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 * Here's a general outline:**

**I.** **Abstract** 2.** **Other back material as needed, detailed tables, extended quotations from which shorter quotes are taken, etc.**
 * II.** **Purpose of the Report**
 * III.** **Background of the Topic**
 * IV.** **Discussion of Current Issues**
 * V.** **Recommendations for Managers of IT**
 * VI.** **Attachments**
 * 1.** **Bibliography

 Social media has gained significant momentum as a business tool in the past five years. In the following study will analyze how selected small businesses currently use social media, how the businesses may expand the use of the social media medium and precautions small businesses should consider when utilizing social media. The business owners interviewed for the research study vary in their product and service offerings: personal training, music, systems consulting and a karaoke machine retailer. The conclusion of the research will include recommendations for why a small business may consider the utilization of social media as a strategy to gain or maintain competitive advantage.
 * Abstract**

Social media outlets such as Facebook, LinkedIn, MySpace and Twitter have widespread, worldwide popularity. According to Facebook's Press Room statistics, there are over 300 million Facebook active users worldwide, and more than six billion minutes are spent each day, by users, online (Facebook, 2009). The allure of social networking is tremendous, making it possible for people to connect globally, with ease and free of charge. Many small businesses utilize social media as a marketing tool because it costs nothing and it reaches a large audience. The purpose of this study is to reveal the strategic implications social media and networking provide for small businesses seeking competitive advantage. The research team will first analyze how social media advertising differs from traditional marketing and advertising. Interviews conducted with four small businesses, currently using social media sites, will identify how they currently use social media in terms of marketing. The conclusion of the report will include recommendations for why businesses should utilize social media for competitive advantage.
 * Purpose of the Report**

In order to conduct a study on social media and networking, the concept of social media and social networking must first be defined. S. Boyd, of Socialmedia.biz states, "Social Media are those forms of publishing that are based on a dynamic interaction, a conversation, between the author and active readers, in contrast with traditional broadcast media where the ‘audience’ is a passive ‘consumer’ of ‘content’” (Boyd, 2009). Through the social media platforms, such as Facebook.com, MySpace.com, LinkedIn.com, and Twitter.com, users create connections, or networks, as further explained by Laudon, "Social networking is the practice of expanding the number of one's business or social contacts by making connections through individuals. Social networking sites link people through their mutual business or personal connections, enabling then to mine the friends (and their friends' friends) for sales leads, job-hunting tips, or new friends. MySpace.com. Facebook.com, and Friendster.com are for people who are primarily interested in extending their freindships, while LinkedIn.com focuses on job networking" (Laudon, 2009, p. 417).
 * Background of the Topic**

Social networking stems from a person's desire to connect and interact with others who may be related or share similar interests. Private and public forums were the first form of social networking on the Internet. Created in the 1990’s, they quickly grew in popularity, spurring millions of community sites where people logged in and conducted discussions, typically around specific topics of a special-interest website. Around the same time, real-time chat applications came into play, like ICQ and AOL instant messenger. The real-time chat option required users to log onto a website or download an application to talk to other people who were online at the same time. Blogging gained popularity as well, and these online diaries were put on sites like LiveJournal.com and Wordpress.com.

In the late 1990s, SixDegrees introduced the first social networking website that allowed the user to create a profile and trace friendships through people. SixDegrees' premise was that individuals are all connected to each other somehow though direct and indirect relationships. By connecting with friends and family, then connecting with friends of friends and family members, the platform enabled users to meet new friends and potential love interests through a network. It had short-lived popularity, followed closely by Friendster in 2002, “an online community that connects people through networks of friends for dating or making new friends.” (Friendster Beta Website). Since its conception, Friendster has become well known in the Asian communities, and in the United States newer social media forms have replaced it, such as MySpace, Facebook, LinkedIn and, more recently, Twitter.

The popularity of a given social media site and the abandonment of another appears to be connected to a site's functionality. Six Degrees gave way to Friendster, which was then replaced by MySpace because the earlier social media platforms had slow server speeds, and once the initial novelty of connecting with friends and family wore off, there was little else to do on the sites. With both Six Degrees and Friendster, users lost interest. MySpace and, later, Facebook offered more, not only to individuals, but functions that businesses could utilize for little to no cost.

MySpace launched in January 2004, and now has over 65 million users in the U.S. alone. According to the creators of MySpace.com, it is a “technology company connecting people through personal expression, content, and culture. MySpace empowers its global community to experience the Internet through a social lens by integrating personal profiles, photos, videos, mobile, messaging, games and the world’s largest music community.” MySpace was the first site to allow users to explore public profiles, and users could utilize it as a virtual bulletin board to post information, pictures, music and video. Like Friendster, MySpace offers its users the ability to customize their personal pages, making the site very popular among teenagers and those in their twenties. As a business platform, bands and filmmakers use the site because of its ability to post material and get instantaneous feedback from known and unknown MySpace users. In less than three years, it became one of the most popular websites on the World Wide Web (Random History).

