1

Running Head: SOCIAL MEDIA MARKETING: THE ADVANTAGE AND

DISADVANTAGE

SOCIAL MEDIA MARKETING: THE ADVANTAGE AND DISADVANTAGE.

FINAL PROJECT

ADEGBOYEGA ODEDIRAN

CALIFORNIA MIRAMAR UNIVERSITY

GLOBAL BUSINESS STRATEGY

DR. ALI GOOYABADI

AUGUST, 2020.
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Abstract:

Product awareness is a critical aspect of every business strategy. Whether for a new product

making its first entry into the market, or an existing product is seeking to attract more consumers.

Business managers contend with the challenge of how best to spark consumers’ desire for a

product. Different mediums and platforms have been adopted by businesses to create awareness

for their product. However, their effectiveness differs from one another. As consumers become

highly sophisticated and technology savvy, product marketing is fast changing; it has

transformed from just creating awareness to engaging consumers. Social media is at the center of

consumer engagement. It is fast changing how we do business and communicate with one

another. The shift in consumers' behavior and the percentage of people social media users are

making social media a more viable option for product marketing. This study highlighted the

advantages and disadvantages of social media marketing. The benefits of using social media in

product marketing are enormous. Business managers have adopted social media marketing as a

cost-saving strategy, reducing the cost of marketing campaigns by 85%. With the ability to cross

borders, social media marketing effectively reaches a wide range of audiences and can also be

channeled to a particular target group. Business managers perceived social media marketing as

time-consuming due to the dedication required to modify contents, respond to consumers'

questions, and monitor data generation. The framework of this quantitative study is Engagement

theory. The ability of business managers to drive engagement and influence consumers to

become brand loyalists. Trust is critical in engagement; the more interaction business managers

have with consumers, the more the consumers trust their product.
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Introduction

Internet technology is transforming our everyday lives, improving our ability to get

things done faster and better (Slavin, 2017). The population of internet users is increasing

globally with expectations of a continued increase. The United Nations advocates access to the

internet as a fundamental human right for everyone regardless of social status, location, or

demographics (Howell and West, 2016). Benefiting from the increased rate of internet usage is

social media, primarily established for people to engage with one another. However, social

media has developed beyond connecting families and friends to become a tool strategically

adopted by businesses to communicate and engage with existing and prospective buyers (Appel,

Grewal, Hadi, and Stephen, 2019). The era in which people perceived social media as a waste of

time has passed. Social media is now a tool for everyday living; it has become the go-to platform

for daily news (Martin, 2018), job search, and fundraising. Businesses, small enterprises, and

multinationals are beginning to use social media to interact with employees and clients (SHRM,

2019).

Social media is a collection of online sites and applications for information gathering,

connections, and interactions with friends and families. Social media encourage the transfer of

information between users. Social media is a hub where people interact, share ideas, and voice

their opinions. Internet technology and the proliferation of smartphones is increasing

acceptability and accessibility to social media (Rouse, 2020). Social media has evolved

significantly from inception to supporting interactive functions like voice over internet, instant
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messaging, video chats, and webinars (SHRM, 2016). Businesses are also adopting social media

to create awareness for their products and engage with customers.

The change in consumer behavior is making businesses reconsider platforms on which

they air their advertisement. Businesses are maximizing social media to their advantage,

increasing product reach, and is considered a cost-saving strategy because of its inexpensive

setup and deployment. The average monthly cost to advertise on Facebook ranges from $200 to

$2000, depending on the duration of $115,000 when airing the same advert on national television

(LaMarco, 2019). Social media offer flexibility in product marketing; the ability of social media

engineers to alter marketing messages real-time has also placed social media ahead of all

conventional medium of engagement (Ballatine, 2019).

Social Media allows for impact assessment compared to other conventional modes of

advertisement (Cohn, 2016). Through traffic tracking, business managers can evaluate the

engagement emanating from their social media engagement. Being able to track traffic has

proven to be a feedback mechanism that has helped businesses understand consumers and can

assess the impact their advertisement is having on consumers. Popular advertisement platform

like Television, Newspaper, Radio does not offer such an ability. Through social media,

businesses can create a comment section that allows clients to engage with their Ads.

Apart from a business to customer interaction, social media have also enhanced B2B

cooperation. Crowdsourcing, a strategy used to engage a large population for knowledge

gatherings, fundraising, and assistance, is becoming increasingly popular on social media

platforms. Other applications of social media platforms include; Enterprise networking, which
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allows businesses to interact with different companies that have similar interests and operations

(Rouse, 2020), Customer relationship management (CRM), Social media analytics, and Search

engine optimization.

