Investigating the Impact of “Price” As a Positioning Factor in the UK Supermarket Industry: A Study of Tesco
Dissertation Topic: Price Positioning in the UK Supermarket Industry. Tesco is currently the market leader in the UK retail industry (and has been since 1995), since the launch of the Tesco Clubcard. It has been claimed that Tesco has created customer loyalty by introducing the Clubcard. However, it is possible that the Clubcard does not necessarily create loyalty; rather, it helps the company to understand and predict customer behaviour, and to an extent, influence customer behaviour through various price deals and offers.
It has been established that customer loyalty can certainly improve the probability that an organisation’s profits will increase. In the case of Tesco, loyalty has not actually been created although the company has established a way of predicting and influencing consumer behaviour (to an extent) through the loyalty card. Since customer satisfaction is one of the key ingredients that contributes towards customer loyalty, it can be said that at the moment, Waitrose, Aldi, and Lidl are at a better position to create customer loyalty, for whatever reasons.
Customers generally do not differentiate the companies based on the prices they offer, rather, they differentiate the products based on the perceived quality. The problem is that companies such as Tesco, Morrisons, and ASDA have similar price structures, and as such, pricing may not be the point of difference for the consumers. Tesco’s positioning on the basis of price (every little helps) may not help the company to gain a significant advantage over the competitors, although it may contribute to maintaining this advantage.
Based on the assumption that pricing is not the factor by which consumers differentiate companies, the following research objectives have been composed:
To analyse the extent to which pricing is a differentiating factor (as seen by the customer) that influences consumer buying behaviour in the supermarket industry
To identify whether price positioning (as seen by the customer) is a viable option for supermarkets
1 – Introduction
Statement of the Problem
2 – Research Methodology
The Research Philosophy
Position on Philosophy
Data Collection Techniques
Sampling and Population
Focus Group Interviews
Scope and Limitations
Gaining Access and Research Ethics
3 – Literature Review
Price Image Dimensions
Price as a Market Cue
Ego-involvement and Price
Price and Retail Patronage
Price Premiums and Brand Equity
Role of Price in Strategic Positioning
Expectation Theory in Consumer Behaviour
Henry Assael Model
4 – Discussion and Analysis
Qualitative Research Report and Analysis
Quantitative Research Report and Analysis
Discussion on the Findings
Is price a differentiator in the supermarket industry?
Is the low end price position viable for retailers?
I hope you enjoyed reading this post on the Impact of “Price” As a Positioning Factor and how it affects the UK Supermarket Industry. There are many other titles available in the marketing dissertation collection that should be of interest to marketing students and practitioners. There are many dissertation titles that relate to other aspects of marketing such as branding, corporate advertising, marketing strategy and consumerism to name a few. I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
The research and analysis was conducted on the topic of marketing strategy for Minister of Economy, Trade and Industry to attract SME’s in order to bring FDI in Japan. Five objectives were designed in order to get vital information and understand the importance of foreign direct investment and the effect of different marketing strategies on foreign investment. The objectives were related with government policies, METI’s marketing strategies for acquiring and motivation of foreign investment, different promotion strategies used by METI and recommendations for influence of potential investors towards investment. In this regards author have collected important information and data regarding foreign direct investment.
Mostly respondents’ age was between 35 to 45 years which indicate that they were young and have strong knowledge about foreign direct investment regarding issues and different strategies that need to be used for acquiring of investment in the country. There was 5-likert questionnaire which comprised on 21 questions and 6 questions for interview have designed. Total 57 respondents’ responses on 5-likert questionnaire and 11 respondents’ responses through interview were collected. Mostly respondents stated that foreign investment plays an important role if government should take initiatives towards motivation and with the help of marketing strategies and also provide some incentives for foreign investors. In this regards, METI is playing an important role for acquiring and motivating of foreign investors in order to get more satisfaction and growth in country’s economy. In which METI have introduce some promotion activities and legal actions such as social medial, technological interaction, intellectual property protections and other aspects that influence the foreign investors to invest more and more.
To identify problems involved in hampering FDI in Japan
To study the relationship between the foreign investors and METI
To perform a validation for current marketing strategy of METI and propose a new framework for the marketing strategy depending upon the research
To devise and suggest appropriate strategies for Japan that are based on the use of modern marketing tools and techniques
To know how Social Media Marketing, E-Marketing, and internet promotional tools specifically can be brought to use to develop a positive repute for investing in Japan
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When it comes to automobiles, one of the most recognized brands out there is General Motors. The American multinational corporation based in Detroit, Michigan designs, manufactures and sells vehicles as well as automotive parts.
With a history that dates back to 1908, General Motors has had a critical role in both the American as well as global auto industry. Some of General Motors well-known brands presently in the market include Buick, Cadillac, Chevrolet and General Motors. The company builds cars and trucks through its other units: General Motors Daewoo, Isuzu, Opel, Vauxhall and Holden units.
