Fords social media marketing - Essay Example

?Ford’s Social Media Marketing Introduction Contemporary business strategies evolve along with the introduction of social media as a marketing tool. In their attempt to attain a distinct business edge, companies leverage social media to increase productivity and market appeal. Mangold and Faulds mention that social media marketing is a hybrid mix of various promotional methods, which includes personal selling, word-of-mouth advertising strategy, and consumer relations (358). For instance, social media allows customers to contribute insights for product development, comment on existing products, and recommend their preferred brands to their friends. Consequently, this benefits manufacturers in a way that they will understand the needs of the market, and have direct, virtual interaction with customers. To attain a comprehensive understanding about the use and impact of social media, this paper discusses Ford’s social media marketing strategies through Facebook and Twitter. Throughout this research, this paper hopes to discuss the risks of Ford’s social media marketing method and identify specific points of development. Advertising Tools Facebook Dale Buss reports that Ford continues to partner with Facebook in advertising its products although the company will change its advertising strategy to address more profitable market trends such as customer support and interaction (paras. 1-3). For instance, Scott Monty, one of Ford’s senior executives, highlights the productivity of its Facebook ads such as paid advertising and integrated content while emphasising the profitability of extending Ford’s ads to allow more customer interaction (Buss paras. 9-10). Specifically, Ford uses Facebook’s advertising tools such as Logout Ads, Instagram, and Social Plugins. Using those Facebook tools allows Ford to increase its interaction with customers. For instance, with those tools, Ford will be able to share company updates with its customers, particularly those about the company’s latest promos, products, and events. Consequently, raising the brand awareness of customers advances the corporate image of Ford, which is also likely to increase sales. Twitter Aside from Facebook, Ford also advertises with Twitter through Promoted Tweets and User-Generated tweets that link to content articles about Ford’s products. In the report by Morrissey, he discovered the profitability of User-Generated tweets through linking one of Ford’s content articles with a third party blogger, Collier. Morrissey reports that Farley had linked one of his tweets to Collier’s article about saving funds through social media marketing; this results to the continued use of content integration between Ford-related contents with third-party bloggers. The profitability of this tool lies in its capacity to reach out to internet-savvy millennials, which comprise 55% of Twitter users (Slutsky paras. 1-2). It is also noteworthy to consider that the said number of Twitter users does not have cars, which makes the strategy a viable option in increasing Ford’s market reach. Consequently, using those tools helps Ford establish interaction with millennials and ensures favorable relations with customers through expanding the market’s avenues for expression. This may result to Ford’s accessibility to different market groups. Advertising Methods Halliday reports that Ford uses social media to strengthen its customer service, particularly in establishing active and profitable interactions with its customers (paras. 1-3). This advertising strategy also allows Ford to reach out to wider demographics, which will help determine and design specific brands that will attract various market groups. Specifically, Halliday reports that Ford maximises the profitability of social media through creating message boards and forums, as well as providing virtual troubleshooting assistance to cater customer queries and suggestions. In the marketing perspective, using social media to generate customer-related information is beneficial for the company, considering that this information may be used in designing brands that would fit the preferences of the target market. Aside from gathering customer-related information, social media also allows Ford to provide its own company details in a more approachable way, without the formality of business proposals and reports. Ford uses social media to advertise their latest events and products, which strengthens the market’s brand awareness. For instance, in 2010, Holliday reports that Ford will inform its Facebook’s fans first about its latest 2011 Ford Explorer before the car will be officially out in the market (paras. 1). Ford posted a video of the upcoming 2011 Ford Explorer and urged its Facebook fans to click the “Like” button to view pictures of the car. Ford also receives positive reception with its Facebook Logout page ads wherein it receives more than 15,000 likes, 7,000 shares, and comments (Kaye paras.1-3). Another report also shows that there are leaks about Ford’s latest Mustang unit, which will be released on 2013 (Nordlicht para. 1). Although the disclosure of the pictures was unplanned, one can say that the appearance of those pictures in the web elicits curiosity in the market, which is also likely to increase Ford’s website traffic, at the least. The uncovered pictures and videos show Mustang’s advanced exterior and interior designs, as well as its value-added performance monitoring mobile applications. Nordlicht also reports that Facebook will release more photos, videos, and information about Mustang before its debut in the market in 2013. Aside from introducing its products, Ford also uses social media in organising activities, events, and partnerships with local communities. For instance, Klamm reports that Ford uses Facebook’s Instagram in its picture-taking contest, Fiestagram, featuring Ford Fiesta (paras. 