Marketing Management

2. Nasrin Nayeema
ID# 07-09570-3
Marketing Management
Section “G”

3. Overview
Type: Private
Foundation: Cambridge, Massachussets
February 4, 2004
Headquarters: Palo Alto, California
Dublin, Ireland
Key People: Mark Zuckerberg (founder & CEO)
Dustin Moskovitz (Co-founder)
Sheryl Sandberg (COO)
Matt Cohler (VP)
Chris Hughes (Co-founder)
Type of Site: Social Network Service
Website: www.facebook.com

4. Porter’s Generic Strategy
• Overall Cost Leadership
– Lowest production & distribution
cost
– Lesser marketing skill
• Differentiation
– Uniquely achieved superior
performance
– Quality leadership with best
service
• Focus
– Market segmentation
– Differentiation according to the
market

5. 2009 Review

6. • Generates revenue from
advertising including banner ads
• $25k to $100k investments
• Big part of that revenue comes from
cost-per-click advertising
• Donations from prevailing successful
companies
• Revenue target this year - $550 million
which is nearly twice 2008 revenues of
$280 million
• Several forms of advertising that take
place on social networks: cost per click
(CPC), cost per action (CPA), cost per
install (CPI), and cost per thousand
(CPM)
Cost Leadership

7. Cost considerations…Facebook
• Costs: (Time/Capital)
– Research $0
– Development, Design = $0 -
varied
– Advertisements = cheap to
large
– Sponsored Groups
$100k/month
=May be opportunity gain

8. Strategy and Tools
• Advertising
– Banner Ads
– Contextual//NewsFeed/Flyer Ads
– Social Ads
• Marketing
– Facebook Pages and Sponsored
Groups
– Beacon
• Word of Mouth/Interaction
– Applications
• Intelligence
– Profiles and Network information
– Public Groups

9. Current Status
– 81% said they use Facebook
at least once a day
– 77% had been contacted by
someone they did not know
through Facebook
– 44% felt that Facebook has a
negative impact on their
academic work
– Average user spends 20
minutes per visit on Facebook
(Facebook, 2008)
Average user visits 32 pages
per visit (Alexa, 2008)

10. Timeline

12. • News Feed
• Wall
• Photos
• Notes
• Gifts
• Marketplace
• Pokes
• Status
• Events
• Networks
• Groups
• Chat
• Public Profiles
DifferentiationDifferentiation

13. • Popularity of the website
• Serving generation Y
(now and in the future)
• Social aspects of
information sharing
• Organization of
information
• Outreach opportunities
• Advertising opportunities
• Virtual networking
FocusFocus

14. • Over 250 million active users
and more than 1/2 of them
return daily (Facebook, 2009)
• Social aspects of information
sharing
• 85% of college/university
students have a Facebook
account (Facebook, 2009)
• Average user spends 20
minutes per visit on Facebook
(Facebook, 2009)
• Beyond centers—the job search
process
It's Popular!

15. • How to not be left
behind…
• Responds toward
users
• Bevy of
opportunities
• Rich User and Data