Social Media
An application or a web-based medium that has the ability to allow users to either create, share, and connect with people that share similar interests(Miller & Lammas, 2010). According to Evans (2012), the theory discusses how people interact in groups and contribute to social networking.
Trends in Social Media Usage
Social media’s most prominent trend adopted by consumers in response to engaging content, there is increasing adoption of video content and future forecasts are promising (Scott, 2015). E-marketers are designing video-based marketing advertisements to increase consumer engagement and to grab potential customers. Video marketing has experienced a 23% increase in 2016 in comparison to 2015, and it is projected that in 2019 the total spent on video marketing will amass at $14 billion (Ray, 2013). Facebook video posts have experienced a 94% annual increase in the US only.
Facebook ads are interactive where user can click on the advertisement that directs them directly into a chat with the business representative so that they can inquire more details or place an order (Fiegerman, 2014). Facebook remains the leading social media platform as shown in figure # 1. Figure # 2 also seconds the claim where Facebook’s daily active users far exceed that of any other social media network.
To understand customers’ needs and wants social media analytics is a great tool for research. 1.71 billion monthly users are active on Facebook and these users love to share and discuss (DeMers, 2014). Using analytics becomes very powerful when carefully designed to gain specific information from a target market. Having lived up to date data can help businesses in making effective decisions.
Facebook and Business Marketing
Facebook is leading with approx. 1.5 billion worldwide users and the UK shares 31 million Facebook users (61% population) within that pool (Avocadosocial, 2016). Today, thirty million enterprises have a Facebook fan page and out of the 19 million have optimized pages for mobile (Fuchs, 2013).
Businesses using Facebook advertising are spending 122% more than what they spent in 2015. According to a survey 92% of the social marketers are using Facebook as a platform for advertising (Holsapple, Hsiao, & Pakath, 2014).
With 1.19 billion active users, the probability for a business increases, to gain exposure for potential customers. Businesses using Facebook advertising are able to generate more leads as having people like the content is not enough rather need the community to interact and develop a relationship that goes beyond social media networks. Using Facebook advertising businesses are able to significantly reduce the marketing budget. Facebook ads are very cheap considering the competitive forums and are 1000 times more targeted towards the required audience than traditional marketing channels.
Introduction to Netflix
Netflix is a top entertainment company with 6 million subscribers in the UK and 65 million worldwide. Unique content creation and social media marketing on Facebook has been a critical success factor for Netflix.
Netflix Social Media Success
Figure 3 Netflix social media subscribers
Source: Statista.com
Source: barb.co.uk
Netflix utilizes Facebook very effectively, and never feels shy about communicating with the audience. Evaluation of Netflix’s Facebook strategy shows that the company creates engaging but the flurry of content after a show is released. A dedicated Facebook page is created for its original content that is used to share the hype and excitement directly with the audience.
Secondly, Netflix changes its cover photo of the Facebook page on critical occasions to drive engagement. Changing cover photo is effective since it shows up directly in newsfeeds and people are reminded to start binge-watching the new awesome show. Netflix shares trailers on Facebook generating increased engagement. Additionally, Netflix posts video content followed by stunning photos that keep the audience excited for a long time.
Netflix finally uses Facebook analytics to understand the audiences’ preferences, needs, and wants. The analysis includes average viewing time and why fans are engaging with content. This valuable information helps Netflix to create more engaging content on Facebook.
The Marketing Concept
Kotler (2012) explains the marketing concept as a philosophy that the consumer is the epicenter of all business decision and strategy formulation. Armstrong, Adam, Denize, and Kotler (2014) further explain that decisions taken should be fully tailored to satisfy customer needs and wants. Adopting a marketing concept lends a competitive advantage where it becomes sustainable by continuously developing according to customer changing demands.
Social Media and Consumer’s Needs and wants
According to Newman (2016), consumers do not want syndicated content rather they want to engage in meaningful dialogue. The consumers’ needs and wants related to social media are to engage in meaningful discussion with like-minded brands or individuals. Coon (2010) believes that consumers’ needs and wants are continuously changing at a fast pace and in order to understand the social media acts a viable tool. Engaging content is consumer basic demand to interact, when businesses create effective content they are able to gain feedback and understand consumers’ needs and tailor their product according to consumer needs/wants (Chen, Fay, & Wang, 2011).
Relevancy of Social Media with Marketing Concept
Smith and Zook (2011) believe that social media is relevant to the marketing concept as it has the ability to engage consumers and partner with them for co-creation. The marketing concept demands that a business delivers the best value to its customer in comparison to the competitors. Henceforth, using social media to develop strong relations with customers allows businesses to partner and learn about consumer needs and wants to co-create.
Hence social media is relevant to the marketing concept as it is shifting the view from a product-centric approach towards consumer experience (Newman, 2016). Hence using social media marketing concepts can truly be implemented as businesses can deliver increasing value under changing circumstances better than competitors. Social media is marketing research heaven where engaging content can allow businesses to better develop their products according to consumers’ needs and wants. In this regards social media is closely knit to marketing concept (Hensel & Deis, 2010). Marketing concepts advocate research and development, where social media analytics are tailor-made for this purpose. Using these statistics, the organization can gain access to valuable data that can assist in designing an organization’s future strategy.
Evaluation of Trends and Customer Satisfaction
Business social media marketing is all about maintaining relevance to consumers changing behavioural preferences and use personalize touch points to keep them engaged. Customers want a personalised relationship with brands and if they don’t get it and are not satisfied then it is quite easy for them to take money elsewhere (DeMers, 2014). Customer satisfaction is dependent on touchpoints that are personalised and proactive. Research findings show that 65% of consumer expect company will communicate with them in real time (Ray, 2013). Hence business has to identify the need proactively and respond otherwise, business risks losing dollar amount to its competitors. A dissatisfied customer has low switching cost making it easier to make a move towards business competitors.
Conclusion
Social media is not just a simple advertising tool rather a complete suite to perform CRM where marketers can understand their needs and wants to effectively meet them with personalised touchpoints and interactive content. The business continuously understands consumer need and align its social media strategy accordingly to maintain consumer satisfaction.
Reference
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing: Pearson Australia.
Avocadosocial. (2016). THE LATEST UK SOCIAL MEDIA STATISTICS FOR 2016. Retrieved from http://avocadosocial.com/the-latest-uk-social-media-statistics-for-2016/
Chen, Y., Fay, S., & Wang, Q. (2011). The role of marketing in social media: How online consumer reviews evolve. Journal of Interactive Marketing, 25(2), 85-94.
Coon, M. (2010). Social media marketing: successful case studies of businesses using Facebook and Youtube with an in-depth look into the business use of Twitter. Unpublished manuscript MA thesis, Stanford University.
DeMers, J. (2014). The Top 10 Benefits Of Social Media Marketing. Frobes Retrieved from https://www.forbes.com/sites/jaysondemers/2014/08/11/the-top-10-benefits-of-social-media-marketing/ – 75ff8661f80d
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Newman, D. (2016). Social Media Is No Longer A Marketing Channel, It’s A Customer Experience Channel. Retrieved from https://www.forbes.com/sites/danielnewman/2016/01/12/social-media-is-no-longer-a-marketing-channel-its-a-customer-experience-channel/ – 45c7ebd063a5
Ray, R. (2013). The Facebook guide to small business marketing: John Wiley & Sons.
Scott, D. M. (2015). The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly: John Wiley & Sons.
Smith, P. R., & Zook, Z. (2011). Marketing communications: integrating offline and online with social media: Kogan Page Ltd.