In today’s technologically driven world, social networking sites have become a huge exploit for retailers to extend their marketing campaigns to a wider range of consumers. Chi says social media marketing is a “connection between brands and consumers, offering a personal channel and currency for user centered networking and social interaction”(2011, 46). The approaches for communicating with customers have changed greatly with the rise of social media, so businesses must learn how to use social media in a way that is consistent with their business plan (Mangold and Faulds 2099). This is especially true for companies striving to gain a competitive advantage.
Although social media marketing is a well-researched topic, it has only been studied through experimental and theoretical research; studies never completely describe the benefits companies gain from this marketing tactic. In reviewing the large amount of multi-disciplinary literature, it has become clear that studies are focusing on describing what social media marketing is, as well as examining what factors affect consumer behavior to social networking. Despite the initial progress made by researchers, development in this area of study has been limited. Research needs to expand by providing a deeper understanding of the long term promotional gains companies get from social media marketing. More formalized studies are also needed to progress beyond theorized or predicted outcomes in order to gain knowledge of real life situations.
To consider social media as a marketing tool a retailer must understand every aspect of it. Social media cannot be understood without first defining “Web 2.0:” a term that describes a new way in which users use the World Wide Web, a place where content is continuously altered by all operators in a sharing and collaborative way (Kaplan and Haenlein 2010). “It is much more to do with what people are doing with the technology than the technology itself, for rather than merely...