“The Facebook.com” also started in 2004 at Harvard University, as a personal network between students. It quickly extended to other universities and then in 2005, it became Facebook.com, garnering worldwide recognition. Facebook appeals to a different audience than MySpace, focusing on navigation capabilities and a uniform appearance in contrast to the high degree of variability displayed on MySpace. Users have access to free games, videos, links, and fan pages that continue to grow daily. The company's overview states, “Facebook's mission is to give people the power to share and make the world more open and connected. Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet.” (Facebook 2009) Fan pages are becoming increasingly popular on the Facebook site. This is a page made by a business, cause, or individual that users may connect to as a fan. The fan page is then displayed through an individual's profile to his connections, and that individual may encourage his connections to also connect to the fan page. A fan page allows for an individual to post information about her business separately from her personal page.

For users in search of a business networking platform, LinkedIn.com is a professional social media website. First launched in 2003, users may add business contacts, provide recommendations and create a strong business network. The LinkedIn mission states, “Relationships Matter” and that “Your professional network of trusted contacts gives you an advantage in your career, and is one of your most valuable assets" (LinkedIn, 2009). LinkedIn provides value to the small business because it allows for an individual to share professional information with people he does business with, and make contacts with an associate's network through introductions or an InMail function.

Twitter is a combination of previous networking sites. It is a mini blog, that has the ability of active updating to Facebook, which also has SMS or instant-messaging capabilities. The original concept of Twitter was “initially inspired by the concept of an ‘away-message’ merged with the freedom and mobility of [Short Messaging Service] SMS. Twitter began as an experiment in 2006. When value as an instant communication network during shared events like earthquakes, conferences, and festivals emerged, Twitter began to grow” (Twitter Business). The goal of a tweet is to get a point across in 140 characters. Twitter allows individuals and businesses to broadcast an announcement or status in real time. It enables users to pick who's information they want to follow, who they want to allow to follow them, and if they want to be a part of any groups that they might find interesting.

MySpace, Facebook, LinkedIn and Twitter are just a sample of social media formats available to today's Internet users. Through social media, individuals and businesses find a way to connect on a virtual platform. For the analysis of how small businesses may use social networking, MySpace, Facebook, LinkedIn and Twitter are the focus in this study.

Social media is a popular marketing medium for small businesses because it costs little to nothing. A. Gooding, owner of Inspire Fitness, states that she chooses her advertising media based on “anything that is free. I use Facebook, word of mouth, and I write a column for our local paper. I have handed out fliers at schools, and I have had a booth at a local health fair. I’m also a 'contestant' for Best of Western Washington, personal trainers, and even if I don’t win, it’s great publicity” (Appendix A). When asked about how he advertises, Rex James Band's co-founder, D. Powell replied, //“//We’re doing [Facebook], Hotmail, [MySpace], newsletter, website, Sonic Bids – for bands, help you get bids, help you update your calendar. Artist Direct just recently – currently in BETA – currently free, they have a lot of cool tools to format calendar and they update [Facebook] and [MySpace] for you – one stop shop.” (Appendix D). For R. Mickler of Mickler and Associates, "I chose Twitter because of its phenom-quality and its growth – it's fairly popular and has the greatest 'sticking power' out of all of them, I think. I chose LinkedIn because it's a more professional site than Facebook, and conveys the professional information in a way that I can control" (Appendix C). Small businesses have limited advertising budgets, and social media provides a free venue for marketing.
 * Discussion of Current Issues**

In addition to being free, social media provides an interactive forum for the small business to "meet" its customers. In traditional advertising, the advertiser broadcasts to an audience, but does not get immediate feedback. Social media facilitates a conversation between the small business and its customers. It is through these conversations that social media provides a business to consumer electronic commerce (B2C). B2C "involves retailing products and services to individual shoppers" (Laudon 2009, p. 420). Social media provides a forum where businesses may start a conversation with potential clients, creating a relationship that allows for both the business and customer to decide if and when they will do business together.

Unlike large businesses, a small business may not have the capacity to serve a large customer base. When asked about his business growth, Mickler responded, “I'll start from 2004 – I acquire about 7-10 additional customers a year (roughly a 15-20% growth rate) and that's been fairly consistent. Growth rate is tricky for a company my size: too much growth and I'd have to hire a staff, and that's not in my business plan; too little growth and I can't keep up with attrition and my competitors. Generally, 20-percent of my customer base are cornerstone assets that I spend my most time with. The other eighty-percent are potentially new cornerstones...” (Appendix C). A business like Mickler and Associates must be able to be selective about who it sends its marketing message to, because the business's size limits the number of clients who it may help at any given time. In traditional advertising, a marketing message is broadcast through radio, television, Internet banner ads or print. To prevent an overwhelming response to advertising, a small business may have selected a direct-mailing campaign to communicate with past and potential clients. Social media allows a business the choice to either focus advertising to a select group or a public forum. Through a MySpace profile or Facebook fan page, a business may provide information to friends and family, who push it further, as potential customers view your friends and family's profiles. Twitter allows a business to select a limited audience for its messages or utilize the public Really Simple Syndication (RSS) feed to build searchable content on the Web. LinkedIn provides a platform for businesses to connect through their colleagues, so that they are only offering their services to those already a part of their network.

