It is no longer possible to discuss a comprehensive marketing strategy in 2010 without bringing social media into the discussion. The Internet is evolving and these new technologies are undoubtedly changing consumer behavior. Organizations that embrace these new connections, conversations and tools appropriately will gain a competitive advantage in the marketplace.

Defining Social Media

It is a question asked by both marketing professionals and consumers. With media and technology rapidly evolving, it becomes more and more difficult to decide the definition of the term social media.

The authors of "Users of the World, Unite!" define social media as a "group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content" (Kaplan and Haenlein, 2010).

However, Brian Solis, one of the most published authors in new media, defines social media as "the democratization of information, transforming people from content readers into publishers. It is the shift from a broadcast mechanism, one-to-many, to a many-to-many model, rooted in conversations between authors, people, and peers" (Solis, 2010).

As social media moves toward ubiquity, it becomes largely misunderstood, thus guiding many practitioners away from their true opportunity and purpose. Although practitioners may differ on their definitions of social media, it is important to remain true to a singular definition and purpose.

Social media marketing generally incorporates individual elements from each of the social Web's three separate arenas (Evans, 2009):

• Social platforms: This category includes personal social networks, such as Facebook and MySpace; white-label social networks, which are online communities created by individual companies or other organizations; and wikis, which include collaborative websites, such as Wikipedia.
• Social content: This category includes blogs, microblogs, photo and video sharing, and audio podcast sites.
  
• Social interactions: This category includes e-mail; text messages and other social feeds; calendar and event services; and status notices.

Nevertheless, it is important to realize that the technology is simply technology; the tools will change; the networks will evolve; and mediums for distributing content will grow.

Though the definitions and tools may change, one principle remains: transparency. According to Evans (2008), the greatest mistake a company can make on the social Web is to try to deceive online users about identity or purpose. Evans offered the following tips:

• Never join an online discussion about your company to attempt to play the role of the disinterested party.
• Never pay someone who is supposedly independent of your company to blog or comment favorably about it.

These actions have dire consequences. In 2005, Wal-Mart made this mistake with a fake blog campaign entitled “Wal-Marting Across America.” Wal-Marting Across America was written by two Wal-mart enthusiasts who decided to travel across America and blog about their experience as they visited Walmarts along the way. While the two people actually did travel across America for the purpose of the blog, it was later revealed to be paid for by Wal-mart.

As businesses choose to participate in new media, the key ingredient to maintaining transparency is realizing that marketing is less about the company and more about how customers can succeed in their business or how people can simply improve their personal lives. Social media is about building a community around consumers. The rest are just tools to facilitate the conversation (Solis, 2010).

Social Media and the Marketplace

Today, a constant theme in marketing is the sustained balance between the pursuit of new influencers and the incorporation of verified traditional methods. This relationship is the foundation on which a new communication bridge between companies and customers is built.

In his most recent book Engage!, Solis (2010) explains the ways in which social media has impacted the marketplace:

• Rewired the process by which consumers share experiences, expertise and opinions.
• Broadened the channels available to consumers who seek information.
• Changed how companies approach markets.
• Altered how companies develop products.
• Remodeled the processes by which companies connect with and show appreciation for their customers.
• Transformed the method of influence, augmenting the ranks of traditional market experts and thought leaders with enthusiasts and innovators who self-create content-publishing platforms for their views.
• Facilitated customers’ direct engagement in the conversations that were previously taking place without their participation.

Changes in American Business Culture

A fundamental shift in American culture is underway and is creating a new landscape of influencers, as well as changing how we define influence (Solis, 2010). However, new media is constantly evolving and has hardly revealed its true impact across business and marketing industries. Nonetheless, it is clear that new media is going to become more pervasive, thus becoming a critical factor in the success or failure of any business.

Bulmer and DiMauro (2010) conducted a study that measured respondents’ perceptions of and experiences with social media. Their research survey was completed by 356 professionals, with 23 percent of respondents identifying themselves as CEO of their organization; 50 percent as Director; and 24 percent as Manager.

The key findings of the study included:

·         Professionals tend to belong to multiple social networks for business purposes.

·         The “Big Three” social networks, LinkedIn, Facebook and Twitter, have emerged as professional networks.

·         Mobile is emerging as a frequent professional networking access point.

·         Traditional decision-making processes are being disrupted by social media.

·         Professional networks are an increasingly essential decision-support tool.

·         High levels of trust exist in information obtained from online networks.

·         Changes are taking place in organizations’ internal and external use of social media.

·         There is a recognized need for peer input in decision-making.

·         Connecting and collaborating are key drivers for professionals’ use of social media.

According Bulmer and DiMauro (2010): “Social Media Peer Groups (SMPG) have changed the way we do business as professionals (customers, partners, prospects, and employees). We use social media as a platform for discussion of ideas, experiences, and knowledge-exchange.”

As the business world enters the era of business-to-person (B2P) customer relationship systems, those organizations that take advantage of Web 2.0 technologies and SMPG platforms to enable B2P communications will be the winners in the global marketplace. Those businesses that do not understand the value of social media and its appeal to the emotional side of customer relationship management will lose competitiveness in the marketplace. Moreover, they will lose the ability to connect and learn from their customers.

For example, Jeff Swartz, President and CEO of the Timberland Company, uses his Twitter account networks by tweeting about his life and social issues, rather than the shoes his company makes. In an effort to make a connection with consumers, he links from his Twitter account to Timberland’s Earthkeeper project, which supports environmental awareness, rather than to the company homepage.

Other large companies, such as Southwest Airlines and Comcast, are using Twitter to address customers’ concerns. Since bad customer experiences and reviews are broadcast just as fast and just as easily as good ones, it is important for companies to pay attention to the one-on-one customer relationships forged via social media.

Though its impact cannot yet be precisely measured, new media is not a marketplace trend—it is a mainstay. The businesses that choose not to listen to their customers and participate in their lives will lose. On the other hand, the businesses that harness the potential by learning and connecting with consumers will ultimately win a more competitive place.

Bulmer, Donald & DiMauro, Vanessa. (2010). The New Symbiosis of Professional Networks: Social Media's Impact on Business and Decision-Making. Society for New Communications Research. 

Evans, Dave. (2008). Social Media Marketing. Sybex.

Kaplan, A. & Haenlein, M. (2010). Users of the World, Unite! The Challenges and Opportunities of Social Media. Business Horizons, 53(1), 59-68.

Solis, Brian. (2010). Engage! The Complete Guide for Brands and Businesses to Build, Cultivate and Measure Success in the New Web. New York: John Wiley & Sons, Inc.