Social Media in Business - Introduction To Business - ثاني ثانوي

9.3 Social Media in Business Link to digital lesson www.ien.edu.sa Learning Outcomes Once you have completed this lesson, you should be able to: 9.3.1 Define social media, understand why it is important to business and describe some of the tools available for businesses. 9.3.2 Describe how businesses can achieve their objectives through social media. Key Terms Social Media Social Media Sites Blog Media Sharing Sites Podcasts Social Games Social Media Communities Forum Wiki Social Media Community Manager Social Media Marketing Crowdsourcing Focus on REAL LIFE Maha was annoyed at having to wait for over an hour on the phone to speak with a representative from a utilities provider. In fact, she was so frustrated that she posted angrily about the experience on social media. To her surprise, a representative from the company, Ali, quickly tweeted back to ask for Maha's contact details so that they could solve the problem. It's Ali's job to monitor social media channels and respond to feedback from dissatisfied customers. He also uses social media to proactively engage with customers, share promotions and special offers, and check for the latest consumer trends. Ali offered Maha a discount off her next bill, turning an unhappy customer into a happy one. Thanks to the swift reply from Ali, Maha posted on social media again, this time praising the company's response. LO 9.3.1 SOCIAL MEDIA TOOLS FOR BUSINESS There are many definitions of social media because it is still developing and continually changing. For the purpose of business, social media represents the online interactions that allow people and businesses to communicate and share ideas, personal information, and information about products and services. Simply put, social media is about people. It is about a culture of participation, meaning that people can now discuss, vote, create, connect, and advocate much easier than ever before, using Internet-based technologies. How has Social Media Changed the Business Environment? Social media has completely changed the business environment. Just the sheer number of people using social media makes using social media a top priority for many companies. By using social media, companies can share information about their products and services and improve customer service. Now many companies, large and small, are using social media to learn about customers' likes and dislikes, seek public input about products and marketing, and promote particular products. 274 Chapter 9 | Business and Technology وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 274 08/05/2024 09:15

The fact that so many people are actively sharing information about themselves and their likes and dislikes online for all to see was a driving force for many companies to develop a social media presence. Unlike social media, traditional marketing messages were top-down (that is, showing all prospective customers the highest-quality product), because companies used television, newspapers, and magazine ads to promote their product to a large audience without any opportunity for feedback. With social media, customers can and do provide feedback. If people have bad experiences with a product or service, they tend to let the world know by writing about it on a blog, mentioning it on Facebook, or tweeting about it. As the case of Maha at the start of this lesson highlights, companies can turn negative feedback on social media into a positive outcome. As a result of the company's attention to social media, it received tweeted compliments in addition to tweeted complaints. The bottom line: While companies no longer have much control over what is said about their products or services, they still often respond to negative comments about the company and its products or services made by their customers. Even if the company's response doesn't completely resolve the issue, customers appreciate the company's effort to improve customer service. Do businesses really need to engage with social media? 6 Applying Social Media Tools in Business For a business, part of what makes social media so challenging is the sheer number of ways to interact with other businesses and existing and potential customers. Social media sites allow companies to create and share information about their products and services via blogs, videos, and photos. Commercials can go viral on social media, especially when linked to major sporting events like the World Cup, for example. To build buzz for their sporting event commercials, some companies post them on social media content sites before the big game. For businesses selling to other businesses, social content sites can also include webinars and online promotional materials. وزارة التعليم Ministry of Education 2024-1446 9.3 Social Media in Business | 275

(1) Business Use of Blogs For businesses, blogs have become one of the most widely used social media tools. A blog is a website that allows a company to share information in order to increase customers' knowledge about its products and services, as well as to build trust. Once a story or information is posted, customers can provide feedback through comments, which is one of the most important ways of creating a conversation with customers, not just as existing or potential customers, but as citizens. Blogs are effective at developing better relationships with customers, attracting new customers, telling stories about the company's products or services, and providing an active forum for testing new ideas. For example, many online marketplaces use blogs to communicate with both buyers and sellers. These blog posts might profile online shops, highlight new fashion trends, teach do-it-yourself craft techniques, or showcase unusual and unique items for sale. By including information about webinars and promotional materials, blogs are also effective for businesses that are selling to other businesses. (2) Photos, Videos, and Podcasts In addition to blogs, another tool for social content is the use of media sharing sites, which allow users to upload photos, videos, and podcasts. Before participating in media sharing, managers and employees should consider the following three factors: Who will create the photos, videos, and podcasts that will be used? How will the content be distributed to interested businesses and consumers? How much will it cost to create and distribute the material? How can businesses use podcasts to promote their products or services? One increasingly popular form of media is photo sharing. Today, photo sharing provides a method for a company to tell a compelling story about its products or services through postings on either the company's website or a social media site. Videos have also gained popularity because of their ability to tell stories. Entertainment companies, for example, now use YouTube as a way to showcase movie trailers. DIY and hardware stores have also posted great do-it-yourself videos on their YouTube channels. Companies know that YouTube and others sites are useful because they are already recognized by other businesses and consumers as a source of both entertainment and information. Podcasts are digital audio or video files that people listen to or watch online on tablets, computers, smartphones, or other mobile devices. Podcasts can be compared to radio shows that are distributed through various means and not linked to a scheduled time period. The great thing about podcasts is that they are available for download at any time. P276 Chapter 9 | Business and Technology Ministry of Education 2024-1446

