Running head: Social Media
Social Media and Global Business
Cheryl L. Medley
Dr. George Darko
September 30, 2012
Information overload: the knowledge, ideas, and creativity that spin around us daily. Television broadcasts information on weather and sports while lifestyle programs show us how to cook and exercise. Radio stations flood us with music and entertainment news. Businesses that succeed have learned how to bundle all this information and share it so that they cut through all the noise and met the challenge head on from being invisible to being visible. Social media can help reveal that information, know-how, and talent to the world and spread your ...view middle of the document...
In a world where “Google” provides buying information and consumers trust brand recommendations found on Facebook and Pinterest, businesses have to ready to meet today’s needs (Schleeter, 2012).
Twitter continues to be the most popular social media platform used by global businesses with an average increase of corporate following of 180%. Sixty-two percent of Fortune 500 companies have corporate Twitter accounts and of these Wal-Mart, Exxon, Chevron, Conoco Philips, Fannie Mae, General Electric, Berkshire Hathaway, General Motors, Bank of America Corp, and Ford Motors consistently post on their Twitter accounts (Barnes & Andonian, 2011). With the growing Twitter trend and close to ¾ of all global companies having a Facbook page today and the growing Twitter trend, 70% of corporate pages now respond to wall comments. In addition, the first half of 2012 showed an increase in multi-platform use with almost half of all global companies having a Google+ page and ¼ having a Pinterst account (Smith, 2012).
Source: beingyourbrand.com 2012
Survey results from the IMB Institute for Business Value analysis found that initially, business to business companies (B2B) were less likely to be involved with social media than business to consumer companies (B2C); this variance is beginning to close with 76% of B2B companies now having an account on at least one social media site. The challenge for B2C companies is finding the key to what customers care about and then creating a social media experience that can deliver (Baird & Parasnis, 2011). Interacting with customers and observing conversations gives B2C companies a better perspective on what customers want (Chui, 2012). B2B companies on the other hand use social media more as a way to keep their brand name out there and to collaborate among employees to improve productivity. A study performed by the Center for Marketing Research at the University of Massachusetts Dartmouth reported that 90% of respondents said social media was important for brand awareness and company reputation, 88% said important for generating web traffic, and 81% for lead generation (Barnes& Lescault, 2012).
With social media now being adopted in emerging markets such as China, India, and Brazil, companies feel the pressure to get in on board or be left behind. Today, customers want to communicate via social networking and those companies still trying to reach out through traditional measures will be out of touch. “In 2010, Delta Airlines launched a “social media ticket window” on Facebook, allowing customers to book a flight without having to go to Delta’s Website. Delta indicated Facebook is used by more customers while flying than any other website, making it a “natural launching point” for its initiative” (Markiewicz, 2010).
For companies wanting to integrate social media with customer relationship management (CRM), social CRM is the answer. The street corner business office of yesterday has today become a...