Social Media for Marketing by Small Businesses€¦ · Social Media for Marketing by Small...

Journal of Marketing and Management, 7(1), 24-39, May 2016 24

Social Media for Marketing by Small Businesses

Kira Gholston, Matthew Kuofie

Argosy University, USA

[email protected],[email protected],[email protected]

Amy Cooper Hakim

The Cooper Strategic Group, USA

[email protected]

Abstract

Social media is currently a component of most business environments. Therefore, it is very

important for small businesses to understand how to use social media networks like Facebook,

Instagram, Twitter, etc. Small businesses unfortunately do not have a strategy in place when

they being using social media to expand their business and engage their customers. Strategies

were revealed that suggested what small businesses should do in order to engage with their

customers. Finding include creating relationships, increasing brand exposure, focusing on

relationship building as opposed to sales, how to increase sales, and how content start

interactions. Overall, social media for marketing by small businesses is essential.

Keywords: Social Media, Marketing, Business Strategy, Small Business, Business Start-Up

Introduction

Social media has a problem that exists within its overall approach. The problem is that customers

have no shame, follow the crowd, lacking answerability, and acting in secrecy (Guest, 2012). The


problem is due to social media enabling customers with tactics that spark negative behavior (Guest,

2012).

Although social media is handled as an extension of the marketers brand in a way that one

would hope could be a sales vehicle via email or product description page. Marketers making use

of social media juggle between likes and shares. When the number of likes and shares do not

measure up they decided to push harder or delete their social media page convinced that it is a

marketing tool that is useless.

Melewar & Smith (2003) revealed that the Internet is accessed by over one billion users

(p. 363); two-thirds of which access social media (Solis, 2010, pg.17). Casey (2009) suggests that

marketing as per the internet is new and more people are getting used to it and its concepts (p.11).

The ambiguity of marketing can be beneficial in accordance with communicating via social media.

This cultural occurrence has transformed into the new word of mouth due to consumer usage

(Thomas, et al., 2012, pg. 88). Despite the ambiguity of marketing by use of social media, social

media is beneficial in regards to it still possesses it benefits, advantages, and rewards. For instance,

benefits come by way of providing brand awareness, and breaking into new markets at a reduced

cost due to control of e-word of mouth (Solis, 2010).

According to Hansen et al. (2011), social media is a huge source of the business along

with being communication for marketers allowing for both communication among customers and

able to listen to feedback and responses (p.10). Contrary to these findings, negative buzz can spread

at an increased pace in comparison to positive buzz which can result in having a damaging effect

on the brand (Solis, 2010).

Henceforth, the present study focuses on how small businesses know when to use social

media. In addition the study will focus on why some small businesses have an increase in sales


using social media and why others do not. The current study was designed to gather data to answer

the following two research questions:

RQ1: How does a small business known for using social media build their business to gain

customer attention?

RQ2: How does some small businesses increase in sales using social media but others do not?

Data Collection

This study’s data was collected by way of interviews and unobtrusive methods. The researcher

determined what strategies are used on social media via the owner-manager to engage their

customers. How the owner-manager’s efforts are apparent also acknowledged. The results are

analyzed deeply due to detailed information on how managers utilize social media. The business’

social media activities were relevant to the case study due to the review of documents and collected

data by the researcher.

• Data Collection

• Social Media

The researcher was able to gain insight on owner-managers social media strategy by way

of focused interviews.

• Each interview was transcribed immediately after by the researcher.

• Qualitative data was encoded by way of thematic analysis, which was used to analyze the

data (Boyatzis, 1998). This approach allows the researcher a way to differentiate and make

sense of the material that may appear to be unrelated.

• In the context of a theory, the researcher must be able to sense themes, distinguished

between what can be coded and encode these moments constantly, develop codes and

interprets the information (Boyatzis, 1998).


• The researcher will allow the themes to become apparent from the information being

examined as it pertains to this.

• 25 owner/managers participated in the final study

• Conducted an 8-26 minute face to face interview at an off-site location.

• Verbatim data was manually transcribed immediately after every interview session by

Rev.com.

