Social Media Impact on Business

Abstract:

Social media offers an opportunity to connect and interact with your customers, to promote your brand and drive traffic to your website. Getting involved in social media creates an opportunity for more face to face interaction which can help in building business and also fun at the same time. On the basis ratings given to their products by other customers, more customers get influenced to buy the product if the rating is good. This is beneficial to the company.Social media sites such as blogs and social networks allow people to form connections with other users and brands and share content such as messages, news, videos and photos. Sites such as Facebook, Twitter and YouTube, blogs, LinkedIn, Google+ have experienced novel growth over the last few years and are some of the most talked about destinations on the web. The purpose of this research is to understand the impact of social media on how companies market their business. 68% of companies are already successful in business. 80% companies combine both traditional and social media. 84% companies want to approach the social media, 2.55 billon users of social media. So we can easily attract and contact them. Almost 46% web users are addicted to purchase online. Our 1^st hypothesis answers that 68% of the companies that are dependent on social media are successful in their business.

Key words: Business opportunities, social media, business performance, marketing.

Introduction:

Social media is a part of marketing. It makes cool interaction with the customer and also it easy to convey our information to customers, for example, in Facebook we can easily reply for their messages and also satisfy their needs, this will make the marketing strategy. When we respond to their problems we can understand about the company issues and thus it helps to improve their business as well as possible. And also people are happy when the company will reply because some people do not see advertisements, they like it when we contact them personally through text message. In social media when people see more likes, page views and comments, and it becomes the word of mouth. They also interest to view the business. When we provide the services based on the customers they more likely to buy the product. Social media not only enhances company’s name but gives what the customers expect.Social media will help to connect with the new customers.Some of the small firms do not realize the importance of social media in marketing their business. They consider it to be an expense that doesn’t yield them anything.But in today’s technical and competitive world if a company has to sustain in the market, it is important to adapt to new changes.

Literature review:

Prof. Sandeepbhanot (2012) in his paper “a study of social media impact on company performance” social media can be defined as an instrument that helps to communicate and interact like T.V, newspaper, radio, technique, web-based and mobile. First, business process which will transform their relationship with customer. Secondly, how company can protect the power of social media keeping in mind of pitfall (danger place). Andreas Kaplan and MechaelHaenlein (2010) defined social media as “a group of internet based application that build on the ideological and technological foundation of web 2.0, which allows the creation and exchange of user generated content. Business may also refer to social media as consumer generated media (CGM). Martin smiths (2012) “the impact of social media on business performance” aims to better understand the social media environment and the impact of common social media tools used in practice. They analyze a case and assess how business managers and IT managers in a successful social media based company evaluate this impact. Aula, Pekka (2010), in his article, focuses on the threat and risk of social media to the reputation of business” it says the events where it involves the influence of social media and how publicity can give negative impact to the reputation of company. It notes on the most popular and interesting social media services based from the corporate perspective which include Facebook, My Space and Twitter. Bruhn manfried et al (2012) in their study titled “are social media replacing traditional media in term of brand equity creation? “Trying to investigate the relative impact of brand communication on brand equity through social media as compared to traditional media. In juxtaposition of different industries aims at:  investigating both communication instruments has an impact on consumer based equity comparing the effect size of this two communication instrument: and separating the effect of firm created and user generated social media communication. Duttasoumitra (2010) in his article on social media strategy in Harvard business review says that social media are changing  the way we do business and how leaders are perceived, from the shop floor to the CEO suite.  But whereas the best business are creating comprehensive strategy in this area research suggests that few corporate leaders have a social media presence say, a face book or LinkedIn page and those who do not use strategically. Today’s leaders must embrace social media for three reasons. First they provide a low cost highly accessible plat form on which a personal brand can be built, and also communicates our identity within and outside the company. Secondly they allow engaging rapidly simultaneously with peers, employees customer and the broader public in order to leverage relationship, show commitment to a cause, and demonstrate a capacity for reflection. Third, they give an opportunity to learn from instant information and unvarnished feedback.

Objectives:

To study how business use social media give an opportunity to connect and interact with the customer.

To study how social media improves the business performance.

To study how the social media has impacted customers.

To study how use of social media will increase sales.

