Marketing Mix of Facebook and 7Ps (Updated 2024)

The Marketing mix of Facebook analyses the 7Ps of Facebook, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Facebook. Mark Elliot Zuckerberg of Havard University invented Facebook in February 2004. Since its invention, Facebook has changed the world in many aspects. Today, Facebook is more significant than many countries and has more than 1 billion monthly users.

Before its invention, the only communication mediums were email (a different form of letter writing) and Orkut, which was good but, to a specific limit, sometimes hanging out with close friends and relatives. This situation has changed for Facebook users; now, the world is interconnected with the World Wide Web. Revolutions have been planned on Facebook.

With Facebook, all one needs is an account, which, after logging in, connects you with people in different geographical locations simultaneously. Again, with its marketing mix of four vari tables, i.e., Price, Prod, cut, Place, and Ption, Facebook marketing also has a defined and fulfilled target audience with whom the company’s objective has been achieved. Facebook has a lot of social media competitors. Some of them include:

• Instagram (bought over by Facebook)
• Whatsapp (bought over by Facebook but speculated to be larger than Facebook)
• Twitter
• Pinterest
• Linkedin
• Snapchat
• Google’s Google+

Its four p’s of Facebook marketing strategy that has facilitated efficiency in reaching the target market are as follows;

About Facebook

• Type: Social networking service
• Industry: Technology
• Founded: 2004
• Founder: Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes
• Headquarters: Menlo Park, California, United States
• Area served: Worldwide
• Key people: Mark Zuckerberg (Chairman) and (CEO)
• Number of employees: Over 75,000

Facebook Product Strategy

As a very social network and media, Facebook is known for social networking. This marketing component identifies it to the target market.

Being an online business, Facebook is widely known for social media services made available through mobile applications and website networking. Again, Facebook Company manages social media users and operates Instagram and WhatsApp (another social media service and instant messenger).

With these services, more people are attracted to brands depending on their social nature. Therefore, Facebook utilizes the popularity of social media services for display advertising. The more people access the social networking website, the more the display advertising service gains more traffic. This indicates that Facebook’s marketing mix solely depends on the number of users of its online platform.

The product mix of Facebook in 2024 is as follows (Source).

1. Facebook Platform: The core product is the social networking platform, which allows users to create profiles, connect with friends and family, share posts, photos, and videos, and engage with content from other users and pages.
2. Instagram: Facebook owns Instagram, a famous photo and video-sharing platform. Instagram offers features like Stories, IGTV, and shopping integration, making it a versatile platform for users and businesses.
3. WhatsApp: WhatsApp is a widely used messaging app owned by Facebook. It offers text messaging, voice calling, video calling, and group chats. WhatsApp Business provides tools for businesses to communicate with customers.
4. Messenger: Facebook Messenger is a standalone messaging app that enables text, voice, and video communication. It is integrated with Facebook but can also be used independently.
5. Facebook Marketplace: Facebook Marketplace is an online platform where users can buy and sell products within their local communities. It allows individuals and businesses to list items for sale.
6. Facebook Gaming: Facebook Gaming is a platform for gamers to stream and watch live gameplay. It also supports game monetization and offers tools for content creators.
7. Oculus VR: Facebook owns Oculus, a company that develops virtual reality (VR) hardware and software. Oculus products include VR headsets like the Oculus Quest and content for immersive experiences.
8. Facebook Portal: The Portal is a line of intelligent displays designed for video calling and connecting with friends and family. It integrates with Messenger and WhatsApp for communication.
9. Workplace by Facebook: Workplace is a business communication and collaboration platform. It offers features like group chats, video conferencing, and file sharing for organizations.
10. Ads and Advertising Solutions: Facebook provides advertising tools and services to businesses, allowing them to create and target ads on Facebook, Instagram, and other affiliated platforms.
11. Analytics and Insights: Facebook offers analytics and insights tools for businesses and content creators to track the performance of their pages, ads, and content.
12. AI and Research Initiatives: Facebook invests in artificial intelligence (AI) research and development, including AI ethics and safety projects.

