Social Media and Marketing - Literature review Example

Social Media and Marketing Number Department Introduction Perhaps one of the best and most efficient avenues of business marketing is through social media. Social media are internet services that enables one interact with others, share and create content via online communities. Social media offers great marketing opportunities for businesses of all sizes. Social media marketing can be defined in a plethora of ways. But perhaps the most common definition is that it is the process of gaining website attention/ traffic via social media sites. Social media marketing lays emphasis on coming up with content/ material that will elicit attention and consequently move the reader (customer) to share it across the various social networks (Berkowitz, 1992, 24). Electronic word of mouth (eWoM) is a common phrase used in social media marketing to denote any statement consumers share through social media sites (internet) regarding a product, service, event, brand or company. Earned media marketing, as opposed to paid media marketing, is when a message is conveyed from one user to another and resonates or it seems to come from a trusted third party source that is not the brand or the selling company (Berkowitz, 1992, 55). Social Media Platforms One of the most important social media platforms is social networking websites which enable personal interactions and relationship building. In this case, consumers and marketers interact and communicate with one another directly resulting in a more personal feeling to the user (intended consumer) than the conventional techniques of marketing, that is, outbound marketing and advertising. Te social networking websites offer opportunities for users/ consumers to re-tweet or repost (share) information made by others about the product being marketed (promoted). Repeating the information essentially means that all of the consumers’ connections are able to see the message and so in effect the message reaches a lot more people (Zimmerman & Ng, 2013, 43). The sites act as word of mouth, and since information put out into the markets is being repeated, more attention is brought to the product/ brand/ company hence. In addition, personal interactions between marketer and user via social networking websites evoke a sense of loyalty into the user/ potential customers. Moreover, by selecting whom to follow on the sites, products can be made to reach specific target audiences. Marketers in social networking websites can additionally detect buying signals via the application of new semantic analysis technologies (such as questions posted online or even content shared by people). This comprehension of buying signals can be irreplaceable when sales persons desire to target relevant prospects and run micro-targeted campaigns (Berkowitz, 1992, 78). With most mobile phones acquiring social networking capabilities and users receiving notifications on any occurrences on social networking sites via their mobile phones, the mobile phone usage has therefore become an important social media platform for marketing. Brands and marketers can hence easily update and remind users (consumers) on capabilities, uses, importance, and so on, of products through this unbroken connection to social networking sites provided by cell phones. In addition, a number of companies are now putting QR codes along with their products for consumers to access the company website (online services) through their phones (Zimmerman & Ng, 2013, 44). Another social media platform is engagement. In this context, engagement simply means that consumers and marketers are participants instead of being merely viewers. During engagement, everyone is free to express and share their opinion concerning a product/ brand/ company with each participating consumer becoming part of the marketing process as other customers and potential consumers sample their comments or reviews. Engagement is therefore fundamental to successful social media marketing (Tuten, 2008, 8). It is important to note that all social media marketing platforms and channels work together and not against each other. Therefore, the more channels a business pursue the higher the returns in terms of marketing. The social media sites help build brand awareness, provide bit-size bits of industry information and create communities amongst consumers. E-mail, as indicated by surveys, is particularly important in that it directly targets a single person and therefore has a stronger sales appeal. Moreover, a business can use analytics to ascertain what a person clicks and opens – statistics that can be used by companies to segment lists and direct different consumers to personalized destinations. Social media and e-mail marketing can get along, and with fascinating results too (Tuten, 2008, 40). Reasons for and Tactics of Social Media Marketing One of the greatest aims of social media marketing remains to serve as a communications tool that makes companies accessible to those interested in their products and make them visible to those who are oblivious of these products. These companies employ the social media to learn from and target consumers and also to create attention (buzz) for their products. In essence, social media marketing remains the only marketing technique that directs consumers at each and every level of the consumer decision process (Zarrella, 2010, 67). Social media marketing is a great way (whether for a starting business or an already established one) to drive repeat business and attract new customers. 