Social Media Websites and Customer-

Generated Content to change the way

Marketers operate?

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ContentsEXECUTIVE SUMMARY.....................................................3

1 (A) INTRODUCTION ................................................. 4

PROLOGUE............................................................4CONCEPT OF E-COMMERCE.................................................4CONCEPT OF E-MARKETING................................................4E-COMMERCE AND E-MARKETING............................................5SOCIAL MEDIA & TODAY’S BUSINESS ENVIRONMENT..............................5

1 (B) OVERVIEW OF THE COMPANY ...................................... 6

THE AMAZON CASE......................................................6AMAZON.COM INC.,.....................................................6

(2) INVESTIGATION AND ANALYSIS OF FACEBOOK PAGE .................... 8

A COMPANY ON SOCIAL MEDIA WEBSITE.......................................8FACEBOOK.COM/AMAZON...................................................8OTHER IMPORTANT ASPECTS..............................................10

SOCIAL NETWORKS AND CONSUMERS ..................................... 12

AMAZON’S FACEBOOK CONNECT.............................................12AMAZON – FACEBOOK & E COMMERCE – E MARKETING............................12FACEBOOK ISSUES AND CONCERNS...........................................13LONG TERM RELATIONSHIPS WITH FACEBOOK...................................13

RECOMMENDATIONS FOR SMALL BUSINESS ................................ 14

CONCLUSION ........................................................ 15

BIBLIOGRAPHY ...................................................... 16

APPENDIX .......................................................... 18

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4

Executive Summary

Social media websites have changed the way companies used to operate in the

business environment. It has increased the competition by giving access to

companies all over the globe. Marketers are now required to make innovative and

creative media and advertising strategies which can be targeted to any segment

across the globe. Adding to that, consumer generated content is a very direct way in

order to know the preferences of consumers and their likes & dislikes. Marketers

have to look and find a pattern out of the blend of the social media and consumer

generated content in order to target right customers. This report presents case of

such a company, which is using social media website (Facebook) and unifying it

customer generated content in order to target the potential customers in a different

way. Managers have to go round the way in order to find a clear picture of the

consumer choices and preferences.

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1 (A) Introduction

Prologue

Concept of E-commerceContinuous technology and breakthrough innovation has enabled

businesses to use amazing ways of doing businesses. Electronic

commerce has enabled different companies to find and reach

their customers across the globe. Today, many companies have

virtual presence in almost all countries of the World. And

this all is possible due to effective use of Electronic

commerce. Electronic commerce as defined by Turban, Lee, King,

& Chung (2009) is an emerging concept that describes the process

of buying and selling or exchanging of products, services, and information via

computer networks including the internet. While market in terms of

electronic commerce is a network of interactions and

relationships where information, products, services, and

payments are exchanged (pp.36-39). Meng (2009) says that e-

commerce should emphasize three main important points. First,

e-commerce has business background because it is a business

model. The second is that e-commerce has particularly internet

characters because it is based on network background,

especially the presence of internet in order to make the

business activities operational. Third important

characteristic is that e-commerce has electronic (numerical)

character because that the information in the e-commerce is

transmitted by the electronic form.

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Concept of E-MarketingE-marketing is the field in which agency or organization uses

the modern communication technology methods to exchange the

potential market into reality market. E-marketing is

considered as an important part of the whole marketing

strategy, and it is a kind of marketing tactics to realize the

marketing goals based on the internet. Internet marketing or

the e-marketing enable the companies provide continuous

services in the every step of products pre-selling, products

selling and products after-selling. It runs in the whole

process of business operations and includes the search for new

customers, as well as services for old customers (Meng, 2009).

Ultimate goal of the e-marketing is same as the concept of

satisfying customers in the marketing. Meng (2009) says that

e-marketing is the process based on modern marketing theory

and uses of internet technology and its function is to meet

needs of the customers, in order to realize the goals of

developing new marketing and increasing operating profits.

