Review Literature Assignment

Evaluate the Uses and Benefits of social media in Modern Business Arena (Literature review)

Research Questions

1. What is the relationship between social media and modern businesses?
2. What is the impact of social media on the modern businesses’ areas relationship?

Research Objectives

1. To investigate the correlation between social media and modern businesses.
2. To investigate causality between social media and modern businesses.

Discussion

In 1989, the internet was globalized with the discovery of the WorldWide Web. In the modern era, the invention of social media has revolutionized and transformed the business landscape. Today the internet build how individual communicate these days. According to the recent report by Daniel, 2023, there are around 4.9 billion people using social media worldwide. Ward (2010) described social media as a form of online platform that promotes conversation, in contrast to the conventional means which delivers content but doesn't allow viewers, listeners and readers to engage in the content creation (Hensel and Deis, 2010). Apart from becoming a way to socialize, social networking and digital marketing strategies offer multiple benefits across all market segments and industries. Among its various benefits, a leading benefit of social media is the low cost of complementing media spending to reach a broad yet better-targeted audience (Malesev and Cherry, 2021). Based on this people are shifting to social networking for the purpose of their business advertisement and marketing. A significant increase in digital marketing by 34% in the USA and it has been predicted to reach in 2014 by $3.1 billion (Pentina, Koh and Le, 2012). Apart from of conventional recruitment methodologies such as newspapers, flyers and radio, social media offers an indispensable way to target more people in less time and cost (Steren, 2015). Almost all industries have shifted their advertising strategies from traditional planning towards digital marketing using social media due to the evident benefits of social media. Using online platforms and networks enables people to produce and share ideas, plans and information of any sort among the audience. This generates more views and promotion in comparison with traditional marketing campaigns. So let's explore what more could social media do for the business arena (Venkateswaran, Ugalde and Gutierrez, 2019). The specifically designed filters and logarithms enable social media users to watch content tailored to their taste. As a result, companies can reach wider yet more targeted audience. Marketing strategies have shifted from mass media to narrowly targeted approaches toward the synergistic integration of all business organizations. Social networking has been widely adopted by all cultures, ages and races by influencing their daily life and chores. The emerging trends become attractive to everyone despite of age and thus offer a prominent means to do marketing.

Using social networking has been proved advantageous specifically for small as well as medium-level enterprises or firms. The reasons lie in its low cost and flexible nature that can be easily adopted and modified for the introduction of new products in the market. Davis, 1989 proposed a technology acceptance model (TAM). According to this, the ideal decision-making policy depends on its ease of implementation, i.e perceived use (PU) and perceived ease of usefulness (PEU). So social media doesn’t need technical training or skills. However, it requires the creation of attractive ads, maintaining customer relations, PR and conducting market research for decision-making and recruitment to survive in the business competition effectively. The TAM theory predicts that the use of information technology, spreadsheets, computers, E-business, mobile commerce and marketing will enhance business revenues. However, the social influences from customers, competitors and experts strongly affect the PEU and PU through direct or indirect means. Consequently, this influences the efficacy of adopting social media networking by small or medium-level firms. Thus, this offers a crucial determinant of marketing success in the targeted population (Pentina, Koh and Le, 2012). Adopting e-business policies leads to data sharing among companies through extensive markup language (XML) or electronic data interchange (EDI). Both EDI or XML-based strategies have proved beneficial in the case of small e-business firms. However, in the case of large firms, companies should make a shift from EDI to XML-based strategies due to many reasons such as easy customization, scalability, internet friendly, low cost, easy implementation, broader reach and adoption (Nurmilaakso, 2008).