73% of small businesses and organizations have begun using social media marketing according to the Constant Contacts 2011 Small Business Attitudes and Outlook Survey. According to the same survey, 62% of businesses not using social media marketing at the time expected to start using it in the consequent year (2012). In other research studies, it has been shown that 755 of people are likely to share content they like online with friends, family and co-workers – this makes social media a fertile marketing ground. In addition, the research demonstrates that close to 49% of these folks does this sharing on weekly basis – quite amazing (Tuten & Solomon, 2013, 200). In social media marketing, it is important that the company/ business sets goals from the onset and understand what they want to achieve from their social media marketing efforts. There are several ways/ techniques that a company can employ in order to have a big impact on social media. For one, a business can show customers and prospects who they are and what they can do for them via social media which is great for product awareness. Also, a company can drive sales by giving customers offers that are so lucrative they’ll in turn have to share with close ones with chances of such promotions going viral very high on social media (Zarrella, 2010, 86). Also, social media can provide great customers service (and retention) acting as a feedback loop. Through social media, a company can listen to and respond to what the customers are saying about the products/ services and the company itself. Equally, social media marketing is a way to keep customers coming back by building/ fostering deeper relationships that enable customers get to know, like and trust the marketer better. Customers can post reviews of products and services, rate customer service and ask questions/ voice concerns directly to companies through the social media platforms available (Tuten & Solomon, 2013, 207). 7 of the top 10 factors associated with a strong Google organic search are social media dependent, that is, if brands are less/ non-active on social media, they tend to show up less on Google searches. While platforms such as Facebook, Google+ and Twitter have enormous amounts of monthly users, the visual media sharing based mobile platforms still manage higher interaction rates and register by far the fastest growth, effectively altering the ways in which consumers engage with brand content (Tuten, 2008, 93). A social media marketing strategy, unlike tradition media marketing that often cost much, does not require astronomical budgeting. Most social networking sites can be used at no costs at all and in effect, companies can use platforms like Facebook, YouTube, Twitter and Instagram to reach much wider audiences than if using traditional avenues of marketing such as print, TV or radio and at much lower costs too! A considerable amount of company-consumer interactions are now being conducted via the social media and with much higher visibility (Blythe, 2006, 345). To further enhance social media marketing, companies can opt to hire personnel to specifically handle/ monitor social media interactions. These are online community managers, as commonly termed. Satisfactory handling of interactions can mean increase of customer trust and satisfaction (retention). To achieve these aims and to shape the public perception of a company, three important steps are often taken by companies to look into consumer concerns. The first step involves identifying the extent of social chatter which is then followed by engaging the influencers to assist. Finally, step 3 involves developing a proportional (adequate) response (Blythe, 2006, 365). Twitter has a 0.03% interaction rate with an average of 210 monthly users. It allows companies to advertise their products in short messages (which can also link the product’s website, Facebook profile, photos, videos, and so on) limited to 140 characters which are exhibited in the user’s/ follower’s homepage. Instagram on the other hand has an interaction rate of 1.465 with an average of 130 million monthly users. In May 2014 alone, the engagement rate of Instagram was 25 times that of Twitter and 15 times higher than that of Facebook. Research studies indicate that up to 93%or renowned brands/ companies have an active presence in Instagram and have incorporated it in their marketing strategy. Instagram enables businesses reach their markets through captivating imagery in a rich, visual environment. It provides a platform for public and direct communication between users and companies and is therefore effective in connecting companies with their current and potential customers (Blythe, 2006, 400). Instagram accessibility is relatively simple as it can be accessed through the internet as well. Moreover, the fact that Instagram is supported by Android and Apple systems means that smart phone users can equally gain access. It is therefore a suitable technique for brands to promote their products especially to the younger target groups. Through Instagram, companies can encourage users to create attention for a particular product hence furthering brand exposure. It is also useful in facilitating social shopping and encouraging users to collect and share pictures of their favorite/ preferred brands. Companies such as Starbuck, Marc Jacobs, MTV, Red Bull and Nike are but a few examples