Digital Marketing Management

Digital Marketing Management
Digital Marketing Management

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Digital Marketing Management

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“The essence of a customer driven marketing strategy is based on four major factors,namely market segmentation targeting, product differentiation and positioning.”

Discuss, with the use of relevant examples, how businesses may implement customer driven marketing strategy through managing the above four factors in the digital world. Please justify your answer using valid reasoning underpinned by academic sources and personal/professional experience (if any).
Give real life examples

Digital Marketing Management

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Digital Marketing Management

Digital marketing has become part of the business operation in the current dynamic world. The evolution of technology has made the implementation of marketing strategy easier since the marketers can now focus on four major factors to promote awareness of their products globally especially by focusing on the customer needs. The factors considered in digital marketing management include; market segmentation, targeting, product differentiation and positioning.

This paper will mainly analyse the various ways in which these four critical aspects of marketing can be implemented through an informed customer driven marketing strategy so as to promote the business in the digital world (Royle, 2014).

Understanding the customers and their needs are critical in implementing the digital marketing strategy. This develops the first factor which is market segmentation. This aspect mainly deals with dividing up a broad market into various groups based on various characteristics so as to ensure the customers are able to access what they need. Customers are different and they have different tastes and preferences.

Their locations and age can also be different as well and thus the need to segment the market so as to promote marketing. Market segmentation therefore helps in diving up the market so as to understand the needs of the customer and be in a position to meet their different needs (Rossberger, et al 2017).

Segmenting the market based on the geographical location of the client is important. This is because; the marketers can be able to provide goods and services needed in one location that may have a different demand in the other region. This type of segmentation focuses on nations, cities, provinces or even districts based on the size and market share of the business.

People located in different places may value products differently for instance, a commodity like a car may be considered to be a necessity within the United Kingdom but a luxury in other places such as Africa. Segmenting the market based on the geographical location will enable the marketer understand the specific needs and requirements in a certain location and thus meet the customer expectations. This is very important, especially in this digital era whereby marketing has gone global due to the use of the internet in marketing (Gibler,et al 2014).

The second type of segmentation is known as demographic segmentation. This is one of the most common forms of segmentation that applies to various businesses. Markets are divided into various groups for instance based on age, gender, income levels, religion, level of education and ethnicity among other factors. It is easier to segment markets based on demographics when it comes to digital marketing (Ananda, 2014).

The implementation of the marketing strategy can be done with ease as the demographics, for instance, can be used by the customers to search the products they need on various online platforms used by marketers to advertise. Taking an example of age, the customer can be able to filter out the clothes being advertised online and select those that meet personal tastes and preferences.

Similarly, a customer can be able to filter out the male products with easy and select from a variety. This makes the process of marketing easier for both the customer and the marketer. Other aspects such as religion and income levels can also be used in the same manner and thus contribute to ease implementation of digital marketing (Daniel, et al 2015).

Market segmentation can also be based on the customer behaviour. This is whereby, the market is divided and classified into various segments based on the actual behaviour of a person for instance on the previous buying rates, user status, the brand loyalty portrayed over time, the attitude towards the products, readiness to buy as well as the occasions of buying. Understanding this concept is critical to a marketer when it comes to digital marketing. This is because, the marketer will be in a position to classify the market on similar behaviours of the customers and thus convincing them to buy will be made easier (Tu, et al 2017).

Customers have different, unique behaviours and thus classifying them, for instance based on their previous rates of purchase, the marketer can predict the likely potential of sales that will be made and thus the appropriate advertising strategies can be put in place through the online platforms.

Taking an example of previous customers with a strong brand loyalty towards Samsung phones, for instance, segmentation will help in ensuring that the customers are well informed of the new products in the market and thus less aggressive methods of advertising will be applied in this case compared to the new customers in the market, who may have never bought Samsung products before or those who have low levels of brand loyalty towards Samsung products (Shi,et al 2015).

