Business Report

FACEBOOK FOR BUSINESS

 

 

 

Prepared for
Professor Shari Weiss
San Francisco State University

 

 

 

Prepared by
Edelia Hernandez
San Francisco State University

 

 

 

 

 

 

 

 

 

April 12, 2016

 

 

TABLE OF CONTENTS

EXECUTIVE SUMMARY……………………………………………………………………… IV

INTRODUCTION…………………………………………………………………………………..1

Background…………………………………………………………………………………1

Problem or Purpose…………………………………………………………………………1

Significance…………………………………………………………………………………1

Scope…………………………………………………………………………………….…1

Organization………………………………………………………………………………..1

FINDINGS……………………………………………………………………………………………2

Businesses on Facebook………………………………………………………….….3  

From the Marketing View…………………………………………………….….…4

Using Facebook to Connect with Customers…………………………………..……….…4

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS…………………………………..6

Works Cited………………………………………………………………………………………….8

 

LIST OF ILLUSTRATIONS

 

  1. Figure One: Consumer Social Web Site Use for Business Purposes: Facebook……………2

 

  1. Figure Two: Facebook Do’s and Don’ts For Business………………………………………4

 

  1. Figure Four: Everything you need to know about Facebook Ads…………………………..5

 

 

 

 

 

EXECUTIVE SUMMARY

The purpose of the report is to describe how businesses can benefit from using Facebook to engage with their customers and promote their business. This report looked into the top three reasons businesses are using Facebook and how they are using Facebook’s tools to their advantage. With the fast growing market of users Facebook has, it is becoming more attractive for businesses to use it as an advertising platform. The following is a brief explanation of the focuses discussed in the report.

 

  • Main uses businesses use Facebook.

Looking into the reasons for businesses to join and use Facebook determined three the most popular.

 

  • Marketing on Facebook.

Businesses number one reason for using Facebook was to market their brand. Marketing on Facebook is easy to do and is low cost. There are specific tactics marketers use when posting content on their pages.

 

  • Connecting with customers.

Allows business to gain personal connections with customers. Shows customers the business values them. Research has shown that customers prefer to connect with brands on Facebook.

 

  • Advertising on Facebook.

Businesses use advertisements to attract new customers. Facebook tools allow businesses to display their ads to a narrowly defined customer base.

 

From the research it is recommended that businesses create a page on Facebook. By creating a page it would help in the growth of a business. It would also increase customer interaction and brand promotion. It is what all businesses are doing to further their success in the digital world.

 

 

 

 

INTRODUCTION

BACKGROUND

            Facebook has become the largest social networking website in the world. As of 2016, it has over 1.5 billion active monthly users and over 1 billion active daily users. Individual users connect with friends and family members through posts or direct messages. Facebook is also used by businesses. It has over 50 million business pages that are used to advertise and connect with their customers. It is a great marketing tool for introducing or promoting a brand. However, not all businesses understand the importance of using Facebook as a business tool.

 

PURPOSE

The purpose of this report is to encourage businesses to utilize Facebook to benefit their business.

 

SIGNIFICANCE

This report is important because it demonstrates the advantages of using Facebook for their business. By creating a solid Facebook presence it allows businesses to engage with current and prospective customers, promote their brand at low costs, and leads to increase in profits and growth of their business.

SCOPE

This report will focus on how businesses are using Facebook to market, network, and invest in their brand. It will not focus on any other social networking sites.

 

ORGANIZATION

The report begins with why businesses currently use Facebook for their businesses. This will help us determine the top three reasons businesses use Facebook to benefit their business. This report will analyze each of the top three reasons found and include figures and statistics of my findings. Conclusions and recommendations will also be found at the end of my report.

 

 

FINDINGS

How businesses utilize Facebook now

There are 50 million small business pages on Facebook and is expected to steadily increase. Businesses are learning the importance of using social media platforms for promoting their businesses. Having a Facebook business page helps to improve a company’s business search ranking and visibility.

For businesses considering using Facebook for their company they may wonder what other businesses currently using Facebook for. Figure 1, shows the responses of a sample of 400 managers that were asked, “How are you currently using these websites for your business-related social media/networking initiatives?”

Figure 1: Consumer Social Web Site Use for Business Purposes: Facebook

fig 1.png

(Source: https://www.enterpriseirregulars.com/40638/using-consumer-social-tools-for-business-facebook-v-linkedin/)

 

Looking at the results found on the chart shown in figure 1, the top three reasons businesses use Facebook for are to promote their company or brand, to communicate with fans and followers, and to advertise/generate leads.

