Leveraging Social Network to mitigate stock market’s herd psychology

 

Social media is the biggest buzz word which has emerged from the second half of the first decade of the 21st century.

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Stock Market

It has made its presence felt in our day to day activity more than any other single product which has found acceptance in the society. It has re defined the way we communicate, do business, and pass our leisure time among many other things. But still, many believe that social media can help us in more ways then we can imagine, and what we are witnessing is just the tip of the ice berg among the many benefits which social media has to offer us.

In this context, I always felt that social media can in fact help us tackle the volatility of the most unpredictable yet the market with highest number of transactions: The Stock Market.

Stock Market is been in existence for more then two and a half centuries. It has created many millionaires from ordinary men and has also made many millionaires into a pauper. Yes there are many technical explanations as to why stock market go

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Herd psychology

es up and down but at root; it’s all about herd psychology. When stocks are going up even the experienced investor succumbs to what former chairman of American Federal Reserve Allan Greenspan called: the irrational exuberance. And when wind changes direction even slightly the mood quickly changes from euphoria to gloom. This irrational exuberance was first created by Missisippi Bubble which destroyed the French economy in 1719 for over a century and also led to infamous French Revolution. It was the first stock market crash in the history of mankind. This was followed by 1873 depression of railroads, the Great Depression of 1929 and more recently the property bubble of 2008 and the Euro Crisis of 2012.

Stock market for almost 3 centuries has witnessed these massive tectonic ups and downs not because of the actual performance of the companies in which the investors were investing. But what the investors thought how the companies are performing. And infamous companies like Enron and back home Satyam made its investor believed that they are performing well and this help augment their share price but once investor comes to know about the reality its share price came crashing down. These are few examples of companies using these herd psychology to its advantage.

Unfortunately, some honest performing companies are affected adversely by this herd psychology as well. There was a time when even the news of Warren Baffet investing in some companies augments its share price by up to 10%. When ever people see some big investor has sold the stocks of a particular company thousands of small investors follow suit without knowing as to why he sold the shares resulting in a massive decline in share price. May be he is selling those shares in order to buy it again at half its price.

What if there is group for all the investors of a particular company in say Linkedin. If you are a shareholder in a company you would be the member of that group. Any investor planning to sell his/her shares needs to inform the other group members its reason. There could be a discussion thread with other investors. The investor will know whether the company is actually performing badly or he/ she is withdrawing his/her investment for some other reason. This will result in investor making more informed decision and will reduce the influence of so called herd psychology to a considerable affect.

This sharing of knowledge can be done in the following ways:

  • All the listed companies should have a group for its investor in Linkedin
  • A person who wants to invest in any company can becomes its member
  • He can see the discussion of other investors and from there he can identify as to why these buying and selling is happening
  • When he wants to sell the shares he can post his reason if it is personal it is ok, but if he has made a business decision the other investors can join in and comment their views
  • There would be some who purposely wants the share price to go down and might post some negative comments
  • This can be done by relying on wisdom of crowd because the current investors would never want their share price to go down so they would be aggressively defending it.

 The only de merit I can see from this is the volume will go down and the brokers would be the worst hit of them all.

I finally have to say that the volatility of stock market can be reduced only if we reduced the influence of herd psychology this can be reduced if the investors know why the other investor knows why he/ she sold his/her shares. This information needs to be shared at real time and social media with its ubiquitous presence is perhaps the only medium by which the information can be shared to such a large and spread out group of people.

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Happy Investing

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How women Entrepreneurs can use social media to leverage their Business?

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How Women can be successful in using Social Media?

Use of social media to leverage businesses has become a new trend among women Entrepreneurs these days. In 2007 less than 4% of women owned businesses used social media for business purposes. Fast forward the picture has dramatically changed. Half of the women owned businesses were using a range of social platforms such as Facebook, LinkedIn, Twitter etc. to market and grow their businesses in 2012.What could be the reasons for this growing interest in social media by our female entrepreneurs? Let’s find some of those reasons.

1. Women appreciate relationships: Culturally, in most of the countries around the world women are more prone to consider relations as a factor for business and personal decisions. Social media emphasizes the relationship building which can be used for brand building and reputation management.

2. Social media involves in Low cost marketing: Women not only can manage the finances of the household but as well as the finances of a business. Cost of marketing product or brand is always high if focus is on traditional ways of marketing .So, because of money constraint women always search for a low cost option to market their businesses. Social media just fits into this requirement.

Lansons how people use social media by gender female

How Women Use Social Media?

3. Social media is all about sharing thoughts and women are always excited about it: Women are world known for their chatting habits. They just can’t live without sharing their thoughts. They love to share what they know. Social media provides them a perfect platform where many like-minded individuals share their thoughts and help each other.