E-Commerce and E-MarketingE-marketing is an integral part of the e-commerce, and e-

commerce includes e-marketing. E-marketing can be considered

as an important way of implementing e-commerce. E-marketing is

the method of the enterprise management to realize commodity

exchange; obviously, it is the very important and basic

internet business activities of the enterprise e-commerce

activities. E-commerce e-marketing (Meng, 2009) refers to a

new comprehensive marketing model which is based on e-commerce

and uses every kind of e-marketing methods and means to

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achieve online business activities. E-commerce e-marketing can

be thought of as an integrated method to coordinate online

business management and transaction activities. The diagram

below shows how e-commerce and e-marketing combines to present

a relationship of e-commerce, e-marketing and e-commerce e-

marketing (Meng, 2009):

Social Media & Today’s Business EnvironmentSocial media relates to the sharing of information,

experiences, and perspectives throughout community-oriented

websites, is becoming increasingly significant in the online

World. (Weinberg, 2009).

Pride & Ferrel (2011) say that one of the most important

benefits of e-marketing is the ability of marketers and

customers to share information. Through websites, social

networks and other digital media, consumers can learn about

everything they consume and use in life. These media provide

feedback mechanism through which customers can ask questions,

voice complaints, indicate preferences and otherwise

communicate about their needs and desires. Nielsen Marketing

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Research finds that consumers usually spend more time on

social networking sites than e-mail and the gap is growing.

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1 (B) Overview of the Company

The Amazon Case

Amazon.com Inc.,Amazon is America’s well known online retailer company, which

has business operations in electronic commerce domain. Amazon

(www.amazon.com) focuses on Amazon Marketplace, rather than

putting effort into Auction section of its website. It let

customers’ list items at a fixed price to sell books, music,

movies and electronics. Amazon had started as an online

bookstore, but soon it increased its portfolio by selling

Video games, electronics, DVDs, CDs, MP3 downloads, software,

apparel, furniture, food and toys.

Classification (Sector of the organization)

Amazon provides retailing transactions to its individual

shoppers and thus comes under classification of “Business to

Consumer (B2C) type of business.

Key customer groups:

Consumers who want don’t bother to physically go to market and

purchase specific goods and services are potential buyer of

Amazon. Using Amazon, a customer can select any available

desired good and/or service and get it delivered at home.

Products / Services offered:

Amazon has extended to wide range of products offered, which

include books, software, consumer electronics, kitchen items,

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CDs, DVDs, MP3s, tools, lawn and garden items, baby products,

sports goods, apparel, toys and games, computer video games,

gourmet food, jewelry, watches, beauty-care products, health

care products, personal care products, musical instruments,

groceries and some industrial supplies.

Virtual Community:

Amazon gives an opportunity for users to express their views

regarding the product or service offered at the website.

People who have purchased any product can share their thoughts

regarding the product with the other users of Amazon. A sample

of Customer Reviews page is shown in Figure 1.1b in Appendix.

The Review page gives the statistics of the review i.e. Total

number of reviews for each rating. There are 5 categories of

ratings ranging from best (5) to worst (1).

Information about Products

Amazon provides extensive information of products offered on

its website. The product description pages all information one

can possibly require. The product pictures are large enough to

clearly check the product condition. Figure 1.2b in appendix

shows the first section after the product specification. This

shows the features and benefit that customer can obtain using

that product. Figure 1.3b shows specifically the section

regarding the technical details of the product.

On the same page, Amazon provides the facility of comparing

current product with other products of the same nature, type

and specifications. This comparison includes product

specifications, condition and prices etc.

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Promotion of Products

Amazon promotes its products using email marketing – sending

newsletter updates to its subscribers. Also, there are

different social media websites i.e. Facebook, Twitter, etc.

through which Amazon promotes its products to the virtual

community of users.

