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2825 : Marketing Management : Strongest Social Media Marketing


Case 1

1. Why is Facebook unique in the world of personal marketing? What are Facebook’s greatest strengths?( answer around 300 words)
2. Who are Facebook’s biggest competitors? What are the greatest risks it faces in the future?
3. What does a company gain by having a Facebook page or advertising through Facebook? What would you think if a brand or company were not on Facebook? (answer around 300 words)

Case 2

1. Compare the functional and strategic roles of the new pricing approach that John is considering.

2. What underpins the assumption that some of his clientele will be willing to pay the increased fees

3. What are important price-setting considerations in the case of a business such as this, and why?


Case Study 1

1. Facebook as a form of unique personal marketing and its greatest strengths

Facebook is one of the strongest social media marketing platforms in modern days. The promotional advantages are high in that case and people have got enough facility by delivering an advertisement or doing promotions on Facebook. This is a way of making the personal brand for every individual as the person can showcase their products and services and approaches for sell. The brand recognition will be highlighted more than billions of people and company get enough opportunity to publish those (Cassidy 2006). In the case of personal marketing, every individual can define their role in an effective way and they can choose their friend in a careful manner. In the case of the branding strategy, cost-effective service or product deliverance is important. They need to invest the little bit of time to showcase their product or service for the whole world. As stated by Ferguson, Greer and Reardon (2007) People can implement the plan on the daily basis. The privacy setting can be changed if they want to show their services with some re

stricted people. Profile information can be guarded through the security system. The validity of the service advancement is also acquired unless people will find difficulties in accessibility. Facebook, thus, have changed their process of allowing everyone in one profile and safe their professional details through this.

The greatest strengths of Facebook are

  • This is the world's largest social network which has more than 1.4 billion active users so product or service can easily get known to everyone.
  • Approximately 73% of advertisement revenue acquired in the last few years and the large accumulation of all the platforms nowadays help the entire process (Pattison 2009). Facebook ads are displayed in every quarter. The companies emphasise the quality of the products through this platform.
  • The process of research and development helps the advancement of Facebook in everyday work culture. Updated version helps to promote business and company gets benefited through this.
  • The social media also promote the e-market process and most of the people are depending on online marketing in this days, so that will be an extra opportunity for the company.
  • This is a platform that delivers video promotions of product and services. The platform challenges YouTube for their promotion.   

2. Facebook’s biggest competitors and risks in future

The biggest competitors of Facebook are Google, Twitter, Snapchat, Instagram, LinkedIn, Pinterest, Microsoft, Tencent, Vkontakte, and YouTube. These are the platforms that provide enough challenge in case of productivity and promotion of the services and products.

Google is a US-based global internet company offers online search, online advertisement, software and cloud computing. This is a multi-platform process that offers the variety of features to make the promotional activity easy (Zimmerman 2012). On the other hand, Twitter is another platform that deals with relatively short messages like tweets. Most of the celebrities are involved in this process and that will be a huge marketing opportunity for product and services. Snapchat is also a sharing medium of photos and multimedia contents. This is an engagement that considers a huge profit for the company and threatens Facebook in all aspects.  

Time and resources are the first risks that Facebook may encounter in this case. To manage a profile in a right way takes some time to monitor the process. In that case, the time investment is there for the promotional purpose of the business. Appointed person must be needed in that can who take care of social media advertising through Facebook. As commented by Hansson, Wrangmo and Solberg Søilen (2013) Skill employee on that reason is essential as the communication with people through the platform and maintains a good relationship through that helps the entire process. This is considering as a risk. The budget allocation for promotional service needs money as most of the promotional ads are paid in nature. Own budget is important and relevant for promotional aspects as the demand for the service or product will be in the market if paid promotional approach is there and that need a good budget also (Ramsaran-Fowdar and Fowdar 2013). There are some negative feedbacks as well; this is also considered as risk. This is an open platform to share experience from the product and in that case, some negative comments will be there and these needed to be under the scrutiny process.

