Effects of Social Media Marketing on the Success of SMEs: Research Proposal

Introduction

The current corporate age is characterized by mechanisms that guarantee cost reduction and an increase in profit margin. Every organization is struggling to ensure that a sustainable culture is created for the businesses to remain relevant in the industry. The need for quality service has driven organizations to increase the expenditure on customer satisfaction measures. Stiff competition has also contributed to the necessity of a strategic approach to organizational factors and activities. The variations in the external and internal conditions have been associated with the need for informed studies that will assist in mitigating the corporate shortcomings. Areas of corporate concern have been the cost of marketing, customer satisfaction, customer retention, incorporation of technology, and corporate social responsibility. The size of the business defines the magnitude of the effects of the concerns. However, the effect of the cost of brand and service promotion has been the drawback of SMEs performance. However, the use of social media marketing not only eliminates the barriers of the traditional methods of marketing but also reduces the cost of product promotion for small businesses (Mangold&Faulds, 2009). The greatest challenge for the SMEs has been the creation of a favorable marketing strategy that is cost effective but with significant results because of the limited capital operation. Social media marketing has such a potential corporate help for the SMEs. This paper is a proposal for an intended study on the effects of social media marketing on the success of SMEs.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Background of the Study

Social media describes the platforms available on the internet where the users are allowed to engage and share information, interact, and learn from the avenues set forth by the applications portfolio. Users are authorized to create accounts and share information regarding their interests and ideas. The platforms can be accessed for free, and, therefore, many users subscribe for these accounts to interact with the global village (Dahlberg, 2015). The activities in the social media range from subjects related to political affiliations, business, and social affairs and the reasons for preference of the media to use is a choice of the individuals subscribing for accounts (Evans & Bratton, 2012). The use of Facebook, Twitter, and Google Search among others has enabled millions of people to access information, meet new people, learn about the activities taking place in different locations, and enhance the performance of their professional engagements. It is essential to acknowledge that the corporate sector is changing the methods of reaching out to potential customers from the traditional techniques to the use of social media. Successful corporate sustainability calls for measures for retaining customers, improving client's experience, and growing sales. However, SMEs, operate on limited capital; therefore, there is the need to focus on marketing measures that will guarantee effective results as well as ensure the business operates within costs. The total expenses incurred during the business activities reduce the intended profit. The greatest challenge for the SMEs has been the creation of a favorable marketing strategy that is cost effective but with significant results because of the limited capital operation. Social media marketing has such a potential corporate help for the SMEs.

The cost of marketing has been increasing due to stiff competition and the need for quality consumer satisfaction. The process of acquiring the customers is complex and fruitful strategies are those based on investigative studies on market trends. The use of social media by business enterprises has enabled the organizations to reach more customers and interact with positive changes. The users on the internet are increasing on a daily basis, and the customers can engage with the business representative. Through social media, the problems of the clients can be addressed through the blog spots, pages, and handles. The companies can also employ the social media avenues to inform the customers concerning the necessary information that is required at particular times (Smith, Zook, & Taylor, 2011). The cost of managing social platform is cheap as compared to other communication methods when businesses are engaging with customers (Tuten, 2008). The desire of organizations in the corporate sector is to be in a position to generate profit. The process of profit margin expansion depends on the magnitude of the costs and expenditure in comparison to the cumulative income in a specified period. However, the businesses are bound to maintain quality service, excellent customer experience, and diverse market coverage.

Problem Statement

The process of marketing defines the publicity of the brands and services of the corporate organization. The sole financial objective of business enterprises is profit generation. However, the market coverage and the number of customers being served by the organizations define the number of sales derived from goods and services. Therefore, the stakeholders of the enterprises are bound to evaluate and form mechanisms that will increase the revenue derived from the specialized business activities. Successful corporate sustainability calls for measures for retaining customers, improving client's experience, and growing sales. However, SMEs, operate on limited capital; therefore, there is the need to focus on marketing measures that will guarantee effective results as well as ensure the business operates within costs. The total expenses incurred during the business activities reduce the intended profit. The greatest challenge for the SMEs has been the creation of a favorable marketing strategy that is cost effective but with significant results because of the limited capital operation. Social media marketing has such a potential corporate help for the SMEs.

