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Social Media Tools in E-Commerce
After researching different communication techniques that will strengthen our organization’s ability to make team projects more efficient and effective, we are pleased to have accepted the task of helping to launch a new e-commerce unit.
We believe that part of our organizational sustainability will be connected to our presence online, and to that end, we have done our due diligence to ensure that our presence will be felt in the social media world at large.
It is important to note that as organizations seek to develop an engaging social media presence with an e-commerce slant, an understanding about the pros and cons of social media will be paramount.
We have found that after such an analysis, organizations will be better suited to experience social commerce by strategically implementing social media elements such as networking links and forums directly within their virtual environments.
The following will outline our plan of attack for the development of our organization’s new e-commerce unit.
Specifically, we will seek to explain how new social media tools can be used to distribute messages to consumers and clients.
Also, we will examine which social media tools should be used in certain situations and discuss any ethical issues involved.
Finally, we will outline the formal documents needed to launch the new e-commerce unit to include the executive summary, business description, operations plan, financial plan, marketing plan and competitor analysis.
We are convinced that a social media presence will strengthen our organization to go beyond where we are, and among other things, we are excited to get started.
Social Media Significance
As the new e-commerce unit in our organization, we believe that the use of social media will undoubtedly lend itself towards growing our brand and connecting with new customers.
To that end, we specifically have discovered that the use of social media tools like Facebook, Twitter, YouTube, Digg, and Flickr will help to give our organization a more interactive ‘face’ that consumers and clients can virtually connect with.
In a 21st century economy, we are convinced that our involvement in the world of social media will not only ensure that our organization remains relevant, but it will also allow us to adopt a business model that will help our organization evolve to even higher levels of success.
In looking at the specifics, our strategy for utilizing social media will center on our ability to develop more of a personal touch and interaction with our consumers and clients.
We feel that this is important because our research has shown that the social media site, Facebook, has “more than 500 million users and controls over one-third of all Internet traffic.” (Stonehocker, 2010)
With such a large pool of potential customers and clients online, part of our strategy as we establish a presence in social media is to ensure that what we communicate completely lines up with our organizational values.
This is significant because we fully recognize that while there is a great opportunity for good, there is likewise a great opportunity for bad press.
Furthermore, as the vitality of social media continues to grow, we have also found that among other things, social media “is perceived by consumers as a more trustworthy source of information regarding products and services than corporate-sponsored communications…” (Mangold & Faulds, 2009)
In light of this, our plan is to establish and setup a positive and interactive presence on Facebook and Twitter with current information that we feel our consumers and clients might be interested in knowing, videos of customer experiences on our YouTube page, and current events and photos that can be accessed via Digg and Flickr.
By submerging ourselves into the creation of a realistic presence in social media, we are working towards exponentially expanding our organizational influence worldwide.
Not only that, but due to the widespread use of the internet, our organization is poised to take the next step forward in ensuring our organizational sustainability by adding new consumers and clients that are from various backgrounds and demographics.
In that vein, we are committed to begin to implement the use of these tools with both a strategic and tactical approach in mind.
How to Determine Which Tools to Use
The best ways to determine what tools a company should use is to determine the target audience that they desire to reach.
Not all of the available internet tools will reach every demographic or age group.
Online social tools like Facebook and Twitter are effective.
Even though e-commerce businesses are growing they still need to use various styles of media to reach potential consumers.
Tools like the commercial advertising spots are still vital in reaching shoppers.
Social networks such as Twitter and Facebook are soaring in popularity.
Many businesses have started using them to reach a large number of consumers.
This is a great idea for e-commerce.
The company must find out what the target market is and advertise to that specific group.
Facebook and Twitter have a younger following and the advertisements and promotions need to follow according.
There are still consumers out there that do not use social networks and then will miss out on potential shoppers if businesses focus only on those sorts of ventures.
Skype and Flickr are o they focus on an individual sharing to a smaller network.
These individuals that subscribe to them are not interested in the mass.
Many use these to keep in direct contact with specific people.
Companies can buy spots on the website and advertise reaching a more “relaxed” crowd.
By providing links this gives a business another demographic to reach.
Commercial advertising is still a vital key in reaching e-consumers. Many older individuals are not going to be using social networks or are possibly not interested in picture sharing or blogging with others.
These older consumers are still interested in online shopping and still will shop where they know the deals are.
These are three tools that e-commerce can use to determine how to reach e-consumers.
Age and demographic are important and tailoring how to reach the desired age or wanted demographic that a particular company is searching for.
Ethical Issues in Social Media
Ben Parr states, there are four common dilemmas that occur when a company utilizes social media ethics. “While ethics isn’t a black or white subject, the decisions you make could affect your company and your livelihood (2009)”. The first dilemma is the fine line of scamming. Parr says to remember to add value in return of promoting your product. Spam is never received well. Most of the time when consumers received Spam it is never opened and very rarely received well. Consumers will remember a company who continues to send spam emails in a negative way. Secondly, feuding with others on social media isn’t beneficial. With the likes of Twitter and Facebook, people can find themselves in a public dispute. Public feuds and calling people out will damage your reputation more than help it. Thirdly, don’t lie or mislead people. The core tenant of social media is its transparency. Once it’s discovered that you provide fraudulent information, your reputation is damaged. People can do their due diligence in research and find the truth.
Finally, Par says not to misrepresent the facts. If you don’t have the permission to use information, abstain from doing so. This can find you in legal trouble and possibly making enemies (June 2009). Social media brings security concerns for companies such as identity theft also known as cybersquatting. Consumers should take precautions and not provide information on unsecured sites.
