The Importance of Social Media

What is Social Media?

The best way to define Social Media is to break it down. Media is an instrument on communication, like a newspaper or a radio, so social media is the social instrument of communication.

(Web Trends, 2014)

Whereas Social Media (2014), suggest that Social Media is the future of communication, it  is a wide range of internet based tools that enhance the sharing of information.

Social Media platforms consist of Twitter, Facebook and Linkedin. They have all created online communities where people are able to share as much or as little personal information as they wish, with other members, resulting in an enormous amount of information being shared, searched, promoted and created.

                            

 

Why is Social Media Important?

Science Direct (2011) explain how traditionally, consumers used the internet to simply expend content. E.g. They read, watch, use and buy products and services. However, consumers are now utilising platforms such as content sharing sites, blogs and social networking. This represents the social media phenomenon, which will now significantly impact a firm's reputation, sales and even survival.

They present a framework that defines social media by using seven functional building blocks;

1.      Identify

2.      Conversations

3.      Sharing

4.      Presence

5.      Relationships

6.      Reputation

7.      Groups

Organisations have to upkeep all these functions to survive. By building relationships with their customers through social media companies will gain their loyalty. It is a fast and efficient way to solve issues and problems to keep customers satisfied.

Social Media Today (2014) claims that social networks are like socialising in real life, if you want to talk to someone, you go talk to them, or give them a reason to talk to you. If you want engagement, you talk, you listen, then you respond. The power of engagement cannot be understated as a mean of strengthening relationships and trust in your brand, and social media is the best platform to facilitate this. It's immediate, it's accessible, and its where your audience is already at.

However, Social Media creates not only opportunities, but also complications and challenges. The transparency of the web makes online information available to all audiences, and reinforces the need for consistency in the planning, design, implementation and control of online marketing communications (Hart et al, 2000).

Nadaraja, R. & Yazdanifard, R. (2014) describe the main disadvantages that need to be considered on social media marketing:

1.      Time intensive

Social media is interactive, and needs a two-way exchange to succeed. Businesses will need specific job roles to manage these social networks, they must realise the necessary time commitment and either accept or reject that commitment (Barefoot & Szaboo, 2010).

2.      Trademark and Copyright Issues

According to Steinman and Hawkins (2010), It is of the utmost importance for companies to protect their own trademarks and copyrights when using social media to promote their brands and products.

Companies should have terms and conditions for their own social media outlets, with provisions specifying how to properly use the companies or third-party intellectual property.

3.      Negative Feedback

Social media converts consumers into marketers and advertisers. The consumers create positive or negative pressure for the company, including its products and services, depending on how the company is presented online. (Roberts & Kraynak 2008).

Unhappy customers or industry competitors are able to post and share their discomfort and there is not much a marketer can do to prevent these occurrences (Cheung, Lee, & Thadani, 2009).

Richard Branson's take on the importance of Social Media

Virgin (2012) highlights that many companies were very slow to start using social media. They create many guidelines about what their employees can and can't say. Richard Branson explains how his team were quick to start experimenting as they have always been innovative and approachable . He quickly discovered these channels were an amazing tool for reaching their customers. Through customer comments, they learnt about issues with their products and services quicker than ever before.

Richard Branson at Virgin (2012) quotes;

                'Whether you are launching a start-up or leading an established company, you should start establishing your social media presence if you haven't already.

The easiest way to start is setting up a help line for customers to ask questions about your product or service'

From taking the initiative to adopt the Social Media approach, Richard Branson himself and The Virgin Group has paid dividends, with over 4.1million people choosing to follow @RichardBranson on Twitter, along with a further 1.3million on Facebook and 6.2million on Google+. Richard uses his Social Media accounts to comment on issues he feels strongly about, such as the pointless war on drugs and the cruel practise of shark finning, from which many followers have responded, donated and volunteered to these causes. (Virgin, 2012)

I personally feel that Social Media is a very important and relevant tool for all businesses. It is the new phenomenon of the upcoming generations. To reach your target audience, you have to go to them, where they are; which is currently Social Networking sites.  There are disadvantages of using social media; people are free to share their opinion, good or bad, therefore negative comments can have an effect on your business. However, as long as people are talking about your business you are still creating a buzz, therefore I feel the pros outweigh the cons.  

References

Barefoot, D., and J. Szabo. (2010). “Friends with benefits: A social media-marketing handbook”. San Francisco: No Starch Press

Cheung, C. M. K., M. K. O. Lee, & D. R. Thadani. (2009). “The impact of positive electronic word-of-mouth on consumer online purchasing decision”. Visioning and Engineering the Knowledge Society. A Web Science Perspective, ed. M. D. Lytras et al. Lecture Notes in Computer Science 5736: 501–510

Hart, C., Neil, D. and Ellis-Chadwick, F. (2000). “Retailer adoption of the internet – implications for retail marketing”, European Journal of Marketing, vol. 34 no. 8, pp. 954-74

Nadaraja, R. & Yazdanifard, R. (2013) 'Social Media Marketing: Advantages and Disadvantages' [Online] <http://webcache.googleusercontent.com/search?q=cache:HoKlVvnAZZ8J:www.researchgate.net/profile/Rubathee_Nadaraja/publication/256296291_Social_Media_Marketing_SOCIAL_MEDIA_MARKETING_ADVANTAGES_AND_DISADVANTAGES/file/60b7d52235b90905db.pdf+&cd=1&hl=en&ct=clnk&gl=uk> [Accessed 1st May 2014]

Roberts, R. R., and J. Kraynak. (2008). “Walk like a giant, sell like a madman”. Hoboken,NJ: Wiley

Science Direct (2011) 'Social Media? Get Serious! Understanding the functional building blocks for social media' [Online] <http://ac.els-cdn.com/S0007681311000061/1-s2.0-S0007681311000061-main.pdf?_tid=d578c8ea-e8d0-11e3-bb8c-00000aab0f02&acdnat=1401547118_451bfead687e4c2ff32ffb00be8fa98e> [Accessed 1st May 2014]

Social Media (2014) 'What is Social Media?' [Online] <http://www.socialmediadefined.com/what-is-social-media/> [Accessed 1st May 2014]

Social Media Today (2014) 'Why Is Social Media Engagement So Important Anyway?' [Online] <http://socialmediatoday.com/adhutchinson/2137386/why-social-media-engagement-so-important-anyway> [Accessed 1st May 2014]

Steinman, M.L., Hawkins, M. (2010). “When marketing through social media, legal risks can go viral”, Intellectual Property & Technology Law Journal, vol. 22 no.8, pp. 1-9

Virgin (2012) 'Richard Branson - The Importance of Social Media' [Online] <http://www.virgin.com/entrepreneur/richard-branson-importance-social-media> [Accessed 1st May 2014]

Web Trends (2014) 'Social Media' [Online] <'http://webtrends.about.com/od/web20/a/social-media.htm> [Accessed 1st May 2014]