Why Do Companies Use Social Networking?

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The general direction of most literature I sourced is the importance for companies to shift towards having a broad social networking presence, especially on Facebook. This is not just true for large companies like Apple, but true for every sized companies. Social Networking has become a powerful outlet for companies to obtain their target market. According to (Statista, 2016), the global share of companies taking advantage of social media marketing is around 97%. The noticeable benefits of using social networking is building real and strong customer relationships, also improved loyalty and brand recognition.

A factor identified which is important to point out, is the ignorance Apple has shown towards using Social Networking. The first instance was in 2013, Apple’s marketing sector was unstable and Apple started considering alternatives to accompany its long running ad agency. Due to Apple’s failed lawsuit against Samsung in 2014, claiming Samsung violated five Apple patents (Smith, 2014). Consequently, some of Apple’s Emails exchanges around the time of the lawsuit were leaked for public consumption. One email exchange that is of interest was
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Facebook gives companies the ability to interact with a larger pool of customers and more often than approaching these customers through emails, meetings or phone calls (Luke, 2009). The biggest advantage of using Facebook for companies is reducing costs for marketing. Companies are always looking for ways to reduce spending, and Facebook is the obvious way for them to market and cut costs in the 21st century. Communication costs have dropped rapidly because of Facebook, allowing companies to communicate fast, direct and regularly with a mass number of individual customers (Palmer & Koenig-Lewis,

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