3. Advantages of a company by having a Facebook page or advertisements and opportunities missed by the companies don’t involve in that process

The basic advantage is the increased exposure of the company to billions of people. The range of business expansion is the key approach in that case. People like some services or products and that counted as the leads in business as the company or their products are highly rated in social media, and through a Facebook page or promotion company can do this. The process of marketing expenses become low as the sponsored stories if ads require less amount than any other promotional platform (Trattner and Kappe 2013). The process will ensure to reach target audience and the company has to choose their target audience in a legitimate process of sampling. The method of sampling is to choose those people who have already like those pages or products and that showcase the interest of the product. For the better engagement or post-performance understanding about the use and more promotion with some strategic implementation may be helpful in that process. Companies having a Facebook page ensure brand loyalty and customers have enough faith over the company as they have registered their name as the official one and they update their page with latest product and services (Ramsaran-Fowdar and Fowdar 2013). The platform is readily used in mobile devices as the hours of operation is enough in mobile so this is an advantage to promote product and services.

The companies are not using Facebook as their promotional medium will lose the billions of people market. Social media has the biggest range of promotion. The value creation in that case peoples' recommendation for product or service and positive feedback of that process help to accumulate more people and set their level of expectation in that case (Zimmerman 2012). The multi-device platform uses in Facebook and product features are not published through the platform. Thus, these are some major marketing management opportunities company will miss if they are not included their registration on Facebook.

Case Study 2

1. Functional and strategic roles of new pricing approach

The new pricing approach is the process of introducing "access fee" for each window table as those tables are booked by many people and rest of the tables are not booked frequently. The decision is right in sense of balancing the loss that the company has encountered due to the less booking of non-view tables. In case of window tables, a good view is available and people love to feel those views while they are taking their food, which is completely fine for the company, but the approach of taking window table at the pre-booking cases and not taking those non-view tables every time leads to taking this decision. In airlines, movie theatres, even in rooftop restaurants the same differentiation has been noticed and that is the reason, the process is quite good for the revenue generation of the company.

2. Clientele approach on the extra fees

Clients will pay for those tables and that string believes urge John to take that decision. This is a quite good perspective of know the customers and their financial condition also. In case of leisure, people are directed by the behavioural approach and also not try to change that unless any great difficulty in any sorts of cases has happened (Abrate, Fraquelli. and Viglia 2012). The view that delivers through those tables are amazing and people will tend to feel those scenic beauties through window tables and that is the reason people will willing to pay the extra amount charged due to that. This is justified in case of having the different section of people will take different class of tables and that reflects an opportunity for extra revenue generation.

3. Price-setting consideration 

In case of price setting, John has to think about the competitors of such business, those are also offering the same tables. As explained by Guo et al. (2103) the differentiation of pricing is emphasised on the market structure, demand of the services and other environmental factors like economy, government taxes and reselling opportunities. The pricing objectives, in that case, are based on the current profit maximization, market share leadership and product quality leadership process. The cost setting by knowing other companies value for the same table will be effective in case of long run. Target costing for a section of people will not help in that case as the expansion of market will not be there, so setting and value for each and every one will ensure the best pricing techniques in that case (Guo et al. 2013). The decision was taken by John for the extra monetary addition for those special tables will be effective and that ensures a strategic leadership change for the hotel.


Abrate, G., Fraquelli, G. and Viglia, G., 2012. Dynamic pricing strategies: Evidence from European hotels. International Journal of Hospitality Management, 31(1), pp.160-168.

Cassidy, J., 2006. Me media: How hanging out on the Internet became big business. The New Yorker, 82(13), p.50.

Ferguson, D.A., Greer, C.F. and Reardon, M.E., 2007. Uses and gratifications of MP3 players by college students: Are iPods more popular than radio?. Journal of Radio Studies, 14(2), pp.102-121.

Guo, X., Ling, L., Dong, Y. and Liang, L., 2013. Cooperation contract in tourism supply chains: The optimal pricing strategy of hotels for cooperative third party strategic websites. Annals of Tourism Research, 41, pp.20-41.

Hansson, L., Wrangmo, A. and Solberg Søilen, K., 2013. Optimal ways for companies to use Facebook as a marketing channel. Journal of Information, Communication and Ethics in Society, 11(2), pp.112-126.

Pattison, K., 2009. How to market your business with Facebook. New York Times, 12.

Ramsaran-Fowdar, R.R. and Fowdar, S., 2013. The implications of Facebook marketing for organizations. Contemporary Management Research, 9(1).

Trattner, C. and Kappe, F., 2013. Social stream marketing on Facebook: a case study. International Journal of Social and Humanistic Computing, 2(1-2), pp.86-103.

Zimmerman, E., 2012. Small retailers open up storefronts on Facebook pages. The New York Times, July, 25.

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