Benefits Of Social Media

2139 Words 9 Pages
Register to read the introduction… A business's ultimate goal is to achieve competitive advantage, "Doing things better than your competitors, charging less for superior product, and responding to customers and suppliers in real time all add up to higher sales and higher profits that your competitors cannot match" (Laudon, 2009, p. 13). Social media provides businesses with an opportunity to gain competitive advantage. The research reveals that businesses utilizing social media reduce marketing expenses, generate more revenue, increase the response time to customer needs and connect with their customers on a closer level, generating customer …show more content…
A company increases its revenue through social media by targeting the right customers and connecting directly to them. Customers and potential customers using the Internet produce searchable content. Laudon explains, "People spend hours surfing pages, checking out other members, and exchanging messages and they reveal a great deal of information about themselves. Businesses harvest this information to create carefully targeted promotions that far surpass the typical text and display ads found on the web. They also use the sites to interact with potential customers. The ability to deliver digital goods and digital content over the Web has created a new alternative to traditional print publications and broadcast media" (Laudon, 2009, p. …show more content…
The customer, through social media, develops a closer relationship with the business or the product.

Once a business establishes these relationships and current customers have the business's fan page attached to their personal profiles, other customers see it, and their friends and other contacts will see it as well. A business risks spending money on ineffective advertising/marketing and losing customers by not utilizing social media as an e-commerce technology. Social media is a no-cost tool and widely utilized. Customers want the connectivity and interaction that social networking provides. If a business decides against using social media, customers may move on to its competitor.

Business Technical Approach
SFWT currently does not utilize any technology for marketing purposes. SFWT solely relies on its current customers and word of mouth. The company has gained more customers over the past few months but have not reached the level that the owner would like to reach as of yet. The owner, Kariem Abdul, has decided to create fan pages on Facebook as well as to use Twitter and Instagram to promote his restaurant to a larger

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