Advantages of Advertising Online - Term Paper Example

Executive Summary: The advancement in the information technology has made revolutionary changes in all the fields of the human activity. Modes of learning, entertainment, communications and business tactics have been re-shaped to cope with the emerging needs of the technological development through the utilization of all the available resources. Utilization of the face-book platform by the youth especially people of the age group twenty five to thirty four years for the achievement of a variety of tasks and objectives has initiated a wave of decision making process among the key business players(1). These business players to make use of the face-book forum for the promotion of sales of their respective products. The business community has initiated the production of their advertisements to cater the needs of the target groups as are associated with the face-book. The forum has facilitated to the top executives of the business organizations to formulate their advertisements as in accordance with the needs of the target group as to fulfill their needs as on economical basis(2). Social net working sites including face-book platform are constantly modifying their available options and the advertising companies are accordingly catering the needs of the customers. Advertising online has a number of advantages like the provision of inter activity to the participating groups and with the business companies, flexibility in the shape of brand messages, precise targeting the groups based on their sex, age, working classes and regional and national groups(3). The online advertising through marketing decisions by the firms has a plenty of advantages for all the stakeholders. There are three primary stakeholders, the target groups in the shape of the community associated with the facebook platform as the recipients of the advertisements, the business firms and the advertisement companies. However, online advertising is also facing criticism; the customers find banner advertising as annoying and intrusive in their existence. The business firms need to analyze the problem by considering its all pros and cons and require taking marketing decisions for the promotion of their businesses through the e business and e marketing techniques(4). Growing trends in the information technology including facebook platform, emerging business techniques and the reforms in the advertising field will serve as pool of information for the top executives to take marketing decisions for the promotion of their business. All these steps will help the business firms to pursue their business strategies for the fulfillment of their objectives and the resultant business decisions will assist all the stakeholders to gain the benefits on win –win basis(5). Case Issues: Social Networking Sites are the platforms for sharing information among the users, videos, photos exchanges among the users, and blogging are the common tools for flow of information among the facebook community for their mutual benefits. These social networking sites generate millions of dollars in the shape of revenue and advertising as the byproducts of the modern tools of communication (6). A number of issues are associated with the case study as: 1) Social networking sites and the advertisements work in the shape of a relationship and the exploration of the nature of relationship has tremendous impacts on the interests of all the stakeholders, 2) Marketing decisions as taken by the business firms and their timings for the generation of necessary revenues as in favor of the business firms. The identification of the key steps in the decision making process is essential for seeking complete benefit as in favor of all the major stakeholders. 3) The selection of the business model for its adoption by the business firms with all its consequences especially in economic terms. The business organizations have the choice to select either subscription based business model, or a business model on advertising revenue based. 4) The selection criteria for a specific business model because of rational decision-making process with the observance of all its six stages. These six stages move in a successive manner starting from identification of the problem and ending at the analysis and review of the results of the decisions through its application(7). The real issue of the problem is to identify the problem at its initial stages and the timings of the decision for the adoption of a particular course of action for the achievement of the objectives of the decision. Analysis of the issues as based on Marketing Theory: The case study includes four major issues; their analysis as based on marketing decision, which is given below: a. The nature of social networking sites and the advertisements: Social networking sites are the emerging tools of communications among the users of the facebook; these sites are visited by millions of the customers in the shape of groups, communities and major organizations in an informal arrangement (8). The members belong to a variety of social categories with a significant number of youth of all the ages especially ranging from twenty-four years to the age of thirty-five years. These users stay at their home pages for a significant time; during their stay, these users are in a position to watch all the paper in detail. The business community has noticed the interests of the youth and has therefore decided to utilize the pages for their advertisements. These advertisements have their specific messages and through these messages, the advertising companies have beautifully translated the business motives in the shape of modern advertisements at the facebook. The nature of relationship is the key element in the whole coordination and its identification is a key step for taking marketing decisions by the business firms (9). b. Marketing decisions as taken by the business firms and their timings: The business firms for the promotion of their business and the use of facebook take the marketing decisions and internet as medium of communication has provided an opportunity