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Successful customer orientation
General aspect of marketing
Five Concepts of Marketing
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To create and maintain healthy levels of firm value, profitability and other factors essential in running a successful business, organisations like Facebook understand the significance of customers being central to all their marketing activities (Pride et al. 2012, p.4). This essay will analyse Facebook’s billion dollar purchase of the photo sharing app Instagram in 2012, in the context of the article ‘Facebook buys Instagram for $1 billion’. Further on, this paper will explore the theory of customer orientation as a marketing concept and evaluate how Facebook’s acquisition is an example of this notion. Zuckerberg (2012) states that as a result of the change in business, the Facebook brand with be expanded, while also becoming competitor orientated. Lastly, this paper will conclude by explaining the impact those factors like customer/competitor orientation and branding, have on the sustainability and corporate value of an organisation like Facebook.
The multi-billion dollar non-commercial business ‘Facebook’ is one of the biggest competitors within the social media market and is visited approximately by 400 million users monthly, (Carlson 2010). Quickly reaching Facebook’s level of popularity, Instagram’s user base is made up of 200 million members, with over 20 billion posts made within two years (Instagram blog 2014). This rapid level of success sparked interest from other businesses like Google (Constine et al. 2012), and concluded with Facebook’s successful purchase in 2012.
Facebook’s acquisition of Instagram, as exemplified in the article, is considered a good example of customer orientation. Customer orientation is defined as “the set of beliefs that puts the customer's interest first, while not excluding those of all ot...
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...and positively associating it with Instagram, Facebook heightens the chances of gaining an even larger customer base, effectively increasing profits and market share, resulting in a sustainable positive firm value. Lastly, through eliminating other competitors within the social media market, Facebook earns larger shares within their respective market, while gaining assets, again contributing to a healthy firm value.
Facebook’s acquisition of Instagram in 2012 is a decent illustration of marketing strategies like customer/competitor orientation and branding in action. The company values their customers and views products from their perspective, are conscious of their competitors actions and have extended their brand to millions of other potential customers. This has had a positive impact on the company, allowing for it to enjoy a sustainable and healthy firm value.
Social media is a crucial part of individual’s lives and shows no signs of dissipating. We are constantly checking our phones for the latest information and even if an individual chooses not to be active on social media, someone else is most likely incorporating them in tagged photos. Research by Smith 2015, shows that over 64% of Americans own a smartphone with shows the potential for the formation and management of impressions online to increase. Facebook, which is one of the most commonly used social networking sites (SNS), many individuals are skeptical of the individuals that do not have a Facebook account. The social networking site has been on the rise, which leads to the opportunity to explore what content people are choosing to share
Social media is a key tool that has changed both our everyday lives and the way we do business. In the modern world, almost everyone who has a smart phone – and most of those who have computers - also hold accounts on a social media company. Currently, In N Out Burger and Shake Shack, two of America’s most buzz-worthy restaurants, are exhibiting great success at using the social media world to promote their businesses. Both companies have established a presence on many of the most popular social media outlets, including Facebook, Twitter, and Instagram. Each of these burger-focused restaurants, however, has demonstrated a very different approach to their social media.
It’s no secret that internet and social media has become a major part of our society. In the last 14 years the number of internet users has increased by a whopping 566% and 2,495,518,376 people in this world have access to the internet. 70% of them use the internet on a daily basis. On average that 70% will spend 3.2 hours daily on social media, such as Instagram, Tumblr, Google+ and YouTube.
Like Facebook, Instagram offers an environment where people can upload pictures and videos and other people can comment and like what is posted. Pictures that are uploaded on Instagram can be shared on Facebook. This expands the communication environment of Facebook. Facebook has become very big with video and picture sharing. Users can comment on various videos and pictures uploaded by their peers. Users also have the option to like videos and pictures. Other people can see these interactions being done, which leads to other people seeing the pictures and videos. Many advertisements are also used on Facebook. Since Facebook receives a lot of traffic from people, videos that advertise products can be uploaded to Facebook, so they can get more attention. People are able to attach recent news articles onto their profile that can be shared with their friends and family members. All of these are useful techniques and lead to a larger communication discourse
Facebook, Inc.’s challenge is that they are too invested and dependent on their advertisement revenue. The company’s prime source of revenue comes from web and mobile advertisements and payment and fee from online gift purchases and virtual games (Stevens).
Facebook is the current leader in the trend of online segregation of face to face interaction between us and others. 84 million users are registered Facebook enablers. In 2010 Facebook generated $3.7 billion in revenue. Facebook has earned the title of being the first website to obtain 1 trillion page views in a month. Users are estimated to project 2.7 billion likes and comments every day, in the first three months of 2011.
