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0 Introduction This chapter consists of a brief literature review which forms part of the study about social media. A brief definition of Social Media is presented followed by its marketing impact on Small and Medium Enterprises. A brief overview of the social media tools is also presented and some of the characteristics of Social Media Marketing mentioned. At the end of this chapter the challenges relating to social media marketing are elaborated. 2.1 What is Social Media? Social media are media for social interaction, using highly accessible and scalable communication techniques. Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of usergenerated content." Businesses may also refer to social media as consumer-generated media (CGM). A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value. Social media is the use of technology to co-create, know, like and trust. In general, social media has become an accessible platform for everyone through the internet. Social Media is a word of mouth on steroids and is beginning to morph from a fun and easy way to stay socially connected with friends into a dynamic and interactive way of doing business and practising law. Undesirably, social media has been used as an online tool for drug marketers and recorded 25 per cent of spam email messages which are directed to advertisements medicines.

2.2 The impact of Social Media Marketing on SME’s Social Media Marketing is an innovative, result-driven and cost effective marketing technique used by SMEs to increase their brand exposure and positively influence their sales figures. The impact of Social Media Marketing can be easily understood through lines stated in Oliver Blanchard’s book on marketing, ‘’It does not matter whether you have a Billboard, a magazine ad, an online banner or a social media channel. Impressions are impressions.” 6

Making use of social networks such as twitter assists to keep a constant flow of information to clientele so that you could build brand recognition and customer attraction. The introduction helped to increase the idea of small business strategy as businesses began to expand outside of their local limitations into a lot more regional spectrum and in some situations a nationwide growth. However the regular updating and tweeting of these social networks and many more can prove overwhelming to the uniformed person. With their experience you can create a social media network that will allow you to often update your clients without overwhelming them or yourself. the chance for social networking assist to keep contacts from all over the globe and remain apprised of any conditions or promotions happening with their regular business outlets. As the on-line environment has a huge number of websites. This is why it is essential when you're seeking to incorporate social media networking into your small business plans you use the knowledge and experience of an expert. Social media marketing has a focus on finding consumers and making use of social networks that they often frequent so as to grow a personal relationship outside of the buyer-seller environment. When a company incorporates social media into their small business plans they're taking benefit of a social network which captures the attention of consumers and makes them a part of their client's lives.As technology advances and effect the business environment. When you utilize the marketing potential of Facebook into your small business plans you can become "friends" with your clients and send them regular updates so they're constantly reminded of your business. social media use assists a business stay in regular touch with their clientele and potential clientele in order to increase client awareness and boost brand recognition. Further recognition of the web in reference to social media networks created an even new small business strategy that has assisted a business of any size compete with the larger firms and their million dollar advertising campaigns. it has become extremely hard to find success online. small business strategy has taken on a whole new meaning. In the past small business strategy was focused on the growth of local businesses and looking for clientele in a very small area of coverage. For the client. Social media has greatly impacted the business environment 7 . For the small business strategy. This new potential small business strategy is primarily successful when a business creates small business plans focused on the utilization of social media.

social media allows you to do so before a ready made niche audience and to build authority much faster within a larger established community while you build your own following on your own site. It doesn’t matter if a company is focused on marketing or public relations. sharing information) will make you stand out as a helpful member of the community and make sure others remember you. voting. Sharing 8 . you can show your expertise. • Traffic: Nowadays. Some of the ideas of using social media to see greater success with small business are: • Marketing: Participating in social media is a fast and easy way to market your small business to others in a place online where you are guaranteed loads of traffic and its free. • Branding: Through the information you share in social media. building brand and authority within the community of your choice. Source: Articlesbase by Andrew McCauley 19 July 2011 Today with all the business and business related activities interconnected globally. its products and services. While a business blog can certainly help you do the same. businesses must integrate a comprehensive strategy for growing and retaining customers. This shift in small business strategy represents the greatest opportunity to find business success quickly and establish market dominance.and the client business relationship. To flourish in this environment. wherever they may be. or sales the social web requires that businesses spread as wide a net as possible. Social Media in business is for key stakeholders as social media can turn communication into an interactive dialogue and impact on business practices and processes. Social media is essential for getting the message out about a business. social media should be used first and foremost to get a hold of some of the elusive traffic that can be difficult to capture at first simply by blogging. Just participating in your favorite social media platform (commenting. This means putting a marketable brand in front of the target audience.

