Paul Kalemkiarian, “Wine of the Month Club” entrepreneur and Rotarian, presented an interesting discussion on Social Media and the impact on Business on Friday, June 8, 2012.
The Social Media, or social network, has created a major impact on marketing today. More and more people are on Facebook, where within seconds a name, a face, or product can become known in a matter of seconds. As an illustration, Paul told us about getting customers while marketing at the LA County Fair. The cost to reach a customer increased from 1996 at $9.00 per customer, to 2007 when it cost $178 to reach a customer. Today, he can reach 1000s of people just by going on Facebook at a fraction of the cost to meet with people in person. Where this mode of marketing is going to go is hard to say, but in any event, it will continue to grow.
Social Networking, or social media, allows a person to reach 100s of people in a matter of seconds at a fraction of the cost it would take to have mailings, TV ads, billboard advertising, or newspaper ads. It is Exposure at a minimal price. What is Social Media? It is people having conversations online. It is Self Branding. In a sense, it is Narcissistic, but in today’s world and today’s teenager, you are nothing or nobody unless you are on Facebook. And you are nobody without You Tube.
Why is this the case? The social network is cost effective and keeps people connected. It shifts power away from editors, the establishment and the media elite. It is highly accessible.
The Social Media landscape allows for games, socializing, and interaction from one to another without a great cost. It creates credibility. There is overnight comprehension, especially for businesses. An example would be Harry Potter World. The creators of the new park attraction did not use media advertising to inform people of the coming of the park. Instead, it announced the park to seven million Bloggers, all for $197. The word spread fast.
Social Media creates credibility and with that it enhances sales which depend on credibility. The digital market is an efficient and less time consuming way to market a product or service. It is the wave of the future.