to utilize the medium for the promotion of sales of their products. The decisions are beneficial to the business firms as successful implementation of the decisions has the ability to achieve business targets within specific time and therefore, fulfillment of the mission of the business firms (10). c) The selection of the business model for its adoption by the business firms with all its consequences especially in economic terms: The business firms formulate their business strategies for the achievement of their business targets through the implementation of these strategies. The business firms have two options for their selection either to adopt subscription based business strategy or through the advertisements at the facebook. Both of these business models have their advantages and disadvantages, however, advertisement based business model has more advantages than that of disadvantages, therefore, the firms has selected to adopt this type of business models for the promotion of their business. d).The selection criteria for a specific business model: The firms has selected advertisement based business model for the promotion of their businesses through the facebook platform in combination with the internet as medium of communication. The decision as taken by the firms is a rational decision as the model has the room for interactivity, flexibility, precise targeting, quick results in measurable form and more revenues as in favor of the business firms(11). Alternative courses of action: The business firms have decided to adopt a new marketing strategy in the shape of a business model purely based on economic outputs in the shape of advertisement based business results. However, these business firms could also explore the following alternative course of actions for the achievement of the similar results. These alternative courses of action are as under: 1. Advertisement based business model is a modern technique for the promotion of business on competitive basis. However, the firms have the option to select other business tools like e marketing of their products at competitive prices, the step will promote sales of the business corporations and therefore, more revenues and more profits. 2. The business organizations manufacture their products with the utilization of essential inputs as financial, human and technological inputs. The utilization of all these inputs by the business firms on optimum basis for the manufacturing of the finished goods, by lowering the cost of the inputs; the business firms could be in a position to achieve similar result as through the business model. 3). Human resources is a key element for the execution of the business and capacity building of the human resources as a business strategy could serve as an alternative business tool for the achievement of the desired results. 4) The business organizations need to evaluate their options at the initial stages of their business strategy and the option has the potential to address the economic issues of the business organizations. Recommendations: Business organizations need to observe the following recommendations for making their businesses as success models for the fulfillment of their business objectives within specific time. These recommendations are as under: a) The business firms need to observe rationale decision model for the execution of their marketing strategy at affordable economic rates. These firms should observe all the six stages of the decision making model. b) The advertisement may be designed as in accordance with the genuine needs of the target groups for their quick acceptance, and therefore more sales and more revenues will be generated in favor of the business firms. c) The business firms need to review their financial results regularly, more revenue because of the advertisement will serve as a positive signal and similarly a decline in the revenues is the negative trend. d) The firms may like to review their business plans as on regular basis. The step will serve as a check and balance in the whole business model and the business firms will be in a position to amend their strategies as on regular basis and sustainability of the firms will be achieved in the competitive business environment. References: 1. Daniel Kahneman, Amos Tversky (2000). Choice, Values, Frames. The Cambridge University Press. ISBN 0521621720.  2. Blackhart, G. C., & Kline, J. P. (2005). Individual differences in anterior EEG asymmetry between high and low defensive individuals during a rumination/distraction task. Personality and Individual Differences, 39, 427–437. 3. Drake, R. A. (1993). Processing persuasive arguments: 2. Discounting of truth and relevance as a function of agreement and manipulated activation asymmetry. Journal of Research in Personality, 27, 184–196. 4. Levinson, J.C. Guerrilla Marketing, Secrets for making big profits from your small business, Houghton Muffin Co. New York, 1984, ISBN 0-396-35350-5. 5. Rehfeld, J.E. Alchemy of a Leader: Combining Western and Japanese Management skills to transform your company, John Whily & Sons, New York, 1994, ISBN 0-471-00836-2. 6. Hamel, G. & Prahalad, C.K. “The Core Competence of the Corporation”, Harvard Business Review, May–June 1990. 7. Pascale, R. and Athos, A. The Art of Japanese Management, Penguin, London, 1981, ISBN 0-446-30784-x. 8. Chua, E. F., Rand-Giovannetti, E., Schacter, D. L., Albert, M., & Sperling, R. A. (2004). Dissociating confidence and accuracy: Functional magnetic resonance imaging shows origins of the subjective memory experience. Journal of Cognitive Neuroscience, 16, 1131–1142. 9. Martinsons, Maris G., Comparing the Decision Styles of American, Chinese and Japanese Business Leaders. Best Paper Proceedings of Academy of Management Meetings, Washington, DC, August 2001 10. Katsenelinboigen, Aron. The Concept of Indeterminism and Its Applications: Economics, Social Systems, Ethics, Artificial Intelligence, and Aesthetics Praeger: Westport, Connecticut, 1997, p.6) 11. Schumacher, E.F. Small is Beautiful: a Study of Economics as if People Mattered, ISBN 0061317780 (also ISBN 0881791695) Read More