University Dissertation: Social Media's Impact on UK Small Businesses

This dissertation examines the impact of social media on small businesses in the UK during economic downturns. It explores the role of digital marketing, specifically focusing on platforms like Facebook and Instagram, in helping small and medium-sized enterprises (SMEs) navigate challenging economic conditions. The research employs a qualitative methodology, including interviews and questionnaires, to gather data on how social media influences business performance, customer engagement, and overall marketing effectiveness. The findings highlight the significant impact of social media in maintaining business operations and profitability during economic challenges. The study also provides insights into the advantages of social media marketing, the limitations of the research, and areas for future exploration, contributing to the understanding of digital marketing's role in supporting small businesses.

University | 2020
MSC DIGITAL
MARKETING DISSERTATION FOR MARKETING AND EVENTS

Impact of social media on small businesses during economic downturn in the UK
Student ID:
September 2020
Word Count:
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DECLARATION
This is to certify that the thesis comprises only my original work. Due acknowledgement has
been made in the text to all the different materials used. The content of the dissertation is the
result of work which has been carried out since the approval of research programme. All the
ethics, procedures and guidelines have been followed while preparing the dissertation.
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ACKNOWLEDGEMENTS
I would like to extend my sincere and heartfelt obligation towards all the personage who have
helps me in this endeavour. So, first of all, I would like to thank my teacher and principle who
gave me this opportunity to perform the study.
Further, I would like to thank my guide for their valuable time and support for completion of this
project. I also extend my acknowledge with a deep sense of reverence to my parents and member
of my family who supported me morally and economically.
Last but not the least, I would like to thank my friends who directly and indirectly help me to
complete the project report.
Thanking you.
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ABSTRACT
Keywords: Social Media, Facebook and Instagram Small Business, Economic, Internet Marketing,
Traditional Marketing
Purpose: Previous research has shown the impact of social media on small/ SMEs organizations and the
impact are demonstrated through business performance, sales and contacts with customers (Chatterjee, S
and Kar, A.K., 2020). The aim of this research is to explore the impact of social media on small
businesses during economy downturn and their effects.
Methodology: A qualitative research was accomplished, and the data were collected through interviews
and online questionnaire in focus groups. The participants answered and discussed on open ended
questions about the impact of social media on the small business at the time of economic downturn in
UK. The methodology section assisted in developing understanding for the various methods being used
for the completion of research.
Findings: The results gave a clear idea that the social media has a great impact over the business at the
time of economic downturn. The major reason behind this is that the social media has a great effect on the
working of the company. During the economic downturn the business was not flourishing and this
affected the profitability of the company. But the social media assisted the company in managing the
business in proper and effective manner.
Value: Previous research has been done so far around the thin ideal values like learning of different
skills like communication, team work, effective coordination and many others.
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Contents
DECLARATION.............................................................................................................................3
ACKNOWLEDGEMENTS.............................................................................................................4
ABSTRACT.....................................................................................................................................5
CHAPTER 1 INTRODUCTION.....................................................................................................8
1.1 Overview......................................................................................................................8
1.2 Background..................................................................................................................8
1.3 What is Marketing and Digital Marketing?.................................................................9
1.4 Social Media..............................................................................................................10
1.5 Small Businesses.......................................................................................................14
1.6 Aim and Objectives...................................................................................................15
1.7 Purpose of Research..................................................................................................15
1.8 Structure of the Dissertation......................................................................................15
CHAPTER 2: LITERATURE REVIEW.......................................................................................17
2.1 Social Media Marketing............................................................................................20
2.2 Advantages of Social Media on Small Business.......................................................28
2.3 Small Businesses / Organisation................................................................................30
2.4 Measurement Economy Downturn.........................................................................42
2.5 Literature Gap............................................................................................................50
2.6 Conceptual Framework..............................................................................................51
CHAPTER 3 METHODOLOGY..................................................................................................53
3.1 Research Approach....................................................................................................53
3.2 Research Method.......................................................................................................53
3.3 Data Collection..........................................................................................................54
3.4 Questionnaire Design.................................................................................................54
3.5 Sampling Method......................................................................................................54
3.6 Data Analysis.............................................................................................................55
3.7 Ethical Concerns........................................................................................................55
CHAPTER 4 FINDINGS AND DISCUSSIONS..........................................................................56
4.1 Survey Results...........................................................................................................56
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Theme 8: Is digital marketing through social media concept is understood by you?....................62
4.2 Discussion..................................................................................................................67
4.3 Limitations.................................................................................................................71
CHAPTER 5 CONCLUSION........................................................................................................71
5.1 Implications...............................................................................................................71
5.2 Limitation for Further Research................................................................................72
5.3 Conclusion.................................................................................................................72
REFERENCES..............................................................................................................................75
Questionnaire............................................................................................................................84
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CHAPTER 1 INTRODUCTION
1.1 Overview
The current recessionary period has garnered new attention to the role of small business in generating
economic growth.
