FOUNDATIONS OF BUSINESS Fifth Edition Chapter 14 Exploring

FOUNDATIONS OF BUSINESS Fifth Edition Chapter 14 Exploring Media and e-Business Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Learning Objectives (1 of 2) 14 -1 Examine why it is important for a business to use social media. 14 -2 Discuss how businesses use social media tools. 14 -3 Explain the business objectives for using social media. 14 -4 Describe how businesses develop a social media plan. • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Learning Objectives (2 of 2) 14 -5 Explain the meaning of e-business. 14 -6 Understand the fundamental models of ebusiness. 14 -7 Identify the factors that will affect the future of the Internet, social media, and e-business. • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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 • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Timeline for the Development of Social Media (1 of 3) SOCIAL MEDIA BREAKTHROUGH • 1991: AOL • 1995: Classmates. com; Yahoo • 1996: AOL instant messenger • 1998: Move. On. org, Google • 1999: Napster, Blogger, Epinions, Live. Journal • 2001: Wikipedia, Stumble. Upon • 2002: Friendster, Technorati • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Timeline for the Development of Social Media (2 of 3) • 2003: Linkedln, Wordpress, My. Space, Hi 5, Photobucket, Delicious • 2004: Gmail, Flickr, Facebook, Yelp, Digg • 2005: You. Tube, Mashable, Reddit, Bebo • 2006: Twitter • 2007: Tumblr • 2008: Apple’s App Store • 2009: Foursquare • 2010: Pinterest, Instagram • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Timeline for the Development of Social Media (3 of 3) • • 2011: Google +, Snapchat 2012: Facebook sells stock to the public 2013: Twitter sells stock to the public 2014: Smart electronics and crowdfunding became popular • The Future: Who knows what the next generation of social media will mean for both individuals and business? • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Why Businesses Use Social Media • The six most important benefits for a business that uses social media • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Social Media Tools For Business Use • Social content sites allow companies to create and share information about their: – Products – Services • They use: – – – Blogs Videos Photos Podcasts Webinars Commercials • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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 • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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 MP 3 players Smartphones • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Social Media Ratings • Social media enables shoppers to access: – Opinions – Recommendations – Referrals • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Social Games • A social game is: – Multiplayer – Competitive – Goal-oriented activity – Defined rules of engagement – Online connectivity among a community of players • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Social Media Communities • Social media communities are social networks based on the relationships among people • A forum: – Is an interactive version of a community bulletin board – Focuses on threaded discussions • A wiki: – Is a collaborative online working space – Enables members to contribute content – Contains sharable with other people • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Top Seven Social Media Networking Sites Used by Businesses • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Crisis and Reputation Management • Important reasons for listening to stakeholders: – Determine whethere is a crisis brewing – Companies are less than a year away from some potential crisis – Monitoring social media for conversations may predict a crisis • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Listening to Stakeholders • Listening to conversations on: – Facebook – Twitter – Other social media sites • Helpful in understanding what people think about a company’s products and services • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Targeting Customers • Millennials are tech-savvy digital natives born after 1980 • Companies use tech-savvy target marketing on social media to increase awareness and build brand among customers • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Social Media Marketing Social media marketing is the utilization of: – Social media technologies – Channels – Software to: § Create § Communicate § Deliver § Exchange … offerings that have value for an organization • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Inbound Marketing Inbound marketing describes new ways of gaining attention and customers by creating content on a Web site that pulls customers in • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Generating New Product Ideas Crowdsourcing involves outsourcing tasks to a group of people in order to tap into the ideas of the crowd • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Recruiting Employees • Current employees’ friends and family often prove to be good job candidates • Linked. In: – – Largest social network for professionals Saves time Lowers recruiting costs Allows employers to see more information about candidates • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Developing a Social Media Plan • Step 1: Listen to determine opportunities • Step 2: Establish social media objectives • Step 3: Segment and target the social customer • Step 4: Select social media tools • Step 5: Implement and integrate the plan • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Types of Information That Can Help Target Different Social Media Customers (1 of 2) The more information you have about social media customers, the easier it is to develop a social media plan that targets the “right” customer. • POTENTIAL SOCIAL MEDIA CUSTOMERS – General Information § Age, income, gender, ethnicity, education, occupation, family size, religion, etc. – Identifying Factors § § § What do they consider important? How do they spend their time? What do they buy and how often do they buy? • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Types of Information That Can Help Target Different Social Media Customers (2 of 2) – Social Media Usage § § § How often do they use social media? Do they use Facebook, Twitter, You. Tube, and other social media sites? Do they create videos, Web pages, or other content? Do they read ratings and reviews? What other factors can help you identify potential social customers? • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Measuring and Adapting a Social Media Plan: Quantitative • Quantitative social media measurement consists of using numerical measurements such as: – – Counting the number of Web site visitors Number of fans and followers Number of leads generated Number of new customers • Key performance indicators (KPIs) are measurements that define and measure the progress of an organization toward achieving its objectives • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Quantitative Measurements for Selected Social Media Websites Type of Social Media Typical Measurements Blogs • • • Unique visitors Number of views Ratio of visitors to posted comments Twitter • • Number of followers Number of tweets and retweets Click through rate (CTR) of tweeted links Visits to website from tweeted links Facebook • • Number of likes Number of comments Growth of wall response Visits to websites from Facebook links • • • Number of videos Number of visitors Ratio of comments to the number of videos Number of embedded links You. Tube • • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Measuring and Adapting a Social Media Plan: Qualitative • Qualitative social media measurement is the process of accessing the opinions and beliefs about a brand • Uses sentiment analysis to categorize what is being said about a company • Other measurements include: – Customer satisfaction