Case how they became so popular. 4,

Case Study on the Pinterest’s

Name: Ankesh Gupta

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Q:1 Analyses the forces in the marketing
environment that have contributed to Pinterest’s explosion in popularity?

answer: Pinterest’s explosion in popularity is
Basically due to the market environment, which consists of the actors and
forces outside marketing that affect marketing management’s ability to build
and maintain successful relationships with target customers. marketing
environment is of two types: microenvironment and macroenvironment, which
farther states that macroenvironment is consist of larger societal forces that
affect the microenvironment in different ways, and the macro environmental
factors are the forces which contributed to the Pinterest’s explosion to the

Furthermore, the macroenvironment’s forces or
factors are as following:

1, Demographic: it is the major interest to
marketers because it involves people and people make up markets, additionally
80 % of the Pinterest users are women most between the ages of 25 and 54.

2, Economic: it consists of economic factors that
affect consumer purchasing power and spending patterns because markets require
buying power as well as people.

3, Technological: these are the forces that
create new technologies creating new product and market opportunity, the
development of the web and at that time social media was unable to fulfill the
demand for the user then Pinterest came along and solved their problem by
filling those gaps between social media and customer’s need that’s how they
became so popular.

4, cultural: there made their website in such way
that user can express themselves in any way and they can have excess to the
never-ending series of the photos on the website.


q2,  why
has Pinterest demonstrated such a high influence on consumers decision to
purchase products?

answer: Pinterest has created a totally different
solution for the customer’s and they can represent themselves in any way, they
get to choose their own boards and if they like to make some collection on the
website, they can collect the stuff and pin into a board, also the CEO of the
company says “you should feel like you’ve walked into a building full of
stuff, everything should feel handpicked for you”. Moreover, customers
they are finding everything in one place, people can easily find items just by
doing a research or paying opinions leaders to pin an image of their product,
for example,  pay Satsuki Shibuya a
designer with more than a million followers, between $150 to $1200 per image
and because of pinter’st authentic feel its almost impossible to tell the
difference between paid pins and unpaid pins-something cant be said of other


Q3, Discuss ways that companies can use Pinterest
to build their own brands and general sales?

answer: Companies, they can create a Pinterest
page, they can also pay opinion leaders to put their pin to the order to
increase the sales, but  their pages
should be traditional regular pages instead of high fancy stuff like. in the
end if more products are pinned companies will make more sales eventually end
up in making profit.


Q4, What are some threats that Pinterest faces in
the future?? Give recommendations for dealing with those threats.


1, There are so many other social media sites
have taken note of Pinterest and numerous copycats like Fancy and Polyvore have
mimicked pictures look and feel, right down to the font selection. Therefore
Pinterest has to stay top in creating new ideas for their site to compete their

2, Basically Pinterest is not generating any
revenue, instead focusing on building its base. It is a clear point that they
are not focusing on advertisement, otherwise they could have made a lot of
money, addition to there is an analyst who estimated that Pinterest would have
generated around $500 million if they had done any advertisement in 2016, but
they did nothing regarding this, which leads us to think that any company who
sells advertisement can ruin the Pinterest.

The recommendation on this, that Pinterest could
also adopt a referral fee model retaining a percentage of the sale price of
every item sold as the result of a pin.

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