EXPLORING SOCIAL MEDIA AND E-

BUSINESS

KHOLID PRASETYO 201980014

RAYHAN WIDYADHANA 201980018
FARIS SADDAM ABDILLAH 201980016
ALDISAR HIRLIANSYAH 201980038
MUHAMMAD AFGHAN Y. 201980046
MUHAMMAD AGAM 201980047
WHY IS SOCIAL MEDIA IMPORTANT?

• Social media represents online interactions that allow

people and businesses to communicate and share
– Ideas
– Personal information
– Information about products and services
WHY BUSINESSES USE SOCIAL MEDIA

Social media has completely changed the business

environment. Early on, company saw potential in the sheer
number of people using social media a top priority for many
business firms.

By using social media, companies could share information

about theirs products and services and improve customer
service.
SOCIAL MEDIA TOOLS FOR BUSINESS USE

Companies are using social media because it allows the company to

• Connect with customers
• Listen to its main stakeholders ( including but not limited to customers )
• Provide another means of customer service
• Developed content that is valuable to customers and
• Engage customers in product development and formulation
• Social content sites allow companies to create and
share information about their Products and Services
• They use:
– Blogs
– Videos
– Photos
– Podcasts
– Commercials
BUSINESS USE OF BLOGS

• A blog is a website that allows a company to:

– Increase customer’s knowledge about products and services
– Build trust
• Developing better relationships with customers
• Attracting new customers
• Telling stories about the company’s products or services
• Providing an active forum for testing new ideas
PHOTOS, VIDEOS, AND PODCASTS

• Media sharing sites allow users to upload media

content:
– Photos
– Videos
– Podcasts
• Podcasts are digital audio or video files that people
listen to or watch online on:
– Tablets
– Computers
– MP3 players
– Smartphones
SOCIAL MEDIA RATINGS

• Social media enables shoppers to access opinions,

recommendations, and referrals from other who have bought a
product or services. This type of information is available via a
social media site and can include reviews and ratings. Sites for
ratings and reviews are based on the idea that consumers
trust the opinion of others when it comes to purchasing
products or services.
SOCIAL GAMES

• Social games are another area of growth in social media. A

social game is “a multiplayer, competitive, goal-oriented
activity with defined rules of engagement and online
connectivity among a community of players. While some
business elect to create their own games, others promote
particular brands or product within another firm’s games.
ACHIEVING BUSINESS OBJECTIVES THROUGH
SOCIAL MEDIA
• Although the popularity of social media is a recent
phenomenon, many business are already using it to achieve
important objectives. Some of these goals are long term-such
as building brand awareness and brand reputation.
SOCIAL MEDIA COMMUNITIES

For a business, social media can be used to build a community. Social

media communities are social networks based on the relationships
among people. These electronic communities encourage two-way
communication, allow for people to develop profiles, and identify other
people to connect with by using technology and the internet
• Different types of social communities include forums and wikis. A forum
is an interactive version of a community bulletin board that focuses on
the threaded discussion. A wiki is a collaborative online working space
that enables members to contribute content that can be shared with
other people.
CRISIS AND REPUTATION MANAGEMENT

• One of the most important reasons for listening to stakeholders is to

determine whether there is a crisis brewing. A majority of companies
belief that their company is less than a year away from some potential
crisis moment and monitor social media for conversations that may
predict a crisis. During a crisis, companies can use social media to
answer questions, reassure public, and present positive information to
help rebuild their reputation.
LISTENING TO STAKEHOLDERS

• Listening to people whether they are costumers or not, is always

important aspect of a company’s social media plan. Listening to the
conversation unfolding on Facebook or Twitter for example, can be
important to understanding just what people think about a company’s
product and service.
TARGETING COSTUMERS

• Many companies are using social media to increase awareness and

build their brand among costumers. It is especially valuable in targeting
the Millennials. Millennials are tech-savvy digital natives born after
1980. Therefore, the company decided to target the millennials
worldwide as the key to revitalizing sales and building a loyal costumer
base for future success.
SOCIAL MEDIA MARKETING

• Social media marketing is the “utilization of social media technologies,

channels, and software to create, to communicate, deliver and
exchange offerings that have value for an organization. Research
indicates that companies are shifting their advertising money from
traditional marketing (television or magazine) to digital marketing
(internet research engines and social media). This days, many
companies have been quite successful using social media marketing
not only to develop costumer awareness, but also to obtain sales leads
and increase actual sales.
As important as social media marketing is, it is only one aspect of digital marketing.
Digital marketing or online marketing is comprised of several areas, including
• Online public relations- developing social media as a press kits
• Search engine optimization- using keywords in a company’s website in order to rank
higher in search engine results
• Search engine marketing- buying ads like Google’s AdWords to increase traffic to a
company’s website
• Display advertising- buy banner ads
• E-mail marketing- targeting costumers through opt-in e-mail campaign
• Content marketing- developing photos, videos, podcasts, blog posts, and other tools to
increase the value costumer
GENERATING NEW PRODUCT IDEAS