Psychological segmentation is the last concept under this factor. Customers can be segmented based on their interests and opinions which make up their lifestyle. Marketers need to understand the lifestyle of the customers so as to be aware if their needs and changes in demand from time to time. The clothing industry for instance is one of the best when it comes to using segmentation based on the psychological behaviour of the customers.

Some customers need to buy clothes from particular suppliers and they always look forward to new products in the market for such sellers thus an opportunity for one to utilize the chance, so as to promote the sale of  such products. Understanding the shifts in demand, especially in the fashion industry can help a marketer promote the marketing strategy in place by balancing out the various methods of segmentation (Lanz, 2015)…..

Digital Marketing Management

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Digital Marketing: Tool to Increase Hotel Awareness

Digital Marketing
Digital Marketing

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Digital Marketing: Tool to Increase Hotel Awareness

Digital marketing is the process by which products, services or brands are advertised through one or more forms of electronic media. Unlike the old-style of marketing, this process consists of methods and strategies that allow an organization to evaluate marketing schemes and understand the approaches that work and what is not in real time. Digital marketers carefully observe how long and how often prospective customers visit the site.

The internet is the avenue that is closely related to digital marketing. However, digital marketing also involves the use of electronic billboards, digital television, radio channels, and mobile apps. Digital Marketing is important because most consumers spent more than half of the day online and they often use social media as a source of social interaction, entertainment, news, and shopping (, n.d.).

            Digital Marketing has some advantages. To begin with, it is a global platform – a website allows the business to find new target markets across the globe and be able to trade with other people even without seeing them. Second, it tracks and measures results – through the use of online metric tools, determining the number of buyers and consumers who visit the online website is easy. Therefore, the result or the statistics that can be drawn from the metric tools can be a useful measure to determine whether the company is reaching its targets and objectives.

Finally, it creates openness and personalisation. Social marketing and networking can help a company to build good relationships with their customers. Furthermore, digital marketing could rapidly increase the social awareness of a particular brand could (, 2016).

            Digital Marketing has been the primary tool of all industries – including hotels in the hospitality industry. The industry saw positive growth in 2015. With the continued progress, hotels are expected to use technology to increase the awareness of the market. The rise of millennial travelers as the dominant consumers in hotels has a growing interest in the usage of mobile devices and applications to look for more personalized hotel guest services (Hospitality Net, 2015). Therefore, it is important that Mobile Search is present in hotels.

The trend in Digital Marketing is the Mobile search. Research studies have established that three out of five individuals use mobile devices to explore and look for information, and 80% of local hunts are converted to purchases. It is worth noting that hotels have a website which is optimized for mobile search to enhance mobile traffic and ensure a full-bodied content that can be shared on social media. Also, sites should contain directory listings, maps, and local citations to strengthen the hotel’s local presence.

Engaging the customer through the content requires exciting local attraction, activities, visuals, and trending topics. Through the use of digital marketing tools which determine the time spent on a visited web page, hotels can identify the type of contents that should be enhanced to encourage customers to visit the website again. By doing this, a potential customer could buy products or services offered by the hotels (, 2015).

            Understanding the behavior of travelers would help to develop the digital marketing strategy of the hotel. The industry should realize that people are more interested in a business that knows their needs, provides a personalized and relevant communication and that which provides tailored preferences depending on their necessities. Therefore, it is essential that the company or hotel should update the content of their website based on the needs of the potential customers or travelers. This will help to attract more clients; thus, it will lead to more profit for the company (, n.d.).

            Hotels in the hospitality Industry should remember that brands will not exist without consumers patronizing on it. For this reason, the purpose of digital marketing is to build and increase brand awareness especially in remote hotels.  The goal of the digital content marketing is to establish the hotel’s brand as attractive, valuable and trusted. The reason why digital marketing requires fresh and innovative content is to make sure that the brand message will not be overlooked.

