Social Media Marketing: A New Business Prime Mover

What Is Social Media Marketing?

Almost half of more than 2 billion people who regularly use the internet are addicted to Facebook. Using the social media outlets like this one has been a recent phenomenon, interlinking people through a cyberspace process. And this is the main reason why businessmen should consider social media marketing as a new prime mover of their business for them to hit ‘profit.’

Social media marketing is a process giving multiple benefits to business owners by way of using Facebook, Twitter, Pinterest, Google +, LinkedIn or Tumblr Accounts to promote brands of products and services. People are very much aware of these social media channels. For this reason, the business owners can expect an incredible increase of their sales volume that is denoting income.

Comparing it to the conventional way of promoting business brands, i.e. the use of televisions or radios, this newly-discovered method is more powerful in one way or another due to several factors such as:

1. No territorial boundary;
2. Greater market;
3. Lesser investment; and
4. Simultaneous promotional actions.

How Does This Prime Mover Work?

The first factor talks about the spatial aspect. Applying this technique does not put limitation on where should and where should not. There is no delineated and surveyed market territory where a particular business is only allowed to operate. The main medium is the internet and it penetrates almost every geographical line of the four hemispheres of the world.

The second factor emphasizes quantity. Try to imagine that in a traditional way of promotion, let say TV, it is only feasible to tap those people in a certain locality who are watching the primetime show with the advertisement of this product during commercial breaks. The difference now is that, it might be more doable to persuade more people simultaneously about particular brands through the social networking sites.

The third factor implies ‘money’ used in the promotion. Paying television networks needs big additional capital. However, opening a Facebook page is free. What is important is to learn about the dynamics of this promotional technique. In fact, there are people who are earning by opening a simple online store in FB.

The last factor elucidates time. Simultaneous action is indicated in this methodological application. Try to imagine that it is possible to have a lot of social media accounts. And instantaneously, it is probable to promote products and services using those accounts.

It is quite simple to analyse. The factors being considered are place, people, capital and time. No businessman will tend to neglect these aspects. They are the known as the business pillars. With the presence of social media networks, generating what a businessman calls ‘profit’ has a greater feasibility. Social media serve as the new prime mover of business.

Organizational Culture – Service Industry

One of the most underrated aspects of making a business successful is the importance of the organizational culture. The culture is built on the shared values, beliefs, and principles of individuals within the organization. Instead of focusing on building a strong, sustainable culture, organizations are more concerned with cutting costs. The service industry is a prime example of this. I have worked in different facets of the service industry for the past five years and all the organizations I have worked for are structured the same way. They use labor, food, and bar costs as a barometer to measure how well the organization is operating. Management is judged by how well they are able to manage these costs.

How much total revenue the organization brings in seems to be almost irrelevant. The overall goal of the organization is to maximize profit. Lowering labor, food, and bar costs and maximizing profits do not go hand in hand. For example, a manager could decide to cut the number of employees working on a Saturday night in half. The manager could also order poor quality food in attempt to lower food cost. Meanwhile, the service and quality of the product suffer because of the structure put in place by the organization, so no one wants to patronize the organization, thus actually reducing profits. Organizations structured in this manner suffer from weak cultures. The organization’s goal, maximizing profits, and the management’s goal, lower costs, are not aligned, resulting in a large organizational performance gap. According to the article “Importance of Organization Culture”, building a strong organizational culture helps with many aspects of making a business successful including the following:

• Aligning individual and organizational goals
• Creating healthy competition amongst employees
• Helping create a positive brand image of the organization
• Creating a common platform allowing employees to perform at their best
• Helping unify employees from different backgrounds
• Promoting healthy relationships between employees
• Extracting the best out of each individual

A strong organizational culture conveys the goals, beliefs, ideas, and appropriate behaviors to individuals within an organization in order for the organization to achieve its goals (Gupta,2009). Poorly structured organizations in the service industry need to adapt by making changes to their culture. Changing the culture of an organization can be a very difficult task to accomplish. Leaders of the organization need to facilitate the change by evaluating ineffective strategies and recommending new strategies (Gupta,2009). The leaders must promote the cultural values of the organization by conveying these values to all individuals in the organization and encouraging socialization among employees. By developing a strong, sustainable culture, organizations will extract the best out of their employees, become more efficient, and increase profitability(Gupta,2009).

References

Gupta, A. (2009). “Changing Organizational Culture”. Practical Management Retrieved from
http://practical-management.com/Organization-Development/Changing-organizational-culture.html

“Importance of Organization Culture”. Management Study Guide. 2013. Retrieved from
http://managementstudyguide.com/importance-of-organization-culture.htm.

How Quality Can Dictate Price in the Service Industry

In the service industry, one business basically provides the same service as another business. Take the valet business for example, they all take your vehicle and move it to a central location until you return, when the valet retrieves your vehicle and brings it back for you. This is the basic process for all valet services. So what can set one company apart from another? Simply stated, it is quality. It is the extras that they put into the service that separates one company from their competition.

Every service industry must understand what they can do for their customer that is above and beyond the basic service. This becomes even more important when you want to sell your service not simply based on the service you offer but also by the extras. These extras give you the opportunity to sell your service at a higher price. These extras to the service truly cost nothing on a day to day basis but add value to your customer. Yes, there is the potential for extra expenses in training the staff to complete these added touches to the service but generally they are limited and more than pay for themselves over time. However, these extras cannot be something that is simply talked about, they must be present everyday in the service. Not only will your current customers be looking for this higher level of service, your service can and will act as a form of advertising your service. This is truly how you dictate your price in the service industry. Offer added value to the basic service, provide those added values and let potential customers see the service in action.

In order to get to a point where you have control over pricing there are a few things you need to do. First, understand what your basic service is. This may seem like a simple thing but it is essential in determining what your extras are and what you can sell as extras. Second, what does your competition offer in terms of added value to their services? This is true in a business whether it be service, manufacturing or retail, you must know your competition. Third, really spend time determining what value added aspects you can provide in order to differentiate your company. Keep in mind that with the ever changing world of technology, this may be every changing as well.

In the global market of today and with competition being at such high levels, you have to find ways to take your service business to a level that sets it apart. As stated in the beginning, anyone can offer the basics, it is the extras that will help your business thrive and grow.