Social Networks and Marketing

Social Networks and Marketing Introduction Marketing is an integral part of every business since it helps companies to reach their customers. It encompasses all the activities and institutions that facilitate the creation, communication and exchange of offerings that are beneficial to the clients and owners of businesses (Gary, Harker and Kottler 5).Advertising We will write a custom research paper sample on Social Networks and Marketing specifically for you for only $16.05 $11/page Learn More The success of the marketing process depends on the approach or technique used to facilitate it. This means that the approach must be effective in reaching the customers and cost-effective to the company. It is against this backdrop that most firms are shifting from traditional marketing techniques to social network marketing (Ostrow). An analysis of current marketing trends indicates that the application of social networks in marketing is becoming more popular despite their limitations. Background Information on Marketing Meaning of Marketing Marketing is the â€Å"management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage† (Gary, Harker and Kottler 7). This means that marketers transform potential customers into actual customers by developing relationships with them. Strong relationships between the marketers and customers facilitate high sales. Thus the shareholders of the business will maximize their returns as sales and profits increase. Marketing also helps in developing the sales strategies and the methods of communicating with the customers. Types of Marketing The commonly used types of marketing include online marketing, offline marketing, outbound marketing, inbound marketing, direct marketing, niche marketing and guerrilla marketing (Gary, Harker and Kottler 35). Online marketing is mainly done through the internet while offline marketing is done through print and e lectronic media. Outbound marketing involves reaching customers who are not actively looking for the product being marketed. It uses techniques such as billboard adverts (Gary, Harker and Kottler 67). Inbound marketing makes use of search engine optimization to help customers find a firm and its products. Direct marketing focuses on delivering the marketing messages directly to the customers. Thus it uses strategies such as â€Å"telemarketing, emails and direct calling† (Gary, Harker and Kottler 71). Niche marketing focuses on reaching a market that is currently not being served by the existing firms. Guerilla marketing uses unconventional marketing approaches to reach customers and create brand awareness.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More When to Use Marketing Marketing is used under the following situations. First, it is used to identify the custom ers who are interested in the products being marketed (Gary, Harker and Kottler 45). This is achieved through appropriate market segmentation criteria. Second, it is used to enhance customer satisfaction (Gary, Harker and Kottler 46). The use of appropriate marketing communication channels enables firms to understand customers’ needs in order to offer the right products. Third, marketing is used when a new product is being launched (Gary, Harker and Kottler 48). It helps in creating awareness about the new product. Finally, it helps in retaining customers by helping firms to introduce appropriate customer-centered incentives such as discounts. Background Information on Social Networks Meaning of Social Networks A social network refers to â€Å"a structure consisting of individuals or organizations which are connected through interdependencies such as friendship or common interests† (Direct Marketing Association, U.S 2). Such networks are normally supported by social ne twork services which are usually offered through a website. The social network services provide a platform for creating and developing social networks among individuals with a common interest (Felzensztein and Gimmon 282). They facilitate interaction among their users through effective communication systems such as instant messaging and emails. Thus the users are able to exchange ideas or information on events, products and activities. Types of Social Networks The social networks commonly used in marketing are web-based (Direct Marketing Association, U.S 6). However, they differ in terms of their communication capabilities. Thus it is advisable to assess the ability of a particular network to reach the targeted audience. The common types include Facebook, Twitter, Last.fm, LinkedIn, MySpace, Tagged, Classmates, Mylife, Ning and LiveJournal (Felzensztein and Gimmon 283). Application of Social Networks in Marketing Advertising Advertising involves the use of a particular communication channel to influence potential customers to purchase a given product. The firms using social networks to advertise their products normally post their adverts on the websites that support the social networks (Direct Marketing Association, U.S 10). For example, most firms market their products by posting their adverts on Facebook’s and Twitter’s websites. Any user who visits the websites is thus able to access the adverts instantly (Akar 109). The suitability