Marketing communication and brand strategy mkt 571

Facebook Target Markets

Among social media companies, Facebook stands out for its longevity and ability to monetize the significant data collected from its users. Facebook is currently the largest social media brand with a significant market share among young and middle-aged people. Facebook has several strengths that cement its strong industry position; one of these strengths is a strong brand image; over one billion people use Facebook’s services all over the world daily, this translates into a strong brand image. Facebook has been able to venture into greater profits because of the expansion of the brand image.

Another key strength of is its enormous user base of more than 1.8 billion monthly active users; this makes the company the undisputed leader in social media and the preferred choice for advertisers. The significant number of monthly active users means Facebook is in a position to make billions in profits that it reinvests to improve its market position further and buy out the competition.

Despite the fact, Facebook is the most successful company at engaging users and monitoring the data provided by users, several weaknesses, if not adequately addressed could signal the end of the enterprise. One of the weaknesses is low diversification of their core business. Facebook makes the bulk of its money from advertising on its social network site; this makes it overly dependent on the social networking site and vulnerable to changes in consumer preferences. The increase in popularity of applications such as Snapchat show that consumers are hungry for a different form of engagement; if Facebook fails to diversify, it will experience loss of market share to competitors (Malhotra, Birks, and Wills, 2013).

Another weakness is that Facebook is a large company inadequate to compete with more nimble competitors who are capable of responding to consumer changes. In recent, years, Facebook has taken to buying rival companies such as Instagram and WhatsApp instead of innovating; Facebook’s lack of innovation is a major weakness that the company should address.

As the biggest social media company in the world, there are plenty of opportunities for Facebook to improve its market position and innovate. One of the actions for Facebook is connecting the world’s last batch of nations and people not connected to the internet; among western countries, Facebook has achieved near market saturation, growth for the company now lies in connecting the world’s unconnected people. Facebook has several projects aimed at connecting the unconnected world including a solar-powered plane that beams the internet to unconnected towns. Another opportunity for Facebook is market diversification. Facebook is currently very profitable, and it generates considerable volumes of cash; the company should use its dominant market position to innovate and provide new experiences that the market desires and appreciates, this ensures the longevity of the enterprise.

Fierce competition is one pertinent threat that Facebook faces. Companies such as Google have the resources, expertise, and initiative necessary to create a viable rival product that can take away market share from Facebook. Intense competition means that Facebook should always be on its toes or risk ceding market share to more nimble competitors such as Snapchat. Another threat that Facebook faces is market saturation in the United States of America and other western countries, the company risks becoming complacent and basking in its significant market share. It is necessary for Facebook to continue innovating so that it remains relevant and generates value for consumers (Babin & Zikmund, 2015).

Several technological factors affect the operation of Facebook. One of the significant technological trends is the growth of mobile computing through devices such as smartphones, smartwatches, and an increasing array of connected devices. The increase in mobile computing presents opportunities and threats for Facebook, on the one hand, it presents the company with new ways of creating value for consumers while on the contrary mobile computing gives other companies the opportunity to outdo Facebook (Facebook).

In its last financial report, Facebook reported over 1.8 billion monthly active users, which represents a seventeen percent increase from 2016. The Majority of Facebook’s users are adults between the ages of 25 to 39; this makes Facebook a coveted advertising platform by advertisers. Facebook’s financial report also shows that 76% of its female users and 66% of its male users are daily active users (Facebook).

The demographic data about its users that Facebook provides shows that it attracts a coveted segment of the population; adults between the ages of 25 and 39 are more likely to have disposable income; this makes Facebook the chosen advertising platform for advertisers. The trends also show that Facebook is failing at attracting a younger crop of users below the age of 25.

References

Babin, & Zikmund. (2015). Exploring marketing research. Cengage Learning. Facebook. (n.d.). Facebook FORM 10-K. Retrieved from UNITED STATES SECURITIES AND EXCHANGE COMMISSION: https://www.sec.gov/Archives/edgar/data/1326801/000132680116000043/fb-12312015x10k.htm Malhotra, Birks, & Wills. (2013). Essentials of marketing research. Pearson.

Per the course guidelines, opening paragraph should have insight on what the assignment is to cover based on the description in the syllabus. Be sure to also mention also in the opening paragraph which of the 3 topics you will be covering.

Per course guidelines, did have a conclusion summarizing key issues within the assignment.

How does this differ then defining the target audience as outlined in the week 2 instructor presentation?

Along with Maslow’s hierarchy of need which you mention below. Good insight from the resources provided.

