social networking and social media marketing the facebook phenomenon

SOCIAL NETWORKING AND

SOCIAL MEDIA M

ARKETING

THE FACEBOOK PHENOM

ENON

SOCIAL MEDIA AND NETWORKINGSocial Media are the platforms that enable the

interactive web by engaging users to participate in, comment on and create content as means of communicating with their social graph, other users and the public.

Includes such sites as YouTube, Twitter, Pinterest, GooglePlus, LinkedIn, and Facebook.

WHAT DO SOCIAL NETWORKING SITES PROVIDE?

• Wide variety of content formats • Interaction between platforms• Offers unlimited levels of interaction and engagement from

users• Viral capabilities and increased information distribution• Provides one-to-one, one-to-many, and many-to-many

communications• Real times communication and opinions• Easily accessible on a large amount of devices

SOCIAL MEDIA FOR BUSINESS FIRMS TODAY

- Increased visibility to customers and consumers - An interactive platform for business to communicate

with their target demographic- Viral ability to share and recommend products and

services- Free platform for discussion, customer feedback and

provide promotional opportunities for companies

- How many people in our class are participating in social media?

- If you do, what networks and media outlets do you use?

- And what do you use them for?

MissionFacebook's mission is to give people the power to share

and make the world more open and connected.Company OverviewMillions of people use Facebook everyday to keep up

with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet.

BACKGROUND

- February of 2004. Facebook was founded by Mark Zuckerburg when he was nineteen-year-old attending Harvard University in

- Mid-2004, Zuckerburg incorporated the business and named Sean Parker, the mind behind Napster, as president. Headquarters were moved to Palo Alto, California.

- October of 2007: Microsoft purchased a 1.6% share of Facebook for $240 million.

- 2008: International headquarters are established in Dublin, Ireland.- 2011: Facebook moves to Menlo Park, California to the old Sun

Microsystems Campus where it is currently located today.

It is currently the largest social network in the world, boasting more than four hundred million members and usage rates that would be the envy of most media companies.

EXECUTIVE MANAGEMENT

Mark ZuckerbergFounder, Chairman and Chief Executive Officer

Sheryl SandbergChief Operating Officer

David EbersmanChief Financial Officer

FACEBOOK USER STATISTICS

- 901 million monthly active users at the end of March 2012. - Approximately 80% of our monthly active users are outside the

U.S. and Canada.- 526 million daily active users on average in March 2012. - 488 million monthly active users who used Facebook mobile

products in March 2012, and more than 500 million mobile monthly active users as of April 20, 2012.

- During March 2012, on average 398 million users were active with Facebook on at least six out of the last seven days.

TECHNOLOGY: HOW DOES FACEBOOK WORK?Software

SystemProgramming

LanguageLinux

(Operating System)C++

Apache (Web server)

Java

MySQL (Relational database management system)

Python

PHP (Server-side programming environment)

Erland

Memcache (general-purpose distributed memory caching

system )

EVOLUTION OF FACEBOOK PROFILE

FACEBOOK’S TAKE OVER OF THE INTERNETCompetitor Service Facebook Product

Google’s Picasa Photo Sharing Facebook Photo and Sharing

Gmail, Hotmail, Yahoo! Email @facebook.com mail

DropBox File Sharing Facebook Files

Netflix Online Video Rentals Netflix Rentals on Facebook

Craigslist, News Paper Free Classified Listings Market Place

Gaming Websites Scrabble, Words with Friends Apps

Content Sharing Digg.com and Del.icio.us News Feed

Groupon, LivingSocial Daily Deals Facebook Deals

News Breaking news Newsroom

Pandora Music Sharing Facebook Music

No cash spent on acquiring other businesses! (except $1B Instantgram)

SOLUTIONS FOR BUSINESSES

- Discussion Boards- Events- Information- Notes- Photos - Reviews - Video- Wall

OPPORTUNITIES

- IPO- Consumer Space

- Advertising - The “Media”

FACEBOOK’S IPO: ALL YOU NEED TO KNOW!

http://mashable.com/2012/05/14/facebook-ipo-week/ (Video)

Also

"Everything you need to know about the Facebook IPO (FAQ)"

Two ways this IPO can go….

Congrats Facebook!!!

Disappointment…

PRIVACY ISSUES- BIG MISTAKES BY FACEBOOKBeacon: Facebook’s advertisement system that sent data from external websites

to Facebook, for the purpose of targeted advertisements.

Why it flopped?

- Opt out system. Not opt in.- Distributed user information without consent.- “Facebook ruins Christmas”

Facebook donates $9.5 million to charities working to protect user privacy.

Facebook did not consider the issue and implications that could arise by sharing private information to the masses.

Quick roll out of Beacon caused significant damage to reputation, future funding for new products from consumer product companies less likely.

PRIVACY: BIG MISTAKES BY FACEBOOK

Terms of Service Debacle

“We can do anything we want with your content, forever,” even if a user deletes their account and leaves the service.”

Huge uproar from users. Modification to the Terms of Service were not approved or reviewed by users.

BUSINESS CHALLENGES & PROBLEMS

How will Facebook maintain the perceived overall value and sustaining profits?

Will they be able develop an evolving advertising model?

Discover new avenues to make income?

What are the new ways for them to identify new companies and business opportunities?

What ways will the company bend and manipulate the rules surrounding user privacy to turn a profit for the company?

How will they find more cost effective ways for turning their social real estate into a fund generator in the future?

MULTIPLE CHOICE

What is at the heart of Facebook’s appeal to users?

a. Social Graph

b. LAMPS platform

c. Facebook Email

d. Easy access to business information

MULTIPLE CHOICE

Which firm or firms have tried to acquire Facebook from Mark Zuckerberg?

a. Viacom

b. Google

c. Microsoft

d. Yahoo!

e. A & D

f. A & C

THE END