Impact of social media marketing in businesses growth and Performance Assignment 2022

Impact of social media marketing in businesses growth
and performance
Abstract
Despite the development of the internet in the 21st century, social media has evolved in
popularity and significantly altered the way businesses engage with their target consumers
and market their products or services. The purpose of this research is to investigate the
impacts of social media marketing on business growth and performance. The participants of
this study consisted of 64 adolescents under the age of 18 to over the age of 22. Data were
collected through an online survey questionnaire which was created using Google Forms. The
results of this present study revealed that in this era almost everyone accepts that social media
marketing is an effective way for better business performance because of a higher level of
social media usage. Moreover, the study has also concluded that social media marketing has a
positive and significant effect on business growth and performance, such as enabling impulse
purchase, increasing sales, and the cost of advertisement for a company. This research
indicates that social media marketing has a positive relationship with the business platforms.

Introduction
i. Background of the Study
Within a number of businesses, social media technology has been accepted as part of the
marketing strategy and operational culture. For example, job searches show that marketers
are increasingly incorporating social media into their strategic plans and are looking for
marketing experts to launch and manage these initiatives. Social networking is becoming a
mainstream tactic for many marketers, as evidenced by the expansion of technologies like
Twitter and Facebook. Information is power (Park, S.2017). This is a well-known adage, yet
many people have realised how powerful social media has become. In this way, anyone
online gets access to an unrestricted stream of information through social media, which they
could have used to expand their base of knowledge. In today's society, it is apparent that
social media has a significant influence on our culture, business, and overall vision (Amedie,
Jacob 2015). Whenever we refer to social media, people generally consider of Facebook,
WhatsApp, Twitter, YouTube, LinkedIn, Pinterest, and Instagram. These platforms are
powered by user-generated content and have a huge impact on everything from marketing
habits to entrepreneurship, political concerns, and venture capital (Kapoor, K.K., Tamilmani,
K., Rana, N.P. et al. 2018). Despite the development of the internet in the 21th century, social
media has evolved in popularity and significantly altering way businesses engage with their
target consumers and market their products or services (Lina Yan & Carol Musika 2018).
When organizations began to understand the change and identified the potential of social
media marketing, companies devised innovative ways to represent themselves and engage
with customers in the digital market (Rudloff & Frey 2010). Social media marketing increase
brand recognition which simultaneously makes any organization easier and more accessible
for new customers, and makes more familiar and recognizable for existing customers
(DeMers 2014). Moreover, web sites and social media platforms enable companies to

overcome these time and financial limitations, ability to reach out to customers in a cost-
effective manner (Nory Jones, Richard Borgman & Ebru Ulusoy 2015). In addition,
individual networking through social media promotes shared values, which has a beneficial
influence on trust. Today, with the expansion of social media, companies are likely to
develop marketing strategies in businesses through trust-building mechanisms and affecting
customers' intention to buy online products (Hajli, M. N. 2014).
Although social media marketing help companies in business growth and performance
rapidly, most of the social media companies lack the resources of their larger, more
established competitors, it is difficult for them to thrive and remain sustainable. In order to
maintain their position in the marketplace and increase market share, social media companies
must have a marketing plan to manage the sales strategy of the organization. Since social
media marketing has become such a fresh concept in marketing, it could be difficult for
firms, especially new and small enterprises. Hence, this study aims to discover the
relationship between social media marketing on business growth as well as the performance
(Edubirdie, 2022).
Social media has evolved into the most prominent and important virtual space,
where the platform is utilized not only for social networking but also as a powerful tool for
digitally marketing your business and products. With over 59 percent of the world's
population of online, marketers doesn’t lose out on the opportunity to promote on these
digital forums, where they may reach the greatest number of prospective consumers
compared to print traditional television media marketing (Gary Henderson, 2020). So typical
with current many research on influences of social media on commercial enterprise
performance, there's a end result that withinside the new contemporary-day enterprise it’s not
possible to run a a hit commercial enterprise and compete with different enterprise
proprietors and be on top with out social media marketing.
To address the research gap, we aim to examine how social media marketing influences the
sales performance in businesses growth. Specifically, we investigate the effect of social
media marketingstrategies utilized by online businesses on their sales growth and
performance. It will also measure how often an average people spends in social media and
what type social media tools are they using to promote their products and services.
Nowadays, practically everyone in the society has easy access to the internet and social

