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Operational and strategic marketing compared: a 6-month case study on Meta

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Research Proposal · June 2024

DOI: 10.13140/RG.2.2.25095.00168

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Enrico Zangara

Operational and strategic marketing compared: a 6-month case study on Meta - Facebook
ads

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Abstract
Let's compare two web agencies engaged in lead generation to sell high-cost B2C services in the medical sector.
The geographical area under examination is a city in northern Italy. The total analysis period is six months, divided
into the first three months for one web agency and the remaining for the second.

The six-month period under examination statistically generates the same sales opportunities over the last five
years, thus not being affected by seasonality or other external factors. This allows for broader evaluations in the
study at hand. The first web agency operates with operational marketing, while the second predominantly uses
strategic marketing alongside operational.

Applying a proper strategic marketing strategy, the second web agency lowers the cost of acquiring a qualified
lead from 15.37 Euros to 13.96 Euros in just three months. Furthermore, it obtains clients who are more
geographically relevant, as it is a local business operating within an 80 km radius.

An important fact, although outside the period under examination, is that the ad placement of the first web agency
shows a performance decrease of 9.8%, and the cost per lead has increased by 26.8% compared to the
preceding 199 days. This data demonstrates that an operational marketing strategy works in the short term,
neglecting the performance achievable in the medium and long term. Further research will follow to delve deeper
into the topics discussed.

Keywords
Business strategy, web agency, ads, digital marketing, Facebook Ads, Business Manager, Target.

Literature Review
Studies by Graham et al. (2019) provide insights into the effectiveness of digital marketing strategies on Facebook,
showcasing metrics such as impressions, clicks, and click-through rates. Iannelli et al. (2018) highlight the unique
opportunities and challenges presented by Facebook's advertising platform, emphasizing the importance of targeting
based on user demographics and behaviors.

Auschaitrakul and Mukherjee (2017) discuss the impact of online advertising on different types of websites,
clarifying the factors that influence advertising effectiveness. Other studies delve into the ad optimization process
through the Facebook Ads Manager tool, stressing the need for continuous monitoring.

Further research indicates that online display advertising (banners within other websites) is more effective in terms
of attitude towards the ad and the brand when it appears on commercial websites such as Walmart or Amazon,
compared to social networking sites like LinkedIn or Facebook. Research on Facebook ads and their performance
highlights several key issues.

Kamenyeva (2016) emphasizes the importance of strategy and tactics in advertising campaigns. It is also crucial to
optimally analyze the data. Beauchamp (2012) notes that consumers' negative perceptions of Facebook advertising
can pose a significant challenge, potentially exacerbated by intrusions into personal space. Hermansah (2013) further
underscores the need for effective targeting and analysis of user responses to improve the effectiveness of ads on
Facebook.

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Disclaimer
We have no relationship or collaboration with the analysis tools used. To avoid any conflict of interest, we adhere to
sharing only information relevant to the scientific research and study described here. We do not mention the
companies or commercial software used, except for those strictly necessary for the purposes and understanding of
the research.

1. Introduction
Facebook is one of the most utilized tools for promoting products and services, especially in the B2C market.
Through the vast amount of data acquired in full compliance with GDPR, it's possible to invite platform users to
explore advertisers' commercial offerings.

When citing Facebook, we also include other services such as Instagram, WhatsApp, etc. The typical audience
using these platforms is seeking entertainment and should be considered colder compared to other platforms
like Google and Amazon, where users actively seek solutions to problems.

While on Google and Amazon, both as organic search engines and paid platforms, people are more inclined to solve
their problems (and therefore spend), on Facebook, user navigation is interrupted and disturbed by the
presence of advertisements. For this reason, it's important to use less invasive strategies to encourage users to
consider purchasing products and services.

Unfortunately, in recent years, especially due to COVID-19, alongside professional web agencies, many amateurs
have emerged who have positioned themselves as marketing experts without having the necessary skills. This was
driven by a new market demand due to the pandemic-imposed movement restrictions. Therefore, Facebook was,
and remains, one of the primary channels for business promotion, even though it's often not the most
suitable.

