Calvin's Blog

Yesterday I went to see the new movie “the social network” and it really got me thinking about the social networking website. The site was started by a Harvard student who first set it up in his dorm room sometime in 2004 and exploded into the one of the biggest online networking sites in the world in just a short amount of time. So what I’ve been wondering about since watching the movie is this: what is it about facebook that has made it such a success?”

To answer my question, I have prepared an informal analysis of its market mix

Product – one of the best things about facebook is its versatility. There is not just one thing about the site that appeals to people. People log on to facebook for a variety of reasons and because of that the company has been able to target a wide array of segments. What does facebook offer that people value? First and foremost, facebook offers people a means of connecting with people all around the world, whether they be you family, friends, classmates, friends of friends, or someone you just met at a party. They provide an instrument to get to know what a person is like, what their interests are or what their personality is like. Before facebook the world of socializing was a bit more challenging, but today with this online tool, it has made it easier to connect and reconnect with different people, to build friendships, and to meet new people who share the same interests as you. Facebook the product is successful because it gives people what they want, and people what a whole bunch of different things. They want to see pictures of their friends, they want to know if someone they just met is in a relationship or if they’re single, whether they are looking for a relationship. They want to know what their friends are up to without the hassle of calling or meeting up with them. Facebook gives people the opportunity to have a quick update about what a lot their friends are doing.

Price – a major advantage for facebook is that they offer their prudcut FOR FREE. People display great value towards the site as seen when people are constantly checking updates, updating their profiles, or viewing pictures. To have this service at no charge makes it an even more valuable product to consumers. They place the services of facebook to be of high value and I would argue that many would be willing to pay for it if there were such a price tag. However, not charging consumers for using the site has allowed for facebook to reach so many more people (over 500 million people in 207 countries).

Place – Facebook is distributed online over the internet. Distribution doesn’t get much easier than that. It’s very easy for users to use the site as you can access your account on any computer in pretty much any country in the world that has internet (however there were many countries that have banned the site). Having the site readily available anytime the consumer wants it makes the product that much more powerful. Facebook exercises a near perfect “just in time” distribution method where at anytime, when people feel the urge, can simply log on to their account and do whatever it is that they do on the site. And with the emerging trend of owning smartphones and the advancement of its technology, the distribution of facebook has been made even easier with its smartphone application.

Promotion – Facebook uses the strongest form of promotion to make itself known to people, which is word of mouth. What started out as a Harvard exclusive site, its expansion to different schools, cities, and eventually different countries had such a prominent effect for the company because people who used the site liked it and wanted their friends to know about it and use it. Its promotion was simple yet so effective. People use facebook because they want to connect with all their friends. They cant connect with people who aren’t part of the site so they tell their to join. People join facebook because they see that their friends are on facebook. Thus, it’s an automatic way of promotion that saves the company millions in advertising expenses (have you ever seen a commercial about facebook?) “Facebook me” has become a regular phrase in our everyday language. Word of mouth spreads fast, hence facebook’s rapid growth over the past half decade.

Facebook did not just launch in 2004 and that was it. Since then they have made a lot of changes in terms of its displays, functionalities, and expansion of its services. Facebook understood that people are always changing and looking for the next big thing, so they must keep changing and adapting and remaing “the big thing” in the minds of the consumers. And the way things are looking, Facebook is at the top of its game and isn’t showing any sign of slowing down.

Facebook 2004

Facebook 2010

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