Social Networking As a Marketing Model

There are said to be four P’s at the core of marketing: Product, Price, Promotion, and Place. Together, these elements can allow a business to be competitive in the global marketplace of today’s economy. Businesses stretch their marketing budget thin trying to achieve these objectives, but often times overlook a growing – and free – trend of marketing via social networking.

The four P’s are elements of an expanded definition of marketing: putting your product in front of a potential customer at a time when they are most likely to buy that product, in a place where they are willing to buy it, and at a price they are willing to pay for your product. By properly leveraging these elements, a business can capitalize on their potential market and compete on a global scale.

When you are considering a marketing campaign, you look at the cost-to-benefit ratio, reach, relevancy, and return on investment of a particular advertisement. Let’s consider for a moment social networking as it relates to advertising:

1. Cost-to-Benefit Ratio

Social networking is a method of connecting people, a way to “shake hands” with anyone, anywhere in the world. The cost is typically minimal – if not free – which fits well in any budget. The benefit can vary from one customer to thousands depending on the effectiveness of your campaign, but at no cost, any benefit is a positive return for your business. Not to mention it allows your business to craft a positive public image, which can be invaluable if it helps create return customers.

2. Reach

Social networking is quickly becoming one of the most popular aspects of the Internet, reaching potentially millions of people from around the world. The truly global reach is something you just can’t get with any other form of promotion.

3. Relevancy

When someone searches for something on Google, they are likely looking for a very specific item. If your product or service is the first thing the person sees after searching, and your product matches their need, they are likely to purchase it. That initial relationship – the first order – is extremely important to your client. Taking that relationship and building upon it by making it more individualized, can create a positive experience for your customers and in return, generates revenue for your business.

Social Networking Applications

Facebook

There has been a recent explosion in the use of Facebook “fan” pages for different businesses to connect to their customers in a more informal and more intimate way. Facebook has millions of users and things tend to go “viral” very quickly. One person lists your business’s fan page and it is posted to the status updates of all of their friends. From there, those friends might be curious about your business, visit your page, and become a fan of you. If your supporter page goes viral, you will see a huge spike in customers. An example of this kind of page is WebHostingBuzz’s Facebook Fan Page.

Twitter

Another explosive social networking application that is finding business use is Twitter. Twitter allows you to post short (140 character) messages to “followers” who are interested in what you are doing. There are several ways you can implement this for marketing purposes:

• Announce promotions, specials, and sales
• Service updates (server down? Let people know you are on it!)
• For fun, give the details to your employees and let them post updates of their workday

This type of informal communication humanizes your business to your clients, which makes it a more personal atmosphere. See WebHostingBuzz’s Twitter page for an example of how we use it.

Crafting a Public Image Online

In order to successfully utilize social networking as a marketing model, you need to focus on creating a “face” for your business. Develop a personality that impresses your customers and furthers the image you want your customers to see when they think about your business.

Doesn’t Informal Communication Appear Unprofessional?

Not if done correctly! If you are careful to craft your posts to promote a positive image of your company, your customers will appreciate the added informal updates. For instance, if you had a server go down and your techs were hard at work to solve the problem, posting updates tells your clients that you are on top of the issue and it is receiving attention. This usually impresses your client and for the impatient types (like myself!) it can provide updates on progress that keep your ticket line open for issues you are not aware of.

Silence is the Enemy of Marketing

The absolute worst thing your business can do in today’s climate is to stay silent. By communicating with your clients and networking socially with them, you are creating an image that promotes your business and makes sales.