Let us suppose your current annual sales are $1 million. You implement social media strategy and begin generating $200,000 in revenue through your Facebook page. At the end your sales are still $1 million. Was your social media strategy successful? Why or Why not?
Any social media strategy that can increase organisation’s revenues presents as an effective strategy for success in the modern world. Although the organisation will not increase its sales, adoption of a social media strategy will invite various positive impacts to the company’s development. Economists and business analysts observe that a strategy that increases the organisation revenue or competitive potential is likely to increase its profitability and productivity. The core purpose of any profit making organisation is to generate enough revenue that can cater for its production and operation cost without compromising its profits. The increase in the revenue without increasing the organisation sales indicates that the social media strategy is helpful in promoting the image of the organisation’s brand. This result to increased returns as the company’s products trading index establishes (Samir, 2006). It is therefore apparent that a strategy that makes an organization get more revenue without increasing its sales is highly beneficial.
In most instances, social media strategy incurs a cost of meeting the interest of all actors who are involved in the management of the strategy. Scholars refer this cost as a variable cost. Social media managers are the individuals who establish and control social media platforms. The process of recruiting social media managers increases the cost of implementing social media strategy. Furthermore, social media managers are some of the highly paid professionals in social media sectors. Marketing also requires the recruitment of effective professionals who have the ability of adopting reliable marketing plan. Some of the strategies used by marketing professionals are also costly thus demanding for additional resources. Other professionals that require to be adequately compensated in social media strategies include front line staffs, senior executives, human resource managers and legal professionals (Rheingold, 2002).
The creation content that fits in social media services also requires resources from the participating bodies. Researchers describe the content cost as variable cost since it varies from one social media to another and from one product to another. The promotion of social media and the adoption of the content that fits the interest of different social media users are some of the costs incurred while generating social media content. The branding costs are on the other hand described as fixed cost. Creating special brand that fits social media features and the adoption of effective branding element are some of the factors that result to increased costs while using social media strategies. Other cost that are critical in social media strategies include searching cost, analytic cost, and technology costs,
Social Media Strategies to Deal with a Loss
Business entities should adopt product recall strategy to regain organisation position after encountering huge loss. This strategy is sustainable and effective of regaining the lost image especially in huge organisations. The method also reduces various risks that characterize scenario which include legal risk and the risk of losing customer loyalty. The product recall strategy is also effective in facilitating the adoption of reliable communication mechanism between potential customers and the organisation’s top management (Rheingold, 2002). The adoption of faster and reliable communication and interaction strategy is effective in protecting continuous loss of organisation loyal customers. In the contemporary corporate world, huge business entities such as Similac and Toyota have used product recall mechanisms to survive in the modern market. The product recall mechanism is helpful in creating customers trust and building the organisation’s repetition and productivity.
Would you be better off by just “waiting for it to get over” or “by sticking your head in the sand”? Why?
Modern business professionals observe that the most effective strategy of managing organisations in contemporary complicated economy includes taking appropriate and immediate measures to solve the identified challenges. Ignoring the organisation’s challenges persistently has the potential of resulting to more severe situations that may affect the organization’s productivity and development (Lardi & Fuchs, 2013). Effective monitoring and evaluation of the implementation process of a program is therefore a strategic approach of solving economic problems. Monitoring and evaluation ensure that the organization has knowledge of its performance. This information is essential in decision making, as the management is able to identify and correct plans that are less productive while capitalizing on its strategies that are productive (Rheingold, 2002). This means that adopting an effective mean of searching for a helpful means of solving the problem that has led to the reduction of the organisation productivity is critical in protecting the organisation image. Social media strategies have in the recent past proved effective in addressing some of the promotion challenges in the modern economy. With increased social media sites, modern managers have a role of identifying reliable social media site that meets their needs. In this context, instead of postponing the organisation problem, modern managers need to identify reliable social media that can holistically address their problems. Therefore, intensive consultations and continuous researches are vital means of increasing reputations of modern profit making organisations.
Lardi, K., & Fuchs, R., (2013). Social Media Strategy - A step-by-step guide to building your social business (1st ed.). Zurich: vd
Rheingold, H., (2002). Smart mobs: The next social revolution (1st printing ed.). Cambridge, MA: Perseus Pub
Samir S., (2006). Management Information Systems. Amsterdam: Elsevier