Reflection of Information technology in Global Economy class

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Running Head: BUILDING AN ECONOMY: GOVERNMENT PLANNING VS. ENTREPRENEURIAL INNOVATION

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BUILDING AN ECONOMY: GOVERNMENT PLANNING VS. ENTREPRENEURIAL INNOVATION

Research Paper: Building an economy: Government planning vs. entrepreneurial innovation

Manchoopaporn Boonchoo

Department of Computer and Information Technology, University of The Cumberlands

ITS 832: InfoTech in a Global Economy

Dr. Segun Odion

April 9, 2021

Introduction

Entrepreneurship and innovation are key vital ingredients needed for any business venture to succeed. Entrepreneurial innovation occurs when an entrepreneur identifies an opportunity and introduces a novelty product, service or method into the marketplaces. The chief reason for an entrepreneur introducing new concepts and idea in the marketplaces is to continuously grow and make the life of the consumer better (Fink et al., 2020). According to researchers, the term entrepreneurship and innovation are closely link making it almost impossible to different the meaning and application in the real world. New and innovative digital marketing techniques that utilize the presence of millions of customers online has revolutionized the marketing world.

Detailed summary of the journal article

Social media marketing has become one of the major inventions done in the entrepreneurial world in the 21st century. The introduction of marketing of businesses on social platforms has revolutionized the marketing world (Fink et al., 2020). Instead of applying the traditional marketing tool to reach out to customers, entrepreneurs have found new innovate ways to attract an even larger customer based found online to purchase products and services. The innovations of technological programs and applications that assists in tracking the number of visits and clicks to business advertisement online have assured the entrepreneur that indeed social media platforms work in pushing brands to reach out to people (Appel et al., 2020).

The article identifies that innovation of marketing on social media platforms such as Facebook, Twitter and Instagram have changed the manner in which customer purchase products and services. The consumer journey to purchasing products and services has revolutionized because of the innovation used in marketing major brands on social media platforms. Entrepreneur have realized the power of using celebrity endorsement on social media platform to increase the presence of brands in the eyes of the consumer. For instance, major brands such as Nike and Adidas have perfected the art of using social media celebrity with billions of followers on Facebook and Instagram to increase brand awareness amongst consumers (Appel et al., 2020).

The research in the article consists of 234 Facebook funs that willingly participate in the two-wave longitudinal design to provide the actual results of the findings (Fink et al., 2020). According to the article, although social media has managed to revolutionize marketing online, the rapid rate of change in the social platforms might discourage investors. Business owners might want to use social media platforms such as Facebook to push products and services but the short-lived lifespan of adverts on the platform might discourage investments from utilizing the innovation. The article invests the long-term effect of the celebrity endorsement on selected brands on the intention of the social media intention to purchase the products and services from the brands. According to Fink et al. (2020), the author of the article, the study is first of its kind to investigate the outcome of long-term effects of entrepreneurial marketing on Facebook, which is amongst one of the leading social media platform utilized in digital marketing.

Concepts discussed and Findings

Modern day entrepreneurial marketing has change drastically from the traditional marketing used years ago to reach out to customers. The utilization of social media platforms such as Facebook has made it possible for brands to reach out to new target markets in a short period. The introduction of the internet and social media has converted the world into a small village because of globalization. According to the research conducted in the article on the impact of celebrity endorsement on Facebook on both short term and long-term period of exposure of a product or service to the customers (Fink et al., 2020). The findings in the article identified that celebrity endorsement contributes to a significant positive effect on the brand image of products and services.

The use of the Covariance-based structural equation modeling (CBSEM) identified that the short-term effect of the celebrity did not yield same results as the long-term effect (Fink et al., 2020). The accuracy of the results was not questioned as the method of analysis vividly displayed different outcomes for the two researches conducted in the article. The short terms effect of the celebrity endorsement of brands on Facebook did not have much impact on the 234 funs online. Although the Facebook users admitted of seeing the celebrity endorsement advert, they did not immediately purchase the product. Conversely, the CBSEM indicated that the long-term effect of celebrity endorsement of products and services to the 234 participants in the research yielded an increase in the purchase of the brand products and services (Fink et al., 2020). Businesses that utilize celebrity endorsement on Facebook and continuously push the product through online advertisement for a longer period will receive better profits from the marketing innovation.

Conclusion

Consequently, a majority of the people in the business environment use the terms interchangeably although the worlds have different meaning. Innovations in the marketing world has enabled businesses to reach far more customers that have the ability to purchase products and service. The traditional techniques applied by most organizations to reach out to consumers no longer work in the modern world. Marketing specialists had to innovate new techniques and strategies to reach out to the new generation. The study conducted reveal that long-term celebrity endorsement on Facebook increased sales made online by brands.

References

Appel, G., Grewal, L., Hadi, R., & Stephen, A. (2020). The future of social media in marketing. Journal of

the Academy of Marketing Science, 48(1), 79–95. https://doi.org/10.1007/s11747-019-00695-1

Fink, M., Koller, M., Gartner, J., Floh, A. & Harms, R. (2020). Effective entrepreneurial marketing on

Facebook – A longitudinal study. Journal of Business Research, 113(1), 149-157. https://doi.org/10.1016/j.jbusres.2018.10.005