Social Media Impact on the Business

Introduction

Due to increasing competition in the global market, numerous organizations have resolved to advertise their products and services through social networking media. Facebook is one of the major social networking sites used by most managers who endeavor to improve the sales of their products. Besides, it is one of the social websites with the highest number of subscribers (Shah, 2007). Consequently, companies advertising their products on Facebook have enhanced their market reach and profitability. The major reason why most marketing managers have decided to advertise their products through social media is the cost-effectiveness attained. For instance, they are able to reach many consumers simultaneously while spending less on online advertisements. This is a vital provision in the context of marketing.

Components of a legally instituted social media marketing manager who utilizes social media outlets for consumer transactions

Marketing managers use various mechanisms to advertise products through social media. The first mechanism is having a general experience regarding the use and risks of online marketing. This helps in determining the number of potential customers to be reached through the novel marketing procedures. The other mechanism is using more advanced methods of advertisement compared to other companies producing similar products. Online advertisements make products more known to the global market. Consequently, the concerned companies are able to increase their sales and realize more profits (Wollan, Smith and Zhou, 2010). Most of the marketing managers have decided to train their juniors on how to use social media in advertising their products and services. They are majorly taught how to create social media marketing plans that can attract many consumers.

Additionally, they are also taught how to build up a social plan that works out appropriately. To effectively avoid the risks involved in social media marketing, most managers have decided to carry out an assessment of the existing social media resources and establish the one that is most appropriate. The selection is majorly based on the interests of different companies (Moeller, 2010). Additionally, they assess how various social media operate including their advantages and disadvantages. Before choosing the appropriate social marketing media, marketing managers have also resolved to develop some mechanism of following and answering various complaints from customers. To mitigate the risk involved in doing business in cyberspace, most companies have drafted some guidelines for their workers regarding the application of social media. Considerably, numerous businesses have managed to make critical decisions on matters that concern technology. This occurs with regard to the market demands and the new business trends. Technological approaches in the business realms have simplified the business aspects in varied contexts. The mode of transaction, production, and communication among the business stakeholders has improved considerably due to the emergence and embracement of technology. This is a fundamental provision in the context of social media (e.g. Facebook) and its use in the marketing realms.

Methods of alternative dispute resolution and the ways of solving the disputes

Social media advertisements have numerous disadvantages. In this context, most customers do not prefer making payments online since they hardly trust the functionality of such transaction provisions. Concurrently, there are limited security improvements made. Conversely, most organizations advertising their products through social media have employed various methods to protect their consumers and solve their problems. Before settling on a particular social media to be used, they have to evaluate the risks involved (Kaufmann-Kohler and Schultz, 2004). This will ensure that they go for the one which is mostly trusted by many customers. To effectively solve various disputes raised by the customers, a number of organizations have developed an immediate response technology. Consequently, this makes the consumers feel more secure when making transactions online. In some cases, customers are required to register as members of a given organization they are planning to trade with to ensure that their transactions are secure. They are provided with some security number which they can use to log in to and out of the account of the organization of their interest. Additionally, they have also integrated some ways of assessing the risks that are always incurred by the customers. Through technology, this provision can be used to establish creative and functional marketing aspects in the business quarters.

How federal government can best control consumer transactions on social media

The federal government should ensure that the Federal Trade Commission (FTC) is enacted to effectively control consumer transactions on social media. Implementation of the FTC will ensure that organizations using social media are held responsible for any complaint raised by the customers (Moeller, 2010). Besides, it is also important since it ensures that the companies are equally treated. This favors the aspects of healthy competition. The federal government is also not supposed to introduce strict rules on personal data applications on the internet setting. Moreover, this will ensure that customers’ rights to use the internet are fully protected.

A new legal perspective that the federal government can employ to control online transactions and Facebook use to incorporate the enactment of policies that would curb cybercrime and enhance integrity in social media use. Additionally, some laws enacted within a country might affect the business endeavors of a particular business. It is vital to scrutinize the legal issues that operate within a given business territory as indicated before. Online businesses have the mandate to identify, scrutinize and consider whether the stipulated federal regulation will favor the prospected business or not. This is important to numerous instances. The laws that govern a given state might be influential to the business and the business people. Concurrently, there are legal matters that do not favor exportation, importation, and local production of some commodities. A business can be affected massively by the mentioned trends. This is s crucial phenomenon in varied aspects (Wollan, Smith and Zhou, 2010).

Evidently, substantial, conventional, and effective legal factors incorporate laws on the security of social network users. New businesses require that premises they operate in and all their respective operations observe stipulations regarding the security measures. This legal provision might disfavor a business, which cannot conform to the stipulated legal demands. Additionally, the need for more governance might dictate the kind of legal frameworks to be enacted within the social networks. There is federal legislation meant to streamline the aspects of an online competition to eliminate the elements of antitrust activities. This requirement will help the social network organizations to make viable considerations and remain competitive within the market. Another legal provision that a federal government must consider is the territorial and restricted use among the targeted users. The mentioned provisions indicate how the federal government can best control consumer transactions on social media.

Branches of government that can effectively regulate consumer transactions through social media outlets

The Federal Reserve Banks have been used by the American government to effectively control consumer transactions via social media. They majorly control some of the monetary/transaction services done through social media. The other branch of the government responsible for the control of internet transactions is the Board of Directors (Shah, 2007). They majorly control some of the banking agencies. Federal Financial Institutions are also responsible for transaction control. They mainly inspect banking organizations and control their transaction rates. Lastly, government legal and monetary directions are critical for the transparent growth of businesses. They help the concerned businesses to adjust to market demands as they seize new online opportunities. This is a critical provision in the context of social media and its use in the marketing realm. Precisely, the government can effectively regulate consumer transactions through social media outlets.

The relationship that exists between the social media provider and businesses that utilize the site for advertising

Both the company and the social media provider are able to benefit from online advertisements. The network provider is able to obtain some percentage of the transactions while the organization using their social site is able to receive more customers. Consequently, the company is able to realize more sales and profit. Precisely, the relationships that exist amidst the social media provider (Facebook) and other businesses are diverse. The use of social networking sites (including Facebook) is growing rapidly in the marketing, consumer, and social sectors. The website has revolutionized the marketing sector tremendously with more emphasis on “consumer behavior”. This provision intends to unveil how Facebook advertising techniques influence the behaviors of consumers (both young and old) when making decisions on what to purchase. This indicates the relationship that exists between the social media provider and other businesses that utilize the site for advertising. It is vital to understand that a social network site regards the virtual groups/provisions on the internet that enables various users to network and exchange different interests and events. Members of these sites communicate through email as well as prompt messaging provisions among others. For instance, Facebook, Twitter, MySpace and Bebo are the most popular social networking sites. Facebook is a social network site offering various utilities to its operators while facilitating social communication between them. This also indicates the relationship that exists between the social media provider and other businesses that utilize the site for advertising as mentioned before.

The major elements of Facebook include status updates, friend’s space, individual information, and news feeds (Kaufmann-Kohler and Schultz, 2004). Currently, Facebook alone has well over 500 million users worldwide who can access online adverts. Therefore, it has become very promising to make advertisements on these sites to be able to reach a wide audience. Social networks offer a rapid and stress-free means not only to exchange information but also to share experiences globally. This has enabled social networking sites to help their users in several ways far more than the traditional purposes for which they were created. Facebook has marketed various products to many people globally (Shah, 2007). This also demonstrates the relationship that exists between the social media provider and other businesses that utilize the site for advertising In addition, the products have become easily accessible and making purchasing decisions has also been eased by the guidelines provided. Besides, making advertisements in social networks such as Facebook is very affordable to users. Due to its importance, Facebook has attracted a lot of attention from various researchers who are trying to find the influence of these social network sites on the lifestyles of different people. This study, which tries to find how Facebook advertising techniques influence the behaviors of consumers when making decisions on what to purchase, is an example of such research.

Conclusion

The use of Facebook is increasing rapidly in the marketing arena. The website has revolutionized the marketing sector in regard to “consumer behaviors”. It is vital to understand how Facebook advertising techniques influence the behaviors of consumers when making decisions on what to purchase. This might in turn influence their choices as consumers in the realms of decision making and product preferences. Contextually, the marketing managers use various mechanisms to advertise their products through social media as indicated before. Firstly, they need to have a general experience regarding internet use and the risks involved. This helps in determining the number of potential customers to be captured through social media. Concurrently, there is a need to use more advanced methods of advertisement for better competition. Marketing experts use various mechanisms to advertise their products through social media. In other contexts, the Federal Reserve Banks have been used by the American government to effectively control consumer transactions via social media as mentioned before. They majorly control some of the monetary and transaction services done through social media.

References

Kaufmann-Kohler, G., & Schultz, T. (2004). Online dispute resolution: Challenges for contemporary justice. The Hague: Kluwer Law Intern.

Moeller, R. R. (2010). IT audit, control, and security. Hoboken, NJ: Wiley.

Shah, A. (2007).Local public financial management. Washington, DC: World Bank.

Wollan, R., Smith, N., & Zhou, C. (2010). The Social Media Management Handbook: Everything You Need To Know To Get Social Media Working In Your Business. Hoboken: John Wiley & Sons, Inc.

How to Cite This?

Choose the style

Reference

NerdyRoo. (2022, May 10). Social Media Impact on the Business. Retrieved from https://nerdyroo.com/social-media-impact-on-the-business/

Work Cited

"Social Media Impact on the Business." NerdyRoo, 10 May 2022, nerdyroo.com/social-media-impact-on-the-business/.

1. NerdyRoo. "Social Media Impact on the Business." May 10, 2022. https://nerdyroo.com/social-media-impact-on-the-business/.


Bibliography


NerdyRoo. "Social Media Impact on the Business." May 10, 2022. https://nerdyroo.com/social-media-impact-on-the-business/.

References

NerdyRoo. 2022. "Social Media Impact on the Business." May 10, 2022. https://nerdyroo.com/social-media-impact-on-the-business/.

References

NerdyRoo. (2022) 'Social Media Impact on the Business'. 10 May.

Copy this

One of the best students granted us this essay, so that we share it with you. If the paper can be helpful for your studies, feel free to use it but don’t forget to cite it correctly.

Are you the author of this work? Did you change your mind and wish it to be deleted from NerdyRoo? Contact us here.