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The Impact Of Social Media Marketing Essay

This assignment speaking about about the impact of communal media along the way companies are conducted today in terms of technological, economical, political and social exchanges brought about by these form of modern communication. As we know this modern communication system offering impact to businesses today. We haven't any control to communal press because this system giving users independence expressing their opinions, experiences or whatever they wants. Social media marketing providing big possibility to organization to develop better relationship with clients and providing real one to one communication. Customers are actually become more particular about with whom and from where they are simply buying products. One of the key reason why businesses must use cultural media is because their competition applying this system daily as marketing strategy. Customers and future customers also using that.

Case review on gigantic restaurant McDonalds exhibiting that even big companies also struggling to control the energy of social mass media.

Wildfire ROI Review 2011 survey implies that, marketers admits sociable media helping them to increase brand understanding and increasing customer relation. Businesses that straight interacting with customers should use communal multimedia to increase their income and raise the brand awareness.

Many organizations now start using internal sociable network which links their employees all over the world. For instance, Red Robin Gourmet Burgers Restaurants have significantly more then 460 outlet stores in America using internal communal network to make certain daily procedure getting far better plus they become one of the famous restaurant in the us. The main world retailer who have more then 2. 2 million employees in 2012, Wal-Mart using communal media platform to streamline source chains and deal with the stocks and shares and inventories more proficiently to reduce the product price.

Any products related to public media also assisting raise the world market. Products like notebooks, iPads, iPhones, headphone, headset etc which used by customers to gain access to social marketing received high demand.

Thousands of companies worldwide involved in offering social mass media services offers a large number of jobs opportunity.

Some Fail Tales of Businesses when working with SOCIAL MEDIA MARKETING is Netflix where they are really one of the most notable internet membership service for watching movies and TV programs from any countries lost 800, 000 customers because avoid listening to customers feedback form cultural media.

Example of Success Companies because of Social Media is KLM Royal Dutch Airlines where effectively enjoy with "meet and seat" marketing campaign which allow individuals choose the seatmate before panel the planes.

As a realization, Social media guaranteeing a great deal of opportunities and problems, so organization must prepare themselves to facing this.

What is Social Media?

Andreas Kaplan and Michael Haenlein explain social multimedia as "several Internet-based applications that build on the ideological and technical foundations of Blogging platforms 2. 0 and this allow the creation and exchange of user-generated content".

Social Media consists of two words. The first one is "Social" which means interaction, sharing and so on. Another expression is "Media" where to say that public media is a medium for publication.

Social media is made up of a whole lot of tools and applications which allow users communicate their opinion, publish articles, sharing videos and so forth easily.

Social Media Landscape

The chart below shows the social media network scenery. There have a whole lot of different tools and services which allow users to do almost anything that they need.

For posting articles, opinions, reports and so on there have blogs, wikis and citizen journalism portals. Twitter is made for Micro publication. There have thousands of website that allow users to talk about videos, pictures, links, music, slideshows and product critiques. Websites like YouTube. com, FlickR and so forth are a few of the popular sites.

To make dialogue and sharing ideas or even making problem about any companies, there have community forums, video community forums, instant messaging and VoIP. Social Media also allow us to watch world live tv set programs or even live basketball from all over the world. There likewise have platforms for virtual words, social gaming and MMO.

The most popular network on internet is Social Networks like Facebook, MySpace, LinkedIn and so forth that connecting anybody from anywhere. Corresponding to Edison Research Survey in 2012 (the only providers of exit polling information for ABC, CNN, CBS, Fox, NBC, The AP and the majority of newspapers worldwide) says that, more then half North american has created profile in any Networks.

Edison Research Survey in 2012 also shows that nearly two thirds of social networkers are using sociable sites daily.

Social Media History

Social Media background began in 1969 when CompuServe Company offers internet services for general population using dial-up technology in USA. Then in 1979 Usenet become first bulletin panel which attaches Duke College or university and University or college of NEW YORK. The development process constantly moving until Tripod presented online community for college students and young adults in 1992. In 1997 there have more then one million sites on the internet including cultural media sites like AOL Instant Messenger. Frindster become biggest interpersonal networking site in 2002 with an increase of then 3 million users. In 2003 Myspace, Frindster clone site launched and LinkedIn also launched their business-oriented public networking site for professionals. In 2004 Facebook began their operation that provides networking chance of Harvard University. YouTube come to the planet in 2005 and give excitements to the planet with video showing features. In 2011 cultural advertising can be accessed from anywhere in the world and be one of the important thing inside our life. A large number of sites offers public multimedia services in 2012 and all this sites very adaptable and can be accessed through numerous devices. Companies are actually pressured to use interpersonal media to make sure their brand always in customers brain.

