Introduction to Social Networking in Business

Discuss about the Literature review of Advantages and Disadvantages of Social Network in Business.

Advertisements and marketing strategies of businesses have changed rapidly in last few decades. Reaching the consumers has become easier as compared to earlier with the help of new technologies and internet. Social media is one of those platforms that can be utilised for business to expand their operation through tools and applications present in networking sites. At present there are many social sites like Twitter, Google+, Facebook, LinkedIn, etc. that are used by business managers to get in touch with their customers directly. Social networking not only promotes B2C only but B2B types are also enhanced. Many organisations get connected with vendors and agencies through social media who further makes campaigning and contracts for selling the company’s products. Therefore a whole networking channel is created in business without making much expenditure. Getting feedback from customers allows companies to make further development in their product and customers also feel contented with quick responses made by corporate (AT&T Intellectual Property, 2008). With this feature, consumers treat advertisers as a group of united individuals and not just only a corporate entity. Business entities on the other hand use online trading in their marketing strategy to reach their targeted consumers irrespective of geographical or cultural barrier. Although this emergence of new technology has provided with many opportunities, disadvantages related to it brings to a conclusion that social networking may not be suitable for all kind of business. Organisations who fail to understand the drawbacks of social networking or methods to prevent falling into its pitfalls are the ones who realises adverse affects of social networking in business (Popova, n.d.). Therefore study about pros and cons are necessary before implementing social networking in business.

Social media has become an integrated part of today’s business world and many organisations benefits through it. Looking from business perspective, social media marketing has provided with many opportunities to the companies in promoting their brand, service or product.  With the help of internet connections and social media sites, people actively take part in engaging socially with each other. However, being clear about the concept is significant. Social media has provided businesses with advantages or not has been studied by many researchers which will be reviewed in this research paper. Therefore, to find out advantages and disadvantages related to social networking in business, this paper will make research on current business trends along with effects of social networking on them.

Advantages of Social Networking in Business

In order to analyse the social networking effects over businesses i.e. whether they are advantageous or disadvantageous to them, this research paper will make a detailed study on social networking trend in business. Along with it, this paper will review the related sources and study made by researchers to find research gap in it

Overview

Social media marketing is extensively used by business firms as it proves to be one of the most cheapest and effective tools in marketing. In other words, social media can be said that it is one of those weapons that are easily available for promoting businesses globally. The basic purpose behind implementing social networking is that it generates ideas and knowledge about current trend and practices along with forming relationship with consumers (Mutuku, 2017). After all, business main motive is to satisfy end users that can help in generating more sales. By communicating with customers, brand awareness is implied but then improving search engines are also necessary. Innovation and techniques can be used in social networking by developing web pages that acts as a self introduction page of business in front of users. Many corporate even make investments in developing their web pages attractively so that more traffic is created. Whether any business is small or big, advertisement has become mandatory without which generating sales become difficult (Traughber, 2012). Earlier televisions, radio and newspapers served this purpose but nowadays with increasing involvement of people in social sites, implementation of social networking has become necessary in business. Whenever a message is posted in social site, quick responses are made and while information is shared with each other, it automatically serves as advertising in very short period for business firms.

Brand awareness and brand exposure is one of the most advantageous feature of social media which the reason behind implementing social network in business. Brand exposure happens whenever a customer uses company’s product or service through advertisement or through at least any of the five senses. Social media plays an important role here as new brands get fostered within less time period.  For brands that are already present in the market, social media helps them in expanding their business (Copp, 2016). Large number of social media channels is present but the word of mouth facility provided through social networking has provided with new mission for the companies. Interacting with customers generates social bonding with them and thus brand promotion is made with much ease. While promoting brands, online reputation of the firms also enhances. With augmented brand reputation, sales also increase and thus prove profitable for the firms. Customers on the other hand get to know more about the products by looking at pictures uploaded or detailed information given in websites. By reading reviews of experienced customers also influences buyers for making purchases on those products that are positively considered by others (Anon., 2011).

