Social between company and customer. Social media create opportunities

Social media is a catch-all term used to
describe the tools and technologies that facilitate social interaction over the
internet.(DMI)

Social media markting is the process of
gaining traffic, attention and interaction with customers through social
media.(DMI)

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1.      
Social Media

Kaplan and Haenlein (2010)
describe social media as “a group of Internet based applications that build on
the ideological and technological foundations of Web 2.0, and that allow the
creation and exchange of user-generated content.”Web 2.0 technologies on the
Social Web permit two-way conversations with consumers enabling brands to
listen to consumers and respond (Fournier &Avery, 2011).

2.      
Andzulis, Panagopulos and Rapp
(2012), define Social media as ?the technological component of broadcasting,
transacting and relationship building functions of a business which leverages
the network of customers and prospects to stimulate value co-creation. Hanna,
Rohm and Crittenden (2011) define social media as the creation, feeding and
interchange of information through online social interactions and platforms. In
a similar fashion Greenberg (2010) postulates that all customers are now
?social customers  and every interaction
is part of a new collaboration between company and customer. Social media
create opportunities for companies to tell their own stories (Ploof, 2009).
Kaplan and Haenlein (2010) on their part contend that social Media is a group
of Internet-based applications that build on the ideological and technological
grounds of web 2.0 and that allow the creation and exchange of user generated
content. It consists of different Internet applications such as blogs, social
networking sites, content communities, collaborative projects, virtual game
worlds and social worlds (Kaplan &Haenlein, 2011).

·        
According to Nielsen, internet
users continue to spend more time on social media sites than any other type of
sites.is due to the increase in smartphones

·        
Social media technologies take
many different forms including blogs, business networks, enterprise social
networks, forums, microblogs, photo sharing, products/services review, social
bookmarking, social gaming, social networks, video sharing, and virtual worlds.The
development of social media started off with simple platforms such as sixdegrees.com.Unlike
instant messaging clients such as ICQ and AOL’s AIM, or chat clients like IRC,
iChat or Chat Television, sixdegrees.com was the first online business that was
created for real people, using their real names. However, the first social networks
were short-lived because their users lost interest. The Social Network
Revolution has led to the rise of the networking sites

·        
Research shows that the
audience spends 22 percent of their time on social networking sites, thus
proving how popular social media platforms have become. This increase is
because of the smart phones that are now in the daily lives of most humans.

Business
potential

·        
Although social media accessed
via desktop computers offer a variety of opportunities for companies in a wide
range of business sectors, mobile social media, which users are accessing when
they are “on the go” via tablet computer or smartphone can take
advantage of the location- and time-sensitive awareness of users. Mobile social
media tools can be used for marketing research, communication, sales
promotions/discounts, and relationship development/loyalty programs.

·        
Marketing research: Mobile
social media applications offer data about offline consumer movements at a
level of detail heretofore limited to online companies. Any firm can know the
exact time at which a customer entered one of its outlets, as well as know the
social media comments made during the visit.

·        
Communication: Mobile social
media communication takes two forms: company-to-consumer (in which a company may
establish a connection to a consumer based on its location and provide reviews
about locations nearby) and user-generated content. For example, McDonald’s
offered $5 and $10 gift-cards to 100 users randomly selected among those
checking in at one of its restaurants. This promotion increased check-ins by
33% (from 2,146 to 2,865), resulted in over 50 articles and blog posts, and
prompted several hundred thousand news feeds and Twitter messages.

·        
Sales promotions and discounts:
Although customers have had to use printed coupons in the past, mobile social
media allows companies to tailor promotions to specific users at specific
times. For example, when launching its California-Cancun service, Virgin
America offered users who checked in through Loopt at one of three designated
Border trucks in San Francisco and Los Angeles between 11 a.m. and 3 p.m. on
August 31, 2010, two tacos for $1 and two flights to Mexico for the price of
one. This special promotion was only available to people who were at a certain
location and at a certain time.

·        
Relationship development and
loyalty programs: In order to increase long-term relationships with customers,
companies can develop loyalty programs that allow customers who check-in via
social media regularly at a location to earn discounts or perks. For example,
American Eagle Outfitters remunerates such customers with a tiered 10%, 15%, or
20% discount on their total purchase.

·        
e-Commerce: Social media sites
are increasingly implementing marketing-friendly strategies, creating platforms
that are mutually beneficial for users, businesses, and the networks themselves
in the popularity and accessibility of e-commerce, or online purchases. The
user who posts her or his comments about a company’s product or service
benefits because they are able to share their views with their online friends
and acquaintances. The company benefits because it obtains insight (positive or
negative) about how their product or service is viewed by consumers. Mobile
social media applications such as Amazon.com and Pinterest have started to
influence an upward trend in the popularity and accessibility of e-commerce, or
online purchases.