The present General Motors that we know today is a result of a company split following a government backed Chapter 11 bankruptcy reorganization. In November 2010, General Motors had its initial public offering, which was one of the highest ever recorded (General Motors, 2014).
Marketing Strategy and Environmental Scanning
The core of any effective business plan is a marketing strategy that will outline how a business will set out to deliver its products to the satisfaction of its customers. Success requires effective marketing in order to remain competitive in today’s global market.
Organizations, regardless of its size must be able to identify and understand external influences to be able to adapt to the present realities that will ensure the company’s survival and success (Albright, 2004: 39).
Plans are based on forecasts which in turn are based on assumptions about what is to be. Scanning the horizon of possibilities is a prudent measure that companies take in order to identify new developments that will test past assumptions or provide insight on new perspectives to possible future threats or opportunities (Gordon & Glen).
A vital tool that will aid companies to focus on strategic and tactical plans is environmental scanning. Environmental scanning is the internal communication of external information about issues that may potentially influence an organization’s decision-making process. It helps organizations flush out external threats thus enabling them to maneuver appropriately (Albright, 2004: 40).
Environmental scanning may act as an early warning system that will detect and warn companies about important changes and “danger zones” allowing for plans to be altered as necessary. Futurists do environmental scanning in one way or another, all with the ultimate goal to distinguish what is constant, what changes, and what constantly changes. The basic goal of a scanning system is simply to find early indications of possibly important future developments to gain as much lead-time as possible (Gordon & Glen).
Stoner and Freeman (in Costa & Teare, 2000: 156) defined strategic planning as “the development of long range plans for the effective management of environmental opportunities and threats in the light of corporate strengths and weaknesses.” It is therefore accurate that through scanning or the so-called “realized” approach identification and management of environmental opportunities as well as threats can be helpful in the fundamental management of competitive advantages of companies.
In addition to this, environmental scanning can be classified under different areas including social, economic, technological, and political/regulatory. An analysis of these different areas will give an organization a comprehensive assessment regarding the organization (Ginter & Duncan, 1990: 91).
Previous experience on the environmental scanning process has revealed that too much priority is given on the short term which has led to a limited understanding of information. This has led to a basic goal of extracting information, customer service, and the like which ignores the other factors present in the general environment (Costa & Teare, 2000: 157).
The General Motors Way
In analyzing the advantages of General Motors as an organization, there have emerged a number of key strengths including its industry knowledge. With its long history in the automotive field, General Motors has an expertise many can replicate. Time and time again it has been a proven industry leader. In addition to this, technology and innovation has critically improved the company’s products and services and as such have provided customers with key technological advancements that are not only necessary but highly demanded.
Analysis of Strategies, Strengths and Limitations
Recognizing the abovementioned realities, there are still a number of areas of improvement that General Motors needs to focus on including its human resource inefficiency and mediocre scientific achievements, to name a few.
From a marketing standpoint, these situations are potential marketing threats. These internal and external issues hurt the image of General Motors as a company.
In the recent years, General Motors has undergone a number of changes, including its marketing strategy. With a new vision and communications platform called “Find New Roads,” General Motors aims to be the touchstone for the brand as it develops new products and technologies for sale in more than 140 markets (Evans, 2013).
With regards to General Motors efforts, a well done environmental scan has enabled it to identify the realities of the industry and understand its key competition and potential difficulties in meeting the challenge of competitors (Albright, 2004: 40). In this key aspect, General Motors has been able to realign its focus and capitalize on the opportunities that can be found in Asia, specifically China.
In reconsidering its emerging-market strategy, General Motors has been working towards positioning itself for emerging markets of its Chinese partner SAIC Motor Corp (Shirouzu, 2013).
Globalization is a market reality; in order to improve upon the new direction of General Motors to move towards Asia, strategists need to take its efforts a step further and stress test their scanning models. Geographical expansion brings about different considerations. It’s important that through analysis, General Motors can determine the circumstances of desirability as well as risk and restrictions (Beinhocker et al, 2009: 56).
By delving into developing markets, General Motors will be able to think about producing a lower end range of vehicles that consumers from developing markets would be keener on purchasing. An environmental scan would show that emerging markets are not as badly hit by financial setbacks and thus still possess a higher growth rate which equates to an increasing buying power. This would mean while other regions would have slower auto sales, areas in Asia could be a strong sales point.
Scanning would also bring about competitive intelligence as a result of an analysis of competitors and competitive conditions in particular industries or regions. This would enable managers to make informed decisions about marketing, R&D, as well as long-term tactical business strategies. It enables managers to cast a wider net and analyze information about the various sectors of its external environment that will support forward planning (Choo, 1999).
In the case of private transportation sales, a market like China has a high demand for automobiles and it can be safe to say that there will not be any environmental emission deals coming up soon. This can show this as a great potential for profit given the smaller investment, rapid production and low initial costs.
The process looked into identification of emerging issues and trends as well as situations and drawbacks that may affect its success and future. This new strategy opens a lot of opportunity for rapid sales (Shirouzu, 2013).
