Transcript Unit 43 - LO3

UNDERSTANDING SOCIAL MEDIA
FOR BUSINESS
T/505/5399
LEVEL 3
LO3 - Know benefits of social media
for business to an organisation
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AIM AND PURPOSE OF THE UNIT
Social media for business is a widely expanding
opportunity for organisations to embrace social media
and apply the social technologies to their business to
improve and promote business value. From marketing
and sales to product and service innovation, social media
for business is changing the way people in business
connect and the way organisations compete.
The aim of the unit is to give learners the understanding
of what social media is, the scope and impact it has, how
it is evolving and the opportunities these platforms
provide to businesses when promoting themselves or
utilising consumer information. By reviewing business
practice the learners will be able to identify how to
improve service and customer delivery, raise awareness
of business and products/services and improve market
intelligence to develop a competitive advantage.
Scenario
Criteria
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Assessment
Learning Outcome
(LO)
The learner will:
Pass
The assessment criteria
are the pass requirements
for this unit.
The learner can:
Merit
For merit the evidence must
show that, in addition to the
pass criteria, the learner is
able to:
Distinction
For distinction the
evidence must show that,
in addition to the pass
and merit criteria, the
learner is able to:
1 Understand the
concept of social
media
P1
Explain the
range of social
media services
M1
Explain
opportunities
provided by social
media to
individuals
D1
Evaluate risks to
individuals when
using social
media
2 Know social
media for the
business
environment
P2
Describe the
concept of social
media for
business
M2
Describe where
social media has
been successful in
promoting
businesses
D2
Compare and
contrast social
media and social
media for
business
3 Know benefits of
social media for
business to an
organisation
P3
Describe
benefits to an
organisation of
using social
media for
business
M3
Explain how social
media for
business could be
used to improve
business functions
D3
Propose success
criteria for an
identified
business when
introducing social
media for
business
Scenario
Criteria
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Assessment
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The tutor should encourage learners to look at how business could grow
using social media. Example companies and business types could be
given by the tutor to focus the learners on services that could be used.
A group review of these ideas would enable the learners to critically
evaluate each other’s ideas and identify which services are most
appropriate for different types of business.
The tutor should then discuss the business functions/ departments
common to most organisations and then encourage the learners to
identify which business functions may use social media to promote their
products, services etc. The learners could be given case studies or
fictional organisations by the tutor and preparing and presenting
suggested social business solutions to this organisation. They should
identify how they think the business could grow and the success criteria
that the organisation could use as a measure. Learners should also be
encouraged by the tutor to research well-known and larger
organisations and their social media activity, focus and scope. They
should then discuss in the group what impact they feel this has had on
the identified business and where this activity could be grown. They
may also identify business benefits to these businesses.
Scenario
Criteria
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Assessment
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For P3 learners must describe the benefits to an organisation of using
social media for business. This could be in the form of a report or leaflet
where a range of potential benefits to an organisation are described for
identified social media for business activities as suggested in the teaching
content.
For merit assessment criterion M3 learners must explain how social media
for business could be used to improve business functions. This could be
an extension of P3 where the learner explains how identified benefits to
an organisation could be applied to improve identified business functions
in line with the teaching content.
For distinction assessment criterion D3 learners must propose success
criteria for an identified business when introducing social business. This
could be in the form of a project plan but would need to include
milestones and supporting documentation over short, medium and long
term. The learner should make proposals to an identified business
detailing the aspects of social media they could introduce how the
benefits of these can be measured and the timescales that these would
involve.
Scenario
Criteria
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Assessment
For this section of the project you need to choose a new or a current
business with a weak or no online presence to base your findings on. You
will need to state the benefits to this company of creating and using Social
Media in order to create a Social business environment that can be
compared to others.
 This business can be fictional but needs to be able to be represented on a
larger scale than a local shop. The range of social media that will be requires
includes a wiki, forum, blog, Twitter and Facebook account as well as a web
presence for online sales or services.
 The company you select needs to be the focus for discussion either in its
products or services and the target audience and subsidiary audiences need
to be considered. Suggested businesses could include:
◦ A local sporting club
◦ A shop or restaurant that is planning on expanding into a franchise
◦ A sponsored local charity or appeal
◦ A website dedicated to support
◦ A review site for a range of goods and products,
◦ A magazine online supplement for promotional purposes.
