Advantages of Social Media Marketing in Business
Marketing strategies and advertisements in businesses have evolved immensely in past few decades where reaching consumers has becomes comparatively easier with the help of latest technology and internet. Social media is one of the platforms that have assisted businesses in expanding their operations with applications and tools present in social networking sites (Baruah, 2012). Social media marketing not only enhances B2C but also B2B transactions where organisations get connected with vendors and agencies for making sales and other business operations for the firms. In short, social media marketing creates a networking channel in business in a cost-effective manner while targeting desired customers. However, Haji (2013), argues that there are few negative aspects of social networking also which requires consideration or else the social media marketing strategies can provide adverse effects in business.
The key objective behind preparing this report is to examine the perception of social media marketing in business from the view point of organisations. Advantages and disadvantages related to social media marketing will be discussed in this report after reviewing credible and authoritative sources collected from online and printed versions. After making analysis of literature related to the field, this report will find out literature gap according to which further research can be made.
Grounded on project objectives, the scope behind preparing this report becomes clear which is making an investigation about advantages and disadvantages of social media marketing from business. Since scope institutes a broader perspective, focussing on one particular area will enhance clarity in presenting viewpoints about the subject and determining the core objective behind report preparation related to social media marketing from business point of view.
Social media marketing is one of the most cost-effective and enhanced tools used by organisations while making marketing and promotional strategies. Social networking sites like Facebook, Twitter, LinkedIn, Google+, etc. are used by mangers of organisations while making marketing and advertising strategies for reaching consumers in speedy way (Mandaliya, 2014). Since social media marketing helps businesses in maintaining relationships with customers in effective manner along with getting knowledge about current trends, it is implemented by contemporary organisations in their marketing and advertising operations (Appendix A). According to Baruah (2012), social media sites not only promotes brand in front of mass people, but also generates sales through direct communication and advertisements. Technological innovations and applications have supported social media marketing through which organisations develops web pages that act as self-introduction for their firm in front of the people. Big organisations do not mind spending considerable amount for developing their websites attractively to gain more customers through user friendly interface and generation of traffic through Search Engine Optimisation (SEO). Earlier, marketing through televisions, radio and newspapers were used by businesses for sharing firm related information with stakeholders. But nowadays, things have changed where stakeholders are informed about organisation’s in effective and speedy way through internet and social networking sites (Saha, 2015).
Brand Exposure and Awareness
According to Demers (2014), brand exposure and awareness is one of the most advantageous feature of social media marketing that also becomes chief reason behind its implementation in businesses. Brand exposure takes place when customers make reviews after using any product or service that can be through five senses or knowledge gained from social networking sites. For those companies whose brand already exists in social networking sites, expanding their business in globalised way becomes much easier as their brands get fostered in comparatively lesser time period (Chaffey, 2009). Brand augmentation through exchange of ideas and interactions among customers and sales representatives increases sales and helps organisations meet core objectives behind their formations. Presently, millions of people use social media sites for some or the other reason, but businesses gains advantages through making advertisements in social sites where consumers see those advertisements made even if they do not wish to.
SEO in social networking sites have made marketing strategies of organisations in more customer targeted way where companies gets access to locations and preferences of consumers through social networking sites (Maaki, 2016). Thus, targeted customers can be approached according to the environment they are in and what kind of products they usually search for. Retargeting policy is also used by many companies where they approach directly to the customers through emails and messages. Retargeted customers are the ones who searches for products but does not make any purchases. In social networking sites and web pages users unknowingly shares information about them that are used later by business companies for making a list regarding targeted and retargeted customers.
According to Bank (2015), popular social media sites like Facebook and Twitter engages more people in which techniques related to website traffic is utilised by companies that ultimately turns into product sales through advertisements and direct rapprochement’s. Another popular way used by companies to remain engaged with customers is by giving regular information about their products while responding to any critiques made by them. However, Akbar & James (n.d) argues that although increased competition has made many companies respond in prompt fashion, spread of unwanted criticism also damages company’s reputation. People uses social networking sites for getting knowledge regarding product information as well as commenting on products used by them. These feedbacks are further used by companies in developing their products according to user’s preference and therefore, opportunity of enhanced products can be utilised by both seller as well as consumers. Nevertheless, any bad remark or negative comment made by competitors in social media sites may lead to falsified assumptions for which companies need to appoint superior quality sales representatives and enhanced technology tools. Moreover, Nadraja & Yazdanifard suggests that getting negative feedback from customers side must also be clarified instantly through making apologies or product replacement guarantee that can enhance customer relationships even better.
Targeted Marketing through SEO
As discussed earlier, social media marketing is a cost-effective process which is the reason behind its implementation on large and smaller firms. Since budget factors of small firms do not allow them making superior marketing strategies, social media marketing evidences beneficial to them (Bank, 2015). According to Ciprian (2013), “Social media marketing has become an essential part of online marketing strategy among small businesses because of its cost-effectiveness, ability to reach targeted audiences quickly and generate more leads/sales”. For large firms, maintaining public relationship through social networking sites is probable where special teams are appointed to make interactions with customers while launching new products. Nonetheless, every consumer possesses diversified characteristics for which choosing correct words becomes very crucial. As social networking sites are simultaneously visible to many people, any negative comment can spoil company’s image and that too in fast manner (DeMers, 2014).