of those that have embraced the mobile photo application and reaped its numerous benefits hence. The companies, through Instagram, can now present a more personal picture of their brands and therefore convey a better and true picture of it. The idea of Instagram pictures lies on-the-go (a sense that the event is taking place in real time) which goes a long way in adding another layer to the personal and accurate picture of the company. Using the user-generated contents, Instagram can also offer the chance for businesses to reflect a true picture of the brand via the consumers’ perspectives. Apart from these filters and hash tag options, Instagram’s recent ability to send private messages between users and the 15-second videos have created new avenues for businesses to connect with consumers in a new level, further enhancing effective Instagram marketing (Evans, 2008, 500, 525). Facebook pages offer more detail than twitter accounts with opportunities to provide video, photos and longer descriptions (testimonials) even as other users can give opinion on the pages for others to see. Facebook can also provide a link to the company’s twitter page and even send out event reminders. However, surveys indicate that changes in Facebook algorithms have lowered the organic reach for non-paying business pages with at least half a million ‘likes’ from 2012’s 16%to 2014’s 2%. Apart from its ability to provide pages and other Facebook features, Google+ is able to integrate with the Google search engine and other Google products such as Google Maps and Google Adwords. Google+ can additionally, with the aid on the new Google Personalized Search and other location based search services, allow for navigation services, targeted advertising and location-based marketing and advertisement (Kotler, 1980, 312). LinkedIn, another social media marketing platform, is a professional business networking site that enables businesses to create their professional profiles, network and connect with other businesses. Businesses are able to promote their other social networking platforms like Twitter and blogs into the LinkedIn page by using widgets. Like Facebook pages, LinkedIn offers ‘company pages’ where the business can promote its brands/ services and equally interact with its consumers. In addition, members are able to generate sales leads and create business partnerships via LinkedIn. LinkedIn is also preferred by companies for employee recruitment unlike other employment portals that are prone to spam mails. Moreover, businesses prefer the amount of data that can be gleaned from LinkedIn profile against that of a limited mail (Kotler, 1980, 413). Yelp is a bit similar top Yellow Pages in that businesses are searched by location (it is a comprehensive online index of business profiles). Operational only in seven countries, business account holders are able to create, share and edit business profiles. Such profiles include things such as business location, pictures, contact data, service information, written/ posted reviews on the business, ratings of the business (on a five-point scale), and so on. To gauge thought and opinion, there are messaging and talk features for users/ consumers. Users can also check into business premises through their smart-phones via Foursquare which is a location based social networking site. In Foursquare, companies can create pages and create a new/ claim an existing location. Incentives such as special privileges for the mayor of that location or free beverages/ food for those checking into the business are a few marketing strategies available in Foursquare for customer retention and for increasing footfall (customer base) (Sandhusen, 2000, 64). In You Tube, promotions are conducted in a manner that endears the target audience with the form of language and ideas employed in the advertisement geared towards reflecting on consumer (audience) tastes and preferences. Another advantage of You Tube in advertising is that contents of the requested video are normally in tandem with ads there-in (certain ads are presented with certain videos of relevant context). Apart from also enabling its users to earn cash from the You Tube partner program, You Tube can also offer promotional opportunities like video sponsoring. Also, due to the ability to share links, social media marketers often use Delicious, Digg and Reddit (which are social bookmarking websites) to advertise their websites due to their abilities to share links (Sandhusen, 2000, 100). Blogs are equally important social media marketing platforms especially for businesses that appreciate the need for information, originality and accessibility. These businesses use blogs to make their products popular and original and therefore reach out to consumers who are privy to social media. Blogs can include testimonials and can link to and from other social network and blog pages and therefore allows for longer product/ service descriptions. These blogs (are updated with time, by the way, if need arises) are essential in retaining customers and acquiring new ones who can then be directed to network social pages (Safko, 2013, 49). Blogs, though online communities can enable a business to reach consumers from another business and additionally enable companies gauge their ratings in the corporate world while also enabling employees place evaluations on their companies via websites like Glassdoor. In order to maintain a lead in business-customer relations, businesses