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The Impact of Online Marketing on a Small Business The Impact of Online Marketing on a Small Business Mia Musso Graphic Communication Department College of Liberal Arts California Polytechnic State University Winter 2017 Table of Contents List of Figures……………………………………………………………...i Abstract…………………………………………………………………….ii Chapter One: Purpose of the Study………………………………………..1 Chapter Two: Literature Review…………………………………………..3 Chapter Three: Methodology……………………………………………..10 Chapter 4: Results………………………………………………………...13 Chapter 5: Conclusions…………………………………………………...28 List of References………………………………………………………...32 List of Figures Figure 1 - Gender & age range of Instagram followers…………………………4 Figure 2 - Top locations of Instagram followers………………………………...5 Figure 3 - Hours of the day Instagram followers are using the app……………..6 Figure 4 - Open and click rates of emails in six months…………………………7 Figure 5 - Highest open rate……………………………………………………..8 Figure 6 - Lowest open rate……………………………………………………...9 Figure 7 - Question 1: What is your age range?…………………………….....14 Figure 8 - Question 2: Do you have an Instagram account?…………………..15 Figure 9 - Age Ranges of respondents who do not have an Instagram………...16 Figure 10 - Question 3: If yes, how often are you on Instagram?……………...17 Figure 11 - Question 4: What is your primary email account?………………...18 Figure 12 - Question 5: How often do you check your email?………………....19 Figure 13 - How often the 21% of people without Instagram check email……..20 Figure 14 - Question 6: Following a business on social media vs. email……....21 Figure 15 - Question 6 answers from people over the age of 50……………….22 Figure 16 - Question 7: Participation in a promotion due to marketing?….…..23 Figure 17 - Question 8: Directly influenced from online marketing?…....…….24 Figure 18 - Question 9: Where did you see this promotion?……..…………….25 Figure 19 - Question 9 responses from people over the age of 50……………..26 i Abstract The goal for this project is to explore the current social media methods of a local business, Ambiance, and ultimately determine the best way to reach the most customers. Knowing that the target audience is growing with new technology trends, I’m curious to see whether or not our current marketing methods are reaching as many customers as possible. By organizing a survey focused on social media and email usage, I will be able to determine which strategy is most successful and efficient for our target market. With a large age range among our customers, specifying where customers want to see a business’s marketing can ideally benefit Ambiance and other small businesses as well. ii Chapter One Purpose of the Study Statement of the Question/Problem With social media and Internet use at an all time high, I’ve started to question the importance of marketing on various channels and the effect it has on companies. There’s no doubt that social media and the apps that make it possible for people to connect in so many different ways are continuing to grow throughout the younger generations. Companies have incorporated social media more and more into their marketing strategies to further advertise their businesses, but I’m curious to know what customers are looking for and how businesses can reach as many as possible. I want to incorporate my current job as a Marketing Manager to determine the most successful way to attract customers through online marketing. I work at Ambiance, a local boutique in downtown San Luis Obispo that is targeted towards women and sells clothing, jewelry, accessories, shoes and more. A large part of my job is sending mass emails to our customer list and I’ve noticed that the percentage of people viewing each email is very low. Given the amount of people these emails are going to, the numbers should be higher unless I find that email is no longer a competitor with other social media applications. In order to gain a better understanding of what our marketing strategies need to be, I plan to research what customers are looking for within their social media outlets or which ones they use more to find information. 1 Significance of the Project My project is targeted to local business owners and marketing managers who are looking to develop or improve their marketing strategy online. Comparing the current strategies of the company with the new approaches of this project will hopefully clarify the best and most efficient way to attract customers to the store. Although this information will be directly related to one company, other businesses will be able to use the results and conclusions to alter their method to marketing as well. Interest in the Project Over this past summer, I became the Marketing Manager for Ambiance and became familiar with the marketing expectations very quickly. The business had social media accounts before I was hired, but my position was created in order to have someone focused solely on that task. The demand for photos to post on social media networks and weekly mass emails was quite a surprise to me in the beginning. I know a lot of customers around my age spend a significant amount of time on Instagram, but I’m not sure that we are reaching all of them through our emails. I’m willing to experiment within my own job to see if different marketing strategies or changes made will increase sales and bring more customers into the store. I love the experience that I’ve gotten so far, especially since I get to incorporate design into what I do, but I believe it could be even more beneficial if I combine this experience with my project. 2 Chapter Two Literature Review The growth of new social networks in 2000, dramatically transformed the interaction between people and organizations that shared common interest in music, movies, education, friendship, etc. (Edosomwan, Kouame, Prakasan, Seymour, Watson 2011). Social media, however, is different than networking. Social media is primarily used to share information with a broad audience, while social networking is used to engage people with common interests and build relationships throughout community ( Edosomwan, et al., 2011). Finding the balance between social networks and social media would be very successful for a business within a community. Using social media is definitely a great strategy to announce information, and social networks allow followers to share that information with an even broader audience. In order to determine the kind of strategies that should be tested, I need to gather the current data from Ambiance and determine where there is room for improvement. Social media can only help grow a business “after you develop a large following and learn how to give [followers] what they really want” (Rampton, 2014). Ambiance has a very strong amount of followers on Instagram, but I want to find out if our posts are effective enough when followers are scrolling through their feed. Various articles share information on ways they believe social media can grow a small business. “Identify goals and objectives, let them know you’re human, use hashtags often, engage with 3 everyone” (Rampton, 2014). These are just a few ways Forbes believes are the best way to grow a business. One of the first things I looked at for Ambiance was their Instagram account and the statistics it fortunately provides on the profile. I was able to find information on the age and gender of our followers, their location, and the time of day our followers are on Instagram the most. All of this is helpful information for moving forward and planning our strategies for reaching followers efficiently. Figure 1 – Gender & age range of Instagram followers 4 This figure shows the age range of our followers on Instagram and that 85% of them are women, and 15% men. The top locations of our followers are all Central and Southern cities of California. Our two locations are in San Luis Obispo and Paso Robles so the majority of our followers are around this area. San Luis Obispo clearly holds the majority of our followers and a lot of the customers that range from age 18-24 come from Cal Poly. This is also important to consider given the price range of our products. The prices tend to be quite expensive, and with a large amount of young college students, this could affect the consistency of their business. Combining the usage of social media and more promotions or sales, I will hopefully be able to determine if there is a better way to attract this demographic of customers. Figure 2 – Top locations of Instagram followers 5 The last figure represents the different hours of the day that our followers are on Instagram. Since my job requires me to post on the accounts three times a day, it’s helpful to see which hours of the day would attract the most views and customers. There is a strong amount of followers on their feed between the 7am-9pm, which leaves more than 12 hours to make posts and reach as many people as possible. Figure 3 – Hours of the day Instagram followers are on the app Unfortunately I am unable to see this kind of information on the mail application that we use, but it gives me some insight on the amount of time customers spend on Instagram. Given the low number of opens from our mass emails, this could either mean that Instagram is now the best way to reach the most amount of people, or that we need to change the way our emails look or attract customers. I want to experiment with 6 separate information given in emails and Instagram posts that encourage people to come into the store to shop, and from there I can determine where the most people viewed the information. Although I don’t have access to the same specific information as I do for our Instagram, the program that we use, Mail Chimp, show results of all emails that will be helpful.
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