(3) Social Media Ratings Social media enables shoppers to access opinions, recommendations, and referrals from others who have bought a product or service. This type of information is available via a social media site and can include reviews and ratings. Sites for reviews and ratings are based on the idea that consumers trust the opinions of others when it comes to purchasing products and services. According to Bazaarvoice, adding just one review results in a 10% increase in orders. That increase jumps to 25% when a product goes from zero to 30 reviews (Internet Retailer 2015). New user-rated directory sites have sprung up allowing consumers to rate local businesses or compare products and services. Consumer reviews are especially influential in certain purchase situations. Travel services and restaurants, for example, are an area where ratings make a difference in buying decisions. Knowing this, many hotel groups put the ratings of consumers who use rating websites directly on their websites so travelers can see what others say about each individual hotel. By examining the reviews, the hotel chain can get a good sense of its online reputation and identify specific areas for improvement. (4) Social Games Social games are another area of growth in social media. A social game is a real-time multiplayer activity in a virtual environment in which players can participate with others in an online community. One of the most important aspects of social media is entertainment. Games are also popular because people like the competition and social status they can earn through playing social games. For businesses that create games, it can be very profitable. For example, games often contain advertising from different companies and the sales of popular game-related merchandise can generate millions of Riyals of revenue. Still, rival game makers are feeling intense competitive pressure as players set aside old favorites to try new games and access different games via mobile apps. In fact, some companies are creating their own mobile game apps with social media links. For instance, a fast-food company might increase brand engagement through a mobile game app. While customers are playing the game, they are exposed to the company's logo and engaging with the brand. Customers can earn points that can be redeemed in one of the chain's stores. (5) Social Media Communities For a business, social media can be used to build a community. Social media communities are groups of people who share common interests and who want to engage in conversations about issues they consider important or interesting. These electronic communities (often called networks) provide a method for people to use technology and the Internet to connect with people with similar interests. People that are part of the networks can also share information and even develop profiles. Individuals in a community can be called friends, fans, followers, or connections. Popular social networking sites include Facebook (the largest), LinkedIn (for professionals), Twitter, Google+, YouTube, Pinterest, and many others. To see how many businesses use the top seven social media community sites, see Figure 9-5. وزارة التعليم Ministry of Education 2024-1446 9.3 Social Media in Business | 277

Is every social media platform appropriate for every type of business? Facebook Instagram 90% 79% Linkedin 61% YouTube 52% Twitter 43% TikTok 18% Snapchat 4% Source: Michael A. Stelzner, "2022 Social Media Marketing Industry Report", The Social Media Examiner website (Accessed September 10, 2022) FIGURE 9-5 The Top Social Media Networking Sites Used by Businesses There are social communities for every interest and lifestyle. Different types of social communities include forums and wikis. A forum is an interactive version of a community bulletin board that focuses on threaded discussions. These are particularly popular with people who share a common interest such as protecting animals or health issues or the latest business trends. Another community based on social media is a wiki. A wiki is a collaborative online working space that enables members to contribute content that can be shared with other people. With wikis, members of the community are the editors and gatekeepers ensuring that the content is correct and updated. Today, many companies and non-profit organizations are using social media to build communities in order to achieve important objectives. Non-profit organizations also use social media to promote and fund their programs. For a business, developing social media communities is a way to interact with customers. The largest companies now have a team of professionals to develop and monitor their social media activities led by a social media community manager. A social media community manager is a high-level executive who is responsible for all of a company's social media activities. 278 Chapter 9 | Business and Technology Ministry of Education 2024-1446 CHECKPOINT What are the main social media tools available to businesses?

