Companies using social media effectively have a strategy that sets them apart in reaching customers and increasing business. According to J.H. Kietzmann et al., “Social media employ mobile and web-based technologies to create highly interactive platforms via which individuals and communities share, co-create, discuss, and modify user-generated content,” (2011). The data social media sites collect is a marketer’s dream. Companies are able to tap into exactly what their followers are interested in and create a conversation with their target market. Companies struggle to determine what role social media should play in their marketing efforts.  Media-savvy companies include social media in marketing plans as an executive priority and look at social media as a tactical rather than strategic decision. At the other end of the spectrum are companies with leadership that views social media as nothing more than a passing fad with no relevancy to the business. The benefits of social media marketing include increased brand awareness and favorable brand perception, and increasing traffic to the website. We will examine companies that are effectively using social media along with a few that are not. J. H. Keitzmann et al., states “[Social Media] presents an enormous challenge for firms, as many established management methods are ill-suited to deal with customers who no longer want to be talked at; instead, customers want firms to listen, appropriately engage, and respond” (2011).     Many companies have started to embrace social media. Not only is it a marketing tool, but it is a way for customers to interact with the company in question. Dunkin’ Donuts is one of those companies that uses social media effectively. As of July, 2013, Dunkin’ Donuts had over 6.6 million fans on Facebook and over 150,000 followers on Twitter (Sohn, 2013). As of January 13 of this year, Dunkin’ Donuts has over 11 million fans on Facebook and over 477,700 followers on Twitter (Moskowitz, 2014). They are also using Instagram, Pinterest, Google+, YouTube and even Vine to reach their customers. According to Jessica Gioglio, the Public Relations and Social Media Manager of Dunkin’ Donuts, “we don’t own our social media channels—our fans do,”(Meltzer, 2103). The main concern when it comes to Dunkin’s social media is their fans, their customers, the people that shop in their stores and drink their coffee.  Chipotle is another company that uses social media effectively. They focus their marketing on millenials- the people who are more likely to buy their products. They don’t use traditional marketing strategies, such as television ads. They focus on social marketing, where their fans/customers are more likely to follow them and interact with them. Their budget is much smaller than the fast food juggernauts, McDonald’s and Burger King, and all of their marketing is done in-house. However, they are showing much faster growth than the other two companies (Schoultz, 2012). Their use of social media reaches the people they want and expect to be eating their food and that is why they are successful.     Social Media allows companies to advertise their brands at a low cost, keep in touch with their customers and attract new customers.   So how are large companies still not taking advantage of these tools?  Costco for example, has only tweeted four times since they created their account on twitter, the last tweet being on June 29^th 2011.  That is almost three years ago.  There are millions of users on twitter and they have millions of customers daily.  They could potentially have millions of tweets not being answered.  It would have been better for them to never have set up a twitter account at all.  Now with it up, customers have the option to tweet their thoughts about Costco.  They should not have opened the option if they were going to ignore their customers.        “The audiences are now actively participating in the creation of information as they are offering their opinions based on personal experiences. This can turn out to benefit a company if positive comments are made about the brand-though it can also turn against the brand’s reputation users post negative remarks” (Ramsaran-Fowdar 2013).     This information would be a lot more useful to Costco if they were interacting with the information they are receiving. Facebook is the earliest form of social media adopted by businesses.  Although it seems some companies missed the train.  SuperValu did not create their Facebook page until 2009.  Even now the page is bare.  They have a mission statement, a company overview and a link to their website.  There has never been a status update or any pictures. Statuses are a great way to keep a company relevant and on the mind of the consumer.      “Organizations are interested in exchanging and spreading information, trading products or services, staying close to current and potential customers, acquiring a better understanding of their customers and other benefits generated by Facebook” (Ramsaran-Fowdar 2013). Companies should design a marketing campaign that will enhance their brand when using social media.  
             To be effective in marketing a company via social media channels, companies must invest in the personnel to manage those channels.  Based upon research conducted by market professionals, “among surveyed business execs, 58% say their companies are now using social media channels and 21% say they're preparing to launch social initiatives" (http://www.marketingprofs.com/charts/2011/4269/brands-dont-use-social-media-effectively).  
              Most companies struggle to gauge the effectiveness of social media.  Cited among business executives being the most challenging were:

•     Understanding social media's potential to make a difference: 41%
•     Measuring the effectiveness of social marketing activities: 40%
•     Linking social marketing activities to financial outcomes: 31%
•     Improving ability to fully utilize social media: 28%
•     Demonstrating the value of social media to others in the organization: 25%

              Business executives stated “the top three benefits" of social media marketing were:

•     50% cited increased brand awareness
•     30% cited increased website traffic 
•     26% cited favorable brand perception 

In today's growing society of technological advances, businesses must stay relevant and communication must be instant when promoting their products and services.       

References
Brands don't use social media effectively. (2011). Retrieved from http://www.marketingprofs.com/charts/2011/4269/brands-dont-use-social-media-effectively

Kietzmann, J. H., Hermkens, K., McCarthy, I. P., & Silvestre, B. S. (2011). Social media? Get serious! Understanding the functional building blocks of social media. Business Horizons, 54(3), 241-251.

Meltzer, C. (Interviewer) & Gioglio, J. (Interviewee). (2013). Dunkin’ Donuts: How Dunkin’ Donuts Keeps Its Passionate Fans Running on Social Media — Live from BlogWell.[Interview transcript]. Retrieved from The Big List Blog: http://www.socialmedia.org/blog/dunkin-donuts-how-dunkin-donuts-keeps-its-passionate-fans-running-on-social-media-live-from-blogwell/

Moskowitz, D. (13 Jan, 2014). Social Media Throwdown: Dunkin’ Brands vs. Starbucks. Retrieved fromhttp://www.fool.com/investing/general/2014/01/13/dunkin-brands-increases-customer-engagement-via-so.aspx

Ramsaran-Fowdar, R., & Fowdar, S. (2013). The Implications of Facebook Marketing for Organizations.  Contemporary Management Research, 9(1), 73-83.

Sohn, T. (Interviewer) & Vine, K. (Interviewee). How Dunkin’ Donuts Uses Social Media [Interview Transcript]. Retrieved from SocialTimes http://socialtimes.com/how-dunkin-donuts-uses-social-media_b100752

Schoultz, M. (2012).  A Story about Chipotle’s Non-Traditional Marketing Strategy. Retrieved from http://www.digitalsparkmarketing.com/creative-marketing/non-traditional-marketing/ 

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