Due to habit and ease of access, companies often think of promoting themselves using Facebook without
understanding its mechanisms and often delegating the strategic part to web agencies. This is a significant mistake
that can cause economic damage and reputational loss. Each company should be seen as numbers that
materialize into actions and therefore results. Each company is unique. Therefore, the strategic and marketing
aspects must be carefully managed internally.

Other web agencies, on the other hand, aim to create advertising campaigns based on creativity, strange or curious,
but without considering the numbers that translate into sales. In this case too, there cannot be a marketing
strategy that allows for gaining market share. The same applies to consultants and employees of companies who
apply marketing without knowing the company's "identity". Another very common mistake made by marketing
experts is applying their past experience in a non-overlapping context such as that of a different company,
with a totally different market. First, you look at the numbers and margins, then you reason about marketing.

2. Proposed work and research goal

Comparing operational and strategic marketing strategies in a local company specialized in B2C services
in the medical sector. The study period is 180 days, during which we analyze the data from the first web agency
(collected in the first three months) and the second (in the following three months). It is noted that the medical sector
is particularly complex due to Italy's strict regulations regarding promotion. It is also emphasized that the six-
month period under examination statistically generated the same sales opportunities, considering the last
five years: the experiment is therefore not affected by seasonality or other external factors.

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3. Methodology
3.1 Initial Phase
Before proceeding with the strategic phase, we need to divide the process that allows us to achieve the set goals
through data analysis and optimization of realistically achievable expectations:
1. Understanding the current situation of the company and the desired one (identifying quantitative and
qualitative parameters);
2. Identifying the current obstacles preventing the achievement of the goal;
3. Identifying feasible solutions, risks, costs, and timelines;
4. Monitoring the results achieved;
5. Modifying and refining any critical issues encountered during the process;

Based on the company's objectives and the available budget, the experiment concludes after six months of
analysis, at point 4 of the process just described. This is to compare, for the same period, two distinct methods
of using Facebook as a promotional tool. Further research will follow to delve deeper into the topics discussed.

3.2 Strategic Phase

Having defined the process leading to the desired and realistically achievable outcome determined by the company,
we proceed with structuring the strategy. After numerous tests, we have understood that the best strategy for
achieving results quickly is to define the following:
1. Target audience we want to reach;
2. Specific problem they are facing;
3. Solution we offer;
4. Offer we propose;
5. Tool we use to present the offer.

In our case, the tool used is Facebook, but this choice should be addressed at the end of the described
process and not before. It shouldn't be based on trends or because "everyone is doing it," but rather as a thoughtful
and reasoned choice based on the process described.

3.2.1 Target Audience

Defining the target is fundamental to understand how to proceed with the subsequent steps of our strategy. Let's
define some target types and business models:
 B2C (Business to Consumer): The company targets a market of end consumers. There are strong privacy
limitations due to GDPR in the European Union and the CAN-SPAM Act in the United States. The decision-
making process is often emotional and faster during the decision phase but slower in the initial education
phase that motivates action.
 B2B (Business to Business): The company targets other businesses with the intention of offering products
and services as a supplier. There is much more publicly available information such as revenue, headquarters,
executive roles, etc., but the negotiation phase becomes longer and more complex.
 B2B2C (Business to Business to Consumer): The company sells its products or services through a
distributor who resells to the end consumer. The company provides the marketing strategy to the distributor,
who commits to selling the products or services to the end consumer.
 B2G (Business to Government) or B2A (Business to Administration): The company targets
governments and public sector or mixed participation companies. Procedures, requests, and timelines are
subjective and very long, departing from normal business dynamics.

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 B2E (Business to Employee): The company offers services and products to its employees through an intra-
company network.
 B2M (Business to Machines): Transactions between the company and machines occur online through
automatic orders of products or services.
 C2B (Consumer to Business): Consumers offer products or services to companies at a specified price.
 C2C (Consumer to Consumer): Consumers interact directly with each other through dedicated platforms,
conducting commercial transactions.