Research Objectives:

Business owners are choosing alternative means for promoting their products and services. From

a cost-saving point of view, social media reflects a cost reduction strategy compared with

conventional advertisement channels. Businesses are actively using social media to create

awareness for their product while also engaging with existing and potential clients (Hassan,

Nadzim, Shirattudin, 2015). Nevertheless, there have been some challenges that come with the

use of social media. This quantitative research seeks:

1. Evaluate the role social media plays in product marketing.

2. Assess the advantages and disadvantages of using social media platforms for advertising.
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Literature Review

Product awareness takes a center point of every business strategy. Product awareness

refers to the number of information consumers have about a particular product (Spacey, 2017).

Of what good is a product if no one hears about them? Product awareness creates the desire to

buy in consumers and influences their perception of the product. Business managers have to

ensure that their products appeal to consumers by creating exceptional top-of-mind awareness

(Wyden, 2017). The challenge business managers face in today's business environment is making

their products or services a top priority in consumers' minds.

Consumers day in day out are faced with different products and are seeking a conviction

on which product deserves their money. Product marketing is critical to help consumers to make

that decision. Beyond creating a product that appeals to consumers, the medium through which

businesses interact with consumers is equally fundamental to ensuring that the awareness reaches

the targeted audience and connects with the consumers as intended. Therefore, business

managers need to be abreast of the trends and channel their resources in the direction where the

consumers can be engaged.

Social Media

Social media has become the most revolutionary tool with which internet technology has

blessed humanity. Since its emergence, social media has been transforming our everyday life,

expanding beyond its initial objectives of connectivity to becoming the world's new marketplace.

Social media has made our former massive world into a small space. It is not out of place to
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deduce that Social media has become the pivot of human engagement and interaction. Internet

technology has been the driving force of social media. The exponential increase of internet users

experienced at the start of the 21st century contributed immensely to the proliferation of Social

media. Today, billions of people worldwide use one or more social media platforms in their

everyday engagement. On average, social media users spend about two hours and 45 minutes,

interacting between multiple networks (Chaffey, 2020). According to the Pew Research Center

(2020), at least seven in ten individuals in the United States, numerous social media platforms to

interact with friends and family, share information and entertain themselves. However, social

media network popularity varies between demographics, user's satisfaction has been critical to

who uses what and when.

Contrary to believe that young adults are the most social media users, Pew Research

Center (2020) documented that social media is increasingly becoming popular among older

adults who turn to social media for their daily news. Older adults are increasingly using social

media. Their interests are born out of the desire to stay connected with their younger family

members who have chosen social media to communicate over others. Through social media,

seniors are also developing a new social circle, reducing social isolation and seclusion (Griniute,

2017).

The charts below represent social media usage across demographics as documented by

the Pew Research Institute:

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The above graphs show the increase in the use of social media across demographics in the United

States. In 2006, ages between 18-29 were the most users of social media. That is also evident in

the percentage of users in 2018. We can conclude that usage of social media across

demographics increased with time.

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While we can deduce a wide margin from 2006 to 2010, the graph above shows the uniformity in

the use of social media across income levels from 2011 to 2018.

The graph shows the use of social media across education levels and reflects college graduates as

the most users of social media platforms.

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The graph gave a pictorial representation of the use of social media between men and women.

We can deduce that women use social media more than men.

User's needs and satisfaction are also driving the popularity of the social media network.

Different platforms have unique features that attract users. Developers are also innovatively

introducing updates that enhance user's experience and engagement. Facebook, YouTube,

Instagram, Snapchat, Tik-Tok, Pinterest, LinkedIn, and Twitter are some popular social media

platforms in today's environment, each having unique features that set them differently.

1. Facebook: Developed in a Harvard dorm room in 2004 by Mark Zuckerberg to enable

college students to interact with each other; Facebook became the pioneer of the "new

school" social medic websites. Facebook evolved over the years, transitioning from just a

medium of engagement amongst college students to becoming the most widely used

platform globally. Today, Facebook has over 2.23Billion users worldwide, making it the
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most popular social media network (Gartenberg, 2019). According to Mark Zuckerberg's

description of Facebook's purpose, "Facebook is a place that brings people together and

connects groups of friends to share information and ideas about the things that they're

passionate about." On Facebook, users can post information on their feeds to drive

engagements with other users, usually followers, friends, and family, through likes,

comments, or post sharing.

