Marketing Problem at Facebook

Excerpt from :

Managerial Challenge at Facebook

Marketing Problem at Facebook

Application of Project Management to Facebook's Marketing Problem

Project Team

The Triple Constraint

Gant chart of the Project

Application of Operations Management to Facebook's Marketing Problem

Application of Information Systems Management to Facebook's Marketing Problem

Assignment of the Project Team

Training Needed

Work Breakdown including Critical Path

Planning Budget

Facebook is one of the social media platforms that has transformed modern communications and become highly successful and profitable in the process. Throughout its operations, the company has remained successful and adopted suitable business strategies and initiatives. One of these initiatives is the recent initial public offering that was largely successful despite numerous challenges in initial stages. However, several events have taken place in the recent past and contributed to decline in the number of Facebook's users. This decline is a reflection of marketing and advertising problems at the company, which is a significant managerial problem.

The company is facing the need to remain attractive to younger users, especially teenagers and expanding advertising. A marketing project is proposed to help address this managerial challenge and enhance Facebook's profitability in light of increased competitiveness. A project team has been established to deal with the projects implementation from the initial to the final stages. Through using project management, the project team will conduct a critical review of current marketing strategies and efforts, define the problem, identify existing organizational resources and opportunities, and design the project. The project team will work in collaboration with the marketing department and Information Technology department.

The project team will utilize operations management to generate changes to change Facebook's mobile advertising strategy, increased use of video advertising, switch marketing data to target customers, roll out of new products seamlessly, and generate income through Facebook pages. This process will involve information systems management in which the IT team will work with the marketing department and project team to develop necessary applications and services to enhance marketing and advertising.

Managerial Challenge at Facebook

Facebook is one of the most profitable businesses that have transformed modern communications, especially with the rapid growth and development of social media. The success and profitability of this company can be attributed to strategies adopted by its founder, Mark Zuckerberg, his advisors, and management team. This success is evidenced in its market valuation of $100 billion, which is an impressive accomplishment for a firm that started about 10 years ago. Facebook recently conducted an initial public offering (IPO) that was geared towards boosting its operations and profitability. Despite challenges in its IPO, the business has continued to show its capability to enhance profits and promote growth on mobile platforms. However, Facebook is experiencing a marketing problem because of decline in its share price, which has generated concerns regarding its marketing challenge. Facebook must address its marketing problem in order to keep users interested and expand advertising through effective project, operations, and information systems management.

Marketing Problem at Facebook

Facebook is one of the most successful and profitable businesses in the Information Technology field, particularly social media platforms. The company, which was started nearly 10 years ago, has a market valuation of $100 billion (Wallbank, 2012). This valuation reflects an impressive achievement and shrewd business strategies and initiatives adopted by Facebook's founder, his advisors, and the management team. One of the most significant steps taken by the company to enhance its profitability and growth is conducting an initial public offering (IPO), which was seemingly rocky but largely successful. However, the decline in its share price, decline in daily usage among teenagers, and its current advertising plan has generated a managerial challenge of marketing.

Despite increasingly showing capabilities to enhance profits while promoting growth over the years, Facebook's management is experiencing marketing challenges or issues. These challenges are evidenced in difficulties to keep younger users interested and increasing advertising without neglecting all customers. In December 2013, Facebook reported strong financial performance for this quarter though it also admitted that the daily usage of its services among teenagers declined for the first time (Knowledge Wharton, 2013). This decline came at a time when the firm highlighted its strategies towards increasing its advertising base and increased competition from other social media companies, especially Twitter that was conducting its IPO. Moreover, Snapchat, a social networking service, had become popular among teenagers during this period and affected Facebook.

Generally, Facebook has demonstrated its maturity in business through effective management of costs and revenue growth. As a result, it has developed to become a must-buy advertisement alternative for marketers. In the past few years, the firm has specifically focused on financial returns and implementation of its business strategy since its IPO, which was largely successful despite being initially rocky. Through its focus on operational and financial aspects, the company has increased its number of users and reached the peak for organic growth. While there are numerous opportunities for enhanced profitability, Facebook has significant marketing problem, which is a huge managerial challenge. The company has failed to capitalize on the various available ways for it to make money through increased advertisements such as branding, mobile advertising, and direct response advertisements.

