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Social Media Marketing - Essay Example

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This work "Social Media Marketing" describes how organizations should try to take care of the issues regarding social media marketing activities in order to maintain their brand image and high business performances. …
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Extract of sample "Social Media Marketing"

Investigate Study In recent years, social media has become highly important for content sharing, social networking, online accessing and social interaction among people around the globe. However, several business owners are also trying to use social media as important business communication tool. It is true that the demand for traditional marketing communication tool is rapidly decreasing among the leading multinational and domestic business organizations around the globe. The essay has discussed about the advantages and disadvantages of social; media marketing activities. The study has considered the thoughts and views of several academic literatures in order to compare and contrast the ways that social media marketing can help the organizations around the globe to promote and market their products. The essay has discussed how a business organization can get advantages through the use of social media networks as the marketing communication tools. The study has discussed that organization can enhance effective relationship with target customers, ensure high customer service management process, and reduce overall business operation time and cost. On the other hand, the study also have considered some views and thoughts of academic literatures in order to articulate how social media marketing activities can hamper the brand image and business performance of an organization. The study has shown that how the organizations should try to take care of the issues regarding social media marketing activities in order to maintain their brand image and high business performances. Lastly, the essay has summarized major points and aspects in the conclusion part regarding the answer of question i.e. “Compare and contrast the ways that social media marketing can help organizations to market their products”. Table of Contents Abstract 2 Introduction 4 Literature Review 5 Advantages 6 Disadvantages 11 Discussion 16 Conclusion 20 References 22 Appendices 24 Introduction Global business environment is becoming highly competitive as several leading organizations within a particular industry in this world are trying to capitalize on the potential business opportunities in order to gain potential competitive advantages. Different leading multinational or domestic organizations are trying to implement unique strategies in the business operation processes in order to maintain competitive edge in this competitive and saturated global business environment. Social media marketing can be considered as one of the newly developed and popular trends for both the global marketers and consumers regarding business communication activities. It is true that the needs of effective and transparent communication with business clients and global consumers have significantly increased among the global marketers. Social media network has become one of the important modes of business communication. However, it is true that the management of several organizations is choosing social media networks, such as Twitter, Facebook, LinkedIn and Google+ to market their products and services. Each and every organization in this competitive global business environment is trying to reduce the business operation cost in order to enhance effective business profitability. Recent financial crisis and global economic recession have affected the global economic environment. Low purchasing power and reduced disposable income can be considered as the most serious negative consequences of this global economic slowdown. However, it is highly essential for the organizations to offer products and services according to the needs and level of satisfaction of the customers. Adaptation and implementation social media marketing can be considered as an effective tool of marketing communication that can help the organizatio0ns around the globe to cut down overall business operation cost. It is true that this particular marketing communication tool is quite cost effective comparing to other marketing communication activities. There are several popular social media sites that have been utilized by several business organizations in order to enhance social media marketing activities to market their products and services. Facebook can be considered as one of the leading and popular social media networks. Several organizations choose Facebook as social media marketing networking sites due to its huge number of users and immense popularity. However, this study will try to discuss on several important facts regarding social media marketing. It is highly important6 for the readers to understand both the advantages and disadvantages of social media marketing activities as this social media marketing is becoming one of the important and popular trends in the field of marketing and marketing communication. Views and thoughts of several literatures have been considered in this study in order to discuss the importance, advantages and disadvantages of social media marketing. However, this research paper will try to compare and contrast the pathways that the social media marketing can help several organizations to market their products and services. Literature Review It is true that the social media is the advanced and modern tool for several marketers around the globe who try to send the message to the global consumers in a cost effective and efficient way. It has mentioned earlier that recent financial crisis and global economic recession have affected the global economic environment. People are trying to save more rather the consuming in order to back their affected