SOCIAL MEDIA SITES IMPACT ON BUSINESSES AND CONSUMERS

Submitted to Shari Weiss, Professor San Francisco State University, California

Submitted byJessica Hines, Student San Francisco State University, California

April 7, 2015

TABLE OF CONTENTS

EXECUSTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1SIGNIFICANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1SCOPE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1DISCUSSION: USAGE, RELATIONSHIPS, AND BENEFITS. . . . . . . . . . . . . . . . . . . . . 2USAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 FIGURE 1 : SOCIAL CONNECTION THROUGH MEDIA . . . . . . . . . 2 SIZE MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 3 FIGURE 2: EMBEDDING BUYING BEHAVIOR . . . . . . . . . . . . . . . . 3CONSUMER RELATIONSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 4SUSTAINABILITY OR ADATPTABILTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5FIGURE 3 : RELATIONSHIP GOALS BETWEEN BUSINESSES AND SOCIAL MEDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6FIGURE 4 : WHO USES WHAT?. . . . . . . . . . . . . . . . . . . . . . . . . . . 6CONCLUSION AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7WORK CITED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

EXECUTIVE SUMMARY Businesses can benefit from social networking sites, enabling companies to the utilization of a social media site is imperative to the business. By using the right social media site, businesses can build relationships with people. Communication is the most vital part of a businesss relationship with consumers. How companies communicate can either benefit or destroy a businesss brand.

1. When evaluating different media sites before choosing one, a business must look at the size of its users per social platform. Facebook would be the most effective social media based off of the larger percentage of users2. Strategically advertise products that are accessible to consumers at the right place and at the right time which will increase their buying behavior. Social media is also dependent upon the location of stores, neighborhoods, and other businesses that surround the consumer.3. The percentage of businesses that increase or continue with the same established social media are higher than the percentage of businesses who decide to decrease or not use social media at all. 4. The benefits of social media are being able to connect to a large market of consumers. Brand awareness and immediate feedback from customers will lead to a successful web based approach in marketing which is seen in figure 1, figure 2, and figure 3. 5. Based on findings Facebook, LinkedIn, Instagram, Twitter, and Pin interest are the most used social media sites.

With over 50 social media sites leading the way in communication within the business world, Companies must be able to evaluate and strategically choose what one or two media platform sites will best suit their marketing plan without it being underutilized instead of connecting with the audience.

INTRODUCTION

BackgroundSocial media was once used for individuals to engage and interact with others without having to communicate face to face. Recognizing this action , businesses started to use social media to develop a direct relationship with their customers and to promote their brand, as Mochas states , Weve also seen customers become empowered as never before , where they expect immediate , relevant communication in real time(2005). PurposeThe purpose of this report is to view how strategic planning can benefit businesses when choosing a social media site. This report is significant because businesses must adapt to the changing market and to social media-savvy customers in order to effectively market their product. Most social media sites are underutilize by businesses which can be a loss of opportunity cost and lessen the direct connection with customers.SignificanceThis study was completed to analyze the methods use when strategically choosing social media sites that best suites businesses. The effectiveness of social media to businesses is also evaluated. Scope In this study, the social media sites with the most active users such as Face book, Twitter, Instagram, LinkedIn, and Pinterest will be analyzed and questions surrounding these social media sites will be explored such as: What methods should businesses consider when choosing the right social media site? Why is it important to strategically choose a social media site? Can these social media sites actually benefit businesses? How is the relationship between businesses and consumers affected by the use of social media?

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USAGE, CONSUMER RELATIONSHIPS, AND BENEFITS In order to effectively choose a social media site, businesses must analyze the usage, benefits and the relationship dynamics when using these platforms. As a result businesses can engage and create a brand presence within a specific market. UsageAs shown Figure 1. The social media with the most active users is Facebook followed by LinkedIn, interest, Integra, and Twitter. When evaluating different media sites before choosing one, a business must look at the size of its users per social platform. Occupying the highest usage below, Facebook would be the most effective social media to utilize based off the larger percentage. Businesses must evaluate the usage of each social media site in order to establish or extend their client base. Marketing and advertising may become more cost effective and easier when choosing a social media site with a larger audience making it a more beneficial investment for the business.Figure 1Social Connection through Media

Source: Pew Research Center, Washington, D.C. 20036

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Size Matters

Size matters when businesses are targeting a certain demographic of people .Some businesses create buyer personas for their customers in which they appeal to a certain group of audience. For example, 42% of online users for Pinterest are women and 13% are men who would result in women dominated market for products mostly used by women (Chit wood, 2014). Therefore, Pinterest would be used to market feminine items or products mostly used by women. Whether its analyzing the audience as whole or only targeting a certain demographic of people, size matters.

Figure 2

Embedding Buying BehaviorAmericans spend more time on social media sites per day then watching TV. In Figure 2, Americans over the age of 18 will spend an average of 4 hours and 40 minutes per day on their mobile or online devices which is 9 minutes longer than watching television (Ritcher 2013). Source: eMarketer

With Americans adapting to the always on culture, consumers are always present on their smartphones and devices 24 hours a day which suggest how social media is becoming a part of the social norm. By targeting your feed of advertisements to catch your audience attention during different times of days whether it be during a commute, weekends , and late nights or early morning can affect can result in effective marketing of businesses(Cespedes, 2015). Strategically advertise products that will increase their buying behavior.

