Importance of Facebook Reviews for Business Growth and Strategy Implementation

This literature review explores the importance of Facebook reviews for business growth and strategy implementation. It discusses the significance of using Facebook as a marketing tool in the retail industry of London, UK. It also examines the strategies to determine the importance of customer reviews and how companies can highlight the best reviews related to their offered products.

Short Literature
review
(Importance of Facebook reviews for the business
growth and implementing new business strategy)
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Contents
LITERATURE REVIEW................................................................................................................3
Introduction to Literature Review....................................................................................................3
Main Body.......................................................................................................................................3
What is the significance to use Facebook as a marketing tool in retail industry of London, UK?
.....................................................................................................................................................3
How do you determining the importance of customer's reviews company will also develop
strategy that helps to regain customer?........................................................................................4
What are the strategies through which company highlight customer's best review related to
offered products?.........................................................................................................................5
Conclusion of Literature review......................................................................................................6
REFERENCES................................................................................................................................7
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LITERATURE REVIEW
Introduction to Literature Review
Literature review is an important and significant part of the research as it support
investigator in gathering or collecting of secondary information regarding the topic from a lot of
sources such as books, articles, magazines, publication research etc. All these are useful and
valuable secondary sources that supports investigator to gather in-depth and accurate information
about the specific area of study (Machi and McEvoy, 2016). Main purpose of literature review in
research is to identify gap or consequences in previous study. Within a current investigation,
main gap is the importance of Facebook reviews for the business growth and implementing new
business strategy. In previous studies, there was information or data about the significance of
Facebook review but there was lack or no data available about its importance over business
growth and in implementation of new business strategy. In order to overcome this gap, research
questions will be used because it helps researcher in explaining of entire information about the
topic. Along with this, research questions will also support researcher in achieving of research
aim and objectives within limited time period. Research questions according to the existing topic
will be explained as below:
Main Body
What is the significance to use Facebook as a marketing tool in retail industry of London, UK?
According to the Coombs (2020), Facebook is an effective platform of marketing that will
support an organisation in promoting of their products and services easily. Facebook marketing
introduces as a platforms that provides a variety of extremely targeted paid advertisements as
well as organic posts, allowing companies to put their services and products in front of the
massive audience. There are number of ways for using Facebook as a marketing tool such as
marketing the most of their Facebook business page, Facebook advertising, hosting Facebook
contents, Facebook promoted posts etc. All these are effective use of social media that will
support an organisation in promoting of its products as well as services easily. Offline retailer of
London, United Kingdom now considers Facebook as well as social media marketing as a
requirement, not a luxury. With a small market research and planning, retail industry can use
Facebook mainly to exponentially raise their sales and brand awareness. By using Facebook as a
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marketing tool, it will be essential and significant for retail industry by increasing their brand
awareness and also support them in attainment of competitive benefits easily.
On the other hand Sherman (2019), there are number of benefits gain by retail industry i.e.
Marks & Spencer by using Facebook as a marketing tool. These benefits are customers spend
most of their time on Facebook, Facebook advertising is the most targeted form of advertising,
Facebook Advertising is the cheapest form of advertising, Facebook advertising is fast, Facebook
advertising increases brand awareness, increases website traffic, increases revenue, sales, and
leads, increases your customer attribution, lower their cost per acquisition, engage their website
visitors, builds engagement, increases word-of-mouth and referrals, grow their blog traffic,
increase their SEO rankings, help them to break into new markets, give business an edge on
larger businesses etc. All these are major benefits and advantages gain by retail industry by using
Facebook as a marketing tool. This turn to help them in attainment of its long term goals and
objectives as well as also sustaining strong position in marketplace.
How do you determining the importance of customer's reviews company will also develop
strategy that helps to regain customer?
According to the Neirotti, Raguseo and Paolucci, (2016), Customers review is the process of
ascertaining feedback about their experience. This includes determination of the views about the
aspects such as how it feels from the consumption of product, you will recommend the same to
someone or not and further what suggestions will you provide to improve the current offerings.
The large number of benefits are associated with the point of customer review and feedback.