Using insight gained from Facebook or Twitter, for example, allows a

company to modify existing products and services and develop new
ones. Crowdsourcing involves outsourcing tasks to a group of people in
order to tap into the ideas of the crowd. Companies can even build
communities for specific brands in order to obtain information and new
ideas from consumers.
RECRUITING EMPLOYEES

• For years companies have used current employees to recruit new employees,
the concept is simple : current employees friends and family may prove to be
good job candidates . social media takes that concept to a whole new level.
• Linkedln , the largest social network for professionals , has been used quit
effectively by large corporations , small business , non profit organizations ,
and government agencies that want to recruit new employees , because
linkedln host more than 300 millions professional profiles , employers using the
site can save time , reduce their recruiting cost , and see more information
about individual candidates. Companies like Accenture , ford , general electric ,
home depot , IBM , and oracle have all had recruiting success with linkedln.
DEVELOPING A SOCIAL MEDIA PLAN

• Before developing a plan to use social media , it is important to

determine how social media can improve the organizations overall
performance and how its “fits” with company objectives and other
promotional activities , for example , is a social media plan attempts
to improve customer service , it needs to link to the company other
efforts to improve customer service .
STEPS TO BUILD A SOCIAL MEDIA PLAN
Once it is determined how social media links to the company other activities , there
are several steps that should be considered.
• STEP 1. LISTEN TO DETERMINE OPPORTUNITIES. Social media is often used to” listen
“, to what customers like and don’t like about company products or services.
• STEP 2. ESTABLISH SOCIAL MEDIA OBJECTIVES. After listening to and analyzing the
information obtained from social media , its important to use that information to
develop specific objectives, for social media . objectives is a statement about what
a social media plan should accomplish. , each objective should be specific ,
measureable , achievable , realistic, and oriented toward the future
• STEP 3. SEGMENT AND TARGET THE SOCIAL CUSTOMER. A ideally a company will
have develop customers profile that describe a typical customers in terms age ,
income , ethnicity , etc.
• STEP 4. SELECT SOCIAL MEDIA TOOLS. Choose the right social media tools to reach
the right customers.
• STEP 5. IMPLEMENT AND INTEGRATE THE PLAN. Once social media tools have been
identified , a company can implement and integrate the social media plan.
TYPE OF INFORMATION THAT CAN HELP TARGET DIFFERENT
SOCIAL MEDIA CUSTOMERS

• GENERAL INFORMATION :
AGE , INCOME , GENDER , ETHNICITY , EDUCATION , OCCUPATION , FAMILY , SIZE ,
RELIGION ETC.
• IDENTYFYING FACTORS :
WHAT DO THEY CONSIDER IMPORTANT ?
HOW DO THEY SPEND THEIR TIME ?
WHAT DO THE BUY AND HOW OFTEN DO THEY BUY ?
• SOCIAL MEDIA USAGE :
HOW OFTEN DO THEY USE SOCIAL MEDIA ?
DO THEY USE FACEBOOK, TWITTER , YOUTUBE AND OTHER ?
 MEASURING AND ADAPTING A SOCIAL MEDIA PLAN
Because social media is a relatively new method of reaching customers , many companies
struggle when attempting to measure social media. Two types of social media
measurement:
• QUANTITATIVE MEASUREMENTS
Using numerical measurements , such as counting the number of website visitors,
number of fans and followers , number of leads generated and the number of new
customers. A number of companies are using key performance indicator to measure their
social media activities. KEY PERFORMANCE INDICATORS (KPIs) are Measurement that
decline and measure the progress of an organization toward achieving its objectives
• QUALITATIVE MEASUREMENTS
The process of accessing the opinions and beliefs about a brand. This process primarily
uses sentiment analysis to categorize what is being said about a company. SENTIMENT
ANALYSIS is a measurement that uses technology to detect the mood , attitudes , or
emotion of people who experience a social media activity.
 Type of Media Social Typical
Blogs
Measurement  Unique visitors
 Numbers of view
 Ratio of visitors to posted
comments

Twitter  Number of followers

 Number of tweets and retweets
 Click through rate (CTR) of tweeted
links
 Visit to website from tweeted links

Facebook  Number of likes

 Number of comment
 Growth of wall response
 Visits to website from facebook links
 

Youtube  Number of video

 Number of visitors
 Ratio of comments to the number of
video
 Number of embedded links
Other measurement
• Customer satisfaction score- defined as the relative satisfaction of
customers.
• Issue resolution rate – the percentage of customer service inquiries
resolved satisfactorily using social media
• Resolution time – defined as the amount of time taken to resolve
customer service issues
THE COST OF MAINTAINING A SOCIAL MEDIA
PLAN
• Basic assumption : Social media is not free and can be
quite expensive . Because social media cost both time
and money , it is important to measure the success of
social media plan and make adjustment and changes if
needed.
DEFINING E-BUSINESS

E-business can be defined as the organized effort of individuals to

produce and sell, for a profit the goods and services that satisfy society's
needs through the facilities available on the internet.
ORGANIZING E-
HUMAN
BUSINESS RESOURC
ES
RESOURCES
To be organized, a
business must combine
human, material,
informational, and
financial resources. FINANCIAL MATERIAL
BUSINES
RESOURC RESOURC
S
But the resources may be ES ES

more specialized than in a

typical business.

INFORMATIO
NAL
RESOURCES
SATISFYING NEEDS ONLINE

This days, more and more people are using computers, the internet, and
social media as a way to connect with people. The internet can also be
used to purchase products or services. with two basic assumptions :
• the internet has created some new customer needs that did not exist
before the creation of the internet
• e-business can statisfy those needs, as well as more traditional ones
SATISFYING NEEDS ONLINE

In addition to purchasing products, the internet can be used by both individuals

and business firms to obtain information. For example :
• The internet users can access newspapers, magazines, radio, and television
programming at a time and place convenient to them
• The internet provides the opportunity for two-way interaction between an
internet firm and the viewer
• Customers can respond to information on the internet by requesting more
information or posting specific questions, which may lead to purchasing a
product or service
• Finally, the internet allows customers to choose the content they are offered
CREATING E-BUSINESS PROFIT

Business firms can increase profits either by increasing sales revenue or by

reducing expenses through a variety of e-business activities.
• Increasing sales revenue. Each source of sales revenue flowing into a
firm is referred to as a revenue stream. today, there are many different
ways to use technology to increase sales revenue. For example, more and
more firms are selling merchandise on the internet. Because the
opportunity to shop on the internet is virtually unrestricted. However
shifting revenues earned from customers inside a real store to revenues
earned from these same customers online does not create any real new
revenue for a firm. The goal is to find new customers and generate new
sales so that total revenues are increased.
CREATING E-BUSINESS PROFIT

• Reducing expense. Reducing expense is the second major way in

which e-businesses can help to increase profitability. Providing online
access to information that customers want can reduce the cost of
dealing with customers.
FUNDAMENTAL MODELS OF E-BUSINESS

• A business model represent a group of common characteristic and

method of doing business to generate sales revenues and reduce
expenses.
BUSINESS TO BUSINESS (B2B) MODEL

• Some firms use the internet mainly to conduct business with other
businesses these firms are generally reffered to as having a business to
business model
• The first type of focus is to facilitate sales transactions between
businesses
• The second type, a more complex B2B model involving companies and
their suppliers. Today, suppliers use the internet to bid on products and
services they want to sell to business customers and learn about
customer rules and products that must be followed.
SUCESSFUL E-BUSINESS PLANNING

Starting a new internet business

• Will the new e-business provide a product or service that meets
customer neecs?
• Who are the new firm’s potential customers?
• How do promotion,pricing,and distribution affect the new e-business?
• Will the potential market generate enough sales and profits to justify
the risk of starting an e-business?
SUCESSFUL E-BUSINESS PLANNING

Building an online presence for an existing business

• Is going online a logical way to increase sales and profits for the existing
business?
• As potential online customers different from the firm’s traditional customers?
• Will the new e-business activities complement the firm’s traditional activities?
• Does the firm have the time,talent, and financial resources to develop an
online presence?
BUSINESS TO CONSUMER (B2C) MODEL

• In contrast with the B2B model,firms such as amazon (www.amazon.com), walmart (

www.walmart.com) , and warby parker (www.warbyparker.com) clearly are focused on
individual consumers.
• Typically, a business firm that uses a B2C model must answer the following questions:
• will consumers use web sites to simplify and speed up comparison shopping?
• will consumers purchase services and product online or end up buying at a traditional retail
store?
• what sorts of product and services are best suited for online consumer shopping ?
• are consumers willing to wait for purchase to be delivered, will they pay for next-day
delivery, or will they collect online purchases from a convenient pick up site?
 Advertising e- • Advertisement that are displayed on a firm’s
business model website in return for a fee.

• Online marketplaces where buyers amd sellers

Brokerage e- are brought together to facilitate an exchange
business model of goods and services

Consumer to • Peer-to-peer software that allow individuals

consumer model tosahre information over the internet

Subscription and • Content that is available only to users who

pay-per-view e- pay a fee to gain access to a web site
business models
THE FUTURE OF THE INTERNET,SOCIAL
MEDIA,AND E-BUSINESS
• Since the begining of commercial activity on the internet,
developments in computer technology, social media, and e-business
have been rapid, with spectacular successes such as facebook,
amazon, google, ebay, and pinterest.
INTERNET GROW POTENTIAL
• Although the number of global internet users is expected to
increase,that’s only part of the story.

Ethical and legal concerns

• The social and legal concerns for the internet,social media,and e-
business extend beyond those by all businesses.
ETHICS AND SOCIAL RESPONSIBILITY

• Socially ressponsible and ethical behavior by individuals and

businesses on the internet are major concerns.
Internet crime
• Because the internet is often regarded as an unregulate frontier,both
individuals and business users must be particularly aware of online risk
and dangers.
FUTURE CHALLANGES FOR COMPUTER
TECHNOLOGY,SOCIAL MEDIA,AND E-BUSINESS
• Today, more information is available than ever before. Although
individuals and business users may think we are at the point of
information overload, the amount of information will only increase in
the future.