purchasing power. On the other hand, demand for digital and online marketing activities has significantly increased among the global business owners and marketers. However, it is true that adoption and implementation of social media marketing strategy can help an organization to reduce its overall business operation cost. On the other hand, this social media marketing activities have several advantages. Organizations can develop an effective relationship with the potential target customers. “The organizations can enhance effective customer service through quality social media marketing activities”1. There are several disadvantages too of the social media marketing activities. Trademark and privacy issues have become the major concerns for the business organizations that have adopted and implemented social media marketing activities in the business operation process. This part of the study will try to consider the views of several literatures in order to investigate the advantages and disadvantages of social media marketing activities. Advantages It is clear from above discussion that several business organizations implement social media marketing activities in order to get two major advantages, such as cost efficiency and enhanced market reach. However, this part will try to investigate several types of advantages of social media marketing in the business operation processes. Social Interaction It is true that the global business environment has become highly competitive as well as saturated. Demand for high quality and differentiated products and services have significantly increased among the global consumers. However, it is true that several organizations are trying to adopt and implement new and unique business operation strategies in the business operation process in order to meet the market demand and satisfaction level of the target customers. Effective communication with the consumers has become of the most important parameters for the organizations. Therefore, each and every organization is trying to adopt effective integrated marketing communication strategy to communicate with the potential target customers quite effectively. “Advertising and promotional campaign can be considered as the most important and fruitful communication tools that can help the organizations to market their products and services to the target customers”2. It is true that, demand for digital and print media advertising and promotional activities will remain forever among the target customers. But, emergence of social media networking activities influenced several business organizations to adopt and implement social media marketing activities. Day-by-day, number of internet and social media users is increasing significantly. In addition to this, people are getting habituated to the term of social media marketing activities. People of young generation follow Facebook and Twitter posts before buying any product or service. As a whole it is clear that the leading multinational and domestic organizations around the globe have understood the significance of social media marketing. “Organizations can significantly interact with the global consumers through social media marketing activities due to growing number of internet and social media network users”3. “Most importantly, organizations can reach to the millions of global consumers in a second of time period through the use of social media network communication and marketing activities”4. Cost Efficiency It is clear from above mentioned facts and aspects that the recent financial crisis and global economic recession have affected entire global business environment as people are trying to buy high quality products in economic price level in order to back their affected purchasing power and reduced disposable income. Therefore, the leading organizations in different industries are trying to reduce overall business operation cost in order to offer products and services at economic price level. Cost efficiency can be considered as one of the major advantages of social media marketing activities. Business organizations have to face limited financial barriers in the social media marketing activities comparing to other forms of traditional marketing activities and campaigns. It is true that the majority of social media networking sites are absolutely free for access. On the other hand, number of users of these social media networking sites is increasing significantly. Therefore, organizations can target a large group of target customers in free or quite minimal marketing communication cost. Organizations can run several attractive social media marketing campaigns in low access fee. Most importantly, organizations are getting success to attract the target customers through this online social media marketing activities quite significantly and comfortably. In addition to this fact, the possibility of spread of a particular news feed is higher comparing to other marketing communication activities. Therefore, it can be stated that the organization can limit their integrated marketing communication cost through the adoption and utilization of social media marketing activities. Interactivity “Digital and print media activities can be considered as the most important practice of traditional marketing”5. However, each and every organization tries to consider these activities in the business operation processes in order to communicate with the target customers. But, the emergence of social media marketing has influenced several organizations to develop and implement online marketing communication activities. For example, several organizations try to aware people about new products and services through several popular social media networking sites, such as Facebook, Twitter and You Tube. On the other hand, the number of these social media network users is increasing at a constant and rapid growth rate. “Consumers can share their experiences, thoughts and views regarding the products and services through the developed