Facebook Place Strategy

Facebook is an online technology firm. This, therefore, means that its services are provided primarily via the Internet. The distribution channels through which its social media advertising products are provided include;

• Mobile apps and
• Social media website

Facebook’s social media services are provided via its websites, i.e., Instagram and Facebook. The same services can also be accessed through corresponding mobile phone applications. Advertisers use the same websites and applications for advertising services and relevant data. Therefore, Facebook uses digital marketing technologies for efficient, reliable, and effective worldwide product access.

Here are five key aspects of Facebook’s place strategy:

1. Global Accessibility: Facebook’s primary place strategy is to make its platforms and services globally accessible through the Internet. It aims to ensure that users worldwide can access Facebook, Instagram, WhatsApp, and other services from various devices and locations.
2. Mobile Optimization: Facebook places significant emphasis on mobile accessibility. The company has developed mobile apps optimized for various operating systems, making its platforms accessible to users on smartphones and tablets, which are widely used globally.
3. Local Data Centers: Facebook invests in data centers strategically around the world. These data centers improve the speed and reliability of their services for users in different regions while complying with local data privacy regulations.
4. Partnerships and Alliances: Facebook collaborates with global internet service providers and telecommunications companies. These partnerships often include data-free access to Facebook services, promoting usage even in areas with limited data connectivity.
5. Emerging Markets Focus: Facebook’s place strategy focuses on emerging markets where internet penetration is growing. Initiatives like Free Basics and Express Wi-Fi aim to provide free or affordable internet access, introducing users to Facebook’s platforms in these regions.

Facebook Pricing Strategy

For its online display advertising, Facebook employs different pricing strategies as below;

• Pay whatever you want a strategy
• Market-oriented pricing

With the pay-what-you-want strategy, Facebook lets advertisers and marketers decide on the amount to pay in addition to the set minimum price.

Alternatively, with market-oriented pricing, Facebook prices its display advertising by considering the competitors’ prices, typically applied per click or view.

The two types of pricing bring flexibility, attracting many individual users and many advertisers to the Facebook platform.

Facebook’s pricing strategy can be understood as follows:

1. Freemium Model: Facebook follows a freemium pricing model, providing primary free access to its platform while offering premium features and advertising opportunities for businesses at a cost. This approach lets it capture a massive user base while monetizing through targeted advertising and paid promotional options.
2. Ad Auction System: For businesses, Facebook employs an auction-based pricing system for its advertising services. Advertisers bid on ad placements, targeting options, and campaign objectives. This competitive bidding model ensures that advertising costs are driven by demand and audience value, maximizing ROI for advertisers.
3. Dynamic Pricing: Facebook’s ad pricing is dynamic and influenced by factors such as ad relevance, quality, competition, and audience targeting. This incentivizes advertisers to create high-quality, engaging ads that provide value to users.
4. Variable CPM and CPC: Facebook offers different pricing options, including Cost Per Mille (CPM) and Cost Per Click (CPC), allowing advertisers to choose the most suitable payment model based on their campaign goals and budget.
5. Budget Control: Advertisers control their budget and spending limits, enabling them to set daily or lifetime budgets to manage costs effectively. This flexibility accommodates businesses of all sizes and objectives.
6. Customization and Targeting: Advertisers can customize their ad campaigns to reach specific demographics, interests, behaviors, and geographic locations. This level of precision targeting allows for efficient spending and a higher return on investment.
7. Ad Transparency: Facebook emphasizes transparency in ad pricing and performance metrics. Advertisers can track key metrics, such as click-through rates (CTR) and conversion rates, to evaluate the effectiveness of their campaigns.

Facebook Promotion Strategy

For more memberships, accounts, and sign-ups to a Facebook platform, Facebook Embraces promotions to create global awareness of its products. In addition to proper marketing and communication to target customers, Facebook considers the promotional activities below.

• Advertising
• Viral marketing
• Public relations
• Direct marketing

Of the above, Viral Marketing is regarded as the most crucial promotion and involves word of mouth. i.e., new users sign up for the platform because of persuasion from close friends. Viral marketing has been considered a very critical form of promotion globally.

Direct marketing is another successful form of promotion. I.e., a firm can directly advertise or recommend an advertising campaign to Facebook page owners. However, This act will involve showing page owners a sample to pay Facebook for display advertising on its mobile phone applications and social media platforms.

