it comes in many forms. The power of suggestion can only go so far. Inevitably the purchaser has to make a decision to be a bystander or a buyer. It is up to the merchant to tap into what controls purchasing, observe it, and respond accordingly.
Creating an audience of interested buyers has changed with the evolution of communication. How and when people congregate will never stay the same. Trends in how cultures respond to the changes of communication will always follow the behaviors that never change. One thing that will always be a constant is people always will want something they can’t have. Another thing is supply and demands remain coexistent. No matter how people communicate, they will always want to be heard (Paddock, 2004). As long as the merchant of today can be a part of the audience they serve, they will always have an opportunity to direct the social behavior of the goods and services they peddle.

Resources:
Divol, R., Edelman, D., & Sarrazin, H. (2012). Demystifying social media. Mckinsey Quarterly, (2), 66-77
ERICKSON, J. (2009). THE (NEW) PEPSI GENERATION. Successful Promotions, 42(6), 40-44.
“Four ways to invest in social media, technology.” Chicago Daily Herald (Paddock). 04 Feb. 2013: 26.
Hardy, Quentin. (2011). Pepsico’s Social Media Transformation. Forbes
Retrieved from http://www.forbes.com/sites/quentinhardy/2011/07/29/pepsicos-social-media-transformation
Hatch, David.(2013). Pepsi Measures Online Pulse with Social Media Strategy. US News and World Report.
Retrieved from http://money.usnews.com/money/business-economy/articles/2012/05/15/pepsi-measures-online-pulse-with-social-media-strategy
Gunelius, Susan. (2013). 10 Laws of Social Media Marketing. Entrepreneur.com
Retrieved from http://ww.entrepreneur.com/article/218160
McDonough, John, (2012). First Radio Commercial Hit Airwaves 90 Years Ago. NPR News. Retrieved from http://www.npr.org/2012/08/29/160265990/first-radio-commercial-hit-airwaves-90-years-ago

Similar Documents

Free Essay

Effects of Social Media on Modern Business

...The effects of social media in modern business Introduction Thesis statement: Social media affects modern business positively and negatively. Social media alludes to web-based applications that facilitate interactions in which people exchange information in virtual networks and communities. It requires Internet and mobile technologies to develop interactive platforms that allow users to generate, modify, discuss, and share content. Reach, immediacy, frequency, and permanence are some of the features that distinguish social media from traditional media. Social media technologies have many forms, including Internet forums, social blogs, vlogs, weblogs, wikis, podcasts, social networks, microblogs, and videos/pictures/photographs. Popular social media platforms include YouTube (for video-sharing), Twitter (for microblogging), WordPress and Blogger (for blog hosting), Flickr and Photbucket (for photo-sharing). LinkedIn, MySpace, and Facebook (social networks), Digg (a social news site), eHow (an article directory), and Wikipedia (a collaborative project and wiki-based encyclopedia). Others are content communities, such as DailyMotion, virtual social worlds (Second Life), and virtual game-worlds (World of Warcraft) (Kaplan 129-130). The present paper will discuss the positive and adverse impacts of social media on modern business. Positive effects Social media outlets have broadened the channels that companies can use to market their products/services....

Words: 3390 - Pages: 14

Premium Essay

Impact of Social Media on the Workplace

...Generally, people are using social media for various reasons, such as to share information, to get in touch with their loved ones, and to look for business colleagues for collaborating in work processes. Computer literacy and web connectivity has become necessary skills for employees and also for organizations. For enhancing business operations, various corporations are progressively experimenting with the use of social media (Swartz, 2008). Today, Social media has become a tool to attract clients, balance association with business partners, to display...

Words: 2892 - Pages: 12

Premium Essay

The Effect of Social Media Marketing to the Choice and Preference of 4th Year Bsba Students of Lspu in Buying a Products or Services

...The rise of social media over the past decade has raised the questions of if, how, and under what circumstances they work for marketing purposes. This thesis is intended to add to that emerging body of research. Social media is not a new concept to the society, it has been effect from the 1950’s commencing with the phone era but has only recently been mainstreamed into the culture and business world. The late 1960s saw the...

Words: 3475 - Pages: 14

Premium Essay

Social Media

...Branding Social media affects...

