SOCIAL MEDIA SITES IMPACT ON BUSINESSES AND

CONSUMERS

Submitted to
Shari Weiss, Professor
San Francisco State University, California

Submitted by
Jessica Hines, Student
San Francisco State University, California

April 7, 2015

TABLE OF CONTENTS

EXECUSTIVE
SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .1
BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
........1
PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......... 1
SIGNIFICANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .1
SCOPE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.........1
DISCUSSION: USAGE, RELATIONSHIPS, AND BENEFITS. . . . . . . . . . . .
.........2
USAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..........2
FIGURE 1 : SOCIAL CONNECTION THROUGH
MEDIA . . . . . . . . . 2
SIZE
MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .
3
FIGURE 2: EMBEDDING BUYING BEHAVIOR . . . . . .
..........3
CONSUMER
RELATIONSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 4
SUSTAINABILITY OR
ADATPTABILTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
FIGURE 3 : RELATIONSHIP GOALS BETWEEN
BUSINESSES AND SOCIAL MEDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.........................6
FIGURE 4 : WHO USES
WHAT?. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
CONCLUSION AND
RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
WORK CITED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...........8

EXECUTIVE SUMMARY
Businesses can benefit from social networking sites, enabling companies to the
utilization of a social media site is imperative to the business. By using the right
social media site, businesses can build relationships with people. Communication is
the most vital part of a businesss relationship with consumers. How companies
communicate can either benefit or destroy a businesss brand.

1. When evaluating different media sites before choosing one, a business must look at
the size of its users per social platform. Facebook would be the most effective social
media based off of the larger percentage of users
2. Strategically advertise products that are accessible to consumers at the right place
and at the right time which will increase their buying behavior. Social media is also
dependent upon the location of stores, neighborhoods, and other businesses that
surround the consumer.
3. The percentage of businesses that increase or continue with the same established
social media are higher than the percentage of businesses who decide to decrease
or not use social media at all.
4. The benefits of social media are being able to connect to a large market of
consumers. Brand awareness and immediate feedback from customers will lead to a
successful web based approach in marketing which is seen in figure 1, figure 2, and
figure 3.
5. Based on findings Facebook, LinkedIn, Instagram, Twitter, and Pin interest are the
most used social media sites.

With over 50 social media sites leading the way in communication within the
business world, Companies must be able to evaluate and strategically choose what
one or two media platform sites will best suit their marketing plan without it being
underutilized instead of connecting with the audience.

INTRODUCTION

Background
Social media was once used for individuals to engage and interact with
others without having to communicate face to face. Recognizing this action ,
businesses started to use social media to develop a direct relationship with
their customers and to promote their brand, as Mochas states , Weve also
seen customers become empowered as never before , where they expect
immediate , relevant communication in real time(2005).
Purpose
The purpose of this report is to view how strategic planning can benefit
businesses when choosing a social media site. This report is significant
because businesses must adapt to the changing market and to social mediasavvy customers in order to effectively market their product. Most social
media sites are underutilize by businesses which can be a loss of opportunity
cost and lessen the direct connection with customers.
Significance
This study was completed to analyze the methods use when
strategically choosing social media sites that best suites businesses. The
effectiveness of social media to businesses is also evaluated.
Scope
In this study, the social media sites with the most active users such as
Face book, Twitter, Instagram, LinkedIn, and Pinterest will be analyzed and
questions surrounding these social media sites will be explored such as:
What methods should businesses consider when
choosing the right social media site? Why is it important to
strategically choose a social media site?
Can these social media sites actually benefit
businesses?
How is the relationship between businesses and
consumers affected by the use of social media?

USAGE, CONSUMER RELATIONSHIPS, AND BENEFITS

In order to effectively choose a social media site, businesses must analyze the usage, benefits and the
relationship dynamics when using these platforms. As a result businesses can engage and create a brand
presence within a specific market.

Usage

As shown Figure 1. The social media with the most active users is Facebook followed by LinkedIn,
interest, Integra, and Twitter. When evaluating different media sites before choosing one, a business must
look at the size of its users per social platform. Occupying the highest usage below, Facebook would be
the most effective social media to utilize based off the larger percentage. Businesses must evaluate the
usage of each social media site in order to establish or extend their client base. Marketing and advertising
may become more cost effective and easier when choosing a social media site with a larger audience
making it a more beneficial investment for the business.
Figure 1
Social Connection through Media

Source: Pew Research Center, Washington, D.C. 20036

Size Matters
Size matters when businesses are targeting a certain demographic of people .Some businesses create
buyer personas for their customers in which they appeal to a certain group of audience. For example,
42% of online users for Pinterest are women and 13% are men who would result in women dominated
market for products mostly used by women (Chit wood, 2014). Therefore, Pinterest would be used to
market feminine items or products mostly used by women. Whether its analyzing the audience as whole
or only targeting a certain demographic of people, size matters.

