FACTORS THAT IMPACT THE EFFECTIVENESS OF SOCIAL MEDIA AS A MARKETING TOOL IN SMALL AND MEDIUM-SIZED ENTERPRISES IN SELANGOR, MALAYSIA

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in the Malaysian economy. The success of SMEs is critical for Malaysia's total economic progression, both nationally and globally. Conducting business online is one of the opportunities social media has provided entrepreneurs. SMEs often lack the means to conduct in-house marketing operations or hire a skilled marketing consultant. Social media is a massive dialogue that everyone can join. With social media, businesses have the added advantage of following statements and replying instantly. While there is much literature on social media marketing methods, there is not much information on how businesses might utilize social media to enhance profits. There is little academic research into the elements that drive social media use and its impact on SMEs in Malaysia. This research aims to develop an understanding of improving the use of social media as a marketing tool in SMEs and address its relationship to brand awareness, consumers' engagement, word-of-mouth, conversion rate, and effectiveness. For this quantitative study, data was collected using questionnaires conveyed to SMEs engaged in online marketing activities. The survey yielded 177 valid responses. The findings of this study indicate that word-of-mouth and engagement were insignificant. However, brand awareness and conversion rates were significant. This result is significant for SMEs in emerging markets as it allows them to establish their marketing presence and enhance brand equity.  Article visualizations: