BBS102-Foundations of Information Technology

Part A: Case Study

Over 90% of medium and large businesses have used social media in their marketing for five years or longer. Yet the CMO Survey reveals that nearly half of marketers are unable to show the impact of their social media investments. That’s why, no matter what your social media strategy is, it’s always a good idea to go back and make sure you have the basics covered. Your company may discover that it needs a strategic do-over.

Philip Kotler once said, “You should never go to battle before you’ve won the war on paper.” But countless businesses have done just that with social media. Although 97% of Fortune 500 corporations are on LinkedIn, 84% are on Facebook, and 86% are on Twitter, many brands entered the social media front lines without a clear strategy. Social was an add-on to existing plans — another outlet to deliver the marketing message. Later, marketers found themselves working backward to connect their social strategy to business strategy, as managers demanded greater proof of ROI.

There are a few common mistakes that marketers make with social media. The first is to start with social media objectives. Marketers take a channel such as Facebook, Twitter, or LinkedIn, and then set goals for raising their numbers of likes, comments, and shares. This approach sounds like it makes sense, but it can trap you in a social media–only perspective. After all, how much is that like, comment, or share actually worth to your business? Unless you connect your social media actions to broader business goals from the beginning, ROI can be elusive, and social media becomes an end unto itself.

The second mistake is to limit your brand presence to the most popular social media channels. Success often depends on having a multichannel social media strategy. Yet only two-thirds of the Fortune 500 (66%) are using YouTube, under half are on Instagram (45%), just over one-third (36%) have corporate blogs, and one-third (33%) are on Pinterest. If you are not using these or other platforms, you could be missing out on valuable business opportunities.

For example, research has found that 93% of Pinterest users plan purchases on the platform and 87% have made a purchase after seeing a product they liked. Other platforms, such as Snapchat, may be the ideal place to reach certain demographics (say, Millennials). Instagram has played an integral role in helping to lift sales for brands including Gatorade. And businesses that have prioritized blogging are 13 times more likely to receive positive ROI.

So how do you ensure that your social media efforts are aligned with what matters to your company — and that you are positively contributing to the bottom line? Start by basing your social strategy on business objectives, then follow that by thinking about target market, social media platforms, tools, and metrics.

Your task is to discuss the issues and challenges associated with information systems reshaping industry:

1. Why are there so many marketers that are unable to show the impact of their social media investment? Provide 5 examples and discuss.

2.Why is the “brand essence” of a business important for social media channels? How does a multichannel social media strategy contribute to success?

3.When considering platforms - select four social media channels (e.g. Facebook) and discuss the application of the platform in the development of sales and brand equity.

4.In what ways does social media efforts positively contribute to the bottom line? How does social media contribute to ROI? Discuss.