Facebook’s Trials and Tribulations: Part II
In a recent interview with CKGSB Knowledge, I expand on my earlier post on Facebook and explain why consumers’ behaviors may change in different scenarios and at different points in time, and how firms like Facebook could translate those micro differences into effective marketing approaches.
Q. Why would companies like Facebook be interested in deeper understanding of user’s mood or behaviors?
A. As a marketer, in some sense [your] fundamental responsibility is to actually try to figure out what it is that your target customers want. Facebook is in a special situation. It is a platform, and the platform essentially brings in both the end consumer, who is the consumer of products, as well as companies, who actually want to reach these customers. So playing that role of bringing together both the advertiser as well as the consumer is something they would like to do. In some sense, the amount of money they can then charge the advertiser would depend upon how well they were able to match the needs of the advertiser with the interests of the customers. So, facilitating that match is important. In order to facilitate that match, they need to understand what it is that these customers really want. I think a lot of what you see them do is trying to actually get a deeper understanding, so they can facilitate that match.
Q. The idea of segmentation and targeting is marketing 1.1. But it seems that we are taking this 10 steps ahead and slicing the audience into even thinner and thinner slivers. To what extent is this going to be feasible?
A. In terms of feasibility, I think that’s not too much a challenge these days with the technology available. I think where companies will start running into problems is when there is push-back from the customer and the customer says, ‘You know, it’s great that I’m on Facebook and I’m interacting with my friends and colleagues, etc. But for you to now come in and try to understand—or even worse—manipulate the way I might be feeling’, that’s where they would potentially run into problems. They have to be very careful about it.
Read More and Watch the Full Interview »
by Major Tian, CKGSB Knowledge