score – Issue resolution rate – Resolution time • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Cost of Maintaining a Social Media Plan • Social media costs both time and money • Important to measure the success of a social media plan and make adjustments if needed • Use quantitative and qualitative measurements to determine if getting a positive return on investment in social media • Social media is particularly important to businesses that use e-business • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Defining e-Business • e-business is the organized effort of individuals to produce and sell the products and services that satisfy society’s needs through the facilities available on the Internet • Mobile marketing is communicating with and selling to customers through mobile devices • Outsourcing is the process of finding outside vendors and suppliers that provide: – Professional help – Parts – Materials at a lower cost • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Combining e-Business Resources (1 of 2) While all businesses use four resources (human, material, informational, and financial), these resources are typically more specialized when used in an ebusiness. • BUSINESS: – HUMAN RESOURCES § § § Website designers Programmers Web masters • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Combining e-Business Resources (2 of 2) – MATERIAL RESOURCES § § § Computers Software High-speed Internet connection lines – INFORMATIONAL RESOURCES § § § Customer tracking systems Order fulfillment and tracking systems Online content-monitoring systems – FINANCIAL RESOURCES § § Investors interested in supporting e-business firms Electronic payment from customers • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Satisfying Needs Online • Two basic assumptions: – Internet has created new customer needs – e-business can satisfy those needs, as well as traditional ones • The Internet can be used by both individuals and business firms to obtain information • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Creating e-Business Profit • Business firms can increase profits either by: – Increasing sales revenue – Reducing expenses • Each source of revenue flowing into a firm is a revenue stream • Providing online access to information that customers want can reduce costs • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Fundamental Models of e-Business • A business model represents a group of common characteristics and methods of doing business to: – Generate sales revenues – Reduce expenses • Two primary e-business models: – Business-to-business (B 2 B) – Business-to-consumer (B 2 C) • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Planning for a New Internet Business or Building an Online Presence (1 of 2) The approach taken to creating an e-business plan will depend on whether you are establishing a new Internet business or adding an online component to an existing business • SUCCESSFUL E-BUSINESS PLANNING – Starting a new Internet business § Will the new e-business provide a product or service that meets customer needs? § § Who are the new firm’s potential customers? How do promotion, pricing, and distribution affect the new ebusiness? • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Planning for a New Internet Business or Building an Online Presence (2 of 2) § Will the potential market generate enough sales and profits to justify the risk of starting an e-business? – Building an online presence for an existing business § Is going online a logical way to increase sales and profits for the existing business? § Are 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? • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Models (1 of 4) • B 2 B is the model used by firms that conduct business with other businesses • B 2 C is the model used by firms that focus on conducting business with individual consumers Although modified versions of B 2 B or B 2 C, these business models perform specialized e-business activities to generate revenues. • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Models (2 of 4) Advertising e-business model : • Advertisements that are displayed on a firm’s website in return for a fee. Examples include pop-up and banner advertisements on search engines and other popular Internet and social media sites. Brokerage e-business model : • Online marketplaces where buyers and sellers are brought together to facilitate an exchange of goods and services. One example is e. Bay (www. ebay. com), which provides a site for buying and selling virtually anything. • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Models (3 of 4) Consumer-to-consumer model : • Peer-to-peer software that allows individuals to share information over the Internet. Examples include Bit. Torrent (www. bittorrent. com), which allows users to exchange digital media files. • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Models (4 of 4) Subscription and pay-per-view e-business models: • Content that is available only to users who pay a fee to gain access to a website. Examples include investment information provided by Standard & Poor’s (www. netadvantage. standardandpoors. com) and business research provided by Forrester Research, Inc. (www. forrester. com). • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Internet Growth Potential • • About 3 billion people in the world use the Web 279 million Americans use the Internet Americans comprise 10 percent of all Internet users Number of Internet users in developing countries is expected to increase • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Ethical and Legal Concerns • The Internet is a new “frontier” without borders and with little control by governments or other organizations • Socially responsible and ethical behavior by individuals and businesses on the Internet are major concerns – Cookies are small piece of software sent by a Web site that tracks an individual’s Internet use – Data mining refers to the practice of searching through data records looking for useful information • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Internet Crime • Malware is software designed to infiltrate a computer system without the user’s consent – – Computer viruses Spyware Deceptive adware Other software capable of criminal activities • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Future Challenge for Computer Technology, Social Media, and e-Business • Both business users and individuals must consider the cost of obtaining information and computer technology • Cloud computing is a type of computer usage in which services stored on the Internet is provided to users on a temporary basis • In addition to cost, there a number of external and internal factors that a business must consider • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Internal and External Forces That Affect an e-Business (1 of 2) Today, managers and employees of an e-business must respond to internal forces within the organization and external forces outside the organization. Successful e-business • Internal forces – – – Planning activities Green IT Organizational structure Human resources Management decisions • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Internal and External Forces That Affect an e-Business (2 of 2) – Available financing – Information database • External forces – – – – Globalization Demographic factors Society The economy Competition Technology Political forces Legal issues • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Green IT • In addition to the obvious internal factors that affect how a company operates, a growing number of firms are concerned about how their use of technology affects the environment • Green IT describes all of a firm’s activities to support a healthy environment and sustain the planet • Many offices are reducing the amount of paper they use by storing data and information on computers • Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.