Corporate lawyers say companies should devise a social-media policy. We’ve used a template provided by Baker & Daniels to incorporate in our organization. In adopting a social-media policy we would put in place the following to address the social media issues.
1. Remember the internet does not forget. Everything written on the web can be traced back to its author.
2. Avoid hazardous materials. Do not post or link to any materials that are defamatory, harassing, or indecent.
3. Keep confidentiality. Do not post any confidential or proprietary information in regards to the company.
4. Don’t promote other brands with the firm’s brand. Don’t promote your personal projects or endorse other brands, causes or opinions.
5. Indentify yourself. When relevant, identify your affiliation with the firm and your area of concentration. Do not misrepresent, disguise or conceal your identity by using another’s identity.
6. Do not appear to offer legal advice. Employees should not engage in providing legal advice or otherwise form attorney-client relationships.
7. Do not become combative. Refrain from retaliating due to negative comments or opinions.
8. Always remain truthful. Never lie and place the company in an unethical position.
Any employee who violates this policy or uses the electronic communication systems for improper purposes may be subject to discipline, up to and including termination.
E-Commerce Business Plan
An effective business plan will help the company secure capital funding from a lender to implement the technology changes. Several key components are necessary for writing a proper business plan. The purpose of an executive summary is to introduce the business strategy which also highlights the key points of the business plan (Roebuck, 2006. p. 211). However, one of the most important concepts to keep in mind when formulating a business plan and executive summary is to understand the audience.
Companies lay out goals from technology improvements, in respect to the enhancements of the company in their business description. The best way to lay out this portion is to start with the company’s vision and mission statement, clearly outlining corporate intentions. The mission of statement should be followed by a brief company history. This will develop where the company is going, and where they have been. Another importance is to introduce the executive management team, what their backgrounds are and what their roles will be during the implementation phase. Provide an organizational chart, in addition to, brief executive biographies.
The operations plan dives into the heart of the implementation plan. Determining the “how’s and where’s” of the program. When developing the operations plan, the following questions should be asked internally (Albo, 2008):
o How will the new technology serve both the company and the end user'
o Can the process be entirely described'
o How will the industry stay up to date' Who are the suppliers'
o How are products/services received from these organizations'
o How long will it take' How much will it cost'
Once these questions have been thoroughly investigated, and suitable answers provided, then the operational business plan can be written. Day to day tasks need to be detailed out in this portion of the plan. It should be assumed that the intended audience knows nothing of your business.
The operations plan should start with general information, such as the hours of operations and include details of: engine equipment and materials already available, any
and all associated program implementation costs. “Most business plans take several pages to flesh out this section of the operations plan” (Albo, 2008), but in some cases this portion may be dozens of pages, once flow charts and specifications are added.
It is crucial to carefully lay out a comprehensive financial plan while putting together a business plan. “The financial section should summarize the forecasted sales and expenses for the first three years and determine the investment needed which will indicate whether the business is truly feasible” (Roebuck, 2006, p. 212). In order to provide correct financial information, it’s important to know what documents to provide. According to E-Business Plan, “the financial plan portion of a business plan should address the follow cash flow, start-up capital, and of course profit” (2009). By providing these documents in the financial section of the business plan, the investor or potential business partner can make a more sound decision based on the history of finance documents provided.
Even though the company is implementing this technology for internal usage, a marketing plan must still be developed to promote the services internally. In this portion of the business plan, both the marketing budget and promotional plan must be outlined. The business plan should end on a positive note, concluding with a “statement of your company's sources of competitive advantage in the e-commerce marketplace” (E-Business Plan, 2009).
The competitor analysis should identify who the competition is, encompassing all possibilities, including past, present (both direct and indirect) and future competition. In comparing companies, it may be helpful to develop a matrix analysis. The key components of an effective business plan have now been outlined and discussed in detail. The company may choose to create their own business plan or contract our consulting company to provide them with one.
Conclusion
Regardless of the industry, it has become evident that organizations worldwide are developing and relying on various ways to use social media to promulgate their organizational objectives.
As our organization seeks to remain relevant, we understand the significance that social media will have in the company’s strategic foresight moving forward.
To that end, we have done our part to ensure that our communication and connectedness with the community at large will remain viable as we strive to increase our market presence in both the short and long term.
In sum, we have spent some time going over both the opportunities and the challenges that come along with social media and e-commerce.
It is our hope that as the executive management determines the next steps to take that our recommendations and research will be considered.
Specifically, we believe that as our organization considers the social media tools that are available and respect the ethical issues involved, the business plan that we have laid out can become an unequivocal reality.
As a result, our organization will begin to enlarge its presence in the market by connecting with our consumers and clients in ways that it never has.
References
Albo, B. (2008, March, 3).
Business Plan. Retrieved on February 27, 2011 from /article.cfm/business_plan
Kelley School of Business Indiana University. (2009). Social media: The new hybrid element of the promotion mix. Retrieved from http://japanfashionshanghai.up.seesaa.net/image/japanfashionshanghai-T12:32:54-2.pdf
Parr, Ben. (2009).Social Media Ethics: 4 Common Dilemmas. June 19, 2009. Retrieved on February 26, 2011 from /idea-hub/topics/technology/article/social-media-ethics-4-common-dilemmas-ben-parr
Roebuck, D. B. (2006). Improving business communication skills (4th ed.). Upper Saddle River,
NJ: Pearson Prentice Hall.
Stonehocker, A. (2010). Why and how to market your business through social media. Enterprise/Salt Lake City, 40(19), 10. Retrieved from EBSCOhost.Color & Design Courses
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