Growth is not the only element a small business may want to control. If an individual starts a home-based business, the business owner wants to know her clients. Social media provides a means to communicate directly with friends and friends’ friends. According to A. Gooding, “Because I have a gym studio in my house, I am very careful with whom I 'hire' as clients. Therefore, I would much rather market to those who I know, in hopes they know someone who needs a personal trainer” (Appendix A). Gooding created a fan page on Facebook and invited her friends and family members to connect to the page. As friends of friends also connected to the page, she could learn more about the potential clients by looking at their profile information or asking friends and family about the person.

For a small business that wants more exposure, search engine optimization (SEO) is a benefit of social media presence. Search engines started on the Internet as "simple keyword indexes of all the pages they visited" (Laudon 2009, p. 293). In 1998, the launch of Google introduced a new facet to the index, "This search engine was different; Not only did it index each Web page's words but it also ranked search results based on the relevance of each page" (Laudon 2009, p. 293). As search engines continue to evolve, small businesses benefit from appearing in unsponsored search links (links that were not paid for), because the more presence a small business has on the Internet, the more likely it will appear in a keyword search. The Rex James Band recognizes the benefit of more exposure, “The more places your music and 'keywords' are on the Internet, the better chance people will find you on the Internet and search engines can correctly categorize your website with the keywords when people do searches, this is all part of a technique that large companies spend millions on each year to increase their search engine ratings...” (Appendix D). We see this in Russell Mickler’s experience as well, “It's very useful. Content pushes more search engine results my way, making me look like a good authority, and that improves people finding me on the web” (Appendix C).

The small business owners interviewed for this study largely described the benefits of social networking, but there are negative aspects in the utilization of social media. L. Nguyen of VitekUSA explains why he will not use MySpace, "There are just too many ads on that people don’t pay attention to any type of advertisement. I believe people are programmed to filter out any type of ads on MySpace" (Appendix B). The sites, while free for users, need to make money to support growth and development. One key way the online social media sites make money is through paid advertising. On MySpace, animated banner ads run along the top and side of a user's profile. As a result, the user is bombarded with advertisements, and eventually learns to ignore them. Nguyen's concern raises the question regarding how long it will be before Facebook users ignore business fan pages, because the person feels bombarded with marketing messages. Nguyen states that he feels multi-level networking is the best business model, but when asked if he would expand his use of social media, he replies, "My long term advertising strategy is to push more advertisement on forums and blogs that has to do with karaoke, less of social media" (Appendix B).

Another negative aspect of social media is the potential loss of an individual's privacy because much of the information placed on a social media web site is publically available through search engines. R. Siciliano, an internet security analyst, writes, "Privacy issues and identity theft in social media are a growing concern. Most people who post their personal information about themselves do not recognize the potential consequences of their actions, or maybe they simply don't care if their entire life is an open book" (Siciliano, Huffington Post, 2009). Gooding mentioned that her use of advertising on Facebook is strictly targeted towards friends and friends' friends, because she conducts business from a home-based gym. However, friends of friends' friends also have the ability to view some content she posts, diminishing the security of her profile, should she use her personal profile to promote her business. A business owner must make the decision on how much or how little online exposure she desires to obtain. On Facebook, business owners may elect to steer current and potential customers to a fan page. The fan page gains a following through word-of-mouse networking, friends forwarding Internet content to friends, and a dedicated business page keeps the focus on the business, rather than the business owner's personal information. The business owner should eliminate any references to her business on her personal profile if she wants to heighten her personal profile privacy. For example, when performing a search for "Inspire Fitness" on Facebook, both the Inspire Fitness fan page and Gooding's personal page appear in the search results. If Gooding prefers to be excluded from the search results, she would need to remove all references to Inspire Fitness on her personal profile.

There is the risk of misleading or controversial information on social media sites that may present risks to a business. Social media is largely unregulated. Users of Twitter, for example, may face lost business or legal troubles if a disgruntled client voices an opinion that is defamatory. Entertainer Courtney Love is being sued by a clothing designer for posting 140 character rants about the designer, including name calling such as "liar" and "thief". The designer alleges her business has suffered due to Love's posts (Reuters, March 2009). Businesses who use social media must remember that once they post their business information on the Internet, it is vulnerable to negative commentary and potentially open to anyone that performs a web search. Business owners should perform frequent searches on Google, Yahoo and Bing search engines to observe the content displayed in the public forums. A business owner may also elect to receive email or mobile text alerts when their name or their business' name makes a new appearance in a search engine.