4. Women don’t appreciate competition much: By nature, women are kind and soft. They work silently without creating much hype about their work. Social networking sites are the perfect platform for such individuals. Here, a business woman develops her online personality by her regular activities on social networking sites without creating much buzz among her competitors.

5. Inbuilt networking capability among women: It is easier for women to join a conversation and adding new members into their network. Social media just does the same. This is the reason why Facebook, Twitter and LinkedIn are so famous among women.

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Top 5 Social Media Used by Women-Owned Business

There must be many other reasons why women entrepreneurs are so drawn to the social networking sites.

There may be many suggestions how to develop an online presence by Business Women, some of them are stated below:

  • Create website: It is the most important step towards the online marketing of any business. First of all, people want to know you. A website introduces you to your customers. Once the customer knows you and likes you he will trust you and buy from you. So, creating a website is the most basic step.

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    Women And Social Media

  • Constant activities on blogs, twitter, Facebook, LinkedIn, open groups, chat boxes etc. Women entrepreneurs are mainly drawn towards the businesses such as restaurants, beauty salons, spa, clothing, shoes, jewellery stores etc. These types of local businesses get a great visibility if their business page is constantly involved in online activities. Owners of the businesses can invite group discussions in open groups on social media.They can write blogs about their business and stuff related to that.
  • Plans to increase online followers: Women entrepreneurs easily get their followers because they set an example for other women as well. So if planned properly the women entrepreneurs can easily increase their online fan followings. As she gains more followers and a larger online presence her business, will show up in more searches and continue to build customer base.

Social Media: The Golden Ticket for a Rising DJ

Knowledge is power, and the more you know, the farther you’ll go. Over the time and with the evolution of human race, we have witnessed some ground-shaking growth in the field of technology. The music played in the era of Retro and Disco as we know of it, is no more what people feel like moving their feet to. The time has moved on and so has the human expectations from music.

How can DJs use Social Media?

How can DJs use Social Media?

But is that all…???

No, there is one thing that has never changed. One thing that has always remained constant. It is the need of a DJ to be known for his talent. A DJ lives a life of music, which he loves and its the DJ who has the talent of bringing the joy of this love and music to a lot of people. A DJ is blessed with the talent of giving memories to people while doing what he loves. And apart from playing live at venues or events, or loungers or night clubs, the best way for a DJ to rise high is through Social Media. This is the place where maximum talent is discovered.

Are you looking for your Big Break? Do you think you’ve got what it needs to be the Superstar DJ? Well, the best chance you have is to make the most of what social media has to offer. I am gonna share with you some really interesting facts about how DJ-ING could be combined with social media.

Lets start with the basics. What are the different roles of a DJ? Firstly, a DJ plays live music for a large crowd with complete sense of the expectations of the crowd and with mixing some great songs LIVE!. Secondly, a DJ is the one who creates a newer and better version of any song and it is therefore a solo remix. Both of them are equally challenging in their own ways. While playing LIVE! involves great presence of mind the power to understand the audience, the solo remix demands for a very high knowledge of synchronization of music, songs and effects. A perfect DJ always knows his audience. But he also knows how to grow the audience. Social Media Avenues today provide the exact platform needed for a rising DJ. While playing LIVE! introduces you to a lot of people, Social Media can help you reach to the extremes of the world by showing them your talent of producing solo remixes, or sometimes even a Non-Stop Mix. For e.g: Post a song produced by you on YouTube by creating your own channel. Share your channel link on Facebook and Tweet it. In no time and with regular uploads of new music, the world will have started to know who you are. That is the right break one Rising DJ is looking for.

DJ Puns, our Guest Blogger

DJ Puns, our Guest Blogger

A rising DJ often has a misconception that DJing and producing music is very expensive.

NO!!!! It is not a mandate to own super fancy DJ Consoles. Apparently you don’t even need speakers to be the best DJ.

Haha..!! There is a variety of Music Mixing and Dj Software that are available for one’s laptop. Just install them, and start tweaking some sound…!!

As a Rising DJ you will face a lot of criticism. But always stay nice and be open to criticism. Stay eager to learn. Focus on your dream! Share your talent with the world. Post it and upload it, and let the people vote.

Remember: A simple Facebook Post + The Power of Music + The Power of Social Media = BOOOOM…!!!

Enjoy Mixing and keep posting…!!

Don’t encourage Music Piracy.

You

can Listen to the Remixes of DJ Puns in http://www.youtube.com/djpuns

All the DJs out there...use the Social Media platform to Exhibit your Talent.

All the DJs out there…use the Social Media platform to Exhibit your Talent.

Content Marketing: The new Inbound Marketing Strategy

These days’ traditional marketing strategies have saturated consumer’s mind. Smart marketers are looking for a better and effective way.

