Psychology of Entrepreneurship

Running head: PSYCHOLOGY OF ENTREPRENEURSHIP
Psychology of Entrepreneurship
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PSYCHOLOGY OF ENTREPRENEURSHIP 2
Psychology of Entrepreneurship
Part 1
Web 2.0 and Social Media
The goal of any business organization is to maximize profits (Armstrong, 2019). A
great way to maximize profits is to ensure that revenues are increased while the expenses are
minimised. The internet and the social media are a great tool that modern entrepreneurs can
use to make sure that their businesses are profitable. There are numerous advantages that
businesses can accrue from web 2.0 and social media. These include cheaper and better
methods of advertising, easier methods of tracking progress and access to modern ways of
communicating with customers. Social media is overtaking the traditional media as the main
avenue of product promotion.
Marketing is an important aspect to every business. It is through marketing that a
business attracts and maintains customers. With web 2.0 and social media, businesses have a
great avenue for converting potential customers into actual buyers. Some avenues of
marketing made available by the internet are absolutely free. These include e-mail marketing.
Others are paid such as advertising on Facebook or YouTube. The paid adverts target specific
persons who are likely to be interested in the products that a business offers. Paid social
media advertising is not as costly as advertising through the traditional media. The traditional
media include newspapers and television. Businesses are investing billions of dollars in social
media marketing. This part is going to focus on the importance of web 2.0 and social media
in marketing. Specifically, the part is going to look at how web 2.0 and social media can be
used to engage existing customers, attract new customers, listen to employee and customer
feedback and respond to crises.

PSYCHOLOGY OF ENTREPRENEURSHIP 3
Engaging Existing Customers
Engaging existing customers is very important to a business. The customer is
important to any business since they determine the amount of sales. The more the customers,
the more the sales. Businesses should strive to ensure that their customers are satisfied. There
are several ways through which web 2.0 and social media marketing can be used to engage
existing customers. One of these is through congratulating the customer for purchasing.
When a customer makes a purchase from a business, it is important to make sure that they are
appreciated. This can be done through sending the customer an email congratulating them for
choosing to buy from the business. Where the business has developed an online app, and the
customer uses the app to order for goods, a thank you message could be sent to the customer
through the app. These are a few examples of how a business can appreciate a customer.
Another way through which the social media and 2.0n can be used to engage the
customers is through notifying them about new products. Let us take an example with a
business that sells clothes. When new clothes become available, they can notify their
customers of the same. To attract them further, they could issue personalised discount to the
customers. This would motivate the customer to buy the products. In the modern days, a great
number of people own a smartphone. In addition to this, internet connectivity has increased
immensely and access to the world wide web is increasingly becoming simpler. Due to this, it
is possible to engage most of the existing customers. Another way to engage them is to make
offers on products that the client might be interested in. Let us take an example with a hotel.
Such a business could engage existing customers through giving offers.
Attracting New Customers
With web 2.0 and the social media, businesses can venture in to online marketing.
There are several ways that businesses can attract new customers. One is through paid

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advertising (Griffin, Ebert, Starke, Dracopoulos and Lang, 2015). This could be done through
such sites as Facebook, Twitter and YouTube. In addition to paid advertising, a business
could attract new customers by simply being on the social media platforms such as Facebook.
Here is an example. If a business sells bicycles, it is likely that the business name will have
the word ‘bicycles’ as part of it. Therefore, a person in need of a bicycle may simply land to
their site by searching about bicycles on various search engines such as Google. With web
2.0, it is possible to manipulate location to the favour of a business. This could be used to
attract customers. Here is an example. Let us assume that a business that deals in car repair is
located in a certain town. The business can use search engine optimization to ensure that any
person who searches for a car repair shop while in or near the town can be directed to their
site. Once directed to the website, the customer can then locate a map to the car repair shop.
Social media sites use some analytics to determine the characteristics of people who
are using their site (Parks, 2017). The information collected through such analytics include
age and sex. These analytics could be used to attract new customers through paid social
media advertising (Sajid, 2016). Here is an example. Let us assume that a business deals with
modern clothes for young women. Such a business could benefit from social media analytics.
Their adverts could be directed to people who are more likely to be potential customers. For
instance, adverts could be directed to users who are less than 35 years of age and who are
female. This increases the chance that a business will attract new potential customers. It
would not make a lot of sense for a business that sells goods for young women to target all
members of the population. Social media analytics help in achieving appropriate targeting.
Listening to Employee and Customer Feedback
With web 2.0, it is possible for businesses to create and host websites that allow swift
interaction (Tuten and Solomon, 2017). The business should ensure that it provides option(s)