must be aware of assets such as information, involvement, community and control, which consumers maintain. Tumblr, another social media marketing platform, requires businesses to create Tumblr blogs with contents that can be featured through the site rather than employing simple banner ads. Tumblr, which first launched its ad products on May 29th 2012, went on and in a year created four native ad formats on web and mobile with over 100 businesses promoting themselves through the platform (with 500 cumulative sponsored posts). Tumblr is attractive to a number of companies because of how much people use it. as of June 2014, there were 190.1 million blogs on Tumblr and an average of 300 million unique monthly visitors (which comprises 15% of all internet users!). Tumblr is also favorable to businesses globally as it is available in over 13 different languages (Safko, 2013, 25). Laws and Strategies of Successful Social Media Marketing There are a number of laws/ ideas that have been advanced for successful social media marketing campaigns. This section of the essay delves into a few of them which can help elevate a business’ audience and customer base in a dramatic fashion and create a huge brand buzz/ attention. The first law is the law of listening where success of the undertaking will greatly rely on more listening and less talking from the business. A business ought to pay close attention to online comments and conversations from consumers and learn what they need in order to add value to the products/ services. Second law is the law of quality. In social media marketing, quality is always better than quantity. For example, it is far much valuable to have 500 online connections that read, share and discuss content with their own audiences than 5,000 connections who disappear after first connection (Barefoot & Szabo, 2010, 377). In the law of compounding, if a business builds an online audience of quality followers, they will share the company brand with others on other social platforms thereby opening new entry points (which could grow to hundreds or thousands) for search engines like Google to find it in key word searches. In the law of value, if a business focuses its time on directly promoting its services and products, there is the inevitability that people will stop listening. Therefore, the business must add value to the interactions. To do this, the business has to shift from its focus on creating converts to a more robust focus on creating attractive content and developing bonds with consumers. It is these bonds that will cause theses consumers to market one’s business (Barefoot & Szabo, 2010, 411). The law of accessibility discourages publishing of content then disappearing. It rather requires that the publisher becomes available to the audience for discussions and queries and also that the marketer continues to publish on regular basis. Followers will not hesitate to replace an unreachable, unavailable and an inconsistent publisher. Another critical law of social media marketing is the law of forces which holds that in social media marketing, it is far much valuable to specialize than to be a jack-of-all-trades. For instance, a highly focused social media and content promotion strategy aimed at building a strong brand has a greater opportunity of being successful in the markets than a general, broad strategy that tries to be all things to everyone. In social media marketing too, the law of patience comes in handy. Success in social media marketing will not come about instantly – a fact that a marketer must keep in mind befoe venturing into social media marketing. To achieve solid results, a company must commit to the long haul and practice patience (Barefoot & Szabo, 2010, 418). The law of influence is very useful in social media marketing. This means for example that a marketer has to take time out and find the online influencers in their markets who have quality audiences and are likely to be interested in the marketer’s products, services and business. It is these influencers that will go on and share the content of the business with their own followers (if well connected with and if the aspiring marketer comes out as authoritative and an interesting source of vital data) and therefore establish the business in front of a huge new audience (Kabani, 2010, 801). In the law of reciprocity, a marketer must never expect others to share their content and talk to others about its services and products if they do not do the same for them. This basically means that in order for a marketer to enjoy success in social media marketing, they themselves must spend time on sharing and talking about content published by others. The law of acknowledgement is equally very essential. Basically, as a marketer, you would not ignore a customer (or a potential) who approaches (contacts) you in person, so equally do not ignore them online. The underlying ethos for success of social media marketing is the building of relationships and so a marketer must always acknowledge each and every person who reaches out to them (online or otherwise) (Safko, 2013, 36). If a follower, for instance, posts on the company’s Facebook page of tweets at a marketer’s handle and never obtains any feedback, trust is lost. This ignored client can then turn to the marketer’s competitors to obtain the information they need. This can lead to loss of existing and potential customers. It is humane to take time to reply to inquiries as it builds