Social Media Marketing: History, Tools, and SMEs Marketing Impact

This thesis provides a comprehensive overview of social media marketing, tracing its history from the early days of the internet to the sophisticated platforms used today. It examines various social media tools and strategies, highlighting their application and impact on Small and Medium Enterprises (SMEs). The thesis discusses the advantages and disadvantages of social media marketing, comparing it to traditional marketing methods. It further explores how SMEs can effectively leverage social media for marketing, including customer engagement, brand awareness, and sales growth. The analysis includes the challenges and opportunities that social media presents to businesses, emphasizing the importance of strategic management and adaptation to evolving digital landscapes.

2.1.1 History of Social Media
According to Atanassova, Iva and Lillian Clark (2015) change in technology has begun
rapidly in 20th Century. After the invention of super computers in 1960, the engineers and the
scientists developed new ways of creating networks between the personal computers and the
outside world.
Agreeing with the fact, Chin et al. (2015) also stated that the Internet including
CompuServe was first developed in the tear 1960 that has primitive form email that were
developed during the that time. By 1970’s, the networking technology has improved a lot and the
users were allowed to communicate to the outside world through virtual newsletter.

It has found that the use of home computers promotes the use of graphics and better sound, and
therefore became the most common in businesses. The use and implications of the social media
has become sophisticated, and implied the use of IRC. It is an application that allowed
interaction of one person to another using the web in efficient manner. Six degree has been the
first site of social media, introduced in 1997. With the help of the site, users are able to upload
their profile pictures and connect with their friends across the world IRC (Internet Relay Chat)
facilitates real-time social networking. In the year 1999, firstly social’s media first blog channel
has been started which further became popular and has been still growing. After the period of
the year 2000, the use of social networking has increased which led to the ease of interaction
with the people. In the year 2003, some of the business-oriented social networking services i.e.
LinkedIn has launched. Furthermore, in the year 2004, some of the popular names or sites
emerged, such as Facebook, Harvard, Dogster, and Mixi evolved. It further led to
manyevolution, of the different sites and media channels and will continuously include re-
launches.
2.1.3.1 Social Networking Sites
Social media site is the online platform used to build social networks or relationships
with others for a particular purpose. These people share their personal interests, activities, and
other aspects. It has found that ‘Facebook’ is one of the popular social media amongst all other
sites and has large number of users of the social network, in millions. Using Facebook, several
users or people connect with their friends and other people around the world. The site does not
only facilitate the personal uses, rather Facebook is used for the marketing purposes. For an
example, the use of Facebook advertising into the marketing strategy, an individual or firm can

increase the number of likes, and drive website clicks by the customers. It provides several posts,
contests, and promotes the post of the people or firms (Tuten & Solomon, 2017).
2.1.3.2 Media Sharing Sites
Media sharing sites or websites refer to the platform that allows one to upload their photos,
videos, which can be accessed from any part of the world. Some of the examples of the media
sharing sites, include Pinterest, Youtube, Vimeo, and Flickr. These sites are easy to share, and
promote especially to the young generations, amongst all media sharing sites, ‘Instagram’. This
is widely used and most popular social media applications, and top-most platform for increasing
the engagement. The number of advertisers on the Instagram has increased over the period of
last six months. Like Facebook, the use of the Instagram is not limited to the personal purposes,
it is also used for the marketing purposes.
2.1.3.3 Blogs
The term blog generally refers to the site, which provides information, published on the wide
network, i.e. World Wide Web. Blogs contain the information in the form of diary entries.
2.1.3.4 Micro-blogs
A unique kind of blogging, and used by the people to make short and frequent posts, is
considered as an online broadcast medium. It allows the users to exchange or post the content
written in short sentences, and individual images and links of the videos. One of the most
popular media sharing site, for an example is Twitter. A text-message website has almost 1.5

million users around the world. It consists of the message as tweets, and also has the SMS
message with micro blogging service. Twitter is considered a valuable social media as it is helps
to create hashtags, for the businesses to increase their customers.
2.1.3.5 Social Bookmarking Sites
To define the social bookmarking or bookmarking sites, it refers to the site that enables
people to store and ensure effective management of the web pages. It allows them saving the
links of the websites and allows for the use in future time. One of the bookmarking sites is
Delicious, and Digg, Scoop, Reddit, and several others.
2.1.3.6 Wikis
A Wiki is a website developed on the basis of knowledge, on which the users
community changes or modifies the content and structure directly, using the web browser
(Staub & Hodel, 2016).
2.1.5 Social Media Marketing
2.1.5.1 Social Media Marketing and Traditional Marketing
Social media marketing refers to the marketing which is used to attract people, or
audience, that is it focuses on people, not the product. Therefore, the social media channels
include Facebook, Twitter, Instagram, Yahoo mail, Youtube, Skype Network and others. These

