Social Networking in Business 1

Introduction

In the 21st century the use of social media has grown in a significant speed. There is ever-

increasing users who are using social media platforms frequently and efficiently. Each year since

its introduction, social networking has recorded significant progress parallel to the innovation in

technology. Most businesses have adopted the use of social media to market their products and

services which is more effective than traditional marketing tools. Most businesses are

maximizing the connectivity brought by social networking that makes the globe to be a global

village (Arora and Tandon, 2017, 35). However, there are several challenges that have affected

the success of social networking in business. The paper focuses on the advantages and

disadvantages of social networking to marketing communication in business compared to other

conventional marketing tools.

When firms use social networking as a marketing strategy, the businesses are able to

communicate with their clients efficiently. In addition, a large number of firms are conducting

their services through social networks; for instance, new customers get recommendations and

referrals online and market their products. Social networks like Facebook, Twitter and LinkedIn

have recorded significant growth in the number of users. For instance, in a decade from 2005,

adult’s who use social media have increased from 7-70% (Cheung and Chan, 2015, 279-299).

Due to the ability of reaching a large audience, social networking provides a good opportunity to

businesses to reach out to a great number of customers. Therefore, social networking has made a

positive impact to marketing communication in business.

Social networking has several disadvantages which include: it is expensive to maintain as

it requires resources to maintain. For instance, there must be employees who are always active to
 Social Networking in Business 2

respond to customers online (Kasemsap, 2017, 131-138). In addition, these employees require

constant training and hiring with the increase of customer response due to the ever increasing

social network. Social networking is also hard to evaluate due to the less tangible profits, despite

having a precise amount of profit due to advertisements in social media. Social networking might

also turn out to be ineffective if the customer response is not explored when launching a product

or failing to respond to negative comments. Social networking is hard to maintain and keep up

with the customer flow as it requires constant innovations that excite the market. In addition, the

success of social networking is developed over time but not instantly making it an expensive

venture. Therefore, social networking has made a negative impact to marketing communication

in business compared.

Project Objective

The main aim of the research project is to focus on the advantages and disadvantages of

social networking to marketing communication in business. The main objectives of the research

project are:

 To explain how social media marketing has offered an opportunity to small businesses,

entrepreneurs, and midsize companies.

 To critically assess the leverage of social advertising in business

 To explore how social networking has boosted brand awareness

 To explain how social networking has huge customer traffic unlike other marketing tools

 To show how social networking converts a target market to actual customers

 To explore how social networking increases customer satisfaction

 To explain how social networking enhance brand loyalty

 To explore the reason why social networking an expensive venture

 To explain how tangible profits are hard to evaluate in social networking

 To show the maintenance cost of social networking

 To estimate the length required to for social networking to be successful

Project Scope

The research focuses on the various social networks that have been used in marketing.

The paper has gone deeper to specifically look at the success of business marketing using

Facebook. Social networks like Facebook have assisted marketing by increasing the number of

customers who view business advertisements online. More potential customers have been made

aware about brands in social networks to create huge customer traffic than other marketing tools.

In addition, social networking has increased customer satisfaction hence creating brand loyalty

among satisfied customers. However, the success of social networking comes at a cost which a

business must consider before they adopt marketing strategies through social networking.

Literature Review

Social networking involves an online platform where business partners and customers

share ideas, experience give recommendations and meet. Social networking has become an ever-

increasing platform where a large number of possible partners and customers are reached.

Networking has therefore become the main reason why many organizations are using social

media sites as there are able to get feedback and suggestions from stakeholders (Kasemsap,

2017, 131-138). This connection between business and clients, has given potential jobseekers a

chance to interact with possible employees. Social media has been able to offer an opportunity
 Social Networking in Business 4

where small businesses, upcoming entrepreneurs and mid-size firms a chance to create a brand

and improve their business.

Social networking is usually used to increase the customer experience by offering a

platform for feedback and contact with clients. To ensure social network becomes a success most

business firms have connected their human resource department with the social media for

communication and feedback. Besides, most firms are able to take an online survey that collects

the perception about a product before and after it is launched into the market (Kristiansen, 2004,

1149-1171). This assists companies to plan beforehand through the sole assistance of online

networking. Therefore, social networking has created an avenue where businesses are able to

develop brand awareness.