This example as well as others shows that General Motors has made efforts to stay ahead of the game but this is not enough. General Motors marketing strategies have a need for more improvement. It’s been noted that while their global presence cannot be underestimated, their focus and primary marketing strategies are centered on a limited number of countries. Each country requires its own marketing approach given each economy and marketing conditions vary from each other. A much more tailored, innovative and globally applicable strategy must be applied to achieve multiple targets on a larger scale.
As an example, consider nature, in the last few years, the market has seen an increase in the demand for alternative fuel technologies. Environmental scanning would flag this as rising market trend that General Motors needs to look into. Research and development must be supported to work towards being able to address this future pattern. The company must look towards tweaking its image to make it more concerned for the environment to achieve credibility in this area.
However, the company is already lagging behind its competitors, specifically Toyota. Although General Motors has been producing more efficient products, it is not rising to the challenge that its rivals have been able to in the last few years.
As mentioned earlier, there are various aspects that a scan can look into, be it social, economic, technological and the like. For businesses like General Motors, given its size and holdings, focus tends to be on the economic but such a one-sided scan can lead to misrepresentation or error in analysis leading to a gap between the goal and the outcome which puts an organization in jeopardy. It is imperative scans be as holistic as possible. This is related to the earlier recommendation on the unique marketing strategies per region. A wider analysis of current and potential change and the assessment of the impact of changes on the organization (Ginter & Duncan, 1990: 91)
In reviewing the marketing strategies of General Motors as discussed in their annual reports, their efforts bulk in the areas of publicity, direct marketing, sales promotion as well as traditional advertising.
For General Motors to continue on its path to growth and success, its marketing strategy must be on point. A vital component of its marketing system should include a comprehensive environmental scanning process.
The process should emphasize market research that focuses on specific target markets with strategic identification and unique approaches per market. There should be a parallel unique point of sale concept per targeted area that takes into consideration not only competition and economics but a holistic review of the various factors affecting market conditions.
Relatedly, strategic expansion will require optimal strategies form increasing sales. Realities of this shift in economic power, especially in emerging markets, should focus on affordability and practicality with a balance of quality and optional luxuries.
The research has revealed that General Motors has taken steps in the right direction but fail to grasp the full extent of the shifting patters in the global consumer market.
General Motors (2014) About Our Company, [Online]
Evans, H. (2013) General Motors Develops New Global Marketing Strategy, [Online]
Albright, K.S. (2004), Environmental scanning: radar for success, Information Management Journal, May-June, p.38-45.
Shirouzu, N. (2013) ‘General Motors rethinks emerging market strategy, hedges on China partner’, Reuters, 27 Jan.
Costa, J. and Teare, R. (2000) ‘Developing an environmental scanning process in the hotel sector’, International Journal of Contemporary Hospitality Management, Vol. 12, No. 3, p.156-169
Beinhocker, E., Davis, I and Mendonca, L. (2009) ‘The 10 trends you have to watch’, Harvard Business Review, 87, 7/8, pp. 55-60, Business Source Premier, EBSCO Host,
Ginter, P.M. and Duncan, W.J. (1990) ‘Macroenvironmental analysis for strategic management’, Long Range Planning, Vol. 23, No. 6, p.91-100
Gordon, T. J., and Glenn, J. C., ‘Environmental Scanning’, AC/UNU Millenium Project, Ver 2, p. 1-33.
Choo, C. W., ‘(1999) ‘The Art of Scanning the Environment’, Bulletin of the American Society for Information Science, vol. 25, No. 3.
Strategic marketing entails that an organization utilizes its resources in adapting with the changes in the marketing environment in which it operates. For an organization to gain competitive advantage and curve a niche over its rivals it need to cultivate and implement a niche marketing strategy that would make it capture consumers to its products in the mist of other competitive goods. In an ever increasing competitive global business arena, the need to strategies and be in tune with current trends in an industry where an organization operates, this is very germane to the success level the organization would attain. Strategic marketing entails that the organization carries out an effective planning that would coordinate the whole marketing operates of the organization and make it adapt to its environment through effective utilization of available resources. Thus, the different marketing strategies; pricing strategy, distributive strategy, promotional strategy, sales strategy, product creation and branding strategy, among others, these are synchronize in meeting the marketing objectives of the organization. The strategic marketing and management pattern goes to reflect the structure of the organization. One strategic marketing pattern adopted in contemporary times is niche marketing.
Niche Marketing Concept
Niche marketing is a marketing concept where a producer tries to differentiate his/her product from what is obtainable from the industry in which it operates. Niche marketing cuts across every industries and it is operational when an organization exhibit a product differentiation strategy, in order to make its product unique in quality, branding, taste, size and shapes. In this regards, Fuduric, et al (2005, pg 3) defines niche marketing as “a marketing scheme designed to distinguish a product from its competition, in regards to products elements such as taste or freshness, inter-alia. This is done with the motive to increase consumer product awareness and demand”.
