The current society makes use of technology that is constantly advancing and changing. The constant changes in technology can create a significant impact on how businesses conduct their activities. One of the aspects of technology that has impacted businesses significantly is social media. The internet and social media have become one of the ways which companies can interact with their consumers. Business can connect better with customers and realize better outcomes with their marketing efforts. Social media has had a significant impact on businesses and this can be seen through the analysis of the social media strategy of Tesla.
Pros of Social Media on Businesses
One of the key advantages of social media on businesses is that it can be used for marketing a company’s products and services. Social media marketing means that a new form of marketing has been introduced which makes use of community social networking. Sajid (2016) analyzed such a form of market and identified that companies can make sure that their marketing efforts connects with consumers on a deeper level. International companies too have benefited from the avenue created by social media. The availability of different social media platforms in almost every part of the world means that businesses have had their marketing efforts to have a global impact. Businesses that have promotional activities that are highly appealing to consumers benefit by having the promotion shared by the consumers themselves.
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The use of social media is at the center of a company creating and increasing its brand awareness. Brand awareness refers to the number of target people that know the existence of the company and know the products and services of a company. Social media has a wide audience reach of millions of users and having a strong social media presence is equal to having a high brand awareness. Companies that are able to create quality content that engages customers benefit by having an improvement in their brand awareness. Additionally, when companies engage with customers actively, this can be used to build the company’s reputation and improve brand awareness. Hutter et al. (2013) analyzed the use of different businesses to create brand awareness through social media. The study specifically established that the use of Facebook’s fanpage can have a positive impact on the brand awareness of a company. However, the study also indicated that the annoyance inherent in fanpages can result in negative effects in the involvement and engagement in the fanpage.
The use of social media is advantageous as it is a tool that businesses use to engage with their customers. Businesses today make use of various social media networks like Facebook and Twitter to connect better with their clients. The needs of the current consumer have changed and the modern consumer wants a company that communicates and speaks with them (Priporas, Stylos, & Fotiadis, 2017). The use of social media can be used to adopt the changes in the consumer. Companies can respond to customer questions, receive feedback on the nature of products, and connect with their customers. The interactions are usually publicly available and other customers that have questions regarding the company’s products can find the questions answered.
Small businesses have specifically benefited from social media by experiencing a rapid growth. Jones et al. (2015) examined the impact that social media has on small businesses. The study established that small businesses that did not have adequate marketing resources like big companies were able to benefit through the availability of a cheap marketing strategy through social media. Additionally, small businesses were able to reach customers on a global scale and engage in co-promotion which successfully enhanced the image of the small businesses in their specific regions. Small businesses were also able to grow quickly by experiencing an increase in new customers and having enhanced relationships with their customers.
How Tesla Motors Inc. Uses Social Media
One example of an organization that has used social media effectively is Tesla Motors Inc. Tesla Motors Inc. CEO, Elon Musk, has an active social media presence to communicate with customers. Elon Music can tweet several times in a month and most of his tweets usually contain something new and exciting information (Malhotra & Malhotra, 2016). There are several instances where he tweets about the release of a new Tesla product. For instance, he once tweeted that there would be a major Tesla product line that would be unveiled and the product was not going to be a car. The tweet gained a lot of attention even though it was not announced or advertised through any other communication outlet. There was a significant speculation regarding what the product would be. It later turned out that the product was a battery that would be used to power homes and charges using solar panel electricity (Malhotra & Malhotra, 2016). Various media outlets later joined in the discussion of the product.
Elon Musk has created a strong personal brand and used this to create a brand awareness for the company Tesla Motors. While Tesla has more than 3.1 million followers on twitter, Elon Musk has 23.4 million followers. Any tweet by Tesla or Elon Musk himself can reach a huge number of audience. This has enabled the company to cut down its marketing costs and personalized the company. A personalized brand enables consumers to connect better with the brands’ vision. Elon Musk has thus been the face of Tesla and customers become more trusting and comfortable of using the company’s products.
Ethical Dimensions of Using Social Media
There are ethical rules and guidelines that should follow the use of various social media platforms. Companies should ensure that they engage in truthful reporting and do not engage public bashing. Public bashing could involve responding negatively to customers and engaging in internet fights. Social media users can post negative reviews of a company and the company should be ready to manage the negative comments positively. Responding positively is based on the Jesuit Value of Magis. Magis involves embodying the act of discerning a greater good within a given situation in order to glorify and serve God. It is a value involving striving for excellence and striving for better. A company should thus ensure that its interaction with various individuals in social media should be used to realize a greater good. The company should ensure that it presents truthful information even when it has made a mistake with its products and services for the greater good of customers.
In conclusion, social media use has increased significantly over the past few years and businesses can leverage on this to improve their marketing efforts and brand awareness. The marketing strategy available through social media provides a way for customers to interact deeper with customers. It also presents a cheaper marketing alternative. Companies can also benefit by having a larger brand awareness. Tesla Motors Inc. is an example of an organization that has effectively made use of social media for its marketing efforts. Through the company CEO, the releases of company products are advertised on social media and reach a huge audience. Ethical guidelines should be used regarding responding to customers to ensure that it is for the greater good.
References
Hutter, K., Hautz, J., Dennhardt, S., & Füller, J. (2013). The impact of user interactions in social media on brand awareness and purchase intention: the case of MINI on Facebook. Journal of Product & Brand Management, 22(5/6), 342-351.
Jones, N., Borgman, R., & Ulusoy, E. (2015). Impact of social media on small businesses. Journal of Small Business and Enterprise Development, 22(4), 611-632.
Key Jesuit Values. (2019). Retrieved from http://www.regis.edu/About-Regis-University/JesuitEducated/Key-Jesuit-Values.aspx
Malhotra, C. K., & Malhotra, A. (2016). How CEOs can leverage twitter. MIT Sloan Management Review, 57(2), 73.
Priporas, C. V., Stylos, N., & Fotiadis, A. K. (2017). Generation Z consumers' expectations of interactions in smart retailing: A future agenda. Computers in Human Behavior , 77 , 374-381.
Sajid, S. I. (2016). Social media and its role in marketing. Business and Economics Journal , 7(203) http://dx.doi.org/10.4172/2151-6219.1000203 . Top of FormBottom of Form
