Introduction
The use of technologies has become an important factor in business growth. This is due to the fact that it results to increased integration amongst the various parties involved. Currently social networking media in particular is a major consideration in business. However some of these technologies present diverse difficulties and risks such as with regard to security and privacy. This paper examines two social networking media namely Facebook and Wikis with the objective of illustrating how they impact business processes.
Definition of social media
According to Boon (2007), social media refers to the divergent online sources of information such as wiki’s, blogs and face book. These technologies are also referred to as the consumer generated media. They are created, initiated and circulated amongst the consumers with the objective of educating each other about the various product brands in the market.
How facebook and wikis can be part of business method
The use of wikis and facebook can be used to enhance the success of business organizations. Amongst the avenues that can be used to accomplish this is by integrating these social networking media within the firm’s integrated marketing communication strategy such as public relation. This would help in the unification of the various parties involved in business. These include customers, suppliers and financiers.
On the other hand the firm can integrate these social networking media in its promotion strategy such as advertising. This would result into increased competitive advantage for the firm.
Benefits of wikis and facebook in business method
Through the use of facebook, it is possible for the management of the firm establish an effective customer to business relationship. For example, through facebook, customers are able to post complains and complements in relation to the firms products and services. This means that facebook has enabled organizations to talk with their customers and not at them (Marie 2008). This has enabled the management obtain market feedback in relation to the goods and services. By gaining more insight of the consumers, the management can be able to formulate policies aimed at improving its products and services. For instance; Toyota Company has established a social communication network through the use of ‘open-road blogs’. This makes it possible for the firm to obtain market feedback (David 2008).
Through integrating wikis in its promotional strategy, the management can be able to increase its competitive advantage. This is through establishing company sponsored wikis where it can post adverts of its goods and services. By posting adverts on the wikis, the firm is able to reach a wide range of customers. This results into increased product and services awareness.
On the other hand, there is increased ease with which the firm can edit the information posted in the wikis. This is due to the fact that minimum expertise is required. This means that if the firm is constantly involved in product value addition through research and development, it can easily edit the product information posted in the Wikis. This makes it easier for the marketing department to conduct promotional activities.
Disadvantages of facebook and wikis to business processes
Despite the increased importance of facebook and wikis to business, they present a risk to business operation. This is mainly in relation to security and privacy of information (Bart 2008). The increased insecurity arises from the fact that the management does not have absolute control of product information that is communicated amongst the consumers. For instance; the customers may communicate negative information in relation to the firm’s products. This may result into a damage of the firm’s public image resulting into a decline in the level of sales culminating into financial loss. In order to rebuild its image, the firm will be required to invest more in public relation.
On the other hand, the use of wikis in a firm’s promotional strategy presents a risk. This is due to the fact that product information can be easily edited by the public. This means that the public would obtain distorted information from the company-sponsored wikis. Integration of facebook within internal communication of business can result into decreased employee productivity. This is mainly so if the employees are not monitored (Bart 2008).
Effect on other areas
Enhanced customer to customer relationship
Alternatively, facebook and wikis have enhanced the traditional mode of communication amongst the consumers that was mainly by use of word of mouth. Facebook and wikis have led to enhanced, customer to customer relationship. This is due to the fact that the consumers can communicate to thousand of product consumers globally.This is has resulted into an increase in the communication magnitude amongst the consumers (Marie 2008).
Increased product and services customization
Through the use of facebook and wikis, the firm’s management has been able to create customer communities who have the identical product and service needs. This makes it easier for the firm to conduct consumer market research aimed at developing products that meet their needs. This has made the customers to feel more engaged with the firm’s product. The effect is that there is increased product and store loyalty amongst the consumers (David 2009).
Benefits of facebook and wikis for customers in business method
In the recent past there has been a change in the consumer behavior. This is witnessed from the fact that the consumers have more trust on the wikis as a source of information to the traditional promotional strategies such as the radio. This means that through the use of wikis, the management of the firm has had significant influence on the consumer decision making process. This is due to the fact that social media results into increased sharing of information between the consumers and the business. The timely, effective and efficient supply of product and service information through facebook to the customers makes the consumer information search phase easier. This is advantageous to the consumers since there would be reduction in opportunity cost involved in the information search phase (David 2009).
Disadvantages of facebook and wikis for customers
Consumer to consumer communication through the use facebook can result into information distortion resulting into reduced credibility. This means that if the consumers rely entirely on information from other consumers in their decision making process, there is increased chances of errors.
On the other hand, the ease with which information in wikis can be edited presents a security threat to the consumers in relation to product information. If the management does not monitor the information in its company wikis, the consumers may end up decoding the wrong information.
Conclusion
In conclusion, business communication has been significantly impacted by the emergence of social networking media. The integration of social networking media in communication and promotion strategies is advantageous to both the consumers and the firm. The management is able to enhance its relationship with the customers. The management is able to satisfy the customer needs effectively leading to increased customer loyalty. The use of wikis also enables the management to increase product awareness. Wikis and facebook in business communication have a risk in relation to the security and privacy of information. This means that the management should consistently evaluate the information communicated through these social networking media. Considering the fact that technological environment is experiencing rampant changes, the management should be vigilant on the changes. This would enable it identify the various technologies it can integrate in its operation to achieve a higher competitive advantage.
Reference list
- Angelo, F. 2007, “communiqué: working on the same page.” Communiqué.
- Bart, P. 2008. “The pitfalls of social networking” Computer network managemen. Web.
- David, J.F. 2009, “Social media: the new element of hybrid promotion mix.” Harvard Business publishing.
- Kenneth, B 2008. “The impact of social media on sales”, Business to business.
- Marie, S. 2008. “The next generation in communication: bankers can harness the power of communication to reach key audiences.” Texas banking.