Social Media Marketing (SMM)

AAA

DEFINITION of 'Social Media Marketing (SMM)'

The use of social media websites and social networks to market a company’s products and services. Social media marketing provides companies with a way to reach new customers and engage with existing customers.

INVESTOPEDIA EXPLAINS 'Social Media Marketing (SMM)'

Social media websites allow marketers to employ a broad range of tactics and strategies to promote content. Many social networks allow users to provide detailed geographical, demographic, and personal information, which allows marketers to tailor their message to what is most likely to resonate with the user. Because Internet audiences can be better segmented than more traditional marketing channels, companies can ensure that they are focusing their resources on the audience that they want to target.

A major strategy used in social media marketing is to develop messages and content that individual users will share with their family, friends, and coworkers. This strategy relies on word of mouth, and provides several benefits. First, it increases the message’s reach to networks and users that a social media manager may not have been able to access otherwise. Second, shared content carries an implicit endorsement when sent by someone that the recipient knows and trusts.

Social media strategy involves the creation of content that is “sticky”, meaning that it will get a user’s attention and increase the possibility that he or she will conduct a desired action, such as purchase a product or share the content with others. Marketers create viral content designed to spread between users quickly.

While social media marketing can provide benefits, it also can create obstacles that companies may have otherwise not have had to deal with. For example, a viral video claiming that a company’s product causes consumers to become ill has to be addressed by the company, regardless of whether the claim is true or false. Even if a company is able to set the message straight, consumers may be less likely to purchase from the company in the future.

RELATED TERMS
  1. Social Media Optimization (SMO)

    The use of social media networks to develop and manage an organization’s ...
  2. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  3. Telemarketing

    The act of marketing goods or services to potential customers ...
  4. Privileged Communication

    Interaction between two parties in which the law recognizes a ...
  5. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  6. Guerrilla Marketing

    A marketing tactic in which a company uses surprise and/or unconventional ...
Related Articles
  1. Personal Finance

    Using Social Media To Reach Customer Service Departments

    Companies are increasingly using social media and this provides customers with another channel to receive customer service.
  2. Entrepreneurship

    How To Use Facebook As A Marketing Tool

    Facebook can be a viable marketing platform for your business. It can even earn you revenue.
  3. Personal Finance

    Social Media Advertising Done Wrong

    Here are some of the more notable social media disasters involving large companies.
  4. Professionals

    Using Social Media To Your Advantage

    It's almost effortless for a business to use social media. Here's how to do it the right way.
  5. Professionals

    A Guide To Corporate Social Media

    Using social media can help get your company or product out there. Read on to learn about some helpful tips.
  6. Entrepreneurship

    When To Hire A Social Media Professional

    Freelancers and marketing agencies are just some of the resources companies are now using to develop their social media.
  7. Entrepreneurship

    8 Guerilla Marketing Tips For Small Businesses

    These cost-effective marketing strategies can help take your business to the next level.
  8. Entrepreneurship

    7 Popular Marketing Techniques For Small Businesses

    This guide will help you get the word out about your small business.
  9. Entrepreneurship

    From The Printing Press To The Internet

    Find out how this invention contributed to the development and evolution of the U.S. economy.
  10. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center