Facebook's fortunes have received considerable attention in the news media and business circles given its huge customer base and profitability. The recent decline in its share price has also been a major issue in news media since questions have emerged regarding Facebook's long-term value and marketing strategy (Cameron, 2012). This has become a major marketing issue for the company's management, which needs to evaluate current advertising and develop effective measures to improve profitability. Actually, the firm's founder and his management team need to address this marketing problem through focusing on enhancing user experience, which will help increase daily usage and overall productivity of the company. The most suitable means for Facebook to address this managerial challenge of marketing is through effective project, operations, and information systems management.

Application of Project Management to Facebook's Marketing Problem

Project management is one of the most important business strategies and approaches that Facebook can utilize to address its marketing problem. The first step of project management for this managerial challenge is to define the problem or issue in a manner that reflects the company's resources and existing opportunities. This should be followed by conducting exploratory research, redefining the problem, and identification and development of suitable strategies to address it (Parkinson et al., 2009, p.6). Some of the important aspects to include in project management for this issue include establishing a project team, using the Triple Constraint, and developing a Gantt chart with critical path.

Project Team

A project team to develop strategies and practices for Facebook's marketing problem is crucial towards handling this management challenge. The project team for this issue will comprise seven (7) members headed by the company's top advertising product executive and members of the marketing department. They are mandated with the task of developing marketing strategies and practices that will help improve Facebook's profitability by increasing the attractiveness of its services to users, especially teenagers. The team will conduct a critical review of the existing marketing and advertising approaches vis-a-vis the desired marketing objectives. They will examine the organization's resources and opportunities to enhance marketing strategies. They will then provide action plans for dealing with the problem and oversee the implementation of these plans relative to desired objectives and profitability.

The Triple Constraint

As part of action plans development, the project team will utilize the Triple Constraint to establish project cost, delivery time, and agreed scope in a manner that meets customer needs. The customer quality issue for this project is keeping younger users (teenagers) interested in Facebook and enlarging advertising without neglecting all customers (Knowledge Wharton, 2013). The cost of the project will largely depend on the recommended strategies and execution initiatives though it should not exceed 10% of the company's market valuation. The project should be implemented within the next 6 months and subject to periodic evaluation as well as cover marketing and advertising only as shown in Figure 1.


Keeping Facebook Interesting to Teens and Expanding Advertising


Less than 10% of Facebook's market valuation


Marketing and Advertising Strategies and Practices


Development and Implementation within 6 months Figure 1: The Triple Constraint

Gantt chart for the Project

The project team will utilize Gantt chart to plan and schedule for the marketing improvement strategy. This chart will be helpful in controlling the various activities and ensuing they are executed within the stipulated timeframe. Since the project team has a 6-month scope for complete delivery of the marketing project, the creation of a Gantt chart will enable team members to know or have a glimpse of when every task needs to be executed as shown in Figure 2. This helps them to conduct their respective jobs and responsibilities within the required time and avoid delays.

Figure 2: Gantt chart for Proposed Project

Application of Operations Management to Facebook's Marketing Problem

The implementation of this project to deal with Facebook's marketing problem will have…

Sources Used in Document:


Cameron, M. (2012, August 31). Facebook's Big Marketing Problem. Retrieved March 13, 2016, from

Edwards, J. (2012, September 5). Here Are Facebook's 7 Biggest Problems, According To Its Top Ad Product Exec. Business Insider. Retrieved March 13, 2016, from

Food and Agriculture Organization. (n.d.). Chapter 9: Marketing Information Systems. Retrieved March 13, 2016, from

Heldman, K. (2007). PMP: Project management professional exam study guide (4th ed.). Indianapolis, IN: Wiley Publishing Inc.

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