Links to other Channels:

Amazon provides wide range of links of different channels to

look about the product information. For example, to download

audio books the link provided is of “Audible”. For details

regarding movies, TV and celebrities, the link of IMDb is

provided. Figure 1.4b in the appendix shows the section on the

main web page, where Amazon provides a link to other channels:

Ethical Issues

Amazon has more-or-less same privacy policy. Amazon doesn’t

have a TRUSTe license, yet, they clearly inform regarding the

information collection, its usage and disclosure details.

Amazon claims that it collects information that customers give

them, collects the web browser and surfing details with the

help of cookies, and email communications in order to better

target your needs in newsletters and promotional activities.

Amazon shares and sells information to its affiliate

businesses and partners based on the consent of the customer.

Amazon claims to protect user personal information with the

help of Secure Sockets Layer (SSL) software which provides

option to encrypt the information provided by the customer.

Furthermore, Amazon provides options for customized privacy

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settings, which help customer to share only information that

he or she wants.

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(2) Investigation and Analysis of FacebookPage

A Company on Social Media websiteFacebook.com/AmazonAmazon Inc., has developed its official Face book page with

the name “Amazon.com” which has several sections.

AboutThe “About” section of the Amazon Face book page consists of

Mission Statement, Company Overview, Basic Info and Contact

Info, as provided by the Amazon Inc.,

This section clearly states that Amazon.com is the official

Facebook page of Amazon. Companies usually write this

statement in order to ensure customers and fans that they are

on the right and authenticated page.

Then there is mission statement written as follows:-

“Our vision is to be the Earth’s most customer centric company; to build a

place where people can come to find and discover anything they might want to buy

online”.

Company overview is stated as follows:

Online shopping from the earth’s biggest selection of books, magazines,

music, DVDs, videos, electronics, computers, software, apparel & accessories, shoes,

jewelry, tools & hardware, housewares, furniture, sporting goods, beauty & personal

care, gourmet food & just about anything else.

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Basic Info section of the Face book page provides the

information that the company was founded in July 1994 and the

Products section has the statement that Amazon has dozens of

product lines.

Then the last section on the “About” page is regarding the

Contact Info in which company’s websites information with

different domains i.e. amazon.com, amazon.co.uk, amazon.de,

amazon.co.jp, amazon.ca, amazon.fr amazon.cn is given. Figure

2.1 in the appendix is the snapshot of the Facebook page of

Amazon, which displays a cover photo and brief links to

different sections of the page.

Statistics of Facebook PageOn April 10th, 2012 the Facebook page of Amazon.com shows the

following statistics regarding the number of people who liking

the Amazon page:

Likes: 3,728,372

There are 180, 728 people talking about this page (this means

that they are visiting, commenting, liking the page or they

are sharing this with others, have joined, or suggesting

others)

Statistics with respect to recent activities:The latest post on Amazon page is regarding the promotion of a

product. This short post is about Samsung Series 5 Ultra book.

Until less than an hour, there are 11 shares for this post.

Also, this post has been liked by 235 people and 18 people

have posted different comments about.

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Posts related to promotion of products have been made more

interesting with stimulating and exciting taglines and

statements which draw attention of several visitors. Like a

recent post which is attracting customers for wedding gifts

states “If I were getting married the most important thing on my registry would

be….” And this statement is accompanied with Amazon website link

to direct users to wedding gifts page. This particular post

regarding the wedding registry has caught attention of 333

likes with 592 comments and 46 shares.

Albums and PhotosAmazon.com own albums carries very less number of photos but

photos and videos which are either posted on wall or tagged,

are good in number. Most photos are also like promotion

brochures, flyers etc.

Facebook Community GuidelinesAnother very important section of the Amazon page is regarding

the community guidelines. There are certain community

principles and guidelines are given which the company expect

the users to follow.

The four guidelines on this page are listed as follows:

1. Enjoy yourself. We are all here to have fun and communicate

with each other.

2. Treat fellow community members with respect and avoid

inflammatory language.