This provides an opportunity to an organisation that ascertain the number of aspects that have
negative impact and overcome the same through adoption of effective strategies. Customer
review also help in determination of actual trends exist in industry so an organisation further will
make changes in their offering accordingly to gain competitive edge. The process of customer
review works as communication strategy for an organisation in respect to building effective level
of coordination and relation. This provide the opportunity to gain the trust of employees as they
have belief that their reviews will be taken seriously by an organisation and further made the
changes in their products. In future, this has positive impact in respect to building of long term
relation where easy for an organisation to retain their existing customers along with attraction of
new one.
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As per the view presented by Ramanathan, Subramanian and Parrott, (2017), The best and
effective promotion is mouth to mouth of which benefit will be taken by an organisation in this
situation. The end impact of such review system has large number of positive impacts such as
improvement in profitability, high customer base, high level of productivity, ascertainment of
competitive edge and good brand name. This aspect contributes in attainment of sustainability
within the business along with opportunity to expand in new areas to capture large share of
market. In today’s environment there are numerous number of channels through which an
organisation gains the views of customers. The benefit of these channels not end here. This
further aid in promoting the offerings along with determining the views of customers about the
products of competitors. This will benefit an organisation like M&S to build the strategies that
help in attainment of goals along with filling of gap that creates the difference between consumer
attraction and product consumption.
What are the strategies through which company highlight customer's best review related to
offered products?
As per the opinion of Pansari and Kumar, (2017), In current period of time, large number of
channels and strategies exist through which an organisation can gain the views of customers.
This is possible because of the presence of digitalised options. In old time, not easy for an
organisation to gain the views of customer about their products. In this regard, they conduct the
researches and attain the feedbacks from retailers and some randomly selected customers. This
option never provides the accurate feedback and not even helps to know the current trends. The
impact was that the growth of an organisation is slow in market. Also, the performance of such
functions was costly in nature where they simultaneously increase the expenses of an
organisation.
According to the Sjödin, Parida and Wincent, (2016), Currently, there are large number of
channels that be used by an organisation like M&S for ascertaining the views of their customers
include Facebook, Instagram and Pinterest. These all are effective channels where large number
of customers will active from the different regions that belongs from the different categories.
This help a big organisation like M&S to get the reviews from customers at worldwide level.
There are many other many benefits associated with the use of these channels that help in
promotion of offerings along with determination of the position of own and competitors in
market. This has huge importance in exercise of strategy building where an organisation uses this
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information. This help an organisation to build the strategies that will not help to improve
competence but also aid in limiting the impact of competitor’s operation. This is cost efficient in
nature as compared to the older methods. This provides an opportunity to focus over marketing
activities from an organisation able to build unique identity at the expense least cost. The usage
of these methods has not impact over the cost of production and simultaneously aid in maintain
the pricing and profit margin. In overall manner, these methods are present as opportunity in
front of an organisation like M&S to attain large market share and establish themselves as a
market giant.
Conclusion of Literature review
From the above mentioned secondary data collected for literature review, it has been
concluded that Facebook is essential and useful marketing tool for retail industry, This support
them in promoting or advertising of their products and services easily and effectively that results
in higher customer base. Along with this, customer review is also effective and valuable for
increasing brand awareness. Customer review on Facebook is effective for retail industry
because it supported them in enhancing of customer base and also increasing of brand awareness.
Different strategies used by retail organisation for highlighting best review of customers towards
the brand or product. These strategies are Facebook, Instagram and many other social media
tools.
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REFERENCES
Books and Journals
Machi, L. A. and McEvoy, B. T., 2016. The literature review: Six steps to success. Corwin Press.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market
positioning. International Journal of Information Management. 36(6). pp.1133-1143.
Pansari, A. and Kumar, V., 2017. Customer engagement: the construct, antecedents, and
consequences. Journal of the Academy of Marketing Science. 45(3). pp.294-311.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management.
Sjödin, D. R., Parida, V. and Wincent, J., 2016. Value co-creation process of integrated product-
services: Effect of role ambiguities and relational coping strategies. Industrial
marketing management. 56. pp.108-119.
Online
Sherman, 2019. Benefits of Facebook Advertising: How Facebook Ads Help.. [Online] Available
through < https://www.lyfemarketing.com/blog/facebook-advertising-benefits/>
Coombs. A., 2020 Ways Retail Brands can use Facebook for Marketing. [Online] Available
through
<https://www.shoplo.com/blog/6-tips-retail-marketing-facebook/#:~:text=Facebook
%20catalogs%20allow%20retailers%20to,your%20online%20store%20for
%20purchase.>
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