Case Study 4

Kira L. Morris

4/10/2015

1. Assess the people, organization, and technology issues for using social media to engage with
customers

Most people are used too using Facebook and twitter to keep touch with friends or to let them learn
and know what there are doing. Social media like Facebook and Twitter have transformed the way some
businesses think about advertising. Though there are a few issues presented.

 People

People would need to spend time to monitor each network, respond to comment, answer the question
and post product information.

Sometimes the workers might not be able to think rationally to respond on the comment of the
customers. If the comment is misunderstood, it could cause issues if the customer gets upset. Even if the
Facebook or Twitter postings in ads show brands apologizing about missteps or customer complaints,
advertisers may still benefit.

 Organization

The organization needs to choose a suitable network to engage with customers. Twitter has developed
many new offerings to interested advertisers, like Promoted Tweets and Promoted Trends. These
features give advertisers the ability to have their tweets displayed more prominently when Twitter users
search for certain keyword. While Facebook uses searches and user preferences to determine which
type of people respond to the various ads it has created. Facebook features the ability to like a brand,
send a virtual gift, answer a pool question, and instantly stream information to your news feed.

Companies are rolling out ads that capitalize on the social media features of Facebook to achieve
greater visibility. But many companies are running online ads that focus less on pitching their product
than on promoting their Facebook pages and Twitter accounts. The ads feature menu tabs and allow
users to click within the ad to see a brand’s Twitter messages or Facebook wall posts in real time, or to
watch a brand’s video content from YouTube-all within the Web page where the ad appears.

 Technology

The technology does not always work. When the company cannot connect to the social networking, it
will affect the operation efficiency.

The social media that is used by the company must well suit with the company products and service. The
company might face problem to integrate new technologies into the enterprise environment.

There is a security problem presented by using the social networking. The company confidential
information might expose to competitors. This issue was demonstrated in the case when discussing how
Burger King got hacked.
 2. What are the advantages and disadvantages of using social media for advertising, brand
building, market research and customer service?

 First, the advantage of using social media is a decreased cost and increase revenue. By using
social media for advertising and promotion activities, it is cheaper than the traditional marketing
method. It helps the company save the cost to do promotions because it’s free to display ads in
social media. The use of social media is more efficient because the company can update the
information at any time.
 Another advantage of using social media is the ability to target the customers. The company,
through Facebook, can identify the target market based on age, sex, geography and education.
This is because the user of Facebook will fill in their personal information, letting the company
get a better understanding about the audience’s interests. Facebook is one of the popular
platforms that provides information about the people and it makes the process of market
research easy and fast.
 As a last example of an advantage in using social media is its interactivity. The social network
provides a platform for the company to interact with their potential customers. For example,
Twitter posting the company’s products or services, the promotions that are offered by the
company to customer, and the news about the products. The followers are able to give
comments and feedback in Twitter messages. The follower can post their questions on Twitter
and the company can answer the user questions. This increases customer relationship and
interactivity between customers. It is easier to communicate with potential customers from
time to time.

Using social media also has disadvantages the company needs to understand.

 They need to commit resources to managing the social media, responding to feedback, and
producing new content. The company might not have expert people to manage the social
media, so they would be going in blind.
 Another disadvantage is lack of feedback control. The company cannot control things if the
customer leaves a negative comment or post in social media. For example, when a customer is
not satisfied with the company products, the customer will comment on the company Twitter
about the weakness of the products. If the management team unable to overcome this
complaint, it will damage the company’s image. When a potential customer sees the post, they
might lose the interest to buy the products. Therefore, the company must efficiently to respond
on negative responses but it takes more time.

3. Give some examples of management decisions that were facilitated by using social media to
interact with customers.

Wrigleyville knows which customers respond to its promotions, how much they’re willing to spend, and
what they want to buy. It can use this information and more to decide where and how to spend its
advertising cash effectively.
JCD Repair encourages customers to post reviews of its services online, this helps the company see what
it’s doing right, and where it needs improvement. It uses this to fix any mistakes quickly/efficiently.

4. Should all companies use Facebook and twitter for customer service and advertising? Why or
why not? What kinds of companies are best suited to use this platform?

For all type of companies, Facebook and twitter have become powerful tools for engaging customers.
Companies can use Facebook and twitter to make tradeoffs, promotion, and services to make a business
without spending significant costs. For service, location based on businesses such as gourmet food
trucks can tweet their current location to loyal followers and fans. Appointment-based businesses can
easily tweet or post cancellations and unexpected openings. Larger companies of all sizes, such as Best
Western or TripAdvisor from the case, have an opportunity to run sweepstakes or promotions. Other
companies, like VistaPrint, have an opportunity to shape the perception of their brands and to solidify
relationships with their customers. But no, it is not necessary for all companies to use social media for
customer services and advertising. The reason is that small businesses don’t really need to get involved
in social media. When the company cannot effectively use the social media, it will bring negative impact
on the company at the same time it will damage the brand of the company. Smaller companies might
not have enough time to manage the social network and respond to customer questions, and they may
also lack the necessary experience.