And, while Facebook and MySpace creators encourage users to report "abuse" of the sites, it does not prevent the presence of controversial content. "[MySpace has] many teenage subscribers [who] post suggestive photos of themselves and lie about their age. About one-fourth of all MySpace users are registered as minors under 18 years of age, but that number could be larger" (Laudon, 2009, 418). Businesses who choose social media advertising must choose networks that reflect their product or service, and be aware of how other users' content may affect the perception of a business. When a business does not select the correct venue, the misplaced social media advertising may tarnish a company's image. For the Rex James Band, MySpace provides a platform for sharing music and allows the band to interact with its fans. It appeals to a twenty-something audience, as well as other bands and entertainers. The band recognizes that MySpace appeals to a young and potentially controversial audience, and because of this, riske or offensive posts are not necessarily a liability. On the other hand, high-traffic, highly interactive platform like MySpace or Facebook would not work for a professional service, like Mickler and Associates, who may desire testimonials, but not a steady stream wall posts that require frequent attention. Mickler wisely selected LinkedIn to reflect his business' image of professionalism and uses Twitter as a real-time interactive tool to engage current and potential customers.

Why should a business use social media? A business's ultimate goal is to achieve competitive advantage, "Doing things better than your competitors, charging less for superior product, and responding to customers and suppliers in real time all add up to higher sales and higher profits that your competitors cannot match" (Laudon, 2009, p. 13). Social media provides businesses with an opportunity to gain competitive advantage. The research reveals that businesses utilizing social media reduce advertising expenses, generate more revenue, improve the speed of response to customer needs and connect with their customers on a more intimate level, generating customer loyalty.
 * Recommendations**

Social media saves money in advertising. Traditional advertising, including television, print ads, Internet banner ads, radio and direct mailings can be expensive. Businesses may spend anywhere from hundreds to thousands of dollars on advertising, not including the time spent in developing the ads themselves. The businesses interviewed for this study all expressed an interest in low or no-cost advertising, and identified social media as a desirable no-cost advertising medium. Driving advertising expenses down provides a means for businesses to offer more competitive pricing on products or services. A business may also utilize the savings in advertising and allocate money for improvements in the business, such as research and development for superior products, better-skilled employees and expanded services.

Saving money is not the only financial advantage social media offers a business. A company increases its revenue through social media by targeting the right customers and connecting directly to them. Customers and potential customers using the Internet produce searchable content. Through SEO, a business (using the same technology that customers use to find them) locates individuals or companies that may benefit from their product or service. Laudon explains, "People spend hours surfing pages, checking out other members, and exchanging messages and they reveal a great deal of information about themselves. Businesses harvest this information to create carefully targeted promotions that far surpass the typical text and display ads found on the web. They also use the sites to interact with potential customers. The ability to deliver digital goods and digital content over the Web has created a new alternative to traditional print publications and broadcast media" (Laudon, 2009, p. 417).

The speed that social media allows for businesses to respond to customer needs may also positively affect revenue. "E-commerce is ubiquitous, meaning that it is available juat about everywhere, at all times" (Laudon, 2009, pg. 410). Customers expect to be able to communicate and perform transactions with businesses, 24 hours a day, seven days a week. Through social media, customers can interact with the business, readily get answers to questions or provide feedback on products and services. Facebook, MySpace, LinkedIn and Twitter all have applications available for smart phones, allowing business owners to respond from anywhere at anytime. Business owners are no longer tied to offices, standard business hours or microcomputers in responding to customer needs.

Social media is part of an enhanced application of Web-based technology, also known as Web 2.0, that "changes...the way people use the Web and think about human interaction on the Web" (Laudon, 2009, p. 210). Social media, as an e-commerce tool, establishes two-way communication between a business and its customers. "Interactivity allows an online merchant to engage a consumer in ways similar to a face-to-face experience but on a massive, global scale" (Laudon, 2009, p. 411). The customer, through interactive social media, develops an intimate relationship with the business or the product.

Once a business establishes these relationships and current customers have the business's fan page attached to their personal profiles, other customers see it, and their friends and other contacts will see it as well. This phenomenon of obtaining business through social networking is called "word-by-mouse" rather then word-of-mouth advertising. D. Scott, author of Viral Marketing Success explains “Word-of-mouse is the single most empowering tool available to marketers today” (Scott 2008, p. 8). He provides an example of how the process worked for the opening of the new Harry Potter theme park for Universal Orlando. C. Gordon, the Vice President of New Media and Marketing Partnerships, did not broadcast the event in a traditional manner through television or print. "Gordon and her counterpart at Warner Bros. chose to launch The Wizarding World of Harry Potter by first telling the exciting news to a very small group of rabid fan...These seven [fans] were invited to participate in a top-secret Webcast held at midnight on May 31, 2007." (Scott, 2008, p. 6 & 7). By relaying the announcement through seven die-hard fans, then family and friends, previous customers and bloggers, Gordon reached an audience 350 million through social media. Powell describes how word of mouse benefits Rex James on MySpace, "You can get new contacts without spending any effort, people will find you if you are participating in the same circles, and with a little bit of effort you can build your friend lists greatly in a short time" (Appendix D).