Targeted Advertising

With millions of users in networking sites, targeting desired customers becomes easier for companies as they can easily make out location or culture of users through search engines. Targeted customers here means those that are sure about making purchases from the website of particular company whereas retargeted customers are the ones who have visited and not made any purchases. People who search for products online shares their information unknowingly that later become advantageous for companies in making their list of targeted and retargeted customers. Actually the main purpose behind creating web pages and blogs is to drive traffic only for companies to utilise those data’s for making further advertisements to them via emails or messages. Search Engine Optimisation (SEO) is an important term with which website traffic is generated through online visits and searches.

Social media channels also provide huge revenues by making more members and drive targeted visitors to look into company’s websites. There are many techniques involved to increase website traffic that can make thousands of users visit web sites every day. Another way to engage more people is to make leads in social sites like Facebook and Twitter. Gaining more followers online can help creating brand recognition among followers while chances of generating new ones become probable (Cooper, 2017). To keep more people engaged, companies need to give regular information and respond to their critiques and questions regarding products so that their bonding remains firm. Generation of competition is also seen in networking sites in which products and brands of companies are closely watched by competitors. By making a view on blogs and websites about trending products and services, new business developers can utilise information of successful products and thus proves advantageous to them. By making analysis of present market, business organisations can calculate their targeted sales and can make strategies accordingly (Arca, 2012).

On the blogs and websites of companies, customers leave feedbacks and suggestions that can be used by companies in developing their products according to customer preferences (TDK Technologies, 2017). Communicating with customers can give opportunity to businesses by educating customers about uses and extra benefits of their product or service. Many customers even make negative comments for product or service which can be responded by company’s responsible teams so that their anger gets diminished by apologising or making repairs for it. For example, if a customer buy’s electronic from online website and if it turns out broken can infuriate the customer. The negative comment made by the customer in social sites can damage company’s reputation. On the other hand, if the company reacts to the comment positively by replacing the broken piece with fresh one, the entire fiasco may turn to be an opportunity. Since the customer becomes happier, making good comments in social sites may attract more customers while observing responsible nature of the company.  Therefore to make maximum use of social networking, companies have to remain alert while getting negative feedbacks (Maaki, 2016).

Improved Online Reputation

Another advantage social networks have is that they are cost effective and easy to use. This feature of social networking has made many small organisation involved in it since their budget for marketing does not get affected while making advertisements and marketing in social networking sites. Maintaining public relation is also possible in social networking. Special team who can respond in calm and composed manner are appointed by firms to interact with customers. Every customers posses different nature and at that time making correct choice of words becomes important. Since social sites are visible to many people at the same time, responding in composed manner becomes necessary or else negative comments can spread within no time (Ciprian, 2013).

From B2B perspective, social networking proves very beneficial in business. Making new clients who can sell products to end users makes selling process more efficient. Also many organisations that have to make bulk purchases of raw materials can provide their requirements in social sites. Getting connected with suppliers or buyers enables business in effective manner without wasting much time in making physical visits. In large corporations and multinational companies, social networks have proved to be very beneficial (DeMers, 2014). By making video calls and online conferences, their travelling expenses along with time is saved that can be used in other work. Earlier people used to travel for business meeting but nowadays social networking has reduced their needs to travel physically. Job placements and applications have also increased through social networking sites where job applicants can get information about vacancies in firms. Organisations on the other hand can verify job applicants through social sites about their preferences and work experiences. Therefore an affective channel is created for organisations as well as job seekers (Fernando, 2012).

Social media is the tool that is extensively used by businesses to reduce interaction gaps whether it is with customers or with employees within organisation. By sharing data and information, users provides motivation for business owners as they feel connected with people and to serve in ethical manner becomes significant. At the times of crisis, social media can prove advantageous to gain sympathy and condolence from users by explaining reasons behind the crisis. Many big organisations uses this technique to prevent their brand image from customers view point as if they make direct interaction, visitors might support at the times of difficulties (Baruah, 2012).

