Why major companies are worried about adapting to Social marketing in the economic downturn

SMO is cost effective and can do wonders to excel brands and because of its flexibility can make a small budget campaign into a worldwide overnight sales machine. But the answer lies in trust, and some established brands still get concerned that this direction can break the trust between its current consumer output and the message it puts across. There is still critics that say marketing a brand through a social network creates a negative sales vibe to people who are just looking for friends, wanting to share information about favourite movies and music and so forth. But look at the success stories - Pot Noodle ran an excellent campaign in getting consumers to upload videos through their you tube channel of favourite clips helping to benefit the company and still give them an open brand. Entertainment retailer HMV are leading the way with their GetCloser social network site, allowing consumers to build their collections with other consumers, allowing them to import itunes play lists and discuss their favourite actors and more, not only is this giving the brand enormous strength but its also increasing sales margins - for a very small clever, marketing campaign.
I believe their is a higher succession rate if brands market their products through fun and exciting consumer material like the two examples above.
SMO gives brands so much data from demographics to consumer input to the business. Dan Cobley, the Director of marketing for Google in the UK said that, brands should not apply a broad-brush approach in their campaigns - people visit social networks for specific purposes and embracing a brand to the nuance of the network give a more likely and more successful approach to social network marketing.
As long as a brand integrates with the audience, the campaign will be clear and above all, successful.
Going back to the issue of Trust, I contacted several major brands regarding an exclusive network to help build each brands consumer development, the sound was a resounding NO and I debate this quite carefully, I truly think that the reason behind the decision is down to lack of knowledge and a concern for the brands welfare in what might seem “a cheap and ineffective idea” , I truly believe that all brands CAN and should adapt to keep brand flowing whilst ironing out costly marketing techniques in this dark economic climate.

Chris
Marketing Director – Ultima Media Group International
http://www.ultimamediagroup.com