◦ Any others will need to be agreed with by your Tutor and meet the criteria.
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Scenario
Criteria
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Assessment
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For any company potentially wishing to take the leap into promotions and
processes through social media the benefits to an organisation of using
social media for business.
Better customer and product awareness - Getting your products discovered
online goes beyond search engine results. Social media allows you to
interact and associate with the customers and having a website with well
thought out key words, proper encoding, and appropriate classification aids
in having your business information indexed on GPS devices, social media,
and other websites that index your business’s. Having a web presence and
more importantly, putting a company’s name out there, gets a company
noticed. Social media tells people who you are and what you sell.
Improves Sales – Few websites set out to just show the user who you are,
sales is always at the heart of any online presence. And social media is the
place to do this. There are tools, Data Mining, CRM, SEO and SEM, there are
sites to advertise, Comparethemarket and banner ads, there are promotional
methods, Google Ads and paying companies to push you up the ranks. But
nothing beats having and activating a social presence on the internet. Put a
YouTube video of your product on so the user can see it, push it up the list,
make it eye catching. Similarly start a forum for your own customers and
regulate it, contribute favourable mentions to blogs and wikis.
Scenario
Criteria
1
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Assessment
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Better and more accurate information - This comes as a surprise to many small
business owners, but there’s a significant chance that your business already has
a web presence. With websites like Yelp, Google, Facebook, Twitter and other
websites that allow user feedback, you can bet that someone has already
reviewed you. It’s an unfortunate truth, but a customer who has had a bad
experience with your business is considerably more likely to take to the internet
to write a review than someone who had a pleasant experience.
In this instance not having a website can be particularly damaging to your
reputation. If your business is on a reviewing platform with just a couple negative
reviews your business instantly loses credibility. The image is made worse by that
website being the first thing that comes up in a quick Google search for your
company’s name.
Bearing this in mind, having a website and utilising search engine optimisation
techniques allows you to push this kind of website further down the page of
results. Even with positive reviews, if the first thing that pops up when users
search for your business name is a user review site like Yelp your credibility takes
a steep slide into non-existence, even if you have more good reviews than bad.
Having a website gives you the opportunity to guide the conversation,
demonstrate the true information, talk and show the customer. While simply
having a web presence won’t stop people from writing negative reviews about
you, it does give you your own voice in the game that would otherwise be lost.
Scenario
Criteria
1
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Assessment
Improved feedback – Read one review and no other and we limit ourselves
down. Read a 100 reviews and 10% are bad then we have 90% of happy
customers. Social media allow us to have as many reviews as it takes.
Companies scan blogs, Google themselves, read the reviews on LinkedIn and
find out what customers are saying even when not asked. Create your own
media feedback form, create a wiki and a blog, make the company twitter
account visible on posters and ads, ask for feedback and encourage a buzz.
 Wider market place - Having a website opens up your business and your
products to a global audience, which is especially important if you utilise
your website as an e-store. Selling your products online is a great way to
supplement your offline business, and even if you’re not selling a product
even the simplest of websites offers exposure to a free market otherwise left
untapped.
 We live in a culture where “Google It” is a phrase and not having a website is
a bit of an oversight for any business in existence.
Task 1 – P3.1 – Describe the potential Market benefits to a company without a
presence, and state how each would improve business functions.
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Improves Sales
Improved feedback
Better customer and product awareness
Scenario
Criteria
1
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Wider market place
Better and more accurate information
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Assessment
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Human Resources (HR) is affected quite strongly with the rise in media
technologies used by businesses for functions like recruitment and
motivation.
Right staff attracted – For a teaching position it costs £2000 to advertise
for a post on the TES website but for this service the site promotes the
job, allows teachers to apply directly online, to store their CV’s for
schools to look through and to filter jobs applications specifically for
that position. Similarly Monster, Reed and other job sites have a similar
policy. The right staff can be attracted through these sites, Human
Resources can use these sites to headhunt, to scour for staff, and for a
site like TES the applicants can be emailed directly when a position that
meets their criterion comes up.
Motivation for staff and job engagement – Would you rather sit in an
office and type on word of be more engaged in content and promotion,
on recruitments and preparing materials. The Social Media is more
exciting, more motivational, it is new, it is shiny, Web 2.0 is here and is
a lot more engaging and active than the old less interactive pressures of
the job.