While recognising overwhelming response towards social networking media in business, it can be said that no action comes without threat. Issues related to social networking are not only due to social sites but also due to people handing them. Business that is affected from adverse affects of social networks often loses their reputation among public along with realising decrease in sales. With that it can be said the companies who implements social networking into their business must make research of bad impacts of social network to protect themselves from falling in its prey. Image is everything in business as it is earned with investing lot of time and money. Reputation that has build in long years can get devastated within no time and with few bad remarks (AdamsMott, 2018). This becomes worse if negative remarks are posted in popular social sites like Facebook and Twitter. Whenever company chooses social site for their business, they must be sure about handling crucial times and negative feedbacks. Also engaging employees with social sites that are engaged with the firms can prove risky since joyous comments will provide positivity while and accident or anger can prove negative for the firm. Along with it, employees can post confidential information’s accidentally which can be utilised by competitors. Any employee who is dissatisfied with the company can utilise social media for manipulating the firm to agree to their terms and condition. Falling under such circumstances companies feels helpless and have to make arrangements to secure their reputation. On the other hand, if an employee is fired for any reason, he/she can misuse the power of social networking sites by making negative comments of the company (WebpageFX, 2017).

Cost-effective and Easy to Use

For many companies social networking is used for the purpose of generating sales only due to which many times they make false promises. This turns to be disadvantage if users recognises their false promises and makes statement in the form of feedback. Security risks are one of the biggest disadvantages while getting associated with social networking (Hajli, 2013). Many false companies use big brand names to sell their products online. While customers unknowingly purchases from them, becomes unsatisfied and feels cheated. The bad comments made by their experience can spoil the brand image of genuine company (QuotesGram, 2017). Emailing customers with fake names is also increasing nowadays that makes users think about visiting new websites while making purchases. Many credit card users have stopped making online purchases as hacking of credit cards have become common these days and therefore business owners has to take risks in giving cash on delivery option to customers. Trademark and copyright infringements are also important issue recognised by socially connected businesses. Many false companies can utilise trademarks of reputed brand along with making changes in it through hacking. Here the companies can make agreement with social sites so that their information and data are secured with them. Competitors can also purchase target customers links from websites to lead customers towards them. This proves disadvantageous for the firms as losing customers by third party involvement becomes uncertain (Bank, 2015).

In making B2B transactions through social networking, companies might get cheated by getting degraded products. Since physical examination while making purchases is not done, any unwanted or corrupted raw material can spoil the quality of end product. In social networking contracts, involvement of government is not visible to much extent and thus the cheated party becomes helpless. Another disadvantage faced while making video conferences is leakage of valuable information. While connecting digitally, competitors may involve hackers to obtain recorded data of meeting and proceedings.  This kind of leakage can be avoided by physical meetings and thus making confidential talks shall be avoided through social networking sites (Yazdanifard, n.d.).

Conclusion

Social media is one of those trending business tools without which surviving in industry has become unfeasible. Whether any business is small or big, profit making or non-profiteering every one of them can utilise benefits of social networking. Organisations who understand pros and cons of social networks are the ones who reap utmost profit from it. Disadvantages of social networking can be avoided by the companies by following few guidelines. For example, giving response to customer’s feedback, inviting them to take part in promotions and schemes, apologising for any fault are few tips that can provide assistance to the companies while implementing social networking strategies into their business. Although the paper has studied advantages and disadvantages related to social networking in business, research gap on literature has been identified. Finding impacts of social network from the view point of business only cannot fulfil the aim of the research. To make detailed investigation on impacts of social media, both perspectives need to be studied to make a comprehensive research on the topic. Therefore this paper suggests in making further research of the topic from customers view point. Preparation of analysis from customers view point can even assist business owners by finding out what difficulties customers face while making purchases online. Also what kind of advertisements and promotions are liked by them can give leads to companies in making marketing strategies. Benefits of social networking are justified as shown in its popularity among people and since more people are connecting each day, social networking has become inevitable part of business.

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