Week 3 Understanding Social Media Consumer and Digital Business Model

Why do people participate in social media? People motivation to use social media because of information, they may share their information to each other. People also will use for social connection such as self-expression whether it may provide the opportunity for individual to share their own review and opinion.  Other than that, people can create a community development for a purpose to discuss public issues.  People also can catch out with friends or family, share pictures and videos to each other and also can get the news rapidly. How to segment the social media audiences? There were some ways to segment social media users. First, use social media target such as Facebook allows businesses to aim their messages to users based on data for instance, geographic, interest, gender. Secondly, create a group that anyone can join or member must be approved by admin or moderator. You can share information, advertising or messages to group members. Next, there have six significant consumer trends which are device shift, communications shift, content shift, social shift, video shift, retail shift.

What is digital business model? Digital business model is a set of planned activities designed to result in profit in a marketplace” (Laudon & Traver, 2007), and also a business model is the method of doing business by which a company can sustain itself — that is, generate revenue” (Rappa, 2009). The function of business models are articulate the value proposition which is create value for user, identify a market segment, define the structure of the value chain, forecast the cost structure and profit potential of the above, describe the position of the firm with the value network linking suppliers and customers, and formulate the competitive strategy by which the innovating firm will gain and hold an advantage over rivals. For example, The Business Plan Overview Template is effective model that have questions about the target customer market, distribution plan, executive team and a SWOT (strengths, weaknesses, opportunities, and threats) analysis.

References:

https://blog.hubspot.com/marketing/segment-social-media-audience