of a social network in regard to advertising depends on the characteristics of its users.Advertising We will write a custom research paper sample on Social Networks and Marketing specifically for you for only $16.05 $11/page Learn More This is because social networks are meant for a particular group of people who share a given interest. For example, LinkedIn is mostly used by professionals (Akar 110). Thus it is advisable to post an advert on a social network that is used by potential cons umers of the product. It is also important to asses the popularity of the social network before using it to advertise a given product in order to ensure that it can reach the targeted customers. Introducing a New Product Creating awareness about a given product is one of the priorities of marketers during the launch of a new product. This calls for a market communication channel that can reach as many customers as possible (Gary, Harker and Kottler 23). Besides, the communication channel should be able to provide clear information about the product. Social networks help in introducing a new product by providing an efficient and effective communication channel. The marketers can use several social networks to reach a large number of potential customers at the same time (Akar 113). The social networks are also used by the marketers to obtain customers’ views on the new product. This helps them to modify the product accordingly in order to suit the needs of the customers. Inform ation about Products Social networks help customers to obtain information about a product such as its price or the location of dealers who sell it. Users of social networks are able to engage the marketers in conversations about the product. This is achieved through live chats, emails and direct messages. Some marketers post articles or testimonies about their products on the social networks. Thus the users of the networks are able to find vital information about the products (Akar 114). The users of the networks are also able to share product information and this helps in creating brand awareness (Akar 115). Product information can be stored for a long time on the social networks. Such information can be used by customers for reference at a future date. Media Most social networks support a variety of media that enhance effective communication during marketing. The adverts placed on social networks are usually accompanied by a link that directs the customers to the marketers’ website (Schiff). Consequently, the customers are able to find more information or purchase the product instantly from the marketer’s website (Schiff). The video adverts supported by the social networks not only improve the quality of communication but also help in influencing the attitude of customers towards the product being advertised.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Success of Social Media in Marketing Interaction between People with the Same Interest Most social networks are used by individuals who share a common interest. People with the same interest are likely to purchase the same product. For example, a company that targets the working class or professionals can use LinkedIn. This is because majority of LinkedIn users are professionals and are thus likely to demand similar goods or services. Interactions among individuals with same interest also help in influencing customers’ purchasing patterns (Gilbert). This is because potential customers are likely to purchase a given product if such a product is endorsed by influential members of their social networks (Gilbert). High speed for sharing information The marketing massages sent through social networks normally reach the targeted customers instantly (Boyd and Ellison 434). This is because communication through social networks is based on internet technology. Internet technology faci litates instant transfer of information. Besides, the targeted users can always access the information at their convenience. The high speed of sharing information not only helps the marketers to reach their clients within the shortest time possible, but also enables them to receive immediate feedback from customers (Boyd and Ellison 435). Thus they are able to understand the needs of the customers in order to provide the goods that meet the expectation of the clients at the right time. The marketing process will be successful if the messages reach the customers within the desired timeframe. Constant and Direct Interaction with Customers Social networks facilitate direct interaction between the marketers and the potential customers (Boyd and Ellison 432). The direct interactions enable marketers to develop long-term relationships with their customers. The main benefit of such relationships is that they help in ensuring customer loyalty as the customers and the marketers continue to t rust each other (Schiff). Besides, the marketers can take advantage of the direct interactions to request for referrals from the existing customers. Direct interactions also enable customers to get personalized services such as technical advice during marketing and this enhances product awareness. Thus the marketing process will succeed as marketers strengthen the relationships between them and