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CONSUMER RELATIONSHIPS

Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual friend connecting consumers directly with business. Based on usage, Facebook, LinkedIn, Instagram, Twitter, and Pinterest are the most popular social media sites where businesses can have direct communication with their customers:

Facebook. One billion (Folger) people are active on Facebook every month (2013). Using Facebook creates a high level of engagement with customers. With over 70% of adults actively using Facebook, this social media site provides a more intimate setting for its users where posts and personal messages can be sent or read to by close friends and family. Businesses who want to establish a personal relationship with their customers may utilize Facebook to remain interactive and present in their customers lives.

LinkedIn. LinkedIn serves as a social media site that connects businesses with other businesses (b2b). In order to effectively utilize LinkedIn, Businesses must use this platform to networking. Businesses seeking industry specific information from users is also makes LinkedIn suitable for certain types of Businesses. LinkedIn enables businesses to not only connect with consumers but to connect with other business. Businesses whose market are educated and high income individuals may effectively use this media platform (Manafay, n.d).

Instagram. Serving as a visual social media site for businesses who want to market a specific image, Instagram focuses on lifestyle, food, and fashion. Businesses who have products that follow trends and markets that target a specific demographic of people will be able to effectively this social media platform

Twitter. Twitter is used as a topic based social media site. Like Facebook, Twitter also gives Businesses more interaction with customers. Users (Chitwood, 2014) posts multiple times a day, creating a self-conscious image on the web. Twitter is used as another form of democracy (Chitwood, 2014). Businesses who choose Twitter as their social media platform are really interactive and conscious within the community

Pinterest. Businesses who seek to market a specific item take of advantage of Pinterest because of the easily categorized content that are searched multiple times a day (Chit wood, 2014). Similar to Instagram, Pinterest also focuses on trendy food, DIY designs, and travel.

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Sustainability or Adaptability The goal of social media is to developed sustainable relationships with customers while adapting to changes. Building relationship can only be attaining by choosing the most effective social media site or changing to an even more sufficient media platform.Figure.3 Relationship Goals between Businesses and Social MediaIn figure 3. 68 percent of businesses decided to increase to other social media platforms such as blogging, YouTube, Twitter, LinkedIn, and Facebook. 16 percent of marketers decided to stay the same while 2 percent decided to decrease their social media platforms and 14 percent decided not to utilize social media at all. Source: 2014 Social Media Marketing Industry Report

The percentages of marketers who increase or stay the same are higher than the percentage of marketers who decided to decrease or not utilize social media at all. This proves how marketers are willing to effectively use pervious media platform or adapt to change and increase to another social media platform.5

Figure. 4

Source:360i. Social Media Apps Image via ShuttershockWho Uses What? In figure. 4, teens, wide audience, millennials, early adopters, business people, and recruiters are different categories of people who use social media. In addition, millions of people are active on social media which leads ways to extremely high engagement and faster growing audiences.

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CONCLUSIONS AND RECCOMENDATIONS Analysis of the usage, relationships, and benefits of social media sites results to the following conclusions and recommendations about why businesses should strategically choose social media sites that will effectively utilize their marketing plan.1. Communication is the most vital part of a businesses relationship with consumers. How companies communicate can either benefit or destroy a businesss brand.2. In order to effectively choose a social media site, businesses must analyze the usage, benefits and the relationship dynamics when using these platforms.3. When evaluating different to media sites before choosing one, a business must look at the size of users. , in order to establish or increase a client base 4. With Americans adapting the always on culture, consumers are always present on their smartphones and devices 24 hours a day which suggest how social media is becoming a part of the social norm.5. Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual friend connecting consumers directly with business.6. Based on usage, Facebook, LinkedIn, Instagram, Twitter, and Pinterest are the most popular social media sites where businesses can have direct communication with their customers7. . The goal of social media is to developed sustainable relationships with customers while adapting to changes.8. In addition, millions of people are active on social media which leads ways to extremely high engagement and faster growing audiences.9. The percentage to the same or increase helps proves the benefits of social media.10. The ability to have brand awareness and immediate feedback will lead to a web based approach in marketing which is seen in figure.1, figure. 2 and figure.3 to be successful and innovative.

On basis of the research findings, we recommend that businesses evaluate, analyze, and utilize social media sites and platforms that best suits their marketing plan. The benefits of social media are wider range or audience and a more direct integration with customers as well as other businesses.

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Work citedHochhauser, R. (2005). COMMUNICATION IS KEY TO HAPPY CUSTOMERS. Industry Week/IW, 254(13), 30-31.The Best Social Media Platforms for Your Business. (2014, March 5). Retrieved April 7, 2015, from http://thenextweb.com/socialmedia/2014/03/05/social-media-platform-best-business/Is Social Media Actually Helping Your Company's Bottom Line? (2015, March 3). Retrieved April 7, 2015, from https://hbr.org/2015/03/is-social-media-actually-helping-your-companys-bottom-line?Implementing A Small Business Social Media Strategy: Introduction | Investopedia. (2013, March 19). Retrieved April 7, 2015, from http://www.investopedia.com/university/implementing-small-business-social-media-strategy/How to Choose the Best Social Media Site for Your Business. (n.d.). Retrieved April 7, 2015, from http://www.inc.com/michelle-manafy/how-to-choose-the-best-social-media-sites-to-market-your-business.htmlFrequency of Social Media Use. (2015, January 9). Retrieved April 7, 2015, from http://www.pewinternet.org/2015/01/09/frequency-of-social-media-use-2/Infographic: Digital Media Use Set to Exceed TV Time This Year. (n.d.). Retrieved April 7, 2015, from http://www.statista.com/chart/1330/media-use-in-the-us/Karikoski, J., & Soikkeli, T. (2013). Contextual usage patterns in smartphone communication services. Personal & Ubiquitous Computing, 17(3), 491-502. doi:10.1007/s00779-011-0503-0

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