Scenario
Criteria
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Assessment
Addressing issues – One of the biggest benefits of Social Media is
that it can answer customers without you being there, 24/7.
Automated responses, guided results, Phones that redirect calls to
the right number, emails scanned and directed to the right user. And
they are always there, always with a response, never too busy to
answer. Click here to see how Paypal addressed their problems.
 How does a company know when customers are not happy. Read the
blogs, read the comments on Facebook. How does a company
respond and apologise publically, Tweet it. Similarly see how a
company fails when not using the medium properly here. The
Internet is impersonal, anonymous, people prefer not to face their
accused, they will tweet and post and blog rather than ring or
complain. That is modern society.
Task 2 – P3.2 – Describe the potential Functional Staffing benefits to a
company without a presence, and state how each would improve
business effectiveness.
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Right staff attracted
Scenario
Criteria
1
2
Motivation for staff and job
engagement
3
4
5
6
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9
Assessment
Addressing issues
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The second biggest advantage of having a web presence is Marketing, specifically
because marketing online is almost free and potentially more accurate. We have
dealt with SEO, SEM, Banner Ads, Pop-Ups and emails but this is just a part of the
marketing array companies use to target their audience.
Ability to target customers – Amazon have mastered this with their recommends.
CRM along with direct marketing means getting the right message to the
customer at the right time. Facebook use ads to pay for their services and these
ads know who you are, where you are, when your birthday is, whether you are
single or not. They read your status and your page and customise to your needs.
This is the ideal marketing tool, self directed marketing. Social Media does this
well, sometimes too well. Click here to see how Macy’s personalise their
shopping to direct target audience purchases.
Receive feedback to new concepts – Gone are the days when a feedback form was
in the box of goods when you bought it. Now it is online, or Tweeted or scanned
with a Smartphone. The Internet is full of sites where customers review products,
companies look at these and learn from them, they sign up to newsfeeds and
receive each review directly, they have tags on pages that monitor activity, how
long a customer stays, what they click on, where they go. They data mine to find
out what else the customer is looking at. Look at the links on Amazon and eBay
that track what you last looked at, add this to a cookie and a data mine and the
company will know all there is to know about why you bought or who you bought
from instead..
Scenario
Criteria
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Assessment
Improve customer retention/loyalty - There are any numbers of ways to compete for
one-time customer purchase, but the science of customer retention and repeat
business the lifeblood of business. The method commonly uses is to produce marketing
materials that accurately describe your product or service, and deliver a product or
service that is everything your marketing materials say it is. This is about putting the
customer first, developing trust, developing a niche and getting word of mouth to sell
your goods. One thing Social Media is good at is answering back, responsive emails,
weekly updates, customised recommends, databases that ask why you have not
shopped for a while, it is almost as if they care.
 Improved Brand awareness/loyalty – Search in a shop like Argos for a product and yet
get that one product, the page in the catalogue does not shout it out, it does not show
you what would look good with it. Shop online and you get similar products, same
brands, things that go well. The customised shopping experience, quicker than the
press of a button. And the website is branded, Mercedes silver, McDonalds green,
Ballymena aquamarine. And the colours remind us of the brand and all the products are
linked to the brand. Loyalty once there is drummed in, makes you welcome, keeps you
on the site, makes it interesting, drop down menus, 5 seconds, rollover images, 3
seconds, interactive banner, 10 seconds. And you are still there, looking at it.
Task 3 – P3.3 – Describe the potential Marketing benefits to a company without a
presence, and state how Social Media Marketing Tools would improve business visibility
and awareness.
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Ability to target
customers
Scenario
Criteria
Receive feedback
to new concepts
1
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5
6
Improve customer
retention/loyalty
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Assessment
Improved Brand
awareness/loyalty
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Better market/customer awareness – Facebook, Twitter and other social media are still little
more than big databases, data that can be analysed and predicted. Analytics is the art of
looking at this data, seeing trends, predicting increases and decreases. IBM and its Smart
Planet project (Unit 42) pushes this. Giving the customer more choice, more information and
analysing the results of this and other trends allows companies to understand their customer
base better. Knowing that your customer likes coming in to buy cheap burgers is one thing
but understanding what it is about the taste they like, which milk shakes sell more with
certain burgers etc. allows a company to customise their marketing. For instance there is
more shortbread, toffee and Turrocks sold in Corby than anywhere else in England, knowing
why allows Tesco's and Morrisons to customise promotions. Understanding the tides and
flows of distribution, of logistics, of when the market is good and slow allows a company to
taper their product during slow periods, especially useful when the stock is frozen or
degrades.