A business risks spending money on ineffective advertising and losing customers by not utilizing social media as a e-commerce technology. Social media is free and widely utilized. Customers want the connectivity and interaction that social networking provides. If a business ignores the evolution of the interactive marketplace, customers may move on to its competitor.

The initial intent of this study was to find ways social media could help small businesses compete with larger businesses. As the research progressed, the project team realized small businesses do not typically want to compete with larger businesses, but social media gives them key advantages in their target markets. Some of the businesses interviewed had already found appropriate social media platforms, experiencing success in reaching their intended customers. For businesses not connecting with their target audiences to the degree desired, the recommendations resulting from the project team's research may provide social media solutions not previously explored. Regardless of the solution selection, small businesses must be flexible, as new technology and online platforms change rapidly. A savvy business owner understands that the social networking mediums are ever-evolving. According to d. boyd, "Online communities are more like nation-states than technological tools. There is a master behind the architecture, a master who controls the walls of the system and can wage war on her/his people at any point. People know this. They have to trust that the creators have their best intentions in mind. They invest a lot of time and energy into creating an identity in the system - they want to believe that it is worth it" (boyd, 2006). If a social media site fails to meet the changing expectations of its users, people will move on to another medium that serves their needs. For the small business, depending on social media to obtain and retain customers, it is important to watch the interaction between the creators of the media sites and the users. A small business should not count on any one platform to carry its marketing message because social media sites will come and go. Social media’s advertising benefits small businesses through low or no-cost marketing, but it should still only be part of what makes up a larger marketing plan. Through the project team's research, the study concludes that the best business practice is to find multiple ways to connect to customers and always deliver on the company's promise. 
 * Conclusion**

Bibliography

Laudon, K. & Laudon, J. (2009). //Management Information Systems: Managing the Digital// //Firm//. San Francisco: Pearson Custom Publishing.

Brief History of Social Media- // by //BRETT BORDERS // on //JUNE 2, 2009 Viewed sept. 30. [] Social Networking Sites: Definition, History, and Scholarship By danah m. boyd & Nicole B. Ellison. Viewed Sept. 30 [] The Harvard Crimson Online By Alan J. Tabak Crimson Staff Writer, Feb. 09, 2004 viewed October 3, 2009. [] Stowe Boyd, of Socialmedia.biz Published April 7, 2009 viewed Sept. 30 ( [] )

Random History “A Place for friends” A History of MySpace Posted August 14, 2008 viewed October 3, 2009. [] MySpace Fact Sheet viewed October 3, 2009. []

 Twitter, a Brief History, //Written by Twitter with Sarah Milstein // viewed October 4, 2009 []

LinkedIN [] viewed October 4, 2009

Facebook [] viewed October 4, 2009

Siciliano, R. July 28, 2009, "Social Media Privacy and Personal Security Issues." The Huffington Post. Viewed 10/11/2009 http://www.huffingtonpost.com/robert-siciliano/social-media-privacy-and_b_245857.html

boyd, d. March 21, 2006 blog, Friendster lost steam. Is MySpace just a fad? Viewed 10/11/2009 http://www.danah.org/papers/FriendsterMySpaceEssay.html

Business Interviews, posted in Appendix

Appendix A Name of proprietor _Angie Gooding Name of business _Inspire Fitness

1. Please describe your product or service. How long have you been in business? What has been the rate of your customer growth from the time you started the business until now?

I am a personal trainer and have been in business for 1.5 years. My customer growth has been stable, but has grown quickly. I started with just close friends and distant family members and word of mouth has traveled quickly. I also made great connections early: Everett School District, Sound Health Solutions, etc. I got these connections by cold calling employees in the wellness/health depts..

2. Who are your major competitors?

I have few competitors. I compete with local gyms in the area (kind of) and there are a few other trainers like myself, but the ones I know of live at least 10 miles from me. For personal training, that doesn’t constitute as a competitor, as most clients are looking for a convenient location.

3. What type of advertising do you currently do?

Anything that is free. I use Facebook, word of mouth, and I write a column for our local paper. I have handed out fliers at schools, and I have had a booth at a local health fair. I’m also a “contestant” for Best of Western Washington, personal trainers, and even if I don’t win, it’s great publicity.

4. In your opinion, has your advertising been effective? Why or why not?

Yes, it’s been effective, but I also credit my clients for “talking me up”. Word of mouth has been my best form of advertising.

5. What social media outlets do you currently use (i.e. Facebook, MySpace, Flickr, YouTube, blogging, etc.)? Facebook.

6. What made you choose these social media outlets?

I chose a social media outlet because it’s free, and provides quick access to people who I know and trust. Because I have a gym studio in my house, I am very careful with whom I “hire” as clients. Therefore, I would much rather market to those who I know, in hopes they know someone who needs a personal trainer.

