The Effects of Social Media on Traditional Marketing

The Effects of Social Media on Traditional Marketing and Advertising Social media is not new. Facebook has been around since 2004, YouTube since 2005, and Twitter in 2006. What is new is how social media sites like Facebook, YouTube and Twitter are affecting the way businesses market their products and services. Never before in our history have consumers been able to communicate so effortlessly with each other and with the businesses they frequent.

Never before have businesses been able to interact and react to customer feedback so quickly and efficiently. However, just because businesses have the ability to use social media for their marketing and advertising efforts, does not necessarily mean they should. This paper intends to answer the question of how social media has affected the way businesses market their products and services. This question is significant not only to the business, as it directly affects not only their profit, but also their brand, their image, and their reputation.

It is also significant to consumers, because as a consumer you will be able to see how you have the power to shape a company’s products and services, as well as shape a company’s image and reputation. No longer can a company run an advertisement on television or radio promoting how ecologically friendly they are and assume people are just going to believe them. 10 years ago that might have worked.

Now, consumers can research to see if that company is in fact ecologically friendly and if they are not, consumers can start a Facebook group, a Twitter profile, a YouTube channel, and endless other social media profiles in order to spread the word about the company’s false or misleading advertising. The reverse is also true. If a company creates an amazing quality product which solves a consumer’s need at a fair price, that company may have to do very little traditional advertising as consumers would spread the word about the products through their vast social networks.

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Social media has forever changed the relationship between business and the consumer and this relationship affects the way businesses market their products and services. In order to see how social media is defining the way businesses have traditionally marketed their products, it is helpful to look at case studies of multiple businesses and social media marketing experts. This paper will center on multiple different businesses and how they are using social media effectively to market their products and services to consumers.

According to “Corporate reputation in the era of Web 2. : the case of Primark” published in the November 1, 2009 issue of the Journal of Marketing Management, Brian Jones, John Temperley, and Anderson Lima draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they answer how companies, specifically Primark, position themselves on the internet in order to build relationships, control their image, and build their brand and reputation to indicate that the new era of company reputation is built not only by the company, but rather by both the company and the consumer.

According to the authors, “the new rules for engagement on the social web are explored in relation to how they contribute to, damage, or improve corporate reputation and brand image. ” (Jones 927-928) What these new rules mean is that, “management of corporate reputation is a two-way, top down and bottom up process. ” (Jones 928) This means that not only are companies trying to portray a certain image through social media, but that also consumers are projecting their own images on to these companies through social media as well.

This information is useful because it shows how social media allows consumers to shape a company as well as how companies can use social media to shape public opinion. According to “Marketing in a Hyper-Social World” published in the September 2010 issue of the Journal of Advertising Research, Francois Gossieaux, and Edward Moran draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they study the results of a survey of several hundred companies using online marketing in order to determine the best practices for those advertising strategies.

The authors ascertain that social media marketing is only as effective as the prevailing psychological factors in which social media works. These factors are inherent in human communication, not only on the internet, but in the real world as well. The authors state that there are communities of people using social media and that “these communities often thrive because the members primarily are drawn to one another.

The importance of person-to-person affinity – and the ability to interact with these other humans – typically trumped the role of the sponsor’s goods or services or the presence of other features in the online communities. ” (Moran 232) What the authors are saying is that social media is a new tool in order to bring similar consumers together and that if a company wants to be successful in social media marketing, they must concentrate on the human connection rather than their product or services.

According to “Social marketing meets interactive media” published in the 2011 issue of the International Journal of Advertising, Ronald Hill and Nora Moran draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they seek to resolve the dilemma of how models of social marketing have not been easy to implement or analyze effectively. They assert that companies must face opportunities and challenges in implementing social media or otherwise lose their target customers of new and younger generations.

The authors propose that a great deal more study and research need to go into how to successfully implement social media, however their research states that, “overall, studies examined indicate that greater levels of interactivity, feedback and encouragement, customisation, and clarity and support are fundamental components of successful programmes. ” (Hill 829) What the authors suggest is that social media allows consumers to interact with each other and with the companies they buy from, and these basic human form of interaction is what makes social media so successful.

According to “Social Media ROI” published in the December 2010/January 2011 issue of Marketing Management, Robert Duboff and Scott Wilkerson draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they focus on finding a solution which will help them measure a return on investment for implementing social media and whether or not to invest in social marketing. The authors put forth and interesting question as to who actually is in control of a brand with the advent of social media.

The peer-to-peer aspect of the Internet, which has been made much more efficient through social media, has prompted the debate about who owns a brand. Some commentators and marketers maintain that consumers, users and the public now own every brand, given their ability to use social media to: laud or criticize the brand and immediately communicate their experience or opinion to everyone they know; send links to websites, video or to articles and information, etc. ; and create and post content. Duboff 34)

The idea the authors are putting forward is that consumer are able to control a brand and the perception of that brand because of the immense power of social media. According to “Marketing on a Shoe String” published in the Winter 2012 issue of Marketing Health Services, Ann Marie Gothard and Kate Sotiridy draw from the work of multiple authors from multiple publications. Using the multitude of resources the authors draw from, they discuss the marketing strategy of Mount Sinai Medical Center in New York City.

They discuss how Mount Sinai determined that traditional media would not work for targeting their market and instead opted for using a grassroots approach which included the implementation of social media. The authors show evidence of how using social media effectively was able to increase the percentage of clientele who were exposed to Mount Sinai Medical Center. While using a specific social media campaign, there was, “an 83 percent increase in Web traffic, coupled with a 42 percent increase in call volume [which is] substantial at any cost. And for a very low cost, it is remarkable. (Gothard 15)

The authors here are able to use a case study to show how social media marketing can be used as an effective tool and for a minimal cost. According to “Evolution of Blogs as a Credible Marketing Communication Tool” published in the June 2011 issue of Journal of Case Research, Mohit Maurya draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author discusses how a two way communication between consumers and corporate brands are being shaped through the use of blogs.

