Facebook Digital Marketing Strategy
Facebook Digital Marketing Strategy
14 Competitor Analysis
15 Potential Entrants
15 Substitutes
15 Industry Competitors
16 SWOT Analysis
17 PEST Analysis
18 Barriers to Entry
19 Customer Analysis
20 Facebook Worldwide
21 Customer Segmentation
22 Personas
2
ABOUT FACEBOOK
Introduction
Facebook is a social networking service provider that was founded on 4th February 2004 by Mark
Zuckerberg and four fellow Hardvard University students - Eduardo Saverin, Andrew McCollum,
Dustin Moskovitz and Chris Hughes. It started as a college project website where membership
access was restricted to Harvard University students, as its popularity grew access spread to Ivy
League Universities in the Boston area such as Stanford University. Eventually, as its support
grew, its popularity spread worldwide and on 26th September 2006 Facebook was made available
worldwide to anyone over the age of 13 years old.
This service allows users to register and create their own personal profile, search for friends
and family and connect with them through a messaging service or by posting messages on
each other’s walls. They can also join groups based on common interests. It has now become
common for organisations, politicians and celebrities to own a Facebook page; it is used as a vital
communication tool for Public Relations and Marketing.
Facebook’s service was initially delivered through a website. The rapid increase in demand for
their service, along with the growth of technology, caused them to develop their product range
and the service is now also available as an App. This allows users to access Facebook on the go
through their smart mobile phones and tablets.
3
ABOUT FACEBOOK
Mission Statement Service Overview
Facebook’s mission is to Facebook offer their services in four main ways. Primarily they are a Social Networking
“Give people the power to share and to Service Website that allows friends, families and businesses to network all over the
make the world more open and connected.” world. The rapid development in technology propelled them to also offer the Social
Networking Service through a mobile app that can be accessed through smart mobile
phones, tablets and iPods.
Facebook has its own Developer’s Platform that allows developers to create apps and
Objectives websites that can integrate with Facebook’s Social Network Service.
The forth service that Facebook offer is the ability for Marketers to advertise different
Users products on Facebook’s website and apps. Due to the fact that Facebook holds large
Allow millions of users to stay connected with amounts of data on their users and tracks their lifestyle, Marketers can easily channel
friends and family around the world. their products to the correct segment of the market.
Developers
Can use Facebook Platform to develop
applications (apps) and websites that combines
with Facebook’s global network of users.
Marketers
Allow Marketers to reach out to huge amounts
of Facebook users’ information that is relevant
to their company in order to enhance the value
of their products and advertisements.
Overall
Be the leading Social Network Service
provider that enables faster, easier and richer
communication, making it an essential part of
daily life.
4
SERVICES
SERVICES
Facebook Website
Facebook was launched as a Social Networking website that people can access by using their
personal computers. This method of accessing Facebook is still very popular; for example in the
Facebook Q3 2013 Quarterly Report, 315 million users access Facebook through their personal
computers each month. However, this method of accessing Facebook is in decline; this accounted
for only 26% of access, while the other 74% of users accessed Facebook by using mobile apps.
6
SERVICES
Facebook App
An App is a software application designed for mobile devices such as smart mobile phones and
tablets. This technology is extremely popular and this is the most common way that Facebook
users access the site. In December 2012, 680 million users accessed Facebook by solely using a
mobile app, and by Q3 2013, this grew to 874 million users; accounting for 74% of the way users
view Facebook.
The mobile app provides the user with the same facilities as the website, but it is delivered in a
simpler layout.
7
SERVICES
Facebook Developer Platform
The Facebook Developer Platform provides tools for developers and Application Programming
Interfaces (APIs) that allow developers to create social apps and websites that integrate with
Facebook. Over 10 million apps and websites are integrated with Facebook, Facebook Annual
Report 2012.
8
SERVICES
Facebook Ad System
Facebook’s Ad System enables businesses to send adverts to large amounts of people and aim
it towards appropriate users in order to engage with the correct target market.
9
MASLOW’S HIERACHY OF NEEDS
Being a Social Networking Service, Facebook meets a number of social needs; these are identified
in the Maslow’s Hierarchy of Needs diagram below.