It is necessary because nowadays high competition is very intense in the hotel industry. The high competition in the hotel industry is healthy because many search engines give rewards to those businesses that update the content of their sites with a higher ranking while silently punishing the stagnant websites with low organic rankings.

            With this in mind, hotels can improve their websites in three simple ways. First, hotels should identify the interest of the travel enthusiasts’ and potential customers. Second, provide information that is relevant to their needs. Finally, provide them clients with an edge that will have value to them.

            Though hotels can use the digital content marketing to showcase the new services and products, honesty and accuracy about the brand should be the primary core value. Digital content marketing allows the hotel to come up with a creative explanation on how they can address the needs of their customers. The content in websites should also indicate how the industry is established and the popularity of the business in the marketplace (Parker, 2016).

Regression Analysis

            Regression analysis is a mathematical way of sorting out which variable has the most impact. It answers the questions of which variable matter most and how these variables interact with each other (Gallo, 2015). Regression analysis is used when we want to predict a continuous dependent variable from independent variables. After the collection of data (variables), all information will be relayed using a chart (Abrams, 2007).

            The fundamental and the most common predictive analysis used is the Linear Regression analysis. The formula defines the basic form in one dependent and one independent variable:

y = β0 + β1x

Where y is the estimated dependent, β0 is constant; β1 is the regression coefficients, and x is the independent variable.

            Regression analysis is often used in the casual analysis, the forecast of effect, and the trend of the forecast. To begin with, the casual analysis is used to determine the effect of the dependent variable to the independent variable. Second, forecast effects help the company to recognize the weight of result to the dependent variable change if there will be a change in one or more independent variables. Finally, forecasting the trend helps to point out the approximations where a typical question could be the price of X months from now (Statistics Solutions, 2013).

            On the contrary, when conducting a hypothesis test, one is likely to come across two types of possible errors namely; Type I and Type II errors. The risks of these errors are determined by the level of significance and the power of the test. Therefore, it is important to identify which type of mistakes has more severe consequences.Type I error occurs when the null hypothesis is correct, and it has been rejected.

The common mistake for this kind of error is when it is confused with statistical significance and practical significance. One should be cautious that a large sample size is more likely to detect a small difference. Hence, it is essential to consider practical importance when the sample size is large (, 2011).  Conversely, when the null hypothesis is not correct, and it is not rejected it is often referred to as Type II error (, 2016).

Assumptions of Regression

            Some statisticians believed that when a statistical process is not normally distributed, there is a mistake with the process, or the process itself is out of control. A chart can be used to determine when the process is non-normal so that statisticians can make corrections and return it to normality. Many procedures do not follow the normal distributions. Some of the examples include cycle time, customer waiting time, shrinkage et cetera (, 2016). In line with this, content validity is concerned with sample-population representativeness such as knowledge and skills (Yu, 2012).

Linear regressions require at least two variables of metric scale. The rule of regression analysis is that it has to have at least twenty cases per independent variables in the analysis. Regression has four assumptions. First, it should be linear such that there should be a relationship between the dependent and independent variables. The use of scatter plot can be used to test this assumption. Second, all variables have to be multivariate normal as required in the regression analysis.

This assumption can be tested through the utilization of a fitted normal curve or a Q-Q plot and a histogram. Third, the analysis agrees that multicollinearity is not in the data. It happens when no dependence occurs among independent variables. Finally, auto correlation is expected to be less in the data of regression analysis. The auto correlation exists when there is no reliance on the residuals (Statistics Solutions, 2016).

The following will provide different formula with the corresponding variance of returns:

Beta value is a measure of how strong one stock responds to the systematic instability of the whole market. 1 Beta occurs when the stock reacts to the uncertainty of the market with the market on average.


On the other hand, correlation coefficient should be between -1 and 1. Where -1 means that the market and the stock move in the opposite directions. On the other hand, 0 means that the market and the stock do not have a relationship with the movement. Lastly, 1 implies that the market moves along with the stock.


