Referring to Paula Luo’s blog post on Nu skin, it is a company that sells health care products, cosmetics products and dietary products. According to the news reported on Ecns.com, “As for Nu Skin Enterprises, a United States-based direct-selling company, its revenue in Greater China amounted to $269.1 million in the second quarter of 2013, up 35 percent compared with the same period last year”(Esc.cn 2013).

The significant reason behind the huge market share pulling from China was because Nu skin had realized the consumer behaviors of people were changing. In the rising economic society, people are more sensitive about their appearances. Particularly, young girls are willing to spend more money on cosmetics products and dietary products that as long as can help them to keep fit and stay young. With the save-after-spend consumer lifestyle, young people who want to lose weight believe that without having to do a lot of exercises why don’t we paying a little bit more money for the same effect. In the other aspect, people desire to earn easy money without having to do a lot of work. Nu skin employees their sales by saying they offer a flexible work and a high salary for young people who have zero experience but desire to earn money. The sales manager organizes several SPA parties at private houses in different area to invite young people to middle-aged woman which are their main targeting segments to join the party for free and to try out Nu skin’s products like SPA machine by applying the reciprocity principle. More and more people get attracted by the products themselves and by the opportunity to earn money. Therefore, they join the team of Nu skin and keep passionately promoting their products to their friends and even to their friends of friends by using social media, which results in the forming of the huge pyramid scheme works.

Reference:

http://www.ecns.cn/business/2013/10-03/83056.shtml

https://blogs.ubc.ca/paulaluo/2013/10/09/nu-skin-enterprises-targeting-direct-consumers/

Advertisements are playing a pivotal role in terms of marketing for every company. Advertisements can attract their target customers and can create brand awareness for their potential customers.

Facebook had put a lot of effort in display ads since it generates a great amount of income. Facebook has taken a huge share of the display ad market in the U.S. which has been estimated as high as 25% (7/24 Wallst, 2013). Recently, Facebook released a new ad policy and the goal is to “deliver the right content to the right people at the right time” just like their News Feeds (7/24 Wallst, 2013). Facebook is trying to understand people’s different customer behaviors better in order to select the right ad that might interest their customers. In the distributions of ads, Facebook is currently attempt to deliver the ads and to reach the right audiences. For instance, if a marketer of a fashion retailer tells Facebook that they mainly target girl ages from 18-30 in a specific region, Facebook will show this particular ad for this group of people. If some people always hide the same type of ads such as fashion or business ads, Facebook might eliminate these displayed ads that an individual hided before. However, if an individual always likes for the type of ads they are interested in, Facebook will learn which type of ads can be more relevant to this individual. According the author of this report believed “…, if advertising is more relevant, users will be more accepting”.

I personally think that improving on the relevance of the ads can lead to an increase in the sales of those companies display their ads on Facebook. The new policy can help these companies deliver their messages more efficiently and help their marketing strategic planning be more successful.

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Reference: http://247wallst.com/media/2013/09/28/facebook-to-relevance-of-advertisers-for-users/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2FRyNm+%2824%2F7+Wall+St.%29