Facebook provides marketing tools for businesses to promote their brand

Facebook offers a vaiety of tools such as insights and advertising, for their business users to successfully endorse their brand. When promoting a brand, a business must be careful and selective about their posts. They wouldn’t want to post anything that offends anyone or damages their reputation. Figure 2, shows an infographic of  “do’s and don’ts” for posting content on a business page.

Figure 2: Facebook Do’s and Don’ts For Business

fig 2

(Source: http://www.techcuppa.com/infographic-dos-and-donts-for-businesses-on-facebook/)

Businesses who manage their online marketing well can attract new customers while keeping the old ones still interested.

BENEFITS OF MARKETING

  • 21% of fans Like a page to do research on that business’ goods or services.
  • 41% of fans Like a page to receive regular updates from a brand.
  • “Socially devoted” brands receive 3.5 times more user interaction than non-devoted brands.

 

 Facebook encourages businesses to Connect with Customers

            Social media has changed the way businesses interact with their customer base. Using a fan page or group for a business allows them to get know their customers. They can also receive direct feedback through comments and posts. It is important for small businesses to encourage their customers to give feedback for their products or services. Responding promptly to feedback, whether it is positive or negative, promotes quality customer service. Businesses attract customers to their page using different tactics such as coupons, discount tickets, and posting engaging content.

With 2.5 billion comments a month on pages it becomes difficult to respond to all customer comments at all times of the day. Customers are able to contact businesses from any mobile device at any time. Facebook offers tools to help manage their customer interactions. Page admins can now set away messages and instant replies to inform customers when they will reply. Sheryl Sandberg said, “The number one challenge for small and medium businesses is reaching customers. Facebook Pages are the mobile solution for millions of businesses around the world because they make it easy for business owners to reach new customers and communicate with current ones where they are – on mobile.”

BENEFITS OF CONNECTING WITH CUSTOMERS

  • 80% of social media users in the U.S. prefer to connect to a brand on Facebook.
  • 42% Facebook users like a Page to get a discount or other beneficial deal and 32% Facebook users. like a Page to enter contests to win rewards.

 

Facebook promotes advertising for businesses

Facebook offers creative ways to show potential customers business ads. Ads are placed next to posts and popular news stories making them more appealing to users.  Faceook’s targeting options allow businesses to display their ads to a narrowly defined customer base all at low-cost. Facebook for advertising attracts 92% of social marketers. Figure 3, compares the four different types of Facebook ads.

Figure 3: Everything you need to know about Facebook Ads

fig 3

(Source: http://www.socialbrite.org/2013/02/06/4-kinds-of-facebook-ad-types-compared/)

 

BENEFITS OF ADVERTISING

  • Mobile makes up 66% of Facebook’s advertising revenue, up from 49% one year ago.
  • Users bought $234 million worth of virtual goods and gifts on Facebook over a quarter.
  • Facebook boosts visibility for the last 50 pages a fan interacts with.

 

 

 

 

 

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Based on the findings of the report, using Facebook’s tools allow customers to reach a new market of potential customers. There is a reason that millions of businesses have joined Facebook. The customer connections and easy tools to market to users are benefiting their business. Facebook continuously updates and creates more business tools to help businesses succeed.

 

RECCOMENDATIONS

  • Build a Facebook page.
  • Use all of the free tools it offers to connect with current customers.
  • Promote the business brand inexpensively by creating ads and attracting new customers.

Facebook has the largest market of users and continues to grow. Businesses need to start using this to their advantage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WORK CITED

 

https://www.entrepreneur.com/article/270889

http://www.digitalmarket.asia/2015/12/facebook-unveils-new-tools-for-customer-communication-for-pages/

http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/

https://www.b2bmarketing.net/resources/blog/7-benefits-uing-facebook-business-promotion

http://fortune.com/2015/04/30/facebook-small-business/

https://www.enterpriseirregulars.com/40638/using-consumer-social-tools-for-business-facebook-v-linkedin/

http://www.techcuppa.com/infographic-dos-and-donts-for-businesses-on-facebook/

http://www.socialbrite.org/2013/02/06/4-kinds-of-facebook-ad-types-compared/

http://www.jeffbullas.com/2015/05/09/23-extraordinary-facebook-advertising-facts/

 

 

 

 

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