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Marketing Strategy Analysis: A Case Of Facebook Inc Add in library

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1. what marketing strategy or strategies for facebook if it wishes to remain a sucessful organisation throughout the next decade?

2. what marketing options can you describe for facebook if it wishes to remain a successful organisation throughout the next decade?





From the point of view of business, marketing strategy or strategic marketing is the goals and objectives in order to increase sales volume and acquire sustainability for long term. According to Ferrell and Hartline (2014), proper marketing strategy related to business allows organisation in improving the sales and growth of business in future along with attain competitive advantage.

This report firmly focuses on describing the strategic marketing for Facebook Inc. and analysis of current marketing strategy with the help of theories and models. However, this assignment focus on providing strategic marketing options that helps in moving forward to Facebook Inc.

A. Overview of Facebook Inc

Facebook was first developed by Mark Zuckerberg in the month of February, 2004. Headquarter of Facebook Inc. in the Menlo Park in California. Facebook is the largest social networking media in this world. Market review of 2014 demonstrated that, currently more than 2 billion people use Facebook. Facebook Inc provides different software development tools and programming application to the developers in terms of better interface for the end user in web applications and mobile applications.

Facebook Inc has one e-commerce website ( as well as application for Smartphone such as Android, IOS, Symbian, etc. Both the website and application of mobile allows users in connecting them with their friend worldwide. Moreover, website of Facebook Inc allows users in sharing own thought, photos, tag photos to friend, request for friendship not on locally but also internationally. In order to message faster, developers of Facebook Inc developed Facebook Messenger that available for Instagram, Android and IOS. Walker and

Mullins (2014) stated that messenger of Facebook allows people in transferring media such as music, photos, videos more than 20 percent faster rather than the chat box in mobile apps or website of Facebook. Apart from that, in order to large the business and long term viability, Facebook Inc makes strategic partnership with the AXA Group. This strategic partnership helped in developing the commercial collaboration and marketing in digital as well as mobile sphere market.


B. Marketing Analysis

I. Nature of Facebook Marketing Strategies since it began

Identification of Facebook Marketing Strategies: Advertisers and users of Facebook are the potential customer of Facebook Inc. However, after 2010 the company faces many challenges in the class action of lawsuit. The lawsuit of the company violated the privacy of their users especially the advertiser of different companies. According to the users of Facebook, it has been identified that other people are able to scan the private message that was sent between the two people via chat box (Ortega and García-Villaverde, 2011). This complaint violated the privacy of users. It decreased customer base for Facebook Inc. However, in 2013, the company introduced new privacy policy in their social networking website named Electronic Communication Privacy Act. The new privacy policy of Facebook Inc ruled out the old terms and develops new term by investigating the external problems especially the privacy problems. According to the Dutch privacy regulator CBP, the new policy implement in 2015. This privacy allows the company for use if photos for commercial purpose. This policy allows the users in sharing information to others with full authentication of the other parties. Apart from that, Facebook Inc facilitates their users in sharing current location information with the other parties.

Resource Based View of Facebook Inc

Resource: The main resource of Facebook Inc is the database of 845 million users throughout the world. However, the competitors of Facebook Inc such as Twitter, Google Plus, LinkedIn and many more unable to acquire half of Facebook customer base. Therefore, it indicates that, large customer database of Facebook is the potential and important resource. In order to attain large database of customer, Facebook developer introduced the Like button in merchant websites hat embedded to Facebook. Biggadike (2010) argued that when the users visit Facebook site and like the Webpage of Facebook or the services of Facebook, it build the rare utility of user preference and service or product acceptance.

However, it has been identified that, Google Plus introduce same marketing strategy in terms of enlarging their customer database. Apart from that, Chesbrough (2009) opined that since the starting of business in 20045, Facebook Inc continuously developed or introduced new service or add data as the comment in other websites. This makes able to increase customer. Facebook credentials provide service to user based on proper authentication such as unique user id and password. The new innovation of Facebook Inc is e-payment via the portal of Facebook Inc ( Advertiser can provides their ads through the website of Facebook easily rather than other social media site such as Google Plus, LinkedIn, Twitter, etc. Hall (2011) acknowledged that huge customer database resource make the very high security to Facebook from the viewpoint of competition.

Capabilities: Developers of Facebook work hard for the company and developed new products for the way of communication. It builds competitive advantage in social media networking area. For example, Facebook introduced timeline function, application for mobile phone as well as palmtop, messenger only for send message not only text but also music, videos. Apart from that, Developer of Facebook recently designs calling function in their messenger app. In the website of Facebook, developer implement S-1 filling function that protect the website from attackers.