Additionally, Facebook advertises on various display advertisement networks, e.g., Google. Again, its corporate citizenship (corporate social responsibility) program significantly promotes its services and brand. Viral marketing is, therefore, critical to Facebook’s global sales success.

Facebook employs a multifaceted promotion and marketing strategy here:

1. Digital Advertising: Facebook heavily invests in digital advertising to promote its products and services, using its platform and Instagram for ad placements.
2. Content Marketing: The company creates engaging content and partnerships to showcase its social impact, innovation, and community-building efforts.
3. User Engagement: Facebook focuses on user engagement and viral marketing, encouraging users to share content, connect with friends, and participate in user-generated challenges, all of which contribute to its promotion and brand visibility.

Some Recent Video ads and Print ads on Facebook are:

Facebook People Strategy

The “People” component of the Service Marketing Mix for Facebook (now under Meta Platforms, Inc.) focuses on internal and external human elements contributing to the service’s delivery and perception. This includes the company’s employees, customer service representatives, and users. Understanding the role of “People” in Facebook’s service marketing mix is crucial because they directly influence customer experience and brand perception. Here are some key points.

1. Employee Expertise and Training: Facebook invests heavily in hiring skilled professionals and in continuous training and development. This ensures their team can innovate and maintain the platform’s technical excellence, which is crucial for user satisfaction and engagement.
2. Customer Service and Support: Given the platform’s global reach, Facebook offers extensive customer support and resources, including help centers, community forums, and direct support options for addressing user issues and concerns, contributing to overall user satisfaction.
3. Community Management: Facebook’s approach to community management, with guidelines and tools for users to manage their own experiences and report issues, demonstrates the importance of people in creating a safe and engaging online environment.
4. User-Centric Design and Development: Facebook’s product development is highly user-centric, incorporating user feedback and behavior data into design and feature updates to meet its diverse user base’s evolving needs and preferences.
5. Diverse and Inclusive Culture: Facebook promotes a diverse and inclusive work culture, aiming to reflect the wide variety of backgrounds, perspectives, and experiences of its global user base in its product development and company policies.
6. Brand Ambassadors and Influencers: The platform leverages relationships with influencers and brand ambassadors to enhance user engagement and trust. Often seen as more relatable to the general audience, these individuals play a key role in promoting Facebook’s features and initiatives.
7. User Engagement and Participation: Facebook is about connecting people at its core. The platform encourages user engagement and participation with features that foster community building, sharing, and collaboration.
8. Safety and Security Personnel: Facebook employs teams dedicated to ensuring the safety and security of its users online. This includes tackling issues like fake news, cyberbullying, and unauthorized data access, critical for maintaining user trust and satisfaction.
9. Corporate Social Responsibility (CSR) Initiatives: Through its CSR initiatives, Facebook engages with various stakeholders, including non-profit organizations, educational institutions, and communities, to address societal issues. These efforts contribute to the greater good and enhance Facebook’s brand image and stakeholder relationships.
10. Feedback Mechanisms: Facebook has implemented various feedback mechanisms to gather insights directly from its users. This feedback is integral to the iterative process of improving and tailoring Facebook’s services to meet user needs better.

Facebook Process Strategy

The “Process” component of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Facebook, this involves the behind-the-scenes operational aspects and user-facing processes contributing to its service delivery. Understanding these processes is crucial for grasping how Facebook ensures a seamless, efficient, and satisfactory user experience. Here are some key points regarding Facebook’s processes.

