Facebook Business Model free essay sample

It turned to be that facebook doesn’t have a certain business model to generate revenue, since facebook was launched at the beginning as a social site where people can meet and become friends, but never thought to have a profit out of these relationships built. But lately facebook owners started thinking about creating a business model to have a revenue out of the site’s functions, and decided to include the old fashion online business model which is creating display ads on their pages to turn the normal users of the site to purchasers through these ads of other companies or online hot offers and discounts, so here we can see that facebook is using a direct marketing mean of communication and generating revenues which is display ads. The latest updates of facebook has shown that they are using every space in their page for display ads even in the home page and if you had Facebook connect plug-ins installed in your computer, you will have even display ads generated by facebook in other pages that you’re using, but still researchers and business experts believes that the company that worth 100 billion dollars can worth a lot more by generating an appropriate business model such as Google’s business model which make them earn money through any search made by the user to buy or look for deals without disturbing the users experience with ads and filling his pages with unneeded display ads. We will write a custom essay sample on Facebook Business Model or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Features of Social Networking: he reasons why social networking has a big impact on the big or small companies, is the huge increase of social networking users which makes it easier to marketers to reach their customers and to understand their needs through the creation of their official pages, and also to rate the impact of their brands on people’s mind by calculating the interaction of these customers especially that the users between 20 and 29 are using social networking more than 10 hours a week which gives these companies the opportunity to understand more how their customers think about them or about their products. Another reason is that the cost of marketing and advertising which will be reduced, and the feedback is live through the conduction of surveys just through the social network; as well as lunching a new product and getting people’s opinion about it has not become a problem now with social networking a simple post on facebook or a tweet can show it the c ustomers willingness of purchasing or using that product or service. The social network gave also the opportunity to these companies to interact between themselves and increase their visibility in the marketplace and also to specify exactly their niche markets. Direct/database marketing has given a positive impact to the companies in the past 10 years and marketers are expecting more than that. The customer retention has became more easier with direct and database marketing, everyone is shifting from offline purchases to online purchases, so companies in the future will find internet full of customers who are willing to purchase with the companies not having to spend more to lunch a product or advertise it and most importantly getting the customers feedback. Database marketing is making target segmentation easier for direct marketing investments, because the internet users are increasingly giving full information about their desires, needs, wants, and thoughts about products they lunched especially when they find the direct communication and listening from the brands where they purchased, this will make them more loyal and will makes it easier for marketers to know their targets and add values with lower costs not forgetting the follow up from the feedback they get. 3) Launching a loyalty program: -The aim of launching a loyalty program is to increase sales in periods where it’s slow; therefore we have to improve the customer’s satisfaction of our products, staff, services, shops, and etc. As well as analyzing our sales and see if we have an improvement in our sales in a certain time of period. To start a loyalty program we should analyze the cost of it, and is it going to be beneficial to us, and we have to be different than our competitors no matter how big they are, and how big is their program we have always to be different and create a program that reaches our customer’s needs. if decided to start our loyalty program we have to make sure that every employee understands the program and should give the best image at any time that loyalty is mentioned and this we can improve it with trainings on loyalty programs. get the right materials and systems to launch our program and advertise it within our customer’s base first before giving it a big advertising. get partners for our program to sponsor our rewards. 4) inbound/outbound calls: Will help the company’s: (outline) Customer retention. Database enhancement. Increase customer’s satisfaction. -Improve service quality. -Enhance customer’s loyalty. -Helps lowering costs. -Increase aid Efficiency. Increase sales.