Instead of window-shopping in malls and stores we can window shop from the comfort of our homes. If we want to know how something works or whether or not it fits our specifications, we can research that information online before purchasing the product.
Television commercials and newspapers are no longer a primary influence on our buying decisions. Internet users head straight for the Internet when considering a purchase, i.e., car, electronics, medicine, hotel, airline tickets, etc.
The threat in this case is the Internet and the ways in which the Internet can be used against businesses. The new Web 2.0 and social media are affecting businesses in ways that some business owners never thought possible.
http://www.flickr.com/photos/smileham/ / CC BY-NC 2.0
Marketing and advertising is now a two-way street. In other words, consumers have a voice in online media. In the past consumers were subjected to advertising and were just on the receiving end of the spectrum. Now consumers can quickly and easily voice their opinions on products and services online through social media websites such as FaceBook, MySpace, and Twitter, through retail websites that offer review and opinion pages, and lots of other online platforms.
Consumers have power and whenever someone has power they are considered a threat. “Profiting From the Threat” is a way that businesses and marketers can turn the so-called threat into profits.
In order to “Profit From the Threat” businesses and marketers need to be aware of their surroundings. They need to be involved and alert to what is being said or posted online about their businesses. Especially in the case of negative reviews or feedback which could greatly harm a businesses reputation and cause a loss of revenue.
THERE ARE BOTH POSITIVE AND NEGATIVE WAYS TO RESPOND TO CONSUMER FEEDBACK.
In the article Web 2.0: “Profiting From the Threat”, there was mention of a case where JetBlue customers started a blog pinpointing a incident where JetBlue left them stranded on a tarmac in a storm back in February of 2007. JetBlue responded by posting a video apology from its CEO on YouTube. According to the article, “The video was viewed 40,000 times in its first seven days online, during which time JetBlue received thousands of supportive e-mails and phone calls from consumers.” This is a great example of being aware of your surroundings and being involved in your online presence. Had JetBlue dismissed this opportunity for reprisal they would have surely felt the affects monetarily.
On the other side of the coin, Motrin posted a video that many moms found condescending. The video offended mothers who carry their babies in slings across their backs or fronts or sides and suggested that mothers only wore the slings to be “fashionable moms” and that even if their backs were in pain and they looked crazy it was ok as long as they looked fashionable. Motrin ignored the negative feedback for days and then finally offered an apology on their website, www.motrin.com, that even Seth Godin said, “isn’t a honest note from a real person”.
‘Ignoring what’s happening on the Internet can be as detrimental as handling the situation incorrectly’ according to Rob Williams of Orange Jack LLC. Monitoring your online presence as a business can also be beneficial in other ways. Responding to positive feedback can help your business in various ways. You can find out what customers want, what they don’t want, what product or customer service improvements need to be made, etc., Many times just reading customer reviews can help you make better business decisions.
Business owners can take advantage of forums by lurking and by joining in some of the conversations about their own businesses. Forums, blogs, chats and reviews offer business owners a wealth of free information that can be used in marketing strategies. Joining in conversations on these sites can also be a way to clear up misconceptions and to address consumers concerns. Some business owners start and maintain their own blogs, which help establish a brand presence and costs a lot less than traditional media. Information from blogs can also be used as an inexpensive form of product research.
According to a graph in “Click” that rates “Market Share of Visits to Email Services and Social Networking Categories” social networking categories were beginning to surpass email services in April of 2007 for the first time. In contrast the article “Search Soars, Challenging Email as a Favorite Internet Activity” has a similar graph dated from January 2002 until May 2008 that shows Email visits surpassing social networking sites by 47 percent.
Regardless of what graph shows what, we all know that the Internet and more specifically Web 2.0 has and is changing consumer behavior. Consumers have more access to more products and services and information. We have access to reviews and opinions on products and services from thousands of other consumers. We no longer have to rely on just the opinions of our friends and family members. Web 2.0 allows consumers to save money, review products, voice our opinions and interact with other consumers all over the world.
References:
Elkelmann, Hajj, Peterson, “Web 2.0:Profiting from the Threat”. Booz Allen. Retrieved May 25, 2009, from http://www.strategy-business.com/li/leadingideas/li00037?pg=0
Fallows, Deborah. “Search Soars, Challenging Email as a Favorite Internet Activity”. Pew Internet & American Life Project. Retrieved May 25, 2009, from http://pewresearch.org/pubs/921/internet-search
Godin, Seth. “We Feel Your pain”. Seth Godin’s Blog. Retrieved May 25, 2009, from http://sethgodin.typepad.com/seths_blog/2008/11/we-feel-your-pa.html
Motrin, “Controversial Motrin Mom Commercial”. Motrin. Retrieved May 25, 2009, from http://www.youtube.com/watch?v=BmykFKjNpdY
Tancer, B. (2008). Click: Web Who.0, 7, 129
Williams, R. (2008) “Social Media Podcast”. Orange Jack LLC. May 25, 2009