2. YouTube: Unique and popular for video upload and sharing, YouTube is one of the most

widely used website today. This platform offers users access to billions of videos ranging

from entertainment, education, lifestyle, and culture. There is absolutely something

worthy

for everyone to watch on YouTube, regardless of demographics. Content creators upload

videos for free on YouTube, and users, based on their preference, can view and subscribe

to a channel of their choice. In part, YouTube relies on two groups of people to function;

the video creators and the video viewers (Moreau, 2020).

3. Instagram: This networking application is viewed by many as the photo and video hub

of social media. The use of smartphones is mainly driving the use of this platform

(Moreau, 2020). Users take pictures and videos uploads directly to Instagram without any

connector, converter, or data transfer equipment. Users also can use the platform's picture

enhancement tools to apply filters, crop, and smooth out their pictures, making it

beautiful and appealing to other users. This unique feature has made Instagram popular

among teenagers and young adults.

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4. Snapchat: Snapchat has gathered traction among teenagers and folks in their early 20s.

Snapchat encompasses all features of social engagements from messaging, to picture and

video sharing. In contrast to social media applications like Facebook and Instagram,

Snapchat does not record posts. Messages are programmed to disappear by default within

24 hours. (Elgersma, 2018). The unique feature of disappearing messages is giving users

a sense of security, and it is one of the reasons for its popularity.

5. TikTok: This video sharing application is the latest trending platform of engagement. It

is widely accepted and used to create content on the go. This application also allows users

to get creative by allowing them to record videos and modify them with songs or pre-

recorded voice over.

6. LinkedIn: This platform stands out as a meeting place for professionals. Unlike other

social media networks, LinkedIn creates an avenue for job seeks to meet with potential

employers while also encouraging interaction between friends and people in the same

professional circle. LinkedIn is expanding to be a career development website where

users can undertake online training per their interests.

7. Twitter: Twitter is a unique platform that has developed a means of infusing

entertainment, news, interactions all in one package. Twitter is the most used tool of

engagements by academia, politicians, celebrities, and activists. Twitter is also widely

referred to as a microblogging platform because it only allows the short exchange of

messages called tweets. Gil (2020) described Twitter as an online news and networking

platform which enables people to engage and interact with each other.
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These platforms have features that stand them out from another. Their popularity varies

between demographics; however, it has been established by Pew Research Center that

populations can use multiple platforms within the different demographics:

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Apart from the increasing numbers of casual users of these networks, businesses are also

adopting social media as a medium of interaction and engagement with existing and prospective

clients. Companies need people to engage with to promote their products or services, and social

media have the people on their platforms.

ADVERTISING ON SOCIAL MEDIA.

Businesses interested in reaching targeted audiences and reaching them fast, turn away

from conventional advertising channels to social media platforms (Newberry, 2019). Before the

development of internet technology and social media, businesses rely on media houses such as

television stations and radio stations to assist in their advertisements. This advertisement mode
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yielded massive results, but as time passed, business managers and advert companies began

questioning its effectiveness. The penetration of smartphones, coupled with advancements made

on internet technology, has dramatically influenced consumers' behavior turning their interests

away from television watching, listening to radio, and print media. It is rational for businesses to

go where the people can be reached, thereby turning social media platforms to rendezvous for

companies and consumers.

Social media marketing is gaining massive tractions in the business environment. In a

survey conducted by Guttman (2019), about 90 percent of United States businesses started using

social media as their marketing tool since 2017. Sixty-three percent of the marketing

professionals surveyed by Guttman firmly agreed that social media has contributed to their

business success. Exponential increase experienced in the amount company spent on social

media marketing between 2014 and 2019 validated Guttmann's research. In 2019, the United

States' companies spent 17 Billion dollars on social media marketing (Guttmann, 2019). Social

Media gives businesses so much flexibility to be able to engage effectively with their audience.

Social Media offers business managers the ability to design advertisements that target a

particular population, at a specific time, within a specified geographical location. Through traffic

monitoring on social media, businesses can assess how consumers engage with their messages in

real-time. The ability to offer such flexibility has placed social media advertisements ahead of

other mediums. This convenience gave rise to the term "social media marketing," a combination

of actions and strategies to increase a product's publicity and engagement over the internet

(Cohn, 2016). Social media marketing requires an approach, and a digital marketing expert can

help businesses get the much-needed exposure they desire.

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Apart from advertising, social media offers businesses with numerous benefits. Social

Media encourages interactions with your target market. Companies can effectively see their

consumers' posts, likes, shares, and comments about a product, and they can use the information

to fine-tune or develop another product. Social Media allows consumers to see a business as a

person with whom they can interact. Social Media opens up a channel through which companies

can respond to questions about a product or service and receive feedback.