1.2 Background
The definition of economy downturn, small business category, scale of companies,
How can help social media?
In the rapidly changing business environment one issue which is faced by all the organization is to defend
the competition which is offered by other organization in the market. To overcome the same issue all the
organization generally looks to build good customer base and look to satisfy them with the product
(Mohajan, 2018). Marketing activity of the organization used to help the company in performing the same
activity for the organization. Marketing generally refers to different action taken in organization to
promote and sell product or service of the company in the market. Marketing activity generally targets the
customer of the company in market, as marketing activity looks at understanding the need of the customer
and develop product according to the need in the market. This helps the company in facing the different
challenges of competition in better way. In the recent time there is good trend of digital marketing in the
market. Digital marketing generally refers to usage of different digital technology to improve the
efficiency of marketing activity which is carried out in the organization. Digital marketing help the
company in garnering the new leads, traffic and sales of the business by reaching them with the help of
product and services.
There are many types of digital marketing platform which are used by the organization to promote the
product of the company in front of consumer. Social media platform is one of the most preferred digital
marketing platform which is used by organization, Social media marketing as name suggest is the type of
digital marketing in which different social media platform are used by the organization to contact
different customer with the help of product of the company in market. Facebook and Instagram are two
most common type of social media platform which are used in social media marketing. Marketing on
Facebook is done by creating a Facebook page which is used as a communication channel to maintain
contact with customer and attract new customer towards the organization. At the same time Instagram
marketing is done by running a campaign on Instagram platform. Campaign generally includes running an
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advertisement on the platform about the new offering of organization. Purpose behind the same is to give
idea to large number of customer about the new offering of company (Fletcher, 2017).
Social marketing platform used to help small business in setting up their name in front of big and
renounced organization in the market. Social media marketing helps the small business in performing the
different marketing activity at lower cost. Also, Social media marketing used to help the organization in
managing the image of the company in Economic Downturn as well.
Economic slowdown generally used to reduce the amount of money in market, hence social media
marketing help small business in maximizing their profit at that time as well.
1.3 What is Marketing and Digital Marketing?
Marketing is the management process responsible for identifying, anticipating and satisfying customer
requirements profitably (Chartered Institute of Marketing).
The traditional view of marketing is of a team of managers inside an organization responsible for
surveying customers, communicating the brand, managing advertising and developing campaigns.
Perhaps this rather constrained remit was true many decades ago and certainly there are still organizations
yet to recognise its full potential, but the reality is that marketing is responsible for so much more:
Understanding markets, developing market insights and being the ‘eyes and ears’ for an organization, in
terms of identifying threats and new business opportunities, tracking competition and staying on top of
changing customer expectations.
Shaping an organization’s strategy in terms of the selection of which opportunities to pursue, product
portfolios to sustain, target market decisions and competitive positioning.
Managing brands and creating compelling product value propositions intended to excite customers,
attract new ones, retain those already buying from the organization and make life awkward for
competitors.
Managing customers’ experience in order to maximize revenue, retain lucrative customers and combat
competitors’ actions.
Digital Marketing formerly referred to as e-marketing or Internet marketing is at the heart of digital
business – getting closer to customers and understanding them better, adding value to products, widening
distribution channels and boosting sales through running digital mar-keting campaigns using digital
media channels such as search marketing, social media, online advertising and affiliate marketing
(Chaffey, D and Smith, PR 2017). It also includes using the web site to facilitate customer leads, sales
and managing after-sales service. As with mainstream marketing, digital marketing is a way of thinking, a
way of putting the customer at the heart of all online activities; e.g. getting different user groups to test
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your website on different browsers in different settings on different connections (Chaffey, D and Smith,
PR 2017).
There are five principal benefits to marketers of digital marketing.
