I was searching on internet articles about relationship between social networks and business, because I want to know, how social networks can be (and already are) used for marketing. So I came across this video on Youtube (it will take you 4 minutes for watching :)
Video is about Socialnomics, the word which is composed from two words: social + economics. And is describing that social media can make positive ROI (return of investment) and the payment is almost free. I think that social networks are good for different brands and are new channel for marketing. All the "big" companies are making the best of social networks like Facebook, Twitter, Netlog, Youtube etc (check this site about report of engagement of different US brands; currently the winner of engagement is Starbucks). But is this the future? Does that mean that all brands will have more and more precise campaigns for selling or does that mean that brands will finally become listening to consumers and adjusting to them?
I have positive and also negative opinion about this kind of marketing. Positive about that kind of engagement is that consumers have more and more information about brands, they can also feel more connected with them and they have feeling that companies care about them. But I think that kind of marketing is not done for better selling (this is just old thinking) but for better recognition (we all know Starbucks don't we, but have many of us drink it?). Companies must be friendly with consumers and make new social network with them. And I think that they are doing this very successfully.
But my personal reserve is about personal data (people do not realize how many personal information give on internet and what others can do with them). Socialnomics can allow companies that they get data about consumers and they get this data free. If traditionally they had to pay to certain marketing research agency today they can collect (if they have resources) it on their own and free. And the most problematic thing here is, that consumers do not realize that.
But I feel that socialnomics is the future and can bring so many positive things not only to companies but also to consumers. And it would be interesting to know opinion about this kind of marketing from scientific point of view. So what do you think? Is socionomics positive or negative?
Video is about Socialnomics, the word which is composed from two words: social + economics. And is describing that social media can make positive ROI (return of investment) and the payment is almost free. I think that social networks are good for different brands and are new channel for marketing. All the "big" companies are making the best of social networks like Facebook, Twitter, Netlog, Youtube etc (check this site about report of engagement of different US brands; currently the winner of engagement is Starbucks). But is this the future? Does that mean that all brands will have more and more precise campaigns for selling or does that mean that brands will finally become listening to consumers and adjusting to them?
I have positive and also negative opinion about this kind of marketing. Positive about that kind of engagement is that consumers have more and more information about brands, they can also feel more connected with them and they have feeling that companies care about them. But I think that kind of marketing is not done for better selling (this is just old thinking) but for better recognition (we all know Starbucks don't we, but have many of us drink it?). Companies must be friendly with consumers and make new social network with them. And I think that they are doing this very successfully.
But my personal reserve is about personal data (people do not realize how many personal information give on internet and what others can do with them). Socialnomics can allow companies that they get data about consumers and they get this data free. If traditionally they had to pay to certain marketing research agency today they can collect (if they have resources) it on their own and free. And the most problematic thing here is, that consumers do not realize that.
But I feel that socialnomics is the future and can bring so many positive things not only to companies but also to consumers. And it would be interesting to know opinion about this kind of marketing from scientific point of view. So what do you think? Is socionomics positive or negative?
Interesting post, Tanja!
ReplyDeleteSocial networks definitely make fundamental changes that transform relations in marketing industry. Traditional marketing techniques are loosing power; instead there is increasing trust in individuals. If there is some Facebook event or post, it is more likely that I respond, if some of my friends will sent me an invitation, than if some company send it. In my opinion, recommendations from friends are more powerful than all other marketing techniques.
Main positive thing about social networks and marketing is fact that communication is now controlled by a society, because top-down communication is becoming less popular, while bottom-up rumors are increasingly influential. For consumers this kind of marketing is much closer, for business is cheaper but quite demanding for successful implementation. I share your opinion about personal information online, but I wouldn’t generalize so much. Of course not all, but more and more people aware about issues with personal information online.
Best,
Maja
I appreciate your comment and I also agree with you. But although I think that people really does not realize how much data they leave online. Maybe we does not know this because we can not see real consequences. But I think this question is important not only in marketing world but also in context of public opinion (do you remember when Slovenian guy was locked up after American agency track him down because he was sending some delicate mails just for fun). What is more valuable in this case: world safety or freedom of speech?
ReplyDeleteAlmost the same question can be asked in marketing context. But there we know that data about potential consumers are the most valuable. For the end of my answer I think that we reconcile oneself to this idea of giving personal data. For everyday user of internet this is no longer an issue it is reality.