pages by the organization”6. Most importantly, the time of interaction between the organizations and customers through social media networking sites is quite faster comparing to other mediums. Therefore, it can be stated that several leading multinational or domestic business organizations can interact with the potential target customers quite effectively comparing to other business communication platforms or mediums (Figure 1). Customer Service Each and every business organization is trying to enhance effective customer service in this modern era of competitive and saturated global business environment. Quality of customer service actually decides the degree of acceptance of an organization among the target customers. “It is highly important for the organizations to consider effective customer service aspects in the business operation process in order to enhance significant business performance”7. First of all, it is highly essential for the organizations to determine the satisfaction level of target customers. Several organizations have implemented online business operation strategies to determine this customer satisfaction aspect. Link of frequently asked questions section to the company website helped the organizations to determine the satisfaction level of the target customers. Determination of customer satisfaction level and developing strategy according to the response of target customers through the FAQs section can be considered as effective integration part of the relationship management that can help an organization to overcome the customer service challenges and enhance business profitability (Figure 2). Tesco can be considered as one of the leading retail chain stores in this world. The organization has developed several online networking sites in order to communicate with the potential target customers. “Installation of ICT and Big Data software helped Tesco to communicate with the customers”8. The management of this organization always tries to enhance effective customer service through unique public relation activities. The organization always tries to develop strategies according to the responses and satisfaction level of the customers. In addition to this, these online PR strategies help the management of the organization to provide quick and effective solution to the developed problems. Target Market It is highly important for the marketers of a product or a service to identify real target market and position the products and services according to the personal interest of target market and nature of the products and services. However, it is true that growling number of social media users and emergence of social media marketing activities are influencing the organizations to consider social media communication activities in the business operation process. McDonalds can be considered as one of the leading fast food chains around the globe. Social media marketing activity also can be considered as an effective example of viral marketing. “Significant post of a news feed or customer experience can help an organization to increase its brand image and brand equity among other social media users”9. On the other hand, it is both time and cost effective marketing activity that helps an organization to communicate with its target market audiences quite comprehensively. It is true that traditional marketing activities or campaigns cannot target customers of all the segments. But, it is the online social media marketing activities that can help the organization to target the customers of each and every segment quite effectively due to growing number of internet and social media users. Disadvantages The online social media marketing activities not only creates potential opportunities for the business organizations, but also develops several types of complications, issues and challenges that can affect the overall brand image and business performance of an organization. The transparency of online sites or websites makes all the online information available to all the online users. There are five major disadvantages of the social media marketing. These disadvantages are discussed below. Trademark and Copyright Issues Customers can be considered as the major assets for the organizations. It is utmost important for several organizations to enhance effective customer service and customer satisfaction aspect in order to enhance strong brand equity and high band image. It is true that several organizations are trying to adopt and implement online social media marketing activities in the business operation processes in order to attain potential competitive advantages in the competitive and saturated global business environment. However, it is the responsibility of each and every organization to protect their copyrights and trademarks during the marketing communication activities. “Brand name and other types of intellectual properties of an organization should be protected by the management of the organization during each and every implemented marketing activity”10. However, several third-party agencies and frauds try to take the advantage of this social media marketing activity adopted and implemented by the organization. It can actually harm the brand image and business performance of an organization. In several times, majority of the multinational or domestic organizations use third-party social media platforms regarding the promotion and marketing of newly developed products and services. It is quite difficult for an organization to monitor each and every social media marketing activities quite expertly (Figure 3). “Several organizations are facing critical challenges regarding this issue. Therefore, some third party agencies and frauds are trying to take the advantages of this lack of monitoring aspect”11. Violation of trademark and copyright issues due to social media marketing is significantly increasing in this modern era of advanced technology and social media emergence. Time Intensive In recent years, several leading