Simply. • SEO: Whether the social media platform you use passes search value directly to your Website or not as a result of participation.content or even just a link to your blog via social media can make all the difference in the world in terms of the traffic you can begin attracting almost immediately. Use social media to find out what your audience thinks or to ask them to participate. • Content: Social media is a two way street. In addition to letting you create and share content. At the same time. social media allows you not only to address but to listen to your communities hearing what others are saying about your industry and perhaps even about your business or brand. Search for topics to blog about or news to share with your own social media following giving credit to the originators of the material. Sharing your content or simply links to your site will encourage first visits and then inbound links from the very niche you are targeting and will surely eventually have a positive effect on your Search Engine Optimization. • Crowd sourcing: We have done this ourselves by posting questions in order to gather responses from our community and you can do the same. social media channels can be a great place to monitor the latest news in your industry often from a variety of perspectives. • Research: We mean both market research and data research here. social media allows you to be much more than a passive observer. You can not only share content and give and receive feedback on that content and the content of others but also make connections. • Networking: Of course. decide who to follow and who to make a part of your network and who you should ask to network with you. 9 . You will build better products and services with this input and build community interaction and interest in your business online. of course. it is certain that the visitors you attract including those who may use social media to search for their own content (see below) certainly will. One of the greatest aspects of social media is its social aspect. social media enables you to find content in your industry as well. Social media allows you to make connections not just with those in your industry but with potential customers and those who might refer customers to you.

in general. They are relatively inexpensive and accessible to enable anyone (even private individuals) to publish or access information. Social media are distinct from industrial or traditional media. sharing comments and votes and. participating. less hierarchical. Industrial media. Plus social media makes it easy for others to share your content with their networks gradually building your authority in your niche. It has to do with how engaged those visiting your Website are. whether they share your content with others. news. typically use a centralized framework for organization. and distinguished by multiple points of production and utility. That engagement should transfer to your home site as well and build your community in the process. education.3 Conventional Media and Social Media People gain information. products and services and so on. such as newspapers. refer people in their network to your content. 2. One characteristic shared by both social media and industrial media is the capability to reach small or large audiences. either a blog post or a television show may reach zero people or millions of people. and film. whereas social media are by their very nature more decentralized.• Community: Building community goes beyond traffic and visitors to your Website.. • Authority: Social media helps you gain authority for your content Website and brand by letting you share it more widely and more quickly than you might ordinarily be able to simply by up dating your blog regularly. production. Using social media can help you do much more than simply build traffic on your businesses main Website. however. etc.both industrial and social media technologies provide scale and are capable of reaching a global audience. 10 . for example. which generally require significant resources to publish information. Some of the properties that help describe the differences between social media and industrial media are:  Reach . television. and dissemination. Social media attracts engaged users interested in giving feedback. by electronic media and print media. compared to industrial media.

