Socialnomics

In the last chapters of Erik Qualman's Socialnomics the following are my most important takeaways:

As we move towards a more digitized model of conducting business, the marketing philosophy has greatly shifted from one that focuses on pizazz and messaging to one that is all about the product and really understanding what the consumer wants. Qualman calls this new model a "referral program on steroids" (130) because the success of business today depends more on the information customers share about the products they use through social media and less on what the advertising agency thinks the customer wants. Socialnomics has opened a new window where middlemen are removed from the equation and customers can be reached directly for their opinions and for their endorsement of certain products.

This new model is a game changer and is frightening for companies that have been successful creating in-house campaigns that they once thought were a service to the consumer. This fear has led to massive law suits and fumbles by companies who are not taking advantage of the free, cheap and simple opportunities that are now available to not only market their product, but to also introduce that product to a new, broader audience. The example that Qualman uses of the music industry suing start ups like Napster shows the potential missed opportunities the industry could have had in capturing a new market of consumers who wanted their music digitized (155). It is important for companies to move beyond listening to consumers and to give them a voice, to treat them as important stakeholders who are willing to support a product they love. Socialnomics is a new platform to get the voices heard through mediums like twitter and Facebook where active participation sustains the current customer base and attracts more fans.

Though there are benefits to this new digitized business model, Qualman points out that digital consumers are largely out of touch when it comes to interpersonal relations. We are all so connected digitally but the elimination of personal contact devalues oral communication. There is tremendous value in one-on-one in person communication because of non verbal cues that we would otherwise miss. I do believe that the benefits Qualman lists such as time saving, better research etc (215) outweigh the disadvantages. As the next generation of business people I do think that we can overcome this small hurdle if it means more efficient business practices that put more focus on the consumer.