7. Describe how social media has either helped or hurt your business.

It’s provided a medium in which to communicate about my business and specials offered. It’s also a great way of communicating about aspect of my business…I’ve offered free “tips”, “training techniques” and simple “nutritional advice” to keep people interested in what I have to offer. Most importantly, though, social media works because of those I can reach THROUGH friends.

8. Do you plan to expand your use of social media to promote your business? If yes, how so and why? If not, why?

I have no plans to develop more at this point. Again, my absolute best form of advertising is by word of mouth.

9. Is there other types of advertising that you plan to do, other than social media? If so, what types? Why did you select these mediums of advertising?

At this point I’m content, but we’ll see what the future brings!

10. Describe where you see you business in the next year. In the next five years?

Next year: doing the same. I have about 20-30 appointments per week and am happy with that number. In five years I’d love to have a larger facility with trainers working for me.

Appendix B

Name of proprietor_Luan Nguyen

Name of business _VitekUSA__

1. Please describe your product or service. How long have you been in business? What has been the rate of your customer growth from the time you started the business until now?

We specialize in high quality Vietnamese Karaoke systems. Our parent company is the biggest manufacturer of electronics in Vietnam. The distribution into United States just started in 2009.

2. Who are your major competitors?

Our major competitor is a low end, low quality, low pricing company called Arirang. People buy this brand because it is cheap, therefore they have brand recognition.

3. What type of advertising do you currently do?

Newspaper, adwords, some facebook.

4. In your opinion, has your advertising been effective? Why or why not?

Advertising have been effective, it lets me reach customers all over USA.

5. What social media outlets do you currently use (i.e. Facebook, MySpace, Flickr, YouTube, blogging, etc.)?

Strictly facebook.

6. What made you choose these social media outlets?

There are just too many ads on myspace that people don’t pay attention to any type of advertisement. I believe people are programmed to filter out any type of ads on MySpace.

7. Describe how social media has either helped or hurt your business.

Help, multi level networking, the best business model.

8. Do you plan to expand your use of social media to promote your business? If yes, how so and why? If not, why?

My long term advertising strategy is to push more advertisement on forums and blogs that has to do with karaoke, less of social media.

9. Is there other types of advertising that you plan to do, other than social media? If so, what types? Why did you select these mediums of advertising?

See Question 8

10. Describe where you see you business in the next year. In the next five years?

Hopefully grow into other areas of electronics such as LCD TV. Appendix C

Name of proprietor_RUSSELL MICKLER_

Name of business _MICKLER & ASSOCIATES, INC._

1. Please describe your product or service. How long have you been in business? Mickler & Associates, Inc. is an S-Corp filed in Washington State in 2005. Cumulatively, if you were to look at my range of consulting services from high school, this company has existed for over 25 years; I've offered consulting services throughout my adult life as a sole proprietor under my own name. We offer technology solutions to small and mid-range businesses: network management, telecommunications, hosting, database development and programming, and strategic consulting. I like to consider what we do “the poor-man's CIO” - we bring expertise and advice that'd be found in much larger organizations to smaller ones, so they can use technology better. 2. What has been the rate of your customer growth from the time you started the business until now? I'll start from 2004 – I acquire about 7-10 additional customers a year (roughly a 15-20% growth rate) and that's been fairly consistent. Growth rate is tricky for a company my side: too much growth and I'd have to hire a staff, and that's not in my business plan; too little growth and I can't keep up with attrition and my competitors. Generally, 20-percent of my customer base are cornerstone assets that I spend my most time with. The other eighty-percent are potentially new cornerstones, or, for funzies (grin). 3. Who are your major competitors? Anyone who'd bill themselves as a computer technician or a technology solutions provider. That's a wide range of folks in the Clark County area. I niche myself pretty tight in small to mid-range businesses, though, so I don't take on residential headaches. I was ranked like number 18 last year in Clark County based off of revenues according to the Vancouver Business Journal; they said I made the top 25 again this year – it gets released in October. Not sure where I fall yet. Mickler & Associates, Inc. is a vehicle for me to shape a lifestyle I want – I really don't look at anyone as a “competitor” per se and I'm not out to acquire more market share, go IPO, and rule a universe of technology providers. My biggest competitor is myself and keeping up with my own ideas (grin). 4. What type of advertising do you currently do? Almost exclusively web and word-of-mouth. I'm listed in the Clark County Yellowpages which pretty much reinforces web-based advertising. The random calls that I get and end up referring elsewhere are residential and PC repair/sales. I don't do that kind of stuff. I'm a member of the local chamber, and I attend chamber events from time to time to shake hands and get to know people. I also use Guru.com and I have an account with them; that channel has produced in excess of 10x its cost in revenue and has been very effective for me. 5. In your opinion, has your advertising been effective? Why or why not? Yes because, again, I'm not out to grow my company too quickly. I don't want employees and I deal exclusively with a team of contractors. If I advertised, I'd get a slew of “the wrong people”. I like a low-key, managed growth rate – not a ludicrously silly, phenomenal growth rate that most investors and business analysts like to see. Then again, I'm not out to impress them: I'm out to create a useful tax shelter and a means of supporting myself. So far, not bad: it's weathered the “worst recession since the Great Depression” really well... 6. What social media outlets do you currently use (i.e. Facebook, MySpace, Flickr, YouTube, blogging, etc.)? Twitter. I also blog on my site (it's a Wordpress site). I also use LinkedIn. 7. What made you choose these social media outlets? I chose Twitter because of it's phenom-quality and its growth – it's fairly popular and has the greatest “sticking power” out of all of them, I think. I chose LinkedIn because it's a more professional site than Facebook, and conveys the professional information in a way that I can control. I've been blogging, well, forever, but it wasn't until this year that I pulled the traffic into my own site instead of Blogger.com/Google.