The author presents case studies from different companies who have successfully and unsuccessfully used blogs to communicate with consumers. The pace of evolution and adoption of internet has facilitated the development of Consumer Generated Media – CGM or user generated content on the cyber world, which has compelled the marketers to rethink their marketing communication guidelines…Consumer Generated Media has begun to prove itself as an outstanding tool for not only social networking, but also as an effective interactive communication medium in the realm of business. Maurya 71)

The author proposes that as consumers, we are able to control the messages we receive and that companies need to recognize these channels of communication if they are to be successful in their marketing efforts. According to “Social media etiquette: A guide and checklist to the benefits and perils of social marketing” published in the September – December 2010 issue of the Journal of Database Marketing and Customer Strategy Management, Matt Ramsay draws from the work of multiple authors from multiple publications.

Using the multitude of resources the author draws from, the author summarizes lessons learned from the successes and failures of social networking as well as compiles a list of best practices for social networking. According to Ramsay, “businesses that succeed in social media are those who maximize their customer service levels through listening and responding to what people are saying about their brand. ” (257) Ramsay is again solidifying the fact that social media is a two way process in which the consumer and business have an equal stake in forming how marketing will take place and whether or not it will be effective.

According to “Social media in branding: Fulfilling a Need” published in the August 2011 issue of the Journal of Brand Management, Jack Yan draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author looks at how new media can have an impact on branding. Yan shows how user connection and interactivity are important. “It is, therefore, necessary for brands to build a connection with users and fostering a sense of belonging through the engagement itself. (Yan 690) According to “2011 Social Media Marketing Industry Report.

How Marketers are Using Social Media to Grow Their Businesses” published in April 2011 for the website SocialMediaExaminer. com, Michael A. Stelzner draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author surveyed over 3300 marketers with the goal of understanding how marketers are using social media to grow and promote their businesses. Stelzner, in compiling his survey, was able to determine the benefits of social media marketing. The number-one advantage of social media marketing (by a long shot) is generating more business exposure, as indicated by 88% of marketers. ” (Stelzner 5) The more exposure a business has, the easier it is for consumers to talk about it and spread the word to their peers. According to “Social Integration” published in the November/December 2011 issue of the Journal of Property Management, Karen Altes draws from the work of multiple authors from multiple publications. Using the multitude of resources the author draws from, the author focuses on the integration of social media into business.

The author ascertains that social media is a tactic rather than a strategy, which should be used in all aspects of marketing, public relations, and communications. “However, social media is different from other communication tools you may already be using. It is participatory, and is as much about what your customers, tenants and clients are saying about you and your properties as what you are saying to them. ” (Altes 60) The author is again reinforcing that social media is effecting advertising in that marketers are not only able to speak directly to consumers, but that consumers are also able to speak to companies and marketers.

Social media has significantly affected the way businesses and consumers interact with each other. It has been shown how important having a two way conversation is in order to implement and manage a company’s brand and reputation. This is significant because it is important to know just how much power we have as consumers. Until the recent advent of the internet and social media, traditional advertising and marketing was a one way conversation. A company advertised their product or service and the consumer was just forced to believe them.

Now, consumers are able to provide their own voice and have a say in what they believe. This is essential for companies to understand because now they have to not only provide products and services, they need to communicate those products and services with consumers without being false or misleading, otherwise these companies will not be in business very long. Works Cited Moran, Edward, and Francois Gossieaux. “Marketing In A Hyper-Social World. ” Journal Of Advertising Research 50. (2010): 232-239. Business Source Premier. Web. 6 May 2012. Hill, Ronald P. , and Nora Moran. “Social Marketing Meets Interactive Media. ” International Journal Of Advertising 30. 5 (2011): 815-838. Business Source Premier. Web. 6 May 2012. Duboff, Robert, and Scott Wilkerson.

“Social Media Roi. ” Marketing Management 19. 4 (2010): 32-37. Business Source Premier. Web. 6 May 2012. Jones, Brian, John Temperley, and Anderson Lima. “Corporate Reputation In The Era Of Web 2. 0: The Case Of Primark. ” Journal Of Marketing Management 25. /10 (2009): 927-939. Business Source Premier. Web. 6 May 2012. “Marketing On A Shoe String. ” Marketing Health Services 32. 1 (2012): 12-15. Business Source Premier. Web. 6 May 2012. Maurya, Mohit. “Evolution Of Blogs As A Credible Marketing Communication Tool. ” Journal Of Case Research 2. 1 (2011): 71-90. Business Source Premier. Web. 6 May 2012. Ramsay, Matt.

“Social Media Etiquette: A Guide And Checklist To The Benefits And Perils Of Social Marketing. ” Journal Of Database Marketing & Customer Strategy Management 17. /4 (2010): 257-261. Computer Source. Web. 6 May 2012. Yan, Jack. “Social Media In Branding: Fulfilling A Need. ” Journal Of Brand Management 18. 9 (2011): 688-696. Business Source Premier. Web. 6 May 2012. Stelzner, Michael A. “2011 Social Media Marketing Industry Report. How Marketers are Using Social Media to Grow Their Businesses. ” SocialMediaExaminer. com. April 2011, Web. 16 March 2012 Altes, Karen. “Social Integration. ” Journal Of Property Management 76. 6 (2011): 60. Business Source Premier. Web. 6 May 2012.

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