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Social media marketing is the use of social media platforms to market a product or service. Most of these social platforms have their own built-in analytics, where companies can track the progress, success, and engagement of ad campaigns. Companies address several stakeholders through social media marketing including (potential) customers, (potential) employees, journalists, bloggers, and the general public. On a strategic level, social media marketing includes the management of the implementation, governance, scope (e.g. more active or passive use) and the establishment of a firm’s desired social media culture. This requires marketers to incorporate user-generated content (earned media rather than paid media) into their strategic approach
Social media can be used not only as public relations and direct marketing tools but also as communication channels (targeting specific audiences with social media influencers) and as customer engagement tools. Facebook and LinkedIn are leading social media platforms where users can hyper-target their ads. Hypertargeting not only uses public profile information but also information users submit but hide from others. There are several examples of firms initiating some form of online dialog with the public to foster relations with customers. According to Constantinides, Lorenzo and Gómez Borja (2008) “Business executives like Jonathan Swartz, President and CEO of Sun Microsystems, Steve Jobs CEO of Apple Computers, and McDonalds Vice President Bob Langert post regularly in their CEO blogs, encouraging customers to interact and freely express their feelings, ideas, suggestions, or remarks about their postings, the company or its products”. Using customer influencers (for example popular bloggers) can be a very efficient and cost-effective method to launch new products or services Narendra Modi current prime minister of India ranks only second after President Barack Obama in a number of fans on his official Facebook page at 21.8 million and counting. Modi employed social media platforms to circumvent traditional media channels to reach out to the young and urban population of India which is estimated to be 200 million.