media platforms. As a result, social media affects people's perceptions across the globe.
Before the arrival of social media, businesses sold door to door, but currently almost every
business uses social media to increase sales and maximize profits. Due to social media
marketing, people currently have many brand alternatives.Hence, social media has a higher
influence on business growth and performance than traditional marketing tools, hence this
issue is being studied.
ii. Significance
The study on impacts of social media on business growth and performance is important
as social media channels have quickly become the backbone of business strategies and
are key to building meaningful connections with consumers to drive long-term brand
loyalty.Early studies have proven the important effects of social media on business
performance and how it changes a business revenue and how it have impacts on
business marketing. Therefore, our study aims to add more better clarity to this research
by collecting data from a different area related to the research. to understand how social
media will affect businesses, so those who are starting a business understand the
importance of social media on business performance at this era. This knowledge can help
a lot of business owners to do better marketing performance with saving a lot of times
and additional costs by the help of social media marketing.
Since covid-19 pandemic, a lot of changes happened to all business industries and had
fundamentally disrupted entrepreneurial finance. Therefore, most business owners adopted
social media usage for performing business virtually. Social media become very popular in
business marketing although, there are no sufficient studies related to the topic unfortunately
many people have to struggle a lot because of no sufficient resources or lack of knowledge
about social media. Many business owners do not have enough ideas for bringing positive
impacts of marketing on their business through social media usage. Hence, Our study helps
business owners to use better strategies only from the source of social media to have a
profitable business performance.

iii. Purpose Statement
This research aims to investigate the impacts of social media marketing on business
growth and performance.
iv. Research Question
For the better understanding this research aim to answer these two main questions
1. What are the level of social media usage in marketing in this era?
2. How does social media marketing affect the business growth and performance?
Literature Review
Social Media adoption and usage in business
Social media has become a necessity for business nowadays for better performance.
Nowadays mostly all businesses use from social media marketing as its very affordable,
companies may acquire high-quality brand awareness on social media even if they have a
minimal budget. Also, by adoption of social media marketing you may directly contact your
target demographic by purchasing advertising on placement sites like Facebook or Instagram.
You may even target your adverts to certain categories like gender, age, pay, and area.
A study conducted by He et al. (2017), concluded that while more and more small businesses
have jumped on the bandwagon of social media in recent years, the authors found that only a
limited number of published articles are currently available regarding the decision-making
factors for social media adoption by small businesses. By an exploratory investigation of
social media adoption by small businesses revealed some novel insights and developed a
decision support model composed of factors critical to successful social media adoption by
small businesses. The purpose of the study was to understand why and how small non-
manufacturing businesses adopt social media, and for what business purposes. The
researchers interviewed 27 owners or managers of locally- owned small businesses each in-
depth semi-structured interview lasted up to 45 minutes. The study retrieved five main
adoption factors of social media marketing by business owners including the adopter’s social

media perception, the adopter’s personal characteristics, social influence from peers and/or
media, current business performance, and the business purposes for adoption affect their
adoption decisions.
Another study conducted by Nawi et al. (2017), stated that while it is perceived that adoption
reflects acceptance the individual usage is critical and cannot be guaranteed by mere
adoption. So the purpose of this study was to argue that individual usage is critical and cannot
be guaranteed by mere adoption. A total of 300 respondents from all of the public universities
were recruited in this study. An online questionnaire was given to investigate the Acceptance
and usage of social media as a platform among student entrepreneurs. The findings from the
study reveal that performance expectancy (PE) has a positive and significant effect on the
adoption of social media as a business platform among student entrepreneurs in Malaysia.
Also Perceived risk, Perceived trust and perceived enjoyment are proven to have a positive
and significant effect on the adoption of social media as a business platform among student
entrepreneurs in Malaysia.
Therefore, to conclude, the 2 journal articles both provide main factors that why business
owners adopt social media as a marketing tools. Additionally, these findings all express the
positive impacts and factors of social media marketing adoption toward business
performances. Otherwise, in the first study it found that sometime business owners adopt
social media because of social influence from peers and/or media but in second study it found
that performance expectancy which mostly an individual believes that using a system will
help him or her to attain gains in business performance has a positive and significant effect on
the adoption of social media as a business platform.
Challenges of social media marketing
As much as social media can bring a positive impact on businesses performance it is also has
some challenges that mostly people have to understand those challenges and overcome
against that. Many business owners have lack of enough technologically knowledge against
social media marketing. Thus, the main challenges of social media marketing could be lack of
information, time or even in some place’s government create some restriction for usage of
social media.