social media tools are generally available to the public at little or no cost. this feature may not prove distinctive over time. it suddenly became clear that what was governing the infinite monkeys now in putting away on the Internet was the law of digital Darwinism."Tim Berners-Lee contends that the danger of social networking sites is that most are silos and do not 11 . the only way to intellectually prevail is by infinite filibustering. only the participants determine any delay in response). the survival of the loudest and most opinionated.  Usability . some community radios.industrial media. Benkler. TV and newspapers are run by professionals and some by amateurs. Yochai Benkler analyzed many of these distinctions and their implications in terms of both economics and political liberty. Accessibility . In his 2006 book. writing. like many academics. Though community-owned. The Wealth of Networks: How Social Production Transforms Markets and F r e e d o m .  Immediacy . weeks. anyone with access can operate the means of social media production. Under these rules. However. most social media production does not require specialized skills and training.industrial media production typically requires specialized skills and training. Conversely. They use both social and industrial media frameworks. as industrial media begin adopting aspects of production normally associated with social media tools. Andrew Keen criticizes social media in his book Th e C u l t o f t h e A m a t e u r . in theory.the means of production for industrial media are typically government and/or privately owned. once created. social. or even months) compared to social media (which can be capable of virtually instantaneous responses. and technological characteristics of what has come to be known as "social media".  Permanence . However.  Community media constitute an interesting hybrid of industrial and social media. cannot be altered (once a magazine article is printed and distributed changes cannot be made to that same article) whereas social media can be altered almost instantaneously by comments or editing. "Out of this anarchy.the time lag between communications produced by industrial media can be long (days. uses the neologism network economy or "network information economy" to describe the underlying economic. or requires only modest reinterpretation of existing skills.

He also cautions against social networks that grow too big and become a monopoly as this tends to limit innovation. The number of social media users age 65 and older grew 100 percent throughout 2010. He also added that entrepreneurs must be able to choose the appropriate tool before launching on social media networks.1.2 Users on Social Media Sites Dryer (2010) reported that there were around 200 million blogs worldwide.allow users to port data from one site to another.1 Classification of Social Media Sites Social Media can be broken down into five main categories of social media sites namely the Social News sites like Digg. Whereas Brassel (2010) argued that entrepreneurs must distinguish between their targeted audiences before appealing on different platforms. Whereas Spio (2010) said that internet users are growing showing 90% aged 18-29 as compared to 67% from the age group of 30-49 about video sharing. Flickr. Secondly.5 billion visitors in September 2009 for Twitter (600%). used mobile devices in December 2009. In terms of Facebook use Australia ranks highest with almost 9 hours per month from over 9 million users. so that one in four people in that age group are now part of a social networking site. more than 450 million people on the social networking site namely Facebook. the Social Bookmarking Sites such as Delicious and Stumble Upon followed by the Social Networking mostly used by the internet users such as Facebook.S. On the other side. Facebook (210%) and LinkedIn (85%). Moreover. Technorati stands at 12 . internet page views occurred at one of the top social networking sites in December 2009. Reddit and Yahoo Buzz. up from 13. Australia has some of the highest social media usage statistics in the world.Twitter processed more than one billion tweets in December 2009 and averages almost 40 million tweets per day.A total of 234 million people age 13 and older in the U. Through a survey carried out by online competitive intelligence service it can be noted that social media growth continues to skyrocket with 2. Twitter. 2. 27 million tweets for every 24 hours and 1. Lastly. Over 25% of U. Social Knowledge such as Wikipedia and Yahoo Answers. 2. There are various statistics that account for social media usage and effectiveness for individuals world wide. Some of the most recent statistics are as follows: Social networking now accounts for 22% of all time spent online in the US.2 million viewers on YouTube daily.S.8% a year before. Urban Spoon as well as Social Tagging sites like Yelp which falls under same category. MySpace and LinkedIn.1. Social Sharing such as YouTube.