• During the data collection process, 25 purposefully small businesses participated based on

criterion sampling.

• Additionally each interview time ranged from 8 to 26 minutes. Once participants were

introduced to the research process they were asked to sign a consent form. The interviews

were done in a focused interview style. Once the interviews were completed they were

transcribed by Rev.com

Data Analysis

• 25 owner/managers participated in the final study

• Conducted an 8-26 minute face to face interview at an off-site location.

• Verbatim data was manually transcribed immediately after every interview session by

Rev.com.

Questions can be found below which included the following questions:

Purpose

1. What did your business use for marketing prior to using social media?

2. What was the reason why you chose to use social media?

3. What techniques do you utilize to engage your customers?


4. What challenges did you face when introducing social media to your business plan?

5. What do you hope to accomplish through social media?

6. Did you do any research prior to using social media for your business? If so, which resources

were most helpful?

7. How did you decided which social media service would be appropriate for your company’s

use?

Strategy

8. What have you done to connect with your audience?

9. How did you ensure that your participants are satisfied with the experience?

10. What sort of content do you share?

11. How do you moderate comments? Transparency? (Clearness)

10. Do you post the same message on Instagram and Twitter that you post on Facebook or vice

versa? Why or why not?

11. How are you currently listening to your customers?

12. Are you listening to customer conversations that aren’t about your brand, per se?

13. Do you listen to conversations had by your competitors?

14. What tools/technologies are you using to monitor conversations?

15. What tools/sites/applications are you most comfortable with?

Challenges

16. Can you tell me about a time when something you’ve done online has not gone as planned?

How did you handle it?


17. What are some of the challenges you encountered when you introduced social media as a

part of your business strategy? How did you overcome them?

Results

18. How is social media success measured?

19. How do determine which strategies work versus the one that do not work?

20. Do you believe that you have obtained new customers via social media?

21. Do you believe that you have established local customers because of social media?

22. How much time and money are you willing to dedicate to social media projects?

23. How much time per day do you use social media?

24. What experience have you gained of using social media applications?

25. Do you believe without using social media you would have obtained the same results with

your customers?

The researcher was able to gain insight on owner-managers social media strategy by way of

focused interviews. Each interview was transcribed immediately after by the researcher.

Qualitative data was encoded by way of thematic analysis, which was used to analyze the data

(Boyatzis, 1998). This approach allows the researcher a way to differentiate and make sense of the

material that may appear to be unrelated. In the context of a theory, the researcher must be able to

sense themes, distinguished between what can be coded and encode these moments constantly,

develop codes and interprets the information (Boyatzis, 1998). The researcher will allow the

themes to become apparent from the information being examined as it pertains to this.


Discussions and Findings

Research Question One: How does a small business known for using social media build

their business to gain customer attention? Answers were based on interview questions 3, 8, 13,

and 14. During the interview process the, researcher kept both research questions in mind. For

instance, Research Question One: How does a small business known for using social media

build their business to gain customer attention? Question #3 was asked by the researcher to all

25 participants. Question #3 asked what techniques do you utilize to engage your customers?

The researcher received varying responses. Among these responses, 12% stated that frequently

posting was the technique used to engage customers. This 12% represented the most the most

popular/similar response. Among the 3 participants, participants 1, 4, and 9 responded with the

same answer. Participant 1 operates their small business in the real estate industry, and was

interviewed on 7/19/15 at 7:30 PM (Gholston, 2015). Participant 4 has a small business in the

beauty industry, and was interviewed on 7/19/15 @ 8:00 PM (Gholston, 2015). Participant #19

has a small photography business. Participant #19 also has the same response but was

interviewed on 8/24/2015 @ 8:08 PM (Gholston, 2015).

Secondly, the researcher asked the participants about what they have done to connect with

their audience, which is question 8? The most popular and similar responses came from

participant 11, 12, and 22. These participants all responded that you should be reachable in

order to connect with your audience. Participant 11 is in the industry and was interviewed on

8/19/15 at 7:00 PM (Gholston, 2015). This participant is an Instagram, Facebook, and Twitter.