(1) Digital provides additional options for marketing communications, as internet viewing, web searches
and Google become routinized behaviour;
(2) Digital gives marketers more direct and diverse channel possibilities, with many companies
developing multi-channel strate continues gies and some new entrants trading only online;
(3) Digital enables marketers to cap requiring true greater insights into consumers with immediacy and
two-way interaction as never before, with extensive profiling of customer histories and behaviours;
(4) Digital explodes the ways in which marketers build relationships, with far more direct and frequent
interactions and the bespoke tailoring of information, deals and propositions;
(5) Digital provides access to customers 24/7 as never before has been possible, wherever they are and
whenever they want to connect.
1.4 Social Media
Social media, which has shown dramatic growth over the past few years, is especially important for small
businesses because it can be utilized to break through the clutter, and connect with customers (Block,
2011). Leibovitz (2012, p. 1) found that social media had a huge influence on consumer purchasing
decisions. It is a strategic process designed to make a business and its products and services more
attractive to buyers. Of course, this has always been the goal of modern marketing (Korhan, J. 2013). The
significant difference today is that much of this is accomplished digitally— and in order to start properly,
you must respect the vital role that search plays in the process, the social marketing process is a simple
three-step progression that begins with useful and valuable content that attracts the attention of buyers,
followed by using social media to engage them further to build relationships and earn trust, resulting in
new business that is predominantly accomplished in the real world with direct selling (Korhan, J. 2013).
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There are few definitions of social marketing by different authors.
Social media also represents a virtual arrangement that unites a countless number of people to cooperate,
share and discuss thoughts (Ellison, Steinfield, & Lampe, 2011). Recent statistics of internet users suggest
that worldwide there are more than 2.5 billion active users of social media and as of 2019, the usual day-
to-day social media usage amounted to 136 minutes worldwide, up from 90 minutes in 2012 (Statista,
2019). In view of their ability to associate individuals from various foundations with almost no forthright
costs, web-based social networking is quickly developing in notoriety over the world (Keitzmann,
Hermkens, McCarthy, & Silvestre, 2011). Recent studies have also revealed that companies have grown
their social media marketing spending and are expected to continue to increase their budget for it in the
next 5 years (Moorman, 2015). Organisations also are quickly grasping social media and are trying
different things with various ways to deal with to stay connected with their clients (Tsimonis &
Dimitriadis, 2014).
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Due to the widespread use of social media in marketing, particularly in communication strategies
(Hudson, et al., 2016), this study is undertaken to demonstrate the relationship between elements of social
media marketing and small business. Social media is converting the world. Existing literature says that
social media has changed the communication and purchasing’ way and allow people to access higher
volume of information (Agnihotri, et al., 2016; Burns, Veeck and Bush, 2017; Mcfarland and Ployhart,
2015; Obeidat, et al., 2016). Another study by Andreassen, Pallesen and Griffiths (2017) state that
organizations are using social media as primary marketing for businesses over last ten years. In fact,
social media is a significant component of 21st century business, especially in marketing activities
(Bilgin, 2018; Felix,Rauschnabel and Hinsch, 2017; Saravanakumar and Suganthalakshmi, 2012). Social
media plays a major role in consumer’ daily lives, it reflects their attitudes, preferences, experiences and
consumption habits and communication with other customers on communication channel (Bilgin, 2018).
Organisation uses the social media platform, inexpensive access, to emerge, interact, transform and
exchange between customer and brand which provides various ways of interaction and engagement
(Tuten and Solomon, 2018).
Definitionally, social media can be thought of in a few different ways. In a practical sense, it is a
collection of software-based digital technologies—usually presented as apps and websites—that provide
users with digital environments in which they can send and receive digital content or information over
some type of online social network. In this sense, we can think of social media as the major platforms and
their features, such as Facebook, Instagram, and Twitter (Appel, G. et at. 2020). We can also in practical
terms of social media as another type of digital marketing channel that marketers can use to communicate
with consumers through advertising. But we can also think of social media more broadly, seeing it less as
digital media and specific technology services, and more as digital places where people conduct
significant parts of their lives. From this perspective, it means that social media becomes less about the
specific technologies or platforms, and more about what people do in these environments (Appel, G. et at.
2020).
A huge range of websites now leverage elements of social media to engage with their audience, and some,
including a number of the highest-profile sites to emerge in recent years (the Facebooks, Instagrams and
Twitters of this world), base their entire business model around the burgeoning popularity of online
social media, user participation and user-generated content (UGC) (Ryan, D. 2017)
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