Question

Do use social networks? What potential benefits and drawbacks do you think social networks create for businesses? For customers?

Answer 1

The social network is used by the households and firms alike, but for the different purposes. For business houses, it creates many advantages. The first advantage is that it provides a platform where businesses can spread the message to the target audience and build engagement. The second benefit is the brand building for the businesses in quick ways across the different demographics, geographical areas and interests. The third benefit is that it provides cost effective ways of marketing that can be measured and evaluated on different marketing metrics. The fourth benefit is the opportunity to provide first-hand information to the target audience in the form of updates, offers and future events. Social network such as LinkedIn also provides human resource to the firms. It is also an advantage.
Though, it has some drawbacks, also. The first drawback is that any wrong step can attract the backlash and harm the brand value in a very short period of time. The second drawback is the lack of sales associated with the social network as people in some overseas market still don’t take it seriously to buy the products using social networks.
The customers also get the benefits as they get discounts and offers as a reward for loyalty and they are regularly updated with their preferred brands. Further, these people provide important feedback to the firms and are adequately rewarded. There is no such apparent disadvantage to the consumers, present at the social network.