domestic and multinational organizations have achieved huge success through the adoption and implementation of social media marketing activities in the business operation process as it helps the organization to socially interact with global consumers in quick time and limited cost. “It is true that the employees of marketing and communication department are responsible for monitoring each and every social media networking sites in order to handle the quarries and responses that have been posted by the social media users and several target customers”12. Business operation without proper and inadequate customer service management process cannot get effective and successful growth rate. It is quite difficult for the management of the organization to respond promptly to each and every quarry that are posted by the social media users and target customers within a quick time period. This aspect can be considered as one of the major drawbacks of social media marketing activity. User Generated Content User generated content is also recognized as UGC. “It is true that, during the last decade several social media users spent sufficient time and share their views or thoughts as social media posts through several popular and leading social media platforms”13. These posts and messages have already decided the profitability of the goods and services that have been marketed by the organizations. In this case the possibility of the fraction of error is maximum for the organizations as they have limited chance to overcome the issues within quick period of time due to lack of control over the user generated content. Ultimately this aspect can affect the overall brand image of the organization in global market place. Moreover, the organization can find huge difficulty to get success through the particular products or services. Privacy, Trust and Security issues Organizations generally use social media networks in marketing activities in order to reduce business operation cost, enhance customer satisfaction level and ensure better business output. It is the responsibility and ethical duty of the management of each and every organization to ensure privacy, trust and security of the potential target customers in order to maintain their competitive edge in this competitive global business environment. “Day-by-day, the percentage of cyber crime is increasing at a rapid pace”. Credit card fraud, theft of personal details and hacking of bank account details are becoming serious concerns for the business organizations. These crimes can be segmented as cyber crime activities. “It is true that, government of each and every country is developing several legislations and strict policies regarding these cyber crime activities”14. In addition to this, each and every organization is trying to improve the online payment and purchasing security to ensure the privacy aspect of the target customers. Despite these steps and initiatives, several individuals around the globe are trying to avoid the option of online purchasing and payment process. “This online purchasing and payment process can be considered as an integral part of online social media marketing activities”15. Therefore, it can be stated that the growing number of cyber crime activities is stopping global consumers to purchase products through online process. Negative Feedbacks Word of mouth marketing can be considered as an important aspect for the organizations to consider. It is true that several organizations are trying to post the experience of the customers regarding the consumption and utilization of products and services. It has both positive and negative impact on the business performance of an organization. “It is quite obvious that satisfied customers will always post good things about the used products and services”16. It can help the organization to increase its brand awareness among the target customers. Looking into this, significance several organizations have started to post several information and facts about the products and services in the social media networking sites quite frequently (Figure 4). But, it is also true that a post from the end of an unsatisfied customer regarding the experience of usage of products or services in the same social media networking site can create negative brand image among the target customers. It is clear from above mentioned facts that the number of social media and internet users is increasing at a rapid pace. Therefore, a single negative feedback about a product or service can hamper the brand image of that organization in global market places as millions of global consumers are linked with each other through the social media networking sites. Therefore, it is highly important for the organizations to take care of the quality of the products and customer service aspect if the management of the organization strongly believes in social media marketing activities. Discussion It is clear from above literature review part that social media marketing activities both have advantages and disadvantages. Several literatures have argued that use of social media networks in the marketing communication activities can help the organization to reduce both business operation cost and time. It is quite true so. Now-a-days, demand for traditional marketing communication, advertising and promotional activities has significantly reduced among the business organizations around the globe. The demand of traditional promotional and marketing communication activities has reduced due to the emergence of social media networks and technological advancement. In addition to this, the business organizations can target a large number of target customer audiences within quick period of time. Moreover, the cost of the posting of an advertisement is quite minimal comparing to other options. Therefore, several organizations try to choose social media marketing activities in the business operation strategy. Secondly, the business organizations adopt and implement marketing communication activities