To define a target market, one must consider the following:

• Identify its current or potential customer base

• Identify the competition

• Analyze the product or service and determine its benefits

• Choose specific demographics that will maximize profitability

Following these steps is one example of Consumer Analysis. Consumer Analysis is important to a firms business or marketing plan because it ultimately identifies its customers, performs research to determine the potential success of a product with those customers and specifies how the product will impact the target audience.

In this course, as mentioned in week 1, all SWOT should include internal and external trends which is defined over a period of time with factual information and becomes a SWOTT analysis based on the template provided for the course.

Individual Assignment: Understanding Target Markets Grading Report

Purpose of Assignment

To develop effective relationship marketing, a company must first understand its targeted consumers’ buying influences and behaviors. This week’s assignment is the first part of the development of a marketing plan. It provides the foundation of the marketing plan and introduces the student to a variety of diagrammatic tools for understanding a business.

Assignment Steps

To develop effective relationship marketing, a company must first understand its targeted consumers' buying influences and behaviors. In Week 2, create the Research section of your plan.

Create the research section of your marketing plan in minimum of 700 words.

Include at least 3 elements of the Research List of Topics (see list below):

· Research List of Topics:

· Primary Research

· Secondary Research

· Consumer Analysis

· Customer Profile

· Continuous Consumer Monitoring & Research

· Environmental Scanning

· Identify Market, Economic, Technological, Regulatory, Legal, Social, and Ecological Forces

· Current Opportunities

· Potential Future Opportunities

· Current Threats

· Potential Future Threat

· Diagrams are not required but can be used to provide clarity and conciseness. Diagrams (and subsequent discussion) can include SWOT (emphasizes internal market--Strengths, Weakness, Opportunities, Threats) TOWS (emphasizes the external market--Threats, Opportunities, Weakness, Strength), PEST (Political, Economical, Social, Technological), SOAR (Strengths, Opportunities, Aspirations, Results), and/or STEEP (Social, Technological, Environmental, Economical, Political). All diagram(s) should be in APA format and must include a subsequent discussion of the diagram(s) providing insight and clarity.

Develop the first two parts of the Target Market section, which includes an overview of the demographics (age, income, family members, and birthdays) and psychographics (activities, interests, and opinions) analysis. This is not a detailed analysis but an overview (basic trends and insights from the data that is presented in annual reports and other SEC type filings).

Explain the insights you have gained from your inspection and analysis of the demographic and psychographic information you have found.

This assignment will be incorporated into your overall marketing plan for Week 6.

Cite a minimum of three peer-reviewed references.

Format your assignment consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

Grading Guide

Content

Met

1 Pt

Partially Met

.75 Pt

Not Met

0 Pts

Comments:

Student creates the research section of his/her marketing plan and includes at least 3 elements of the research list of topics provided here:

Research List of Topics

· Identify Ecological Forces

· Current Opportunities

· Potential Future Opportunities

Any diagram(s) provided (not required) are in APA format and includes discussion providing insight and clarity.

X

Did apply specific research for 3 of these topics with some insightful content. Include illustrations such as graphs and tables to support your response related to the topics. What insight from the chapter readings should have been included to establish a baseline on what to focus on for each of these sections? A table of current with future opportunities is suggested going forward.

Student develops the first two parts of the Target Market section, which includes an overview of the demographics (age, income, family members, and birthdays) and psychographics (activities, interests, and opinions) analysis.

X

Did not include any details of the target audience profile with specific examples. Should include the additional sections of buyer behavior and geographic information as mentioned in the week 1 class. Should include data with narrow, focused and targeted ranges. See examples below.

Student explains the insights he/she has gained from his/her inspection and analysis of the demographic and psychographic information he/she has found.

X

Did have some analysis with knowledge gained from conducting this research. Should include benefits but should relate this to how it is meeting the wants/needs of the target audience or solving problem.

The Research section is a minimum of 700 words in length.

X

Had 775 words which is above the word count minimum. Be sure not to exceed by more than 10% of the assigned word count.

Total Available

Total Earned

4

3

Writing Guidelines

Met

.25 Pts

Partially Met

.15 Pts

Not Met

0 Pts

Comments:

The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.

X

Met most criteria but should have more mages related the topics as shown in the chapter readings.

Intellectual property is recognized with in-text citations and a reference page. Use 3 Peer review references.

X

Did not include 3 additional referenced but were not 3 peer reviewed references. See examples below. Per the course guidelines, did include references “quoted” citations from chapter readings.

Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise.

X

Paragraphs are concise and paper flows at a graduate’s level.

Rules of grammar and usage are followed including spelling and punctuation. Included turn it in and grammar reports.

X

Grammar issues within the report from the grammarility system with 2 critical and 4 issues. Try to reduce these to 0.