Conversely. Nevertheless Philippines was leading with 83% among the market for social networking followed by Hungary and Poland with 76% for both. Twitter and Facebook users were found to have the highest incidence of fraud.3 Area influencing social media Social Media Increases risk of ID Theft LinkedIn. 2. Marketing in Small and Medium Size Businesses 13 . about one-third higher than the general public.4 Social Media v/s Traditional Media According to a report conducted by Universal McCann on the impact of media which reveals that social media is "becoming a more important part of global media consumption for internet users than some traditional media channels".1. the report also stated that among the top markets for blogging were China with 70%.1. It can be concluded from the report that 57% of internet users are members of social network and significant increase in number internet users watching video clips online since June 2007. online bookmarking service had more than 5 million users and more than 150 million unique bookmarked URLs. Philippines 66% and Mexico with 23% who wrote a blog. year as well with public social media profiles. There is also a rapid growth in the consumption of RSS which jumped from 15% to 39%. 18% shared their phone number and 63% shared their high school whereby many companies used personal information to verify identity. It had been summarised that 68% of users shared birthday information among 45% sharing the month. And social media users who check in with GPS-enabled devices reported fraud rates that were about twice the average.133 million and within a single 24-hour period 900. Javelin (2011) also found that smartphone owners also experience a higher incidence of fraud with 7% experiencing ID fraud. Finally. Furthermore. YouTube served more than 75 billion video streams to around 375 million unique visitors and online photo sharing site Flickr host more than 3. Google+. Even there exist cultural differences among different nations. date. although Javelin emphasized there is no proof of direct causation.6 billion user images. 2. the use of social media is growing worldwide.000 blog posts are being created.

A solid public relations strategy that utilizes speaking engagements. yellow pages directories. and perhaps user generated content that is 14 . outdoor (roadside billboards). press releases. television. along with its immediacy and 24-hour presence lend intimacy to the relationship small businesses can have with their customers. A Web site can provide significant marketing exposure for small businesses when marketed through the Internet and other channels. it can be time intensive to advertise on enough sites to garner an effective reach. The relational nature of social media. Many small business owners find internet marketing more affordable. Google Ad Words and Yahoo! Search Marketing are two popular options of getting small business products or services in front of motivated Web searchers. but with the long tail of the internet. they must work on marketing their business every day. Advertising on niche sites can also be effective. Some popular services are WordPress. print. Social media has proven to be very useful in gaining additional exposure for many small businesses. while making it more efficient for them to communicate with greater numbers. email marketing. events and sponsorships can also be a very cost-effective way to build a loyal following for a small business. Tons of relevant.Finding new customers is the major challenge for Small business owners. Joomla and Squarespace. radio. blogs have become a highly effective way for small businesses to position themselves as experts on issues that are important to their customers. marketing approaches are related to social media and this lead to the 4 Cs of marketing. feature stories. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service. This can be done with a proprietary blog and/or by using a back link strategy wherein the marketer comments on other blogs and leaves a link to the small business' own Web site. Small businesses typically find themselves strapped for time but in order to create a continual stream of new business. Successful online small business marketers are also adept at utilizing the most relevant keywords in their site content. 2. word of mouth. Many small business owners use Facebook and Twitter as a way to reach out to their loyal customers to give them news about specials of the day or special coupons and generate repeat business. In addition to the social networking sites. customer referrals. education-based.2 Characteristics of Social Media Marketing Nowadays. Common marketing techniques for small business include networking. and internet. Facebook ads are also a very cost-effective way for small businesses to reach a targeted audience with a very specific message. Creating a business Web site has become increasingly affordable with many do-it-yourself programs now available for beginners.

From the following definition the equation below can be deduced: Content + Context + Connection + Community = Social Media Marketing Social media marketing can be used as a channel for promoting a product for a company or SMEs whereby users can edit. products.filtered. aggregated. It blurs the line between media and audience. Openness Most social media services are open to feedback and participation. Finally. a political issue or a favorite TV show. and delivered in a context that makes it useful for people who are starving to make connections with people. all communications and discussions on social media marketing are done online and the main objective is to make users talk also called as user generated. 15 . Community Social media allows communities to form quickly and communicate effectively. such as a love of photography. generate and share valuable online information. Communities share common interests. comments and the sharing of information. it specified that social media marketing is participatory whereby users must participate so that it becomes realised. and brands they can build a community around. There are rarely any barriers to accessing and making use of content password-protected content is frowned on. which share most or all of the following characteristics: Participation Social media encourages contributions and feedback from everyone who is interested. Conversation Whereas traditional media is about broadcast (content transmitted or distributed to an audience) social media is better seen as a two-way conversation. Awareness (2008) stated that social media marketing includes features like to create a strong relation between brand and customers for a better communicate known as multidirectional dialogs. Secondly. They encourage voting. Social media is best understood as a group of new kinds of online media.