in order to communicate with target customers and create significant brand awareness among the target audiences. After the Second World War, several organizations started to capitalize on the potential business opportunities in the business operation processes developed due to globalization and technological advancement. Social media communication activities can be considered as the consequences of technological advancements. People, consumers and business organizations started to use social media networking sites as effective communication tools. These communication tools can relate millions of people around the globe within a quick period of time. Most importantly, it is the most cost and time effective option of communication. These significances influenced the organizations to consider social media marketing and communication process as major business communication tool. Thirdly, each and every organization tries to ensure effective relationship with the potential target customers in order to ensure positive business output and business performance. Inadequate relationship between the organization and consumers van ultimately affect the business performance and brand image of an organization. Organizations around the globe can maintain and improve the relationship with the global consumers through the social media networki8ng sites. The management of each and every organization should try to inform the target customers about the newly introduced products and services and its attributes. It will help the customers to take interest in the products and services. Most importantly it can help the organizations to interact with the target customers quite effectively. Fourthly, it is clear from the above literature review part that the organizations can maintain effective customer service manage2ment aspect through the implication of social media marketing activities. It is true that demand for quality products and customer service is significantly increasing among the target customers. Therefore, online customer service management tools or public relation software applications can help the organizations to maintain effective customer service management in the business operation process. It will help the organization to gain potential competitive advantages in this saturated and intense competitive global business environment. Several literatures have also discussed about the inadequacy and disadvantages o0f social media marketing. It is true that social media marketing activities are both time and cost effective, but high possibility of fraction of error can harm both the brand image and business performance of an organization. Privacy and security issues are the major concerns of the organizations that are adopted and implemented social media marketing activities. It is clear from above literature, review that the percentage of cyber crime is increasing at a rapid rate. Despite the development of several policies and initiatives, customers are avoiding the option of online purchasing and online payment. It is affecting the business performance of the organizations. Fear of theft of personal details, hacking of bank account details and credit card fraud is stopping the customers to take the advantage of online shopping. It is the responsibility of the organizations to ensure the improved online security and privacy aspect of the target customers and online users. It will help the organization to ensure high brand image and successful business growth rate. Trademark and copyrights issues are the other disadvantages that can affect the business performances of the organizations. It is true that the majority of the organizations generally try to promote and market their products through third party online or social media agencies. It can create several types of copyright and trademark issues. Several frauds and third party agencies can misuse the information or facts that are provided by the organizations. Most importantly, it can affect the brand image as well as business productivity of t6he organizations. Several organizations try to copy the styles and intellectual properties of other organizations that are posted in the social media networking sites. Although this is the breach of business ethics and sustainability, but these types of issues can create negative mindset about the organization in the mind of the target customers. Negative feedback is another disadvantage of social media marketing activity that can damage the brand equity and brand image of an organization. It is true that several organizations try to ensure high customer satisfaction level in order to ensure positive business output in this competitive and saturated global business environment. The number of organizations in a particular industry that offer similar types of products and services has increased significantly. Therefore, the possibility of switching of brand or companies by the customers also has i9ncreased accordingly. Therefore, it is the responsibility of the organizations to enhance effective product and customer service quality to maintain competitive position in global or regional market place. It is clear from the above discussions that how social media marketing activities pose opportunities as well as challenges to the business organization. It is important for the organizations to grab the potential business opportunities developed by the utilization of social media networks in the marketing communication process quite expertly in this modern era of globalization and technological advancement as the global consumers are also seeking for these services. But, this is also important for the organizations to consider the disadvantages and challenges of social media marketing activities as these challenges can affect the business performance and brand image of an organization around the global market places. Most importantly, organizations in this modern era should try to consider the copyright issues and customers’ privacy issues by improving