Total Available

Total Earned

1

.7/1

Assignment Total

#

5

3.7/5

Additional comments:

Good job on the assignment. Remember to include turn it in and grammar reports when submitting your assignments. Make changes to your assignment based on these report such that the report results in less than 10 grammar issues and less than 5% similarity index.

Additional Notes:

Target Market is best analyzed by considering the following:

Identify its current or potential customer base

Identify the competition

Analyze the product or service and determine its benefits

Choose specific demographics that will maximize profitability

Target Audience – is best analyzed by considering the following and see images below for additional details

Subset of market

Demographics

Psychographics

Geographic

Buyer Behavior

See slide in week 2 assignment feedback for additional details

Gaining market insight is critical to the success of a product being marketed. According to Phillip Kotler and Kevin Keller, authors of Marketing Management 15 Edition, consumers make decisions based on their core values; it is what drives them to purchase a product. Kotler and Keller identify three theorists that help market researchers understand consumer behavior, also known as “motive” (Kotler & Keller, 2016). Motive is driven by a psychogenic need, or the need of belonging, recognition and self-esteem. Freud’s theory on motive suggests that consumers are driven by the unconscious mind. Market researchers can use specific projective techniques, such as word association, picture association to get a deeper sense to why a consumer would choose a certain product. (Kotler & Keller, 2016). Maslow’s theory suggests that individuals have a hierarchy of needs and that if a product or service can be targeted to a specific need, the more people it will affect. Lastly, they introduce Herzberg’s theory, which suggests that there are satisfiers and dissatisfiers that motivate a person to purchase a product. The absence of dissatisfiers is not enough to sell a product, so it is important to focus and highlight satisfiers (Kotler & Keller, 2016). Market researchers can conduct various studies to determine what motivates a person to purchase a certain product, and hone in on the factors that they believe will influence like customers.

Environmental scanning is a review of external components that impact businesses and is a very important part of marketing research. The goal is to identify these factors and apply what is known as SWOT analysis. Each letter represents and area to consider and analyze: Strengths, Weaknesses, Opportunities, and Threats. SWOT considers both internal and external analysis so that a company can direct and focus resources on the correct areas. Below is an example of a SWOT Matrix that depicts health care analysis on a chart (Harrison, 2010).

Should include SWOTT per comment above.

References

3 Peer reviewed

Kotler, P.T. & Keller, K.L. (2016). Marketing management (15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall.

Chapters 5, 7, 8, 10.

Example peer-reviewed cited references are below. Note the resource is form EBSCOhost University of Phoenix Student Library and include

ISSN: 0965-254X

Accession Number: 94451469

Aroean, L., Michaelidou, N. (February 2014) “A Taxonomy of mobile phone consumers: insights for marketing managers” Journal of Strategic Marketing 22 (1) p 73-89 Retrieved March 27, 2017, from EBSCOhost University of Phoenix Student Library ISSN: 0965-254X Accession Number: 94451469

Aroean, L., Michaelidou, N. (February 2014) “A Taxonomy of mobile phone consumers: insights for marketing managers” Diagram p 75 Journal of Strategic Marketing 22 (1) p 73-89 Retrieved March 27, 2017, from EBSCOhost University of Phoenix Student Library ISSN: 0965-254X Accession Number: 94451469

Burrows, C. S., & Weigel, F. K., (Jan-March 2016) “Mobile Phone Health Applications for the Federal Sector” U.S. Army Medical Department Journal p71-75 Retrieved March 27, 2017, from EBSCOhost University of Phoenix Student Library ISSN: 1524-0436 Accession Number: 113185435

Kotler, P.T. & Keller, K.L. (2016). “Marketing Management: Creating Long-term Loyalty Relationships” (15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall. Retrieved March 27, 2017, from University of Phoenix Student Website Chapter 5 Week Two Reading

Kotler, P.T. & Keller, K.L. (2016). “Marketing Management: Analyzing Business Markets” (15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall. Retrieved March 27, 2017, from University of Phoenix Student Website Chapter 7 Week Two Reading

Wagner, J. (June 2011) “Anytime/Anywhere---Playing Catch Up With The Mind of The Smartphone Consumer” International Journal of Mobile Marketing 6 (1) p28-53 Retrieved from EBSCOhost University of Phoenix Student Library ISSN: 1939-1161 Accession Number: 61262449

Wagner, J. (June 2011) “Anytime/Anywhere---Playing Catch Up With The Mind of The Smartphone Consumer” Diagram p 34 International Journal of Mobile Marketing 6 (1) p28-53 Retrieved from EBSCOhost University of Phoenix Student Library ISSN: 1939 1161 Accession Number: 61262449

Belief vs Attitude

A belief is a descriptive thought that a person holds about something. Just as important as beliefs are attitudes.

An attitude is a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea.