Social Media and the computer literate Consumer

Want to know how companies are enhancing their relationship with their consumers? Think Facebook, Twitter, Youtube, LinkedIn and Myspace just to name a few of these social media sites that have taken communication to the next level. Literally every organization has a website on which a facebook and twitter link could be found.

How about the ever popular, Click on "Like" icon, which provides a direct link to the company's facebook account.

You are clearly falling behind if you have not invested your personal time in private accounts, or if your company fails to secure a prominent presence on various social media platforms. I am not referring to the ads on the right hand side of facebook, or the blinking broadcasts on the top of Myspace, but the actual accounts. This jolt in the social media direction posits that anyone or any organization that truly matters has a facebook page, or even an online blog site which allows proactive interaction between the organization and its consumers and non-consumers.

Does this mean that the role of the consumer has changed? Definitely. No longer is the consumer simply a recipient of information, but social media offers an opportunity for consumers to virtually interact with the organization and other consumers. It is a chance to virtually "tell it like it is".

On one hand, there are the official facebook and Myspace pages officiated and monitored by these organizations. On the other hand, these pages could be operated by private individuals with an interest in, or on the other extreme end, a dislike for the organization. Take for instance, the The Unofficial Apple Blog that provides tips, advice and the personal opinions to the Apple enthusiasts. Also consider the disgruntled customer that spend even more time on creating posts and pages dedicated to negatively affecting the reputation of some organizations. In Dave Carroll's Youtube video, he claimed that on his trip from Nova Scotia to Nebraska, United Airlines broke his $3500 guitar. The extent to which his video negatively impacted United Airlines has not been quantified (but the over 9 million views is significant), however, the time spent to compose a song about the incident indicates the extent to which individuals are involved in the social media phenomenon.

Social media, and this new form of interaction has connected those with critical problems (organization), with those who possess possible solutions (consumer). Consumers are able to present innovative ideas and ground breaking solutions to these organizations, enhancing the possibility of innovation, and ultimately reducing risk. So, is it safe to say that in addition to the platform upon which organizations can stand, social media has augmented the role of the consumer? It is definitely an attractive element, with which David Snyder, author of The Consumer and Social Media would agree.

However, the ideal situation is when we actually get paid for our contribution. It might not be suprising to you  that celebrities get paid for tweeting about a product and/or company. While it might be interesting to get the financial breakdown (click here if you are interested) it is obvious that these companies are aware of not only the influence of these celebrities, but the power of social media and the computer literate consumer.

We can conclude that adjusting marketing strategies to social media, means accepting the growing influence and role of the consumer.

Your business prodigy,
Alc

Source: http://www.marketingpilgrim.com/2008/09/the-consumer-and-social-media.html

Consuming with an open mind - Neuromarketing

What are our consumers thinking? What kind of organization are we in their eyes, and what do they think about our products? Perhaps, even those who do not consumer our products can offer some incite.

The consumer centered organization directly, and/or indirectly positions "the consumer" as a decision maker. Thus, the overlying interest to delve into the mind of the consumer is a growing phenomenon that is strategically referred to as Neuromarketing. The concept was founded by Dr. David Lewis, who is referred to as the "father of Neuromarketing", having initiated studies of analyzing the activities of the brain for the purpose of applying it to commercial situations.

Neuromarketing allows an organization to determine why consumers make certain decisions. It explains consumer behavior by psychologically studying consumer cognitive, sensory and emotional response to marketing stimuli. Functional Magnetic Resonance Imaging (FMRI) measures changes in brain activity brought about by marketing initiatives. For instance, FMRI technology can analyze a subject's brain while watching a movie trailer, such as Transformers 2.

Does measuring brain and muscle activity, tracking eye movements, or identifying stress and emotional indicators actually allow an organization to understand its consumers? There is a great deal of perception attached to the technogology invovled. Assuming the experiementing and analysis is accurate, the manner in which organizations use the information to effectively adjust marketing initiatives that meet the needs of consumers raises questions. If it really works, the ability to respond to consumer needs and make adjustments such as the way a product is designed and demonstrated would bring significant profitability to the organization. Wouldn't all organizations immediately adopt such a psychological approach to business?

What about the possibility of manipulation? It has been said that a lie detector test could be manipulated, thus what negates the possiblity of consumers altering their behavior in Neuromarketing experiments. In the article Neuromarketing - Innovative ways to understand consumer buying decisions, it is noted that consumer behavior may actually be different because the experiment occurs in a confined and cordinated environment.

But of greater importance, do we as consumers actually want these organizations breathing down our backs and infringing on our personal rights to privacy of mind? Clearly, with the growing influence of technology, and therefore, with the application of Neuromarketing, we are becoming immune to the noted drawbacks.

Shall we continue consuming with an open mind?

Your Business Prodigy,
Alc