Let’s see with an example, how can someone connect with the customers not by ways of traditional marketing rather by trying something really nutty.content_marketing_01

Southwest Airlines took a chance and entered blog-o-sphere by launching a humor-centric blog “Nuts About Southwest”. Hilarious content and airline peanuts scattered across the websites helped them to reach a huge audience who could resonate and connect with the brand. Interesting articles on travel, sustainability and corporate outreach surely won the hearts of many.

What have they done? This example explains the concept of ‘content marketing’.

Content marketing is the technique of marketing by which valuable content is created to attract, acquire and engage a clearly defined and understood target audience – with the objective of driving profitable customer action.

It is not about direct selling but rather the art of communicating with your customers and prospects.

According to some statistics, marketers, on average, spend over a quarter of their marketing budget on content marketing.

When the question arises how we can easily do content marketing, the answer is, there is no better way other than social media.

Content marketing and social media are going hand in hand. Few ways how we can utilize this platform for content marketing are as follows:

  • When you are an expert in your field, it means there are lots of things that your clients want to know from you. Talk about these topics in your blog. They will respond.
  • Facebook Insights provide an in-depth look at every post a business makes on Facebook and is a great tool to use when building your content marketing. Using this, focus on contents which are of interest to your fans.
  • Make sure your posts are giving readers an opportunity to continue engaging with you. For example, you can provide a registration link to know about the topic more.
  • On twitter, tell a story through your tweets.
  • To offer insights in real time, live tweet coverage of events that are significant to your audience. This gives your brand the eyes and ears for tContent-marketing-cyclehose who couldn’t make it to the event.
  • Just because you don’t always have a professional videographer at your disposal doesn’t mean you can’t make great videos. Showcase professional videos alongside homegrown ones to help humanize your brand.
  • Try to indulge your blog readers into a storytelling about the brand. This would motivate them. An excellent example to showcase this is what was done by Red Bull. Extreme-sports related content and a diverse group of contributors made this blog a playground for their target audience — thrill-seekers and extreme sports junkies. Their blog indeed met the 4 I’s of storytelling- immersion, interactivity, integration and impact.
  • On LinkedIn, bringing in a steady stream of recommendations from clients or customers provides a renewable source of user-generated content
  • Google+ gives you the ability to create an eye-catching page experience. Take advantage of it by posting more than just links and text. Mix in a variety of photos, videos, and infographics for a healthy looking page.
  • If a good portion of your target audience lies in the community geared by Pinterest, utilize it well. Instead of a lone product image or a posed staff picture, show your product or team in action with personality. Action shots help your audience imagine themselves as a customer or client.

These few tips will surely make your presence on social media interesting; help you to get better search rankings, larger audiences and ultimately, more impressive results.

Have you strategized your content marketing for your business on social media? Share with us by posting your comments below.

Ready Steady Po…!!! A Social Media ‘PO

How Social Media helped Chennai Express to become the Highest Indian Grosser of all time

The success of the Shah Rukh Khan – Deepika Padukone starrer Chennai Express has elevated the business of Bollywood to the next level.

chennai-express_1358413543Strategic planning, aggressive promotion, huge marketing and numerous pre-screening of the Rohit Shetty ISSTYLE film helped it to create new record at the box office. Chennai Express scaled the 100-crore mark with just three days collection. Indian Railways being in turmoil expects a lot from their Chennai Express and other expresses. The Baadshah of Bollywood has really made it large but without proper marketing and promotions the numbers achieved would have been the same as the real Chennai Express (Indian Railway) revenue generated in 3 days.

Social Media channels were used to create inquisitiveness among the audience for the movie. Apart from other promotions on Facebook and Youtube, UTV Motion pictures created special hashtag #ChennaiExpressArrives for the movie to give the opportunity to the audience to watch the trailer of the film earlier than scheduled. Chennai Express has been trending on twitter since it released on the day of Eid almost every other day.

Let us board the Chennai Express Social Media campaign to get insights as to how the movie (Not the train) kept to its track.

Facebook:

It was for the first time that an Actor hosted a facebook Live Chat to connect to fans in India and the world on the facebook Page ’iamsrk’. Shah Rukh Khan along with Rohit Shetty invited millions of fans from India and globally to get connected to them and to Chennai Express. Facebook boasts of more than 4.75 billion pieces of content being shared on the website. The hashtag has been an instant success with the top brands on Facebook. About 56% of the Interbrand’s Top 100 brands made more than 250 posts with at least one hashtag in the first week of the launch of Facebook Hashtags.

Shahrukh Khan, who has been hyperactive in promoting the film, was no less excited about the conversation. “I look forward to connecting and chatting with all my fans on the Facebook Live Chat. I’m really excited about sharing my experiences while shooting Chennai Express and would love to answer questions about the movie and other things people may wish to ask. It’s going to be a lot of fun on Facebook, so Ready, Steady, Po!”.  A master stroke indeed.

