People like to connect, communicate and share. It can be seen through the development of languages, the exchange of letters, the invention of the phone and today’s social media platforms such as Google +, Twitter and Facebook. Facebook being an important social media platform with 1.19 billion users worldwide (Facebook Key Facts 2013), since 2004 it has been attracting more and more users. It is of interest how Facebook is keeping it’s free service for its users, and despite its significant size still is growing its user base and revenue. Two questions are open: First, what is the marketing processes involved in Facebook's success story? Second, what are the key factors Facebook should be aware of for the next 5 years to maintain/reinforce its competitive advantage of value creation and customer relationships?
1. Facebook Inc. Facebook is in itself interesting to analyze because of several aspects. Through its worldwide user base, it globally connects in one platform the largest population segment of potential targets for marketers with a technologically innovative model, a social media platform. Marketers are being offered advertising space at a global scale. This maximizes value creation for marketers and target markets, as depending on what information users allow Facebook to share, the adverts are tailored to the users’ interest (Annual Report 2012 p. 5).
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return (Kotler and Armstrong et al., 2013). Concerning Facebook, the company creates value for 3 different markets. First, for the general users it provides a social platform enabling them to stay connected with their friends an...
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Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
With social media websites being the main hub of personal information, advertisers are consistently monitoring our social media activity, having the ability to look into our personal information. In the article "Advertising and Consumer Privacy: Old Practices and New Challenges." by Justine Rapp states, “Fueled by advances in capabilities and interconnectedness of computer based technology, advertisers are able to collect and assimilate information on consumers like no other time history” (51). Facebook has become the number one, social media website around the globe. It is the most popular website used by personal and business users in today’s society. In the article “Using Social Media to Reach Consumers: A Content Analysis of Official Facebook Pages” by Amy Parsons states, “As of July 2011, the social network site Facebook claims to have over 750 million members and in the terms of activity.” (27), making it easy to meet and connect with others. Facebook is considered the “hot spot” for online social activity, however, it exposes personal information about its consumers to
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill Company.
Kotler, P., Keller, K.L. (2012). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
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From organic social media audience reach to mobile ads, there are some vital information that demonstrate the most powerful and effective changes Facebook made for all type of brands in 2014, rolls down the most important
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
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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 this day and age, many individuals simply cannot go without some sort of socialization. Specifically speaking, most participate in online social networking sites. The most popular and used one is commonly known as Facebook. Facebook was created in 2004 by Mark Zuckerberg. By 2007, Facebook had over 21 million users, adding up to 1.6 billion page views every single day. The typical user spends over twenty minutes per day on Facebook and two thirds of the users log in every day at least once. It is not questionable as to why many people have a Facebook account. Facebook is generally efficient, easy for socialization, and not difficult to manage. Most organizations are affiliated with Facebook, as “almost 22,000 organizations had Facebook directories,” as of November 2006. A year after that in 2007, Facebook was named the seventh most popular website (Ellison 1). However, with anything well known, many oppose to using Facebook and hold criticism against the popular network. There are many flaws in the website and the relationships it starts online. Facebook is risking dangerous activities, ignoring privacy laws, and demeaning healthy socialization.
The Popularity of Social Networking Sites In recent years, social networking sites have rapidly gained popularity among people of all ages. A large number of people have registered and become members of some social networking sites, such as Facebook, Twitter, and WeChat. Also, people spend a lot of time on these sites chatting, playing games, and making friends. Social networking sites have become a part of people’s lives.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill.
Nowadays, we are living in the “ technology world”, digital’s century, science and technology are being devolopped like a rain-storm, people try their best effect to serve for human’s infiniti demand. Internet in general and social network in particular are exceedingly funtional tools. Indeed, with over 1.3 billion active users in June,2014 ( Wikipedia), there is no suprise that Facebook has been becoming a leading social network in the world, “Facebook was not originally created to be a company. It was built to accomplish a social mission - to make the world more open and connected” – CEO of Facebook: Mark Zuckerberg (google). Facebook truthly brought many useful; however, it is still “ a double-edged sword”.
Kotler, P., & Keller, K. (2012). Marketing management (14th ed., Global ed.). Boston, [Mass.: Pearson.