Using Social Media for Global Marketing

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  • 0:04 Social Media Background
  • 0:42 Identifying Target Markets
  • 1:48 Increasing Affordability
  • 2:54 Increasing…
  • 4:03 Lesson Summary
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Lesson Transcript
Instructor: LeRon Haire
In this lesson, readers will be introduced to several ways that social media positively affects international business, and why those means are so effective.

Social Media Background

In today's ever-evolving market, many of the most successful businesses have recognized that growth comes not only domestically, but globally as well. Global companies such as Nike, Pepsi, McDonalds, and others were able to successfully grow their empires at a time when the phrase 'social media' may have referred to a TV Guide. However, social media today has progressed into a billion-dollar industry, thanks in part to the growth of social media sites such as Facebook and Twitter. Let's discuss some of the strategies used by social media to increase global brand awareness and how they've been effective.

Identifying Target Markets

One of the primary ways that social media can help to initiate or grow a business internationally is through target market identification, sometimes known as niche marketing. Target market identification focuses on finding a specific group of people that have a higher chance to purchase your product or service based upon their likes or interests. For example, Nike may choose to target those individuals that play sports, because many of their products are either directly or indirectly related to sports and outdoor activity.

The creation of social media has allowed businesses to thrive by identifying target markets. For example, LinkedIn is a social media site renowned for its ability to encourage networking amongst its users by enabling them to create or join specific forums and groups with similar interests. This concept is the very essence of niche, or target, marketing.

Target market identification is an effective part of social media, and it increases global awareness because it narrows the search channels for organizations and businesses looking to target a specific segment of people with similar interests.

Increasing Affordability

Although you may be unaware of this, global companies and industries can spend millions of dollars in commercials, billboards, and other marketing opportunities. This is all an attempt to gain traction in markets outside of the U.S., which can mean big business. Social media provides companies with affordable marketing options to reach multiple international markets. This form of advertising makes for great profit margins.

Profit margins can be best described as the amount by which revenue exceeds costs and expenses in a business. Let's take a look at the following example of profit margins in order to better understand how affordability helps with global marketing initiatives.

Let's assume that it costs you two dollars to create a product, but you sell it for thirty dollars to the public. Your profit margins are $28, which is the difference between how much it costs to make and how much you are selling it for. High profit margins are a direct result of the money saved by advertising through social media, which makes social media an effective tool for growing international business.

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