Impact of Online Crowdsourcing Marketing
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Impact of Online Crowdsourcing Marketing
Question#1
Crowdsourcing is defined as the method of using collective intelligence that is often gathered from the public and later use the information in completing some business tasks. Many companies are attracted to crowdsourcing since it helps in expanding their talent pool. Crowdsourcing further allows a company to gain some insights concerning the desires of their customers.
Starbuck restaurant has been the leading organization in crowdsourcing marketing. In this case, the organization has created a platform in many social media channels, which is open to everyone, and all people have a chance of viewing the ideas of others. This Starbuck platform has further allowed the interaction of customers in which the customers vote for ideas and comment about Starbuck services. Starbuck is able to get a direct line into customer’s interaction through the site, which further allows the organization to derive some ideas about the concerns that should be addressed in order to help attain customer satisfaction (Ahearne, 2009). Besides, the Starbuck crowdsourcing technique has allowed the organization to formulate some strategies, which have helped in building its management to stand out as the best company. For instance, one of the ideas that were initially posted by a user on the Starbuck site involved a suggestion of paying services via phone at a drive-thru of Starbuck restaurant. People further started voting towards the proposal and leaving their comments that encouraged the adoption of the idea. Through the generation of various ideas from customers, Starbuck was able to work and implement the strategy of paying through the phone. This allowed Starbuck to build its company brand image and, at the same time, satisfying the needs of its customers.
Question #2
Several large firms are actively engaged and dependent on idea generation from the customers. For instance, Starbuck interacts with its customers through various social media platforms such as YouTube, Facebook, My Starbuck idea, and Twitter. The initiative of crowdsourcing was purposed on brainstorming multiple ways of developing ideas, which would lead to better commercialization of products and services.
Moreover, Marketing strategy refers to an overall game plan used by companies in order to reach prospective consumers and acquiring some strategies such as internet marketing, which further turns them into customers of products and services that the company provides. However, crowdsourcing influences marketing strategy in Starbuck through the act of outsourcing the generation of ideas from customers through various social media platforms. The communication between the company and the consumers has a direct impact on planning and implementing some traditional marketing strategy (Caputa, 2018). In this case, the process of outsourcing helps in mitigating the risk of releasing an unsuccessful product. Crowdsourcing further ensures the formulation of some marketing strategies, which helps in producing a product and services that consumers want or desire.
Nevertheless, crowdsourcing has enabled Starbuck to draft new project designs. In this case, the company has been able to cut expenses that are often spent on marketing products. In this case, several tasks have been completed through the crowdsourcing sites at a lower cost.
Question#3
Through the mobile app technique, audiences are able to fill out surveys. More stars are given to customers with each filled survey, which further increases app usage resulting in more sales. The mobile phone campaign strategy has led to an increase in customer loyalty, lifetime value, and retention.
Nonetheless, social media platforms campaigns have helped in promoting Starbucks ‘ branding and awareness. Starbucks ‘ customers have been sharing the company’s page through some social media platforms such as Facebook and Instagram. This has assisted in creating awareness concerning the company’s products and services, which in turn has resulted in more followers who are converted to customers (Khajuria,2019). Branding awareness has helped in building the company’s image.
Additionally, the social media platform has helped Starbuck to understand its customer’s needs (Mudzakkir,2015). This is because social media platforms have allowed the customers to share their insight about the company’s services. Acquiring customer’s insights has helped Starbuck to see the potential in the opinions of customers and network with them in order to provide services and products that will satisfy them.
Moreover, Starbuck has been enabled to run on a fixed marketing budget through social media campaigns. This is because social media platforms such as Facebook, Twitter, and Instagram are considered as the most cost-efficient methods of marketing and promoting Starbucks ‘ products and services. In this case, the company shares its content at no cost. The affordability of the social media platform has helped Starbuck to share most of its content online, which has further helped in acquiring prospective customers and more sales.
Additionally, social media campaigns have helped in developing business tactics in Starbuck restaurant. This is because, through social media such as LinkedIn, Twitter, and Facebook, Starbuck has the opportunity to show its services, which further helps in grabbing the attention of many consumers. This has allowed Starbuck to build a robust online presence through innovative social media marketing techniques. Thus, it assists the company in attaining satisfaction from the offered products and services.
Work Cited
Ahearne, M., & Kothandaraman, P. (2009). Impact of outsourcing on business-to-business marketing: An agenda for inquiry. Industrial Marketing Management, 38(4), 376-378. doi: 10.1016/j.indmarman.2009.03.004
Caputa, W., & Paździor, A. (2018). Crowdsourcing – a new cooperation or customer’s organization in the value creating process. Scientific Papers Of Silesian University Of Technology. Organization And Management Series, 2018(132), 119-129. doi: 10.29119/1641-3466.2018.132.7
Khajuria, I., & ., R. (2019). Social Media Marketing in Creating Brand Awareness and Brand Trust. MANTHAN: Journal Of Commerce And Management, (1). doi: 10.17492/manthan.spl19.1
Mudzakkir, M., & Nurfarida, I. (2015). The Influence of Brand Awareness on Brand Trust Through Brand Image. SSRN Electronic Journal. doi: 10.2139/ssrn.2670597