The Impact and Importance of Social Media on Brand Awareness Business Performance and Growth
Verified
Added on 2023/01/11
|7
|1578
|46
AI Summary
This report assesses the importance and impact of social media on brand awareness, business performance, and growth of Small and Medium-sized enterprises.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
The Impact and Importance of Social Media on Brand Awareness Business Performance and Growth
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table ofContents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 Importance of Brand Awareness for SMEs.................................................................................3 Role of Social Media on a SME’s Brand Awareness, Performance and Growth........................4 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Thebrandisabusinessorganisation’sdesign,term,name,symboloranyother identifying feature that differentiates its own goods and products in the market from other products in the operating industries. For the growth and development in addition to an increase in their operational business performance, productivity and profitability in the consumer markets, businessorganisationsneedtocultivateahighlyreputablebrandimageamongsttheir competitors in the operating industries (Cawsey and Rowley, 2016). This report assesses the importance and impact of social media on brand awareness, business performance and growth of Small and Medium sized enterprises. MAIN BODY Importance of Brand Awareness for SMEs Brand Awareness is familiarity of consumers in the market towards the distinctive qualities or image of a business organisation and the products or services it provides to the consumers. Brand awareness of SMEs is immensely important to their operational performance, productivity and profitability in the consumer markets and to provide them with a competitive advantage against their competitors in the operational industries. This is because: Increased Sales and Profitability:High brand awareness in the consumer markets directly results in increased sales for the SME’s goods and services available in the markets as more number of people in the total population are aware of the brand’s values, products and services in the operational markets (Godey and et.al., 2016). This directly results in increased sales for the SME’s goods and services and has an immensely positive impact on its productivity and profitability in the consumer markets. Increased Market Share and Customer Base:High brand awareness of SMEs in the consumer markets increases the public interests in the SME and their goods and services which are available in the consumer markets for customers to purchase, which directly results in increased
market share and customer base for the SME, as more people want to be associated with the brand in the operational industries. Trust:High brand awareness of SMEs in the consumer markets effectively helps the SME build trust with their customers with the intention to further increase their operational productivity and profitability in the consumer markets (Seo and Park, 2018). If an SME has high brand awareness in the markets, then customers find it easier to trust the SME’s goods and services which effectively increases the SME’s productivity and profitability. Competitive Advantage:High brand awareness also helps SMEs to gain a competitive advantage against their competitors in the operational industries so that their productivity, profitability, market share and customer base can be effective increased. Easier to Diversify Operations and Enter Global Markets:High brand awareness also helps SMEstodiversifytheirexistingoperationsandenternewglobalmarketsforincreased productivity, customer share and profitability. As more consumers within the industry in which the SME operates are aware of their products and services this effectively eases the task of SMEs entering global markets and diversifying their existing operations. Increased Value of SME:Increased brand awareness of an SME in the consumer markets directly results in an increase of the SME’s total value in the operational industries as more people in the markets are aware of the business organisation and its products, services (Bilgin, 2018). This also results in increased brand equity of the SME as a separate asset and makes the entire SME more valuable in public perception. Differentiates from Competitors:High brand awareness of SME in the consumer markets effectively differentiates its produced goods and services from other alternatives and substitutes availablein the consumer markets,which isalso immense importantto increasingtheir operational productivity and profitability. Role of Social Media on a SME’s Brand Awareness, Performance and Growth As the digital age has ushered the widespread adoption of the internet by large sects of the world’s population, the number of people across the world interacting with each other on various social media platforms has also proportionally and consistently risen. This has presented
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
SMEs with a great opportunity to increase their brand awareness amongst the public by making use of various social media platforms as they have become effective ways for SMEs to promote and advertise their brand name and products to a large section of the population at little costs incurred when compared to other means of increasing brand awareness amongst the consumers in the industries. Social media platforms have grown to play a significant role towards an SME’s brand awareness because: Customer service:Social media platforms can be used by SMEs to provide effective and efficient customer service to their customers at relatively little costs incurred. Though this requires an adequately skilled customer service team, if conducted successfully, providing customer service operations through social media platforms can have an immensely positive impact on an SME’s brand awareness, as all customers who have a positive customer service experience share their experience with other customers in the community, increasing SME’s overall brand awareness and reputation in the operating industries. Engagement:Social media platforms allow for increased interactions and engagements with the customers by the SME (Dedeoğlu and et.al., 2020). This engagement and interaction of SME on social media platforms can be with existing customers, potential leads and interested future customers, effectively increasing the SME’s brand awareness and customer base in the operating industries. Social Sharing:All positive and funny interactions of an SME on social media platforms have the potential to go viral and be shared amongst thousands of customers and vice versa. If an SME is able to employ a skilled social media team, then they can significantly increase their brand awareness amongst the public in the markets at relatively low costs incurred. Promotion:Social media platforms can also be used by the SMEs to promote and advertise their goods and services to a very large section of the population at relatively low costs incurred, compared to other forms of marketing (Momany and Alshboul, 2016). This also effectively increases the brand awareness of the SME in the public. Trust:Constant interactions of the SME on social media platforms with existing and future customers assures other customers that they can trust the operations and functions of the SME’s brand and increases its brand reputation and awareness in the public.
There exists a direct relationship between a SME’s social media operations and their operational performance, productivity and profitability. If an SME is immensely active on the social media platforms, consistently engaging and interacting with new and existing customers, they can effectively increase their brand image and awareness in the consumer’s perception and increase their customer base and market share. This allows the SME to operate with increased productivity and profitability in the consumer markets as increased number of customers become aware of the SME’s brand and products, which also allows the SME to grow their operations and become more productive and profitable. CONCLUSION Based on the findings of the report, it can effectively be concluded that social media plays an immensely significant role in relation to the Small and Medium sized enterprise’s brand awareness in the public and their operational performance, productivity, profitability and future growth.
REFERENCES Books and Journals Bilgin, Y., 2018. The effect of social media marketing activities on brand awareness, brand image and brand loyalty.Business & Management Studies: An International Journal. 6(1). pp.128-148. Cawsey, T. and Rowley, J., 2016. Social media brand building strategies in B2B companies. Marketing Intelligence & Planning. Dedeoğlu, B.B. and et.al., 2020. Effect of social media sharing on destination brand awareness and destination quality.Journal of Vacation Marketing.26(1). pp.33-56. Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior.Journal of business research.69(12). pp.5833-5841. Momany, M. and Alshboul, A., 2016. SOCIAL MEDIA MARKETING: UTILIZING SOCIAL MEDIA TO ADVANCE BRAND AWARENESS AND INCREASE ONLINE SALES. International Journal of Business, Marketing, & Decision Science.9(1). Seo, E.J. and Park, J.W., 2018. A study on the effects of social media marketing activities on brand equity and customer response in the airline industry.Journal of Air Transport Management.66. pp.36-41.