THE EFFECT OF SOCIAL MEDIA IN SMALL BUSINESS

Abstract

This study is on the effect of social media in small business. The total population for the study is 200 staff of selected SMEs in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, sales representative and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

• Background of the study

Social media is a tool which enables small businesses to reach a large and potentially global audience in a very short period of time with relatively little energy. This has opened a whole new opportunity to the way a small business can develop awareness about its goods, services and marketing activities and able to develop relationships by communicating positive image and dialogue about a brand. Social Media is a revolution. Personal, professional, and commercial aspects are combined seamlessly, and in a blink of an eye, it promotes extreme extensive inter and intra communication and interaction. Unlike traditional media channels, which offer a one-way experience, social media is based on a two-way interactive experience between the consumer and the business. Social Consumer, the term added in the study, is one who participates in social commerce, social shopping, and consults with social media and social networks when making purchasing decisions. Consumers interact with businesses or brands via social media, for getting discounts or coupons, reading reviews as part of purchasing process as customers research product information before deciding to transact. Consumers are willing to interact with businesses through social media for their benefit, and also to decide whether social media is the right channel to use to get the value they seek and can help create trust for the company. That value could be in the form of a coupon or specific information. Engaging with a company via social media may result in a feeling of connectedness for consumers an emotional, intangible gain but the wish for intimacy is not what drives most of them. For most consumers, social media is about engaging with friends and family and accessing news and entertainment not interacting with brands. Businesses are betting that social media interactions will engender increased customer loyalty marketing strategies of various micro and small businesses are beginning to include social media as a valuable tool to connect with a vast pool of potential customers in ways that encourage people to share information in a conversational manner. Although marketers have traditionally focused all of their energies in ensuring the best placement in the market. There is the possibility that over the period of time people will start to perceive social media sites as the main source of all their information and hence the best opportunity for micro and small businesses will unfold here. Social media marketing has become more common with the increased popularity of websites such as Twitter, Facebook, LinkedIn, and YouTube. Social media marketing refers to marketing done through social media or social networking websites. While most companies and organizations have their own websites, it can be difficult to reach users not know about the organization. Therefore, many organizations have found it useful to develop a presence on websites, such as Facebook, LinkedIn, and Twitter as well. Social media marketing provides a low cost opportunity for businesses to reach large numbers of users and gain brand recognition. Since social networking websites already have large established online communities, businesses and organizations can gain exposure by simply making their presence felt on these websites. Organizations can create custom social media profiles, and then build their own communities within these sites by adding users as friends or followers. Many companies attract users by posting frequent updates and providing special offers through their social media profile pages. While social media marketing is a powerful online marketing tool, it is typically used to supplement other marketing methods rather than replace them. Since just about any company or business and join a social networking website, it can be difficult to stand out from the crowd. Therefore, most companies still rely on Web advertising and search engine optimization to generate traffic to their websites. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks.