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Microblogging Tools Such as Twitter Have a Useful Information Function in Business.

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Microblogging tools such as Twitter have a useful information function in business.

‘The Internet is becoming the town square for the global village of tomorrow’ (Gates 2003). Over the past decade we have witnessed this statement slowly coming to fruition. We are in the age of social media, networking, and more specifically in the business world; microblogging. How has this changed business so far, and what are its prospects for the future? I will be looking at its wide ranging effects, positive and negative, and plan on evaluating the story so far. I intend to analyse the applications for the small and large businesses, including the use of SMM (social media marketing) whilst looking at the pitfalls that people and companies have, and will continue to, come across.

Many small businesses are taking advantage of the social networking scene by using it as their primary medium for updating their customers. It presents a unique opportunity to keep connected to customers, wherever they may be. Not only does the consumer benefit through keeping in touch with the stores products and availability, but they may also take advantage of ‘twitter only’ promotions. According to a recent survey of 1000 users of social networking, ‘44% of those following brands on twitter said they did so because of the exclusive deals the firms offered to users’ (Economist, 2010). Straight away it can be seen how the ever important business-consumer relationship is working. In return for free, willing advertisements, consumers are offered perks and deals for their continuing support.
However, it should be noted that the promotions aren’t the sole reason businesses are gaining such a vast following in microblogging. Getting their community involved in the business agenda, making them feel part of the company and giving them the illusion of decision making in the company are all techniques employed by businesses that connect to consumers via social media. I personally see it as ‘delegation to consumers’. At the end of the day, it’s the consumers who are affected, and thus affect the success of the business. They are arguably the most important stakeholder, and an article from EContent recognises that fact, and supports my view. The article looks at the enormously successful business Starbucks. The “My Starbucks Idea” invites followers of the blog to suggest new ideas which are all taken seriously and given feedback. The community even helps decide which ideas should be pitched and which should be removed (Levack 2009). Such an involving process aids in creating an ‘attached’ consumer base and thus greatly improving brand loyalty.
Furthermore, we must also consider the potential financial savings through social media marketing. In terms of the net gain, especially for the smaller businesses, it can often result in very minor costs – virtually free in some cases. It can prove to be extremely efficient if executed correctly. An article from publishers weekly explains that the reason it is called ‘viral marketing’ is that ‘the best social media functions like a virus. It spreads easily, embeds itself seamlessly into hosts and exploits a few critical individuals to achieve global exposure.’ It also looks at how sites like twitter have broken down conventional news cycles and brought about real time information spreading (Sterne 2009). It should be noted that as fast as your viral marketing can spread, controversy and slanderous discussion can spread quicker. One example being the ‘vigilante’ site www.united.com, set up to facilitate the coming together of disgruntled United Airline passengers (Harris 2009). It serves to emphasise the importance of the social media revolution – all companies big and small should take its power seriously, and moreover, fully embrace it into their marketing strategy.
The issue is change. Adapting to this new wave of social media is what particularly large companies are reluctant to do. There are unwritten rules to adhere to when using SMM and most of these stem from the vast differences between traditional marketing and SMM. The core idea is the shift from brand control, to consumer control. You should recognise the differences and know that, ‘in order to participate in both it is important to understand the difference between the two’ (Farley 2010). On consequence of this shift in marketing behavior, has been a drastic change in the type of worker required. According to a report in Public Relation Tactics (2009), it is PR professionals who are dominating the application of SMM in business, with the need for social media skills ranking as high as the need for traditional media relation skills. Furthermore, the report found that ‘48 percent had hired a PR/marketing professional in the last 12months’ and ‘36 percent plan to hire a PR/marketing professional in the next 12months’ (Public Relation Tactics 2009). It is precisely these types of daunting changes that large companies would rather avoid. Making the jump into the digital world is definitely an expensive, long term investment, and thus decision can’t be taken lightly.

Finally, there is also the potent issue of security. A recent article from the BBC news website (Cellan-Jones, 2010) highlights the danger of phishing scams – and that it can catch out just about anyone. Energy Minister Ed Miliband’s Twitter account was among the stolen and there were embarrassing consequences as a result. Cellan-Jones states ‘It's another reminder that as soon as a service becomes popular, it's all the more likely to become the target for all sorts of scams and viruses’.

You might call them teething problems. Predictably, when the assembly line was introduced by Ford Motor Company it took many years of tweaking and research from the likes of F. W. Taylor before it became as perfected as it is today. Microblogging is no exception. Although we live in exponential times, this does not mean we can avoid or overcome the problems of the evolving business world immediately. But as I have discussed, the benefits in the long run will outweigh the inevitable problems of having this new path to the consumers. Whether large businesses choose to seize this opportunity may define the difference between their varying successes.

995 words

References

Cellan-Jones, R., 26.02.10. Embarrassment on Twitter.
<http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/02/embarrassment_on_twitter.html>, [accessed 14.03.10].

The 2009 Digital Readiness Report: Public relations leads social media engagement at most organizations, survey finds, (2009). Public Relations Tactics [online], 16(9), p5.<http://web.ebscohost.com/ehost/pdf?vid=2&hid=6&sid=5d68a3af-4de5-4d68-9319-aa068b80eba2%40sessionmgr11>, [accessed 16.03.10].

Farley, A., 2010. BEFORE BOOTING UP. ABA Bank Marketing [online], 42(1), p24-31. <http://web.ebscohost.com/ehost/pdf?vid=5&hid=6&sid=9f892908-325b-4447-ba09-627ead4f8264%40sessionmgr4>, [accessed 16.03.10].

Gates, B., 2003. Full reference not found.

Harris, L. & Rae. A., 2009. Social networks: the future of marketing for small business. Journal of Business Strategy, 30(5), p24-31. <http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/2880300503.pdf>, [accessed 17.03.10].

Levack, K., 2009. Tough Times Call for Social Measures: Marketing With Social Computing Tools. EContent [online], 32(1), p10-11. <http://web.ebscohost.com/ehost/pdf?vid=2&hid=6&sid=bd27fb2a-0444-43e9-86e1-51746b3fb5f5%40sessionmgr13>, [accessed 16.03.10].

A peach of an opportunity, 2010. Economist [online], 394(8667), p13-14. <http://web.ebscohost.com/ehost/detail?vid=1&hid=6&sid=70410c7a-dd5c-42ea-b39a-c70e6deeb96e@sessionmgr10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=47815129>, [accessed 15.03.10].

Sterne, R., 2009. CREATING YOUR VIRAL LOOP ON TWITTER, Publishers Weekly [online], 256(40), p24-25. <http://web.ebscohost.com/ehost/pdf?vid=2&hid=6&sid=1dd943ad-3856-4cd1-975d-c8efb18f5a64%40sessionmgr10>, [accessed 14.03.10].

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