Dynamics of Social Media in the Global Market Place

“Social Media platforms allow easy access to the target market whereby consumers become actively involved and engaged ultimately influencing customer behaviour” (Jones et al.  , 2015). 

Social media, nowadays utilises different avenues for businesses and everyday people to take advantage of.  Some of these include faster communication, marketing and data collection.  These avenues allow businesses to get access to a wider audience and even the global marketplace.  So what are the dynamics of social media and how does it play its role in determining the success or failure of a company? Well there are lots of reasons.  The cost of using social media and the risk of benefits from it.  Also, whilst communication maybe 24/7 online there are some drawbacks to using social media.  Furthermore the benefits of social media through the use of small and big data has changed the way we market our products and ultimately gain competitive advantage over one another. Change is integral to a business’s survival. If the majority of consumers want to move into an online market where they are open to all forms of social media messaging and communication then businesses need to be ready to change, adapt and apply this new technology into their everyday lives. It goes without saying “Build it, and they will come” only works in the movies. Social Media is a “build it, nurture it, engage them and they may come and stay.” – Seth Godin (Lazzaroni, 2014).

Social Media has seen a new era of marketing.  Digital marketing through the use of social media websites is rapidly becoming the new way to market on a global scale.  Although with this comes some advantages and disadvantages.  If we look at the global marketplace and how social media has shaped the online presence for most business’s we cans start to understand just how much companies are pouring their money into social media advertising.  It’s no coincidence why either, the cost comparison of running a TV ad or using Digital Marketing is huge.  “The cost of 30 second television advertisement aired at 7:30 could cost companies between $30,000 and $35,000” (Davidson, 2012).  “In comparison to social media, twitter can cost companies between $1,000 and $4,000 a month and Facebook can cost between $2,000 and $9,000 a month” (Thomas, 2012).  As we move into a more technological world more and more people are using social media.  Some statistics from the Search Engine Journal, found that 71% of organisations use Facebook and 59% of companies use Twitter as a form of marketing (SEJ, 2011).  The statistics show that as we move toward social media and the digital age, more and more social media is exploited for its diverse demographic and efficient communication pathway.  Although Facebook and twitter might be cheaper than say TV ads or even Radio ads, the real investment comes from change.  If we look back on a company and see that they have restructured and reorganised how they sell over the years, changing with trends and moving with the crown and looking at what customers want.  Then they have a much higher chance of being successful.  We live in a dynamically changing world where technology is consistently updating.  “Social media made customer review become more accessible and extensively which can Strong the power of the consumers. when customers engaged in networks of brands like agree/disagree on Facebook, or write comments on site which means social media can make company and customer relationship more close so that can also increase the customer loyalty and endorsement” (Jacqueline, 2014). 

“Folkens wrote that social media brings strategic communicators closer to their audience by utilising the human conditions of listening and responding.  He argues that social media has softened the barrier between the company and the audience” (Folkens, 2011).  Folkens wrote that social media brings strategic communicators closer to their audience by utilising the human conditions of listening and responding.  He argues that social media has softened the barrier between the company and the audience, (Folkens, 2011), making audiences feel as though they are communicating with a company that listens and takes action on their requests.  Social media has facilitated two-way communication as customers can comment on blogs or YouTube videos, like and comment on company statuses and photos on Facebook and tweet companies their feelings about their products.  Social media allows consumers to engage with companies wherever they want, whenever they want, making a company more accessible to its customers.  This means that although information is getting out there faster, there is “increased the potential for complaints and the visibility of this negative outcry” (Royse, 2011).  People can write reviews of products and can negatively affect the brand name just by writing a single bad word.  The problem arises when companies don’t realise how public there message really is, and also who is reading that message.  Another dynamic that can combat this is how fast communication is projected in real time.  If we look at social media and how fast information is getting out there we can see that PR problems can be resolved far more quickly and with less hassle than through traditional methods.  “Social media allows for strategic communication consultants to distribute their message as it happens, keeping their company’s message as up to date as possible with the concerns of their audience.  Communication in real time also allows for companies to tweak and alter their message or image to suit the current trends at that time.  Twitter and Facebook have trending sections on their sites that allow people to see what is popular at the current moment.  When a trending subject is clicked on, it takes the user to all the posts and tweets concerning that subject that is trending” (Cuce, 2014). 


As social media has grown and developed into our everyday lives we see more and more how businesses are trying to pry at our eyes, and ultimately get our attention for a second hoping that we will go out and buy their products. The everyday consumer is learning and understanding the value of these messages but mostly what we do goes unseen. When we talk about social media we think of the website and instant messaging on a global scale, but what we sometimes miss is all the data that flows from the millions upon millions of people clicking and typing there details into social websites. This data is called big data. “Nowadays companies are using smaller data which consists of focusing in on what customers want to buy and understanding their purchasing habits so they can target certain products towards them.  When consumers are faced with significant lifestyle events like having a baby, getting married, or buying a house, they are more open to changing their purchasing habits” (Revis, 2016). Data collection through the use of social media can be seen as strategic investment as it provides the company with a wealth of knowledge about their customers and their interests.

References:

Davidson, D, 2012, ‘Ten, Nine…network count down cost of prime-time spots’, The Australian, 26 March, viewed 7 May 2014, http://www.theaustralian.com.au/archive/media/ten-nine-networks-count-down-cost-of-prime-time-spots/story-fna1k39o-1226309686889

Folkens, D, 2011, 3 Ways Social Media Is Changing Public Relations, Top Rank, online marketing, blog post, viewed 7 May 2014, <http://www.toprankblog.com/2011/02/social-media-changing-pr/>

Henrikson, J. U, 2011, The Growth Of Social Media: An Infographic, SEJ Search Engine Journal, blog post, 30 August, viewed 7 May 2014, http://www.searchenginejournal.com/the-growth-of-social-media-an-infographic/32788/

Jacqueline, I 2014, social media marketing influence customer behavior, viewed 23 March, 2016, <http://www.blastmedia.com/2014/07/30/3-ways-social-media-marketing-influences-consumer-behavior/>. 

Jones, N Borgman, R & Ulusoy, E 2015, Impact of social media on small businesses.  Journal of Small Business and Enterprise Development, 22(4), 611-632. 

Lazzaroni, D 2014, ‘75 Quotes to Inspire Marketing Greatness’, Linkedin,

Revis, L 2016, ‘Social Media Trends’, The Blog, http://www.huffingtonpost.com/layla-revis/social-media-trends-2016_b_8914190.html

Royse, M, 2011, Seven Ways Social Media is Changing PR, Spin Sucks, blog post, 4 April, viewed 7 May 2014, http://spinsucks.com/social-media/seven-ways-social-media-is-changing-pr/