Having efficient and relevant products and services grabs the attention of potential

customers which increases brand visibility. This results to a brand reputation; the process when

used over a long period of time has been confirmed as very cheap in regard to other conventional

marketing methods (Kristiansen, 2004, 1149-1171). When businesses attract customers who buy

the products or services from a specific business the company is said to have developed brand

loyalty. Therefore, most firms are able to attract customers who buy from them regularly which

are described as brand loyalty.

Social networking is known to develop website traffic with potential customers. When

products and services are advertised online, there is an increase in online conversions where

viewers become sales. In addition the interaction experienced through social networking has

made it possible for businesses to measure and analyze the website traffic which can be projected

further to the sales pattern. In addition, most firms have set tracking website traffic which usually
 Social Networking in Business 5

is a business opportunity where other firms advertise their products. Therefore, unlike other

marketing tools, social networking has been able to attract many customers through website

traffic.

The success of advertising through social networking has increased significantly.

Marketing is one of the main factors that determine the success of any business. Social media has

revolutionized marketing where social platforms offer a place where products can be viewed,

sampled and sold. For instance, many businesses have developed Facebook fan pages where a

firm communicates with the customers about the latest products, recommendation and

communication with possible clients. Another social platform is YouTube where a business can

create a channel to showcase and sell their products (Tipton and Krause, 2016, 89-91). Another

social platform where business can benefit from is LinkedIn. This social platform offers

businesses a chance where they can recruit clients. Social networking offers a good environment

where a customer-business relationship can be created. Social networking offers a connection

between a business and other shareholders like business partners, potential employees and royal

customers.

Therefore, the success of a business can be determined by its ability to manipulate social

platforms that promote social networking. In addition, most business products and services have

their target audience use social networks like Facebook and twitter. For instance, when a

company advertises its product in a social platform, there is a possibility of reaching billions of

users depending on the website traffic (Tomse and Snoj, 2004, 427-450). Therefore, social

networking has become the latest advertising model which is cheap and has the probability to

reach millions. Depending on the feedback, social networking has proved to be effective

especially when it is used over a long period of time.

Research Questions/Hypothesis

1. What are the advantages and disadvantages of social networking to marketing

communication in business?

o How social media marketing has offered an opportunity to small businesses,

entrepreneurs, and midsize companies?

o What is the impact of social advertising in business?

o What is the relationship between social networking and brand awareness?

o How does social networking create big customer traffic in reference to other

marketing tools?

o What is the effect of social networking to a target market?

o What is the role of social networking to customer satisfaction?

o How does social networking enhance brand loyalty?

o Why is social networking considered to be an expensive venture?

o What are tangible profits in social networking?

o How does social networking require maintenance?

o What is the average time that a business should take to have its social networking

successful?

Research Design and Methodology

The research will be conducted through a quantitative research method. This method uses

objective measurements through statistical analysis of data that is collected. The research will

focus on the use of a questionnaire that will target business owners who have ventured into social

networking. This will assist the research to collect relevant data that is being practically
 Social Networking in Business 7

experienced by various businesses. The research questionnaires should be focus on responses

from human resource department which deals with advertisements and managers for smaller

business ventures.

Research Limitations

There are several limitations that the research is expected to face. First, there is a

possibility that most responses will be biased making the research to be false or inaccurate. Most

respondents tend to fill questionnaires fast so that they don’t spend a lot of time on them.

Therefore, it is important to make the questionnaire interesting and engaging as well as precise.

Second, a questionnaire might be too general since it will cover all businesses regardless of their

size. Despite having common problems, the size of the business usually results to different

problems that are vary according to the business size. Finally, questionnaires might take a longer

time period to be filled and analyzed that may require a lot of time before the research is

finished.

Time Schedule (Research plan)

Week 1 2 3 4 5 6 7 8 9

Professor meeting    

Submission of proposal 

Collection of data   

Literature review   

Case study review   

Data analysis   
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Reviewing the project 

Finalizing the research 

Submission 