Participant 12 is in the music industry and has an Instagram and Facebook. Participant 12 was

interviewed 8/19/15 at 8:00 PM (Gholston, 2015). Participant 22 operates their business in the


real estate industry and was interviewed on 9.3.15 @ 9:18 PM (Gholston, 2015). This slide

shows a visual interpretation of the results the researcher received in response to question eight.

Third, Question 13 asks how are you currently listening to your customers? All 25

participants responded to the researcher with varying responses. Among these responses 20%

stated that they are currently listening to their customers through feedback. This 20%

represented the most popular/similar response among the participants. Participants 2, 3, 11, 15,

and 25 responded with the same answer. Participant 2 operates their small business in the

entertainment industry and was interviewed 7/19/15 @ 8:00 PM (Gholston, 2015). Participant

3 is also in the entertainment industry and was interviewed on 7/19/15 a little after 8:00 PM

(Gholston, 2015). Participant 11 was the third participants who responded with a response that

fell in the 20% range as well. Participant 11 is in the food industry and was interviewed

8/19/2015 at 7:00 PM (Gholston, 2015). Participant 15 was interviewed on 8/23/15 at 11:00

AM (Gholston, 2015) and operates in the publishing business. Lastly, participant 25 operates

their business in the food industry. According to Table 1 (Gholston, 2015), the food industry

is the industry in which this participant practices their small business. This slide shows a visual

interpretation of the results the researcher received in response to question thirteen.

The researcher asked the participant’s question 14 are you listening to customer

conversations that aren’t about your brand per se? The researcher received various responses.

Among these responses participants 56% of the participants stated that yes they listen to

customer conversations that aren’t about their brand. This 56% represented the most

popular/similar responses among the 14 participants. Participants

2,3,4,9,11,13,14,15,16,19,20,21,24,and 25. All responded with the same answers.


Participant 2 operates their small business in the entertainment industry and was interviewed

on 7/19/15 at 8:00 PM. Participant 3 operates their small business in the entertainment industry

and was interviewed on 7/19/15 at 8:00 PM (Gholston, 2015). Participant 4 operates their small

business in the beauty industry and was interviewed on 7/20/15 at 9:30 PM (Gholston, 2015).

Participant 9 operates their small business in the music industry and was interviewed on

7/21/15 at 12:00 PM (Gholston, 2015).

Participant 11 operates their small business in the food industry and was interviewed on

8/19/15 at 7:00 PM (Gholston, 2015). Participant 13 operates their small business in the health

industry and was interviewed on 8/19/15 at 8:45 PM (Gholston, 2015). Participant 14 operates

their small business in the beauty industry and was interviewed on 7/22/15 at 7:15 PM

(Gholston, 2015). Participant 15 operates their small business in the publishing industry and

was interviewed on 8/23/15 at 11:00 AM (Gholston, 2015). Participant 16 operates their small

business in the fashion industry and was interviewed on 8/23/15 at 1:00 PM (Gholston, 2015).

Participant 19 operates their small business in the photography industry and was interviewed

on 8/24/15 at 8:08 PM (Gholston, 2015). Participant 20 operates their small business in the

beauty industry and was interviewed on 9/15/15 at 7:16 PM (Gholston, 2015). Participant 21

operates their small business in the fashion industry and was interviewed on 9/2/15 at 9:01 PM

(Gholston, 2015). Participant 24 operates their small business in the childcare industry and was

interviewed on 11/1/15 at 7:02 PM (Gholston, 2015). Participant 25 operates their small

business in the food industry and was interviewed on 11/1/15 at 7:44 PM (Gholston, 2015).

Now in reference to research question two…Research Question Two: How does some

small businesses increase in sales using social media but others do not? The researcher asked


question #5 what do you hope to accomplish through social media? 8 participants representing

32% of the responses indicated that want to broaden their business. The 8 participants who

responded in this manner were participants 4, 8, 12, 14, 20, 3, 5, and 7. Participant 4 who

operates their business in the beauty industry was interviewed on 7/20/15 at 12:00 PM

(Gholston, 2015). Participant 8 who operates their business in the music industry was

interviewed on 7/21/15 at 12:00 PM (Gholston, 2015). Participant 12 who operates their

business in the music industry was interviewed on 8/19/15 at 8:00 PM (Gholston, 2015).