Words: 1944 - Pages: 8

Premium Essay

The Impact of Technology and Online Communities

...The impact of technology and online communities The importance of social media in today’s generation is really significant, and because of its influence, it is recognized as an excellent marketing tool and could help businesses in building an online presence. Social media paved the way for the evolution of social relations and of people’s interaction. Nowadays, people seem to do everything online: making friends, watch movies, and even transact businesses (admin, 2011). As part of your social media branding, the importance of social media in today’s society is nothing to be overlooked at and it should never be, it was not existed a short few years ago but yet we could not see ourselves without it. Today’s social media is much more than just a website that young teenagers and our children use to talk to their friends. Everybody from big business to independent business owners is using some form of social media marketing plan in their day to day lives. Social media is being used all over the world by many people, different age range but mostly by teenagers and young adults. Social media is being used mostly for businesses, social networking, researching, entertainment and news. The importance of social media has really made the world a smaller place; we can now do business with people from all over the world so much easier and quicker than before (Lodge, 2012)....

Words: 889 - Pages: 4

Premium Essay

Comp Ii

...Social Media: Effects on Marketing and the Public ITT Abstract This will help describe the effects of social media on the public as well as in sales. The people that are referenced within are describing how there sales job market. Social Media: Effects on Marketing and the Public Social media has changed how we do our daily business. As far as humans have been introduced to products there has been a way to market them. The way producers market their products has only changed. All of the changes are not too bad; the use of social marketing has helped many salespeople sell their products. With social media salespeople have the ability to target more people. With the current use of social media at their fingertips, salespeople have embraced the use of it and made it work to their advantage. When Twitter celebrated five years, compared to its regular forms of marketing it had 150 million users in four years. (Raj Agnihorti, 2012) For such an achievement to happen so rapidly meant that social media was the way to go. Salespeople are an important to the company. Social media similar to Facebook, Twitter, and others like them help spread the word about products. Products cannot only be order from web sites one can also leave feedback on the product. Through social media purchasers may remain anonymous....

Words: 1579 - Pages: 7

Premium Essay

Social Media

...Though social media is relatively a new media, its popularity is increasing rapidly across the world. Social media is used to engage with consumers, promote the business products and build business brands. Social media is also used as online word-of-mouth marketing to create buzz marketing effect of trust and reliability on products and brand. In the process, the businesses are building customer...

Words: 6386 - Pages: 26

Premium Essay

Effects of Social Media in Cross Cultural Marketing

...Overall Conclusion ................................................................................................................21 Reference .................................................................................................................................23 Appendix ...................................................................................................................................25 Effects of Social Medua in Cross Culturl Marketing 1 Abstract 1. Title Effects of social media in cross cultural marketing In this paper, I will be focusing over the importance of cultural studies taking place within the organizations. The way the organization deal with the cross culture problems and the challenges faced while dealing with cross cultural employees. This study in its own self is way...

Words: 5798 - Pages: 24

Free Essay

Discussion Questions

...In other for me the writer, too answer this question I will first define what is social networking and social media, and then talk about how social networking has had a phenomenal effect on communication and information flow and finally how I as a professional would utilize social media to enhance my company’s line of business. Social networking is basically, a structure that allows people to both express their individuality and meet people with similar interest. This structure includes having profiles, friends, blog posts, widgets, and usually something unique to that particular social networking website ( Nations). Social media is online-based software and interfaces that allow individuals to interact and exchange information with one another. Social networking is one of the most used social media platforms which has led to social networking too have such a phenomenal effect on communication and information flow. Social media has devolved into necessity which allows the business to create bigger customer base, advertise their products and too specify their target market (demographic). As a professional, I would use social media because it gives businesses and opportunity to find new customer by creating an online presence. This online presence allows business to reach customers that they couldn’t have reached before thru formal advertising. And because most of the social media sites are free businesses can freely advertise their products.  ...

Words: 525 - Pages: 3

Premium Essay

Social Media

...October 30, 2014 Social Media-Cause and Effect Much controversy revolves around the idea of social media. Some claim that altogether, social media benefits society by helping connect people in an easy, hassle-free way. Others argue that social media is a distraction and a waste of time. Regardless of whether social media can be considered good or bad; it has and continues to have multiple effects on our society. Social media continues to revolutionize, shape, and change our society’s basic functions, including the interaction between society members, the promotion and advertisement of products, and the altering of individual privacy. Technology is always changing, so the cause and effect it has on our society is vast and diverse. Communication plays a vital role in society, and social media continually constitutes to change in the way we communicate. Facebook, Twitter, Instagram, Snapchat, etc., are all examples of social media that affects each of us, or whether we have an account or not. Society’s ways of communicating is growing rapidly, and Facebook has become one of the greatest examples to support this. Shilpa Shanbhag stated, “Facebook became the most popular social network in India in the week ending July 10, 2010 with a 24.69% share of all visits to social media sites. It has grown to a 32% share in October 2010, and the share has since increased to 34.66% in the week ending November 20, 2010.”...

