Reference no: EM13786076

With this statement below need a paragraph if how I feel about this article: The staff writer for CBR (Computer Business Review) supports my claim that social media is a valuable tool in a firm's marketing strategy; especially when the firm is selling a tangible good such as in retail. The article, "Social media buy buttons boost e-retail to $1.7tr", proves that social media facilitates a vital connection between a consumer and a firm which can be profitable for a firm. Social media provides a porthole for marketers into the macroenvironment that indirect influences consumers, who of course are at the center of marketing. The macroenvironment factors consists of cultural impacts, demographics, and social, technological, economic, and political factors which aid in creating the consumer's point of view. No longer, will social media just be limited to the 4E framework but could increase a company's profits, specifically for those that have a profit oriented objective. Since social trends seem to be increasingly influential with consumers, many online retailers are taking advantage of the opportunity social media presents to expand on a type of direct marketing channel. The "buy button" that certain social networking websites (e.g. Facebook, Twitter, Instagram and Pintrest) have implemented is a key tool for the 4th step in the consumer decision process-purchase. The buy button could also help manufacturers eliminate some of the hassle they encounter associated with other channel members as it relates to pricing or even the need to establish elaborate channel strategies and can reduce their costs potentially. The buy button should also increases the conversion rates for online retailers. Further, I imagine the buy button being a type of data warehouse thus enhancing the marketing research process. The writer cites, "e-retail sales are estimated to reach $1.7 trillion this year, up by over 17% over last year." ; a strong suggestion that social media websites are attributing to this increase. Additionally, social media also helps the consumer through steps 1-3 of the consumer decision making process (need recognition, the search for information, even evaluating alternatives. I will admit that use of the buy button could increase postpurchase dissonance but it is a risk firms must take as it could result in customer loyalty and satisfaction. There were some supplementary areas highlighted by the writer as well. Included is the need for retailers who have brick and mortar stores to establish a solid information flow in an effort to avoid conflicts and delays with delivery of goods. Another area mentioned the increased use of mobile media (i.e. smartphones) to make online purchases however, the ability to charge purchases to a consumers account would be limited due to wireless service providers wanting a share in revenues from companies.