Customer engagement through social data – Social media allows companies to personalise
their engagement with the customer. Customers on your Twitter feed looking for offers are
customers with your name in their mind, customers who are seeing your brand and the
longer you are on line with them, on Twitter, having them friended on Facebook, looking at
your YouTube videos etc. the more likely they are to be brand loyal. More importantly social
contact through more personal media makes them feel more cherished, part of the team, a
member of a club. It is the difference between a letter saying “Dear Sir” than a letter saying
“Dear Christina.” This may seem more time consuming but again, big data, it knows your
name, your status, your likes and dislikes, it has seen your images on Facebook and what you
bought on Amazon. Companies who engage with this information can personalise their
contact, now how cherished do you feel.
Scenario
Criteria
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Assessment
Customer communities and support – Social Media is hard to control, if a customer
wants to complain they will go on a forum and complain. They will put it on their
Facebook, they will Tweet it, the Internet is too large to contain but to provide a forum
for them to complain or compliment means to build a cage for them. Gateway used to
have a room in Dublin where customers who were put on hold had the option of
speaking to other customers instead for support, you could be heard right away, by
non technical people, it became like an AA meeting, “Hi, I’m Dave and I have not been
able to access my USB ports for two weeks now.” Online forums and support pages on
websites are free, they are easy to moderate, they give support to any customer, they
allow for reviews and feedback, they allow customers to fix and support other
customers. And a customer with a repaired problem is a customer still using your
product.
 There are two ways this can be done successfully, provide the forum or support other
forums. Large Companies often hire staff to scour the Internet to support their
customers in forums, to update pages, to moderate forum content, to direct the
customers back to the companies site. This is standard business practice, support the
customer, increase brand loyalty. We do not buy the new Apple because the old one is
broken, we buy it because we want something better.
Task 4 – P3.4 – Describe the potential Sales benefits to a company without a presence,
and state how Social Media Sales tools would improve business relations with customers.
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Better market/customer
awareness
Scenario
Criteria
1
2
Customer engagement through
social data
3
4
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Assessment
Customer communities and
support
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Ease of access to customer data/history – Without access to big data, without the
presence of the Internet and stored information, companies relied on managing
information in files, folders and cabinets. Even with computers the information was
limited to prior purchases and customer registration details. With more information
gathering services from analytics, dig data, MySql and other forms, the information
stored on customers is more accessible. Amazon use this with their recommends,
Facebook with their adverts and Sainsbury’s with their Reward Card. Companies like a
school have linked databases with everything needed for a student, contact details is
linked to progression, to special needs, to prior attainment, to timetables, to
behaviour in lessons, to history of behaviour, to policies that have been put in place to
reports that have been written. Drop down the menu, click on a button and there is
more information. Effective companies are those who know how to manage this
information.
Speed of response – Having information at their fingertips is good but having an
instant response to a query is better. Automated response systems linked to prior
enquiries is becoming more popular as a service, specifically for technical queries like
product support. The linear pathway of “did you try this, then do this” response works
for certain things like installing hardware or software, online support and online
support forums means the information from the company and other users is available
immediately. The second form is deliberate response systems, base don prior
enquiries systems generate previous responses into a data column that automatically
generate when the customer types certain key words into a report form. These are not
always accurate and can sometimes annoy customers but the response is automatic.
Customers still appreciate this especially when there is a “Still did not work” option.
Scenario
Criteria
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Assessment
Improved customer service – At the end of the day the more customer service options there
are, the more the customer will be satisfied. Choice is everything, online and offline,
telephone and email, prior support and current customer help, whatever it takes to get the
job done. Social media means more contact time, more lines of support, more methods of
communication. The customer can choose and they would prefer to choose, if they prefer
face to face there is a service desk, if they prefer anonymous there is email and forums, if
they prefer to vent there is the phone. And every method is formal, written down, stored,
kept, analysed, improved, service is made better, more efficient and for online support, every
comment made adds to the database of solutions for the next customer.
