Developing a Social Networking Product - Research Proposal Example

This paper is a project proposal regarding the MySpace Social Networking Website. Developing a Social Networking Product (MySpace) Name Name of University Abstract This paper includes a brief description of myspace.com as our case study and the project proposal that would be based on four main sections. 1- Gap Analysis on "Target Customers" and "Market Forecast". 2-Product Concept (Marketing Mix) 3-Business Analysis (Market Forecast, Development Stage Plan, Key resources at each stage) 4-Product Development Plan (Timescale and Stages, Test plan, Launch plan) Introduction to MySpace dot com "MySpace is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos internationally."(Wiki Encyclopedia, 2007) MySpace provides many interesting features which make it a popular media such as Bulletins, Groups, MySpace-IM, MySpace-TV, MySpace-Mobile, MySpace News and MySpace Classifieds. However, there are some critics regarding child safety and social and cultural issues which require more attention and modification in the corporate policy. 1. Gap Analysis The aim of this section would be to help marketing managers at myspace.com to make their decisions based on marketing strategies and tactics. The main issues to have the Gap Analysis on are "Target Customers" and "Market Forecasts". MySpace is presently known as the world's sixth most popular English-language website and also the third popular website in the United States. Therefore it is needed to have a comparison between the first goals of MySpace comparing the current target customers. We need to know who uses MySpace now and who makes a benefit of it. Gap Analysis helps us to do this comparison and close the gaps using tactical approaches. MySpace influences the market too. People join this web site for free and they can get a personalized website for themselves trying to promote their products to millions of people whit out paying money to rent a domain or to pay a lot of cash to build a website. For example in music industry, "bands that have no money to invest in marketing can now expose their homemade sound to a pretty big demographic, the entire world. Bands can customize their site and update it with new music, tour dates, pictures, friends, and blogs about different topics." (Minor, 2007) There are also copyright issues caused by the users who place copyrighted content on the website and gain the access of the product to millions of people for free which needs Gap Analysis. Also the share of MySpace in the market can also be considered. Using market forecasts, we can have a review on future numbers, features and tendencies of the MySpace market and the influence on other markets. 2. Product Concept In Marketing Mix, "The major marketing management decisions can be classified in one of the following four categories: Product, Price, Place (distribution) and Promotion. The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering. Product decisions include aspects such as function, appearance, packaging, service, warranty, etc."(QuickMBA, 2007) MySpace is a service which functions as social networking website, providing the opportunity for people to get closer to each other, form communities and share the information of their interest. "Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing." (QuickMBA, 2007) MySpace not only provides its services at no charge for consumers but it helps millions of people to promote their own product and services for free and helps them make a huge amount of money and this makes it very popular and growing. "Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Distribution decisions include market coverage, channel member selection, logistics, and levels of service." (QuickMBA, 2007) MySpace today is not only limited to English language. The website is in development in many other languages. This provides the ability of market coverage to all over the world. At MySpace, choices and interests are classified and in order. "Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. Promotion decisions involve advertising, public relations, media types, etc." (QuickMBA, 2007) At MySpace, the promotion usually happens by communication between old and new members. New members get motivated to join MySpace to be more in touch with old friends and communities. 3. Business Analysis "Business analysis helps an organization to improve how it conducts its functions and activities in order to reduce overall costs, provide more efficient use of resources, and better support customers. It introduces the notion of process orientation, of concentrating on and rethinking end-to-end activities that create value for customers, while removing unnecessary, non-value added work." (Wiki Encyclopedia, 2007) Reports indicate that MySpace is the leader of social networking websites by 82 percent visitors among 20 similar websites and forecasts show that the number of visits is increasing every year. MySpace is still in the development process and it is emerging new technologies such as WEB 2.0 and for example its own streaming technology. "MySpace is beginning to create its own ecosystem of third-party companies that are developing features and applications for the giant digital community, according to a new report from analyst Richard Greenfield of Pali Research. He says the idea is to encourage other companies to use their creativity and expertise to come up with things for MySpace users that MySpace itself hasn't. That could be anything from letting people add to their MySpace home pages from a mobile phone or creating a slide show of their favorite MySpace photos."(Rosenbush, 2006) "The move is an important milestone for MySpace. Only the largest and most vibrant of tech communities are capable of creating that sort of network effect. Classic examples of tech companies that have created such ecosystems include Microsoft's (MSFT), with its Windows operating system, and Apple Computer (AAPL), with its iPod digital-music franchise (see BW Online, 7/19/06, "iPod Accessories Gone Wild"). Software developers have created thousands of applications on top of Windows over the years, and the iPod has generated a sizable industry of companies that create accessories for the music player and a dizzying variety of podcasts. MySpace is encouraging the development of its nascent ecosystem. "MySpace has always seen itself as a next-generation portal. There are enormous opportunities to develop in and around MySpace. " (Rosenbush, 2006) 4. Product Development Plan The effort by MySpace could help it continue its development. "One early example of an outside company that's developing special features for MySpace is the wireless upstart Helio, which is owned by Internet service provider Earthlink (ELNK) and Korean wireless broadband pioneer SK Telecom (SKM). Helio allows users to access MySpace from the mobile Helio phone with the touch of a button. Helio has exclusive rights to mobile distribution of MySpace for an undisclosed period of time. For now, its subscribers are the only mobile phone users with the ability to exchange MySpace messages of unlimited length while they are on the go. They can use their phones to snap pictures or video and wirelessly post them to Web pages." (Rosenbush, 2006) The MySpace ecosystem lets in various tools that broaden the scope of communications tools at hand. "Slide, which can be found at www.slide.com, allows users to turn content at MySpace and other sites such as eBay (EBAY), into slide shows. And a free piece of software available from MyWhatSpace (www.mywhatspace.com) lets MySpace members send messages to multiple MySpace friends at the same time. It also allows users to create subgroups of MySpace friends, and send all of the members of the subgroup a message. Neither company was available for comment." (Rosenbush, 2006) "The MySpace ecosystem remains in the early stages. It's certainly nowhere near as large as the iPod's, let alone the massive one around Windows. But it's an encouraging sign for a business that has lots of users but relatively little revenue. As MySpace helps other companies create revenue for themselves, its ability to attract and retain members should be strengthened, boosting its power among advertisers." (Rosenbush, 2006) References MySpace, From Wikipedia, the free encyclopedia, viewed on November 19, 2007. http://en.wikipedia.org/wiki/MySpace How Myspace Has Revolutionized the Music Industry, By Ben Minor, Published Mar 01, 2007, viewed on November 19, 2007. QuickMBA, viewed on November 19, 2007 http://www.quickmba.com/marketing/mix/ The MySpace Ecosystem, By Steve Rosenbush, JULY 25, 2006,,News Analysis < http://www.businessweek.com/technology/content/jul2006/tc20060721_833338.htm> Read More