8. Describe how social media has either helped or hurt your business.

9. Do you plan to expand your use of social media to promote your business? If yes, how so and why? If not, why? It's very useful. Content pushes more search engine results my way, making me look like a good authority, and that improves people finding me on the web. More content, more Tweets, more blog entries, more links, improves my visibility. I can also channel students taking courses from me to my online content. I often use Twitter to point people to my blog and to other useful pieces of interests on the Internet. I also had a situation once where I saved somebody's data on their hard drive from a tweet they made (grin)... but I didn't make any money off of it. In another instance, a web admin in Texas needed help with a problem and emailed me from LinkedIn. I solved his issues and made a little money. Guru.com, though, by far, has been very successful. 10. Is there other types of advertising that you plan to do, other than social media? If so, what types? Why did you select these mediums of advertising?] I'd like to stay where I am. I'm not convinced in Facebook's strategy so I'm not planning to go there. Twitter has staying power and I'm likely to be there for a while. LinkedIn makes sense to me. Guru I'll continue to use. I'll also continue to make content for my own website and blog, bringing people back to me. I'll also continue with the limited yellow pages stuff (I don't publish in the book, just online, which submits me to nine separate online directories – it's worth it's cost). 11. Describe where you see you business in the next year. In the next five years? Hmm. I guess I want to see fifty percent of my revenue “fly-by-wire” as residual income, recurring service fees, and intellectual property sales; it's about 25-percent right now. In five years, maybe I'll be in a position to sell it (grin) but doubtful: I'm not trying to get rich quick and I like to work for myself. If anything it'll be a revenue generator where I can devote less time to it. Appendix D

Name of proprietor: David Powell

Name of business: Rex James

1. Please describe your product or service. How long have you been in business? What has been the rate of your customer growth from the time you started the business until now? Rex James – entertainment and performance, live performance and entertainment. Started in 1996 – we’re limited by population, so hard to gauge following. Seen some growth, surrounding areas. Expanded to Post Falls, Sandpoint. Went from 0 to 150 in the course of 2 years. People being aware, hard core followers. Have branched out to Spokane now. Doing CD sales – units sold, how long it takes. However many people show up to show. Usually sold, 10% of CDs to people at show. Now 1500 of people following – worldwide followers. England, Canadians -1000% growth.

2. Who are your major competitors?

Competing for gigs with venue holders. Not a lot of folk singers around. But end up working with people who do the same thing. Guitar building industry – selling harp 3. What type of advertising do you currently do?

We’re doing FB, hotmail, MS, newsletter, website, sonic bids – for bands, help you get bids, help you update your calendar. Artist Direct just recently – currently in BETA – currently free, they have a lot of cool tools to format calendar and they update FB and MS for you – one stop shop. Advertise at venues, we’ve paid for radio ads $12 per air time, so pay a $100 for air play – advertising for show at Panida – pay all this money peak hours per off ours. Now local station have local artist spotlight which is free – KPND – you send your demo, and they’ll have you on for an hour on a Sunday afternoon. That was a word of mouth kind of thing.

4 In your opinion, has your advertising been effective? Why or why not?

Yes – helped gain following. DJs – get to know them, they get you on radio for free. Nice being in art field, people want to cut you a break, get on radio on much as can, been on three different news shows on TV, we were on there because of the gigs we were in – morning news, little interview, if you have a good story, it helps when on the news, radio or flyers go out – peaks on the website. ~Flyers, email, text messaging, word of mouth, facebook, myspace, local radio. Our social media advertising has gained us more following of people at our shows, some events would not have had any people if it was not for our band members posting our gigs on Facebook. ~We have increased our local awareness and fan base at least a thousand times over from where we started by a combination of our advertising outlets and the gigs we play in the local and regional area. ~We now have a worldwide awareness of our music by using the internet social media outlets to connect people and directly advertise our music to them.

