SOCIAL MEDIA SITES IMPACT ON BUSINESSES AND

CONSUMERS

Submitted to
Shari Weiss, Professor
San Francisco State University, California

Submitted by
Jessica Hines, Student
San Francisco State University, California

April 7, 2015

TABLE OF CONTENTS

EXECUSTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SIGNIFICANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
SCOPE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DISCUSSION: USAGE, RELATIONSHIPS, AND BENEFITS. . . . . . . . . . . . . . . . . . . . . 2
USAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
FIGURE 1 : SOCIAL CONNECTION THROUGH MEDIA . . . . . . . . . 2
SIZE MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 3
FIGURE 2: EMBEDDING BUYING BEHAVIOR . . . . . . . . . . . . . . . . 3
CONSUMER RELATIONSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 4
SUSTAINABILITY OR ADATPTABILTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
FIGURE 3 : RELATIONSHIP GOALS BETWEEN BUSINESSES AND
SOCIAL MEDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
FIGURE 4 : WHO USES WHAT?. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
CONCLUSION AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
WORK CITED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

EXECUTIVE SUMMARY
Businesses can benefit from social networking sites, enabling companies to the utilization of a social media site is
imperative to the business. By using the right social media site, businesses can build relationships with people.
Communication is the most vital part of a businesss relationship with consumers. How companies communicate can
either benefit or destroy a businesss brand.

1.
2.
3.
4.
5.

When evaluating different media sites before choosing one, a business must look at the size of its users per social
platform. Facebook would be the most effective social media based off of the larger percentage of users
Strategically advertise products that are accessible to consumers at the right place and at the right time which will
increase their buying behavior. Social media is also dependent upon the location of stores, neighborhoods, and other
businesses that surround the consumer.
The percentage of businesses that increase or continue with the same established social media are higher than the
percentage of businesses who decide to decrease or not use social media at all.
The benefits of social media are being able to connect to a large market of consumers. Brand awareness and
immediate feedback from customers will lead to a successful web based approach in marketing which is seen in
figure 1, figure 2, and figure 3.
Based on findings Facebook, LinkedIn, Instagram, Twitter, and Pin interest are the most used social media sites.

With over 50 social media sites leading the way in communication within the business world, Companies must be
able to evaluate and strategically choose what one or two media platform sites will best suit their marketing plan
without it being underutilized instead of connecting with the audience.

INTRODUCTION

Background
Social media was once used for individuals to engage and interact with others without having to
communicate face to face. Recognizing this action , businesses started to use social media to develop a
direct relationship with their customers and to promote their brand, as Mochas states , Weve also seen
customers become empowered as never before , where they expect immediate , relevant communication in
real time(2005).
Purpose
The purpose of this report is to view how strategic planning can benefit businesses when choosing a social
media site. This report is significant because businesses must adapt to the changing market and to social
media-savvy customers in order to effectively market their product. Most social media sites are underutilize
by businesses which can be a loss of opportunity cost and lessen the direct connection with customers.
Significance

This study was completed to analyze the methods use when strategically choosing social media
sites that best suites businesses. The effectiveness of social media to businesses is also evaluated.
Scope
In this study, the social media sites with the most active users such as Face book, Twitter,
Instagram, LinkedIn, and Pinterest will be analyzed and questions surrounding these social media sites will
be explored such as:
What methods should businesses consider when choosing the right
social media site? Why is it important to strategically choose a social media site?
Can these social media sites actually benefit businesses?
How is the relationship between businesses and consumers affected by
the use of social media?

USAGE, CONSUMER RELATIONSHIPS, AND BENEFITS

In order to effectively choose a social media site, businesses must analyze the usage, benefits and the relationship
dynamics when using these platforms. As a result businesses can engage and create a brand presence within a
specific market.
Usage
As shown Figure 1. The social media with the most active users is Facebook followed by LinkedIn, interest, Integra,
and Twitter. When evaluating different media sites before choosing one, a business must look at the size of its users
per social platform. Occupying the highest usage below, Facebook would be the most effective social media to utilize
based off the larger percentage. Businesses must evaluate the usage of each social media site in order to establish
or extend their client base. Marketing and advertising may become more cost effective and easier when choosing a
social media site with a larger audience making it a more beneficial investment for the business.
Figure 1
Social Connection through Media

Source: Pew Research Center, Washington, D.C. 20036

Size Matters
Size matters when businesses are targeting a certain demographic of people .Some businesses create buyer
personas for their customers in which they appeal to a certain group of audience. For example, 42% of online users
for Pinterest are women and 13% are men who would result in women dominated market for products mostly used by
women (Chit wood, 2014). Therefore, Pinterest would be used to market feminine items or products mostly used by
women. Whether its analyzing the audience as whole or only targeting a certain demographic of people, size
matters.

Figure 2
Embedding Buying Behavior
Americans spend more time on social media sites
per day then watching TV. In Figure 2, Americans
over the age of 18 will spend an average of 4
hours and 40 minutes per day on their mobile or
online devices which is 9 minutes longer than
watching television (Ritcher 2013).
Source: eMarketer

With Americans adapting to the always on culture, consumers are always present on their smartphones and devices
24 hours a day which suggest how social media is becoming a part of the social norm. By targeting your feed of
advertisements to catch your audience attention during different times of days whether it be during a commute,
weekends , and late nights or early morning can affect can result in effective marketing of businesses(Cespedes,
2015). Strategically advertise products that will increase their buying behavior.

CONSUMER RELATIONSHIPS
Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual friend
connecting consumers directly with business. Based on usage, Facebook, LinkedIn, Instagram, Twitter, and Pinterest
are the most popular social media sites where businesses can have direct communication with their customers:

Facebook. One billion (Folger) people are active on Facebook every month (2013). Using Facebook creates a high
level of engagement with customers. With over 70% of adults actively using Facebook, this social media site provides
a more intimate setting for its users where posts and personal messages can be sent or read to by close friends and
family. Businesses who want to establish a personal relationship with their customers may utilize Facebook to remain
interactive and present in their customers lives.