Producers of goods use niche marketing to catch those opportunities that exist in the industries they operate, as the uniqueness and quality of the niche catcher’s product would be attractive to consumers. The product uniqueness increases consumers’ awareness of the product. For example in the agricultural industry, such professionals that grows cash crops or engage in fish farming have ways of branding their product in such as a way that would differentiate their product from others engaging in the same product production. Examples of such thriving niche marketing in the agriculture industry include the producer of certified Angus beef and Mississippi catfish.
As earlier stated niche marketing is applicable to different industries, be it in agriculture, confectionaries, electronic, automobiles, fashion, among others. Where there exist competition for products in an industry, niche marketing is applicable for gaining market opportunity, and curve greater advantage over market competitors.
Niche marketing, also deals with product value build up, alongside with product differentiation. The producer using niche marketing should be ready to add more value to the organization product in order to give it that unique quality that attracts consumers to it. Branding and labelling plays significant role in niche marketing.
The branding of a product goes a long to determine the first impression that consumers would form concerning such product. Thus, the appeal attached to a product is contributed through branding and the product’s quality.
In creating niche market, the producer, apart from laying emphases on the product’s quality, as demanded by consumers, need to adopt methods that would enhance the product’s production, and structure channel marketing that would give the product its regional identity. When this is done, the advantages associated with niche marketing would be attained. Those advantages associated with niche marketing include the following:
Niche marketing gives uniqueness associated with a product, thus differentiating it to enable producers earn more;
It creates avenue for product rearrangement in a food chain structure, in order to discover more appropriate ways of product distribution to bypass intermediaries;
Niche marketing also, intensifies the communication bond between the producer and consumers of the products. Those salient qualities the consumers desire would be easily communicated to the producer as a way of improving the quality of the product;
By satisfying the consumer through niche marketing, the producer stands to gain greater market share in the industry it operates.
In this era where consumers are becoming conscious to the effect products have on the environment, their choice and taste for products graves fro those with little or no harmful effect to the environment. Many consumers of fresh fruits and vegetables, seafood, among others, would prefer those produce with less chemical hazard causing substance. For instance, many consumer do not want organic products, they prefer those grown naturally. With this level of taste and awareness, a producer can make his product with in line with those tastes and wants the consumers’ desires. When this is done the process of niche marketing is enhanced.
A successive niche marketing strategy should be able to adequately utilize the organization’s resources in adapting to the business environment in which it operates. Here, through the strategic moves the organization is able to increase the sales level for the organization and customer patronage. In doing this, the organization’s strategy should be centred round the customers through its marketing mix. Here, strategizing should take acknowledgement of the product, place (distribution), the price, and promotional strategies in building a competitive base for the organization, through customer’s satisfaction. In this view, Oden (1997:3) argues that “many of today’s most successful organizations continue to survive because many years ago they offered the right product at the right time. Most product, market, and process venture decisions of the past were made without the benefit of strategic thinking or planning. However, present-day managers increasingly recognize that venture decisions must be made in the context of a venture strategy. As they find themselves in ever more complex and turbulent environments, their past internally oriented, reactive approach to decision making is giving way to an externally oriented proactive approach that requires more analysis”. Communication plays a significant role in contemporary marketing strategy, even more in an organization that adopts niche marketing strategy. Thus, for an organization to put up a good niche marketing strategy it must always communicate with consumer to know those changes they desire in its products, so as to keep them attracted to the product continually.
How Innocent Drinks Organization Has Adopted Niche Marketing In Its Product Enhancement
Innocent Drinks organization started operation in the production of drinks since 1998. The name ‘Innocent’ for the organization is derived to symbolize the organization’s products that are naturally made and unadulterated. “We call them innocent because our drinks are always completely pure, fresh, and unadulterated. Anything you ever find in an innocent bottle will always be 100% natural and delicious -and if it isn’t, get on the banana phone and make us beg for forgiveness” (Innocent Drinks, 2006). Innocent drinks organization involve in the production of drinks derived from its cow milk and fruit drinks. The organization has variety of brands of drinks, which are produced to give delight to its customers. The different range of the organization’s product range from smoothies; with brand for children and other varieties; superfoods; a natural smoothies produced for specific purpose such as when one feels tender; big carton smoothies for home keep and refrigeration. There is also thickies; probiotic yoghurt, and juicy waters containing juice and spring water all mixed up to make customers feel wonderful and satisfy.
Innocent Drinks has utilized the process of niche marketing in sustaining itself in the drink industry where it operates in European countries, and the United States.