·        
E-commerce businesses may refer
to social media as consumer-generated media (CGM). A common thread running
through all definitions of social media is a blending of technology and social
interaction for the co-creation of value for the business or organization that
is using it. People obtain valuable information, education, news, and other
data from electronic and print media. Social media are distinct from industrial
or traditional media such as newspapers, magazines, television, and film as
they are comparatively inexpensive and accessible (at least once a person has
already acquired Internet access and a computer). They enable anyone (even
private individuals) to publish or access information. Industrial media
generally require significant resources to publish information as in most cases
the articles go through many revisions before being published. This process
adds to the cost and the resulting market price. Originally social media was
only used by individuals but now it is used by businesses, charities and also
in government and politics.

·        
Business performance

·        
Social media have a strong
influence on business activities and business performance.citation needed
There are four channels by which social media resources can transform into
business performance capabilities: social capital,  social marketing, social corporate
networking, influence on consumer decisions

 

·        
There are four tools or
approaches that engage experts, customers, suppliers, and employees in the
development of products and services using social media. Companies and other
organizations can use these tools and approaches to improve their business
capacity and performance. namely; CRM, training , innovation , knowledge
management

 

·        
Monitoring, tracking and
analysis

·        
Companies are increasingly
using social media monitoring tools to monitor, track, and analyze online
conversations on the Web about their brand or products or about related topics
of interest. This can be useful in public relations management and advertising
campaign tracking, allowing the companies to measure return on investment for
their social media ad spending, competitor-auditing, and for public engagement.

·        
Social media tracking also
enables companies to respond quickly to online posts that criticize their
product or service. By responding quickly to critical online posts, and helping
the user to resolve the concerns, this helps the company to lessen the negative
effects that online complaints can have about company product or service sales.
This rapid response helps to show that the company cares about its customers.

·        
 

·        
The “honeycomb
framework” defines how social media services focus on some or all of seven
functional building blocks. These building blocks help explain the engagement
needs of the social media audience. For instance, LinkedIn users are thought to
care mostly about identity, reputation, and relationships, whereas YouTube’s
primary features are sharing, conversations, groups, and reputation. Many
companies build their own social “containers” that attempt to link
the seven functional building blocks around their brands. These are private
communities that engage people around a more narrow theme, as in around a
particular brand, vocation or hobby, rather than social media containers such
as Google+, Facebook, and Twitter.  In a(
2011,241) article Jan H. Kietzmann, Kristopher Hermkens, Ian P. McCarthy and
Bruno S. Silvestre describe the honeycomb relationship as “presenting a
framework that defines social media by using seven functional building blocks:
identity, conversations, sharing, presence, relationships, reputation, and
groups”.

 

·        
The elements of the honeycomb
framework include:

 

·        
Identity: This block represents
the extent to which users reveal their identities in a social media setting.
This can include disclosing information such as name, age, gender, profession,
location, and also information that portrays users in certain ways. Basically,
the amount of information users are willing to share in a social environment.

·        
Conversations: This block
represents the extent to which users communicate with other users in a social
media setting. Many social media sites are designed primarily to facilitate
conversations among individuals and groups. These conversations happen for all
sorts of reasons. People tweet, blog, make online comments and send messages to
other users to meet new like-minded people, to find a romantic partner, to
build their self-esteem, or to be on the cutting edge of new ideas or trending
topics. Yet others see social media as a way of making their message heard and
positively impacting humanitarian causes, environmental problems, economic issues,
or political debates.

·        
Sharing: This block represents
the extent to which users exchange, distribute, and receive content, ranging
from a short text post to a link or a digital photo. The term ‘social’ implies
that exchanges between people are crucial. In many cases, however, sociality is
about the objects that mediate these ties between people—the reasons why they
meet online and associate with each other.in short, the content that users
,receive, distribute, and trade amongst themselves

·        
Presence: This block represents
the extent to which users can know if other users are accessible. It includes
knowing where others are, in the virtual world or in the real world, and
whether they are available.Some social media sites have icons that indicate
when other users are online, such as Facebook.

·        
Relationships: This block
represents the extent to which users can be related or linked up to other
users. Two or more users have some form of association that leads them to
converse, share objects of sociality, send texts or messages, meet up, or
simply just list each other as a friend or fan.

·        
Reputation: This block
represents the extent to which users can identify the standing of others,
including themselves, in a social media setting. Reputation can have different
meanings on social media platforms. In most cases, reputation is a matter of
trust, but because information technologies are not yet good at determining
such highly qualitative criteria, social media sites rely on ‘mechanical
Turks’: tools that automatically aggregate user-generated information to
determine trustworthiness.Reputation management is another aspect and use of
social media.

·        
Groups: This block represents
the extent to which users can form communities and sub-communities of people
with similar backgrounds, demographics or interests. The more ‘social’ a
network becomes, the wider the group of friends, followers, and contacts can be
developed.4 Some Facebook users develop a list of friends that includes
people from all over the world

·        
This is a list of the leading
social networks based on number of active user accounts as of August 2017.

·        
Facebook: 2,047,000,000 users

·        
YouTube: 1,500,000,000 users

·        
Facebook Messenger:
1,200,000,000 users

·        
Instagram: 700,000,000 users

·        
Twitter: 328,000,000 users

·        
Snapchat: 255,000,000 users

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