Web Design, Digital & Social Media Marketing in Singapore

Social Media explained

// June 26th, 2009 // Social Media Marketing

Social Media in Plain English from leelefever on Vimeo.

A simple-to-understand video on what’s social media all about.

To me, the emergence of Social Media, globally and in Singapore, allow consumers to influence decisions of fellow consumers. At the same time, it shifted the way businesses are managed and forces people like the ‘Big Ice Cream Factory’ to rethink on their marketing strategies.

The video did not really touch on how the ‘Big Ice Cream Factory’ be affected by groundswell. Although it benefited directly from the increased sale of vanila flavoured ice cream, there are other more crucial effects that may result from this.

First, social media flattens the playing field. Small start-ups that has a ‘better idea’ can now compete on a level playing field with the big boys. They focus on a niche market, has a smaller but more loyal customer base. They are nimble and if they are listening to their customers, they will be able to change product offerings based on consumers’ demand. The ‘Big Ice Cream Factory’ now faces the risk of losing market-share, when more and more such start-ups emerge. What the ‘Big Ice Cream Factory’ can do is to then flex their ‘$ muscle’, invest heavily in traditional advertising and attempt to influence buying decisions. That increases cost of sales and diminishes margins. Even if the market share is maintained, profits are reduced. How long can that last?

It is natural that companies will start looking at this powerful medium eventually (if they have yet to). That will change the way they market their products, engage their consumers, develop new products and even the way their organize their teams. The effect of social media to businesses is deep.