Twitter Emerges as a Digital Marketing Tool
Twitter originally began as a podcasting company based out of a San Francisco warehouse in March of 2006. Some reports say that Twitter was founded by Evan Williams, Biz Stone and Jack Dorsey. According to interviews with about a dozen early investors and employees, Twitter was actually founded by an entrepreneur named Noah Glass, who started the originally company Odeo in his apartment. Although the exact history of Twitter is unclear, the successfulness of the company is. Twitter is reportedly worth more than $5 billon and climbing toward $10 billon on secondary markets. Businesses, small and large, are utilizing Twitter as a major marketing source. Some businesses now have “tweeting” down to a science. They are using the social network to communicate with customers and employees to inform them about the happenings of their company. Companies are able to market to millions of people worldwide at a much cheaper price than other forms of advertising and marketing.
Key Marketing Issues
• Marketing Environment: The competitive, economic, political, legal, regulatory, technological, and socio-cultural forces that surround the customer and affect the marketing mix.
• Competitive assessment: Other organizations that market products that is similar to or can be substituted for a marketer’s products in the same geographic area. By having a Twitter account that is offering their customers deals and discounts keeps them one step ahead of their competitors.
• Technology: The application of acknowledge and tools to solve problems and perform tasks more efficiently. Twitter has opened a technology marketing tool door for many companies that is allowing them to reach widen their customer base.
• Product differentiation – Creating and designing products so that customers perceive them as different from competing products. Twitter will allow businesses to set themselves apart from others who are not using Twitter.
• Global branding: the brand name of a product that has worldwide recognition. A global brand has the advantage of economies of scale in terms of production, recognition, and packaging. Companies know that Twitter is a household name and recognized around the world.
• Product positioning: Creating and maintaining a certain concept of a product in customers’ minds. By having a place where customers can leave comments and remarks about a company gives the customer the perception that the company is interested in what they have to say.
• Identifying the appropriate targeting strategy: In order for a company to successfully market to its customers, they must determine their target market by using one of the three targeting strategies: undifferentiated, concentrated, and differentiated.
• Segmentation Variables: Characteristics of individuals, groups, or organizations used to divide a market into segments. A company must determine which variables are relevant and choose a marketing tool that best caters to that market.
Personal Case Analysis
After reading this case and doing some research I learned that Twitter can be an effective marketing tool. Before reading this case I only thought of Twitter being a social network where friends and celebrities talked about every detail of their life. I must admit I am not a big fan of social media. I do have accounts on both Facebook and Twitter but more so just to keep in touch with friends. Companies that use these sites are expanding their customer base, reaching out to current customers, and promoting their products.
1- Why is Twitter appealing to companies?
Twitter is appealing to companies because it is a fast, cheap, and effective marketing tool. Companies are using the social networking site to inform customers about