resources and people. engage in social media marketing.S. Each level will be discussed as follows: [Source: Social Media for Small Business.2. 66% of marketers saw a rise in search engine rankings due to social media marketing.1 Social Media Marketing Facts 53% of Twitter users recommend companies and products in their tweets. 20% of all website visitors to company sites come from social media. 2.2. Followed with the use of RSS technology 16 .2 Future Entrepreneurs All small business owners should consider the hierarchy as shown in Figure below to make sure that their business succeeds in the future before launching directly into the socialmarketing tactics. making use of links to other sites. 57% of companies have acquired customers through LinkedIn. comment and blog. $3. 2 out 3 people that follow a brand on Twitter will purchase from that brand. 2.1 billion will be spent on social media marketing in 2014. B2B spending on social media marketing will rise 67% over the next 3 years. 75% of small businesses in the U.Connectedness Most kinds of social media thrive on their connectedness. 74% of B2B companies aggressively using Facebook in social media marketing. Version II] The foundation of the pyramid is blogging which is a doorway to all other social marketing whereby internet users can read.

Social Media Tools Used by the Inc. plurk and FriendFeed since they allow users to connect.which is a helpful tool for republish as well as create new content. 500 (% of Respondents) Social Media 2009 (%) 2010 (%) 2011 (%) Facebook 61 71 74 LinkedIn 73 Twitter 52 59 64 YouTube 45 Blog 45 50 37 Online Video 36 33 24 Text 15 Mobile Apps 14 Podcast 12 16 6 MySpace 6 1 [Source: UofMass. companies. There had been a slight change in social networking category towards specific platforms like Twitter. texting.3 New Social Media Tools Rule In 2007. 500 companies. Twitter. engage and doing quick search. LinkedIn. RSS also helps with the aggregate and filter the content around the subject. The reduction in the use of wikis can be explained due to a shift from 17 . many respondents argued that they were satisfied with Twitter (86%) and Facebook (82%). Following this trend of the upcoming next three. From these statistics given above. Facebook. Finally. Fourthly. Thwirl. and Fortune of the 500 companies correspondingly. LinkedIn. 500 companies which were blogging compared are 8% and 19% respectively. the comparison between Fortune and Inc. This new record illustrates clear the reduction of blogging among the Inc. video blogging. message boards. the social bookmarking can act as an open way for new channels to generate extra search traffic. downloadable mobile apps and Foursquare while noting the reduction in the use of blogging. 2. podcasting and MySpace. YouTube. Thirdly there is the social search which an important element for small business owners to participate and manage reputation of their enterprise. micro which contributed to the success of business whereby this has become an essential of the social media mix. The Table below shows figure from a survey about the social media tools adopted by the Inc. A related example of such platforms can be Twitter. the figures reveal that half and 23% were blogging for Inc. The next level in the hierarchy is the Social Networks such as Facebook or MySpace which can help as a business tool. MySpace. it can be deduced that the incorporation of new platforms and tools including Facebook. in 2010. January 2012] Despite the elimination of some effective tools. Dartmouth Center for Marketing Research.2. on the top of the hierarchy. and Foursquare.