The products of Innocent organization are produced in ways that consumers get the natural taste of the drinks they consume. Here, pure, fresh, and unadulterated drinks are produced in their quality form for customer’s satisfaction. The products are 100% pure of fruits or milk according to the different brands. Thus, customers are guaranteed that they are consuming hygienic, natural, and unadulterated drinks. Furthermore, the Innocent Drinks organization has different varieties of assorted smoothies, made of fruits and milk. The different brands of the organization are made to satisfy customers taste both young and old. The prices of the Innocent drinks are moderate and customer friendly. The drinks come in small bottled pack, which costs are affordable by all and sundry. Given the quality and pure unadulterated drinks consumers get from the Innocent drinks product range, they get the worth for their money. The strategy embarked by the Innocent organization where it recycle its products containers and bottles, this goes to reduce the cost of production of the organization’s product, hence, the price set for its products are low. “We are moving away from virgin finite materials to renewable materials, such as recycled plastic and plastic alternatives such as bottles made out of corn starch – a material known as Polylactic. To date, we have managed to get our plastic smoothie bottles to 50% recycled plastic (we’re working on the rest) and we have a corn starch, commercially compostable bottle due to launch in September 2006” (Innocent Drinks, 2006).
The distribution of the organization’s product is carried out through direct sales of the organization’s products to consumers by the aid of the organization’s cow van. The cow van helps to carry the organization’s product every nooks and crannies in the United Kingdom where it operates.
The promotion of the organization’s products is done through the strong brand it has built for itself. The cow van is easily recognized, and this serves as a medium of promoting the organization’s products as the vans engages in the distribution and sales of the organization varieties of drinks. The well-structured websites of the organization is another medium in which the organization promotes its ranges of products to a wider market in the international level.
All these 4 Ps of the organization’s strategic marketing are integrated to bring about the effective increase in sales of the organization’s products. Each of the strategies for product manufacturing, pricing system, promotion and distribution all are built in an integrated pattern to bring about the effective distribution of quality product at an affordable price to customers. Moreover, satisfaction of customers taste is the overall focus of the Innocent niche marketing strategies.
Fuduric, Joseph A., et al (2005) “Marketing Wild Caught South Carolina Shrimp: Lessons Learned from Agricultural Niche Marketing Programs” pp. 3
Innocent Drinks (2006) “The Innocent Foundation Organization”
Oden, Howard W. (1997) Managing Corporate Culture, Innovation and Entrepreneurship. Westport, CT: Quorum Books pp. 51
Rahmann, G., et al (2001) “Opportunities and Barriers for Niche Marketing of Lamb in
European LFAs Based on Consumer attitudes to Product Quality” pp. 42
Marketing in the current era is believed to take a different dimension to hit its target. With the fast growing technology in the current word professional marketers are widely relying on technology to promote and advertise their goods and services. For this initiative to perform comfortably they need to ensure that engaging customer interrelation by electronic means will work effectively and deliver the best result. When using technology or online marketing sometimes it does not seem to be real to customers and internet users, and they get to prefer television marketing which might be effective to the surrounding environment. This act as a problem or difficulty in effective marketing and it will automatically lead to poor responsiveness on the organization. Some of the social network working well is face book marketing, they have handled there problems effectively when it gets to advertising measurements. For instance the click-through rate for face book marketing which has done very well over throwing placard advertisement which has dropped over time.
(R., U.M., & A., 2005) Supported that there is a study that published the part of customer overview of social network marketing; this networks grow quickly over a short time of period. In this case study, little is discovered on the behavior of online marketing to the internet users. Due to problems and difficulties capital ventures produce incorrect and insufficient facts which lend to a problem for the advertisers loose track and cannot even identify the targeted viewers.
The new research is carried out to accomplish the research on internet users approach to social networks marketing. The area of study will be Facebook. Facebook is a one of the popularly, most used and known social network used by both young and old. It is commonly used for business matters or personal matters. Facebook marketing is much different from other customary marketing. This is a service that is mostly used by start-up organization to involve the social network people. This means that Facebook marketing is still at its early age and it is a beginning dimension of marketing which is growing very fast.
However this research entailed aims and objectives, a purpose and also some of the encountered problems. The purpose of this study was to analyse Facebook marketing on how to approach it, measurements on how to appraise their efficiency and also Facebook marketing strategies. There are some challenges and problems of this study this include increasing a close view and analyse measurement of Facebook marketing strategies adapted by different organizations.
The main aim of this study is to find out what influences users on quantity of time they spend on Facebook. This was done at a view point of the kind of usage, brand and how much they are involved in advertisement. The managed result also showed that Facebook usage was on: post on timeline, fun, looking for friends and during free time. It also showed that gender and marital status contribute to the time spent on Facebook. Objectives of this study are:
To view Facebook marketing activities
To evaluate the intensity of Facebook marketing strategies
To examine the consequence of Facebook marketing activities
To charge the helpfulness of Facebook marketing measurements in terms of importance of social network sites
To find out how marketers are adapting to the advertisement changing world.
Reason for the study
Facebook was first discovered in 2004 by Mark Zuckerberg, it was confined to college students requiring users to use their email ids connected with their colleges. Facebook movement enlarged new has association and today Facebook gets 200000 memberships daily and 54 billion standard page view. Social networking sites they are no longer innovative but Facebook marketing has tried to improve and maintain its users. Facebook is a website equipped with different types of software that are needed in the internet to allow user to perform activities that can be performed on different website making it an outstanding social networking. Apart from the marketing function, Facebook marketing is also used for public communication and personal private communication like sending family pictures.