their customers (Schiff). The referrals also help in increasing the customer base. Wide Range of Customers Marketing through social networks enables companies to reach customers in every part of the world at the same time (Boyd and Ellison 436). Since communication through the social networks is based on internet technology, the marketing messages can be accessed worldwide (Direct Marketing Association, U.S 11). This eliminates the need to use local media in each and every country targeted by the marketers. This increases the marketers’ chances of turning potential customers into actua l customers. The sales volume and market share is likely to increase as the company reaches more potential buyers during marketing (Schiff). Thus social network marketing helps companies to reach a large number of potential customers within a short time and at a relatively low cost (Schiff). Potential Problems Associated with Social Network Marketing Marketing through social networks is associated with the following limitations. First, the ability to reach the targeted customers depends on the popularity of the used social network (Felzensztein and Gimmon 288). Thus if the network is not popular, it will not be effective in reaching the targeted customers. Second, it can only be used to reach customers with computer skills. This is because an individual must have basic skills in operating a computer and using internet technology in order to use the social networks. Third, the use of social networks is also limited by the availability and cost of using computers and the internet tech nology (Direct Marketing Association, U.S 17). In most developing countries, the cost of computers and internet technology is still very high thus limiting the use of social networks. Finally, the rise in cases of fraudulent adverts on social networks has adversely affected the popularity of social network marketing (Direct Marketing Association, U.S 19). In some cases, customers ignore adverts posted on social networks for fear of being defrauded. Possible Solutions to Limitations of Social Network Marketing Marketers can maximize the benefits of social networks by using them to reach customers in markets characterized by widespread use of computers and internet. Availability of computers and internet facilitates the use of social networks thus increasing the marketers’ chances of reaching the targeted customers (Wasserman and Galaskiewicz 23). Firms intending to use social networks should first asses the amount of traffic associated with the networks they intend to use befo re placing their adverts. This will help in selecting the most effective social network to reach the customers. Marketers should also focus on authenticating their adverts through effective security protocols in order to ensure the confidence of their customers (Barnes). Conclusion Marketing helps companies to reach their targeted customers through the most effective and efficient methods. Most companies are currently marketing their products through social networks in order to increase their sales and market share (Ostrow). The benefits associated with marketing through social networks are as follows. First, the marketing messages can reach the targeted customers instantly. Second, it enables companies to reach customers in every part of the world at the same time (Wasserman and Galaskiewicz 25). Finally, it facilitates effective communication and interaction between the marketers and the potential customers. However, its success is limited by the availability and use of computers and internet technology. Consequently, firms intending to use social networks for marketing should asses the customers’ ability to use the networks as well as the popularity of the networks. Akar, Erken. Social Networking Sites as a Type of Virtual Communication Channel. Anadolu University Journal of Social Science 10.2 (May 2010): 107-122. Barnes, Susan. A Privacy Paradox: Social Networking in the United States. Firstminday.org. Firstminday.org, 4 Sept. 2006. Web. Boyd, Danah and Nicole Ellison. Social Network Sites: Definition and History. Journal of Computer-Mediated Communities 13.1 (April 2007): 431-467. Direct Marketing Association, U.S. Social Network Marketing: Present and Future. New York: Direct Marketing Association, 2009. Print. Felzensztein, Christian and Eli Gimmon. Social Networks and Marketing Cooperation in Entrepreneurial Clusters. Journal of International Entrepreneurshiop 7.3 (June 2009): 281-291. Gary, Armstrong, Michael Harker and Philip Kottler. Market ing: an Introduction. New York: Finanacial Times Prentice Hall, 2009. Print. Gilbert, Sarah. Social Network Marketing: What Works? - HBS Working Knowledge. HBS Working Knowledge Faculty Research at Harvard Business School. Harvard Business School, 27 July 2009. Web. Ostrow, Adam. Social Networking Still the #1 Growth Area in Online Marketing. Mashable.com. 12 Jan. 2009. Web. Schiff, Jennifer. Social Network Marketing Meets Small Business. Small Business Computing. Small Business Computing, 6 July 2009. Web. Wasserman, Stanley and Joseph Galaskiewicz. Advanbces in Social Nework Analysis: Research in the Social and Behavioral Sciences. Thousand Oaks, CA: Sage Publications, 1994. Print.