MGT502: Analyzing the Positive Financial Impact of Facebook

This report examines the positive financial impact of Facebook on businesses, focusing on how the platform can drive financial growth. It highlights key aspects such as reaching potential consumers, reducing marketing and advertisement expenses, competitor analysis, building brand awareness, and increasing website traffic. The discussion emphasizes the benefits of using Facebook for effective marketing strategies, connecting with customers, gathering feedback, and managing budgets. The report also explores how businesses can use Facebook to monitor competitors, enhance brand awareness through targeted advertising, and drive traffic to their websites. The conclusion reinforces the idea that Facebook can significantly impact business ventures by reducing costs and fostering growth. The report includes several references to support the arguments presented.

Running head: THE POSITIVE FINANCIAL IMPACT OF FACEBOOK
THE POSITIVE FINANCIAL IMPACT OF FACEBOOK
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2THE POSITIVE FINANCIAL IMPACT OF FACEBOOK
Introduction
The essay is going to be discussed on the financial impact of Facebook is good for every
business venture. The argument is set on the positive side of utilizing social media as an effective
platform so that the readers can understand the basic concepts where all the businesses can make
a profit. Thus, the primary objective is to provide an analysis on the positive side of utilizing
Facebook for incurring financial impact on the large as well as small businesses.

3THE POSITIVE FINANCIAL IMPACT OF FACEBOOK
Discussion
There are some essential positive aspects that help in utilizing Facebook to gain more
profits and growth in the upcoming future, including reach the potential consumers, lower
marketing and advertisement expenses, competitors, brand awareness, and increasing website
traffic.
Firstly, social media is the largest platform to distribute goods and services through
effective marketing strategies. Mainly, Facebook is holding up to zillions of followers through
all the businesses whether small or large, can get connected easily (Marshall, Krance & Meloche,
2017). Thus, connecting with the potential will allow low marketing costs due to which all the
businesses can incur more profits and will be able to invest in other essential aspects. In this way,
it will help the companies to reach their customers easily and they can communicate with them
smoothly. Thus, it will help the owners of the company to gather useful feedback from the
customers without losing a penny; they can develop a new structure and can budget their
expenses.
Secondly, most of the businesses always lookout for a secure market structure, where
they can spend less amount of money and they can manage all the investments according to their
budgets. They set a good cover photo that will help the customers to understand the products and
will be able to successfully connect with their customers at a minimum cost (Ahmed & Ibrahim,
2016). For example, a jewelry shop can provide pictures of their shops and services and will be
able to reach their individual budget. In this way, they do not need to put up any hoardings to
spend more money and will be able to gain more profit.

4THE POSITIVE FINANCIAL IMPACT OF FACEBOOK
Thirdly, businesses need to cope with their individual products and services by
maintaining a neck to neck competition with their rival companies. Thus, all the companies can
easily look into other competitors and will be able to continuously keep the track record of their
sales department, production, and target audience and so on (Khalique, bin Shaari & Isa, 2015).
They can effectively utilize better concepts and strategies to involve new strategies and
innovation to their products. Facebook will even notify the companies about their latest updates
and practical resources to deal with it.
Fourth, brand awareness is the ultimate objective that all the companies are willing to do
in their every campaign. It occurs through various advertisements and policies that will help the
company to focus on the estimated target. They show an effective advertisement to all the
customers and Facebook serves as the best platform for all the companies to motivate their
customers by displaying their goods and services effectively regarding the quality, quantity and
other characteristics in that product (Swani, Milne & Brown, 2013).
Fifth, increasing website traffic is one of the primary and influential factors through
which the organization can be influence positively such as promoting their activities and goods
and services on social networking sites. Customers should be provided with an email list
regarding a query or any kind of essential feedback (Macarthy, 2018). The organization can
reach the customers by providing less content and most of the customers will assume that it
allows for better information than any other organization. Thus, all the organizations will tend to
boost their excellent posts for developing more engagement of the consumers. They can easily
remarket traffic by setting saved audiences so that increasing their website traffic as quickly as
possible.

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Conclusion
Thus, in this way, Facebook will help in delivering more amount of goods and services
and positively impact business ventures. It will reduce its advertisement cost and production cost
as well. It will benefit in spying on different competitors and will help to apply new strategies to
involve customers for distributing their goods and services. Thus, in this way, it will aid the
companies to benefit more profit and will secure active growth in the upcoming years. Therefore,
all the above influential factors will help to determine their growth more profoundly and will
secure them with immense profit.

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References
Ahmed, A., & Ibrahim, M. (2016). Business value of Facebook: A multiple case study from a
developing country. Pacific Asia Journal of the Association for Information Systems,
8(4), 4.
Khalique, M., bin Shaari, J. A. N., & Isa, A. H. M. (2015). A Study on Consumers' Attitudes
towards Purchasing Decisions through Facebook in Malaysia. In Asian Business and
Management Practices: Trends and Global Considerations (pp. 76-84). IGI Global.
Macarthy, A. (2018). 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for
Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
Marshall, P., Krance, K., & Meloche, T. (2017). Ultimate Guide to Facebook Advertising: How
to Access 1 Billion Potential Customers in 10 Minutes. Entrepreneur Press.
Swani, K., Milne, G., & Brown, B. P. (2013). Spreading the word through likes on Facebook.
Journal of Research in Interactive Marketing.