Part 1 – Consumer Behavior: How People Make Buying Decisions
I. Consumer Behavior Model: Environmental Factors
Perceptual map marketing is analyzing where a business stands with their competition within the market. When Facebook users utilize Facebook for things other than social interactions, such as business operations, one environmental factor plays a major role within the decision process. With more than two billion monthly users (Newberry, 2018), it’s a lucrative platform to host the majority of digital assets pertaining to operations. The large amount of users makes it a great way to effectively communicate with customers with such a large and popular social platform.
The price is right
When comparing the price of an average website design, a free Facebook page seems to be the go to for small businesses all over the world. The added benefit of having a Facebook tied to a website can also provide a smooth, more professional look offering an area to feature a custom URL, if the owner decides to go with one. Only paid ads cost the owner money, if they choose to utilize the service.
II. Consumer Behavior Model: Consumer Factors
During the buyer decision process, a business owner has the ability to run paid, targeted Facebook ads can be affected by various consumer factors. The biggest is the psychological motivation factor encouraging them to initial run an ad. With so many monthly active users, Facebook is an attractive tool for most pages actively aware of the marketing feature. Once the small business owner learns the tool and changes their attitude towards its potential reach, the purchase reason becomes generating new leads and eventually closing a sale with Facebook users viewing the ad.
III. Role in Involvement of Consumer Decision Making
The amount of involvement of the consumer while making or deciding against a purchase decision with Facebook is high. Since Facebook offers a platform for the business owner, or the consumer, to host their business page, the consumer has to budget the cost to run ads and decide how much the ad should run and exactly what is being used within the ad. The offering of a free business page and option to purchase ad space is appealing to the consumers, while the motivation to attract new customers and generate leads factor in to the final decision to invest in ad space. Facebook and other social media platforms host marketing opportunities to small businesses, while many juggle multiple accounts switching between personal and business. This unique relationship helps social mediums attract and retain many consumers looking for convenient and trustworthy areas to advertise.
IV. Consumer Decision-Making Process
There are six critical; steps during the consumer decision-making process. These steps are need recognition, search for product information, product evaluation, product choice and purchase, post purchase use and evaluation of product and the disposal of the product. Since Facebook and offering targeted ads to small business owners is a digital service, products can be referred to as service. Price is not a factor that discourages sales. Although Facebook ads are usually higher than all other social media, their brand and customer loyalty enables them to sell the cost per click, per impression and per ad with ease.
When small business owners discover they can build a Facebook business page for free, the idea of running ads on a network reporting over 2 billion monthly views is highly appealing and lucrative.
Search for service information
Facebook users can search the web for tons of videos, blog posts and articles regarding the effectiveness of targeted ads. The vast amount of social media personalities on YouTube and other platforms do the most marketing for Facebook. They generate leads for them while attracting their own traffic by creating how to content.
Small business owners will look at their budget, and decide how much they want to spend during a given ad campaign. Each option is closely considered, and each ad can be customized to reach a certain audience.
Service choice and purchase
There are a few options when setting up ads for business pages on Facebook. Users can start ads have specific intentions, such as driving traffic to their website or encouraging engagement while boosting posts from their pages. The flexibility of setting a daily budget accommodating everyone’s income limitations. Facebook has a unique approach to marketing these services by suggesting what posts to boost and how big of an audience the user can reach. The social platform also sends user notifications detailing these services and more, guaranteeing the message is received.
Post purchase use and evaluation of service
Traceability of a user’s ad campaigns is made easy. Facebook offers valuable insights providing information and reveals if the ad was effective or not. It’s encouraging to see the success an ad generates and how users interact with the business. Facebook makes it exciting and tempting to run continuous ads back to back to stimulate the growth and sales of the company.
Discontinuation of the service
Once an ad stops running, the can view the report showing how the ad performed. Facebook offers detailed statistics revealing what demographics viewed the content and how they interacted with it.
Part 2 – Market Segmentation, Targeting, and Positioning
The behavior segmentation of the consumer is untimely how Facebook sells their ad services. The sought out benefits of an effective ad campaign attracts small business owners, and with an abundant amount of small business pages Facebook hosts, posting ads can hold many benefits of new leads. Certain demographics are focused on the size of a city or town the ad is chosen to run and plays an important role in each campaign. Facebook harvests psychographic data on billions of people, and area able to repurpose the information into profit.
I. Perceptual Map Marketing – Segmentation
A business offering consulting or technology services will find a more scalable audience in a major city such as New York City or Los Angeles. A small business selling gardening supplies will benefit from a more rural area close to farms and a more relaxed population. When considering the income of the user, Facebook makes it very affordable to purchase and run ads. A max amount can be set and spread out on a per-day basis. The starting amount is very low and allows every type of business to get involved with ad space. Facebook targets potential users by recognizing interests and lifestyles of business owners and targets them to purchase ads to get more customers. The way small businesses create a business page in addition to their personal pages provides the company with an array of valuable information is very specific and effective.
II. Perceptual Map Marketing – Target Market
The main pool of potential customers for Facebook ad campaigns are small business owners. These group of users have the greatest need to develop and run successful ads on the platform. The behavior of the user, regarding the benefits of the ad, is what attracts so many customers to Facebook’s ad services. Since each ad campaign sets daily budget amounts, the service is attracting a heavy usage and loyalty when it attracts a larger audience. Facebook’s brand attracts many “hard-core” loyal fans who utilize the platform to set up business pages and credit the advertising company for keeping them in business (Thompson, 2019). The tech-savvy small business owner will benefit the most from Facebook ads.
III. Perceptual Map Marketing – Target Market Strategy
With 2.38 billion monthly active users, Facebook has seen an 8 percent increases year over year (Zephoria, 2019). The amount of growth relates to the amount of small business owners who create and manage business pages through Facebook. Facebook’s targeted and highly accurate marketing techniques already know a vast amount of information about the owner. They just don’t only know they own a business, the algorithm is aware of their interests, likes, friends, geographical location and all other information shared.
Facebook is essentially an advertising company, as they collect their royalties through showing ads from corporations and their own users. There reach is so vast, it wouldn’t specifically benefit the company more to only focus on the tech-savvy business owner. Running ads are beneficial to blog owners and large corporations as well. The advertising market is large, but Facebook has the highest number of active monthly users than all of their competitors. Facebook has also recently purchased Instagram as well, which is another great platform to advertise for small business owners.
IV. Perceptual Map Marketing – Positioning
Google and Facebook are the highest in cost when running ads online. Facebook is the highest social media platform, while Google sells ad space for internet search results. LinkedIn is an excellent source of ad revenue for small businesses due to the high amount of users and the amount of business-oriented users who log in for a more professional experience. LinkedIn utilizes a “matched audience” feature enhancing the amount of users who see the user’s ads. Specific companies and users who have viewed your page are often target (Gollin, 2019). Perceptual map marketing helps small and large companies like Facebook understand just where they stand against competition.
Ronnie Lee Roberts II is a brand and marketing super fan and owner & operator of Roberts Consulting Firm. He identifies the strengths of businesses of all sizes and is a curator of their message to current and future customers. He writes about marketing, leadership and business while offering an arsenal of digital marketing services in the United States.