Guide on Marketing Strategy of Facebook

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Report: Marketing Strategy of Facebook

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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 organisation. The evaluation has been done to examine which of the marketing

strategy is followed by Facebook since its creation for promoting its online service s. The

report will also examine which of the strategy will be followed by the company in future to

maintain its strategic position.

b. Introduction

In the present business environment, the trend of online means has been increasing to

great rate in the business world. After the advent of introduction, business world was

benefited with the social media means in order to flourish their marketing activities and

functions. There are several social media based services for business organisations 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 organisation (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 organisations 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 services providing

company. The company is headquartered in Menlo Park, California. The company first

launch 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 the 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 or Strategies 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 no t now remained a fascinating business

organisation, the company with the help of its marketing strategies has become a successful

organisation 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 ser ves 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 organisations 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

the 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 significant level. The marketing mix theory a lso fosters that with the effective promotion

of their marketing practices the business organisations 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 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 best of

its services (Cant, 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

development of program content to a good level, most of the business organisations 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 ad vertising

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.

e. Conclusion

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 s ince 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.



f. References

Cant, M. C., et al, 2009. Marketing Management. Juta and Company Ltd.

Dunay, P. and Krueger, R. 2011. Facebook Marketing For Dummies. 2nd ed. John Wiley & Sons.

Facebook, 2014. [Online]. Available at: www.facebook.com [Accessed on: 02 January 2015].

Meek, H. and Meek, R. 2012. CIM Coursebook 03/04 Strategic Marketing Management. Routledge.

Motiwala, A. 2008. The Dictionary of Marketing. Lulu.com.

Wilson, R.M.S. and Gilligan, C. 2012. Strategic Marketing Management. 3rd ed. Routledge.

Zic, S., Hadzic, H. and, Ikonic, M. 2009. Portfolio Analysis – A Useful Management Tool.

Technical Gazette 16(4), pp. 101-105.


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Guide on Marketing Strategy of Facebook