View of the study
Communication occurs where there is a sender and a receiver of a message being transmitted. Computer application is one of the ways that that is used to communicate; IT modification has developed the mode of communication making it acceptable for social work communication to be accepted. This has allowed users to acquire widespread awareness. Availability of different software that make up Facebook it is possible to use Facebook marketing instead of using other different websites to promote and advertise you product. This are things like uploading an image or a video so as customers can view all the features of the product. It has also been discovered that most of the users do not pay attention to the advertisement in there profile and this can lead to companies developing a communication direction with their clients and this is much better than social marketing (Bakker, 2003).
Social networking has affected individuals differently. The networks link connect individually online all around the word. IT development has put together the daily lives activities of individuals. Out of curiosity people have widely accepted social networking and they engage more on social networking. They send links to their friends and also write more on their profiles. Some websites have restrictions on who is to join in terms age, gender or religious and others group there members into different categories like mutual racial or gender but there are some other groups that do not carry any restrictions and anybody can join.
Competitive market structure
Social networking is based on a competitive market where they work hard for each website to increase its competitiveness advantage for each site to emerge the best then they should be creative and come up with something unique. This is done by working and coming up with new and more resolution to get hold of their clients. Marketers work on this by making simple online brand communities, this are social sites that depend on structure position of their relationship among their brand followers and they are focused; non- geological limit communities. This communities influence their customer intentions and behavior due to their good relationship. They also create an easy working environment for their customers like providing contact information. Facebook being one of the social network sites with billions of users they take advantage the relationship to market products. They are different methods used to market in Facebook like rumor marketing, dispersal of modernization, buzz marketing and viral marketing. Rumor marketing is one that is mostly used.
Social network analysis
Social network examination is quite important to search for the best technique to determine “who talks to whom” in a group of people. It is also very important to analyse a social network to understand which group suits you and also to understand the type of information that is required.
Importance of Facebook marketing
Facebook marketing has become one of the best marketing channels in the word of businesses. One of the major importance of Facebook marketing is has varied areas and also makes things appear to be more real. It can also advise and help organizations on how to get new clients. The development of Facebook marketing has helped user to rely on online communication whereby you don’t have to appear face to face. Facebook has turned out to be one of the social networks which have grown drastically in rumor marketing. In most cases rumor Facebook marketing requires a face to face appearance so as it can be more effective for buyers to buy the product. Companies that want to introduce a new product in the market mostly go for internet marketing. This is because there are several users and also rumor marketing is more effective if used on social sites. This is also cheaper than employing other classical advertising channels and also Facebook is managed by individuals and their relationship among each other helps them to communicate effectively. You should also consider the most effective and persuasive to use for good promotion. Nielsen researched and found out that 78% of 26000 Facebook users are invited by the Facebook old members. Deloitte consumer products group found out that 62% percent of clients are influenced by user appraisal to read more about products. Empirical researches inspected that new ideas are passed through interpersonal statement. In the current generation every business has have an online Facebook account this helps in targeting the young generation are also it gives everybody an opportunity to give out there views. (Bakker, 2003) defined the Facebook marketing method as that includes electric media of channel where a buyer and seller interact. These suggest that e-marketing is concerned with promoting products through technology.
Facebook marketing and business
According to researcher It was discovered that Facebook marketing has altered marketing communication in business and company. Most of the vendors use Facebook marketing to look compare and contrast products and services offered by different companies. This also helps to analyse the strength and weaknesses of the rival company. Clients also consider the security of each website. (Kozinets, 2009, pp. 252-264) Confirms that business that engage in Facebook and e-marketing grow by 46% quicker than those that use classical advertising. Online usage of marketing by companies has believed to be of an advantage over their rival companies. Facebook is the most essential social media platform in e-commerce business has large companies. For instance Ebay and Amazon are the largest e-commerce to reach its vast extensive users.
(C.M., Anthony, & E.A., 2004, pp. 90-204) investigated on possible measure that Facebook marketing can advice the development of the young and growing business to increase their sales and their profits. On the other hand (Henkin, 2006, pp. 109-483) insists that Facebook marketing can be used as an outstanding media off communication and can also assist clients to come up with what they want. (DiClemente & Hantula, 2003, p. 785) emphasized that there was truth in (Henkin, 2006) suggests that Facebook can be used by small companies to gain big numbers of people and increase their sales. Facebook creates a good customer relationship; this is by a close supervision to assess the customers’ feedback and also to monitor your rivals at a close watch. Del and Fedex Company are some are some of the companies that employ Facebook marketing to promote their products. For instance Del uses Facebook to get rid of the supply chain offer this will offer a reader a design of how straight selling has contributed to the company to be the word class firm while Fedex company concentrate on creating a simple order which directs them to the achievement of the courier organization not only in America but everywhere in the word. (C.M., Anthony, & E.A., 2004).