3. Do no post repetitively.

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4. Avoid posting personal information such as your Amazon

password, credit card numbers or your phone number, email or

physical addresses.

Amazon CareersAnother very important section is the Careers section on the

Facebook page. Amazon provides the option to look for the

positions, apply for the jobs, know about community standards

and priority they give to corporate social responsibility etc.

Figure 2.2 in the Appendix shows the Careers section of the

page.

Amazon SupportThen there is a customer service section on the page which has

number of options available for the customers to follow. This

allows customers to know about different options that they

have on Facebook page. Some of them are:

Personal Orders

Shipping and Delivery

Reviewing / Changing orders

International Orders

Returns and Refunds

Pricing and policies etc.

Other Important Aspects

Selling or Just Connections!The company doesn’t seem to sell on the Facebook page, yet

there are number of diverse posts on the timeline (Facebook’s

upgraded wall). Most of the posts are related to the different

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product information. People can like or comment about these

products. Facebook page directs the users to company’s website

pages showing details for selling and purchasing of products.

Customer Generated ContentUser Generated content (UGC), which is also known as Consumer

Generated Media (GCM) is defined as any material created and

uploaded to the internet by non-media professionals.

(Interactive Advertising Bureau, 2008). Another report

(Nazzaro & Blackshaw, 2006) says that Consumer Generated Media

(CGM) describes a variety of new and emerging sources of

online information that are created, initiated, circulated and

used by consumers’ intent on educating each other about

products, brands, services, personalities and issues.

Weber (2009) says that in the new marketing, all the best

websites will combine professional and user-generated content

(which is contributed by existing and potential customers).

This is very important for companies in order to know about

the preferences of the consumers. Amazon has given wonderful

opportunity to its existing and potential customers to share

their thoughts on the Facebook page. And for every post, on

average around 500 people have either liked the posts or have

commented about it. This is how Amazon is getting to know the

consumer insights, their wants, likes and dislikes and other

preferences.

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Social Networks and Consumers

Amazon’s Facebook Connect

Amazon – Facebook & e Commerce – e MarketingJust recently, Amazon.com had launched a “connect to Facebook”

feature which depicts a real and practical example of the

relationship of the e-commerce and e-marketing. The “Face book

connect” feature allows users to review the product

recommendations based on the information available on the

Facebook profile. The feature will also help users to find out

the gift suggestions for friends based on their Facebook data

which is processed through consumer intelligence and business

intelligence.

MacDonald (2011) on a blog shares her thoughts that Facebook

connect with online shopping superpower allows users to

discover Amazon recommendations for music, movies which is

based on the person’s Facebook profile. Another feature is

users can see upcoming birthdays and will be able to find out

Amazon wish lists for friends on Facebook easily. Another

interesting benefit is to explore the Friends’ profiles on

Facebook and look for the similar or different preferences by

the consumers and users. The Figure below shows an interface

when someone joins “Facebook connect” for Amazon:

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With the “Facebook Connect” there are several benefits to the

Amazon.com Inc., as most apparently consumers will have option

to interact on different options. There are four major aspects

considered (MacDonald, 2011) described as follows:

1) Increase in number of Purchases due to influences

2) Exposure to New Products

3) Increase in number of sales/purchases on special events

like Birthdays, Anniversaries

4) Social desire to purchase will result in increase in

number of purchases

Facebook issues and concernsThere are certain limited issues regarding the privacy of the

consumer data and information. Facebook already has faced

several obligations that it sells consumers information to

different companies. But here, with the Amazon.com, as

consumers know that companies track the consumer’s information

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in order to know about the preferences and choices. So that

ultimately companies like Amazon can offer only those products

to the consumers which are liked by them.

Long Term Relationships with FacebookHitt et al., (2010) describe that the firm’s relationships

with its customers are strengthened when it delivers superior

value to them. They further add that, strong interactive

relationships with customers often provide the foundation for

the firm’s efforts to profitably serve customer’s unique

needs.

