Review of Paper on 4Ps to 4E’s of marketing in the wine industry

1

Case Study Analysis SAMPLE 1

Content

1. Introduction.. ........................................................................................................... 3

2. Firm-directed and self-directed driver on brand community .................................. 3

2.1 The advantage of self-directed driver on brand community …………….….….4

2.2 The disadvantage of self-directed driver on brand community ….……………4

2.3 The advantage of firm-directed driver on brand community ..…………..……5

2.4 The disadvantage of self-directed driver on brand community……………….6

3. Suggestions. ............................................................................................................ 6

4. Conclusion .............................................................................................................. 6

5. Reference ................................................................................................................ 7

5.1 Appendix…………………………………………………………………………..9

2

1. Introduction

According to Statista (2019) the number of Facebook monthly active users hit 2.32

billion at the end of 2018. Since Facebook started up at 2004 until now the number

of users are increasing sharply and it is the biggest social networking company in

the world. This Journal article was discuss about the positive impact with firm-

directed and self-directed strategy on Facebook, and in depth analysis the strength

and weakness between opinion leadership and opinion seeking and the relationship

with self-directed and firm-directed brand community. The author use qualitative

research method applied on 120 Facebook users, the result of survey was the most

of users prefer to believe firm-directed brand community rather than self-directed

community. And the research show the level of opinion leadership is opposite with

the influence of self-directed driver, but the opinion seekers are strong identify firm-

directed brand community. The suggestion from author was Facebook should use

self-directed drivers brand community on management may more effective to the

user from different level of opinion leadership and opinion seeking.

2. Firm-directed and self-directed driver on brand community

In the introduction part of journal article, author mentioned that Mark Zuckerberg

propose to change the New Feeds work, it will no longer emphasize news articles

and any content published by brand, only playing status updates from friends and

family on user home page. In other words, the way of management from firm-

directed transfer to self-directed on brand community (Weinberger, 2018).

But I disagree with the new strategy from Facebook. In my opinion, firm-directed

is a better than self-directed on brand community for social media platform

operation management.

3

2.1 The advantage of self-directed driver on brand community

Self-directed on brand community is the social media platform cooperate with the

brand which through social media to promote their own products build up the brand

own community and promote, sharing their exist and new products only on the

brand community, no longer play on user home page as advertisement. Firstly,

transfer to self-directed is the best way for the user who doesn’t like the

advertisement always show on their pages. According to the survey, 44% of user

said they never clicked in the advertisement on Facebook (Greenlight, 2012). Some

people feel annoyance when they see the companies using ads on Facebook to target

customer. In addition, undesirable ads create resentment toward brands that

advertise on personal social media pages (Baglione et al., 2018). The new strategy

can give the clean and tidy pages to the users who doesn’t like the advertisement.

Secondly, through brand community, the brand can introduce more information

about their product to the user, user can direct talk to the staff from the brand also

combine the user who have same interest on one community that they can

communicate to users with similar interests.

2.2 The disadvantage of self-directed driver on brand community

On the other hands, some of user are passive. Self-directed brand community only

suitable for user with always research things on Facebook and the person always

active and communicate with others on social media. But not all the Facebook user

would like to build up a community, make a comment and communicate with others,

some of user always keep silent and stay passive on social media, they only read

other user post about their daily life and interesting things as the way to relax from

a real life. Secondly, Facebook will reduce the income from advertisement. In the

end of 2018, the amount of advertising revenue reached to $16,640 million USD

4

(refer to Appendix 1). If Facebook implement the plan from firm-directed transfer

to self-directed, it will lose the advisement on their platform. It may reduce the

amount of reading for users, due to the advertisement only can play on self-directed

community, also Facebook need to spend a lot of resources to maintain the self-

directed brand community for the green internet environment.

2.3 The advantage of firm-directed driver on brand community

Firmed-directed on brand community is more reliable and trustable compare to self-

directed brand community (Demiray & Burnaz, 2019). Firm-directed is controlled

by the brand, so that user can direct communicate with the staff from brand to get

the detail and professional information. At the same time, brand can bring the better

customer service to the potential customer and understand customer needs directly

to improve products and services through the communication. According to the

research (refer to Appendix 1), 72% of consumer want the discounts or sales on

social media brand community, 60% of consumer want to see the post about new

products and service and 59% consumer want the brand can teach them something

on the post. The brand can post the discount code on the Facebook and teach the

customer how to use they are products to fulfill the user needs.

Secondly, firm-directed on brand community bring better experience to passive user.