The development of technology has helped Facebook marketing to play other important role other than just helping in business representation or supervising in the supply chain then they can help the company to understand how they can produce their products. (Briggs & Burke, 2002). To achieve an efficient firm then Facebook can advice on it is important for firm to have self belief and also put more effort in Facebook marketing. In a number of cases Facebook marketing is believed to have achieved the best like. Big companies like Amazon, Fedex and Dell they have grown rapidly and this is made possible the individual examination of each company to ensure that face book marketing is working effectively in the companies.
To come up with effective marketing plans the organization should involve the community to get opinions on what their products should have and what is the best time to release their products this will help the organizations to have the best market plan. Advertising is one of the ways that you can involve the viewers and get their opinions. This can be done through television advertisement. In the current years Facebook advertisement is considered to be the best since the viewers can easily live there comment. (Steinfield Ellison Lampe 2008 434–445). This is essential to Facebook marketing plans.
Perceptions of advertising relevance and value
In another research it discovered that clients have a different reaction of online marketing. These reactions can be identified on the use of Facebook marketing. One of the client behaviors is seen on Facebook marketing offered as a two level arrangement showing widespread insight of Facebook marketing and the personal insight with marketing. The other effect is seen at an individual level where one is able to converse with each other regardless the distance (Alwitt & Prabhaker, 2004). Facebook has gain popularity and it is highly praised for its power to influence more and more people to use. It contains unique measures like image sending, text sending and also sending video links. It is possible and very easy for Facebook marketing affiliates to access information regarding a company when they view the multilingual profile of the business. It also helps business organization to describe more about their products in there profiles (B. & Ellison, 2007).
This may appear mostly when viewers don’t pay attention to the advertisement this can occur when people don’t pay attention to the pop ups in the internet or when people revolve to other programs on the television when there is a ads break. Others don’t even pay attention to the ads place on the newspaper. Advertising confusion may appear when there is over advertising in a well known advertising media (Palmer and Koenig Lewis 2009 pp 162-176).
Credibility can be defined as the belief or a personal thinking of something. Media and marketing credibility could be described as the perspective of the customer thinking and customer believe about media advertising. It has been discovered that online media credibility can be measured. Another research carried out discovered that internet information is not restricted. This makes online information not to be trusted since it is not restricted. Peoples mostly don’t pay attention to online pop up advertisement because they don’t trust in it.
Privacy matters in social internet sites have become one on of the problems. People don’t trust internet with their information. Some people end up exposing extremely personal information on their website which can be accessed by everybody.
Social media use different methods to converse which are innovative shift. Some of the social media are blogs, wikis which are similar to Facebook as well as LinkedIn. With the developing technology more and more social sites are coming up but customers’ use this websites after lawyers have inspected them and they are found fit to use.
New FTC Guidelines Implicate Social Media
The Federal trade Commission issues testimonials or improvement guidelines that are relevant to social media whether it is a sponsor or not. In Inadvertent liability may affect not present wary monitor. In fabric association a company as well as a blogger or tweeter, it has got to be released by the blogger or tweeter as well as accountability for deteriorating.
Company Sponsored Social Media
Companies using Facebook marketing, YouTube and all the other social media they need there pages to be well regulate in matters of law or trademark and copyright infringement. Facebook is one of the sites that are much easier to regulate and still deliver all your messages.
Both the employers and employee play a role in the development of the company. The two parties use social media for business and personal matters. This requires one to be more careful about the laws governing the company. All business is based under laws that that should be well followed by both the employs and the employer.
Employee Use of Social Media
If a company is not allowed to use social media the employees should be fully educated on the consequences of social media participation and they should also know how to differentiate their private and professional life. If a company uses social media then they should know how to handle the business matters to portray a good picture of the company.
Employer Use of Social Media
Companies are more application amusing media to
Awning abeyant job applicants.
Investigate doubtable counterfeit claims for workers’ advantage or unemployment benefits.
Adviser agent conduct, which may reflect ailing on the company.
This amusing media is still evolving in the favor of accepting an accounting policy. As an employer you should acknowledge any risk that can be encountered by the company if the product is posted online.
Intellectual Acreage Issues
For a company to be full recognized it should have a trademark or a copyright to help it protect the company brand. This trademark should appear on the ambit of the product or article for it to be recognized easily.
Policing One’s Bookish Acreage is Essential
This is analyzing amusing media sites for crooked use of a company’s batter name, logo or more bookish property. By quickly policing a company’s bookish acreage on amusing media sites, an aggregation can more acceptable bulwark off an affirmation. Although this can be time arresting there are abundant accouterments a business may use to advise the web.
Trademark Aegis in Basic Worlds
The use of barter names and logos are so essentials and it has become a rising concern. The law is much concerned on these items. Brand support argument has become one of the issues that are a concern online.
Misappropriation of Corporate Bookish Acreage for Amusing Media User Names
Misuse of logo and name is growing rapidly and it has become of allot of concern. People have been using logo and names that resemble. An example is where there are hundred Starbucks sucks pages and groups as well as fake and totally disapproved hundred Starbucks suck pages and groups. Facebook is one social site that has adopted an action to accord with incidents of brand imposters and fake brands.