            Both will tell the strength of the linear relationship between Xi and Yi. However, they always provide distinct information. The correlation provides a restricted measure that can be understood independently of the scale of the two variables. On the other hand, Beta gives a useful quantity construed as the predicted change in the expected value of Yi for a particular value of Xi (, 2012)

            The R-squared is a measure used to identify how to close the data to the fitted regression line. R-squared is always between 0 and 100%. It is defined as the variable response variation’s percentage explained in a linear model.

            The zero percent (0%) happen when there is none of the variability of the response data is around its mean. On the other hand, the 100% pertains when all its variability of the response data is around its mean. However, there is a question often asked on what should be the good value for R-squared or how big does R-squared is required for the regression model to be valid and reliable. It would be advisable to look at adjusted R-squared rather than R-squared (, n.d.).

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Based on the result of the data from SPSS, R-squared is .145 or 14.5%. The adjusted R-squared is .139 or 13.9%, is just almost the same percentage of the R-squared pertaining to the mean square of regression which is 13.352. Since the R-squared is relatively low; the model proposed is not possible or fitted based on the data provided.

            Moreover, the probability of examining the observed results when the question is valid from the null hypothesis is called the calculated probability or the P-value. The P is defined as rejecting the null hypothesis when it is true (, 2016). The one-sided P-value is only used when an unexpected direction from a significant change makes no relevance to the study. To connect with the hypothesis, the P-value is used to specify a probability which is adopted to calculate after a particular study, and the level of significance pertains to a pre-chosen likelihood.


The increase of hotel awareness in relation to the data presented varies on the result of each of every variable in the calculation. The Pearson correlation of Y2_spc_brecal shows a positive 1.000 correlation. Moreover, the Pearson Correlation of X2_spc_person shows a positive .381 correlation.  These values indicate that the variables in the data move in tandem since both are positive. As one variable increases, other variable increases, and vice versa.  The table below shows the correlations between the variables.

The model summary of the result emphasized that R-squared is .145, or a 14.5%, and the adjusted R-squared is .139 or 13.9%. The result indicates that the model is not fitted because R-squared and adjusted R-squared are both low. The Standard Error of the Estimate is an estimate whether the prediction is accurate or not. In regression line, when the standard error of the estimate is small, the prediction tends to be accurate. Based on the result, it shows that the Standard Error of the Estimate is .737 or 73.7% which is obviously high. It means that the prediction is not accurate.

Marketing Hypotheses Analysis

There are several hypothesis that can be drawn in marketing but the most common and essential hypothesis is that digital advertising can directly enhance brand recall and recognition. The two (brand recall and brand recognition) are an entirely different thing. Though, there would be no brand recall without brand recognition. Remembering and recognizing a brand plays a critical role in attracting more buyers to stay firm in the brand of a certain product and buy them continually.

There are ways to study if a purchaser will select a product because of brand recall or brand recognition. For an instance, a brand recognition may occur when a customer watches movies or televisions where the advertisement of a product is placed. When a buyer knows the presence of a product through the online ads, the internet, or television, he/she will be aware of the product and subconsciously her/his brain will look for that brand and instantly decide to buy the product. Hence, digital marketing helps increase the recognition of a particular product/brand.

Another hypothesis could be brand recall can be improved through personalization in digital marketing. In a simple definition, personalization is the delivery of messages or experiences to a consumer based on the info about a particular person. Some terms that could describe digital personalization are data management platform (DMP). It is a database that saves consumer info which can be shared with other media like the website, email channel, applications and dynamic creative optimization (DCO), the technology that is utilized to modify sending messages from DMP data (Diamond, 2015). 

There is two new development in digital personalization. The first pertains to the customers. It is said that consumers have changed as well as their demands. A brand gathers customer’s data with the conjecture that the info will be applied to add worth or value to a consumer’s experience. The anticipation of pertinent and personalized brand collaborations will progress as businesses keep on making more investments human capital and customer-focused technology.

