Social media is playing an increasingly important role in people’s lives and is becoming a part of most organisations’ business models. Businesses cannot ignore this phenomenon due to the increasing influx of Generation Y employees in their businesses and the Generation Y consumers who are going to buy their products and services in the future. Social media is changing the way that marketing is being conducted, in a positive way. It is changing from businesses focusing on selling products or services to customers, to businesses building relationships with customers and adding value to their lives through their products and services. This phenomenon was the base for this study. The research problem was identified as follows: SMME business owners do not understand the importance and impact of social media on their businesses. Sub-problems were identified as: defining social media and networking, describing the importance of this, which strategies are currently being used in business, how it compares to traditional networking, how this is used in recruitment strategies and what are the disadvantages of social media and networking. The research problem and sub-problems were addressed in a literature study and an empirical study. The literature study included information on SMME businesses, their importance in our economy and how social media can help them. The empirical study was done using SMME’s registered with the George Business Chamber. A questionnaire was designed and distributed to the owners of the businesses by email. The answers were analysed and collated on a spreadsheet which were presented in graph and diagram format. Social media and networking are becoming an integral part of businesses especially small businesses. They specifically have an important role to play in creating economic wealth and creating employment. SMME’s are faced with a lot of challenges which make it difficult for them to become successful and sustainable. Social media can play a role in overcoming a lot of these challenges by helping SMME’s with marketing, customer engagement, relationship building, recruitment, and finding valuable information, experience and partners. Social media also has disadvantages which include: virus attacks, risk of confidential information leaking and so forth, but these can easily be managed by social media polices and rules. A bigger risk lies in the fact that if a business owner ignores the existence of social media, this can lead to conversations by consumers about this business being ignored and not responded to. Another big risk for SMME’s is the fact they are at a competitive disadvantage by ignoring this new technology. This was clear from the empirical results in this study which stated that 53 percent of the businesses surveyed, were aware their competitors are using social media. The empirical results indicated a very low use of social media activities among the SMME’s surveyed but showed potential as the SMME’s understood the importance of social media and were eager to implement strategies in their businesses. The reasons offered for not using social media included the fact that it was difficult to measure its worth in time and money, advice is needed from experts and so forth. Social media and networking are not quick or cheap methods for businesses to advertise and sell their products or services. They are tools to be used over time, in order to engage with customers and build relationships. Consumers and customers expect value for their money and if they find this from a business, they will gladly share it with others. On the other hand, if they do not find value for money it could have a negative impact on the business. SMME’s must not try to replace their current marketing strategy with social networking activities. They should integrate it slowly into their current business models and search for unique ways in which it could improve the relationship with their current customers and find new customers. It should help them to either showcase their existing value added products or services, or improve it if it is not worth selling. Small businesses now have the platform to compete.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8873 |
| Date | January 2012 |
| Creators | Morley, Charmaine Joan |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 111 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
Page generated in 0.0022 seconds