Advantages and Disadvantages of Social Media Marketing in Business

This report examines the advantages and disadvantages of social media marketing in business from the viewpoint of organizations. It discusses the benefits of social media marketing, such as cost-effectiveness, brand exposure, and targeted marketing, as well as the potential drawbacks, such as security issues, spam, and malware. The report also identifies a research gap and suggests further research from the consumer's point of view.

Student Name
INSTITUTIONAL AFFILIATION(S)
Academic and
Business
Research
Advantages and Disadvantages of
Social Media Marketing

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Table of Contents
INTRODUCTION......................................................................................................................2
PROJECT OBJECTIVE.............................................................................................................2
PROJECT SCOPE.....................................................................................................................3
LITERATURE REVIEW...........................................................................................................3
RESEARCH GAP......................................................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
APPENDICES..........................................................................................................................15

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INTRODUCTION
Marketing strategies and advertisements in businesses have evolved immensely in
past few decades where reaching consumers has becomes comparatively easier with the help
of latest technology and internet. Social media is one of the platforms that have assisted
businesses in expanding their operations with applications and tools present in social
networking sites (Baruah, 2012). Social media marketing not only enhances B2C but also
B2B transactions where organisations get connected with vendors and agencies for making
sales and other business operations for the firms. In short, social media marketing creates a
networking channel in business in a cost-effective manner while targeting desired customers.
However, Haji (2013), argues that there are few negative aspects of social networking also
which requires consideration or else the social media marketing strategies can provide
adverse effects in business.
PROJECT OBJECTIVE
The key objective behind preparing this report is to examine the perception of social
media marketing in business from the view point of organisations. Advantages and
disadvantages related to social media marketing will be discussed in this report after
reviewing credible and authoritative sources collected from online and printed versions. After
making analysis of literature related to the field, this report will find out literature gap
according to which further research can be made.

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PROJECT SCOPE
Grounded on project objectives, the scope behind preparing this report becomes clear
which is making an investigation about advantages and disadvantages of social media
marketing from business. Since scope institutes a broader perspective, focussing on one
particular area will enhance clarity in presenting viewpoints about the subject and
determining the core objective behind report preparation related to social media marketing
from business point of view.
LITERATURE REVIEW
Social media marketing is one of the most cost-effective and enhanced tools used by
organisations while making marketing and promotional strategies. Social networking sites
like Facebook, Twitter, LinkedIn, Google+, etc. are used by mangers of organisations while
making marketing and advertising strategies for reaching consumers in speedy way
(Mandaliya, 2014). Since social media marketing helps businesses in maintaining
relationships with customers in effective manner along with getting knowledge about current
trends, it is implemented by contemporary organisations in their marketing and advertising
operations (Appendix A). According to Baruah (2012), social media sites not only promotes
brand in front of mass people, but also generates sales through direct communication and
advertisements. Technological innovations and applications have supported social media
marketing through which organisations develops web pages that act as self-introduction for
their firm in front of the people. Big organisations do not mind spending considerable amount
for developing their websites attractively to gain more customers through user friendly
interface and generation of traffic through Search Engine Optimisation (SEO). Earlier,
marketing through televisions, radio and newspapers were used by businesses for sharing

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firm related information with stakeholders. But nowadays, things have changed where
stakeholders are informed about organisation’s in effective and speedy way through internet
and social networking sites (Saha, 2015).
According to Demers (2014), brand exposure and awareness is one of the most
advantageous feature of social media marketing that also becomes chief reason behind its
implementation in businesses. Brand exposure takes place when customers make reviews
after using any product or service that can be through five senses or knowledge gained from
social networking sites. For those companies whose brand already exists in social networking
sites, expanding their business in globalised way becomes much easier as their brands get
fostered in comparatively lesser time period (Chaffey, 2009). Brand augmentation through
exchange of ideas and interactions among customers and sales representatives increases sales
and helps organisations meet core objectives behind their formations. Presently, millions of
people use social media sites for some or the other reason, but businesses gains advantages
through making advertisements in social sites where consumers see those advertisements
made even if they do not wish to.
SEO in social networking sites have made marketing strategies of organisations in more
customer targeted way where companies gets access to locations and preferences of
consumers through social networking sites (Maaki, 2016). Thus, targeted customers can be
approached according to the environment they are in and what kind of products they usually
search for. Retargeting policy is also used by many companies where they approach directly
to the customers through emails and messages. Retargeted customers are the ones who
searches for products but does not make any purchases. In social networking sites and web
pages users unknowingly shares information about them that are used later by business
companies for making a list regarding targeted and retargeted customers.

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According to Bank (2015), popular social media sites like Facebook and Twitter engages
more people in which techniques related to website traffic is utilised by companies that
ultimately turns into product sales through advertisements and direct rapprochement’s.
Another popular way used by companies to remain engaged with customers is by giving
regular information about their products while responding to any critiques made by them.
However, Akbar & James (n.d) argues that although increased competition has made many
companies respond in prompt fashion, spread of unwanted criticism also damages company’s
reputation. People uses social networking sites for getting knowledge regarding product
information as well as commenting on products used by them. These feedbacks are further
used by companies in developing their products according to user’s preference and therefore,
opportunity of enhanced products can be utilised by both seller as well as consumers.
Nevertheless, any bad remark or negative comment made by competitors in social media sites
may lead to falsified assumptions for which companies need to appoint superior quality sales
representatives and enhanced technology tools. Moreover, Nadraja & Yazdanifard suggests
that getting negative feedback from customers side must also be clarified instantly through
making apologies or product replacement guarantee that can enhance customer relationships
even better.
As discussed earlier, social media marketing is a cost-effective process which is the
reason behind its implementation on large and smaller firms. Since budget factors of small
firms do not allow them making superior marketing strategies, social media marketing
evidences beneficial to them (Bank, 2015). According to Ciprian (2013), “Social media
marketing has become an essential part of online marketing strategy among small businesses
because of its cost-effectiveness, ability to reach targeted audiences quickly and generate
more leads/sales”. For large firms, maintaining public relationship through social networking
sites is probable where special teams are appointed to make interactions with customers while

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launching new products. Nonetheless, every consumer possesses diversified characteristics
for which choosing correct words becomes very crucial. As social networking sites are
simultaneously visible to many people, any negative comment can spoil company’s image
and that too in fast manner (DeMers, 2014).
Maki (2016) argues that from B2B perspective, businesses gain immensely from social
media marketing through generation of new clientele and selling products to agencies and
third parties for making direct sales to consumers. Buying directly from vendors, by
eliminating third parties, proves efficient process for industries where they can make
purchases in shorter time period without involving mediators in B2B transactions (Ciprian,
2013). Enhanced technological tools like video conferencing and calls have also provided
with great help, especially to those firms whose business is spread in globalised manner.
Business managers time as well as travelling expenses are saved without hampering work
quality as compared to the earlier times when people used to travel long distant places for
making short presentations. Organisations uses social networking sites for job placements and
spreading information regarding job vacancies. Whereas people who seek new jobs, gets
informed and can even apply for job applications online without wasting much time and
energy in searching for new jobs in various organisations. During the time of crisis, social
media networking can even save companies brand’s image in front of public. By making
apologies and direct interactions as well as explaining reasons behind crisis, companies gain
sympathy and consolidation from stakeholders that can save their brand image through
people support (Evans & McKee, 2010).
While recognising opportunities of social media marketing in contemporary
organisations, it can be said that no action can be deemed completed without realising threats
related to it (Hajli, 2013). Social networking issues occurs not only because of technological
aspects but also due to mishandling of social networking accounts. Its worst effects have been

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seen in many organisations where companies lost their public reputation that even affected
their overall sales (Saha, 2015). Therefore, it can be said that before implementing social
media strategies, organisations must make a thorough research regarding its bad impacts for
preventing themselves from getting victimised (Arca, 2012). In businesses, image and brand
reputation is everything for which companies spend considerable time and amount for brand
promotion. How long a brand takes to build a strong reputation does not matter if any bad
remark is made in social networking sites and thus lots of time and energy is marred within
no time (Jefferson & Traughber, 2012). Further, if any negative remark is posted in popular
sites where millions of people are engaged worldwide, the company’s name can get spoiled
in larger slant. Therefore, Bank (2015) claims that company’s must always make active
approach while answering customer’s queries while handling sensitive matters with patience.
Here, if the employees are found joyous and contented, they may post positive comments
regarding their company, however, any discontented staff feeling bias or negativity in work
environment can feed negative comments that may prove risky for the firms. Many
employees even exploit social media powers by manipulating companies to fulfil their
demands and conditions. Along with it, any confidential message shared accidently via social
sites can be utilised by those competitors who always keep close watch over their rivalry
companies (Chaffey, 2009).
According to Saha (2015), many sales representatives of organisations utilise social
networking sites to generate sales only and ends up making false promises. This turns into
bad impact for the organisations in the long run as some or the other day consumers might
turn up making negative comments and feedbacks in company website and social networking
sites. One of the biggest con in social media marketing is security issues where big
companies name is been exploited by false companies (Nadaraja & Yazdanifard, 2013).
There are many forged companies who makes duplicate products or services in the names of

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reputed companies. Consumers, on the other hand, unknowingly purchases the same and
remains dissatisfied while providing feedback in social sites. This in turn, hampers the
original company’s reputation. SEO has enabled targeting customers through emails and
messages, as discussed above in this report. Companies makes repeated mails and messages
to consumers regarding launch of new products or promotions and discounts. This irritates
consumers many times while many of the messages are deleted without even looking at it.
Thus, entire marketing strategy through social sites becomes wasted (Brusseau, 2012).
Another major disadvantage recognised in social networking sites is arise of spam and
malware companies who hacks customers card numbers and credentials, making them
bankrupt in no time. Chaffey (2009) states that many consumers have stopped making online
payments and transactions while opting more for cash on delivery options. This arises further
issues for the companies while segregating genuine customers and fake ones. Copyright and
trademark infringement risks are also an important area that needs to be discussed while
recognising social media marketing disadvantages. Many false malware companies and even
competitors hacks trademark and infringement copyrights from company websites while
making unwanted changes in it (AT&T Intellectual Property, 2008). This creates issues while
making dealings with customers and third parties where companies unknowingly signs at
changed trademark and copyright agreements. Here, companies need to verify their website at
regular intervals so that falling under such circumstances is avoided.
While making B2B transactions, getting cheated by third party vendors is probable if the
dealings are made through virtual basis only. Since no physical examination regarding
product or the third-party company is been made, chances of getting degraded products along
with not getting products in desired time adds to further disadvantage (Popova, n.d.). The role
of government in social networking sites is not seen to much extent and therefore the cheated
parties remains helpless. Also, video conferencing or chatting via social networking can lead

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to outflow of valuable information that can be recorded or utilised by rivalry companies.
Time intensive disadvantage of social media marketing has made many companies think
about its implementation. The brand recognition through social media may require
considerable time investment as it involves two-way process of interaction (Houghton &
Joinson, 2010). Therefore, many traditional companies still utilise earlier methods like
television and newspaper to reach customers.
RESEARCH GAP
The above report has identified major advantages and disadvantages of social media
marketing from the point of businesses. Further research can be made on the topic from
consumers point of view to get comprehensive knowledge regarding social media marketing.
This report has discovered that most of the researchers and authors discusses social media
marketing advantages and disadvantages. However, finding statistical information and level
in which companies gain or lose through social media marketing can make the study more
accurate and in numerical manner.
CONCLUSION
Internet and social networking sites have become an integrated part of society with
the emergence of technology and innovations (Appendix C). Nowadays, with the help of
internet and smart phone, people get access to companies’ websites along with making close
comparisons of products and services before making purchases. On the other hand,
companies benefit from it by making direct sales to the customers and that too in cost
effective and speedy way. However, few drawbacks of social media marketing have also
been observed like negative feedbacks from customers and competitors misleading the

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companies. Overall, the above report as identified various advantages associated with social
media marketing and recommends contemporary organisations implementing social media
marketing strategies only after examining both advantages and disadvantages related to it.
REFERENCES

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Akbar, S. & James, P. . T., n.d. Consumers’ attitude towards online shopping: Factors
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Bank, V. D., 2015. The impact of social media: advantages ordisadvantages. African Journal
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Baruah, T. D., 2012. Effectiveness of Social Media as a tool of communication and its
potential for technology enabled connections: A micro-level study. International Journal of
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Brusseau, J., 2012. Business Ethics. s.l.:Creative Commons.
Chaffey, D., 2009. E-Business and E-Commerce Management. 04 ed. Harlow: Library of
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Hajli, M. N., 2013. A study of the impact of social media on consumers. International
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Mandaliya, M. P., 2014. Mobile Commerce: The New Era of Shopping. International
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Popova, D., n.d. The Good and Bad of Social Networks. [Online]
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APPENDICES

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Appendix A
Source: (Smart Insights, 2018)
Appendix B

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Figure: How Social Media Marketing Evolved over Years (Witszen, 2018)
Appendix C

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Figure: Expected growth in Social Media Marketing (Anon., 2017)