The Reach dimension of relationships with customers is related

to the firm’s access and connection to its customers. In

general firms seek to extend their reach, adding customers in

the process of doing so. Reach is essentially critical

dimension for social networking sites such as Facebook which

is the value that these firms create for users is to connect

them with others. It’s the same as happening in case of

Amazon’s Facebook page. Amazon is providing an opportunity for

different users with a common cause to connect with each

other.

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Recommendations for Small Business

For small enterprises, Facebook is an amazing opportunity to

get start and promote their products and services. However, as

the competition grows there are certain factors which should

be considered. One of the most beneficial things about the

rise of social networking websites like (Facebook, Twitter,

LinkedIn etc.) for small organizations is that it can help

them drive word of mouth in a way they have never experienced

before. By connecting with customers, members and prospects,

etc. in a social environment, things can be easily shared when

posting online, and the content can further be shared to more

and more people (Constant Connect Inc., 2011)

The three things important to consider are as follows:

1) There must be content which attract the attention of the

consumers (potential or existing) and keep them visiting

the page and company’s website again and again.

2) Facebook page must contain special offers, bonuses,

coupons etc. to increase the attention rate. By regular

offerings on the company’s page, consumers will have an

idea that special discounts and offers will be available

through the Facebook page.

3) The page must provide an interactive user interface. The

wall should be open for the comments, likes etc. The

business should aim more at providing consumers something

new, innovative and creative. It should make consumers

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urging to know about updates on their comments, likes,

shares etc.

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Conclusion

It is very important for Managers to closely look and identify

the patterns of similar and different behavior from the data

obtained with the help of social media websites and

accompanying it with Customer generated content. By this

managers will be able to make strategies to tap the needs of

the clients which any company can fill. Along the way, the

business processes will be changed according to the changing

environment and global practices.

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Bibliography Constant Connect Inc., 2011. Quick Guide to Getting Started:

Facebook for Small Business and Nonprofits. Insight Report.

Constant Connect Inc.

Hitt, M.A., Ireland, D. & Hoskisson, R.E., 2010. Strategic

Management: Competitiveness & Globalization concepts. Cengage

Learning.

Interactive Advertising Bureau, 2008. User Generated Content,

Social Media, and Advertising - An Overview. Status Report. IAB

Platform.

MacDonald, B., 2011. 4 Ways Amazon's New Facebook Integration

Impacts eCommerce. [Online] Available at:

http://blog.hubspot.com/blog/tabid/6307/bid/9309/4-Ways-

Amazon-s-New-Facebook-Integration-Impacts-eCommerce.aspx

[Accessed 10 April 2012].

Meng, X., 2009. Developing Model of E-Commerce E-

marketing. In 2009 International Symposium on Information

Processing. Huangshan, 2009.

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Nazzaro, M. & Blackshaw, P., 2006. Consumer-Generated Media

(CGM) 101 Word-of-Mouth in the Age of the Web-Fortified Consumer. White

Paper. Nielsen BuzzMetrics.

Pride, W.M. & Ferrel, O.C., 2011. Marketing. Cengage

Learning.

Turban, E., Lee, J., King, D. & Chung, H.M., 2009.

Electronic Commerce: A Managerial Perspective. Dorling Kindersley

(Pvt.) India.

Weber, L., 2009. Marketing to the Social Web: How Digital Customer

Communities Build Your Business. John Wiley & Sons.

Weinberg, T., 2009. The New Community Rules: Marketing on the

Social Web. O'Reilly Media Inc.

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Appendix

Fig 1.1b: Customer Reviews Page

Fig 1.2b: Detailed Product Features

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Fig 1.3b: Technical Details of the products

Fig 1.4b: Amazon’s link with other channels

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Fig 2.1: Facebook Page – Amazon.com

Fig 2.2: Facebook Page – Careers