Figure 2

Embedding Buying Behavior

Americans spend more time on social media
sites per day then watching TV. In Figure 2,
Americans over the age of 18 will spend an
average of 4 hours and 40 minutes per day
on their mobile or online devices which is 9
minutes longer than watching television
(Ritcher 2013).
Source: eMarketer

With Americans adapting to the always on culture, consumers are always present on their smartphones
and devices 24 hours a day which suggest how social media is becoming a part of the social norm. By
targeting your feed of advertisements to catch your audience attention during different times of days
whether it be during a commute, weekends , and late nights or early morning can affect can result in
effective marketing of businesses(Cespedes, 2015). Strategically advertise products that will increase
their buying behavior.
3

CONSUMER RELATIONSHIPS
Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual
friend connecting consumers directly with business. Based on usage, Facebook, LinkedIn, Instagram,
Twitter, and Pinterest are the most popular social media sites where businesses can have direct
communication with their customers:

Facebook. One billion (Folger) people are active on Facebook every month (2013). Using Facebook
creates a high level of engagement with customers. With over 70% of adults actively using Facebook, this
social media site provides a more intimate setting for its users where posts and personal messages can
be sent or read to by close friends and family. Businesses who want to establish a personal relationship
with their customers may utilize Facebook to remain interactive and present in their customers lives.

LinkedIn. LinkedIn serves as a social media site that connects businesses with other businesses (b2b).
In order to effectively utilize LinkedIn, Businesses must use this platform to networking. Businesses
seeking industry specific information from users is also makes LinkedIn suitable for certain types of
Businesses. LinkedIn enables businesses to not only connect with consumers but to connect with other
business. Businesses whose market are educated and high income individuals may effectively use this
media platform (Manafay, n.d).

Instagram. Serving as a visual social media site for businesses who want to market a specific image,
Instagram focuses on lifestyle, food, and fashion. Businesses who have products that follow trends and
markets that target a specific demographic of people will be able to effectively this social media platform

Twitter. Twitter is used as a topic based social media site. Like Facebook, Twitter also gives Businesses
more interaction with customers. Users (Chitwood, 2014) posts multiple times a day, creating a selfconscious image on the web. Twitter is used as another form of democracy (Chitwood, 2014). Businesses
who choose Twitter as their social media platform are really interactive and conscious within the
community

Pinterest. Businesses who seek to market a specific item take of advantage of Pinterest because of the
easily categorized content that are searched multiple times a day (Chit wood, 2014). Similar to Instagram,
Pinterest also focuses on trendy food, DIY designs, and travel.

Sustainability or Adaptability
The goal of social media is to developed sustainable relationships with customers while adapting to
changes. Building relationship can only be attaining by choosing the most effective social media site or
changing to an even more sufficient media platform.

Figure.3
Relationship Goals between Businesses and Social Media
In figure 3. 68 percent of businesses decided to increase to other social media platforms such as
blogging, YouTube, Twitter, LinkedIn, and Facebook. 16 percent of marketers decided to stay the same
while 2 percent decided to decrease their social media platforms and 14 percent decided not to utilize

social media at all.

Source: 2014 Social Media Marketing Industry Report

The percentages of marketers who increase or stay the same are higher than the percentage of
marketers who decided to decrease or not utilize social media at all. This proves how marketers are
willing to effectively use pervious media platform or adapt to change and increase to another social media
platform.
5

Figure. 4

Source:360i. Social Media Apps Image via Shuttershock

Who Uses What?
In figure. 4, teens, wide audience, millennials, early adopters, business people, and recruiters are
different categories of people who use social media. In addition, millions of people are active on social
media which leads ways to extremely high engagement and faster growing audiences.

CONCLUSIONS AND RECCOMENDATIONS

Analysis of the usage, relationships, and benefits of social media sites results to the following conclusions
and recommendations about why businesses should strategically choose social media sites that will
effectively utilize their marketing plan.
1. Communication is the most vital part of a businesses relationship with consumers. How companies
communicate can either benefit or destroy a businesss brand.
2. In order to effectively choose a social media site, businesses must analyze the usage, benefits and the
relationship dynamics when using these platforms.
3. When evaluating different to media sites before choosing one, a business must look at the size of users. ,
in order to establish or increase a client base
4. With Americans adapting the always on culture, consumers are always present on their smartphones
and devices 24 hours a day which suggest how social media is becoming a part of the social norm.
5. Businesses strive to have a deeper connection with their consumers. Social media sties act as a mutual
friend connecting consumers directly with business.
6. Based on usage, Facebook, LinkedIn, Instagram, Twitter, and Pinterest are the most popular social media
sites where businesses can have direct communication with their customers
7. . The goal of social media is to developed sustainable relationships with customers while adapting to
changes.
8. In addition, millions of people are active on social media which leads ways to extremely high
engagement and faster growing audiences.
9. The percentage to the same or increase helps proves the benefits of social media.
10. The ability to have brand awareness and immediate feedback will lead to a web based approach in
marketing which is seen in figure.1, figure. 2 and figure.3 to be successful and innovative.

On basis of the research findings, we recommend that businesses evaluate, analyze, and utilize
social media sites and platforms that best suits their marketing plan. The benefits of social media are
wider range or audience and a more direct integration with customers as well as other businesses.

Work cited
Hochhauser, R. (2005). COMMUNICATION IS KEY TO HAPPY CUSTOMERS. Industry
Week/IW, 254(13), 30-31.

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