"Facebook could force marketers to work more closely with product developers, which is good for consumers. So instead of crafting compelling messages that will encourage consumers to buy, companies will have to think about how they can make the best possible product that people will want to buy -- and tell their friends about." - David Kirpatrick, Fortune Senior Editor http://money.cnn.com/2007/11/08/technology/facebook_ads.fortune/
Control has clearly shifted. In the pre Internet days, companies could dictate company policy with little, though admittedly some regard for the consumer interest. With the vast amount of product information now available online, companies are having to quickly adapt themselves around their consumers like never before in an almost level playing field.
So does this change advertising for the better? Well, yes. It means that companies now have to develop and create products with more consumer input influencing the final product or service at every stage of the process. The final out come is a product or service which is truly relevant to the consumers' needs, that marketers really do fulfil their role as 'the voice of the consumer through the organisation'.
Take the recent example of HSBC in August when it decided to charge fees for student overdrafts. Consumers, headed by the NUS, hit back hard through facebook groups and networks and other social networking sites such as MySpace, forcing HSBC in to retreat, and eventually scrapping its new scheme. There are however, more positive examples of companies building themselves more closely intune with their consumers. Cadbury's recently relaunched 23m special edition Wispa bars due to popular demand with almost 14000 users having signed onto 93 different bring back Wispa groups, declaring their allegiance. Industry experts say that should the bars still be on the shelves this time next year, then Wispa is here to stay and consumer power has converted into sales.
Therefore, the recent news of facebook's new advertising platform shouldn't come as much of a surprise. This is a good thing. More consumer involvement with a company's product range or service means that consumers are far more likely to want to buy the product and then pass on the word to friends rather than having a product they don't really want pushed at them: good news for a company. This gives facebook a new role, as market research tool and marketing channel. The examples of HSBC and Cadbury offer the strongest proof yet of consumers' passion for brands, their willingness to be heard by marketers and to spread the message on.
The internet's original marketing tool, word of mouth is on the up...and so is the consumer...
Control has clearly shifted. In the pre Internet days, companies could dictate company policy with little, though admittedly some regard for the consumer interest. With the vast amount of product information now available online, companies are having to quickly adapt themselves around their consumers like never before in an almost level playing field.
So does this change advertising for the better? Well, yes. It means that companies now have to develop and create products with more consumer input influencing the final product or service at every stage of the process. The final out come is a product or service which is truly relevant to the consumers' needs, that marketers really do fulfil their role as 'the voice of the consumer through the organisation'.
Take the recent example of HSBC in August when it decided to charge fees for student overdrafts. Consumers, headed by the NUS, hit back hard through facebook groups and networks and other social networking sites such as MySpace, forcing HSBC in to retreat, and eventually scrapping its new scheme. There are however, more positive examples of companies building themselves more closely intune with their consumers. Cadbury's recently relaunched 23m special edition Wispa bars due to popular demand with almost 14000 users having signed onto 93 different bring back Wispa groups, declaring their allegiance. Industry experts say that should the bars still be on the shelves this time next year, then Wispa is here to stay and consumer power has converted into sales.
Therefore, the recent news of facebook's new advertising platform shouldn't come as much of a surprise. This is a good thing. More consumer involvement with a company's product range or service means that consumers are far more likely to want to buy the product and then pass on the word to friends rather than having a product they don't really want pushed at them: good news for a company. This gives facebook a new role, as market research tool and marketing channel. The examples of HSBC and Cadbury offer the strongest proof yet of consumers' passion for brands, their willingness to be heard by marketers and to spread the message on.
The internet's original marketing tool, word of mouth is on the up...and so is the consumer...