10
PRODUCT MIX
Augmented
Product
Free Age
Access Restriction
Actual Product
Chat Logo
Computer
Access
11
MARKETING MIX
Product Price
Their products are social The social networking website
networking website, mobile and app are free for users. The
devices app, developers platform marketers pay according to how
and advertising system Their products many times their adverts are viewed.
are social networking website, mobile The developers pay 30% of the
devices app, developers platform revenue they make when their
and advertising system users make a purchase
Marketing
Mix
Place Promotion
Available all over the world, Facebook has gone viral and word of
anywhere with an Internet connection. mouth is its main form of promotion.
Can visit the website by using a Current users invite their friends to
personal computer, or by using join Facebook. They also market
mobile devices such as tablets their advertising and developers
and mobile devices. services by hosting events and
conferences for marketers
and developers
12
PRODUCT LIFE CYCLE
Facebook is now at its maturity stage. According to Facebook’s 2012 annual report its rate of
growth is now slowing down and it’s expected to decline in the future. For example its revenue
grew 154% from 2009 to 2010, 88% between 2010-2011, and 37% between 2011–2012.
It is trying to diversify because its competitors are becoming more aggressive and gaining a large
segment of the market.
13
COMPETITOR
ANALYSIS
COMPETITOR ANALYSIS
Potential Entrants Industry Competitors
Path is a social networking app for mobile phones Facebook’s main Social Networking Site competitors are Twitter, LinkedIn, Google+
only. Users can share photos and message up Pinterest, Tumblr. They are in direct competition with Facebook but at the moment
to 150 contacts. Launched in November 2010 Facebook still have the highest amount of users.
it is relatively new to the market and with 20
million registers users, it doesn’t pose a threat Below are the Top 6 Social Networking sites and the number of monthly active users
to Facebook just yet, however social mobile they received in quarter 4, 2011.
apps is a rapidly growing market and it offers a
different user experience for customers.
Substitutes
When it comes to social mobile apps, facebook
is not the most popular; apps that do one thing,
e.g. messaging, are performing well. They
provide good substitutes for Facebook as they
are easier to navigate, however their user Monthly Active Users
numbers are still not as high as Facebook.
140.5
4. Viber - free calls, text messaging, photo
800
250
200
150
125
and location sharing done over an
internet connection. Social Networking Site
15
SWOT ANALYSIS
S TRENGTHS
- Globally recognised brand
W EAKNESSES
- Lack of security; there have been
numerous cases of users’ profiles being
- They had 1.06 billion monthly users in hacked into.
2012, a 25% increase from 2011
- They are involved in various lawsuits,
- They generate substantial revenue from claims, and investigations
advertising and fees from developers.
- Fake accounts can be easily made,
- Trading on the NASDAQ since May 2012, allowing people to hide their true identity.
and on the Fortune 500 list
- Some children are subjected to Facebook
- They have their own data centres bullying
O PPORTUNITIES
- There is a huge increase in the use of
T HREATS
- Virus, Malware, hacking, Phishing attacks
mobile apps - Competitors such as Twitter, LinkedIn
- They have filed various applications to and Google+
protect their Intellectual Property in USA - New apps are continuously being brought
and abroad, and they currently hold a into the market each month.
number of patents - Facebook has been available for almost
- They collect a lot of data about customers 10 years so they have to work hard to
and user behaviours worldwide, which keep users engaged otherwise the
can be used to generate revenue number of users may start to decline
16
PEST ANALYSIS
P
Political
Even though Facebook has to legally protect users data the government still has certain rights over the data and
often use Facebook as a tool to spy on specific users. Between January and June 2013 the US Law enforcement
agency requested information about 20,000 users, of which Facebook honored 79% of these requests. Under
the Foreign Intelligence Surveillance Act and the Patriot Act the US National Security Agency are permitted to
gain access to this information.
E
Economic
There is a recession all over the world and some of the most powerful countries are still in deficit. This has a
huge effect on businesses as it causes interest rates and inflation rates to increase. Many companies are cutting
back on their expenses; marketing budgets are usually the first to be cut. This will affect Facebook because they
make a substantial amount of revenue from fees made from advertisements. This can result in a large reduction
in their revenue.
S
Social
Facebook is used around the world, however majority of their users are in the Western world. For example, in
September 2012 they had 243.3 millions users in Europe where as in Africa they had 48.3 million users. This is
due to the fact that Facebook is delivered over the Internet and a significantly low amount of people has access
to the Internet in third world countries in comparison to the western world. Having personal computers, mobile
phones and tablets are seen to be luxury items in the third world. This potentially reduces Facebook’s income.
