The Effectiveness of Social Media Marketing In Small Business Performance: A Case Study of Central Business District Nairobi

A Research Project Report Submitted To the Chandaria School of Business in Partial Fulfillment for the Degree of Masters in Business Administration (MBA)Social media marketing is an online communication or an e-commerce that businesses interact with customers in an exchange of goods and services. The main purpose of this study is to determine the effectiveness of social media marketing in small and medium enterprises. The researcher came up with objectives which were; to determine the effectiveness of Facebook to market accessibility for small businesses performance, to determine the effectiveness of Instagram to market accessibility for small businesses performance and to determine the effectiveness of twitter to the optimization for small businesses performance. This study adopted descriptive research design, which is an approach that attempts to identify and explain the variables that exist in a given situation and describe the relationship that exist between the variables. A sample size of 100 businesses was selected from a target population of 12,500 businesses. Data collection was done using both open and closed ended questionnaires. The sampling frame included small business owners that were present at the time of administering the questionnaires. Instruments that were used included explanatory questions, dichotomous questions, objective questions, ranking and questions based on an interval scale. The interval scale was a 1 – 5 likert scale, where 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree and 5 = strongly agree. The researcher observed highest degree of ethical consideration during the period of data collection. On the effect of Facebook to the market accessibility on small business performance, majority of the respondents agreed that the Facebook enables business to discover what the society needs and majority of respondents strongly agreed that Facebook has enable increase in brand awareness of your products and services. A large proportion of respondents agreed that Customers visit different business pages before purchasing a product. Moreover, a larger number of respondents to a high extent agreed that promotions and discounts displayed on the business Facebook page increases sales. On the other hand, a large number of respondents disagreed Facebook has led to less environmental use in conducting your business. Many respondents were in agreement that Facebook has increase close customer relationship with your business. Regarding implication of Instagram to the market accessibility for small businesses performance. Respondents agreed Instagram enables business to connect deeper with the consumer. Moreover, they agreed that business should entertainment and information posts for customers to engage. However, majority of respondents disagreed Instagram has enable your business to engage easily with customers by sending samples, adverts. Majority of respondents agreed that Instagram has modify your marketing strategies and push to internet marketing. On the other hand, respondents strongly disagreed that Consumers uses business post for their next purchases. A large number of respondents agreed that use of Instagram has pushed your business towards E-commerce use in conducting business such as internet advertisements. Moreover, a large proportion of respondents it is easy to connect with your customers through Instagram when passing marketing information The findings on the effect of twitter to the optimization of small businesses performance, majority of respondents agreed that Customers could influence products through twitter. A large proportion of respondents disagreed Twitter has increase the consumer purchasing decision in your business. Majority of respondents disagreed that using Twitter in Business has cut down the cost of operation. A large number of respondents disagreed Twitter enables easy interaction with customers and majority of respondents strongly disagreed using Twitter to market for your business is inconvenient especially with the environment you live. The study concluded that majority of respondents in this study disagree that Facebook leads to brand awareness of small business only the large companies. Majority of respondents agreed that customers visit different business pages before purchasing a product and promotions and discounts displayed on the business Facebook page increases sales. The findings implied that Facebook leads to environmental preservation and majority of respondents agreed that Facebook leads to customer relationship. Instagram leads to engagement with customers and leads to modification of marketing strategies.Respondents agreed that Instagram leads to influencing buying decision. Respondents also agreed that it is easy to connect with your customers through Instagram when passing marketing information. This indicate that Instagram has lead to incrrease of e-commerce. Moreover majority of respondents agreed that Using Twitter encourage better understanding of customer’s needs. Moreover, respondents strongly disagreed that twitter has increase the consumer purchasing decision in your business this indicates that twitter does not help business to reach their customers. Thus majority of respondents disagreed that Twitter enables interaction with customers. The study recommended that for small business to succeed, Facebook should be used as a marketing tool for products and services. Customers spend most of their time on Facebook and it is where business will meet new customers getting feedback on how the customers want to be satisfied. Satisfactions of customers always come from their expectation and not every business know if they meet that satisfaction unless they get feedback from the customers. Small business should make sure that the complaints of the customers through Instagram are answered and changes should be made to satisfy the customers and not to destroy company’s image. Small businesses need to learn more on how to communicate with their customers and the usage of Twitter. Small businesses can use examples of big businesses that use Twitter to market their services and products