authority and trust. In addition, such thoughtful and timely responses leave the customer flattered and intrigued by the company – which is a great thing! A marketer ought to deem social media as a chance of showing how well they treat their customers. This also, difficult to accept but importantly means that negative feedback must equally be addressed/ replied and with utmost respect and patience too (Kabani, 2010, 904). In social media marketing it is important o have a game plan and stick to it (or occasionally adjust if necessary). Otherwise, if a marketer lacks an execution strategy, the promotion is likely to fail in apocalyptic magnitude. For instance, a company ought to decide on how many Facebook posts to publish daily. They can investigate how often their competitors are posting and then research on the optimum amount of content to publish periodically on each channel. The goal is to be active on social media yet at the same time not appear overly active and desperate. Before posting content, a marketer must have the content thoroughly vetted and approved or amended if necessary by workers within the marketing department (Powell & Groves 2011, 99). It is also necessary for the marketer to treat each channel used by the company for social media marketing as separate entities, for example by adjusting content or strategy depending on the audiences for that channel. For instance, it is a fact that while Instagram is likely to have participants who prefer engaging visual content, LinkedIn, on the other hand, has participants who are more business oriented and who are above all, desirous of in-depth, educational content. So in essence a marketer cannot simply post haphazardly but instead must pay attention to the follower demographic on each platform of social media marketing then publish content that appeals to the different groups (even if information contained there-in is the same) (Powell & Groves 2011, 100). In social media marketing, it is okay to embrace mishaps. This means, for instance, that if there is a product error or multiple overcharges to consumer credit cards, a marketer would be wise to respond proactively in an apologetic and actionable fashion and send out content form media platforms acknowledging and apologizing for the same error while also stating clearly how the problem is being tackled so that customers do not start to feel short changed and resultantly jump sheep. However, certain small mistakes such as missing a comma in a post can be overlooked instead of announcing the small grammar error and deleting the post. If it has already been posted, participants will notice if a marketer is constantly re-posting which can be damaging, or at least embarrassing (Kabani, 2010, 1101). It is also necessary that a company sets aside time to monthly review metrics that are crucial to the business such as number of posts, follower growth, clicks to the site/ product, page views, post likes or shares, impressions, and so on. This is not done stereotypically across the platforms but rather each channel is analyzed individually and statistics obtained compared to those of competitors in the market to gauge how well the business is doing, from its marketing campaigns, and what improvements can still be made. This is done by brainstorming and strategy meetings within the company to plan ahead or even re-evaluate current strategy. It is important at this stage to bring in other departments into the deliberations as their contributions can be pivoting game changers (Powell & Groves 2011, 104). (Predicted) Trends in Social Media Marketing Certainly, with the new social media marketing platforms cropping up from virtually every corner, it is cumbersome for businesses, companies and marketers to know exactly which platforms to commit their time and resources in. social media marketing is as dynamic as it can get – constantly metamorphosing from time to time. It is therefore prudent, even for successful companies (that is, in social media marketing) to always be updated and abreast with the trends in the field otherwise even the success they have amassed in social media marketing over time can go down to the drains into the depths faded glory (Pride, 2008, 34). In the foreseeable future, experts and surveys strongly point that investment in social media as a tool for product marketing will become a necessity instead of a luxury (a replaceable venture). Social media marketing is slowly becoming a ‘must have’ instead of what it has been over the periods of time, a ‘should have’ (just as IT, for example, in its inception into business a few decades ago. Now IT is an irreplaceable component of any workplace and one that a company would overlook at their own peril) (Pride, 2008, 60). Companies now appreciate more the effect of social media in terms of lead generation, referral traffic and revenue and are fast coming to terms with the need to integrate their social media efforts with their content strategy. In the coming days there will be a mass shift from assigning social media tasks to existing employees to companies actually employing full-time social media strategists/ managers to fully exploit the numerous benefits that come with social media advertisements (company branding, word-of-mouth advertising, improved audience reach and influence, improved social signals which play crucial role in the search ranking algorithm, improved brand awareness and increased consumer loyalty and trust) (Powell & Groves 2011, 135). Also, while Facebook continues to lead with the number of active monthly users, Google+ has now become the second highest in terms of number of monthly users and is quickly gaining ground on Facebook. Google+ can now not be considered just another social network especially as it continues to assert itself as an integral part of Google’s grand plan in terms of SEO, social signals and offering a more personalized search experience. It is projected to soon be a major part of Google’s search ranking algorithm by the end of 2014. In essence, it will be a ‘one size fits all’ social media marketing platform therefore with its growth also set to soar both on the business front and for personal use. Another notable trend is the slow and steady shift from text-based content to sharing via image and video. Image-focused networks are predicted to offer more successful social media marketing in the future than non-image centered platforms. The social network Pinterest, for instance, is foretold to metamorphose from a purely women’s network into a formidable part of online marketing strategies. The same is predicted for other image-centered social media platforms such as Tumblr, Mobil, Slideshare and Path. In addition, with its recent re-branding (make-over) efforts in the previous year, MySpace is set to grow in terms of social media marketing. MySpace now offers, much to the delight of businesses, an iPhone app which enables users to receive private messages, network and listen to various radio stations. It will therefore be a social media platform worthy of serious recognition more especially for music artists, bands and lovers. LinkedIn too, even at its current comfortable position (238 million users), is still introducing important changes that will see it become a major player for business growth. With its new Influencers Program, LinkedIn has positioned itself as one of the biggest sources of content creation and curation for professionals. Its advantage will be especially huge for B2B business marketers. However, Foursquare, as a social media marketing platform is predicted for a sharp and disturbing decline due to its poor traffic numbers and difficulties raising capital. With other platforms such as Facebook, Twitter and Instagram providing location-based features, Foursquare will soon experience mass exodus from its remaining users (Pride, 2008, 65). With the rise of micro-video apps like Instagram’s video sharing feature and Twitter’s Vine, there is predicted to be a steady migration towards real-time video sharing and more precisely, micro-videos, that users can easily create, upload and share from their smart-phones. Otherwise, generally speaking, Facebook and Twitter continue to show no signs of decline. It will therefore be quite fascinating to see how they adapt and cope with the steady rise of Google+ and other emerging image and video based networks. Facebook is predicted to continue its efforts on mobile phones while providing marketers the chance to target their promotions better. It is curious to see in the future how Twitter’s (the current preferred choice for B2B marketers) market share will be affected by the emergence of Google+ (Powell & Groves 2011, 135). Also, Facebook is poised to take social media marketing and selling to a whole new level. Companies live on customer purchases and not Facebook ‘likes’ and therefore Facebook (with this knowledge) is introducing a ‘Buy’ button (e-commerce) that is destined to become one of the biggest, if not the biggest, shopping platforms across the globe. The Facebook we are used to currently will be completely different in the near future with Facebook selling the ‘Buy’ buttons to companies and businesses. The days of businesses amassing millions of ‘likes’ from potential consumers (buyers) on Facebook with no sales in the end will soon be stuff of memory (Pride, 2008, 90). Conclusion Social media marketing is therefore able to target particular groups, has a broad reach (is global), free or low-cost, personal, fast and easy to use. Many businesses have consequently embarked on using online technology to support their marketing efforts by developing applications for mobile devices, giving customers the option of paying online and also modifying websites to ensure proper functioning on mobile devices. However, social media marketing has its fair share of risks. These include the possibility of wasted time and capital for little/ no tangible return. Also, there can be rapid or damaging spread of wrong information about a business such as incorrect information accidentally posted by the business (or competitors) and occasional negative reviews from users which can cripple a business. Furthermore, there exist legal problems in social media marketing in cases where a business does not follow privacy legislation and other laws concerning spam, copyright and other online issues (Barefoot & Szabo, 2010, 469). References Barefoot, D., & Szabo, J., 2010, Friends with benefits a social media marketing handbook, San Francisco, Calif.: No Starch Press, 377, 411, 418, 469 Berkowitz, E. N, 1992, Marketing (3rd ed.), Homewood, IL: Irwin, 24, 55, 78 Blythe, J, 2006, Marketing, London: SAGE Publications, 345, 365, 400 Evans, D, 2008, Social media marketing an hour a day, Indianapolis, Ind.: Wiley, 425, 500, 525 Evans, J. R., & Berman, B, 1982, Marketing, New York: Macmillan, 600, 605, 670 Kabani, S. 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