The book Socialnomics: How Social Media Transforms the Way
We Live and Do Business by Eric Qualman offers critical insight in how social media marketing is the wave of the future. Qualman argues that “social media touches nearly every facet of our personal and business lives” (xiii). Social media is the new arena for the competitive environment. A competitive environment is defined as a state in which a company must operate, particularly in reference to similar companies. The social media competition itself is an economic regulator of market strength. Social media marketing giants gain market control which can then encourage substandard products and services at elevated prices.
Social media marketing also has to account for the economic environment. The economic environment is defined as the financial state in which a company has to operate, particularly in reference to a region and the financial health of the consumer base. Economic analyses are critical in understanding how to create a social media marketing plan.
At the same time, social media marketing has to account for the political-legal environment. The political-legal environment is defined as a state in which a company has to operate in reference to the rules, regulations, and governing bodies that control the nature of operations. Understanding this aspect of the business environment is critical as social media marketing plans can conflict with the political-legal constraints and ultimately force a company into unwanted situations including legal proceedings. This system of control is dominated by the political-legal environment and this defines the limits of what social media marketing can attempt or aspire to.
Social media marketing is also contingent upon the technological environment. The technological environment is defined as a state in which a company must operate with particular reference to the prevailing technical specifications relative to the...