statistic shows that 9% of all online visitors were on Facebook and spending on average time 20 minutes for occurring of 1 in every 5 page views.07 was leading the number 1 ranked website over google.collaboration tool rather than communication or engagement tool. Visit share by Age (12 weeks ending 28/01/2012) Age Group Website Visitors 18-24 25-34 35-33 45-54 55+ Online Population 16% 21% 20% 19% 24% 18 . it had been observed that YouTube. Facebook. In January 2012.com were returning visitors in January 2012. January 2012] 2. Successful Social Media Tools Used by the Inc.500 (% of Respondents) Percentage (%) of Respondents 2009 2010 2011 91 93 96 88 86 92 91 87 93 90 90 88 87 82 81 86 84 54 85 82 89 71 80 75 68 36 0 Media Tool Message/bulletin boards Blogging Mobile Apps Online Video LinkedIn Discount sites YouTube Twitter Texting Facebook Podcasting Foursquare MySpace [Source: UofMass.com with 7.com users are highly loyal to the website.3 Facebook in Figures for US market The US market. 96% of visitors to Facebook. Facebook. on 13 March 2010. Study on the gender group reveals that 57% female remained online while compared to 43% of male online population.com with a percentage of 7.03%. Dartmouth Center for Marketing Research. From the recent 2011 survey. Facebook is meant to be the most search term and Facebook-related terms account for 14% of the top search clicks. corporate texting and LinkedIn were among the new adapted as well as the use of discount sites like Groupon and downloadable mobile apps has significantly increased.

430 visitors against YouTube’s 223.com ranks in the top two websites in every market except China. Facebook released more than 60 new apps for Timeline.166. Facebook. The idea is that the new offerings will inspire users to visit company pages and interact with and share their content even more. Ending in.” said Grant. With this new implemented feature by Facebook businesses will be able to contact fans directly as well as include ability to pin important posts to top of Timeline for a week and exchange private messages with users. 2. the income group also was recorded as shown from the table above. Baidu Zhidao and Renren are the dominant social networks. placing it behind only Google Brazil in market share. “Overall.999) Website Visitors <$30M 30-59 60-99 100-149 >150 Online Population 22% 31% 26% 14% 8% Facebook 23 32 26 12 6 Twitter 24 29 27 12 9 LinkedIn 15 24 27 19 14 Google + 22 30 28 12 7 Source: Hitwise. this is a positive move by Facebook. In January. Facebook changed to Timeline feature on 29 February 2012 with brand pages on the social network which will allow visual oriented format to highlight entire history as well as show more current updates. It also recently surpassed Orkut.795 visits online. and a good opportunity for brands to show off their roots -. Facebook. Moreover. capturing almost 12% of all visits in that market. February 2012. Internationally.591 visits and Twitter’s 15.732.com’s largest footprint is in Canada. where Sina Weibo. The figures showed that Facebook had obtained 499.something that might actually be of interest to fans. February 2012. Timeline for brands offers the potential for marketers to better showcase products and services and connect with fans.Facebook Twitter LinkedIn Google + 18 30 13 29 23 21 19 20 22 19 17 12 13 17 25 32 19 20 17 16 Source: Hitwise.4 Too much advertising is Digital suicide 19 .949. Visit share by Income (12 weeks ending 28/01/2012) Income Range($ X000.

advertising must be tailored to customer’s personal interests (26%). 66% of the American and British (Brits) online consumers had already claimed that they feel subjected to excessive digital advertising and promotions. contextually relevant to what they are doing (21%) and specific to their location (19%). 33% of 18-24 year olds are most amenable to being targeted as frequently as once a week or more. The DAAR in 2012. such as the social networking site. However. PC.According to the Digital Advertising Attitudes Report (DAAR) from Upstream and YouGov illustrates that 20% of American and 27% of British consumers online would stop using a product or service. 14% of US 18-24 year old would complain about that company to their friend on Twitter or Facebook. if they are subjected to too much advertising. 55% of US consumers do not wish to be targeted more than once a month. February 2012 69% are happy to receive marketing and advertising on mobile. Furthermore. to make US iser respond positively to marketing. February 2012) % of Respondents Response US UK Would unsubscribe from a brand’s promotions if they were too frequent 66% 66% Would respond negatively to future messages from that brand 28 37 Would stop using brand’s product and service 20 27 Would protest on social media sites 11 10 Source: Upstream/YouGov. Responses to Digital Advertising Overload (% of Respondents. Generally. says that 20% of US consumers would stop using a company’s products or services entirely as a result of receiving too many advertising messages whereas only 28% would be less likely to respond positively to that company in the future. 20 . tablet or MP3 player.

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