Should Tory Burch Company advertises on Facebook?
Short Report
RWS 290, Section 10, Team 1
April 9, 2015
ABSTRACT
Tory Burch is a fashion label, launched in 2004 by Tory Burch, with the first retail store in Manhattan. Tory Burch, however, has expanded extensively; opening over 140 stores globally, with flagships in numerous cities around the world as well as multilingual ecommerce sites. Although, Tory Burch has been successful, there is need to grow it consumer base in order to reach sustainability. One way of doing so is by adopting social media marketing. This paper observes the significance of Facebook to Tory Burch in marketing, to arrive at the conclusion that Tory Burch should adopt Facebook advertising.
Should the Tory Burch Company advertise on Facebook?
Introduction
Tory Burch is a fashion label, launched in 2004 by Tory Burch, with the first retail store in Manhattan. Since its inception, Tory Burch has expanded extensively to over 140 stores globally, with flagships in several cities around the world. The company deals with handbags, ready-to wear shoes, home décor, fragrance, watches and other beauty collections. Although, Tory Burch has been successful in its business activities, there is need to grow it consumer base in order to cope with the market dynamics. One way of ensuring market sustainability that Tory Burch should adopt is social media marketing; particularly use of Facebook advertisements. Facebook is a good channel for firms to establish and take control of their communities (Gustin, 2012). Facebook advertisements help users realize the firm’s brand image and become part of the community. This paper seeks to determine whether Tory Burch should adopt Facebook advertising as a marketing strategy.
How Facebook works for advertisers
Facebook provides businesses with a number of ways to utilize its gigantic base of the user to promote, advertise their business and link up to potential and current customers (Gustin, 2012). Individuals would not find the firm’s page unless they are informed of its existence. However, there are a number of factors to consider before going on with Facebook advertisements
Advertising costs
Like other social media platforms, Facebook offer free advertising in the form of posts. However, in order to take one brand so far, it might be considerable to pay for ads. Facebook provides both cost per click, and cost per thousand impressions ads. Facebook gives a range of what the advertiser should bid for the advertisement campaign. For retail store, the average CPM cost is 1.39 dollars while the average CPC cost is 0.31 dollars (Darwell, 2013).
Facebook supports page posts Ads; advertisements that start as post on the page of a fan but gain further paid distribution. These ads require the productions of photos, links, videos, events, status and offer, in order to allow for innovative freedom (Darwell, 2013). Although the cost of producing these materials might be significant, there no other costs.
• Required materials
• Required Human resources
There no stipulated limits that have been set in place by Facebook when advertising in it. The time check is the length when the post will be live; which does the type of budget determine: either daily or lifetime that the advertiser chooses (Darwell, 2013). The deadlines are set by the advertiser.
Facebook Users
Facebook is used by nearly if not all individuals who are potential customers of some form of business. It allows individuals to reach customers of all kinds, across the globe. In addition, Facebook is both a social and business media platform that provides individuals with a means of interacting, getting aware with the products and services in the global market (Darwell, 2013). Also, a significant number of potential customers of designer goods can be identified by their activities on Facebook.
The amounts of observations toward Facebook advertising have a positive influence on the attitudes that users have towards a Facebook advertisement. In Hence, consumers tend to become unconvinced; of the advertisements that they receive or are skeptical of the message media source; and so would not be driven to process the information being received (Gustin, 2012). Thus, it is important to make sure that resources must be precisely allocated to the channels or media and sources should be clearly confirmed after knowing that Facebook users have concern about the credibility of interactive advertisements such as the ones that Tory Burch intends to post.
• Users attitudes toward social media advertisements
• Nature of Facebook advertisements
Nearly, all businesses irrespective of the industry advertises on Facebook. Facebook offers businesses a platform to generate demand for the products and services because of the high number of Facebook users. However, a significant number of them fail because they are not suitable (Gustin, 2012). Most of these businesses including those in the design industry, fail to test the new marketing channel before demand pushes prices up. Secondly, they do not ensure that their business models fit the social media platform.
Facebook’s Value for Tory Burch
• Tory Burch’s customer base
When Tory Burch initially launched her fashion line in 2004, she aimed at reaching a specific group of consumers, the baby-boomer women (Tory Burch, 2015). However, as the business grew Tory began attracting young female customers. These customers are all active Facebook users.
• Tory Burch’s social media presence
Tory is engaged in a number of social media advertising; she is active on Twitter, Pinterest and Instagram (Tory Burch, 2015). Tory Burch’s activity on Twitter, Instagram and Pinterest suggests that Tory Burch has a strong interest in social media advertising. Through her activity, it is apparent that Tory Burch want to pursue social media as an advertising channel.
• Tory Burch advertising on Facebook
Tory Burch can advertise or conceptually present its brand by focusing on audience targeting. The firm should identify potential customers and perform highly particularized audience targeting. Facebook might not be rewarding advertisers, but it does give the type of audience a company wants to reach.
Conclusion
Tory Burch should advertise on Facebook. With just clicks, Tory Burch can pick the right profile of fans for its brand and then the firm’s ad would pop instantly in the ads column or newsfeeds. Secondly, Facebook presents Tory Burch with the opportunity to strengthen the firm’s brand image, by identifying the potential customers and performing highly specific audience targeting.
References
Darwell, B. (2013). Understanding the difference between Facebook Sponsored Stories, Page Post Ads, Promoted Posts and Marketplace Ads. Social Times. Retrieved April 5, 2015, http://www.adweek.com/socialtimes/understanding-the-difference- between-facebook-sponsored-stories-page-post-ads-promoted-posts-and- marketplace-ads/288968
Gustin, S. (2012). Do Facebook Ads Work? Time. Retrieved April, 5, 2015 http://business.time.com/2012/08/07/do-facebook-ads-work/
Tory Burch. (2015). About us. Tory Burch. Retrieved April 5, 2015, http://www.toryburchfoundation.org/About-Us/aboutus-mission,default,sc.html
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