Filsha & Salsabilla

Exploring
Social Media &
e-Business
 Learning Objectives
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14-1 Why Is
Social Media
Important?
Social Media represents online interactions
that allow people and business to
communicate and share ideas, personal
information, information about products and
services.
 14-1a What Is Social Media and How Popular Is It?

Social media represents the online interactions that allow people and businesses to
communicate and share ideas, personal information, and information about products and
services. Simply put, social media is about people. It is about a culture of participation,
meaning that people can now discuss, vote, create, connect, and advocate much easier than ever
before.

79 percent of U.S. adults who use the Internet are active on Facebook, 32 percent
use Instagram, 31 percent are on Pinterest, 29 percent are on LinkedIn, and 24
percent are on Twitter. Among the most popular worldwide are Facebook, which
has approximately 2 billion users, YouTube, which has more than 1.3 billion
users, and Twitter, which has almost 700 million users.
14-1b Why Businesses Use Social Media?

By using social media, companies can share information about their products and services and
improve customer service. Now many companies, large and small, are using social media to learn
about customers’ likes and dislikes, seek public input about products and marketing, and promote
particular products. Unlike social media, traditional marketing messages were top-down because
companies used television, newspapers, and magazine ads to promote their product to a large
audience without any opportunity for feedback. With social media, customers can and do provide
feedback.
 14-2 Discuss how
businesses use social
media tools.
For a business, part of what makes social media so challenging is the
sheer number of ways to interact with other businesses and existing and
potential customers.
Companies are using social media because it allows the company to
● connect with its customers and stakeholders;
● provide another means of customer service;
● provide information that is valuable to customers; and
● engage customers in product development and formulation.
 14-2a Business Use of Blogs
A blog is a Web site that allows a company to share
information in order to increase customers’ knowledge about its products and services, as
well as to build trust. Blogs are effective at developing better relationships with customers,
attracting new customers, telling stories about the company’s products or services, and
providing an active forum for testing new ideas. blogs are also effective for businesses that
are selling to other businesses.

14-2b Photos, Videos, and Podcasts

Today, photo sharing provides a method for a company to tell a compelling story about its
products or services through postings on either the company’s Web site or a social media site.
Videos have also gained popularity because of their ability to tell stories. Entertainment
companies, for example, now traditionally use YouTube as a way to showcase movie trailers.
Podcasts are digital audio or video files that people listen to or watch online on tablets,
computers, smartphones, or other mobile devices.
14-2c Social Media Ratings
Social media enables shoppers to access opinions, recommendations, and
referrals from others who have bought a product or service. This type of
information is available via a social media site and can include reviews
and ratings. Sites for reviews and ratings are based on the idea that
consumers trust the opinions of others when it comes to purchasing
products and services.

14-2d Social Games

Social games are another area of growth in social media.
A social game is “a multiplayer, competitive, goal-oriented activity with
defined rules of engagement and online connectivity among a community of
players." Games are also popular because people like the competition and
social status they can earn through playing social games. For businesses that
create games, it can be very profitable.
14-3 Explain the business objectives
for using social media.
14-3a Social Media Communities
Social media communities are groups of people who share common interests and who want to engage in conversations about issues they consider
important or interesting. People that are part of the networks can also share information and even develop profiles. Individuals in a community can
be called friends, fans, followers, or connections. Popular social networking sites include Facebook (the largest), LinkedIn (for professionals), Twitter,
Google+, YouTube, Pinterest. and many others. There are social communities for every interest, ethnic group, and lifestyle. Different types of social
communities include forums and wikis. A forum is an interactive version of a community bulletin board that focuses on threaded discussions.
Developing social media communities is a way to interact with customers.

14-3b Crisis and Reputation Management

One of the most important reasons for listening to stakeholders is to determine whether there is a crisis brewing. Seventy-
nine percent of companies surveyed in a recent research study believe their company is less than a year away from some
potential crisis. Employees should be trained in social media etiquette and monitor social media sites to see what is said
about the company and its products. During a crisis, companies can use social media to answer questions with carefully
worded posts, reassure the public, and present positive information to help rebuild their reputations. Unfortunately,
companies don’t always handle a crisis in the most positive ways.
14-3c Listening to Stakeholders
Listening is often the first step when developing a social media strategy. By monitoring Facebook, Twitter, or other social
media sites, companies can determine what customers think about their products or services. If a company receives
negative comments, it’s important to respond quickly. Typically, the first step is to admit the mistake and apologize when
criticism about a product or service is justified. A personal response either on social media or a personal contact often
will help resolve a complaint and at the same time restore customer goodwill. It also helps if the customer feels that the
company will take action to correct the problem.

