Chapter 5 of Shel Israel's Twitterville deals with how customers can now have a major impact on the marketing strategies used by companies thanks to Web 2.0 tools like Twitter. Back in the day Companies conducted their marketing divisions without really listening to customers. I am not going to say that customers had no say but compared to now, we can say that customers were neglected. Israel takes note of how Best Buy believes customers control their destiny. I feel like in recent history, many companies have forgotten that customers are the factor that thrives their business. If companies still don't realize this, Twitter is here to remind them. Pepsi and Moltron had to learn the hard way that if they disappoint their customers, there will be a public out lash which will hurt business. Companies will be forced to have to solve the problem so they can get back into good graces with their customers. Social media allows companies to get feedback from their customers. This feedback teaches companies about their customers and how to or not to market to them. We live in a social world where people constantly talk. Word of mouth can be more effective than direct marketing. If companies can effectively use Twitter to get customers to talk about their products, then they will be able to cover all bases. They will be able to reach the same market with their direct advertising and they will reach an even greater number of people through social media and then they will get people to talk amongst themselves. A price cannot be put on multitudes of people talking about your product and telling all of their friends. When people talk through Web 2.0 about products, it is really powerful. People being able to share thoughts, pictures, and videos is an entire new revolution that is changing the way business will be done forever. I wonder if tools like Twitter will in the future 100% influence the marketing of products? I liked this chapter of Twitterville but I feel like at this point in the course, the material is starting to get really repetitive. This was a good read but I can only give it a 6/10.
Old Article and Source but worth a read. It shows the scope of how many companies are engaging in social media.
I absolutely agree with you that social media has changed the way many companies interact with their customers and also how customers interact with one another. However, stepping back from the hype, I'm not convinced that Twitter or other social media tools will be the end all and be all of marketing. I think it will remain an important communication vehicle with customers and will continue to elevate the expectations customers have of service, but I don't think it will be the only - or even most important - factor that customers consider when they make a purchase. For instance (and I apologize for the girly example), the nail salon I have been going to for the past year and a half has no presence on any social media channel. The only time I interact with that business is when I physically go there. The salon has never sent a coupon or other discount, and even when I receive coupons from other salons, it's not enough of a carrot to make me switch. Ultimately, why I continue to go back time and time again to the same salon is because I am highly satisfied with the services/end product I receive. Perhaps this speaks more to the small size and high localization of the business and whether social media provides value to companies with those attributes. Regardless if WOM is tweeted or spoken, it is a very powerful marketing mechanism.
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