Report on Marketing Strategy of Facebook
a. Executive Summary
This report is developed in the form of a business report. The prime purpose of this report is to examine the marketing strategy of a company in order to determine which new strategy it will follow in the near future. In this regard, Facebook has been selected as a prime business organization. The evaluation has been done to examine which of the marketing strategy is followed by Facebook since its creation for promoting its online services. The report will also examine which of the strategy will be followed by the company in the future to maintain its strategic position.
In the present business environment, the trend of online means has been increasing to a great rate in the business world. After the advent of introduction, the business world was benefited with social media means in order to flourish their marketing activities and functions. There are several social media-based services for business organizations to promote their marketing activities. Among the social media service providing companies, Facebook has a very renowned name. This report is developed in the form of an academic report. For such purpose, Facebook has been selected as an organization (Dunay and Krueger, 2011). At present, the popularity of Facebook has increased too much that people use it as a major means of communication to have connected with their friends and family members.
This increasing popularity of Facebook is just because of the marketing strategies followed by Facebook since its creation. The company has keen focus on its marketing strategies in order to make people aware with the service attributes and facilities availed by it to the immediate customers. The company in its marketing strategies promote its usage not only for individual customers but also for the commercial purpose to be used by other business organizations to advertise and promote their products in a successful way (Facebook, 2014).
In relation to the Facebook company, the following report is aimed to examine the marketing strategy of Facebook that is has been following since its creation. The prime focus of this report is to examine the effectiveness of the marketing strategy. In relation to Facebook, the prime purpose of the report is to examine the status quo the marketing strategy that Facebook has been following since its creation in order to examine the effectives of this strategy to promote the services of the company.
In addition to this, the report is also focused to explore what strategy will be used by Facebook in future for its marketing purpose to make its business flourish in a successful way. Along with this, the report is also examining whether the existing marketing strategy will be feasible in the near future for Facebook to promote its services or the company will need to introduce and adopt new marketing strategy. In this relation the report is also purposed to examine which strategy will be followed by Facebook in future.
c. Background of the Company
Facebook as a company mainly operates as a social networking service providing company. The company is headquartered in Menlo Park, California. The company first launched its website in the year 2004 on 4th February. At the present date, there are billions of users of Facebook all over the world. The data of 2014 shows that; there are more than 1.3 billion active users of Facebook all over the world. The increased usage of facebook services has made the privacy policies of facebook facing the issue of scrutiny. The company has employed more than 8, 348 employees according to the recent data of the 2014 (Facebook, 2014). The mission of the company is to make the world more open and transparent through helping people to be interconnected and share their power and views.
d. Marketing Analysis
The marketing analysis of Facebook is mainly done in order to evaluate the effectiveness of the marketing strategy that is followed by the company since its creation and supportiveness of the marketing strategy of the company to reach a competitive position.
i. Nature of Facebook’s Marketing Strategy since its Creation
Since its creation from the year 2004, Facebook has been working as a successful company at global level. Though the company has not now remained a fascinating business organization, the company with the help of its marketing strategies has become a successful organization to have broader economies of scale. In the first quarter of 2014, the company has gained billions of dollars. In the last three months of 2013, Facebook generated high degree of income through its effective marketing strategy due to which larger number of companies use facebook as a good platform to advertise their products and services (Dunay and Krueger, 2011).
The company used direct marketing strategy in order to advertise its online services to the companies. The company used to provide direct marketing to the customers all over the world in order to make them aware with the online platform that the company serves for general consumers as well as the commercial consumers in order to provide their services to a good level. The company promoted the direct marketing strategy in order to promote its global advertising platform.
In the theories of marketing, the theory of integrated marketing communication (IMC) has been proved a good means to explore the effectiveness of the marketing strategies of the companies (Motiwala, 2008). The IMC theory proclaims that with the help of having a good communication strategy the business organizations can promote their products and services in the best effective way through making consumers communicated about their products and service offerings to a good level.
The company has even used mobile marketing strategy in order to increase its reach to customers across the globe. Through the marketing and promotion of its online services with the help of mobile marketing strategy, the company has earned a great degree of revenue to a significant level. The marketing mix theory also fosters that with the effective promotion of their marketing practices the business organizations can have coverage of the larger market share better than competitors.
The same has been proved evident in the case of Facebook. With the help of mobile marketing strategy the company has covered even the global markets to have a significant competitive advantage. With the help of its marketing strategy through the application of mobile marketing strategy, Facebook has earned high degree of revenue and even the company has benefited with the increasing rate of revenue since its creation. The increased use of smartphones and laptops in the recent years has provided more benefits to Facebook to increase its marketing efforts to a good level among all other online marketing service providing companies.
With the help of its marketing strategy, the company has had a good social and cultural impact on the consumers. The social exchange theory in this context stated that the companies should provide good value for the money to the customers with the help of the best of its services (cannot, et al, 2009). In this regard, it has been evident that Facebook has used the strategy of developing good program content in order to promote the business of other companies to a good level.
The company has even improved its infrastructure in order to keep the promotion of other companies’ products and services to a good level. With the help of the development of program content to a good level, most of the business organizations prefer to take services of Facebook in order to promote their products and services.
The other marketing strategy that is used by Facebook is to target the specific consumers who are in intense need of the services provided by the company. The company mainly targets the youth customers and technology sheen customers. With such a marketing strategy, the company has enabled to have a good recognition in the sight of the customers. The company with the help of its marketing and advertising practices, the company has gained more than 80% of its revenue (Dunay and Krueger, 2011). The company has had great growth with the help of its advertising features on the news and other streams. In comparison to other big media, facebook has targeted the users who are in great need of advertising facilities through social media networks.
In this way, Facebook has gained a good market position and had significant growth with the help of its marketing strategies since its creation.
ii. Strategic Marketing Options for Facebook Moving Forward
As the trend of social networking and online marketing has been becoming popular day by day, new market players have been emerging in the field of online marketing. Due to this trend, it has become essential for all companies to opt for new options of marketing to make their business position effective in the sight of the customers. In this regard, it can also be evident that though the company Facebook has gained significant market position at global level, yet due to the increasing rate of competition it will need to have adoption of newer strategic marketing options to maintain its sustainability position as it will move forward (Wilson, and Gilligan, 2012).
The company in near future will need to provide some paid promotion material in its newsfeed in order to intensify its marketing efforts. The company should also provide the services of making the status update on the posts of the website of facebook. The company will also need to improvise its advertising practices through making some technological advancement in its advertising platform. The company will also need to improve its network in order to increase its followers. The company will need to develop and build a network so that more and more customers can be added in the existing customer mass (Zic, Hadzic, and, Ikonic, 2009).
Hence in this way, Facebook will be able to meet the consumers’ demands in the best possible way. The company in its marketing efforts will need to improve its customer acquisition so that it can cover a larger market share in the near future and can win strong competitive edge over competitors.
In this way, Facebook will need to have adoption of the new strategic marketing options when it moves forward.
On the basis of the overall discussion made in the report, it has been evident that Facebook has become a good and successful online marketing company which has gained enormous amount of growth and success with the help of its marketing strategies since its creation. The marketing strategies of Facebook like direct marketing, mobile marketing and target customers’ base marketing have been proved quite supportive for it to have good growth. However, due to increasing degree of competition in the field of online marketing, the company will need to improvise its efforts to a good level in the near future.
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