The second development is the technology needed for integrating personalization in digital marketing stratagems which are more accessible to product trademarks. Currently, marketers have the tools to gather info wherein they can precisely reach the clients and prospects. It helps increase the effectivity and efficiency of their campaigns through digital marketing (Diamond, 2015).

In relation to the hotel industry, the hypotheses discussed are relevant in a sense that customers always rely based on the experience of other people. For example, if a traveler wants to stay in a particular place, he/she will browse the internet to see the different hotels and its reviews. He/she will read the experiences of the other people who stayed in the hotel. If the rating of a hotel is high or has excellent reviews, the probability of a potential customer to stay in that hotel is very high. Also, recognition and recall of a hotel’s name are crucial in the preferences of the client to stay in a hotel.

Table 3. Hypothesis and Its Correlation

Hypothesis 1: Digital Advertising can directly enhance brand recall and recognitionBased on the SPSS result there is a significant  correlation between digital advertising and brand recall of because its regression result which is .416 is above 0.05 level.
Hypothesis 2: Engagement in digital marketing with interactive media programming and value content can increase brand recognition and brand recall.   
Hypothesis 3: Positive and neutral value added UGC is valuable in affecting brand recall in digital marketing. 
Hypothesis 4: Brand recall can be improved through personalization in digital marketing 
Hypothesis 4: Brand recall can be improved through personalization in digital marketing 
Hypothesis 5: Brand awareness can be increased by influence in digital marketing 
Hypothesis 6: Digital advertising can increase brand recall. 
Hypothesis 7: Digital personalization can increase brand recall. 
Hypothesis 8: Digital influence can increase brand recall. Hypothesis 9: Digital user-generated-content can increase brand recall 
Hypothesis 10: Digital engagement can increase brand recall. 


It is evident that Digital Marketing and Social media are having a substantial impact on how customers behave. With the use of technology, hotels can take advantage of the growing online spending and Smartphone technologies. Through the use of social media and mobile marketing strategies, hotels can increase the awareness of brands in the hospitality industry since prospective customers spend most of the time using different social media tools.

Travel enthusiasts and other potential customers will be provided with direct reservations using the booking software hotels continue to embrace the idea of digital marketing.Through the use of regression analysis, hotels in the hospitality industry would be able to determine the behaviors of the travelers. Moreover, this will allow hotels to identify how they can provide full-bodied information to engage customers and lead them through finalizing their purchase.


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Diamond, H. (2015). Is Personalization the Right Play for Your Brand? | Rise Retrieved 4 June 2016, from

Gallo, A. (2015). A Refresher on Regression Analysis. [online] Harvard Business Review. Available at: [Accessed 26 May 2016].

Hospitality Net. (2015). Hospitality Net – The Global Hotel Industry and Trends for 2016. [online] Available at: [Accessed 26 May 2016]. (2016). Are You Sure Your Data Is Normal?. [online] Available at: [Accessed 26 May 2016]. (2011). Type I and II Errors. [online] Available at: [Accessed 26 May 2016]. (2016). The benefits of digital marketing. [online] Available at: [Accessed 26 May 2016].

Parker, A. (2016). Building Brand Awareness Through Digital Content Marketing | G/O Digital Marketing. [online] Available at: [Accessed 27 May 2016]. (n.d.). What’s a good value for R-squared?. [online] Available at: [Accessed 26 May 2016]. (n.d.). Digital Marketing: What is it?. [online] Available at: [Accessed 26 May 2016]. (2016). What are type I and type II errors? – Minitab. [online] Available at: [Accessed 26 May 2016].

Statistics Solutions. (2013). What is Linear Regression? – Statistics Solutions. [online] Available at: [Accessed 26 May 2016].