Research Objectives

The purpose of the exposition is to investigate how the success of SMEs is influenced by the use of social media marketing. The research seeks to make sound conclusions based on the evidence collected. The exposition will evaluate how the performance of the SMEs is affected by the traditional marketing strategies and propose a social media approach to assist in building cost-effective mechanisms for the small capital organization. Social media platforms are freely available; however, business organizations can reap corporate advantages by utilizing the available avenues to connect with the many users. The following objectives will guide the study:

• To investigate the performance of SMEs based on the marketing costs
• To analyze the extent to which the SMEs have employed social media marketing
• Compare the cost of the traditional marketing and social media marketing avenues
• Compare the effectiveness of the traditional marketing and social media marketing avenues

Research Questions and Hypotheses

The following research questions and hypotheses will guide the study.

Q1: What is the relationship between the cost of traditional marketing methods and the success of the SMEsH01: There is a significant relationship between the cost of traditional marketing methods and the success of the SMEs

H1.1: There is no significant relationship between the cost of traditional marketing methods and the success of the SMEs

Q2: What is the relationship between the cost of social media marketing methods and the success of the SMEsH0.2: There is a significant relationship between the cost of social media marketing methods and the success of the SMEs

H1.2: There is no significant relationship between the cost of social media marketing methods and the success of the SMEs

Research Methodology

The study will involve a qualitative and a quantitative research technique. The study seeks to examine the effects of social media marketing on the success of SMEs. The expected results should depict the reality and the experiences of SMEs. The approach is appropriate because the study seeks to analyze the perceptions of the topic based on the views (Maxwell, 2012). The use of a mixed approach is efficient because the analysis of the information will depict both baseline evidence as well as a correlative perception to the related matter. The likelihood of the research validity and reliability is enhanced through the mixed method of research. The research questions will be the center of the study, and the results will be concluded based on the facts from a qualitative analysis as affirmed through the qualitative investigation. The mixed approach is essential because it provides and informed evidence to accept or reject the set hypotheses. The exposition seeks to determine whether a relationship exists between the success of SMEs about marketing costs and the use of social media avenues to reach their respective customers. Therefore, the approach that will be employed for the study will be used to reveal the relationship between the dependent and independent variables of the research questions.

Research Data and Analysis

The study will involve the conclusion of the topic of investigation based on the evidence collected from the sample population. The study will depend on secondary sources, which will require all the relevant information available in the printed and online media concerning the topic of the survey. Moreover, the sources that describe the success and challenges of SMEs and the social media advantages for the corporate industry will be consulted to inform the topic of the study. The relationship that will be depicted from the secondary sources will be affirmed through the primary data collected during the survey. The sample or the study will be the SMEs stakeholders who will be randomly selected. The primary data will be gathered from the interview of 20 SMEs stakeholders and administrators. The use of interview was chosen because the respondents are allowed to reveal their perceptions regarding the topic of the study. The interview questions will be based on intentions of the study and the research questions. The data analysis process will involve the sorting of the collected data based on the need for evidence that will assist in accepting or rejecting the research hypothesis. Through statistical analysis, the correlations between the respective dependent and independent variables of the study will generate the basis for the conclusion. The information from the secondary sources will enhance the research validity and reliability. The data to be collected will relate to the following:

• The general performance of the selected SMEs
• The challenges associated with marketing costs
• The extent to which the SMEs have employed the use of social media
• The expected solutions to the current challenges entailing the marketing strategy

Conclusion

The goal of the exposition is to investigate how the success of SMEs is influenced by the use of social media marketing. The research seeks to make sound conclusions based on the evidence collected. The cost of marketing has been growing due to stiff competition and the need for quality consumer satisfaction. The process of obtaining the customers is complex and fruitful strategies are those based on analytical studies on market trends. The use of social media by business enterprises has enabled the organizations to reach more customers and interact for positive changes. The sole financial objective of business enterprises is profit generation. However, the market coverage and the number of customers being served by the organizations define the number of sales derived from goods and services. Therefore, the stakeholders of the enterprises are bound to evaluate and form mechanisms that will increase the revenue derived from the specialized business activities. Successful corporate sustainabi...