Social Networks in Marketing Essay Example | Topics and Well Written Essays - 4000 words

Social Networks in Marketing - Essay Example In turn, the relationship between consumers and branding is arguably paramount in determining the centre of how value should be marketed to retain and persuade new customers (Merz, He & Vargo 2009). Therefore, the increase of consumer power arguably forces organisations to undertake a more lateral approach to marketing as opposed to merely focusing on competitors (Avlonitis & Indounas, 2007). This argument is reinforced by the proposition of Weinberg et al that organisations shouldn’t assume what the customers want, but that it is imperative for organisations to add value in addressing consumer needs to survive in the multi-channel marketplace particularly in light of the growing influence of social networking on consumer choice (2007). With regard the contemporary business environment the application of CRM is also impacted by the increase of online business and in particular social networking (Cova, 2006). The ecommerce business model has dramatically reshaped consumer consu mption and the classic bricks and mortar business mantra of â€Å"location, location, location† (Chaffey, 2006). ... Therefore it is important for businesses to understand the internet medium to apply CRM effectively in the current retail climate with reference to the power of social networking. This is particularly important in light of the strategic driver of the internet medium being information sharing and increased knowledge as highlighted by the social networking phenomenon (Cova, 2006). For example, the incoming of the second media age and multiple digital platforms has created new societal trends and business opportunities through the multimedia business model, which has challenged pre-existing methods of information dissemination (Volmer & Precourt, 2008). On one side of the spectrum this has led to increasing commercialisation of the customer, which is further reflected by changing consumer habits and multi-chain retail strategy (Volmer & Precourt, 2008). On the other side of the spectrum, the digital era has redefined how the people interact with each other, thereby marking a shift in so cietal relationships and trends, which in turn informs cultural norms and enables innovation in building consumer/business relationships where the objective of marketing strategy should be to ensure that consumers are at the core (Beckett & Nayak, 2008). This paper critically evaluates the impact of social networking on marketing strategy. It is submitted at the outset that whilst increase of consumer control has been acknowledged in academic discourse, there has been some debate as to the role of social networking and its inclusion in marketing strategy to reflect increased consume power (Saren, 2007). For example, Brown (1992) had argued that the postmodern socio-economic paradigm has led to an increased focus on marketing