The Evolution of Businesses through Social Networks By: Alejandra Zeron
Social Network Social Networks: web-based services that allow individuals to connect on the basis of friendship, common interests or ideas. First social network: Sixdegrees.com (1997) Sixdegrees allowed users to create a profile, list their friends and surf the Friends list. Latest social network: Twitter (2006) Twitter: it is a micro-blogging, social messaging, event coordinator, business tool, news reporting service and marketing utility.
Businesses before and after Social Networks…
Outbound Marketing Marketing strategy where marketers put their message out far and wide hoping that it resonates “with that needle in the haystack.” Old style way of promoting a product, company or image focused on finding the consumer. Outbound techniques include: trade shows, seminar series, internal cold calling, telemarketing, billboards and radio and magazine advertisements.
Ineffectiveness of Outbound Marketing More creative ways to block them out: caller id, spam filtering, Tivo and Sirius satellite radio The cost is 60% higher compared to that of using inbound marketing.
Inbound Marketing Marketing focused on getting found by consumers through the use of social networks such as Twitter, Facebook, Linkedin and Youtube. Why use social networks to market a business? Less expensive: inbound marketing only involves creating content and talking about through blogs, Twitter, Facebook or any other social network. 2. Better Targeting: the people that click through your site have already self-selected themselves as potential customers and are more likely to buy. 3. It’s viral: as soon as someone expresses interest in your content, their friends are invited to do the same- the power of social networking.
The Power of Social Networks Through the use of social media and search engine optimization, Gary Vaynerchuck was able to transform a $4 million New Jersey liquor store into a $50 million-a-year business in only two years. He launched in 2006 the Wine Library TV. Small businesses: If you have a great product and skills to communicate with your customers, you can compete as if you had the biggest advertising budget.
Top Social Networks used to Market Facebook: requires businesses to create a page to promote their products or events. LinkedIn: allows companies to create their own profile, add networks of connections, ask consumers about the types of business they are looking for, get referrals from their network and join and participate in groups that will attract public exposure. Twitter: companies will post about their accomplishments and distribute links that take back to corporate web pages, press releases and other promotional sites. Youtube: businesses can create “how to” videos in support of their products or advertisement videos of some aspects of their business. Digg: gives members the opportunity to discover, select, share and discuss. Therefore, submitting company blog sites or informational support sites can bring attention to companies.
Creative Hotlist Network that connects talent, companies and services. Four basic functions: post job listings or resumes, find a job, build a portfolio or promote a business. Enables users to find individuals, companies, resources for any aspect of the creative marketplace. Individuals can post resumes, portfolios or job-wanted listings online. Companies can post information about capabilities and services. http://www.creativehotlist.com/
Conclusion Social networking sites provide opportunities for businesses to gain exposure, advertise their products and services, network with potential customers and suppliers and recruit people or partners to improve their business goals. Immediate and interactive way in which companies can get their content or message out quickly and get feedback quickly.
ROI: return on investment B2C: businesses serving consumers with products or services. B2B: commerce transactions between businesses. http://www.youtube.com/watch?v=ypmfs3z8esI&feature=related