The rate at which consumers are using social media has made the platform a goldmine for

brands and business managers to explore. The advertisement industry is evolving, transitioning

from the known conventional approach to a more dynamic interactive venture. Social media

marketing has impacted all aspects of business engagement. Their impact on business has been

lopsided, beneficial to some organizations, and detrimental to others. Whichever the case, the

effect is always long-lasting because "what goes online, stays online forever."

ADVANTAGES AND DISADVANTAGES OF SOCIAL MEDIA FOR

PRODUCT MARKETING.

The pros and cons of social media in product marketing is enormous. It is essential to

know how viable it is to promote a product and how it can negatively affect the business in

general. How effective social media in product marketing is dependent on how and why it is

implemented (Oza, 2018). Therefore, understanding the advantages and disadvantages of using

social media in product marketing can help determine why it should be adopted.
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Source: Benefits of Social Media Marketing

Advantages of Social Media in product Marketing.

1. Broad Reach: Social media, in comparison with the conventional advertisement method,

has no boundary. Social Media gives businesses to reach millions of audiences within and

outside their geographical territory. The universal usage of social media makes it possible

for an advert uploaded in the United States to be viewed in Australia and beyond, giving

access to a diverse consumer base void of demographic restrictions. Business managers

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have found this important for promoting their products. Social media increases visibility

and creates top of mind awareness through consistent consumer viewing.

2. Affordable Advertisement: Social media product marketing is affordable and

reasonable for start-up businesses. Establishing an account on most social media

platforms is free, and that is about what is needed to have your advert uploaded. Today,

most social media platforms offer the ability to set up profiles’ accounts for businesses on

which marketing campaigns are shared. It is free to upload marketing campaigns on

social media; however, social media platforms charge a fee to promote the content.

However, the prices are lower than what traditional product marketing company charges.

As documented by Digital resources (2019), it costs about $500,000 to run a successful

commercial on television with an estimated $7 to 1000 consumers. However, it only costs

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$0.25 to reach the same number of people through Facebook.

Source: Digital Resource | Internet Marketing.

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3. Engagement: Social media platforms are engagement tools—social media functions on

people's ability to engage with one another. Business managers are equally using social

media tools to engage with their clients. The ability to interact with clients in real-time is

highly beneficial for businesses as questions are answered and suggestions taking in real-

time. Engaging with a product or a company builds trust and increases the possibility of

consummating a deal (Oza, 2018).

4. Customer Loyalty: Customer loyalty is crucial for any business to be successful. It is

not enough to have the right product; it is essential to have clients interested in the

product and take a step further to get friends and family to buy the products. The ability

of a business to build a good rapport with consumers on social media increases the

likelihood

of having not just consumers but fans. Social Media permits post shares by allowing

users to share product reviews invariably influencing another user to buy.

Business managers are increasingly making use of social media platforms to save costs,

increase reach, improve engagement, and build a loyal fanbase. Nevertheless, product marketing

on social Media have inherent challenges and sometimes pose risks to the business. Information

circulates on social media effortlessly with zero control of the content. Contents uploaded on

social media platforms can be altered and misrepresented to the detriment of the business.

Therefore, companies adopting social media marketing must consistently be in charge of their

contents, including design, deployment, and monitoring (Hart, Doherty, and Ellis-Chadwick,

2000).
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Source: https://www.webfx.com/internet-marketing/social-media-marketing-advantages-and-
disadvantages.html

The disadvantages of using social media for product marketing include the following:

1. Negative Publicity: Negative publicity is a common practice on social media. Users can

communicate their feelings and experience with one another with no control or limitation.

Businesses are often caught in a rage of negative feedback and reviews that can damage a

company or product's reputation. Unfortunately, these reviews cannot be controlled by

businesses; they become accessible information to all users once posted online. In this

online shopping era, consumers have had to decide what product to buy and not buy by

reading reviews posted online by other users. According to Fullerton (2017), about 93%

of online shoppers agreed that online reviews influence their choice when buying online.

2. Time-Intensive: In contrast to conventional product marketing platform like television,

print media or radio jingles whose content are produced and aired for an agreed period,

social media marketing content have to be monitored and updated to attract the right

engagement. Also, social media marketing content is not one size fits all; brand managers

have to spend a quality amount of time creating and managing engagement by responding

to posts and keeping a conversation going.

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3. Privacy and Copyright issues: Copyrights have been a significant issue with social

media networking platforms. Contents upload to social media platforms are subject to

copyrighting and alteration. The conveying message in the campaign might also be

distorted by users to create a contradictory message. Business trademarks can also be

downloaded from social media platforms and used unobstructed to develop a false

campaign, which can eventually lead to reputational damage.