Expansions, variations, or process reversals can exist based on what's described. This should be considered a partial
list in every respect. Once we've defined our business model and agreed-upon methods, we need to evaluate how to
reach the target audience, considering the information available to us (lawfully obtainable). Another crucial aspect
is the company's marketing budget and the target audience's economic availability to respond to the company's offer.
 Where is the target audience geographically located?
 Where does the target audience work geographically?
 Where does the target audience spend its money?
 Where does the target audience spend its money on alternatives to the company's solutions?
 Where does the target audience seek solutions for its problems?
 What places does the target audience regularly frequent online and offline?
 How is the target audience currently addressing and solving the problem?

The answers to these questions determine the choice of offer and the tool to use to reach the target audience. It's
important to note that the target audience may also be more or less aware of the problem and may be familiar with
the company proposing the solution, depending on the stage of the decision-making process they are in.

The most challenging target to convert and requiring the highest marketing budget is the potential customer: anyone
who may be interested in the solution for their needs and has the spending capacity but is not yet familiar with the
company. This target audience is the most expensive to reach and takes the longest time to convert. In this
phase, typical Facebook users are found, which is why it's the least suitable channel to start with. In the experiment
in question, we are using this channel at the company's request to compare the data collected with operational
marketing. It is understood that this is not the best strategic choice based on what has been discussed so far.

Prospect: It's a potential customer who has already interacted with the company, in terms of information acquired,
but has not yet decided to purchase any product or service. Generally, with this type of target, it's necessary to
overcome initial skepticism with a low-cost, risk-free solution with a strong impact.

Lost customers: They made purchases a long time ago and are no longer doing so. It's necessary to reactivate them
quickly to prevent them from ceasing to spend or, worse, from feeding the competition.

Referral: These are prospects who are part of the direct contacts of the company's customers. They can be easily
reached through word of mouth if carefully engineered. They are the easiest and lowest-cost strangers to convert
into customers. The referral has not yet made a purchase but is very interested, thanks to the loyal customer of
the company who has a similar problem to theirs.

Buyers: This target recently made a first-time purchase, and the company needs to help them repurchase quickly,
overcoming any doubts from the initial purchase. Customers: This target has purchased from the company at least

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a second time and is currently active. Loyal Customers: This target consistently turns to the company with total trust
and without doubts.

3.2.2 Specific Problem

Premising that without a problem it's not possible to establish a commercial relationship. Once this situation (trivial
but not obvious) is overcome, it's crucial to know the target's past experience and the attempts made. What does the
target think of the problem? How are they addressing it?

A problem has specific characteristics to be perceived as such. It's permanent in people's lives and, at the same time,
pervasive, causing discomfort in other aspects of life or business. It goes beyond its own scope and is also personal,
therefore perceived by the target as a strong limitation of their individual reality. The criteria described are the same,
whether we are talking about individuals, companies, or organizations. In any case, the target can behave in one of
these three ways:
 Ignored problem: In the target's mental dialogue, the problem is not acknowledged, but they may be sensitive
to related issues.
 Managed problem: The problem is not solved but is reduced or partially resolved in its effects. The result
is a short-term solution that may worsen over time.
 Solved problem: The target is already addressing the problem, but they might be willing to reduce efforts,
eliminate it definitively, or achieve the same results more quickly and with less effort.

Based on what's described, the target has a certain level of awareness of the situation and of what will happen in the
future if they don't act. The biggest problem in these cases is procrastination, which manifests as an unresolved
issue and can lead to greater damage over time.

The target may therefore be unaware of the problem and insensitive to the solution. In this case, the strategy should
be focused on the side effects generated by the problem, which are perceptible and already noticeable to them. The
next level of awareness pertains to the perception of the problem, which may be more or less defined in its form
and manifestation, but nonetheless creates discomfort and unease in the short term.