Participant 14 who operates their business in the beauty industry was interviewed on 7/22/15

at 7:15 PM (Gholston, 2015). Participant 20 who operates their business in the beauty industry

was interviewed on 9/15/15 at 7:16 PM (Gholston, 2015). Participant 3 who operates their

business in the entertainment industry was interviewed on 7/19/15 at 8:00 PM (Gholston,

2015). Participant 5 who operates their business in the beauty industry was interviewed on

7/20/15 at 12:00 PM (Gholston, 2015). Participant 7 who operates their business in the health

industry was interviewed on 7/20/15 at 7:30 PM (Gholston, 2015).

The researcher asked question 6 of the participants did you do any research prior to using

social media for your business? If so, which resources were most helpful? 48% or 12

participants indicated that they did not do any research prior to using social media for their

business. Participants 1,6,7,8,13,14,15,20,21,22,25,and 4 responded in a way that represented

the 48%. The researcher asked all 25 participants question #7 how did you decide which social

media service would be appropriate for your company use? 7 participants had similar responses

which represented 28% of the responses which indicated that Instagram would be appropriate

for their business to use.


When the researcher as the participants question #20, how is social media success

measured? Results from this question concluded that 2 participants wanted to see an increase

in sales which represented 8% of the data. 2 participants wanted to see an increase in followers

which represented 8% of the data. 2 participants didn’t know nor had an answer which

represented 8% of the data. The other 19 participants have varying responses with no

commonalities or similarities found; which represent 4% of the data each. To conclude three

answers tied at 8% which included an increase in sales and followers and another 8% didn’t

know. Visually, the green section in the pie chart represents the percentage of the majority of

the responses received that were similar in nature.

Conclusion

RQ1: How does a small business known for using social media build their business to gain

customer attention?

Answers:

• Frequently posting

• Connect with their audience

• Feedback

• Listening to customer conversations that aren’t about their brand per se.

RQ2: How does some small businesses increase in sales using social media but others do not?

Answers:

• Bigger Clientele


• No, They did not do any prior research prior to using social media

• Instagram

• Increase in sales

This study was intended to answer the research questions pertaining to how a small

business uses social media to engage their customers. 25 small businesses from the Philadelphia,

PA area were interviewed in order to answer this question. The thematic analysis was used

(Boyatzis, 1998). The data was presented. Based on the results a variety of strategies were used

to build and maintain relationships, which kept customers interested. The results revealed that

some small businesses had answered in a similar fashion and others did not. This revealed a

theory which showed a correlation between small businesses and the social media strategies they

utilized. From the beginning social media and us importance was evident because all of the 25

small businesses utilized social media in some form weather it was by using Facebook,

Instagram, or Twitter, even if it was all, some or one.

All of the small businesses expressed struggling or having an issue with social media in

the beginning. The choices each small business utilized were explained during the interview,

which displayed how their consumers were engaged and strategies that were utilized. In the

beginning before social media was used many of the same businesses did not have a real strategy

but chose to use word of mouth. Without a definite strategy, this can result in wasted time and

effort on the small businesses behalf. This is the reason why the same business needs to

determine what goal(s) they would like to achieve by using social media. It simply does not

come down to just creating a social media account, posting to it and checking it weekly.


How does a small business known for using social media build their business to gain

customers?

In order to determine how a small business known for using social media to build their

business to gain customer attention; the small businesses must actively participate, have the

knowledge needed to run their social media page(s) and develop a strategy which engages their

audience.

Currently social media is an environment motivated by developing an understanding of the

social media atmosphere. With social media, communication takes place in a variety of ways

through post, private message, etc. Therefore, establishing how a small business uses social media

to engage customers is significant. Social media is a new venture for many small businesses.

Through active participation it is learned that social media can be a task that is overwhelming if

you have not established an understanding if what social media has to offer. In order to have your

business grow, small businesses need to determine how to use social media to engage their

customers and build solid relationships.

