Role of Social Media in the Growth of Small Businesses

In the general context, social media or social networking refers to all tools of online technology such as Facebook, Twitter, LinkedIn etc. that allow people to use the internet to communicate in order to share information and resources.

With the advent of the internet, the world has become a tiny place – a global village. Among other things, internet connectivity has changed the way people work, communicate, and think. Traditional media might be in the danger of becoming irrelevant.

Importance of Advertising and Marketing for a Business Enterprise

Advertising is the process of non-personal communication on information of goods, services, and ideas to intended customers in a persuasive language. Marketing is a broader term that includes market research, sales strategy, product pricing and distribution, advertising, and customer support.

Any business has four basic requirements for production, referred to as factors of production – land, labour, capital, and enterprise. The produced goods and services have to find a buyer if they have to demonstrate their caliber. This is where the importance of a market makes its presence felt.

When everything else offered by competing producers of goods and services is at the same level, it is the marketing skills that make all the difference. Advertising and Marketing are, therefore, of critical importance for any business.

Social Media and Small Businesses

Cost Effective: For a start-up business based on limited finances that cannot afford to advertise on television, radio, or in newspapers, the social network provides a great channel of communication with prospective clients. Your company’s visibility will improve quickly and efficiently

Overcoming the barriers of Time and Geography: Since the internet helps establish connectivity on a global scale, your company will be visible across the face of this planet, barring those areas where internet services are unavailable or where social media sites are banned

This is in marked contrast to traditionally expensive channels of communication

Domino Effect: Each contact / friend of yours on the social media site will have a number of other contacts. Your friend can communicate his positive experience with your products and services to his contacts who, in turn, can repeat the process

This will create a constructive chain reaction that creates a whole network of potential and actual customers

Publicity through the more effective Informal Channel: Because every link in this chain can vouch for the quality that you provide, socially networked promotion is as close as you can get to achieving a positive, word-of-mouth publicity

With good reviews from the existing customers, you are, in effect, advertising with a personal touch – overcoming the limitation of advertising through the traditional media

A word of caution – what works for you, can easily work against you. An angry client can feed in negative comments and drive away a few potential clients. It will be in your interest to maintain quality and engage with dissatisfied customers

Stronger Relationship with Clients and Customers: This can be established by quickly acting on complaints, suggestions, and doubts raised by customers. A satisfied client will be more than willing to provide a positive feedback and referrals Because communication with the client can be established quickly, social media can also facilitate the process of providing almost-immediate customer support

The key to putting the social media to such an effective use is to integrate the social media aspect of your business with other aspects of marketing in your company to establish a mutually beneficial equation between them

Incorporation of Common Customer Tastes in your Product / Service: If you really want to set a benchmark in customer satisfaction, you can actually analyze the feedback, find common elements in it, and effect necessary changes in which your products are made or the way in which your services are provided

This will add a completely new dimension to customer satisfaction and take your business on to a newer, higher level. You will go head and shoulders above your competitors

If you ask the heavyweights in any field what the most important element in their profession is, they will invariably answer this: the people. Despite colossal technological advances made by mankind in all spheres of activity, the one thing that still requires skill to provide is the human element. With proper handling of the social media, you can add this aspect to your work culture.

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