Social networking sites are attracting a lot of consumers on the Internet these days, which makes it imperative for retailers to have a position on social networks, according to Gartner, Inc. Although social networks have tended to be popular among the younger demographic groups, they are expanding into wider groups that matter to a broader base of retailers such as career-based social networks, shopping-based social networks, and employee groups.

"Until recently, retailers considered social networks relevant only for the youth market, meaning that many have largely ignored them," said Hung LeHong, research vice president at Gartner. "However, as social networks expand to embrace ever-wider demographic groups, retailers need to ensure that they have a position on them." LeHong said that these positions can range from creating their own social community to gather feedback, to creating a marketing presence on large social networks, or to simply observing how brands are discussed and perceived.

Gartner has enlisted some of the more relevant things retailers should know about social networks and what action to take. Firstly, a retailer can choose either a social site or a social platform or both depending on where the target market resides. However, analysts believe that retailers should be cautious with their investments on any one social network as this market has not yet settled and is witnessing shifting consumer preferences. Further, retailers should also view social networks as a lead-generation channel and understand how each of the major social networks will allow them to leverage their social graphs. In this entire process, retailers should be watch out for negative press that is virally spread through social networking and is difficult to capture.

Many social networking sites today facilitate creation of a platform that allows individuals and companies alike to build applications that are designed to run on the social network. Retailers can use this to their benefit as a tool to constructively engage consumers. In this process, retailers can access some of the consumer data available on social networking sites by building applications that require members to agree to share some of their data in exchange for using the application. With the social networking movement in vogue, retailers can thus, engage in a virtual marketing trip.