Social networks and marketing

Abstract 

Internet users are spending increasing amounts of time on social networking sites, cultivating and expanding their online relationships. They are creating profiles, communicating and interacting with other network members. The information and opinion exchanges on social networking sites influence consumer decisions, making social networks an interesting platform for companies. By monitoring social networks, companies are able to gain knowledge about network members which is relevant for marketing purposes, so that by introducing the appropriate marketing measures, they can influence the market environment. The multiplicity and versatility of the information in tandem with the complexity of human behavior exhibited on social networks is posing new challenges for marketing. The present contribution illustrates how market research can assist marketing on social networks. In the first instance, it describes the potential benefits inherent in analyzing the information obtained from social networks, such as profiles, friendships and networking, for identifying and forecasting product preferences, advertising effectiveness, purchasing behavior and opinion dissemination. In the second instance, it discusses the opportunities and risks of marketing measures such as advertising, word-of-mouth marketing and direct marketing, on social networks. In each part, insights obtained from literature are summarized and research questions of relevance to consumer research are derived.