4. Lack of Control: Because information uploaded on social media networks online cannot

be regulated, businesses often lose control of their content, making them available to

distortion.

Social Media Marketing Framework

Several studies have been conducted on how businesses are leveraging on social media

platforms to advertise their products. Social media has transformed the advertisement landscape,

merely relying on the user's interaction to drive sales and revenue for businesses. Social media

marketing's success is primarily based on the engagement theory, as described by (Chung 2017).

The method establishes the way social media has been used to foster relationships and increase

interaction. Engagement, as defined by the Advertising Research Foundation (2016), refers to

linking consumers with a product to influence the buyer. Engagement theory also applies to
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create an interest in a buyer through continuous interaction. The engagement has been

documented to increase trust and further transform a potential buyer into a long-term loyalist of a

product (Higgins, 2006). Researchers have surveyed how people interact with advertisements

embedded in online games. Goh and Ping (2014) reported that ads increased participation in

games, contrary to general beliefs that advertisement causes distractions and users find it

annoying.
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Other frameworks of social media marketing are highlighted below:

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Source: https://tanmaysblog.wordpress.com/2012/10/14/digital-and-social-media-marketing-
strategic-framework-introduction/

Social media marketing must be implemented strategically to ensure a successful

campaign. The strategic process to apply social media marketing includes:

1. Target Market Research: Social media grants businesses the ability to direct their

advertisement to a target group. It is, however, imperative that business managers have a

thorough assessment of their target market. Therefore, to launch a successful social media
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marketing campaign, a detailed evaluation of the population must be conducted, and

advertisement content is developed appropriately to generate engagement.

2. Listen to Target Market: Social Media creates an opportunity for businesses to identify

the needs and demands of their target population. Therefore, developing a social media

marketing campaign needs to be tailored towards answering the questions being asked by

the target group.

3. Competitive Assessment: A comparable assessment of competitors is crucial when

developing a social media marketing strategy. It is essential to understudy the way

competitors are deploying their social media content and how consumers are reacting to

it.

4. Company and Brand Assessment: Businesses developing a sustainable strategy to

achieve competitive advantage must conduct a SWOT analysis to ascertain their

strengths, weaknesses, opportunities, and Threats. Strengths and Weakness are internal

factors that a company have control over. The opportunities and threat are external

factors which are beyond the organization's control. The external factors can be assessed

by conducting a competitive assessment of businesses in your sector.

As documented by Perdue (2010), four basic principles are required for developing an

effective social media marketing strategy. The basic principles that have to be in

consideration are contents, conversation, transparency, and community. Social media follows

a simple model of “word of mouth”, the ease of circulating a message through

recommendation. When users share a post, like a comment or comment on a post, the

numbers of followers see these actions. Similar actions happen with marketing campaigns;
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the more people engage with the post, the broader it reaches, and the likelihood of more

consumers. In summary, people's actions drive social media marketing; therefore, campaign

contents have to be attractive enough to encourage them to engage.

Conclusion:

In conclusion, the proliferation of smartphones and the expansion of internet technology

is a driving component of social media marketing. Social media is a widely accepted tool across

all demographics. The portability of smartphones made social media accessible on the go. The

future belongs to smartphone technology as demands for it are on the increase. Consumers create

and share over 500billion posts annually on social media (Allan and Ali, 2017). Increasing the

use of social media will create an opportunity for business owners to attract more customers,

expand their reach, and receive consumer feedback in real-time. Brand managers and marketing

companies are increasingly recognizing the impact social media has on consumers and have

redirected their focus on advertising on social media platforms. They understand the rewards in

taking the products to the consumers since consumers' attention has shifted from the traditional

means of entertainment towards online entertainment. Businesses are transitioning into using

social media platforms to reach and connect with clients.

Social media marketing makes it possible for companies to interact as much as people

interact with one another. Social media is cheap, and the numerous platforms offer businesses a

whole lot of options. Social media marketing is all about interacting with potential clients and
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consumers to identify their needs and provide solutions in real-time. The more interaction has

with consumers online, the more consumers trust the business and want to buy it. Social media is

not user-friendly, simple to use, and cheap to maintain.

Social media gives businesses access to a vast collection of consumer data, which allows

business strategists to forecast product performance and determine the consumers' desire. Access

to consumers' data gives managers insight into market demands and trends. Social media offers

competitive advantages; it guarantees business stability in the constantly changing world of

business. Internet technology has provided a level playing ground for all business owners to

harness social media marketing benefits in getting them closer to consumers (Hatter, 2016).
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