5. What social media outlets do you currently use (i.e. Facebook, MySpace, Flickr, YouTube, blogging, etc.)? ~

Facebook, MySpace, Youtube, Sonicbids.com, ArtistData.com, Harpguitars.net, Hotmail.com, Craigslist.org

6 . What made you choose these social media outlets? ~Little to no cost to use ~Most of the outlets are custom tailored for music and arts like mySpace which lets you host your music on your profile page. ~ You can integrate html code from one to the other so some are updated simultaneously ~You can gain access to people directly on their phones, via email, facebook or RSS blog feeds.

7. Describe how social media has either helped or hurt your business. ~Social media is critical for any business in todays social tech savvy generation because it gets information to people directly where they are looking like in their email inbox, or their facebook wall instead of the newspaper or radio where there is a chance they might see or hear your ad; so there is less wasted publicity or ad airtime. ~ You can direct the marketing of your product to the correct demographic easier using social media because people will give you their profile information, likes, dislikes, age, location, interests, etc. ~ You can get new contacts without spending any effort, people will find you if you are participating in the same circles, and with a little bit of effort you can build your friend lists greatly in a short time. ~Some of the media outlets have a lot of 3rd party ads built into the site, so your profile will have ads for other artists or products. ~Sonicbids has a good calendar to keep track of your gigs/showcases, and you can embed the code into a website, but you cannot embed it into Myspace, so you have to update 2 different calendars, the Artistdata.com site will automatically update myspace and post your gigs on facebook automatically, but that is still 2 different places to update.

8. Do you plan to expand your use of social media to promote your business? If yes, how so and why? If not, why?

~ Create a Facebok “Fan” site for the band “Rex James” combine all the members’ friend list into one profile. ~ Post pictures of people that come to your shows on the fan site to drive more traffic to your profile. ~Collect Email addresses from people at gigs and build our contact lists to send people weekly emails of our upcoming performances or new additions to our website and online profiles.

9. Is there other types of advertising that you plan to do, other than social media? If so, what types? Why did you select these mediums of advertising? ~A big one is ITunes, although it is not as much of a marketing outlet, now days anyone can get their music in a category being sold on iTunes, roughly $.99 per song. This is another way create more internet awareness and also generate income. ~SEO: The more places your music and “Keywords” are on the internet, the better chance people will find you on the internet and search engines can correctly categorize your website with the keywords when people do searches, this is all part of a technique that large companies spend millions on each year to increase their search engine ratings called SEO, or “search engine optimization.” ~Radio advertising is one more outlet we will choose to use in the future. Sometimes we can get on the radio for free as a “Local” spotlight or special artist promotion at certain times during the week. But we may also do some paid radio spot ads or underwriting (which may be a little cheaper) to promote the larger concerts, which will run somewhere around $12 – 15 for each 15 second airplay. ~Local newspaper and entertainment periodical are another resource we will use, and can sometimes get featured for no cost, if our story is good enough. At the beginning of this year in fact, the local Coeur d’ Alene Press did a write up in their entertainment section because we build our own guitars and are doing analog tape recordings of our music and performing in the area. This helped our local awareness and look more professional to venues we are trying to booking our act in. ~USPS, we are going to mail our music out to other promotions companies and music labels to see if we can get another party interested in helping us book more gigs and promote our CD. We can find lists of these companies on Sonicbids and internet searches, but also in a book I have called the “2005 songwriters marketplace.”

10. Describe where you see you business in the next year. In the next five years? ~We plan to do 2 things, we have also started a guitar manufacturing company called “Tonedevil Guitars” that designed a harp guitar that is going to be affordable for anyone that wants one (in the $3000 - $4000 range), and will not have to wait long to get it. Currently your only options for a harp guitar is the “el cheapo” Mexican model that is still $2200 and a piece of junk, or have a custom builder make you one, which takes at least a year and will cost $6000 or more. In the next 1 year we plan to be building our harp guitars for patrons across the world. For the convention we are attending next month we will have 1 new model finished and ready to sell which we hope will spark new orders for the instruments. This we plan on doing for supplemental income for the next year or longer. ~In the same year, but actually sooner, we will finish our new CD and press 1000 copies to sell at gigs and upload the songs to iTunes and other internet retailers. ~We are going to set up more gigs in our local and regional area for spring and summer 2010 here in the northwest and will include Seattle, Portland, Spokane and their surrounding areas, and then travel to and perform those gigs. ~In the next 5 years, hopefully we won’t be building the guitars ourselves anymore, we will either have hired people to do that for us and are working out of a larger facility and we can be just the company owners and/or the quality control, or we will have sold our patented design model and brand name to a larger manufacturer and build the harp guitar for us. ~In the next 5 years of our music careers I hope to be playing in theaters or larger concert halls with a couple more CDs under the belt. I plan to build the independent music business I have started to the point where I have others helping me with the advertising and booking, or I build it to the point where a larger music label is becomes interested and offers their services. Keeping things independent as opposed to “signing” with another company may be an advantage in that we make more money per disk that sells and we are in control of the advertising budgets. On the other hand we might sell more CDs, get bigger publicity, and play larger concerts and festivals with another label helping. Either option is a goal to work for in the next 5 years.