On the social media, there have two different type of user, active or passive user,

active user always commenting, sharing and reacting with others, on the contrary

passive user only clicking, watching and viewing the post from others (Pagani,

Hofacker & Goldsmith, 2011). Firm-directed is more suitable for two types of users,

active users can discuss the brand products with staff online, while passive users

can decide whether to buy products based on other users' comments.

Last but not least, Facebook majority revenue come from advertisements, accounted

for 89% of total revenue (SHARMA, 2019). The strategy of firm-directed on brand

community is a platform for the brand build up a good customer service and

5

promote they are new products and make everyone knows the brand which to attract

the advertising partners (Ibrahim, Wang & Bourne, 2017). If transfer to self-directed

Facebook would lose a part of advertising partner due to the advertising will not be

seen by all users, it will less promotion opportunities and lost a part of the potential

customers to the brand company.

2.4 The disadvantage of firm-directed driver on brand community

There are two sides to everything. Firm-directed on brand community may play

advertisement on users' home pages may feel annoyed for some users. Also the

brand company's products vary in quality, some may sell inferior products or fake

products to customers, and some even collect customers' money online but never

deliver goods to customers, which will make users disappointed to the company and

the social media platform

3. Conclusion

In conclusion, I disagree the new strategy from firm-directed transfer to self-

directed on brand community. According the analysis from above, the advantage of

the firm-directed driver on brand community is superior to the advantage of the self-

directed on brand community. Firm-directed brand community is more suitable for

different type of user also it is an official page to make sure the quality of products

and services. It may lose the advertisement partner due to less the chance to play

advertisement on social media if transfer to self-directed brand community.

4. Recommendation

Combine both advantages and disadvantages between firm-directed driver and self-

directed driver on brand community, here have some recommendations for the

6

strategy of Facebook. First of all, not every user like ads show on their home page,

Facebook could add an ad-free in account Settings mode, when users don't want to

see the advertisement open no advertising model, the system automatically help

them advertising filtering, so that you can make the different needs of users can

enjoy the service they want, when they want to see the advertisement just turn off

the setting. Secondly, nowadays many users are directly contact the company or the

seller on Facebook to buy products, but some of users are cheated by some unethical

companies or seller with selling fake and defective products to the user, and even

some merchants will disappear after receiving the customer's money and never

deliver the products to the customer. Facebook as a third party platform, Facebook

should know whether the brand company has cheated customers, the authenticity of

the brand, strengthen the supervision and reduce the loss of users before cooperating

with the brand. To protect the interests of the customers also brings a good

reputation to the platform to attract the potential user and cooperative advertiser.

5. Reference

Baglione, S. L., Amin, K., McCullough, A., & Tucci, L. (2018). factors affecting

facebook advertisements: Empirical study. International Journal of Business, Marketing,

and Decision Sciences (IJBMDS), 11(1), 124.

Demiray, M., & Burnaz, S. (2019). Exploring the impact of brand community

identification on Facebook: Firm-directed and self-directed drivers. Journal Of

Business Research, 96, 115-124. doi: 10.1016/j.jbusres.2018.11.016

Greenlight. (2012). Facebook sponsored advertisements--44% of people say they

would 'never' click on them. Retrieved from

www.bizcommunity.com/Article/196/12/75429.html

7

Ibrahim, N., Wang, X., & Bourne, H. (2017). Exploring the effect of user engagement

in online brand communities: Evidence from Twitter. Computers In Human Behavior,

72, 321-338. doi: 10.1016/j.chb.2017.03.005

Pagani, M., Hofacker, C. F., & Goldsmith, R. E. (2011). The influence of personality

on active and passive use of social networking sites. Psychology and Marketing, 28(5),

441-456. doi:10.1002/mar.20395

Statista. (2019). Facebook users worldwide 2018. Retrieved from

https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-

worldwide/

SHARMA, R. (2019). How Does Facebook Make Money?. Retrieved from

https://www.investopedia.com/ask/answers/120114/how-does-facebook-fb-make-

money.asp

Weinberger, M. (2018). Mark Zuckerberg just made a sweeping change to Facebook

that will affect 2 billion people and tons of businesses. Retrieved from

https://www.businessinsider.sg/mark-zuckerberg-explains-facebook-news-feed-

changes-2018-1/?r=US&IR=T

8

5.1 Appendix

Appendix 1: Advertising revenue by user geography

Sources: martechtoday.com

Appendix 2: What consumers want on social consumers Sources: medium.com

9