Research methodology:

This research is based on the secondary research methodology; we want to know how much social media is used for the business. We take the information from websites like proquest, Google, LinkedIn, quora and also literature review will help to clearly understand about research topic.

Social media for business:

In the 2016 marketer’s guide says social media networks are fantastic resources for business for promote the market and it say the social media users are around 2.55 billion. This is our own interest to use, and also when business will promote their advertising it will directly reach our current and new customers. Doesn’t mean your business should be on every network. It’s important to choose the social networks and also work best for the business as well as possible. Social media helps to learn more about the market for better business.

Facebook:

Facebook is the biggest network on the web, both in terms of name recognition and the total number of users. The 2016 market guide says 1.55 billion active users. Facebook is great social network for connecting people form the all over world with the business. 70% of the business were contact the customers through the Facebook.

YouTube:

Beginner’s guide says use YouTube for your business and also it says nearly 85% of adults were consider themselves a regular YouTube users. It easy to use, especially all social signals makes YouTube is an important part of social media for marketing strategy. The video and new videos even help to attract new subscribers they were enjoy watching and it’s taken their interest to business.

Twitter:         

67% of twitter users are like more to buy, but 37% users will purchase what brand they follow. Business says over 90% customer will get their brands by seeing discount and promos, and also they follow five or more brands.

LinkedIn:

LinkedIn is the most professional of the social network, over 135 million business used for professionals worldwide. It is largely focused on business to business connection and also big part of marketing strategy. In here easy to optimize personal details as well as company page on LinkedIn to engage with the target of customer

Pinterest:

Pinterest have 83.8% of luxury brands in presence and also 90% of US online use for retailers.Pinterest uses are not just looking the creative on the network; they are also ready to buy. Compare to other social media pinterest pins prices get 36% more likes.

Instagram:

Instagram categories by luxury data is 67%, luxury auto 60%, quick services restaurant by 53%, clothing 51%, TV 42%, beauty 39%, retail and consumer merchandise 33%, travel or leisure 24%, food or beverages 23%, automotive and social media news publishing were taken same place 21% and financial service taken 12% in Instagram% of brands post one or more photos per week to their Instagram accounts.

Hypothesis:

1.      We want to find out if all the businesses realize the importance of social media. Hence we can write the following hypothesis:

H1: Social media is important for their business.

2.      We need to see social media give an opportunity to connect and interact with the customer. Hence we can write the following hypothesis:

H1: Social media gives an opportunity to connect and interact with the customers.

3.      We want to check if social media actually increases the business. Hence we can write the following hypothesis:

H1: Social media increases their business.

As secondary data says in literature review Prof.SandeepBhanotresearch wise 68% of companies are already successful in business. 80% companiescombine both traditional and social media. 84% companies want to approach the social media.

As we already mentioned, there are2.55 billon users of social media. So we can easily attract and contact them. 

As per our observation, almost 46% web users are addicted to purchaseonline. Our 1^st hypothesis answers that 68% of the companies that are dependent on social media are successful intheir business.

Observation:

Form the secondary data

In 2015 survey says 38% of female and 62% of male will use the social network for the business purpose. And also it says between the ages 35 to 44 especially for men were more use; least users are between the ages of 18 to 20. Social networking is the top online activity in US, with the average American spending 37minuts per day. The 46% of web users were purchase their purpose in social media. The statics trends say social media adoption of top brands like Facebook-99%, YouTube-97%, Google+-70%, pinterest-69% and instagram-59%. The social media use their business to growth 8 out of 10, 3 in 5 new customers by using social media. The business to business marketers invest in social media to 83% for increase their brand, 69% for increase web traffic and 65% to gain their market insights.

The top reasons for people follow bands on social media like promotion and discounts, latest products information, provide customer service, entertaining content and ability to offer feedback.

Altimeter group defines the social media use for the business like planning is the 1st stage for the business, planning stage use 6% form the social media.

Scope:

On the basis ratings given to their products by other customers, more customers get influenced to buy the product if the rating is good. This is beneficial to the company.

Conclusion:

Coming to the conclusion part this research says almost all companies are dependent on social media. As it is an easy way toconnect with the customers and also increase their business. They not only concentrate on their sales growth but also want to satisfy their customers by maintaining good relationship.And most of the companies that use social media are successful. So the social media best of best to business.