LinkedIn. LinkedIn serves as a social media site that connects businesses with other businesses (b2b). In order to
effectively utilize LinkedIn, Businesses must use this platform to networking. Businesses seeking industry specific
information from users is also makes LinkedIn suitable for certain types of Businesses. LinkedIn enables businesses
to not only connect with consumers but to connect with other business. Businesses whose market are educated and
high income individuals may effectively use this media platform (Manafay, n.d).

Instagram. Serving as a visual social media site for businesses who want to market a specific image, Instagram
focuses on lifestyle, food, and fashion. Businesses who have products that follow trends and markets that target a
specific demographic of people will be able to effectively this social media platform

Twitter. Twitter is used as a topic based social media site. Like Facebook, Twitter also gives Businesses more
interaction with customers. Users (Chitwood, 2014) posts multiple times a day, creating a self-conscious image on the
web. Twitter is used as another form of democracy (Chitwood, 2014). Businesses who choose Twitter as their social
media platform are really interactive and conscious within the community

Pinterest. Businesses who seek to market a specific item take of advantage of Pinterest because of the easily
categorized content that are searched multiple times a day (Chit wood, 2014). Similar to Instagram, Pinterest also
focuses on trendy food, DIY designs, and travel.
4

Sustainability or Adaptability
The goal of social media is to developed sustainable relationships with customers while adapting to changes. Building
relationship can only be attaining by choosing the most effective social media site or changing to an even more
sufficient media platform.
Figure.3
Relationship Goals between Businesses and Social Media
In figure 3. 68 percent of businesses decided to increase to other social media platforms such as blogging, YouTube,
Twitter, LinkedIn, and Facebook. 16 percent of marketers decided to stay the same while 2 percent decided to
decrease their social media platforms and 14 percent decided not to utilize social media at all.

Source: 2014 Social Media Marketing Industry Report

The percentages of marketers who increase or stay the same are higher than the percentage of marketers who
decided to decrease or not utilize social media at all. This proves how marketers are willing to effectively use pervious
media platform or adapt to change and increase to another social media platform.
5

Figure. 4

Source:360i. Social Media Apps Image via Shuttershock

Who Uses What?
In figure. 4, teens, wide audience, millennials, early adopters, business people, and recruiters are different categories
of people who use social media. In addition, millions of people are active on social media which leads ways to
extremely high engagement and faster growing audiences.

CONCLUSIONS AND RECCOMENDATIONS

Analysis of the usage, relationships, and benefits of social media sites results to the following conclusions and
recommendations about why businesses should strategically choose social media sites that will effectively utilize their
marketing plan.
1.
2.

Communication is the most vital part of a businesses relationship with consumers. How companies communicate can
either benefit or destroy a businesss brand.
In order to effectively choose a social media site, businesses must analyze the usage, benefits and the relationship
dynamics when using these platforms.

3.

When evaluating different to media sites before choosing one, a business must look at the size of users. , in order to
establish or increase a client base
4. With Americans adapting the always on culture, consumers are always present on their smartphones and devices
24 hours a day which suggest how social media is becoming a part of the social norm.
5. Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual friend
connecting consumers directly with business.
6. Based on usage, Facebook, LinkedIn, Instagram, Twitter, and Pinterest are the most popular social media sites
where businesses can have direct communication with their customers
7. . The goal of social media is to developed sustainable relationships with customers while adapting to changes.
8. In addition, millions of people are active on social media which leads ways to extremely high engagement and faster
growing audiences.
9. The percentage to the same or increase helps proves the benefits of social media.
10. The ability to have brand awareness and immediate feedback will lead to a web based approach in marketing which
is seen in figure.1, figure. 2 and figure.3 to be successful and innovative.

On basis of the research findings, we recommend that businesses evaluate, analyze, and utilize social media
sites and platforms that best suits their marketing plan. The benefits of social media are wider range or audience
and a more direct integration with customers as well as other businesses.

Work cited
Hochhauser, R. (2005). COMMUNICATION IS KEY TO HAPPY CUSTOMERS. Industry Week/IW, 254(13), 30-31.
The Best Social Media Platforms for Your Business. (2014, March 5). Retrieved April 7, 2015, from
http://thenextweb.com/socialmedia/2014/03/05/social-media-platform-best-business/
Is Social Media Actually Helping Your Company's Bottom Line? (2015, March 3). Retrieved April 7, 2015, from
https://hbr.org/2015/03/is-social-media-actually-helping-your-companys-bottom-line?
Implementing A Small Business Social Media Strategy: Introduction | Investopedia. (2013, March 19). Retrieved April
7, 2015, from http://www.investopedia.com/university/implementing-small-business-social-media-strategy/

How to Choose the Best Social Media Site for Your Business. (n.d.). Retrieved April 7, 2015, from
http://www.inc.com/michelle-manafy/how-to-choose-the-best-social-media-sites-to-market-your-business.html
Frequency of Social Media Use. (2015, January 9). Retrieved April 7, 2015, from
http://www.pewinternet.org/2015/01/09/frequency-of-social-media-use-2/
Infographic: Digital Media Use Set to Exceed TV Time This Year. (n.d.). Retrieved April 7, 2015, from
http://www.statista.com/chart/1330/media-use-in-the-us/
Karikoski, J., & Soikkeli, T. (2013). Contextual usage patterns in smartphone communication services. Personal &
Ubiquitous Computing, 17(3), 491-502. doi:10.1007/s00779-011-0503-0