Marketing and Markets in a Digital World

Marketing and Markets
in a Digital World

Contents
ASSESSMENT 1.............................................................................................................................................3
Background.............................................................................................................................................3
Theoretical Underpinning.......................................................................................................................4
The Situation at the start of the case......................................................................................................5
The case studies .....................................................................................................................................5
The Outcome/Solution.........................................................................................................................10
Conclusion ...........................................................................................................................................10
ASSESSMENT 2...........................................................................................................................................12
INTRODUCTION.........................................................................................................................................12
MAIN REPORT............................................................................................................................................12
CONCLUSION.............................................................................................................................................18
REFLECTION...............................................................................................................................................19
REFERENCES..............................................................................................................................................21

ASSESSMENT 1
Background
Facebook is American online social media as well as social networking service which
based in Menlo park, California. It was launched in 2004 on 4th February 16 years ago as well as
founder of Facebook was mark Zuckerberg. In addition to this, they are serving at global level
expect the countries in which it is blocked. Facebook can be accessed from devices with internet
connectivity such as personal computers, smartphone as well as tablets. After registering on
Facebook users can create profile revealing information about themselves. Moreover, users can
post photos, text as well as multimedia which they want to share with any other user who is
agreed to be their friend. As per the data of December 2018, it has been claimed by Facebook
that they have more than 2.3 billion monthly active users.
Facebook is world’s largest social network as they have more that 1.11 billion users. It
help in connecting with friends as well as family members and they can also share photos,
videos, text updates and many more. As users will design their personal profile and establish
relation with companies and other people to who the want. There are some mission, vision and
values of Facebook (Facebook mission, vision & values, 2020). Explanation of these are as
follows :-
Facebook mission statement – Respective Company mission is to give people power of
sharing and making world more open as well as connected. Along with this, people use
Facebook for staying in connected with friend and family for discovering what is going in world
and to share or express what matter to them. Apart from this, there are some major components
of respective company statements such as empowering people, enabling community building and
connecting the world.
Facebook vision statement – People use Facebook for staying in connection with family
as well as friends, to discovering want is going in world as well as to share & express want will
matter to them. Apart from this, vision statement of Facebook includes some other main
components such as global market scope, tools for communication, tool for communication. Tool
for discovering as well as tool for self-expression.

Facebook values – There are several values of respective company such as focus on
impact, build social value, be open, most fast, be bold and many more.
Apart from this, there are several other businesses who are using Facebook for their marketing
purpose because it will help them in doing promotion of their products as well as services in
effective manner. In simple term it can be said that social media is one of the effective which
will provide assistance to company in attracting large number of customers in effective manner.
Because most of the people are using social media tool as it will help business firms in
promoting their offering within market area in effective manner.
Theoretical Underpinning
There are several theories as well as acts which included in this case study and it will
provide assistance in managing things related to marketing issues in more effective manner.
Explanation of these theory and acts are mention below :-
PESTEL analysis – It is a tool which use for analysing macro or external forces which
an organisation is facing. Here, PESTEL stands for Political, Economic, social, Technological,
Environmental and legal. For an organisation it is important to analyse these factors in effective
manner as well as their impact also on the working of company so that positive outcomes will
gain.
Data protection act, 2018 – It is United Kingdom Act of Parliament which updates data
protection laws in UK. Moreover, Data protection act is national law which complement General
Data Protection Regulation of European Union’s as well as updates Data Protection Act 1998.
This act was developed for controlling how personal or customer information is utilise by
business firm or government bodies. Along with this, it protect people as well as lays down the
rules which are related to that how data and information related to people can be utilise. Apart
from this, data protection act is important because it gives guidance and best practices rule for
company as well as government to follow for using personal data such as regulating processing if
personal data, holding organisation liable to fines within event of breach rules, enabling data
protection authority for enforcing rules as well as protecting rights if data subject.
Porter’s five force model – It is a model which identifies as well as analyse five
competitive forces which shape industry as well as provide assistance in determining weakness

as well as strength of industry. Although, five force analysis generally utilise for identifying
industry structure in determining corporate strategy. This model can be applied to any segment
of economy for analysing level of competition and also for enhancing company profitability. It
includes five forces i.e., competition in the industry, potential of new entrants into industry,
power of suppliers, power of customers and threats of substitute products.
The Situation at the start of the case
The Facebook-Cambridge Analytica data breach occurred in early 2018 when millions of
Facebook user’s personal data as well as information was harvested without consent through
Cambridge Analytica to be predominantly used for political advertising (Fuller, 2019). In
addition, this data breach was largest known leak in Facebook history as well as data was
gathered by an app that created through Aleksandr Kogan, a Cambridge academic within 2013
and consist series of questions for building psychological profiles on users. The app will not
particularly harvest personal information of users which completed questions but also users of
Facebook friends (Palmieri III, 2019). Moreover, Cambridge Analytics sought for selling data of
American voters to political campaigns as well as help and analytics to the Tez Cruz and
campaigns of Donald Trump.
Data breach was disclosed by Christopher Wylie in 2018 who is former Cambridge
Analytica staff. This was disclosed in interviews conducted with The Guardian and The New
York Times. In addition to this within overall situation response is related to apologized for their
role within data harvesting as well as CEO Mark Zuckerberg testified within front of Congress.
These overall happenings sparked an online movement result in delete Facebook which result in
trending Twitter (Natamiharja, 2018). Thus, in simple term it can be said that this overall
situation results in negative impact on brand image of Facebook as business firms not feel safe
while using respective social media tool as their promotional strategy. Because there may be
chances of data theft and no company want to lose their personal information as well as their
customers also.
The case studies
There are several theoretical framework as well as regulation which Facebook have to
implement within their working for managing this situation of personal data theft in more
effective manner. Explanation of these are as follows :-

PESTEL Analysis – It is the framework which provide assistance to company in
analysing macro environmental factors. Here PESTEL stands for political, economic. Social,
technological, environment as well as legal factors. Explanation of these in relation of Facebook
are as follows :-
 Political factor – There are several elements include in political factors such as
government policies, tax policy, fiscal policy, labour law, funding grants, foreign trade
policy, environmental law and many more (Çitilci and Akbalık, 2020). In respect of
facebook they get involved in scandal related to data theft in 2018 due to which they
faced several political issues which impact on their goodwill and market shares. This is
happen because every nation government made strict rules and regulation in respect to
protect society personal and private data safe. So when facebook user’s personal
information was harvested without getting permission by Cambridge Analytica they
faced legal and political issues due to which respective company lose its many users.
 Economical factor – Economic factor include elements like economic growth, interest
rate, wages rates, financial capabilities, exchange rate, inflation rate, disposable income
of businesses and many more. In respect of facebook, they involved in data protection
scandal in 2018 due to which their market value get decrease around the world. In
addition to this, due to respective scandal facebook economic conduction also gets
decreased because their several users left or delete their account from respective social
media. Along with this they also faced legal issues due to the scandal which directly or
indirectly impact on their market goodwill that also affect their economy.
 Social factor – Respective factor include several elements such as population growth,
age discrimination, organizational image, demographic industrial review, cultural trends,
career attitudes and many more. In context of facebook, in 2018 they involve in data
protection scandal according to which facebook sale personal as well as private
information or data to companies without permission of users (Pestel and et. al., 2020).
Due to this they faced legal as well as political issues which impact on their goodwill.
Due to this their social factor also get affected and due to it their several users delete or
left facebook as well as now companies also not like to post promotional content on
facebook as they have fear that their personal information also get theft.