Twitter:

With the fast moving express on twitter it is likely that anyone can miss anything in the conversation, It wchennai Expressas more of a ‘DDLJ’ climax where each tweets were given leverage to board the express. Innovate and let everybody be in the loop was an ideal strategy by the team. King Khan made an intelligent move by sending Tweets via SMS, anyone with a mobile phone in India can follow @imsrk. Though Twitter was not utilized to its limits but yet SRK with his elegant way of expressions tweeted almost every day to keep his followers run for the Express before its departure.  With Shah Rukh and Deepika tweeting their experiences on the sets of Chennai Express, the movie made sure that their fans are updated around ‘behind the scenes’ happening of the movie.

According to the latest stats by Keyhole Tool, Lungi Dance on Twitter has already generated more than 10 million impressions with more than 1,000 users contributing. The link shared on the social media channels have been clicked more than 7,200 times with Facebook and Twitter being the most popular mediums of discovery of the video for the fans.

Instagram:

We didn’t get to see official SRK’s Instagram. But Rohit Shetty seems to be highly active on it. Check out his photos – http://statigr.am/tag/rohitshetty

Game Development/App Development:chennai-express-mp3-App

With increasing number of Smartphone, cyber gaming has been enjoyed by everybody from a toddler to teenager to senior citizen. The promoters of the movie launched a game based on the movie Chennai Express. This strategic move was taken to increase involvement with the movie through cyber game users as it covers a large number of audiences with the introduction of Smartphone. The game is available on both Android as well as Java based mobile phones.

Other Promotional Activities:

Few other promotional activities were the visit of the Super Star and his team at the different TV channels. Shah Rukh has given interviews and talked about the movie while appearing on several show –

  • Comedy Nights with Kapil (he appeared there twice),
  • Taarak Mehta Ka Ooltah Chashmah,
  • Jhalak Dikhhla Jaa,
  • Indian Idol,
  • Madhubala and
  • Diya aur Baati Hum.

All the above promotional activities gave extra mile to the movie. Social Media and Social Media Analytics is becoming a vital part of Bollywood. With glamour and charisma of the Bollywood, Stars and their upcoming projects connect with millions of fans through these mediums and create the brand even before the project is launched.

Ready, Steady and Po…!!!

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Social Media Marketing: Outsourcing- The Need

This blog begins with a question (rather two scenarios) to tingle your inquisitive minds. In scenario ONE you have regular cough/cold and in scenario TWO you have a chronic heart problem. In both these scenarios, you have two options:

1. Consult a general physician

2. Consult a cardiologist.

It could be safely assumed that after analyzing the situation and considering the impact, one would opt for a general physician in case of cold and a cardiologist in case of chronic heart problem.

Now you must be thinking that how this analogy is even minutely related to the topic of this article. This analogy however clearly shows that there lies a strong correlation of severity/impact of an activity to the care/importance given to deal with it.

Through the previous articles and by pure awareness of this world (virtual included) it is not beyond ones knowledge that the impact of virtual world in general and social media in particular is gargantuan in today’s world.

We can run from it as much as we like, we can even deny that we haven’t been infested (seemed the most apt word considering its impact) by it but truth be told, we can no longer do that. We have to acknowledge that it’s a part of our life that will impact us whether we want it or not.

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Social media presence /online marketing has proven to be the game-changer for many corporate-some have adapted seamlessly like a fish takes to water while some are still struggling to get a foothold.

Companies have adapted to outsourcing to gain competitive advantage and also for pure survival. Spending any time to explain the need/advantages of outsourcing would be exercise in futility as we all know about it.

Production- outsourced, advertisement-outsourced, house-keeping- outsourced, customer service- outsourced and the list is endless but when it comes to social media and virtual world still many companies(yes shockingly many) still would either avoid this medium else have started themselves and are continuing on a  trial and error based method rather than relying on the experts.

The general argument to counter the above is that we are aware of what we are doing and want a phased approach towards this new medium but it must be clearly understood that there is a difference between knowledge and wisdom. How long can a company afford to do something which is not its forte?

It’s not just about presence in the virtual world, it’s about constructive presence with the right follow up that would lead to fruitful results otherwise a company can very well fool itself with the fact that yes are there in this new medium just like everyone else.

Making a Facebook page, setting up a twitter handle with company name and not doing much about it won’t help.

Winners don’t do different things, they just do things differently”.

The virtual world presents limitless opportunities and now it’s up to you how much advantage can you take.

There are several doors with one key (virtual presence), a social media marketing firm can help you not only choose the right door but could also walk with you all the way through.

Think you got some more cool ideas?

Got any questions?

Do share your views/reviews/comments and ideas below. We’ll be happy to respond.