International Journal of Research in Social Sciences

The ncreasing popularity of Web 2.0 tools, such as blogs, wikis, and virtual worlds, is fundamentally changing how consumers use the Web. The basic core of Web 2.0, that users can generate and share their own content, often regarding company brands and products, provides both potential value and challenges to marketing practitioners. In the current context of crisis and major organizational transformation, companies are forced to rethink their mode of operation and business models. The main changes affecting the latter are amplified by the explosion of Web 2.0 and social media. This paper reviews the nature, effects and present state of affaires of the new generation of Internet applications known as Social Media or Web 2.0. It explores the aptitude and potential of these applications as influencers of customer behavior and marketing instruments. Based on research findings and field experiences the article identifies the main ways corporations can use the social media as strategic marketing instruments. The paper proposes a classification of the main Web 2.0 applications as strategic marketing instruments arguing that Web 2.0 applications can be engaged as effective and low cost tools that can substantially support marketing operations in the virtual and physical marketplace.