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Strategy report
TO: Proximity Social Networking Team FROM: Michelle Herndon DATE: October 25, 2009 SUBJECT: Twitter Strategy Report

This is my Twitter strategy analysis report. Although Twitter is just one of many social networking sites now dominating the web, many analysts believe it has become the choice platform for posting opinions and responses to issues. However, Twitter’s ability to maintain funding and customers will dictate whether it will become Gen Y’s social network of choice.


 * Profile **

Twitter is a social networking site that allows users to update and review 140-character messages at no cost. The users can send a //tweet// and it will be posted on their page as well as the pages of their “followers,” or individuals who subscribe to the author’s page. Most of Twitter’s users are older adults, with only 11% between ages 12 to 17 (Wikipedia, 2009).

Twitter, founded by Jack Dorsey in 2006, was originally given the codename of twttr, to resemble and draw attention from the popular site Flickr (Wikipedia, 2009). Twitter’s funding is from venture capitalists, including Institutional Venture Partners, Benchmark Capital, and Insight Venture Partners; and is estimated around $57 million (Wikipedia, 2009).

The main competitive force that drives Twitter is the rivalry among existing competitors. With dominant social networking sites like Facebook and MySpace, Twitter has to create its own band of followers (Chef, 2009). Although it is becoming a widely used site, it is still limited in the amount of information an individual can disclose or tweet, unlike some of its rivals. Likewise, some analysts believe Twitter’s downfall will come from its lack of funds (Wikipedia, 2009). Most social networking sites are merely fads and are quickly replaced as soon as something new and better comes along.
 * Competitive Landscape **

Twitter has been criticized for its inability to generate revenue funds; however, it has, “left many critics silent by continuing to grow” (Lavrusik, 2009). Twitter’s plan to ensure its survival focuses around getting support from big business and a continuing growth rate. According to one PR firm, Twitter has become the social-network of choice to most Fortune 100 companies (Lavrusik, 2009). This will greatly affect the survival of Twitter as smaller companies will also want to use the site as their media platform. Twitter has been standing its own ground, as it has been implemented as a job search tool (Lauby, 2009). Businesses are now using Twitter to promote legislative awareness and financial information (Lauby, 2009). The easy-to-use features of Twitter have drawn a great deal of attention not only from casual social-networking site users, but from business professionals as well
 * Twitter’s Business Strategy **

As of June, Twitter had 23 million users, which was a 16% increase from the month before. This suggests that the need for Twitter is abundant among the American public as well as the corporate world. Twitter gets free media coverage that promotes the site to new potential users. With its current growth rate, Twitter is on its way to being a major social networking site for years to come.

Although there are numerous social-networking sites, Twitter is very attractive and beneficial to Gen-Y. It offers users a way to connect on a personal and professional level. With its recent expansion internationally, Twitter has quickly grown in popularity and usefulness. I do believe, however, that it will need to expand its revenue if it hopes to remain a competitor with its opposing social-networking media. With better funding, Twitter has the potential to be a top player in the social-networking society for Gen-Y users.
 * Gen-Y Implications **

 Chef, Tad. (2009, September 4). Twitter Friday: Is Twitter the new RSS? //SEOptimise.// Retrieved September 23, 2009 from [] twitter-the-new-rss.html
 * References **

Lauby, Sharlyn. (2009, August 27). How to: Leverage Twitter for Hiring. //Mashable: The social media guide.// Retrieved September 23, 2009 from []

Lavrusik, Vadim. (2009, August 4). 5 reasons why Twitter’s growth cannot be stopped. //Mashable: The social media guide.// Retrieved September 23, 2009 from http://mashable.com/2009/08/04/twitter-continued-growth/

Wikipedia. (2009, September 19). Twitter. Retrieved on September 20, 2009 from http://en.wikipedia.org/wiki/Twitter

Blog proposal
TO: Proximity Social Networking Team FROM: Michelle Herndon SUBJECT: Blog Post Proposal DATE: October 25, 2009

I propose that we do our Proximity blog post on the implementation of social networking sites as business tools. The post will be useful in directing our clients to the multiple benefits of using social networking sites. Businesses all over the country are starting to use social networking sites as a way to connect with employees and customers. The sites can be used as a means for communicating important information, developing interpersonal relationships, and as job search tools. I believe we should organize the blog post around the Social Media Blog: Social Media for Business development. We can also incorporate slide shows that explain how social networking is beneficial for businesses. [] []
 * Rationale **
 * Sources **

Report proposal
TO: Proximity Social-Networking Team FROM: Michelle Herndon DATE: November 18, 2009 SUBJECT: Proposal for report of Facebook

Facebook has been a popular social-networking site used by college students for years. However, now older adults are starting to use the site, as well as businesses, both local and international. I propose to write a report addressing how businesses are using Facebook to promote themselves and why it is good and/ or bad.


