Executive Interviews: Interview with Dr. S Ramesh Kumar on Social Networking
May 2010 - By Dr. Nagendra V Chowdary

Dr. S Ramesh Kumar
Professor of Marketing, Indian Institute of Management (IIM), Bangalore

• As a marketing professor, how do you describe the advent and the (near) ubiquitous presence of blogs, social networking sites, YouTube, LinkedIn, Orkut, Twitter, etc? What do these ‘social’ innovations signify at a very personal level?
  Social networking by its spirit has been happening for centuries in tea shops, sit-outs of houses, in public places. Indians have a collectivist culture with a strong tendency to establish relationships and perhaps this is reflected in the exponential growth of mobile phones with over 500 million subscribers in less than a decade. The addition of computers and digitalization of socialization has opened up unlimited possibilities at the personal level but the digitalized culture of social networking is limited to computer literate persons.

• While some argue that they undermine the social fabric of a society, many epitomize them as harbingers of the end of corporate imperialism. What, according to you, would be the unintended consequences (both positive as well as negative) of these ‘social’ media?
  Technology always has been a moot point. There is always a negative side even to the human mind.
  The ultimate negativity of social networking can be an overdose of hedonism – the sensual pleasure involved in networking. We have already read news items that mention how extreme cases of death being reported due to over use of such media. On the positive aspect educating consumers, opinions about brands, emergence of youth culture which marketers may be interested in and entertainment outcomes provide several opportunities with regard to digital networking.

• How do you look at the ‘social’ media segments – there are various types of online social media from social networks of friends and professionals to microblogging services, to video sharing sites, with informal online network of friends (Facebook, Orkut, QQ), artists (MySpace), visual junkies (YouTube, Hulu, Vimeo, Daily Motion for Videos and Flickr, Picasa and Snapfish for photos) and professionals (LinkedIn)? Do you foresee a proliferation and consolidation (either sequentially or simultaneously) in social media segments?
  I think the classic principles of segmentation and targeting would eventually take over. We already have LinkedIn as a professional website. We would have very specialized networks coming up with proliferation of networks. Specialization would also enable business models to be developed. For example, a network specializing in baby care would certainly attract young, urban mother segments and a variety of revenue possibilities could come up.

• Every country has its cliques, whether based on education, social background or spiritual beliefs. In Spain, Italy and Latin America as well as France, business people speak of the influence of Opus Dei, a conservative Catholic lay order which supports a number of business schools. America has its Ivy League alumni groups and Rotary Clubs. Chinese business people often rely on guanxi, or personal connections. How then the (online) social networks are different from the oldstyle networks?
  Online networks are enabling mechanisms to bring together a sub culture of beliefs. For example, there can be network for consumers who would like to share a sense of nostalgia.

• Financial Times recently (March 17, 2010) reported that social networking website Facebook has capped a year of phenomenal growth by overtaking Google’s popularity among the US Internet users, with industry data showing it has scored more hits than the search engine. Facebook’s membership has crossed 400 million (430.2 million, as per comScore) in February 2010 (when it celebrated its sixth birthday). Is it a sign that the Web is becoming more sociable than searchable?
  I think sociability and search possibilities go together. Google’s Buzz is an example of the brand is offering the provision to its members. For instance a consumer searching for a new brand of bike in a network may be equally interested in forming a relationship with groups of who have a compatible lifestyle.

• A recent blogworks survey indicates that the blog and Social Media (SM) environment is evolving rapidly and India is no exception to this. The survey reveals that the SM credibility is on the increase: 90% believe that blogs and SM platforms have an impact on business and marketing; 90% believe that buzz and word of mouth are top deliverables from SM activities; 65% think SM can deliver insights and over 46% hope to create better products and services through SM activities. What’s your assessment of such social media environments in emerging markets’ potential to innovate?
  It is difficult to perhaps credibility issues without much data on it. But getting into the consideration set of consumers is a challenge for new offerings and staying in the consideration set of consumers is a challenge for existing consumers. Both these aspects can be effectively attempted through social media that may slowly replace conventional advertisements (replace may be strong view place but that conveys the impact of this media)

• How should companies look at social networking sites – complementary or competitive threats?
  It is an evolution – complementary or threatening will depend on how a brand/company responds with its own marketing mix strategy taking into consideration this emerging media. For example a brand like Closeup toothpaste aimed at youngsters may use social networking to strengthen its associations among the target segment.

• The US users spent nearly sixand a-half hours on Facebook compared with fewer than two-and-ahalf hours on Google. What does the rising popularity of social networking mean for business? How should companies convert all such users’ time to their advantage?
  This would differ from category to category and brand to brand. A film being launched is different from an automobile brand attempting this objective.