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Customer care value – Customers like to feel valued, if a customer feels they have changed a
company policy, they will feel valued, they will know they have made a change, been taken
seriously. Ryanair has publically apologised for their quality of service and promised to
change and be better. This value added comment made by the chairman of the company to
customers added 3% to the value of the company and 8% ticket sales in the first month since.
Customer care means a lot to companies and social media is a good tool to use to generate
that good feeling. When Sony rewarded their loyal customers with credits or Rockstar with ½
million online points, this was the level of customer care expected. The twitter feeds for each
were huge, the forums good and bad but mostly good, this is the generated buzz companies
like from Social Media.
Task 5 – P3.5 – Describe the potential Customer Service benefits to a company without a current
presence, and state how Social Media Service tools would improve business relations with
customers.
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Ease of access to
customer data/history
Scenario
Criteria
1
2
Speed of
response
3
4
5
6
Improved customer service
7
8
9
Assessment
Customer care value
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Wider resources for development - Once a company has generated a social media
presence and an online presence, the added technologies that are adapted or new
to the market are easy bolt-ons. With the increased income generated by having
an online presence the company can expand online and offline, open more shops,
widen the product range, hire more staff, this is the reason most companies go
online for. Online can reduce down overheads providing more revenue. If it was
not for i-Tunes Apple would not be as large as it is, accounting for 18% of its
annual revenue without needing to post a single thing. Similarly for Sony, the
revenue generated without products accounts for a high percentage of income.
With this they can spend it on R&D, on licencing, on product promotion, on
expansion.
Faster Time to market – When Argos want to change a product price, remove a
product or add a product in their shops they usually add a supplement to their
books and when the product becomes popular or more permanent it gets
published in the book. Everything moves accordingly, more room set aside for
that range, pages change etc. A lot of time and effort. For an on-line presence this
is just a matter of adding a new product, move something on the page, add in the
details, the meta tags and suddenly the product is there. Same for removing it,
take it off the database, remove it from the list and it is gone. This is the nature of
online content, it is instant, it is available, it can be updated and be live within
minutes, real time product management and product control. It just takes longer
to arrive at the customers address.
Scenario
Criteria
1
2
3
4
5
6
7
8
9
Assessment
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Wider marketplace (global) - Companies who go online and push their Social Media,
suddenly have access to a world market which is a good thing, usually, increased
competition is only true if the company remained local and expanded its product range.
Having a global presence opens up all new avenues of problems and solutions. Potentially
more money, better sales, increased demand, more visibility, untapped markets in other
countries who might have been crying out for what you have. Both the BBC and Channel 4
make as much money franchising their programmes because there is a market abroad for
British goods. Finding missing Doctor Who episodes in Nigeria came as a surprise. Think of
the demand for other goods in countries where this might be a novelty or necessity. First
there is the ex-Pat community, and then there are Cars, JCB’s industrial machinery etc.
especially to BRIC countries. Click here and here and here to see what Britain goods are
good for abroad.
Sharing wider data – Having a presence overseas can also mean sharing data with other
branches and with overseas outlets. All digital data can be shared and shared easily, either
through the use of a WAN or through Cloud or SSL. Internally data gathered can be
disseminated through the departments, logistics, sales, marketing, Human Resources but it
can also be used for additional purposes, projecting promotions, ads, generating revenue
through sponsorships etc. Having all this data and using it for all it is worth is the mark of a
company with ambition.
Task 6 – P3.6 – Describe the potential Product Innovation benefits to a company without a
current presence, and state how Social Media Service sharing would improve business
relations with customers.
Wider resources for
development
Scenario
Criteria
1
Faster Time to
market
2
3
4
5
6
Wider marketplace (global
7
8
9
Assessment
Sharing wider data
Your company is ready now for to have a web presence and a Social Media
presence to boost it Social Business contracts. In order to make policies clear to
staff they will need to draw up a Social Media Contract for staff to read and
understand before allowing Media sites to host business information.
 In this Social media Contract they will need to state the effective need and use for
all Social Mediums they plan on using and the reasons why the use of Social media
and a web presence needs to be done, how this will benefit the company and what
social business functions it is likely to address. Use this template to prepare this.