Porter Five Force Analysis for Facebook Inc

Bargaining Power of Customer: Users and Advertisers are the potential customer of Facebook. Majority of customer of Facebook demands for privacy of their profile. S-1 filling privacy strategy implementation allowed Facebook in maintaining securities and exchange in the IPO (Initial Public Offer) (Li and Calantone, 2011). This strategy increases 69 percent customer and 18 percent revenue for Facebook Inc.

Bargaining Power of Suppliers: S-1 filling strategy reduces the various factors from their suppliers such as losing of user experience in location based and inability in entering new countries. For example, Facebook Inc currently developed their organisation in India. Though, due to lack of privacy majority of user shifted to Google Plus services from Facebook.

Threats from New Entrants: Facebook faces challenges from the new entrants site Path. The market review of 2012 demonstrated that more than 2 million users shifted to Path from Facebook. Path offer low threat and multi user experience. However, Path has limited access from Android and IOS.

Threats of Substitute Products: Facebook faced major challenges from the different messaging substitute products such as WhatsApp, iMessage, Hike, WeChat, Line etc. This kind of messaging apps allows user in internet based messaging from their phonebook (Morris et al. 2011). Apart from that Hangout function of Google plus attract more recently to user based on multi function such as text messaging, video calling, over computer as well as mobile.

Competitive Rivalry: Google Plus, Twitter, LinkedIn, WhatsApp gives strengthening competition to Facebook in social media environment. According to Mark Zuckerberg, Facebook lose 37 percent revenue growth due to entrance of new competitors in social media industry.


II. Strategic Marketing Options for Facebook moving forward

In order to maintain the existing customer and attract new customer, Facebook Inc has to design their marketing strategy based on the following five methods –

Strategic Marketing Options for Facebook

Segmentation: Segmentation strategy will be the better option in satisfying customer maintain customer database accurately. Facebook Inc has to segment their market based on demographics. It helps in testing the consumer preference in a particular demographic area and providing the service based on demand, Facebook satisfy their existing customer and attract new customers.

Optimization of Ads: Facebook has to give much time in testing the methods, tweaking as well as for changing the functions in their commercial websites as well as in the application. Analysing the ads and providing these ads into the demographic area based on preference Facebook can attract more attention of their customers. In order to optimizing the ads, Facebook has to maintain some criteria such as –



·         Use of accurate representation with image for drawing outline of products and service.

·         Always show the appropriate image with truthiness.

·         Use of appropriate punctuation.


·         Use proper sentence case for ads line never capitalized or lower case.

·         For better work gives personal touch.

Campaigns Scheduling:
Facebook has to setup their campaigning based on day or week or month because time is the bug matter for people’s life. It will help in creating biggest difference to Facebook Inc.

Budget Management: Facebook has to collaborate with their advertiser for bid or buy per click during optimization of ads. This type of official statement for the maximum bid will allows Facebook in managing their budget in other purpose because it the free access site.

Result Tracking: Facebook has to measure the result with the Return on Investment method and tracking the result. The solution of conversion tracking service helps in recording information of each sale.



This study described the strategic marketing of Facebook Inc in social media industry. Facebook Inc introduced new app named Facebook Group that allows people in creating group and sharing the videos, photos, own idea within the wall of that particular group. The group function at the top of application that allows users in sharing information with more faster and easily. However, user of Face3book also able to track notification based on their personalization. For example, if they want to see notification of that particular group then turn of the function whereas if they do not want to see notification then Facebook facilitate turn off function to avoid notification.


Reference List

Biggadike, E. R. (2010) "The contributions of marketing to strategic management," Academy of Management Review, 6, 621-632

Chesbrough, H. W. (2009) “Business model innovation: It’s not just about technology anymore.”  Strategy and Leadership, 35: 12-17.

Ferrell, O. and Hartline, M. (2014). Marketing strategy. Mason, OH: South-Western/Cengage Learning.

Hall, R. (2011) "The strategic analysis of intangible resources" Strategic Management Journal, 13, 135-144

Li, T. and Calantone, R. J. (2011) “The impact of market knowledge competence on new product advantage: Conceptualization and empirical examination,” Journal of Marketing, 62, 13–29.

Morris, M., Schindehutte, M. and Allen, J. (2011) “The entrepreneur’s business model: Toward a unified perspective.” Journal of Business Research, 58: 726-735.

Ortega, M. and García-Villaverde, P. (2011) “Pioneer orientation and new product performance of the firm: Internal contingency factors,” Journal of Management and Organization, 17 (4), 474-497

Walker, O. and Mullins, J. (2014). Marketing strategy. New York: McGraw-Hill Irwin.


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