In order to adapt to the new era of business, teaching policies need to be changed. To become a successful businessman or entrepreneur, students must learn new models and communication methods through digital means. By using digital networks, companies can generate innovative ideas, services, and products, which can be translated into better business adaptability. Reinhard and Singh, (2011) proposed that work-integrated learning programs offer efficient and organized plans. These provide hands-on understanding for the students, leading towards indispensable skill sets for the present-day business competition. This shows the role of digital learning in developing a virtual firm and transforming it into a successful business model. One such example of a virtual firm is the stopsimply.com created by Dr Satow to help people to quit smoking with students’ assistance using social media. The success of stopsimply.com proved how the non-profit firm can become a successful business model. In this case, digital marketing ensured a successful marketing firm that enabled people to write their views and suggestions in the form of feedback, tweets and blogs. This caused stopsimply.com to progress by engaging funding groups like wer-kennt-wen. This created a direct link between practice and learning. This caused the emergence of evolutionary design based on social media to allow participation from different individuals, focus on a goal, assurance of private and public space, and value addition, leading to successful business firms (Reinhard, Satow and Fadil, 2012).

Participating marketing through the internet offers an efficient means to sharpen the business firm. Our knowledge, experiences, and opinions are integrated into social networks by the internet. The information about a product is extended online through firms such as Amazon where it is possible to get information about its beliefs, social commitments, and the experiences of other customers. A greater awareness of consumer experiences and opinions will underpin the measures taken by businesses to maintain brand identity and reputation (Jara, Parra and Skarmeta, 2014).

Marketers must seek out authentic brand communities, and coordinate them to develop unique initiatives and resources that will empower both current and future community members while rewarding current customers and inspiring potential customers to alter their behavior (Miller and Lammas, 2010). Word of mouth (WOM) plays a significant role in the business arena. Over traditional advertising strategies, referrals from friends, family, or coworkers tend to be more trusted. Social media stimulates WOM among customers leading towards a mature corporative network. However, using social media to engage customers will not be successful if marketing efforts are sporadic (Kimmel and Kitchen, 2016).

Gap of literature<!--/p-->

Despite of unlimited benefits associated with the use of social media in boosting business and sales. There are various literature gaps that need to be addressed. This causes the risk of unexpected negative viral spread affecting the company's position and reputation. (Internet Advertising Bureau, 2010). Most of the studies targeting the benefits of social media investigate only short-term impacts of social media on the business arena. The effects could be different in different companies and business firms (Dwivedi et al., 2021). There comes a need to explore more about the benefits exhibited by the social media in the case of both large business firms as well as small and medium business firms. No globalized information is present in the literature. Most of the countries target only Western countries. There is also a lack of knowledge to address the real investment return based on digital efforts. Anjala S. Krishen's point of view covered a variety of human-centered issues as well as cultural dimensions of digital marketing, citing eWOM in the context of our capacity to comprehend and engage with many cultures and societies. The multi-platform social media era's inherent complexity and enormous prospects provide a paradox to marketers. Digital and social media marketers who are building brand awareness must constantly be aware of how crucial it is to respond to unfavorable comments by swiftly communicating with customers directly (Dwivedi, 2021). As per the report generated by Internet Advertising Bureau (2010), the major gap includes the demonstrable results and investment return (74% of respondents), and the unavailability of reliable metrics for risk assessment (64% of respondents). To overcome this, it is mandatory to create effective business models and statistical metrics. Another gap noted in most studies is the inaccuracy of results, especially during conducting a survey. For example, it may have been another person instead of that participant who noticed the advertisement and provided the information on behalf of the participant (Lockett, 2018). Virtual firms offer computer-based communication where one can communicate with anyone anonymously. This can occasionally prove problematic, though, as it can be used to disseminate false information for nefarious purposes. There needs a pivot study to observe and analyze data. Social media enables to assessment of data which could be used to learn, investigate the analyze further to do efficient marketing, create quality products and satisfy the audience. The effects of social media also need to be tracked and adjusted from time to time as technology advances in order to stay up with the pace of life. Therefore, continued research into the benefits of social media on all commercial platforms is necessary (Kraus et al., 2019). The use of digital networks such as Facebook, Twiter and Linkedin have provided good platforms to extract data from the public in order to build professional product–consumer linkages. It is also recommended to run cooperative digital projects to investigate interoperable associated data, and to do social mining and semantic techniques. This results in the generation of broader data exploits ensuring a gathered data based on multiple participative marketing firms. To address the literature gap, we need collective contributions from computer experts and mathematicians. This would lead to the prediction and assessment of upcoming economic, political and social queries (Jara, Parra and Skarmeta, 2014).

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