Statistics Solutions. (2016). Assumptions of Linear Regression – Statistics Solutions. [online] Available at: [Accessed 26 May 2016]. (2012). How does the correlation coefficient differ from regression slope?. [online] Available at: [Accessed 26 May 2016]. (2016). P Values. [online] Available at: [Accessed 26 May 2016].

Statistics Solutions. (2016). Moderator Variable – Statistics Solutions. [online] Available at: [Accessed 26 May 2016].

Yu, C. (2012). Assessment: Reliability and validity. [online] Available at: [Accessed 26 May 2016].

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Podcasting; Digital Marketing on the go



During this era of digital advertising, podcasting has undoubtedly become a substantial channel through which consumption of digital content take place (McNurlin, 2009). An example of using a podcast as an advertising tool include the use of Apple iTunes app through which advertisers can upload their promotional media clips that are viewed by subscribers as they stream their preferred digital content (O’Brien, 2013).

The possible revenue model of podcasting would be through subscriptions whereby a fee is paid, and the difference between podcast and traditional advertising is that the former is based of digital content consumptions (McKeen & Smith, 2014). Some examples of mobile applications possible for use in podcasting include Apple iTunes app, Oracle, IBM among others.  

Podcasts allows brands to communicate to a captive audience. With lifestyle on-the-go, the power to have the podcasting on demand allows companies and brands tell their story anywhere at any time, which helps to establish authority in your industry and create advocates brand along the way.

You can use podcasts to assume a greater engagement to your current and potential customers, providing an email address associated with the podcast where people can respond directly to the content. This will also give you material for new content. In the next episode you can answer questions or deal with the feedback you received.


McKeen, J. D. & Smith, H. A. (2014). Making IT Happen: Critical Issues in IT Management, Wiley Series in Information Systems. New York, NY: Prentice Hall.

McNurlin, B. (2009). Information Systems Management in Practice (8th ed.). New York, NY: Prentice Hall.

O’Brien, J. (2013). Management Information Systems: Managing Information Technology in the Internetworked Enterprise. Boston, MA: Irwin McGraw-Hill. ISBN 0-07-112373-3     

Swansea TV Digital Marketing

Digital Marketing

Swansea TV Digital Marketing

Digital marketing: Competition

Competition in an industry presents itself in various ways. Thus, a company should always seek a means of gaining a competitive advantage over its competitors. Michael Porter’s industry analysis approach is a useful mechanism of ascertaining where the power in a market lies. In the lead industry, there are several companies producing lead products which mean that the competition is high. Rivalry within the industry is high because of the high rate of substitution within the industry.

The threat of substitution, according to Michael Porter, regards a situation where the clients of a company can get a similar product that fulfills a similar need from a different source at comparatively lower prices (Yeonshin et al., 2016). That means that the customer base of the organization will be affected. The threat of substitution increases because the product is also imported by other companies which render the competition even stiffer.

Gaining a competitive advantage against the competition requires that Swansea TV embraces a new marketing strategy and that is digital marketing. The use of this mechanism will increase the company’s ability to connect to more clientele which will increase the customer base of the organization. The following are mechanisms that Swansea will use to gain traffic over the Internet:

Referral traffic

Persuading other websites to connect to Swansea TV website is costly and time-consuming. For example, some will demand remuneration for creating traffic while some may not agree. Averting this situation is possible through the use of referral traffic. That can be done by creating website content that is good to the extent that other sites seek linkage from the Swansea TV website (Barry et al., 2015).

An instance can be traced back to the Google’s Panda update regarding the kick in the proverbial teeth. The content was attractive so much that eBay was willing to purchase. Having attractive content on the website will require prolific content writers who are creative and innovative.

Implementation of schema micro data

Corredoira and Sood (2015) define schema markup as a code or semantic vocabulary put on a website with the purpose of helping search engines provide much more informative outcomes. Therefore, the schema can tell the search engine the meaning of the data on a website and not just what it says. For the users, this is helpful while they search the internet. For Swansea TV, this will be extremely helpful in ensuring that the website is among the first options that come when someone searches for related content.

