Nasrin Nayeema ID# 07-09570-3

Marketing ManagementSection “G”

OverviewType: PrivateFoundation: Cambridge, Massachussets

February 4, 2004Headquarters: Palo Alto, California

Dublin, IrelandKey People: Mark Zuckerberg (founder & CEO)

Dustin Moskovitz (Co-founder)Sheryl Sandberg (COO)Matt Cohler (VP)Chris Hughes (Co-founder)

Type of Site: Social Network ServiceWebsite: www.facebook.com

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

2009 Review

• 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

Cost considerations…Facebook

• Costs: (Time/Capital)– Research $0– Development, Design = $0 -

varied– Advertisements = cheap to

large– Sponsored Groups

$100k/month

=May be opportunity gain

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

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)

Timeline

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

DifferentiationDifferentiation

• 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

• 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!

• How to not be left behind…

• Responds toward users

• Bevy of opportunities

• Rich User and Data