Social media marketing of SMEs in regional Sweden : A study of the automotive sales industry

Abstract Background The recent developments in technology have resulted in an emergence of social media platforms and they are now an essential part of everyday lives of consumers and businesses. Since a lot of companies utilize social media in their marketing activities, the marketing strategies of small and medium sized enterprises (SMEs) have changed from the traditional practises. Due to their limitations in resources, they need to be creative and flexible in their marketing. Since cars are classified as high involvement products, customers spend more time on information search before making the purchase. This has resulted automotive retailers to utilize more social media into their marketing, as it is among the most popular channels for consumers to search for information. Jönköping is among the leading industrial cities in Sweden and it is well known for its entrepreneurial spirit as it hosts a large number of SMEs. Because of this, the authors of this research have investigated how SME car retailers in the region of Jönköping utilize social media marketing. Purpose The purpose of this thesis was to research how SME car retailers in the region of Jönköping utilize social media in their marketing activities. Method A qualitative research approach with semi-structured interviews was conducted in order to develop an understanding of how small car retailers in Jönköping region utilize social media in their marketing activities. The owners of car dealerships were interviewed since they could contribute with insights from the firm and its marketing activities. Conclusion The findings of this thesis show that SME car retailers in Jönköping region utilize social media in their marketing activities and this is a major factor contributing to their firm performance. However, the companies do not use it to its full potential and it can be identified that there is room for improvements when it comes to social customer relationship management and creating marketing strategies