3-6). Ford encourages its customers to participate in the contest and upload their photos via Instagram, and this strategy helps Ford attract a variety of market demographics, which includes car enthusiasts, photographers, and other interested people. Ford chooses Instagram for the event because of the emerging market associated with the said Facebook tool such as freelance photographers and video editors both amateur and professional. Relatively, this ensures that those emerging markets develop affinity to Ford’s products. Considering those advertising methods, one can say that Ford’s social media strategy is purely for collaborative projects wherein the company has the chance to partner with Facebook and Twitter in its advertising campaigns. According to Mangold and Faulds, partnering with social media helps companies bring themselves closer to the market, considering the social influence of social networking sites (362). Further, using social media to interact with customers directly reduces the costs allocated for paid traditional advertising through television and print. For instance, collaborating with Facebook in advertising Ford’s latest car brands drives the faster rate of brand awareness, particularly among internet-savvy car buyers. Ford also benefits from positive word-of-mouth advertising online. Risks of the Selected Social Media Method Although social media marketing develops distinct business edge, Kaplan and Haenlein remind companies to remain vigilant about cyber crimes such as hacking as well as their public relations in social networking site (65-66). This is because a bulk of customer-related information may be contained in the company’s social page, and the company may be held liable for whatever confidential information contained in their page. Further, Kaplan and Haenlein cite that companies should remain loyal to their niche and should not stray away from its most profitable target market. This ensures that customers would remain loyal to the company, as well. The most noticeable risk in tapping the social media as a marketing tool is the presence of destructive comments in the company’s pages, which could ruin the good reputation of the company. In this case, one can say that companies should maintain professionalism and good public relation strategies when using social media for marketing purposes. Points for Advancement Considering Ford’s existing social media marketing strategies, one can say that Ford needs only to strengthen its newly discovered niche while maintaining the patronage of its previous customers, as well. For instance, it may be profitable to develop the company’s customer support via social networking sites as this ensures that customers will receive the same fast service as the service offered in actual Ford outlets. This may include the introduction of more videos troubleshooting as well as virtual assistance. This corresponds to what Kaplan and Haenlein refer to as excellent accessibility and mass market appeal through interaction, which also helps develop customer loyalty (66). Aside from this, Kaplan and Haenlein suggest that developing the company’s online presence such as updated and authentic contents helps in building customer loyalty wherein customers get to know the company better. Conclusion Analysing Ford’s social media strategy gives insights about the risks and benefits of leveraging social media for marketing goals. Specifically, the advantage of using social media in product advertising includes high accessibility, favorable customer interactions, direct response, reduced advertising costs through partnerships, and increased media presence. Those benefits improve the overall financial performance of the company, considering that sales may increase along with the augmenting online traffic in the company’s fanpages. However, social media advertising also has its drawbacks such as the likelihood of cyber crimes such as hacking. Further, the bulk of emerging target markets online may also mislead companies, which may result to unprecedented loss of direction toward a not-so-promising emerging market. However, as Ford reports on sales increase due to its effective social media strategies with Facebook and Twitter, one can say that the company’s strategy is beneficial. Conclusively, Ford can only strengthen its market reach online while waiting for further partnerships with its social media partners. Works Cited Buss, Dale. “For Thinks It Has Better Idea About How to Handle Facebook.” Forbes. Forbes, 15 Jun. 2012. Web. 20 Nov. 2012. . Halliday, Jean. “Ford Taps Social Media for Customer Service.” Forbes. Forbes, 27 Mar. 2012. Web. 20 Nov. 2012. . Holliday, Matt. “Ford Will Give Facebook Fans the First Look at the 2011 Explorer.” Inside Facebook. Web Media Brands, 9 Jun. 2010. Web. 20 Nov. 2012. . Kaplan, Andreas M., and Michael Haenlein. “Users of the World, Unite! The Challenges and Opportunities of Social Media.” Business Horizons 53 (2010): 59-68. Print. Kaye, Kate. “Ford Mustang Ad Revs Up Facebook Logout Page.” ClickZ. Incisive Interactive Marketing, 20 Mar. 2012. Web. 20 Nov. 2012. . Klamm, Dan. “How Ford Used Instagram to Promote the Fiesta’s High-Tech Features.” Mashable. Mashable, 2 Feb. 2012. Web. 20 Nov. 2012. . Mangold, W. Glynn, and David J. Faulds. “Social Media: The New Hybrid Element of the Promotion Mix.” Business Horizons 52 (2009): 357-365. Print. Morrissey, Brian. “Ford Tries User-Generated Twist in Twitter.” Adweek. Adweek, 7 Oct. 2010. Web. 20 Nov. 2012. . Nordlicht, Donny. “2013 Ford Mustang Teasers Appear on Facebook, Leak Elsewhere Online.” Motor Trend. Motor Trend Magazine, 14 Nov. 2011. Web. 20 Nov. 2012. . Slutsky, Irina. “Ford and Twitter Talk Keys to Marketing to Millennials.” Ad Age. Crane Communications, 19 Aug. 2011. Web. 20 Nov. 2012. . Read More