LO 9.3.2 ACHIEVING BUSINESS OBJECTIVES THROUGH SOCIAL MEDIA Although the popularity of social media is a recent phenomenon, many businesses are already using it to achieve important objectives. Some of these goals are long term such as building brand awareness and brand reputation—while others are more short term—such as increasing website traffic or generating sales leads. Regardless of how social media is used, there are a lot of business opportunities. In this section, we explore a few ways that companies have used social media effectively to achieve business objectives (see Figure 9-6). In what other ways can businesses use social media to reach their potential? Recruiting employees Reputation management Generating new product ideas Achieving objectives through social media Listening to stakeholders Social media marketing Targeting customers FIGURE 9-6 Ways that Companies Use Social Media to Achieve Business Objectives Reputation Management Employees should be trained in social media etiquette and monitor social media sites to see what is said about the company and its products. In challenging times, companies can use social media to answer questions with carefully worded posts, reassure the public, and present positive information to help maintain their reputations. By responding quickly and providing customers with valuable support, the damage to both the company and its customers can be minimized. Listening to Stakeholders Listening to people, whether they are customers or not, is always an important aspect of a company's social media plan. Indeed, listening is often the first step when developing a social media strategy. By monitoring Facebook, Twitter, or other social media sites, companies can determine what customers think about their products or services. If a company receives negative comments, it's important to respond quickly. Typically, the first step is to admit the mistake and apologize when criticism about a product or service is justified. A personal response either on social media or a personal contact often will help resolve a complaint and at the same time restore customer goodwill. It also helps if the customer feels that the company will take action to correct the problem. For example, many companies encourage customers to complete quick surveys about products or services, often providing customers with a link to a short survey on the bottom of their receipt. Customers are free to provide both positive and negative comments about their وزارة التعليم 9.3 Social Media in Business | 279 Ministry of Education 2024-1446

dining experience. Those comments are then used to fine-tune restaurant operations. In some cases, when negative reviews are justified, customers receive a personal note that may be accompanied with a gift card to encourage customers to become return customers. Targeting Customers For businesses to succeed and remain profitable, they must identify who the customer is and what characteristics make the customer unique, in order to target them appropriately in FYI Saudi Arabia has a young population, with over 58% under the age of 35. Digital marketing is especially valuable in targeting this technologically-minded generation, who have grown up with it as part of everyday life. Consider that much of the technology discussed in this chapter didn't exist as recently as 5 years ago! Social Media Marketing marketing strategies. Many companies are using social media to increase awareness and build their brand among customers. For example, an online health food store might use social media, blogs, and email newsletters to share healthy recipes using its products. An effective e-marketing strategy has been proven to increase profits. Social media marketing is the utilization of software, computer technology, and the Internet to provide information about a firm's products and services, increase sales revenues, and improve customer service for a business. As companies become more comfortable with social media, we can expect even more companies to use social media to market products and services to their customers. Already, research indicates that companies are shifting their advertising money from traditional marketing (like television and magazines) to digital marketing (like Internet search engines and social media). Billions of Riyals are spent every year on search engine marketing, display advertising, social media marketing, and email marketing—more than they spend on broadcast and cable television advertising combined. The primary reason is simple: People are spending more time on social media sites. Often the first step for a business that wants to use social media is to go to LinkedIn, Facebook, Twitter, or some other popular social media site. Today, many companies have been quite successful using social media marketing not only to develop customer awareness, but also to obtain sales leads and increase actual sales. Software companies have been established to help small and medium-sized companies develop their marketing programs. ليم 280 Chapter 9 | Business and Technology Ministry of Education 2024-1446

Generating New Product Ideas FYI Crowdsourcing-a new way Companies can use social media to conduct much of their consumer-based research. Using insight gained from Facebook or Twitter, for example, allows a company to modify existing products and services and develop new ones. Crowdsourcing involves outsourcing tasks to a group of people in order to tap into the ideas of the crowd. In some cases, valuable information can be obtained by crowd voting. Companies can even build communities for specific brands in order to obtain information and new ideas from consumers. In some cases, communities are given the opportunity to vote on ideas suggested from the group that will be turned. into new products. to generate ideas for products and services. Who knows more about their needs than the customer? Research confirms that crowdsourced products sell better when the people who will use the product are involved in the development of the product or service. Recruiting Employees LinkedIn, the largest social network for professionals, has been used effectively by large corporations, small businesses, non-profit organizations, and government agencies that want to recruit new employees. Because Linkedln hosts over 800 million registered members, employers using the site can save time, reduce their recruiting costs, and see more information about individual candidates. 10 How can businesses use social media to recruit new employees? وزارة التعليم Ministry of Education 2024-1446 CHECKPOINT How can businesses use social media to help achieve their objectives? 9.3 Social Media in Business | 281

9.3 ASSESSMENT Key Concepts Determine the best answer. 1. True or False. A wiki is an interactive version of a community bulletin board that focuses on threaded discussions. 2. Which of the following social media platforms is specifically aimed at professionals and focused on recruitment and business networking? a. Facebook b. YouTube c. LinkedIn d. Twitter 3. True or False. Crowdsourcing involves outsourcing tasks to a group of people in order to tap into the ideas of the crowd. Make Academic Connections 4. Research Visit three websites of companies that sell products or offer services online in Saudi Arabia. Check whether each has a presence on social media and determine which platforms they use to engage with customers. Based on the information available, describe how effective they are at using social media to promote their business and suggest any improvements that could be made. 282 Chapter 9 | Business and Technology Ministry of Education 2024-1446