1. Account Creation and Setup: The process begins with an intuitive and straightforward account creation and setup procedure, designed to be as frictionless as possible. This includes guidance for new users on personalizing their profiles, managing privacy settings, and connecting with others.
2. Content Delivery Algorithm: Facebook uses sophisticated algorithms to curate and deliver content relevant to each user. This process involves analyzing user interactions, preferences, and behavior to tailor the news feed, advertisements, and suggestions, enhancing user engagement and satisfaction.
3. Data Management and Privacy Controls: Recognizing the importance of privacy, Facebook provides users with detailed control over their data management and privacy settings. This process includes options to control who sees their information, how their data is used, and what types of advertisements they are shown.
4. User Support and Dispute Resolution: Facebook has established a comprehensive support system for users, including help centers, troubleshooting guides, and direct support channels. This process is designed to resolve issues efficiently, ranging from technical problems to reporting abuse or policy violations.
5. Feedback Loops for Continuous Improvement: Facebook incorporates user feedback into its continuous improvement processes. The platform gathers insights that inform product development, feature updates, and service enhancements through surveys, user testing, and direct feedback channels.
6. Content Moderation and Community Standards Enforcement: A critical process in Facebook’s operation is its content moderation system, which involves automated tools and human reviewers to enforce community standards. This includes identifying and removing prohibited content, addressing fake news, and handling harmful behavior.
7. Advertising and Monetization Processes: Facebook has streamlined processes for advertisers to create, manage, and track the performance of their ads. This includes targeting options, bidding strategies, and analytics tools, allowing for efficient advertising and monetization.
8. Platform and API Integration: For developers and businesses, Facebook provides a robust set of APIs and platform tools that facilitate integration and the development of third-party apps and services. This process includes documentation, developer support, and compliance checks to ensure ecosystem integrity.
9. Security and Fraud Prevention: Facebook employs advanced security measures and fraud prevention processes to protect user accounts and data. This includes two-factor authentication, encrypted connections, and ongoing monitoring for suspicious activity.
10. User Engagement and Retention Strategies: Facebook continuously refines its engagement and retention processes. This includes introducing new features, community-building initiatives, and personalized experiences designed to keep users active and engaged over time.

Facebook Physical Evidence Strategy

The “Physical Evidence” component in the Service Marketing Mix typically refers to the tangible or intangible elements that allow customers to evaluate the service before, during, or after its consumption. For digital services like Facebook, physical evidence primarily revolves around the virtual environment, user interface, and other elements that contribute to the perception and credibility of the service. Here are some key points regarding the physical evidence of Facebook.

1. Website and Mobile App Interface: The design and functionality of Facebook’s website and mobile applications serve as the primary physical evidence of its service. A user-friendly interface, consistent visual design, and ease of navigation contribute to a positive user experience.
2. Brand Identity Elements: Facebook’s logo, color scheme, and typography are recognizable elements that contribute to its brand identity and provide users with familiarity and trust.
3. User Testimonials and Reviews: Testimonials, reviews, and ratings shared by users on external platforms can be physical evidence of Facebook’s service quality and user satisfaction levels.
4. Security Features: Visible security features, such as SSL certificates, two-factor authentication options, and privacy setting controls, offer tangible proof of Facebook’s commitment to user security and data privacy.
5. Content Quality and Diversity: The quality and diversity of content available on Facebook—from personal posts to news articles and advertisements—are evidence of the platform’s value proposition and ability to cater to varied interests.
6. Official Partnerships and Collaborations: Collaborations with reputable brands, organizations, and public figures lend credibility to Facebook and prove its standing and influence in the digital ecosystem.
7. Customer Support Channels: Accessible and responsive customer support, including help centers, live chat, and support pages, provide physical evidence of Facebook’s commitment to user satisfaction and service quality.
8. Social Proof and Community Engagement: The size and activity of Facebook’s user base, along with the engagement in groups, events, and pages, are tangible evidence of its popularity and the vibrancy of its community.
9. Corporate Social Responsibility (CSR) Initiatives: Publicized CSR efforts, such as efforts to combat misinformation, promote internet safety, and support community projects, contribute to Facebook’s image and users’ perception of the brand.
10. Office Spaces and Company Culture: Although not directly experienced by all users, Facebook’s office design and company culture, highlighted through media and public tours, reflect its innovative and user-centric approach, reinforcing the brand’s image.
11. Marketing Materials and Advertisements: Facebook’s marketing and advertising efforts, including promotional videos, digital ads, and event sponsorships, provide evidence of its messaging and positioning within the market.
12. Platform Updates and Feature Announcements: Regular updates and announcements regarding new features or improvements indicate Facebook’s ongoing commitment to innovation and enhancing user experience.

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