14-3d Targeting Customers

It is especially valuable in targeting the Millennial. Millennial are tech-savvy digital natives born after 1980. Millennial
are also America’s largest generation and now have surpassed Baby Boomers. To reach Millennial, Baby Boomers, and
people that are included in other generations, it helps to identify who the customer is and what characteristics make
the customer unique
14-3e Social Media Marketing
Social media marketing is the utilization of software, computer technology, and the Internet to provide information
about a firm’s products and services, increase sales revenues and improve customer service for a business.” As
companies become more comfortable with social media, we can expect even more companies to use social media to
market products and services to their customers. Today, many companies have been quite successful using social media
marketing not only to develop customer awareness, but also to obtain sales leads and increase actual sales.

14-3f Generating New Product Ideas

Companies can use social media to conduct much of their consumer-based research. Using insight gained from Facebook
or Twitter, for example, allows a company to modify existing products and services and develop new ones. Crowdsourcing
involves outsourcing tasks to a group of people in order to tap into the ideas of the crowd. In some cases, valuable
information can be obtained by crowd voting. Companies can even build communities for specific brands in order to
obtain information and new ideas from consumers.
14-3g Recruiting Employees
For years, companies have used current employees to recruit new employees based on the theory that “birds of a
feather flock together.” The concept is simple: Current employees’ friends and family may prove to be good job
candidates. Social media takes that concept to a whole new level. LinkedIn, the largest social network for professionals,
has been used quite effectively by large corporations, small businesses, nonprofit organizations, and government
agencies that want to recruit new employees.
14-4 Developing a
Social Media Plan
1 Step 1: Listen to Determine Opportunities
As pointed out earlier in this chapter, social media is often used to
“listen” to what customers like and don’t like about a company’s
products or services.
Step 2: Establish Social Media Objectives
2
It is important to use that information to develop specific objectives. For
social media, an objective is a statement about what a social media plan
should accomplish. Each objective should be specific, measurable,
achievable, realistic, and oriented toward the future.
14-4
3 Step 3: Segment and Target the Social Customer Ideally Developing a
A company will have developed a customer profile that describes a
typical customer in terms of age, income, gender, ethnicity, etc. Social
4
Step 4: Select Social Media Tools
A company can use social media communities, blogs, photos, videos,
Media
podcasts, or games to reach potential or existing customers. For Plan
example, if the goal is to recruit college students for college entry-level
jobs, LinkedIn may be a good choice.
5 Step 5: Implement and Integrate the Plan Once
Social media tools have been identified, a company can implement and
integrate the social media plan. Because a social media plan doesn’t
necessarily have a start and stop date, it is different from traditional
advertising campaigns.Some companies, on the other hand, feel that it
is important to have a mix of short- and long-term social media
promotion.
 14-4b Measuring and Adapting a Social
Media Plan

Quantitative Social Media Measurement

Quantitative social media measurement consists of using numerical
measurements, such as counting the number of Web site visitors, number
of fans and followers, number of leads generated, and the number of new
customers. figure.

14-4c The Cost of Maintaining a Social Media Plan

Qualitative Social Media Measurement Based on quantitative and qualitative measurements, the
Qualitative social media measurement is the process of accessing the company may also try to determine if it is getting a
opinions and beliefs about a brand. This process primarily uses positive return on its investment in social media. After
sentiment analysis to categorize what is being said about a company. reviewing results for social media activities against pre-
established benchmarks, it may be necessary to make
changes and update the plan to increase the
effectiveness of the social media plan.
14-5 Defining E-Business
 14-5a Organizing 14-5b Satisfying Needs 14-5c Creating
e-Business Resources Online e-Business Profit

a business must combine human, material, Two basic assumptions : Business firms can increase profit
informational, and financial resources. This is true of
1. Internet has created new costumer needs either by :
e-business, too but in this case, the resources may be
more specialized than in a typical business 2. E-Business can satisfy those needs as well as 1. Increasing sales revenue
traditional ones. 2. Reducing expenses

For example, people who can design, create, and The internet can be used by both
Each source of revenue flowing into a
maintain Web sites are only a fraction of the individuals and business firms to
specialized human resources required by e-businesses. firm is a revenue stream
obtain information

Providing online access to information

that customers want can reduce costs
14-6 Understand the fundamental
models of e-business.

