The Social Networks’ Opportunities for Companies


Term Paper, 2015
9 Pages, Grade: 1,3
Anonymous

Excerpt

inhalt

Abstract

1 Introduction: Another mental World - Social Networks

2 Why should I use Social Networks for my Company?
2.1 Employment Opportunities
2.2 Promoting New Products
2.3 Having Contact with Customers
2.4 Saving Costs
2.5 Giving Information about your Company

3 Survey: Social Media Risks and Rewards

4 Conclusion

1 Introduction: Another mental World - Social Networks

Social media marketing is becoming more and more relevant for companies (Wyrwoll, 2014). Today people live in a world of electronics. If they are traveling by train for example they don’t use the time to read a book, speaking with other people, thinking about life or looking out of the window. Most travelers have headphones in their ears and look at their mobile phone ̽ rather smartphone. They are physically sitting in the train but their thoughts are in another dimension ̽ in an electronic world. This phenomenon means a lot of people cannot see what happens outside, they cannot see all the advertisements on the wall or the posters at the window. Companies have to advance their marketing actions, they have to go the same way as their target groups. Especially if the target group contains young adults or teenagers. The majority of them spend around 5 hours a day online. That’s why advertisements must be visible on smartphone screens. It is not only about advertisement.

The companies have to increase their businesses exposure in people’s mental world, the electronic world. The world where all these people are connected, where they speak and listen to each other and where they exchange their experiences: social networks (Weber, 2009).

Social networks are a web-based service (Cross, & Parker, 2004). In these virtual communities people can share, exchange and create pictures, texts and videos. The content is user-generated (Wyrwoll, 2014). This means that a lot of information are shared to users almost instantly. So as a member of a social network there is not only the task to create content but the classification of information a user shares (Boyd & Ellison, 2007). There are a lot of social networks, for example: Twitter, Facebook, LinkedIn, Bebo, Xing, Plaxo, Youtube.

2 Why should I use Social Networks for my Company?

Social networks have exploded in the recent years, we are at a point where it is almost impossible to ignore them (Weber, 2009). Companies are having to use them as a primary marketing tool. Many managing directors are afraid of the risks that social networks hold, for example negative storms. They often forget how many positive opportunities they provide. In the following lines you can find examples of the largest opportunities for companies in social networks.

2.1 Employment Opportunities

A company which is using social networks can find the right employees faster. The job offer can reach more people in social networks than in newspaper or job sites (Boyd & Ellison, 2007).

The target group and people who are interested in your business can find your job offer faster because they may have already liked or followed the company’s page before, so they can see the job offer immediately. A great example is LinkedIn, every user gets an e-mail when there is a job offer in a chosen industry. So the job offer is seen by many people almost immediately (Tech Ranch Austin, 2015).

Furthermore people can see the offer who currently aren’t interested in finding a new job, but this is an advantage because these people give the information to other people who are looking for jobs. Sometimes people read the job offer who wouldn't usually be interested but their interest grows because this job offer persuades them. Using this service a company would gain more applicants than without social networks.

Facebook, Twitter, Xing and many other networks are good platforms for exchanging

information. So you are able to give some more information than in normal job offers (Vescia, 2014). This additional information can be really important for people who aren’t sure if they are qualified enough or interested for a job. So you can catch more prospective applicants. Another strong advantage is time saving. On one a company can reach many more applicants and in the other hand they can quickly communicate with them and exchange information. A company's social network profile can also give a prospective candidate impressions of working life (Vescia, 2014). Possible employees can imagine which tasks they would carry out in the company, what the company stands for and how the working atmosphere is (Kaplan, 2009).

Finally companies that are using social networks are portrayed as innovative, young and dynamic. For applicants it is more attractive to work for a company like this.

2.2 Promoting New Products

With social media companies have an unique opportunity to promote new products, services or brands. Everyone who is ͆following͇ or ͆liking͇ a business page can see all the news they are posting. This way information can be shared with every person who is interested in your business immediately (Tech Ranch Austin, 2015). Furthermore the people are able to share videos, pictures and texts. If your post (picture, video, text) is for example extremely emotional the users want to show it to their friends and put a post on their own page. That is an opportunity to spread new products as fast as possible (Cross, & Parker, 2004).

Companies can reach a lot of people with social networks. This high number couldn't be reached with print media or radio spots. Furthermore, people trust their peers and because of the need to conform they will like products more when their friends do. In social networks you can see when your friends ͆like͇ a page and may become motivated to visit this page themselves (Kaplan, 2009).

2.3 Having Contact with Customers

Customers are most important for companies. A company couldn't exist without customers. They purchase products, that generates revenue, then companies can produce new products and make a profit. Businesses need to have a focus customers and they need to be heard. Facebook, Twitter and co. emerged because people want to talk, they like to exchange messages with each other. Online customers are more likely to be honest and say what they are really thinking (Tech Ranch Austin, 2015). The best and easiest way to get honest feedback is via social networks because it is quicker and cheaper than traditional methods. If companies are open to accept a customer’s opinion it is a great chance. People like to leave their wishes, suggestions, feedback and this in invaluable for any company. Businesses can study and improve to get more customers and improve loyalty (Kaplan, 2009). A stronger relationship is built with them. If businesses are too afraid of getting negative statements they should remember that they have the opportunity to manage conversations in a positive manner. A little secondary effect: the more people write on a business page in one social network the more people give their attention to a company (Tech Ranch Austin, 2015).

2.4 Saving Costs

Customers do the advertising. When someone is willing to share videos and pictures they make an advertisement with every action they do for example liking a post or writing something. So there are no costs. Social media marketing is extremely inexpensive. Companies only need to have employees to manage the networks, that is all.

[...]

Excerpt out of 9 pages

Details

Title
The Social Networks’ Opportunities for Companies
College
Fresenius University of Applied Sciences Köln
Grade
1,3
Year
2015
Pages
9
Catalog Number
V439382
ISBN (eBook)
9783668791404
Language
English
Tags
Social Networks, Business Writing, Academic Writing, Social Media Marketing, Social Media, Social Media Risks, Social Media Rewards, Rewards, Risks, Facebook, LinkedIn, Xing, YouTube, Twitter, Use Social Media
Quote paper
Anonymous, 2015, The Social Networks’ Opportunities for Companies, Munich, GRIN Verlag, https://www.grin.com/document/439382

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