Facebook as a Dominant Marketing Medium

Topics: Marketing, Facebook, Marketing strategy Pages: 8 (2617 words) Published: September 30, 2013

Facebook as a Dominant Marketing Medium

Table of Contents

EXECUTIVE SUMMARY………………………………………………………………..iv PROBLEM……..………………………………………………………………………….1 BACKGROUND…………………………………………………………………………..1 Market Penetration…………………………………………………………………........2 Accessibility……………………………………………………………………………….2 Willingness to Use Social Media………………………………………………………..3 Necessity of Using Facebook and Other Social Media for Marketing………………6 CONCLUSION……………………………………………………………….…………...7 REFERENCE LIST……………………………………………………………………....8 INTEGRITY PLEDGE……………………………………………………………………9

Executive Summary

It can readily be observed that Facebook has become a dominant marketing medium for many businesses. Transnational corporations such as Coca Cola and Starbucks, as well as smaller and more localized businesses, make use of Facebook to initiate interactive and personalized marketing while also taking the opportunity to learn more about their clientele. The market penetration of Facebook, currently almost 50% of US citizens, makes it a medium and a tool that cannot be ignored. This report investigates the means and techniques of using Facebook as a marketing tool, along with the benefits of doing so. Marketing over social media is different from traditional marketing in many ways, and it is the willingness of marketers to learn these new techniques, more than any other factor, which has enabled the success of Facebook as a marketing tool. At the same time, it is observed that the motivation for doing so is very profound. Although it has not yet been proven whether or to what degree marketing using Facebook increases sales, it is now considered essential for companies to protect and promote their image through skillful communication using Facebook.

Facebook as a Dominant Marketing Medium

PROBLEM

This report was designed to analyze the reasons that make Facebook a dominant marketing medium. Specifically, the report seeks answers to these questions: 1. What are three ways that helped Facebook become known today as one of the most powerful marketing tools? 2. Is it necessary for companies to market through Facebook or other social media in order to be successful? BACKGROUND

Facebook is a social networking service. Mark Zuckerberg founded Facebook with the help from his Harvard college roommates Eduardo Saverin, Dustin Moskovitz and Chris Hughes. Facebook was originally limited to only Harvard students, but eventually expanded to other colleges in the Boston Area, Stanford University, and the Ivy League. It eventually became assessable to everyone and is now considered one of the most powerful social networking sites to date, beating out competition such as MySpace and Nexopia. Today, Facebook has become very popular with statistics showing that there are more than 800 million active users and more than 50& of them log into Facebook on any given day (Shooner 2011). More than 900 million objects that people interact with (pages, groups, events and community pages), and the average user is connected to 80 community pages, groups and events (Shooner 2011). This demonstrates the power that Facebook has with its wide audience, and the obvious reasons why businesses would like to exploit the audience for marketing purposes. Market Penetration

The ubiquity of Facebook in terms of numbers of users and the amount of time that they spend engaging with the medium makes it, arguably, the most influential new medium for marketing and customer communication. While approximately half of US citizens are currently users of Facebook, and 35% of those are “viable prospects” in the 35- to 65 age group, it is, perhaps, the interactive two-way engagement of users with this medium that makes it so powerful (Shooner 2011). Unlike television and print media, Facebook becomes an integrated part of people’s lives, relied upon for communication,...

References: Barwise, P. & Meehan, S. (2010). “The One Thing You Must Get Right When Building a Brand. Images”. Harvard Business Review 88 (12): 80-84.
Kunur, P. (2010). “How your likes are turning Facebook into the loyalty card of the internet”. Advertising Age 81(33): 4-30.
Lee, E. (2011). “For Facebook 's top ad exec, 'people are the operating system '”. Advertising Age 82 (9): 16-17.
Manjoo, F. (2011). “(Like) + (Retweet) = $$$?” Fast Company 157: 86-117.
Schultz, E.J. (2011). “Diageo chases fans ' loyalty with help from Facebook”. Advertising Age 82(33): C-2-C-3.
Shooner, J. (2011). “Facebook Marketing”. Landscape Management 50 (10): 120-122.
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