T
Technological
Facebook is facing huge competition from newer social networking services such as twitter. They have to be
ahead of the competition in order to stay relevant and be a strong competitor. To do this they have to invest large
amounts in research and development to be innovative in a rapidly growing market.
17
BARRIERS TO ENTRY
Product Differentiation Capital Requirements Access Distribution Channels
- The brand makes use of a professional blue - They have to invest a lot of money in innovation Facebook is accessible to majority of its users
colour and has a clean user-friendly interface. and technology to develop new ideas in order in Asia, Europe and America and gradually
It is also free to use, in comparison to some to respond to customer demand and compete penetrating the African market. It started initially
social networking app like Whatsapp. in the market. using an internet based website, but overtime it
has developed an app for mobile devices like
- It has an integrated communication strategy, - When demand for Facebook grew they began smart phone and tablet so users can access
which combines chatting and messaging generating more capital through floating shares their Facebook on a go in any part of the world,
facilities, picture and video upload, gaming, on the stock market and are making more profit provided they have access to Wi-Fi or internet
status updates, and searching for friends. All compared to other social networking sites. access. .
these features are embedded in Facebook to
compete with other popular sites and apps like - As a well-established and trusted brand
Twitter, Youtube, Whatsapp and BBM. Facebook is now at its maturity stage and needs
less investment on advertising campaign.
18
CUSTOMER
ANALYSIS
CUSTOMER ANALYSIS
Facebook Worldwide
Facebook is the world’s most popular social networking site; With 1155 million active monthly
users in Q2 2013 . 219 million monthly active users access Facebook solely through their mobile
phone app
( Facebook quarterly earnings Report Q2 2013)
The graph below shows how their montly active users are distributed all over the world:
20
CUSTOMER ANALYSIS
Customer Segmentation
The graphs below show how Facebook’s users are segmented:
21
PERSONAS
The Young Student
Ripa Patel
The Over 45
Alecia Baker
The contrast
of the white
lettering on a blue
background it eye
catching and
memorable
Registered
Typography is bold Distinctive Blue trademark The logo above is a shortened form of
and white, which stands colour is professional, the main logo. The same font is used but
out well from the blue intellectual, trustworthy features only an ‘f’ for ‘Facebook’, on the
background and calm blue background for consistency. This
simpler form of the logo is commonly
used; it is used on the Facebook app and
Blue used in professional industries such as academic schools and universities, other websites.
medical industry and the Information technology industry
Other brand logos that use blue and white colour choice
24
FACEBOOK DESIGN
Registration/Log In Page Blue & White
colour scheme ties in with
brand logo
Simple graphic to
emphasise message
of people connecting New Users
together can register
27
DESIGN INVESTMENT
According to the Facebook Annual Report 2012, Facebook invests ‘significant amounts’ into
product development, personalisation technologies and mobile technologies. They have an
in-house team of User Interface designers and engineers, and highly skilled computer scientists
that help to help design new products and develop the existing products. They invest in researching
and developing new techniques and technologies that can improve the user experience.
Each year the amount of money they invest in research and development increases. In 2010 they
invested $144 million, in 2011 they invested $388 million, and in 2012 they invested $1.4 billion.
Website
28
CONCLUSION
CONCLUSION
Facebook is currently the most popular Social Networking Site. It has grown exponentially from
a small university wide website to a market leading Social Networking Site worldwide. With over
1 billion monthly active users in quarter 2 of 2012, and over $1.8 billion revenue in quarter 3 of
2013, Facebook is at the maturity stage of its life cycle.
Design is a key factor in their success as this has allowed them to continually provide an engaging
user interface and user experience for their website and mobile devices app. With the rapid growth
of technology, they have to continue to make huge investments into research and development
so that they can continue to design innovative product features that attract and engage the users.
This will be increasingly difficult as time goes on because the number of competitors in the social
networking industry is rapidly growing, and Facebook has been around for almost ten years.
Customers might get bored and move on to the next trend, so they have to work hard continue to
innovate and retain their customer in order to stay at the top of the market.
Overall, Facebook is a successful company with a strong and memorable brand identity. Their
emphasis on design and research and development has helped to make them successful so far.
Having a developer’s platform and advertising tool has been hugely beneficial as this is where
they make majority of their profit from. Their mobile app is also very popular and I will recommend
they continue to invest in designing mobile technology, advertising technology and technology for
the developers.
30
REFERENCES
31
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