 * Need**

Advertising for companies is becoming expensive and redundant.


 * Businesses are promoting themselves on social-networking sites like Facebook because it is free


 * Using Facebook to advertise products and events allows for easier access to a broader market of potential customers.


 * Facebook provides an efficient way to connect with customers and employees locally, nationally, and internationally

Clients of Proximity who wish to expand their businesses by bringing in a new Gen- Y customer base need this report to understand how to use social-networking sites, such as Facebook, to promote themselves.


 * Topics**

The report I propose, “Facebook in the Business World” will cover the following topics:


 * What Facebook is and how it generally used


 * How businesses/ business professionals are using Facebook to promote themselves


 * How using Facebook can improve/hinder business


 * Specific examples of companies using Facebook currently


 * Sources**

The following are key sources for the report.

Assay, M. The business world is changing…Facebook style. (2007, November 15). //Cnet News: The Open Road.// Retrieved November 18, 2009 from []

Assay discusses the variety of uses of Facebook for business professionals. Facebook can be used to reconnect with old classmates and peers, as well as connect with clients all over the country and world. Also, Facebook provides fellow employees a way to contact each other easily as well as develop personal relationship, which can lead to more production in the workplace. The author agrees that Facebook is a must for a thriving business in today’s world.

Berry, M. When worlds collide: Facebook in business. (2007, July 24). //The Huntington Post.// Retrieved November 18, 2009 from [] berry/when-worlds-collide-face_b_57671.html

Berry discusses how businesses are joining Facebook because it is where the “cool kids” are (Berry, 2007). Business professionals desire to join Facebook to show they are up to date with the current trends and to be connected with younger members of society who are joining the workforce. However, Berry argues that Facebook and business should not mix. Facebook is considered private and should not interfere with the workplace.

Doan, M. Businesses befriending Facebook. (2009, March 13) //The Kiplinger Letter.// Retrieved November 18, 2009 from [|http://www.kiplinger.com/businessresource/forecast/archive/more_firms_using_fa cebook_090313.html]

Doan argues that while Facebook is useful for businesses, it also come with some headaches. Doan explains how Facebook can be used to make new sales contracts, recruit employees and increase a company’s profile. Facebook allows companies to spread the work through the “electronic word of mouth.” However, it is takes some getting used to for new companies just joining the social-bandwagon, including figuring out how to navigate through the site as well as the dilemmas of creating fan pages.

Roeder, L. What is Facebook.com? What does Facebook.com have to offer? (2009). //About.com//. Retrieved November 18, 2009 from []

This article discusses the pros and cons of Facebook itself. Pros include: keeping track of friends, photo albums, excellent search browsers, and blog merging. Cons include: no music, no chatroom, and no video. However, Facebook is updating some of these features currently and will allow users to interact in more ways. The author explains the basics of Facebook for new users. Usha. Facebook: An effective marketing tool. (2009, April 13). //TechnologyGear.net//. Retrieved November 18, 2009 from [|http://www.technologygear.net/facebook-an- effective-marketing-tool.html]

Usha argues the usefulness and popularity associated with Facebook. Facebook has approximately 200 million active users with annual revenue of $150 million, according to Usha. With the enormous user base, there is great marketing potential for businesses on the site. Also, with its growing revenue, the site looks to remain active for years to come, making it a reliable investment for businesses.

Team conference presentation proposal
//-Why should Businesses, both local and global, use social-networking sites? -Which social-network sites are being used the most? -How can social-networking sites expand businesses? -How can social-networking sites hinder businesses?//

Sales letter and report prospectus
December 1, 2009

Mr. John McGillie, Director of Marketing Under Armour Corporation 525 E. Church Street Baltimore, MD 21286

Dear John:

I greatly enjoyed meeting and talking with you yesterday at Proximity’s Next Generation tutorial regarding Under Armour’s necessity to promote to Gen Y customers. Attached is a prospectus for the report I referenced, detailing how social networking sites offer great marketing assistance for businesses.

As you mentioned in our meeting, Under Armour believes that it must create a name for itself among Gen Y users in order to become a family-used brand for future athletes. I feel that Proximity can work with you to develop a wide-ranging operation that will use social networking sites to promote to Gen Y users, and thus achieve your goal.

Proximity can provide you with comprehensive surveys and focus group results to help improve Under Armour’s image as the athletic apparel of choice. We can provide assistance with marketing new products. Also, we have a large student-marketer population and faculty expertise who can promote on social networking sites. Our past successes reveal that using student representatives to friend social networkers is an effective strategy for reaching Gen Y customers without paying for traditional advertisements.

I invite you and your staff to join us at Proximity’s Towson University office for a specialized focus group meeting on Under Armour’s Gen Y image. After the meeting, you can convene with member of our organization to discuss how Proximity can help you achieve your marketing ambitions.

Sincerely, Michelle Herndon Associate Media Analyst

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