 Effective terms of good and bad practice need to be made clear but this policy
also has to meet the criteria set for successes to be achieved. Successes means
prospective business advances, therefor the company wants to state openly what
they hope to achieve in terms of Customer Care, Online presence, Sales and
marketing purposes so new staff can be made aware of the Social media contract
they need to abide by.
Task 7 – M3.1 – Create a Social Media Guideline Document that outlines the
companies Social media plans, it’s hope of successes and how it will deal with Sales
and Marketing online.
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Purpose and Aim
Twitter Guidelines
LinkedIn Guidelines
Media Sharing Guidelines
Facebook Guidelines
Blogs Guidelines
Wiki Guidelines
Business Functions Guidelines
Marketing Guidelines
Sales Guidelines
Customer Service Guidelines
Product Innovation Guidelines
Scenario
Criteria
1
2
3
4
5
6
7
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9
Assessment
Further to this proposal the company would like you to plan the proposal to take into account the
timeframe of putting their Social Business Plan into place, starting from the moment the Website
goes live to the moment the company takes into account feedback from the customers on whether
the Social media presence is effective. This timeline should be produced as a Gantt chart showing
times beginning and times ending for set up and construction. The following stages should be
considered:
◦ Website site going live.
◦ Creating Social Media Documentation
◦ Setting up a LinkedIn Account
◦ Setting up a Facebook Account
◦ Setting up a Wiki Internal Account
◦ Setting up a Blog Account
◦ Setting up a Twitter Account
◦ Setting up a YouTube Account
◦ Setting up a Image Sharing Account
◦ Getting feedback from customers from each of the above.
◦ Producing e-marketing materials
◦ Adapting web presence
◦ Adapting Data management and data analytics
◦ Setting an e-commerce presence
 Milestones and supporting documentation over short, medium and long term will also have to be
set on the timeline.
Task 8 – D3.1 – Create a Social Media Guideline Document that outlines the Timeline and Milestone
Social media plans that takes into consideration all the development stages.
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Scenario
Criteria
1
2
3
4
5
6
7
8
9
Assessment
Further to the production of the Social Media Contract the company would like you to plan
the proposal to take into account the following Success Criterion and the benefits that come
with them:

Improved perception of product service

Improved awareness of business

Increased sales

Broader customer base
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Improved customer data/response

Improved communications

Increased trust
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Improved targeting for marketing
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Return on investment
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With each of these the company would like to know how the success criterion is likely to be
measured and the timescales involved in each of these. Each will have a different measuring
tool, some may be made through the measurement of increased sales, some through a
change in ethos and awareness via the blogs and comparison sites, and some may be
through company accounts when the Net and Gross company values are measures at the end
of the tax year. Everything needs to be measured for a company to succeed, every aspect of
business needs to be transparent in order to see what is working, what isn’t and what part of
the policy needs to be adapted.
Task 9 – D3.2 – Create a Social Media Guideline Document that outlines the Success Criterion
and Benefits that come with them.

Scenario
Criteria
1
2
3
4
5
6
7
8
9
Assessment
Task 1 – P3.1 – Describe the potential Market benefits to a company without a presence,
and state how each would improve business functions.
Task 2 – P3.2 – Describe the potential Functional Staffing benefits to a company without a
presence, and state how each would improve business effectiveness.
Task 3 – P3.3 – Describe the potential Marketing benefits to a company without a presence,
and state how Social Media Marketing Tools would improve business visibility and
awareness.
Task 4 – P3.4 – Describe the potential Sales benefits to a company without a presence, and
state how Social Media Sales tools would improve business relations with customers.
Task 5 – P3.5 – Describe the potential Customer Service benefits to a company without a
current presence, and state how Social Media Service tools would improve business
relations with customers.
Task 6 – P3.6 – Describe the potential Product Innovation benefits to a company without a
current presence, and state how Social Media Service sharing would improve business
relations with customers.
Task 7 – M3.1 – Create a Social Media Guideline Document that outlines the companies
Social media plans, its hope of successes and how it will deal with Sales and Marketing
online.
Task 8 – D3.1 – Create a Social Media Guideline Document that outlines the Timeline and
Milestone Social media plans that takes into consideration all the development stages.
Task 9 – D3.2 – Create a Social Media Guideline Document that outlines the Success
Criterion and Benefits that come with them.
Scenario
Criteria
1
2
3
4
5
6
7
8
9
Assessment