Words: 1002 - Pages: 5

Premium Essay

Economic Effect of Social Media

...Executive Summary Social media, online social networking service, has been existed for a long time. In that time, people use social media as an effective way to expand our social circle. People who use these sites form a social network, which provides a very strong and powerful way to connect, share interests, and keep in touch with others across the miles. However, as “the valuation of Facebook raised in a significant way, settling at figures in excess of $80 billion just after the company’s developer conference in September, 2011” (O'Dell, 2011). This valuation of the social media is only ranked second to Google’s. Even an obtuse CEO can realize the important impact on the business industry that social media will bring. Such a high valuation is not only because Facebook provides more than 600 million users a platform to communicate with each other, both in their leisure time and at work. Therefore, it is obvious to observe the social media’s economic impact. The economic impacts of the social media are increased work opportunities, decreased business cost, positive push in consumers’ purchasing behavior, increased opportunities for small businesses, and increased employees’ productivity. However, one thing should be noted that there may some different economic impacts in different countries because each country has their own cultures, economies, and business structures....

Words: 2712 - Pages: 11

Premium Essay

Mr Joseph

...The Impact of Social Media in Marketing Management Journal of Business; ISSN 2233-369X; Volume 3, Issue 1, 2014 The Impact of Social Media in Marketing Management Giorgi BAGATURIA* Margaret JOHNSON** Abstract The advent of the social media has brought about tremendous changes and advancement in the marketing process and has made it much better on the one hand and much worse on the other. However, nowadays, it has been widely accepted that social media is the next big trend in the marketing world and several studies have shown that these media or channels are often more effective than the traditional ones. Since the turn of the century, social media has steadily emerged ahead of the mass media as the most used media. Both print circulation and TV viewership have been falling consistently over the years; for instance, TV viewership has gone down almost 50% since 2002. In contrast, social media has reported massive gains since the early days of MySpace, with social media usage among U.S. adults increasing by 800% over the past eight years (Edwards, 2013). For marketers, this is a huge advantage because the rapid transition from mass to social media presents the opportunity to create impactful, relevant marketing messages. This data-powered personalized marketing approach is not only much more effective, but also more costefficient and scalable. Recently, social media has become a term synonymous with business marketing....

Words: 6731 - Pages: 27

Free Essay

Effects of Social Media on Hospitality/Tourism

...He states that social media has been an option for hospitality because it provides opportunities for managing and presenting business content and helps in identifying core values that draw clients and customers to the business. Most companies in this industry have developed strategies to integrate social media efforts with the overall marketing effort. According to Mahmood, the customers who are engaged...

Words: 2669 - Pages: 11

Premium Essay

The Effects of Social Media Marketing on Online Consumer Behaviour

...BBS-5-RME Research Methods for Business and Management Referred/Deferred Coursework Critique: The Effects of Social Media Marketing on Online Consumer Behaviour Table of Contents Summary 2 Main Critique 2 Research Approaches 5 Conclusion 7 Reference 8 Summary The paper is providing a critical review of “The Effects of Social Media Marketing on Online Consumer Behaviour” by Simona Vinerean, Iuliana Cetina, Luigi Dumitrescu,and Mihai Tichindelean. The article is reviewing the communication of brand with consumers (Vinerean, Cetina, Dumitrescu, & Tichindelean, 2013). Internet and social media is proved to be the most effective platform for consumers and businesses to socialize or communicate. Organizations can access a wide array of consumers throughout the globe, as social media is a platform to publicize the personal evaluation of consumers. The article is focusing on 236 social media users to examine different measures reflecting positive influence of networking websites on the consumers’ perception about advertising through this platform (Vinerean, Cetina, Dumitrescu, & Tichindelean, 2013). It is found in the paper that the social media marketing provides the evidence of virtual presence of online consumers for organization reflecting the positive outlook on sales and reputation....

Words: 1880 - Pages: 8

Free Essay

Effects of Social Media on Hospitality/Tourism

...He states that social media has been an option for hospitality because it provides opportunities for managing and presenting business content and helps in identifying core values that draw clients and customers to the business. Most companies in this industry have developed strategies to integrate social media efforts with the overall marketing effort. According to Mahmood, the customers who are engaged...

Words: 2669 - Pages: 11