How does some small businesses increase in sales using social media but others do not?

This question stems back to what was mentioned under the implications section under

number two. Basically, small businesses need to focus on relationship building. Once this is the

primary focus then the small business will automatically see an increase in sales due to engaging

with their customers which keeps them interested.


Implications

Small businesses can obtain suggestions in which this study provides. These suggestions

are relevant only after one is made aware of the study limitations. For instance, social media

marketing strategies were analyzed in the Philadelphia, PA region among 25 small business

participants. Findings are not confirmation that results can be generalized in all small businesses.

The results provide an example of what a small business may use in reference to social media to

engage customers and this is the only interpretation that should be had. To conclude, there are four

things suggested for small business owners which emerged from this study.

1. Brand exposure is increased when a small business networks and creates relations.

2. When and if a small business places its priorities into building relationships instead of focusing

on sales, sales will increase.

3. When you post interesting content this promotes some sorts of interaction between you and your

customers.

4. The learning curve is a stumbling block for most small business owners. Social media is free

yet it is time consuming. By getting involved in social media or asking questions about it the small

business may learn about social media that way.

Recommendations

Recommendations for research of this caliber are endless. Future researchers may

conduct research that is similar in nature among small businesses that felt that their social media

usage was unsuccessful through a comparison of the strategies that each small business utilized.

Eleanor Shippey


An investigation of the social media post can be conducted to determine why the businesses social

media efforts might have failed.

In addition to this, my research focused on the Philadelphia, Pennsylvania area and perhaps

the researcher could focus on another area of interest or multiple areas and conduct an analysis of

the results. Additionally, it is recommended that the researcher conduct research that is maybe

gender or industry specific to determine if the results would be the same. Currently, gender is a

hot political topic. So it would be interesting to focus on certain aspects of this.

Furthermore, one could also focus on social media in a totally different aspect. Examples

would include social media and how one would disengage with customers for a specific reason as

my research focused on how one would engage with their customers on social media. Or one could

research from a customer standpoint as my research focused on things from an owners or managers

point of view.

Additionally, research could be done on medium-sized businesses. Possibly, the researcher

could also focus on using one specific social media network. My research focused on three

different social media networks which included Facebook, Instagram, and Twitter. If the

researcher focused on just one social media network this could bring another aspect or approach

to the research. For an example, one could use other social networking sites such as YouTube,

Pinterest, Linked In, Myspace, Pheed, Reddit, and Tumblr just to name a few

References

Boyatzis, R. (1998). Transforming qualitative information: Thematic analysis and

code development. SAGE

Gholston, K. (2015). Interview Log Information . Philadelphia, PA, United States.


Guest, S. (2012, November 9). Social Media is Creating Bad Customers. Retrieved from

http://www.senseimarketing.com/: http://www.senseimarketing.com/social-media-is-

creating-bad-customers/

Hansen, D. L., Shneiderman, B., & Smith, M. A. (2011).Analyzing social media networks with

NodeXL: Insights from a Connected World .Burlington, MA: Morgan Kaufmann.

Melewar, T. C., & Smith, N. (2003). The internet revolution: Some global marketing

implications. Marketing Intelligence & Planning, 21(6), 363-369. Retrieved from

http://search.proquest.com.library.capella.edu/docview/213133693?accountid=27965

Solis, Bryan (2010) Engage; the complete guide for Brands and Businesses to build, cultivate,

and measure success in the new web age, John Wiley and Sons, Hoboken, New Jersey.

Casey, M. (2009). Marketing via the internet. American Printer, 126(6), 11-11. Retrieved from


Thomas, Peters, Howell, and Robbins (2012) Social Media and Negative Word of Mouth:

Strategies for Handling Unexpecting Comments. Atlantic Marketing Journal, Volume 1,

Issue 2, summer 2012, Article 7, Pages 86-108 Retrieved from

http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1018&context=amj

http://www.senseimarketing.com/social-media-is-creating-bad-customers/

http://www.senseimarketing.com/social-media-is-creating-bad-customers/



http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1018&context=amj

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