After analyzing the problem and its short, medium, and long-term consequences, the target's focus shifts to the
solution. In this situation, the target primarily wants to avoid short and medium-term problems. At this stage,
the decision-making process shifts from reactive to proactive, seeking to consider all possible solutions. The target
begins to explore various alternatives, starting with the least demanding ones (effort, required investment, time
needed, resources to be deployed, etc.).

From this point forward, the target is defined as warm, as they are actively seeking a solution to the problem they are
facing. Amidst all possible solutions, the target can finally consider the product or service offered by the
company, thanks to marketing. In this case, the comparison is between solutions that may vary greatly.

Subsequently, the target turns to the company and its direct competitors to evaluate the best choice for their needs.
While in the previous phase, the target requests quotes, comparing them with other possibilities, assessing the
cost/benefit ratio among even very different categories, in this phase, the evaluation is internal to the same type of
solution.

The subsequent and final phase is when the target turns to the company aware of choosing the category leader for
the parameters they seek. The evaluations are much more limited by the target because the phase of distrust and

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analysis has already been addressed previously, either directly by them or through supporting elements such as social
proof, testimonials, solution performance, etc.

Based on the target's awareness, spending capacity, and previously unsuccessful attempts, the company's strategy
must change, aligning with the needs and requirements of the target. All of this is manifested through a proper
marketing strategy that certainly cannot be a result of chance.

3.2.3 Specific solution and offer

Based on what was said in sections 3.2.1 and 3.2.2, the solution and offer to be proposed are made to adhere to the
target's needs and vary depending on the factors previously analyzed. Specific evaluations of each individual case
are deferred based on what was said. For the research purposes of the study under consideration, we have kept
the target, problem, solution, and offer unchanged. The only parameter modified between the first three-month
analysis period and the second is the adherence of the target's mental dialogue and awareness.

3.2.4 Tool
Only at this point, and not before, is it possible to evaluate the appropriate tool for reaching the target and the
predefined objectives (also based on the available budget). It could be a campaign on a specific social network, a
strategy based on cold emails, partnerships with potential customer aggregation centers, letters, flyers, or presence at
fairs, organizing events, etc.

It is at this stage, in the strategic planning, that the decision to potentially use Facebook is made: not before.
In the experiment in question, we use this channel at the company's request and to compare the data collected with
operational marketing. It is understood that it is not the best choice from a strategic point of view based on what has
been said so far.

It is important to emphasize the significance of adapting the business strategy according to the circumstances. Online
and offline strategies are two different ways to achieve the same objective. There isn't one better than the other, but
it's certainly about defining the most suitable one for the situation.

The solution is to analyze these two parameters: identifying the target on the territory and the breadth of the
area. For a very large area or a poor and imprecise geographical identification of the target, it is convenient to start
with online strategies. They are faster and cheaper to implement. This is the case for B2C targets in very large areas
and with low concentration or where it is not possible to know the precise geographical location. Let's also remember
the limitations due to privacy regulations.

In the case of B2C targets in easily reachable areas (even without geographical location), it is advisable to use offline
strategies such as events, letters, flyers, etc. This is because digital communication in restricted areas requires a
continuous rotation of advertisements to avoid boring the target audience, and it can lead the platform to a
forced expansion of the audience. This results in increased costs and decreased performance. Additionally, the
direct experience and physicality of offline marketing surpass any digital communication thanks to the engagement
of all five senses. This is something that only happens with sight and at most hearing in online communication.

In the case of B2B targets, on the other hand, we have precise geographical location available, allowing us to identify
much of the information we need: revenue, employees, commercial activity identification codes, names of decision-
makers, and so on. In such cases, if the target is numerically limited or easily reachable, it is advisable to use
offline strategies, at least initially, and then eventually integrate online strategies.

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In all cases, it is possible to create synergies during the customer acquisition phase by integrating the initially discarded
approach at a later stage. For all the other business models listed previously, the same considerations apply.

3.3 Operational phase

We analyze the data from two web agencies, comparing the approach based on operational marketing employed
for three months with the same timeframe utilized by the second web agency. The second web agency applies the
strategic marketing considerations discussed so far.

4. Results and Interpretations

The reference semester starts from October 1st, 2023, and ends on March 31st, 2024. Based on the sector and
market data collected by the company over the past 5 years, the two quarters under consideration offer the same
profit opportunities. This allows us to overlap the data from the two consecutive quarters, avoiding external factors
such as seasonality or events.

The medical sector is highly regulated, with major commercial practices being either prohibited or heavily restricted.
Therefore, the collected data is even more significant. The highest visibility is concentrated in the provincial capital
(Mantova) with 21.8% and its surrounding areas.

It's interesting to note that between the first web agency and the second one, there is a noticeable change in the
sponsored content's performance, as highlighted in the following image. There's a total coverage of 113,828 people
reached (with a 21.7% increase in visibility in the last period) and a decrease in content interactions by 22.6%:
this data is attributed to the different types of posts.

The first web agency displays ads not only for sales but also to enhance the company's reputation. The second one,
however, focuses on conversion to sales. During the period under review, 335 followers are acquired, and it's possible
to notice the shift between the two approaches around January 9, 2024. Organic coverage increases by 47.6%,
and paid ad coverage decreases by 22.6%.

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The target audience's age is above 55 years old, and the demographic data shows that 57.5% are men compared to
42.5% women.

The most interesting data of all is as follows: when comparing the two strategies and excluding the first web agency,
the performance of the second one, applying a correct strategic marketing approach, achieves the same results
while spending less budget. The cost per result, i.e., a lead clicking to schedule a free initial consultation on the
topic discussed, decreases from 15.37 Euros to 13.96 Euros. This data translates into more potential clients at the
same price, indicating a greater predisposition towards problem resolution.

It might seem like a small detail, but over time, this change translates into a significant benefit, allowing for an
increase in the budget invested after carefully optimizing and educating Facebook's algorithm to target the
best potential clients within its database.

By investing €1,414.39 compared to €544.25 for the same period of time (three months and three months), the
advertisements generated 92 contacts compared to 39, but they are more targeted and at a lower cost per potential
client (from €15.37 to €13.96). It is natural that by changing the strategy, initially, the focus shifts towards savings,
eliminating previous waste and leaving room only later for maximizing performance.

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Note also in the following image that the performance of the first web agency, which mainly operates with operational
marketing, shows a decrease in performance of 9.8%, and the cost per acquisition of the contact has increased
by 26.8% compared to the 199 days prior. This data extends beyond the period of this experiment but demonstrates
that an operational marketing strategy works in the short term, neglecting the performance achievable in the medium
and long term.

5. Conclusions
A careful and planned business strategy, primarily based on strategic marketing rather than solely operational,
as the vast majority of web agencies adopt, brings evident results from the early months. Optimization and
continuous improvement testing allow for performance that can only be seen over time. Further research will follow
to delve deeper into the topics discussed.

6. Discussion
It is understood that the Facebook algorithm is constantly evolving, and the performance obtained may not be
reproducible at the time of reading the research. The same applies to the application sector, which may be different,
leading to different performances. From the web, it is possible to find some images describing the complexity of the
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Facebook algorithm, at least as far as we know. We report one below. Source: https://labs.rs/en/facebook-
algorithmic-factory-immaterial-labour-and-data-harvesting/

6. Applications
Based on the data collected during our studies and the current available literature, it emerges that strategic marketing
is usable and adaptable to any tool. Therefore, it is essential not to be seduced by a new social network or passing
trend, as it may be an unsuitable tool for business needs.

7. Limitations
Strategic marketing can only be utilized by entrepreneurs accustomed to analyzing business numbers and
entrepreneurs with these capabilities who are open to consultancy. Many entrepreneurs are not willing to engage
in strategic marketing and turn to consultants with extravagant promises of unattainable results.

The role is one of dual responsibility, as the consultant must be realistic about the entrepreneur's expectations,
and in turn, the entrepreneur must understand that structuring an effective and enduring marketing plan
requires time, consistency, dedication, and study. It is not the entrepreneur's will that determines the results but

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the continuous and consistent response that the market provides based on the campaigns conducted and the monetary
results achieved.

