What started as a simple idea over two years ago, has grown into a law that very well may be passed through the new Conservative leadership of Britain’s, Theresa May. The new Prime Minister of the UK has been insistent on passing “safeguards” that would allow children, once they turn 18 to delete any derogatory or incriminating former social media posts, photos, and even comments.
Just yesterday, Facebook acquired a small Israeli startup called “Onavo” for a cool $150 million. Onavo specializes not in big data analysis – which seems to be today’s hot commodity – but rather data compression and optimization (“small data”). Onavo is of significant value-add to Facebook because its optimization algorithms effectively make the product lighter on data consumption – a major boon to consumers in developing countries that pay a relatively large amount for cellular data – and effective analysis methodologies. In order for Facebook to keep growing, they need to keep growing their network while simultaneously making big data “smaller.”
Social networks like Facebook and Twitter are some of the most useful, updated, and heavily utilized consumer preference databases available – and marketers are constantly looking for ways to monetize on the action. For instance, Facebook has recently been wooing network broadcasters with consumer data reports to help broadcasters understand consumer opinion on their content.
For companies trying to understand foreign consumer preferences, especially in countries in which official data may be fudged or incomplete, it can be quite difficult to ascertain consumer preferences from a hands-off approach. Traditional information agencies such as the Economist Intelligence Unit (EIU) may not have the same reach that social networks do. Social networks, unfiltered by bureaucratic corruption, can bridge the knowledge gap for foreign companies without the risk of government book-cooking. That’s why Facebook needs to grow its presence in developing markets, to make it easier for people to online: to bolster its ad revenues and to deepen its potential as a treasure trove of consumer information.
Acquiring small data pioneer Onavo will certainly make it easier for citizens of developing countries to get online. The more people that are online, the more valuable Facebook becomes. I believe that Facebook, Twitter, et al certainly have the potential to surpass information-collection resources like the EIU, McGraw-Hill, and others at the consumer level – provided that they focus not only on getting more people online, but also making big data smaller. The Onavo acquisition is a step in the right direction.
This text was written and presented by Mr. Ryan Cunningham, Student at the McDonough School of Business of Georgetown University in the course on International Business (STRT-261-01) on October 17th, 2013.
Creating a substantial social media presence is not simply about making a Facebook page and hoping customers will drop by. In business, successful communities are developed through the use of skillful marketing research, planning, and strategy making. Social media–based marketing succeeds best when the firm offers products and services relevant to the customer, incorporating substantial value, and provided by an organization deemed trustworthy and reliable. Below are important strategies firms should follow to maximize the effectiveness of social media in international marketing.
Monitor Your Firm’s Online Reputation
Trust plays a critical role in the success of social media marketing. In a world of 24-hour news cycles via practically unlimited news and information outlets, firms can fall victim to gossip and the rants of disgruntled consumers, activists, and others. Thus, marketers need to invest efforts every day scanning the Internet to monitor news about the firm and its brands.
Communicate Your Expertise
Sophisticated companies publicize their expertise in various ways online, such as via websites, podcasts, blogs, and social media, all emphasizing buyers’ needs. Fundamentally, more than caring about products themselves, consumers seek solutions to their specific problems.
Understand Your Markets
Marketers need to devise marketing communications only after acquiring substantive knowledge of the characteristics of intended buyers. By knowing who is using which social sites, marketers can promote their products to their targeted audience at the appropriate sites. For example, the social network site aSmallWorld targets affluent members and others who are part of the international social jet set. Care2 is a social network site that appeals to environmentalists and other interest in green living from around the world.
Manage Information about Your Company and Brands
Many firms today use Facebook and other sites to disseminate continuous news releases that provide value to consumers. Buyers respond favorably to information that appeals to their needs and concerns about products and brands they enjoy. News releases online link to the corporate website, where explanations are offered regarding emergent trends and events that interest buyers. The most successful social media sites incorporate numerous useful links to other sites and provide easy means for customers to contact company representatives. For example, Chinese computer giant Lenovo launched a site called “Voices of the Olympic Games” to collect posts from the athletes competing at the 2008 Beijing Olympics. The site allowed Lenovo to link its brand to exciting Olympics events as they developed.
As the Internet gains momentum worldwide, firms are using social media to undertake international marketing campaigns. Because social media are cost-effective, even small firms can market offerings to market niches around the world.
Leveraging social networks can be especially effective in emerging markets and developing economies, where consumers may be less receptive to traditional Western forms of marketing communications, such as TV and print advertising.
Some cultures appear to lend themselves especially well to social media marketing approaches. For example, collectivist cultures characterized by a high need for social affiliation and respect for peers are likely to value the brand-oriented interaction available through social media. China is one of the top users of e-mail and social media worldwide, and the Chinese tend to exhibit a strong preference for online media that enhance social relationships. The market for credit cards in Russia is still emerging, and finding information on the credit worthiness of cardholders is challenging. Banks leverage social sites, such as Vkontakte and Odnoklassniki, to identify potential users with strong potential credit ratings.
Marketing communications using social media represent the new frontier in international marketing. Social networks are considered increasingly critical to any interactive marketing communications program. Marketers aim for brand engagement; that is, they want customers to develop a personal relationship with the brand. Social media represent perhaps the best means for achieving this closeness.
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