This document discusses whether companies need social media. It defines social media as web-based technologies that allow for interactive user-generated content and dialogue. The document outlines how companies can use social media for collaboration, crowdsourcing ideas, research, lowering costs, brand monitoring and social customer relationship management. It argues that companies should use social media to engage in two-way conversations with customers, provide useful content, and reach customers at lower costs than traditional advertising. However, social media may not be needed for companies with millions of customers already spreading messages through social platforms.

1. Do companies need
social media or not
Thomas DESFORGES
M1 - 2010/11

2. Summary
• I - What is social media
• II - How companies can use them
• III - Should companies use them or not

3. I - What is social media
• Andreas KAPLAN & Michael the creation and:
“Foundations of Web 2.0, which allows
HAENLEIN
exange of user-generated content.”
• Businesses => Consumer-Generated Media
• Media for social interaction
• Highly accessible and scalable publishing
techniques
• Web-based technologies
• Communication => interactive dialogues

4. I - What is social media
• Difference from industrial media :
• Traditional media : newspaper, television, film…
• Relatively inexpensive and accessible
• Enable anyone to publish or access information
• Recent statistics :
• 22% of all time online
• 40 million tweets/day on Twitter

5. I - What is social media

6. II - How companies can
use them
• Past : one-way, unauthentic broadcast from
corporate communications

7. II - How companies can
use them
• Future : two-way, authentic conversations
between all groups

8. II - How companies can
use them
• Collaborate with employes around up-to-
the-minute information
• Share ideas and information on public social
media
• Crowdsourcing (Starbucks in 2008 with My
Starbucks Idea)

9. II - How companies can
use them
• Social media research :
• New emerging trends
• How different demographics discuss
• Could issues be spotted early
• To lower costs :
• Recruitment costs
• Customer services costs
• Marketing and product design costs
• Advertising and public relation costs

10. II - How companies can
use them
• Brand monitoring :
• Compare to competitors (brand health)
• Buzz during and after a campaign
• Social CRM :
• Customers to reach (free samples, privileged
information)
• Customers preferences shift
• Why customers move to other communities
• Most relevant communities

11. III - Should companies
use them or not
• Top-down communication not work as well
as before
• Create conversations with customers
• Useful content when clients need it
• Ideal clients reached with targeted messages
• Cost less than old ad campaigns
• Instant feedback
• Measurable results

12. III - Should companies
use them or not
• You don’t need social media when :
• Millions of customers using social media to spread the
word
• Can feed the social media with content community
evangelists use

13. Conclusion
• Social media grown dramatically the last 5
years
• More and more importance for customers
• Yes companies should use social media

14. Sources
• http://en.wikipedia.org/wiki/Social_media
• http://www.web-strategist.com/blog/2007/05/16/edgeworks-concept-how-
social-media-impacts-company-communications-expanding-upon-brian-
oberkirchs-theory/
• http://mashable.com/2010/03/05/companies-crowdsourcing/
• http://mackcollier.com/5-ways-companies-are-using-social-media-to-lower-costs/
• http://blog.attentio.com/2010/08/20/how-companies-use-social-media-
information-part-1/
• http://articles.mplans.com/why-your-company-needs-a-social-media-marketing-
system-in-2010/
• http://www.markevanstech.com/2010/02/05/does-every-company-need-social-
media/

15. Thank you for your
attention