are the social media applications which are extensively used by the users or people to ensure
better connectivity with others, and fulfill their personal and marketing purposes. On the other
hand, to define the aspect of traditional marketing, it has been understood to be used by the
companies over a period of time. It includes any type of promotion, or advertising campaign,
which led to the success of their business operations. Methods of traditional marketing consist of
billboards, print ads, flyers, pamphlets, TV, newspaper, radio and others.
2.1.5.2 Marketing Channels of Social Media
2.1.5.2.1 Facebook
In accordance to the perspective of Dutot, Vincent and François Bergeron (2016) an
important tool of social media has been recognized, i.e. Facebook for various personal and
commercial purpose, to reach people.
Worldwide, there are 2.38 billion active users of social site, Facebook, and this continues
to increase day by day. Therefore, it acts as the reason, it is one of the giant platform of the
social media with the people around the globe.
The users of Facebook, in their different ages are observed with a large demographics,
i.e. between the age of 25 and 34 (Messing & Westwood, 2014). The social media serves to be
a great medium to be connected with the people in large from different places or regions. Many
unique aspects have been found in context to the social media site, Facebook. It is one of the

benefits for the businesses and entrepreneurs, because this platform provides with the effective
digital ads or promotion of the company. The ads include in Facebook, the target audience is
targeted by the company for which products and the service they are expecting.
The viewpoint of Felzensztein et al. (2015) another factor, which lead to an increased use
of the social media, as it provides with the source to conduct business or do commercial
activities. Here, the user gets support from using Facebook, for making purchase of any product
or service from the brands or manufacturers.
2.1.5.3.1 Advantages of Social Media Marketing
To state the benefits or advantages of the social media marketing, it has been found that
it facilitates customers to increase interaction with the people for their purpose. Marketing using
the social networking sites helps in enhancing the product awareness of the brand, increases the
customer satisfaction and loyalty, and increases the optimization of the Search engines. Thus, it
helps managers or businesses to engage with the people and establish healthy connections to
carry put their work (Rutsaert et al., 2014).
2.1.5.3.2 Disadvantages of Social Media Marketing
The disadvantages of relying on to the social media marketing for carrying out business or
marketing activities, it can sometimes hamper the attainment of purpose. Slow internet
connection is one major disadvantage in context to the use of social media marketing. The uses
of social media marketing channels also become expensive at times, for the marketing of the

activities. Therefore, it has been discovered that marketing through the use of social media is
not found uniform, as it requires different outlook depending on the environment or business
setting.
2.1.6 Role and Importance of Social Media as a New Marketing Tool
2.1.6.1 The Use of Social Media by SMEs as New Marketing Tool
Lee et al. (2016) have explained as a conceptual model for the web application and has
also analyzed the usage of the social media platforms. The analysis by the author states that
almost 50 SMEs from the survey use the platform of social media as their marketing strategies.
According to the author, these strategies have helped the SMEs to increase their sales rate with
an improvement in their performance. Margaretha and Nina (2016) stated that the business value
of the social media included in SMEs is included in the engagement of customers. According to
the study conducted by the researcher, five organizations that were examined, only the largest
company has an advantage from the use of social media. Arguing with the fact Ngugi (2014)
stated that SMEs couldn’t afford to have a collaborative portal.
2.1.6.2 Benefits of Social Media marketing for SMEs

Social media is changing the traditional methods of presence. According to Ngugi (2014)
the techniques of traditional marketing are used for printing as well as using electronic media
along with internet marketing. This might also use the lead generation for driving the traffic to
the business and to their websites. With the evolvement of algorithms of search engines, the
owners of the websites should take care of updating the websites very often and provide relevant
information about the products they are searching.
Social media allows businesses to obtain ideas and information from various sources Ponelis
(2015) before launching a brand-new product or service, there should be some ideas about the
thinking of people. By the engagement with the customers and the prospect through social
media, one can ask fans and the followers the type of product they prefer and the colors of the
products. The customer can even customize their products on their own with the involvement of
social media. This helps in making the business real.
2.1.6.3 Effective Management of Social Media as New Marketing Tool
As stated by Seethamraju (2015) the concept of social media has caused a very important
change in implementing the strategies of social media and the tools involved in the companies.
The strategies that are used in a company are used for communication with all customers.
Simula, AarneTöllmen, and HeikkiKarjaluoto (2015) have argued with the fact that the tools and
techniques used in social media marketing are important. He stated that in social media, the
characteristics of the tools of traditional Marketing Communication are combined with a

magnified form of interaction with customers. The managers of marketing cannot control the
content of information (Öztamur & Karakadılar, 2014).
A limited number of companies are found which have the control over the data or content
and the use of information by the users. The companies should effectively monitor and respond
to the issues that define the disadvantages of the brand. The aspect of control over the use of
content and used to promote and enhance the communication in the business. Thus, social media
networks are crucial to the SMEs to explore the possible challenges and opportunities in their
organization. Besides, social media marketing and the other relevant channels will also help the
businesses to ensure their survival in tough times, and expand their business goals (Tiago &
Veríssimo, 2014).

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