Agenda Millennium Absorb act was established to the accepted amusing media sites has created a specific action to approve dispute. Most of the sites have begun these procedures that are the agreement of service and a quicker action and also a sure way to accomplish copyrights than litigation.
The development of technology is governed by lawsuits that are not supposed to be violated by the company or the users. The use of the amusing media is all about having fun and a lot of excitement. In most cases amusing media acutely expands the cosmos of potentially accountability abstract and impact destruction. In all cases of social media legal matters should be kept into consideration despite the category of the social media.
Contemplating the Close Consumption Experience
A lot of research and investigation have been carried out about the amusing networking website. This website frequently pop up questions like “What is on your mind?” to the members this question helps people to give their real life emotions and experience. These make a lot of users to spend a lot of their time examining their own thoughts. In a business with a customer research may encounter problems during their research. If a business uses Facebook marketing then it will help the owners to get the real expression of the customers. According to Mathews inculcated a thoroughly civil appearance of empiric absoluteness beyond all bookish disciplines, such that the article of our observations is accepted to disentangle in a law like way, uninterrupted by chat with its assemblage or eruptions of anapestic self-disclosure or promptings of close will.
For Virginia Woolf, it was a moment of being; for James Joyce, an epiphany; Ezra Pound, a magic moment; Walter Benjamin, shock; and for T. S. Eliot, the still point of the axis world. Introspection then, bedridden with what a lot of accurate scholars, and absolutely customer ability theorists, would accede a too baby sample, never had a chance, (Wasserman Faust 2004 46-90) which is an abashment accustomed its inherent abeyant to abduction the abstruse moment. Companies like Google and Facebook they have a secret writing system which cause the rising of salaries. Some of the well paid technology professionals are from Silicon Valley rose. In 2011 it was 5.2% to breach $100000 barrier, while pay rose just 2% nationally, according to a contemporary bacon survey. One admission academy senior, announcement anonymously on the Web, claimed that Facebook marketing office offered a $100,000 salary, a $50,000 signing bonus, and $120,000 in banal options. According to the announcement filed in affiliation with Facebook’s planned antecedent accessible alms of stock, the company’s headcount jumped from 2,127 to 3,200 full-time advisers in 2011. Unlike some ample companies, Facebook marketing does not leave recruiting programmers to its animal assets department. One thing is that most companies don’t hire for specific jobs Facebook puts new hires through a six-week Cossack affected area they circle through projects, allotment one that apparel them best. “Facebook marketing and added companies accomplishing this are saying, (Simonite 2012) ‘You can plan for us and still be ambitious and actualize your own thing.
Although the coder antagonism looks like a fun and able meritocracy, it as well reflects problems in the U.S. apprenticeship system. Very few women participate, and a lot of the winners are from overseas. “Facebook [is] aggressively traveling to added countries because there aren not abundant accomplished humans in the U.S. Facebook marketing has a able ability of ‘hacking’ and already a month, advisers are accustomed 24 hours to absorb developing a new app. Successful ideas, which were prototype at a drudge day, cover the Like button and Timeline. The affair of the day was ‘distribution’ via the Open Graph API. By positing user ‘actions’ (such as read, share, like, ate etc) to the Open Graph (OG), this advice can be aggregate beyond the After three added circuit of academician teasers, Facebook marketing will fly the top 25 coders to its arch appointment in Menlo Park, for an adrenaline-soaked after piece this March that will accolade the best $5,000. In return, Facebook marketing gets an attempt at hiring the stars apparent forth the way.
Online marketing has become one of the most leading systems of marketing that is applied by both large and smalls business, both old and new they all engage in online marketing. Some of the social website that rare widely used is Facebook marketing. Therefore, Facebook marketing is believed to be one of the modern ways that people can use to promote and advertise their products. In the current year email marketing and mobile marketing are used. What makes Facebook the best among is that it contains both Emails marketing and online marketing to. Companies that use Facebook marketing capture more clients thus making more sales. The coming up of Facebook marketing and all other social networking websites in businesses and observation of laws ensuring that they don’t violate any laws has created a remarkable marketing environment for business and its client. Facebook having its positive side it still have some negativity that might cause damage to the business. Some of the problems faced by Facebook marketers are: some of the people may end up revealing their personal information on the website which will be accessible by anybody; this shows that Facebook does not provide privacy. Social website also does not restrict information this can lead to people sending counterfeit information which is not reliable to the users. This leads to many viewers not relying on internet advertisement and they prefer to use TV advertisement. This causes decline of sale in internet marketing. For a business to be successful on e-marketing they should educate there both the users and the employees on how they should use the internet without violating the laws. According to the objectives of the research it has been proved that most of the marketers and business owners have adapted technological method of promoting their products. All the problems that were encountered by the marketers were noticed and it became easy for them to come up with the effective solutions. All the measure of how to appraise Facebook marketing strategies were analysed and they can now be practiced.
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