8. Future Research
The topics discussed here will be further expanded and explored based on research needs, testing new strategies, and
reporting the results obtained.

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Enrico Zangara

Social media advertising efficiency on higher education programs https://www.semanticscholar.org/paper/Social-

media-advertising-efficiency-on-higher-Cordero-Guti%C3%A9rrez-Lahuerta-
Otero/70e9b21540c619acc7565151ce6e0d0576fd9fd4

Exploring the Online Micro-targeting Practices of Small, Medium, and Large Businesses
https://www.semanticscholar.org/paper/Exploring-the-Online-Micro-targeting-Practices-of-Chouaki-
Bouzenia/e1ee058cd8c8e3b9cc1c50d9842f7b6b119f088a

Propaganda Política Pagada: Exploring U.S. Political Facebook Ads en Español

https://www.semanticscholar.org/paper/Propaganda-Pol%C3%ADtica-Pagada%3A-Exploring-U.S.-Facebook-
Coelho-Lauinger/067063f3084d55ceae2b0bf542cc50901a7809c7

Political Facebook use: Campaign strategies used in 2008 and 2012 presidential elections
https://www.semanticscholar.org/paper/Political-Facebook-use%3A-Campaign-strategies-used-in-
Borah/d7df35f2555b1aa24dccc5e649e2716823e9d3e1

What Drives Advertising Success on Facebook? An Advertising-Effectiveness Model

https://www.semanticscholar.org/paper/What-Drives-Advertising-Success-on-Facebook-An-Brettel-
Reich/bf74d1f7a6a730c95d684f66ad9491c5795d13cb

The Effect of Motives for Using Facebook on Facebook Advertising Diffusion Behavior
https://www.semanticscholar.org/paper/The-Effect-of-Motives-for-Using-Facebook-on-
Wook/f0a5c5b8dc38e337271a6b99c7b7b413480d5305
A framework for Facebook advertising effectiveness: A behavioral perspective
https://www.semanticscholar.org/paper/A-framework-for-Facebook-advertising-effectiveness%3A-Wiese-
Mart%C3%ADnez-Climent/799c7a320e740af7c161889e76b4bfd53ed0d029

THE EFFECTS OF FACEBOOK ADVERTISEMENTS ON THE WORKING ADULT’S PURCHASING

BEHAVIOR https://www.semanticscholar.org/paper/THE-EFFECTS-OF-FACEBOOK-
ADVERTISEMENTS-ON-THE-Sasitharan-Hasan/d79ee5c250ce2d70534e725b2d1b2dac432b1024

An experimental study on the effect of ad placement, product involvement and motives on Facebook ad avoidance
https://www.semanticscholar.org/paper/An-experimental-study-on-the-effect-of-ad-product-Broeck-
Poels/e1315a7f1d552cd48d810e8f2782010705ed2f72

Large-Scale Analysis of User Exposure to Online Advertising on Facebook

https://www.semanticscholar.org/paper/Large-Scale-Analysis-of-User-Exposure-to-Online-on-Gal%C3%A1n-
Caba%C3%B1as/a6705d333eefc8c957a3eb2a620af5d37bc14c94

Deconstruction of a Facebook campaign model on the example of three brands

https://www.semanticscholar.org/paper/Deconstruction-of-a-Facebook-campaign-model-on-the-Kucis-
Had%C5%BEi%C4%87/1651af366597c98785c25ebbac7575e6e32e396c

Effectiveness of Advertising on Social Network Sites: A Case Study on Facebook

https://www.semanticscholar.org/paper/Effectiveness-of-Advertising-on-Social-Network-A-on-Maurer-
Wiegmann/72a238214375387066ae6139e944a7767aa61f4f

A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook
https://www.semanticscholar.org/paper/A-Comparison-of-Approaches-to-Advertising-Evidence-Gordon-
Zettelmeyer/caf6c90aec7f56e6ab8155d2e01e65fa1fbf2ca0

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