Social Media Marketing vs. Prevalent Marketing Practices Master Thesis A Study of Marketing Approaches for Micro firms in Sweden

Självständigt arbete på avancerad nivå (masterexamen) 20 poäng / 30 hp 3009, Gjuterigatan 5, P.O. Box 1026 - SE-551 11, Jönköping Background In Sweden almost 90% of businesses are micro in nature which plays a pivotal role in the economy by generating employment opportunities as well as serving a source of instilling entrepreneurial spirit and innovation. Due to their invaluable contributions to the economy, their survival through revenue generating marketing practices has become an area of much more interest than ever realized before. A common misconception prevalent is that marketing in micro businesses is just a miniature of larger enterprises. This is why earlier researchers have paid scarce treatment to marketing practices in micro businesses as evident from the scant published material on the topic, making it an intriguing area to study. Currently much hype has been created about social media applications like Facebook, Twitter, LinkedIn etc and their marketing value for small businesses. It is therefore, in this thesis we study social media and prevalent marketing practices in the context of micro business. Purpose Micro firms are often cash-strapped which limits their revenue generating ability through prevalent marketing practices which are resource intensive. In the back drop of all the hype about social media as a marketing tool we got the clue to find the right marketing approaches for these businesses regarding the choice of prevalent practices and social media as a new marketing tool. To achieve this purpose, we have formulated the following research questions.RQ1.Which of the two types of marketing is more effective in terms of targeted segment coverage and expenditures? RQ2.Which marketing approach enables micro firms to maintain better relationships with customers? RQ3.Whether or not it is the right time for micro firms in Sweden to adopt social media marketing practices? Method A qualitative approach has been used to achieve the exploratory purpose of the thesis. Overall; eight micro firms were chosen from a convenience sample, representing different regions and industries of Sweden. In the first phase, two pilot semi-structured interviews were conducted to attain a better understanding of the phenomenon under study. Later, six more semi-structured interviews were carried out from micro businesses representing different sectors in Skövde, Mariestad and Jönköping Counties. Conclusion This thesis suggests that micro businesses are mostly ma