Social Press Influence

According to Sir Andrew Likierman, London Business College Dean, "social marketing has completely disrupted just how businesses examine their performance". This assertion is completely true because sociable media not much longer an option but is a must especially companies that working straightly with customers. Some business can completely avoid thinking about social marketing like wholesalers because they just coping with another business. Since communal media are more power, corporation facing troubles to measure their performance. They need to have specific technique for social press or even companies may have one special unit that manage feedbacks and replies from end user. Any negative feedbacks should get attention and they have to discuss how to respond with any negative comments. Any negative response from customers will be there on online forever. No chance to remove that and because of that, companies that avoid think about public media will lose some customers.

Customers are actually become more particular about with whom and from where these are buying products. They willing to make online search before making any purchase decision especially for expensive items. Since internet is now more effortlessly searchable through smart devices, customer can make search in simply a minutes. That is why companies will need to have social media existence and put some focus on deal with customer response and try to convincing them that the business is reputable and trusted. Social media marketing providing big possibility to organization to construct better connection with clients and providing real one to one communication. There have no better advertising then "word of mouth". Satisfied customers surely will share to their friends in their sociable network about their experience with a specific company. If one person stocks their experience to his 400 Facebook friends, which friends propagate that news to their friends, the info moves extremely fast. If a video published in YouTube with getting subject like "THINK before you eat XXX", this training video surely will grab hundreds or even an incredible number of public medial users. With "Share" function available almost in any site, in just a second we can discuss anything to interpersonal press community.

One of the key reason that we must use communal media is because our competition using that daily as online marketing strategy. If we not use suggest we loosing customers. Emarketer says in 2011, the Facebook advertising earnings estimated at 3. 8 billion money and can increase to 5. 2 billion dollars in 2012. Exactly what does it mean?, this numbers demonstrates a great deal of businesses using social press to make advertising. A lot of businesses have sociable media networks bank account. Because of this, competitors are compelled to make online existence. They haven't any option, make appearance in cultural marketing or you will lose customers.

Another big reason why an enterprise should using sociable press because their customers and future customers using it. A lot of folks have at rent one social media bank account like Facebook, YouTube etc. A company should present their brand where customers are. Customarily we can see people open outlets at audience places like in shopping mall etc. The same case here where a business should within masses place like interpersonal media. Million of folks using that each day. You didn't show mean, the rival getting much better.

According to McKinsey, group that using interpersonal media able to increase 50 percent customer's satisfaction. They also able to catch 48 percent running a business lead and the most crucial is, their revenue increase 24 percent.

Case Analysis (McDonalds)

I would like to discuss about, what exactly are the effects of SOCIAL WEBSITES to one of the world's popular junk food large company McDonalds. If we search the word "McDonalds" on YouTube. com (one of the top video posting site), there have 124, 000 results. Among this results we can found that, thousand of results that demonstrating bad thing about McDonalds. Some of the video game titles are:

Video with subject "McDonalds horror" got more then 4. 2 million views with 8, 859 loves. Hundred of the viewers commented on this video tutorial and one of the comment is "I think I »don't want to consume french fries from McD again" which acquired more the other thousand loves. This video exhibiting about McDonald's foods and just why some of their food will take very long time to ruin.

This is how nowadays people using public media to express their views and writing bad thing about any brands. They are now having ability which can affect other people behaviors'. People who watching this video tutorial then surely with pass on this to their friends, relations and so on. That is real obstacle to McDonalds and most of companies.

Some rival also may misuse cultural media to dispersing bad thing about their competition company. Any people can publish videos displaying bad thing about their opponents company plus they also may set specific plan to adding them down. No one can stop this type of manners and activities.

As response, I see McDonalds demonstrating some effort to describe questions that asked by viewers. McDonalds published some response video. One of the video headings is "Behind the views at a McDonald's photography throw" (with 7 million views plus more then 17, 000 wants) which points out answers to questions asked by viewers. McDonalds became aware the impact of videos uploaded by their customers with their business. If McDonalds didn't do anything as respond to videos that showing bad reasons for having them, surely this will impact their business performance and lost huge amount of customers. I found that McDonalds still didn't answer a lot more questions asked by customer through sociable advertising. They only answer a few of them and huge amount of videos still haven't have any answer.

In January 2012, McDonalds launched Twitter plan with hashtag #McDStories which allow customers to post nostalgic testimonies and their experiences with Happy Dishes (one of the famous meal sold by McDonalds). As response, customers learn to share bad reports about Happy Dishes like customer support, food quality. One of their post is "just acquired a terrible burger that's been there four hours". This is one of the fail marketing campaign by McDonalds. Like a lesson we should understand that cultural multimedia offering big opportunity and big risk. People's notion and feedbacks is uncontrollable. Companies should have some contingency plan which can be used if any issue happens. Even world's big gigantic restaurant also unable to control the public media.

Measuring the business enterprise Impact of Social Media (Wildfire ROI Review 2011)

Social marketing is a permanent strategy which falls under advertising and public relation investment. When social media coupled with other marketing strategies, a particular brand will usually at peoples mind.

In November 2011, Wildfire (a division of Google) who is world's largest social media software providers, involved in ROI survey. This review conducted to over 700 marketers from range of countries. This review demonstrates, marketers admit cultural media helping those to increase brand recognition and increasing customer relationships. Over 97% of marketers is convinced that social media marketing plan increasing their business performance. As a long time strategy in addition they want to increase public mass media spending.

This survey also demonstrates (see amount 3), social multimedia have capacity to growing brand understanding and able to increasing sales and partnerships. 41% marketers agreed that this advertising able to reducing cost that will result in revenue increase.

94% respondents rated Facebook as one of these biggest sociable marketing system which presenting more value with their campaign. Facebook supplying more new customers, have high transformation rate and increased customer's commitment.

As a listing of this review we can easily see that social press changing how exactly we doing business today. Businesses that straight getting together with customers should use cultural mass media to increase their income and raise the brand awareness. Daily, social media getting more sophisticated and businesses should start a set permanent social mass media strategy. Big companies may use this media to boost their customer service because they can keep on vision on customer's behaviours and behave fast.

The Impact of SOCIAL MEDIA MARKETING on the Way Companies are Conducted Today

Technological Impact

Many organizations now start using internal cultural network which attaches their employees all over the world. For instance, Red Robin Premium Burgers Restaurants have significantly more then 460 retailers in the us. They are using internal interpersonal network which look similar like Facebook to instruct their workers and managers about the recipes and how to make them fast. These are forget about using traditional ways like send out bunch of catalogs to each wall plug. Also, they are no more looking forward to feedback when store visit by headquarters and so on. Any issues that occur in any electric outlet get fast response from headquarters in just in few minutes. Everything becomes simpler and fast with internal social networks. Managers communicate with other managers in other shop through talk or video conversation function. More exiting news is, they are creating burgers regarding to customer's reviews in social advertising. As a result, Red Robin Premium Burgers becomes one of the famous restaurants in the us.

More and more companies are actually using social multimedia technology to increase the business enterprise process and make sure every job done effectively. The main world retailer who've more then 2. 2 million employees in 2012, Wal-Mart using sociable media platform to streamline source chains and manage the shares and inventories more proficiently to reduce the product price. Many banking institutions in the us using social advertising to reduce cost for processing mortgages.

SupeValu is one of the company who have amount of supermarket chains in America using Yammer (venture communal network software) to hook up all 11, 000 professionals and store professionals. They created 1000 groups in that network to go over about troubles and talking about new ideas. All store professionals are in one group where speaking about problems and ideas. Another group of supervisors discussing problem related to their controls. This method is less expensive rather then possessing appointment where participated by all managers.

According to McKinsey & Co. Study, they found that two-third of big companies in USA are now using blogging platforms 2. 0 application like internal internet sites or blogs, 50% increase from 12 months 2008. 90% of this companies declare that, this new communication way improved upon their operation and the process getting much faster.

Eric Lesser, one of the Director at IBM's Institute for Business Value, said that social advertising make the communication between your world's pros with various skills to sharing ideas and resolving problems easily.

Social multimedia technology moving very quickly. This forcing company to get energetic team which can learn new thing much faster. The software related to social media updated more regularly. The team should always ready anytime to facing new problems. They must understand the most effective way to use communal media which may bring good final result for the company. All this driving companies to spend more and also have specific budget.