Maki (2016) argues that from B2B perspective, businesses gain immensely from social media marketing through generation of new clientele and selling products to agencies and third parties for making direct sales to consumers. Buying directly from vendors, by eliminating third parties, proves efficient process for industries where they can make purchases in shorter time period without involving mediators in B2B transactions (Ciprian, 2013). Enhanced technological tools like video conferencing and calls have also provided with great help, especially to those firms whose business is spread in globalised manner. Business managers time as well as travelling expenses are saved without hampering work quality as compared to the earlier times when people used to travel long distant places for making short presentations. Organisations uses social networking sites for job placements and spreading information regarding job vacancies. Whereas people who seek new jobs, gets informed and can even apply for job applications online without wasting much time and energy in searching for new jobs in various organisations. During the time of crisis, social media networking can even save companies brand’s image in front of public. By making apologies and direct interactions as well as explaining reasons behind crisis, companies gain sympathy and consolidation from stakeholders that can save their brand image through people support (Evans & McKee, 2010).
While recognising opportunities of social media marketing in contemporary organisations, it can be said that no action can be deemed completed without realising threats related to it (Hajli, 2013). Social networking issues occurs not only because of technological aspects but also due to mishandling of social networking accounts. Its worst effects have been seen in many organisations where companies lost their public reputation that even affected their overall sales (Saha, 2015). Therefore, it can be said that before implementing social media strategies, organisations must make a thorough research regarding its bad impacts for preventing themselves from getting victimised (Arca, 2012). In businesses, image and brand reputation is everything for which companies spend considerable time and amount for brand promotion. How long a brand takes to build a strong reputation does not matter if any bad remark is made in social networking sites and thus lots of time and energy is marred within no time (Jefferson & Traughber, 2012). Further, if any negative remark is posted in popular sites where millions of people are engaged worldwide, the company’s name can get spoiled in larger slant. Therefore, Bank (2015) claims that company’s must always make active approach while answering customer’s queries while handling sensitive matters with patience. Here, if the employees are found joyous and contented, they may post positive comments regarding their company, however, any discontented staff feeling bias or negativity in work environment can feed negative comments that may prove risky for the firms. Many employees even exploit social media powers by manipulating companies to fulfil their demands and conditions. Along with it, any confidential message shared accidently via social sites can be utilised by those competitors who always keep close watch over their rivalry companies (Chaffey, 2009).
Cost-Effective Marketing Approach
According to Saha (2015), many sales representatives of organisations utilise social networking sites to generate sales only and ends up making false promises. This turns into bad impact for the organisations in the long run as some or the other day consumers might turn up making negative comments and feedbacks in company website and social networking sites. One of the biggest con in social media marketing is security issues where big companies name is been exploited by false companies (Nadaraja & Yazdanifard, 2013). There are many forged companies who makes duplicate products or services in the names of reputed companies. Consumers, on the other hand, unknowingly purchases the same and remains dissatisfied while providing feedback in social sites. This in turn, hampers the original company’s reputation. SEO has enabled targeting customers through emails and messages, as discussed above in this report. Companies makes repeated mails and messages to consumers regarding launch of new products or promotions and discounts. This irritates consumers many times while many of the messages are deleted without even looking at it. Thus, entire marketing strategy through social sites becomes wasted (Brusseau, 2012).
Another major disadvantage recognised in social networking sites is arise of spam and malware companies who hacks customers card numbers and credentials, making them bankrupt in no time. Chaffey (2009) states that many consumers have stopped making online payments and transactions while opting more for cash on delivery options. This arises further issues for the companies while segregating genuine customers and fake ones. Copyright and trademark infringement risks are also an important area that needs to be discussed while recognising social media marketing disadvantages. Many false malware companies and even competitors hacks trademark and infringement copyrights from company websites while making unwanted changes in it (AT&T Intellectual Property, 2008). This creates issues while making dealings with customers and third parties where companies unknowingly signs at changed trademark and copyright agreements. Here, companies need to verify their website at regular intervals so that falling under such circumstances is avoided.
While making B2B transactions, getting cheated by third party vendors is probable if the dealings are made through virtual basis only. Since no physical examination regarding product or the third-party company is been made, chances of getting degraded products along with not getting products in desired time adds to further disadvantage (Popova, n.d.). The role of government in social networking sites is not seen to much extent and therefore the cheated parties remains helpless. Also, video conferencing or chatting via social networking can lead to outflow of valuable information that can be recorded or utilised by rivalry companies. Time intensive disadvantage of social media marketing has made many companies think about its implementation. The brand recognition through social media may require considerable time investment as it involves two-way process of interaction (Houghton & Joinson, 2010). Therefore, many traditional companies still utilise earlier methods like television and newspaper to reach customers.
B2B Transactions and Direct Sales to Consumers
The above report has identified major advantages and disadvantages of social media marketing from the point of businesses. Further research can be made on the topic from consumers point of view to get comprehensive knowledge regarding social media marketing. This report has discovered that most of the researchers and authors discusses social media marketing advantages and disadvantages. However, finding statistical information and level in which companies gain or lose through social media marketing can make the study more accurate and in numerical manner.
Conclusion
Internet and social networking sites have become an integrated part of society with the emergence of technology and innovations (Appendix C). Nowadays, with the help of internet and smart phone, people get access to companies’ websites along with making close comparisons of products and services before making purchases. On the other hand, companies benefit from it by making direct sales to the customers and that too in cost effective and speedy way. However, few drawbacks of social media marketing have also been observed like negative feedbacks from customers and competitors misleading the companies. Overall, the above report as identified various advantages associated with social media marketing and recommends contemporary organisations implementing social media marketing strategies only after examining both advantages and disadvantages related to it.
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