Digital marketing: Email marketing

Critchlow et al. (2016) describe email marketing as a direct marketing form involving the use of electronic mail as a medium of disseminating fundraising or commercial messages to a specific audience. Swansea TV can seek to use this mechanism as it is one of the simplest digital marketing tools to employ. It is also less costly, and the fact that it is a direct means of reaching out implies that it has great potential of directing traffic to the company’s website.

It entails crafting a message to the potential clients of the organization driving them towards the Swansea TV company website (Summers, Smith and Walker, 2016). That means that the message will advertise the competitive prices of the company’s products as a basis of attracting the clients.

Conversion tracking

This is a tool whose purpose is to show the events that take place once a customer clicks on an advertisement (Xia and Pedraza-Jiménez, 2015). That is, it informs the owner if the customer signed up for the business newsletter, downloaded the app, called the business call center or even if they purchased the product. Swansea TV will utilize the server to server tracking method which stores the tracking information on the servers instead of using cookies. The need of a conversion approach is to evaluate the success of the digital marketing approaches that will be used.  


Barry, A. E., Johnson, E., Rabre, A., Darville, G., Donovan, K. M., & Efunbumi, O. (2015). Underage Access to Online Alcohol Marketing Content: A YouTube Case Study. Alcohol & Alcoholism, 50(1), 89-94.

Corredoira, L., & Sood, S. (2015). MEETING NEW READERS IN THE TRANSITION TO DIGITAL NEWSPAPERS: LESSONS FROM THE ENTERTAINMENT INDUSTRY. El Profesional De La Información, 24(2), 138-148. doi:10.3145/epi.2015.mar.07

Critchlow, N., Moodie, C., Bauld, L., Bonner, A., & Hastings, G. (2016). Awareness of, and participation with, digital alcohol marketing, and the association with frequency of high episodic drinking among young adults. Drugs: Education, Prevention & Policy, 23(4), 328-336. doi:10.3109/09687637.2015.1119247

SUMMERS, C. A., SMITH, R. W., & WALKER RECZEK, R. (2016). An Audience of One: Behaviorally Targeted Ads as Implied Social Labels. Journal Of Consumer Research, 43(1), 156-178. doi:10.1093/jcr/ucw012

Xia, H., & Pedraza-Jiménez, R. (2015). CHINESE SOCIAL MEDIA STRATEGIES: COMMUNICATION KEY FEATURES FROM A BUSINESS PERSPECTIVE. El Profesional De La Información, 24(2), 200-209. doi:10.3145/epi.2015.mar.14

YEONSHIN, K., SANGDO, O., SUKKI, Y., & HWASHIN HYUN, S. (2016). CLOSING THE GREEN GAP: THE IMPACT OF ENVIRONMENTAL COMMITMENT AND ADVERTISING BELIEVABILITY. Social Behavior & Personality: An International Journal, 44(2), 339-351. doi:10.2224/sbp.2016.44.2.339

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Facebook: The New Face of E-Commerce

Facebook: The New Face of E-Commerce
Facebook: The New Face of E-Commerce

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Facebook: The New Face of E-Commerce

Is Facebook: The New Face of E-Commerce? Facebook is considered by investors as the new face of e-commerce, bearing in mind that it is world’s most visited social website. On top of that, Facebook has created an international audience, third in number after Google and Yahoo search engines. For that reason, investors have for a long time been attracted to not only market their commodities in their website, but also conduct business transactions with their prospective customers logged into the social website (Clemons, 2009).

            Strategic and financial analysis had an impact in investors’ decision to back Facebook. Considering Facebook’s positive performance in the past, investors have backed the company in large numbers. Investors are aware of Facebook’s high revenue growth, which is attractive to investors. Additionally, its sustainable revenue growth together with its real revenue growth has seen many profit making organizations use the company to further their money-making endeavors (Clemons, 2009).

