As we know, the term social media refers to media created by users. It is also important to notice that social media differs considerably from mass media. For example, mass media is relatively cheaper than mass media. Usually it is more expensive to communicate something buy using newspapers, television or radio than using some sort of social media. Furthermore, the user interaction is really important in the social media while users can not participate actively in mass media. Despite these differences, I think that the most interesting common characteristic between these two types of media is that they can persuade a huge audience.
After establishing some differences between social media and mass media, we have to say that social media has increased its popularity over the past few years. Nowadays lots of companies are using social media as a way of gaining insights and create customer experiences. We could talk about different kinds of social media applications such as blogs, social networking applications, photo sharing applications, but I will focus on video sharing applications.
Companies usually use their own websites in order to promote their products or services. However, they know that if they use the Web 2.0 concept, they can persuade more people. Probably, the best example and the most successful video sharing application is Youtube. Everyone knows that this social media application is an incredible marketing tool. Firstly, we could say that its main advantage is that it totally free; it has no cost for the user. Another point worth mentioning is that the message can flow really quickly and crate buzz.
Talking about social media in general, it is important to notice that they are not only useful for companies. A particular person, an association and other kind of entities could use these applications. For example, I know and interesting case about the Lleida city council. Lleida is a small city from Spain which has just built an airport. The city council has published a video in Youtube in order to promote the airport. They believe that the airport will attract more visitors and professional talent to the city.
Finally, regarding http://www.google.com/press/zeitgeist I have to say that it is a really interesting tool. I believe that the “Trend for Websites” is a very useful tool because you can see visitors by region and related sites visited. With this information you can learn customer’s preferences by region. “Google Trends” is also an incredible tool. If you are doing marketing research on a topic, you could know how relevant that topic is today.
In conclusion, Web 2.0 is playing a main role today. If companies know how to use these applications in a proper way, they could persuade more customers. Furthermore, not only companies can use these tools. Also people and other entities can use social media applications as promotional tools.
martes, 10 de noviembre de 2009
martes, 3 de noviembre de 2009
BLOG 4
Nowadays there are a lot of companies which use technology in order to capture data about their consumers. Then, they use this information to better fulfill their needs. Some companies have improved considerably due to the captured data. However, some people are worried about privacy issues.
First of all, I have to say that I am not a client of Wal-Mart because in Spain there are not Wal-Mart stores. For this reason, I do not really know if they have been successful at converting the data into an experience. Obviously, the best way to evaluate Wal-Mart’s improvements is to talk with their clients. They will tell you if the company has improved as a result of the data captured about their shopping habits.
Another point worth mentioning is privacy. Sometimes it is difficult to imagine the information that companies store about their consumers. For example, as we noticed when reading the article, Wal-Mart has access to information about driver’s license and Social Security numbers, geographic proclivities, etc. That fact means that Wal-Mart considers data as a priority. But, the problem is that some consumers are concerned with privacy.
In my opinion, it is reasonable that companies use some information about their consumers in order to better satisfy their needs. If companies use this data to improve their products and services, consumers will be willing to pay more because the products and services will have more value. As a result, companies could increase its profitability.
Despite of these advantages for clients and also for companies, I think that some limits are needed when capturing data from consumers. In my opinion, it is not justifiable that companies such as Wal-Mart have information about court dates, creditworthiness, etc. I also think that transparency is crucial. That means that consumers should know what kind of information the company store about them. For example, I think that “data enhancement” could be risky for consumers. As we learned from the article, data enhancement consists of capturing additional information from consumers buy using consumers’ name and address or telephone number.
Talking about the particular case of Wal-Mart, I do not really know if the company is using the data in a proper and coherent way because I have never bought in Wal-Mart and I have never give information about me to the company. Before giving personal information, I think that is very important to trust the company.
Finally, another interesting point to consider is the supply chain. As we know, Wal-Mart is using the strategy “every-day low prices” and it is always looking for efficiency. Consequently, Wal-Mart has reduced profitability of its suppliers. In my opinion Wal-Mart could use the technology to help suppliers. Given the huge amount of data that Wal-Mart has, it could provide information to their suppliers in order to establish better relationships.
In conclusion, technology is playing a main role in business. Lots of companies use the technology to capture data and better satisfy their consumers’ needs. Probably, this trend will be beneficial for consumers and companies. However, companies should be aware that they have to use this information in a proper and coherent way. If not, they could lose consumers.
First of all, I have to say that I am not a client of Wal-Mart because in Spain there are not Wal-Mart stores. For this reason, I do not really know if they have been successful at converting the data into an experience. Obviously, the best way to evaluate Wal-Mart’s improvements is to talk with their clients. They will tell you if the company has improved as a result of the data captured about their shopping habits.
Another point worth mentioning is privacy. Sometimes it is difficult to imagine the information that companies store about their consumers. For example, as we noticed when reading the article, Wal-Mart has access to information about driver’s license and Social Security numbers, geographic proclivities, etc. That fact means that Wal-Mart considers data as a priority. But, the problem is that some consumers are concerned with privacy.
In my opinion, it is reasonable that companies use some information about their consumers in order to better satisfy their needs. If companies use this data to improve their products and services, consumers will be willing to pay more because the products and services will have more value. As a result, companies could increase its profitability.
Despite of these advantages for clients and also for companies, I think that some limits are needed when capturing data from consumers. In my opinion, it is not justifiable that companies such as Wal-Mart have information about court dates, creditworthiness, etc. I also think that transparency is crucial. That means that consumers should know what kind of information the company store about them. For example, I think that “data enhancement” could be risky for consumers. As we learned from the article, data enhancement consists of capturing additional information from consumers buy using consumers’ name and address or telephone number.
Talking about the particular case of Wal-Mart, I do not really know if the company is using the data in a proper and coherent way because I have never bought in Wal-Mart and I have never give information about me to the company. Before giving personal information, I think that is very important to trust the company.
Finally, another interesting point to consider is the supply chain. As we know, Wal-Mart is using the strategy “every-day low prices” and it is always looking for efficiency. Consequently, Wal-Mart has reduced profitability of its suppliers. In my opinion Wal-Mart could use the technology to help suppliers. Given the huge amount of data that Wal-Mart has, it could provide information to their suppliers in order to establish better relationships.
In conclusion, technology is playing a main role in business. Lots of companies use the technology to capture data and better satisfy their consumers’ needs. Probably, this trend will be beneficial for consumers and companies. However, companies should be aware that they have to use this information in a proper and coherent way. If not, they could lose consumers.
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