Social advertising increased the amount of internet surfers worldwide. From 2008 to 2012 the earth internet users increased by 30% relating to BBC. This obligated internet service providers to locating new ways to speedup the internet connection. This to ensure all business activities can be done considerably faster, cheaper and in far better way. Now we may use 4G and Dietary fiber Optic network to distribute messages or any services just in second. Discussion thought Skype becomes more comfort without any interruption. Increasingly more companies using most advanced technology for communicate with other people. This is another good impact of social media.

Economical Impact

Social mass media helped businesses to create product which have popular and matching to customers needs. Customer presenting feedbacks which helped many companies to build up their products and services. Companies like Dell using ideas from customers to creating and improving their products. Among the example is created backlit keyboards which is more desirable when focusing on airplanes. Companies who creating products relating to customers needs surely can help boost the overall economy because popular to that products.

Any products related to social media also helping boost the world current economic climate. Products like laptop computers, iPads, iPhones, headphone, headset and so on which employed by customers to gain access to social marketing received very high demand. Meg Whitman who is CEO of HP, says that in the past 2 years the sales because of their laptops risen to more then 60%. The remarkable increase due to the fact of impact of interpersonal media. Increasing numbers of people using social marketing now and devices such as laptop computers receive high demand. Apple, Inc also admits that the sales for their hot product iPad received high demand because of this of social media.

Social advertising also created job opportunities which can help the economy. Social websites created a large number of jobs opportunities. Facebook has more then 2, 000 employees, Twitter has 300 employees and Groupon hired more then 4, 500 individuals. This only some results, there have a large number of companies worldwide involved in offering social marketing services which offer thousands of jobs opportunity. World current economic climate increased and unemployment rate lowered. Business associated with facebook created 232, 000 new job opportunity in Europe in 2012 according to the news publicized by CNN.

Social press also created new industry where many people in a position to make income online. Many people are now enjoying income from your home and helped house wife's to generate income to supporting their spouse while care for their children at home.

Social media added many benefits to the overall economy but there also have some negative impact. Entertainment industry especially film industry affected by social press. Film makers spend million of dollars to make films. Thought social press sites like You Tube or any record showing sites, any people can enjoy new movies free. Even though industry players got some actions to lessen the impact, however they struggling to stop this activity totally.

Political Impact

Many country leaders are now motivating visitors to use social mass media. One of the greatest example is Malaysian Leading Ministers, Najib Tun Razak. He has more then one million Facebook enthusiasts as well as Tweeter. He posting a whole lot of information though his network about his daily activity and so forth. As a result, many companies begin using social mass media especially Facebook on their daily operation. Most of businesses in Malaysia have Facebook ID.

If we go deeper about the impact of public advertising in Malaysia, we can easily see Lynas Corporation task. Lynas task is from Australian company Lynas Company. This company supplies rare earths for many businesses. Many opposition political functions in Malaysia shows protects from this task because they consider this task provide danger for local environments. Malaysian resident shows protect against this task thought social press. Facebook and many other social networks filled with feedback about this project. As a result government required some action to describe to citizen concerning this project and promise to evaluate back again the existence of this project in Malaysia. This in another of the example exhibiting clearly how communal media impact government authorities' decision and businesses.

Cultural Exchanges Impact

Social press highly impact most of business aspect. Now many businesses especially who've big amount of employees' begin using internal interpersonal networking utilities making communication among them made simple. Regarding to research made by Garner, in 2014 it assumed that more then 20 percent of businesses will use internal communal networking utilities which will replace email communication now. With inner communication social network, any latest activities by company and so on will known by their employees much faster.

Social media impact on human reference process from recruitment, development, profession management, mentoring and so forth. For instance, LinkedIn is a interpersonal networking site for individuals in professional occupations. This site has more then 140 million members. Many organizations using this web site to find real talent individuals. Many HR departments using LinkedIn nowadays for recruitment where this web site offer many tools that can be used to see full profile and so on. Companies also placing jobs at this site. This site opens new way to find talented professionals. Experts enjoy posting their experiences on this site.

Social marketing sites also employed by companies to evaluate their employees and future employees. For instance, after Human Source section conducted interview for job opportunities, they will search prospect details through social network sites such as Facebook to examine whether that candidate suitable or not or has any bad reasons for having them. This is one of just how how human resource department are actually evaluate their prospect.

Social systems like Facebook extremely giving big impact to world culture. We could have friends from many countries and communication with them able us to comprehend about their culture. Businesses now make an effort to explore new marketplaces. Companies like KFC and McDonalds try to localize a few of their foods. Using customer's reviews from communal network, these companies try to add some local foods from that one country as well as their main selections. "Nasi Ayam" which is one of the Malaysia local foods offered by KFC. They also try to add foods from other countries to local market.

Social media beneficial to trading companies. If they found Iranian drink getting popular in Malaysia, they start importing these refreshments to be sold at Malaysia. The ideas are result from customer's responses from social mass media. Now we can enjoy foods and dresses which belongs to other culture offered by local market.

Some negatives of social advertising to companies is, communal media will give negative impact to staff productivity. Employee's may wasting time to engage with the friends instead of doing the work that they must do. Now days we can see many employees using sociable network in office time specially when their bosses are not around.

Some Fail Reviews of Businesses WHEN WORKING WITH Social Media

Netflix is one of the most notable internet membership service for viewing movies and Television set programs from any country. They have more then 27 million users in America, Canada, UK and Ireland. If they increased their regular monthly subscription price, customers showed their safeguard through social press with an increase of then 82, 000 negative remarks. The following month they lost 800, 000 customers. Even as can see companies can use social media as one of the platform to evaluate whether any decision that they made which is associated with customers. Any negative response must get fast attention from company.

In 2012, huge car maker Toyota launched Camry Result Marketing campaign on Twitter to promote Camry. They has generated variety of Twitter account. This campaign is made for directly communicate with users but what happen is, big range of users learn to accuse Toyota because bombarding and spamming then with many unsolicited text messages. As response Toyota suspended their accounts. Until now this campaign popular as fails advertising campaign. The main problem with this marketing campaign is, not because Toyota Spamming then but the content of the information that they send out is not bringing in. They also are sending same emails content again and again. They are just sending promotional messages which not help to build romance with users.

Example of Success Companies because of Sociable Media

KLM Royal Dutch Airlines in well known among the largest airlines in the world. They in a position to entice future customers in unique ways and convert them as paying customers. They really clear about what customer wants plus they believe customers paying for journey. They started social media in 2009 2009, after some failure they come out with very controversial successful idea. They made join endeavor with communal networking sites like Facebook, Twitter and so on and created tool which can help travellers to choose seatmate before panel the airplane. This campaign known as "meet and seat". After passengers choose the seat partner, they can talk to them using social networks like Facebook before they meet at trip. That one of the fantastic idea KLM where utilizing interpersonal media and present ultimate experience to their passenger.

Disadvantage of SOCIAL MEDIA MARKETING for Business

A successful online existence especially in cultural media, a company needs a skilled team which can improve companies' reputation. Social networking becomes unique and in a position to drive a lot of sales when they build relationships their customers. This suggest they need to reply messages, remarks and so on. Moving sales without participating with customers or not respond to negative feedback will affect the companies' reputation. We also must produce new items and always find out ways to triumph over to any negative responses.

There have thousands of sites in communal media which can be used to your business benefit. Is not easy for evaluate which site we should give consideration more and which site gives real value for assets. Return on Investment evaluation process is not a fairly easy with social press.

Wrong online presence strategy will affect the companies' reputation and put them at a viral cultural disadvantages. Any miscalculation they make before thousand of enthusiasts or social advertising members will bring about big reputation impact. So we must careful when perform social media campaign.

Using social media and marketing campaign could become more time consuming because we must look out every activity that we should do and interesting with people.

Advantage of SOCIAL NETWORKING for Business

The advertising cost is a lot more cheaper then traditional advertising and promotional activities. Social networking also provides full value for each and every cent we spend. Traditional advertising only show the brand to the customer but with public multimedia we can build long-term marriage through "Like" function and can get their email address for send future email messages.

Future customer in a position to find our brand through many programs like sharing activities, news, internet search engine search result and so on which give us free advertising. Social media marketing can bring large amount of traffic to our content particularly when that content getting their attention. This everything we can call free traffic or free customers.

Social media allows customers expressing their activities to others. A satisfies customers surely may bring another new customer though sharing experience activity. This also able to motivates companies to do the best as they can because individuals are now have independence expressing their views and feedback without the blocks. Companies will improve their products and services to customers.


Social media provides deep impact to the business enterprise world today from small companies to big big companies. Social media panorama is big and the system and technology constantly growing and changing everyday. Companies who using and provided in social press enjoying big benefits. Some companies received negative impact. Social media not longer an option but is crucial especially companies that interacting straightly with customers. Social networking promising a great deal of opportunities and problems, so organization must make themselves to facing this.

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