A Business Model represents a group of common

characteristics and method of doing business to generate sales
revenues and reduce expense.
14-6a Business-to-Business (B2B) Model

When examining B2B firms, two clear types emerge. In the first type, the focus
is facilitating sales transactions between businesses. For example, Dell
manufactures computers to specifications that customers enter on the Dell Web site
(www.dell.com).
A second, more complex type of B2B model involves a company and its
suppliers. Today, suppliers use the Internet to bid on products and services they
wish to sell to a business customer and learn about the customer’s rules and
procedures that must be followed. For example like Ford, General Motors, and
Chrysler.
 14-6b Business-to-Consumer (B2C) Model
In addition to providing round-the-clock global access to all
In addition to providing round-the-clock global access to all
kinds of products and services, B2C firms often attempt to
kinds of products and services, B2C firms often attempt to
build long-term relationships with their customers. Often,
In a B2C situation, understanding how consumers behave online is critical to a firm’s success. Typically, a build long-term relationships with their customers. Often,
firms will make a special effort to make sure that the
firms will make a special effort to make sure that the
business firm that uses a B2C model must answer the following questions: customer is satisfied and that problems, if any, are solved
customer is satisfied and that problems, if any, are solved
● Will consumers use Web sites to simplify and speed up comparison shopping? quickly. Most B2C firms, for example, have liberal return
quickly. Most B2C firms, for example, have liberal return
● Will consumers purchase services and products online or end up buying at a traditional retail store? policies and often pay for returning merchandise that the
policies and often pay for returning merchandise that the
● What sorts of products and services are best suited for online consumer shopping? customer does not like. Specialized software also can help
customer does not like. Specialized software also can help
build good customer relationships.
● Are consumers willing to wait for purchases to be delivered, will they pay for next-day delivery, or will build good customer relationships.
they collect online purchases from a convenient pickup site?
14-7 Identify the factors that will affect
the future of the Internet, social media,
and e-business.

Today, most firms involved in the

Internet, social media, and e-
business use a very intelligent
approach to the initial start-up The long-term view held by the
phase and expansion and vast majority of
development. analysts is that the
Internet, social media, and e-
business will continue to expand to
meet the needs of businesses and
consumers.
14-7a Internet Growth Potential To date, only a small percentage of the
global population

Although the number of global Internet users is expected to increase, that’s only
part of the story. Perhaps the more important question is why people are using the
Internet. Primary reasons for using the Internet include the ability to connect with
other people, to obtain information, or to purchase a firm’s products or services.
Of particular interest to business firms is the growth of social media. In fact, the
number of users for social media sites like Facebook, LinkedIn, Google+, Twitter,
YouTube is expected to increase.

To date, only a small percentage of the global population uses

the Internet. In March 2017, estimates suggest that about
3.7 billion of the 7.5 billion people in the world (almost
50 percent) use the web. Clearly, there is much more growth
opportunity.
 14-7b Ethical and Legal Concerns

> Socially responsible and ethical behavior by individuals and businesses on the Internet
are major concerns. For example, an ethically questionable practice in cyberspace is the
unauthorized use of information discovered through computerized tracking of users once
Ethics and Social they are connected to the Internet.
> Some firms also practice data mining. Data mining refers to the practice of searching
Responsibility through data records looking for useful information. Customer registration forms typically
require a variety of information before a user is given access to a site. Based on an
individual’s information, data mining analysis can then provide what might be considered
private and confidential information about individuals.

Because the Internet is often regarded as an unregulated frontier, both individuals and
business users must be particularly aware of online risks and dangers. Malware is often based
on the creator’s criminal or malicious intent and can include computer viruses, spyware,
deceptive adware, and other software capable of criminal activities. Most consumers are also
Internet Crime concerned about fraud. Because the Internet allows easy creation of websites, access from
anywhere in the world, and anonymity for the creator, it is almost impossible to know with
certainty that the website, organization, or individuals that you believe you are interacting
with are what they seem.
14-7c Future In order to obtain more information in the future, both
business users and individuals must consider the cost of

Challenge For obtaining additional information and computer technology. In

an effort to reduce expenses and improve accessibility, some
companies and individuals are now using cloud computing.
Computer Cloud computing is a type of computer usage in which
services stored on the Internet are provided to users on a
Technology, Social temporary basis.
Although the environmental forces at work are complex, it is

Media and e- useful to think of them as either internal or external forces

that affect how a business uses computer technology. Internal
environmental forces are those that are closely associated
Business. with the actions and decisions taking place within a firm.
Internal and External
Forcess That Effect
an E-Business
Thank You !!