The objective of this paper is to evaluate the increasing prevalence of social media marketing in businesses of varying sizes. It will explore the advantages and disadvantages of employing social media marketing for entrepreneurs. Furthermore, it will assess two prosperous businesses that have incorporated social media marketing into their approaches. Finally, the paper will forecast the influence of social media on business in the upcoming decade, emphasizing crucial skills individuals should obtain to capitalize on these developments.
In the 21st century, businesses have widely embraced social marketing. The convergence of marketing and technology has revolutionized society, offering individuals continuous access to a variety of media through their mobile devices. One notable illustration of this phenomenon is the Pepsi Refresh Project, a viral marketing campaign that spanned one year. Throughout this time, consumers created videos to benefit their communities, enabling Pepsi to promote its products without investing in advertising expenses. By going viral, these videos helped Pepsi economize on advertising costs and redirect those funds elsewhere. Apart from cost savings, companies that adopt social media marketing can also enhance brand exposure, attract more website visitors, potentially increase sales, and acquire new customers. Consequently, investing in social media marketing has become essential for companies aiming to expand their brands.
Social media marketing has its advantages and disadvantages for business entrepreneurs. On the positive side, it can result in higher sales, reduced advertising expenses, improved business awareness, and a better understanding of consumer desires. However, there are also drawbacks such as the time-consuming nature of social media marketing, competition from other social networking sites, challenges in user-friendliness, and difficulties in effectively communicating the company’s marketing strategy to consumers.
A case study on Pepsi Co.’s use of social media marketing highlights both benefits like cost-cutting in advertising and increased web traffic and publicity; as well as drawbacks including rivalry with Facebook and Twitter and a shift of attention towards celebrities and individuals featured in viral videos rather than focusing on Pepsi itself.
Despite the potential disadvantages for Pepsi, the company has been able to gain more customer insight with the help of social media marketing compared to without it. Marketing has evolved over the years due to social media and marketing concepts. The term “marketing concept” refers to a companywide customer orientation with the goal of achieving long-term success (Boone, L.E. & Kurtz, D.L. pg.355). Social media marketing starts with the customers. If Pepsi Co. had not launched their Pepsi Refresh Project, they would not have been able to engage with consumers in a viral manner. Pepsi has gained customer insight through viral videos and online interactions between customers. By allowing customers to provide their input, Pepsi Co. was able to analyze individual customer preferences and needs, gaining insight on how to improve future products.
Two businesses that have successfully utilized social media marketing are Dominos Pizza and Navy Federal Credit Union. Dominos Pizza has leveraged social media to offer convenient online ordering, run special promotions, and provide a step-by-step order tracker. Founded in 1960, Dominos Pizza strives to be the best pizza delivery company globally. The company has embraced social media marketing and consistently ranks first among the top five food companies in terms of online transactions. Dominos also provides a mobile ordering app that is accessible to 80 percent of smartphone users. Since implementing their social media marketing strategies, Dominos Pizza has experienced significant success, with 30 percent of orders being placed online. As a customer, I believe their most effective social media marketing strategy is the pizza tracker, which keeps customers informed about the status of their order from the moment it is placed to when it is out for delivery. Another business that has embraced social media marketing is Navy Federal Credit Union.
NFCU caters to the banking needs of various military branches and the Department of Defense. They have effectively used social media marketing by providing their members with mobile banking and online account access. The mobile banking app enables customers to securely and conveniently monitor their account activity from anywhere in the world (NFCU, 2013). As a member of Navy Federal Credit Union, the app has been invaluable to me in times of need. For instance, when my card was declined while trying to make a purchase at a retail store, I immediately used the NFCU mobile banking app on my mobile device to access my account and discover fraudulent charges made by an unauthorized person. Social media marketing has proven advantageous for Navy Federal Credit Union by offering online account access features. This feature is accessible around the clock and offers consumers the ability to transfer funds, pay bills, order checks, view electronic statements for the past 36 months, and make loan payments online, thus providing free, fast, and convenient service (NFCU, 2013).
Looking ahead, I foresee that social media will continue to have a profitable impact on businesses worldwide. This will be achieved through the utilization of various platforms such as blogs, bulletin boards, chat rooms, viral videos, and online advertisements as part of marketing techniques. To stay successful as the world progresses, social media marketing must be adaptive and relevant. It will also need to enhance its targeting strategies by assigning dedicated staff to different social markets. Businesses should consider expanding and establishing a specialized social media department to seize the opportunities presented by these changes and contribute to their potential growth.