Facebook: The New Face of E-Commerce

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            One of the strategies that Facebook has employed so as to receive a backing from large corporations and small investors, is its pricing policies, which make them enjoy a competitive advantage by locking in and adding new clients. The company is known for having a good control of its pricing policies by encouraging the positive pricing. Thai is why they are in a beter position to attract more investors (Clemons, 2009).

            Another strategy that Facebook has employed to attract more investors is that it has gone mobile. They have done that in order to reach out to as many clients as possible all over the world. In fact, over one billion people in the world have mobile handsets. Enabling Facebook applications in their phones increases the number of people subscribed to the social website. This has the effect of raising the probability of global growth in years to come (Clemons, 2009).

             The concept of convergence entails enabling divergent kinds of networks to perform similar tasks. Facebook, being the new face of E-Commerce should have the ability to provide a range of services over a single network. If I am to develop a good convergent network for Facebook, there are several factors which I ought to consider, attracting both clients and investors to the social website, hence enjoying a competitive advantage over other competing firms (Holmes, 1999).

Facebook: The New Face of E-Commerce

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            Facebook has often made use of wireless medium more than it has used the wired medium of communication. A proper model of Facebook convergence should have both the wired and wireless media. This has the effect of hoisting the traditional business models and value chains. In the long run, there is competitive substitution as well as complementary merging of products and services at the same time (Holmes, 1999).

It is also important to harmonize the infrastructures, contents, storages and storage capabilities of computer systems. This brings together communication industries, software and the internet, towards a common objective.

            The most appropriate infrastructure should be selected for the emerging trend of network convergence. This is because the digital networks dictate which type of infrastructure should be used. Flexibility is thus important so as to accommodate new trends in convergence. There are three levels under which network convergence take place.

These are at; transmission, terminal, and the service level. In the event that core technologies converge, the diversity of applications of services increases. Thus by coming up with such a model, the barriers posed by impropriety solutions which enable firms to integrated voice and data applications are dealt with (Holmes, 1999).

            Facebook’s economic viability is on the rise especially internationally. This if for the simple reason that its membership growth by far surpasses those of competing social websites such as Twitter and MySpace. Besides, it is the only social website enjoying an international audience in the third position to Google and Yahoo. Therefore Facebook’s economic potential cannot be overlooked. For the 800 million active users of Facebook is an attraction to large multinational companies seeking to market their products and services (Traver & Loudon, 2005).

Facebook: The New Face of E-Commerce

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            Facebook has shifted from the traditional e-commerce trend of companies merely advertizing their commodities over their website. It has also moved from the old norm of prospective customers being redirected to other pages upon clicking on an advertisement link. Instead Facebook now boasts of hosting the contents of these organizations. A Facebook user does not need to leave his Facebook page in order to conduct business transactions.

The customers just purchase and pay their dues right within Facebook, increasing their level of commitments. Thus new companies have their pages in Facebook where they communicate with their clients and ease their transaction burden. This new wave of change makes Facebook remain economically viable in the face of economic depressions (Traver & Loudon, 2005).

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            While speculations are rife over the firm’s economic viability following the decline in the number of subscribers in the United States, international subscribers continue to rise by the day. To add on that, Facebook has a potentially lucrative market, even posing a competitive threat to the traditional search engines such as Google and Yahoo. The bone of contention is that Facebook is increasingly restructuring itself to become the world’s largest search engine (Traver & Loudon, 2005). 


Clemons, E. (2009). Business Models for Monetizing Internet Applications. Journal of     Management   Information Systems, 26 (2), 15-41. Retrieved October 23, 2012, from

Holmes, T. (1999). The Art of Convergence. Black Enterprise, 29 (10), 48. Retrieved October 23, 2012, from

Traver, G., Loudon, C. (2005). E-Commerce: Business. Technology. Society. Wesley: Pearson. 

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Facebook: The New Face of E-Commerce