How Social Networking Can Hurt You in the Supply ChainBuyers' Training
May 8, 2013 — 1,428 views
Social media networking is being widely used for business expansion and marketing. This is a modern marketing tool used by companies to make their products accessible to their customers. Purchasing professionals can make use of social networking sites to conduct product or supplier research, gain knowledge, and expand the professional network.
This online method of interaction is better than the traditional methods of interactions. But there are many disadvantages that this networking model can pose. Here are some difficulties that purchase professionals in an organization may face due to social networking.
Business Risks Involved
By promoting your brand on a social networking site, you are actually handing over a part of your brand’s reputation and management to the customers. In case of any disparity among the customers regarding your product, social networking sites can be used by the customers to mention their grievances. This negative feedback can indirectly affect the company’s profile.
Advertising through social networking sites poses certain legal risks too. There is a chance of leakage of confidential information regarding the company or the product on the internet. This can affect the company’s reputation. False advertising on social media sites can also be an issue at times. These false advertisement campaigns can give rise to legal risks. Also, misleading comments and information that are posted by hired parties can damage your reputation and credibility. They can lead to the initiation of legal action.
The Cost Factor
The process of using social media in the purchasing process is not free of cost. New product promotion strategies should be devised regularly. Information regarding the products should also be posted regularly. This might require dedicated work from the employees, but in turn will lead to an increase in the overall company expense.
Spam and Viruses
If you use social networking in the purchasing process, then make sure you update your homepage daily. Checking your account and updating it regularly is also necessary. Otherwise it can lead to the accumulation of unwanted comments on your page. There is also a possibility of hackers to commit fraud and launch virus and spam attacks.
If your company or product is famous, then there can be many scam links related to your page or product. The risk of people falling to these online scams has also increased. This can result in the theft of identity and data, and the loss of credibility of your product.
Loss of Productivity
Loss of employee productivity can be noticed when social media networking is adopted. This is caused as a result of employees using social networking sites for personal purposes during work hours.
A well-defined policy should be in place regarding the use of social media in purchasing. The policy should define what social networking in purchasing actually means to your organization. The legal consequences of not abiding by the laws should also be explained. Try to provide examples of policy violations. Disciplinary measures for violations should also be cited in the policy.
So, while using social networks, you should be aware of the dangers that it poses.
Understand that social networking sites are not the ultimate tool, but only one of the methods of product promotion. So plan your marketing strategy accordingly.