Blog post by: Steve Vanevenhoven, Baer Performance Marketing Intern
In today’s economy, small and large businesses alike are competing in very aggressive markets. Most of these companies now understand that a competitive advantage can be found within customer loyalty. Therefore, many marketing departments are shifting toward a more comprehensive branding approach.
The American Marketing Association defines branding as “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.”(Marketing Power)
There are many departments that are involved in branding a product, but at the forefront, is social media. The multi-million dollar company, Old Spice, clearly understood this concept when they launched their super bowl “what your man could smell like” advertisement last year. Shortly after this aired the video went viral gathering 5.9 million views. This is a prime example of social media using its tools to increasing brand awareness through their customers’ personal connections. As Dan Greenberg, a social media expert, commented, “Brands don’t make viral videos, users make videos viral.” (Mashable)
However, social media does present a double-edged sword. If a company makes an error, this will also be transmitted throughout the social media world which makes businesses more transparent than they were years ago. Nestle faced this problem a short while ago. Greenpeace, an environmental activist group, wanted Nestle to stop using palm oil in its products because of the potential pollution and loss of endangered species. Supporters of this cause posted on Nestle’s Facebook page and some even changed their personal Facebook profile picture to an anti-Nestle message. The administrator for the Facebook page threatened to remove some of these comments, which is when the problem spiraled out of control. Some comments read, “Hey PR moron. Thanks. You are doing a far better job than we could ever achieve in destroying your brand.” (Cnet) Later the administrator apologized ; however, the damage to the Nestle brand was already done.
On the other hand, social media can also be of great assistance to a brand amidst a public relations fiasco. Sites like Facebook and Twitter provide an outlet for fans to publicly advocate on behalf of a brand they feel strongly about – which, in turn, provides a stronger message than if a brand were to try respond to criticisms on its own.
Social media has become more influential in recent years because companies are starting to realize the many benefits associated with this form of communication. These sites are expanding quickly with Facebook leading the pack at 800 million members. This is why product loyalty gained though social media is so important, because anyone using social media has the ability to support or tarnish a company’s number one asset, its brand.
Sources
- http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=B
- http://news.cnet.com/8301-13577_3-20000805-36.html
- http://mashable.com/2010/07/15/old-spice-stats/