Martin, J., & Samels, J. E. (2012). Beyond Facebook: What's Next for Social Media in
While we are on Facebook, Instagram we can see so many advertisements; all those advertisements of business enhancing their business through Social Media. Firstly, to support my opinion, my first small organisation is a Madam Boutique (traditional style clothes of India). Indians live across the world, many of the Indian people liked and followed her Facebook Page and Instagram page every day and even they post the new styles of traditional dresses on a monthly or weekly basis. Their customers order the dresses online, they send a sample and do video chat with them. Their Facebook says they reply in few hours. Through Facebook page and Instagram page they expanding their customer’s day-by-day. My second major company is southwest airline that will clearly shows us that social media does have impact on business. Southwest airline is U.S major airline, the largest low-cost carrier, in Delas. Southwest airline is domestic airline which flights only in U.S. Research shows that since 2006 southwest airline started using online or social media they gain more customers. ‘Southwest airline is first airline which reaches over 5m Facebook fans’ (southwest airline co., 2016). Moreover, southwest airline organization says listen to customer first and then they said that they are trying to share ‘real’ content of topics. ‘Southwest airline is 24/7 online; 1 million twitter followers, 12 million monthly visits to its website,
Sports company can use Instagram to visually tell a story about themselves or their associates. Sports companies can build up their brand and/or maintain their brand by using Instagram as a window into the company operations and the impact they have on a local, regional and national level. The sports company can organically market itself with clever pictures and #Hashtag campaigns attached with those clever pictures. The sports companies can Instagram to effectively advertise themselves and promote future transactions and interactions within their site(s). If the #Hashtag picture campaign is distinct and clever enough with a strong reaction and support from the consumers, the promotion of the sports company is effectively seen through data and statistics stored within the Instagram site. A sports company can promote an ...
Facebook’s acquisition for Instagram presents some benefits for Facebook, according to a few observers on the deal. Facebook understood that Instagram was fast growing in the social media world, and knew that the recently made smartphone app would give Facebook a run for its money, literally. Instagram had the mobile-first persona that Facebook hadn’t at the time, which is why Zuckerberg knew it would be wise to make this acquisition from the start. Gigaom contributor, Om Malik stated, “Facebook and Instagram are two distinct companies with two distinct personalities. Instagram has what Facebook craves – passionate community. People like Facebook. People use Facebook. People love Instagram.” Malik also continues to express his opinion by saying, “It is my single most-used app. I spend an hour a day on Instagram. I have made friends based on photos they share. I know how they feel, and how they see the world. Facebook lacks soul. Instagram is all soul and
Social media is at the core of many marketing plans for corporations in the United States and world-wide. One of these companies at the forefront of social media use is Wells Fargo Bank, N.A. (Wells Fargo). The ability to directly contact customers and potential customers in a real time online environment is crucial to the bank / customer conversation and reinforcing the company’s place in a customer’s mind as the entity that they want to do business with (Wells Fargo Bank, 2014). This case study will discuss the current status of Wells Fargo’s use of social media as a means to building their customer base. Additionally, historical information on the process of the marketing move to social media will be presented and the development of the roles that are involved in this marketing strategy will be discussed. The impacts to the public sphere and society at large will play into the discourse of the social media topic and finally, the underlying theories will be discussed as they pertain to Wells Fargo and social media.
Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily
In today’s business world, Marketing Management faces many challenges including globalization, intense competition, ethics and sustainability, speed and responsiveness, the digital world and diversity (Daft, 2013, pp. 8-11). Out of all of these challenges though, I believe the most critical issue facing Marketing Management today is the digital world. The digital world issue is more critical than many other issues facing Marketing Management because management is dealing with a totally different type of customer than in the past. Customers nowadays are not the passive, take whatever they can get and like it group. No, they are very active and vocal about their likes and dislikes of products and services. Today because of social media and dealing with real-time communication, the customer drives the marketing/brand management of a company.
First of all, Facebook is a social network, which means it connects people around the world, allows us to make new friends around the world, builds more relationships, brings some new colors to life. It is very beneficial for
In other words, their purchasing power is more focused on their need, health, and efficiency and cost effective. It is with this in mind, this writer would say that there lies a possibility for a company to cater to both its best interest and that of the consumer conjointly. Without customers, there would not be any company; therefore, a secure partnership between the company and customers would be more beneficial for both parties, in that the customers would be loyal to the company based on if they feel valued and if their needs are being met by the company. The company can foster this partnership by building a strong customer relationship management – where they have a customer-centric model in which they learn ways to enhance their product and service through feedback received from the customers. Here, both interests of the company and the customer will be