the online security. It will help the organization to win the faith of target customers and other important stakeholders. Conclusion It is clear from above discussion that several leading organizations within a particular industry are trying to capitalize on the potential opportunities to ensure potential competitive advantages. Globalization and emergence of advanced technology influenced several organizations to adopt and implement unique strategies in the business operation processes in order to meet the market demand and needs of target customers. Social media marketing has become one of the common terms for the organizations that used to promote or market their products and services to a group of target customers. It is true that the tendency to develop and implement social media marketing strategy has significantly increased among the business organizations due to several factors. This study has considered the views of several literatures in order to determine the advantages of social media marketing activities in overall business performance. First of all, the organizations can limit overall business operation time and business operation cost through the adoption and implementation of social media marketing activities. Moreover, the organizations can interact with large number of target customers within quick period of time through the implementation of social media communication and marketing activities. Day-by-day, the number of social media users is increasing rapidly. Moreover, the organizations can target the people of each and every demographic segment through social media activities. Therefore, it can be stated that the use of several leading and popular social media platforms and networks can help the organizations around the globe to capitalize on the potential business opportunities. However, the study has also discussed about several challenges and disadvantages of the consideration of social media communication and marketing activities in the business operation processes. It is true that several consumers around the globe are trying to avoid the option of online purchasing and payment processing process due to the fear of violation of privacy and security aspect. Percentage of cyber crime and theft of bank account details during online payment is increasing at a rapid pace. Several organizations are trying to improve the online security aspect in order to overcome these types of challenges and issues. But, fear about these facilities and services are seriously affecting the business performances of the organizations. It is highly important for the organizations to create faith and trust about the newly developed online services in the mind of target customers in order to maintain strong brand image. Ultimately, improve online security will help the organizations to ensure ethical and conflict free business operation practices. References Fiore, A.M., Kim, J., and Lee, H. H., 2005. “Effect of image interactivity technology on consumer responses toward the online retailer”. Journal of Interactive Marketing, 19(3), pp. 38–53. Forman, C., Ghose, A., and Wiesenfeld, B., 2008. “Examining the relationship between reviews and sales: The role of reviewer identity disclosure in electronic markets”. Information Systems Research, 19 (3), pp. 291–313. Gommans, M., Krishnan, K. S., and Scheffold, K. B., 2001. “From brand loyalty to e-loyalty: A conceptual framework”. Journal of Economic and Social Research, 3(1), pp.43-58. Hart, C., Neil, D., and Ellis-Chadwick, F., 2000. “Retailer adoption of the internet – implications for retail marketing”. European Journal of Marketing, 34(8), pp. 954-74. Helmsley, S., 2000. “Keeping Custom”. Marketing Week (UK), 23(7), pp. 39-42. Hennig-thurau, T., K. P., Gwinner, G. W., and Gremler. D., 2004. “Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the Internet?”. Journal of Interactive Marketing, 18(1), pp. 38–52. Hill, P.R., and Moran, N., 2011. “Social marketing meets interactive media: lesson for advertising company”. International Journal of Advertising, 30(5), pp. 815–838. Hill, S., Provost, F., and Volinsky, C., 2006. “Network-Based Marketing: Identify likely adopters via consumer networks”. Journal of Statistical Science, 21 (2), pp .256-276. Hoffman, D., Novak, T., and Peralta, M., 1999. “Information Privacy in the Market space: Implications for the Commercial Uses of Anonymity on the Web”. Information Society, 15 (2), pp. 129-140. Huang, P., Lurie, N. H., and Mitra, S., 2009. “Searching for experience on the web: an empirical examination of consumer behavior for search and experience goods”. Journal of Marketing, 73(2), pp. 55–69. Montgomery, A. L., 2001. “Applying quantitative marketing techniques to the Internet interfaces”. Journal of Social Media Marketing, 31(2), pp. 90–108. Murugesan, S., 2007. “Business uses of web 2.0: potential and prospects”. Presented at Cutter Consortium, Business-IT Advisory Service, 10(1), pp. 1–28. Riegner, C., 2007. “Word of mouth on the web: the impact of web 2.0 on consumer purchase decisions”. Journal of Advertising Research, 47(4), pp. 437–447. Terry, D., and Frank, B., 2002. "Impact of 3-D Advertising on Product Knowledge, Brand, Attitude, and Purchase Intention: The Mediating Role of Presence”. Journal of Advertising, 31 (3), pp. 59-67. Xiang, Z., and Gretzel, U., 2010. “Role of social media in online travel information search”. Tourism Management, 31(1), pp. 179–188. Yuping, L., and Shrum, L., 2002. "What Is Interactivity and Is It Always Such a Good Thing? Implications of Definition, Person, and Situation for the Influence of Interactivity on Advertising Effectiveness”. Journal of Advertising, 31 (4), pp. 53- 66. Appendices Figure 1: Benefits of Social Media Marketing for Organizations Figure 2: Advantages of Social Media Marketing for Organizations Figure 3: Social Media marketing Challenges Figure 4: Frequency of the Post Content by Organizations in Social Media Networks Read More

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