CHAPTER 1

PROBLEM AND ITS BACKGROUND

This chapter includes the Introduction, statement of the problem, theoretical framework,
significance of the study, definition of terms, and scope and delimitation used.

Introduction

Marketing is all about identifying the needs of the customers and satisfying those needs

profitably with the help of the product (Mousumi, 2018). It is an essential channel in reaching the

goal of any business which is to generate sales, thus, marketing plays an important role in the

success of any business establishments. The sales (revenues earned) are dependent on the

number of products being sold by an entity. In this case, it is important for a business manager to

wisely engage in a marketing method that is efficient and effective for its business.

Profit is the driving point for almost all businesses. But in order for a business to profit, it needs

to market its goods. Marketing is a well-developed methodological science and is constantly

changing its rules according to the needs and developments taking place in and around it.( Dr. M.

Saravanakumar & Dr. T. SuganthaLakshmi)

In today’s technology driven world, social media platforms have obviously become an avenue

where sellers extend their marketing campaigns due to wider range of consumers. Many studies

have proven that using social media is indeed an effective marketing tactic for businesses

because it allows sellers to reach an expansive audience and promote its products and services

without investing a ton of money.

 Since engaging in an effective and efficient marketing strategy is crucial, it is then a good

idea, for the sellers as well as for aspiring sellers, to come up with the use of social media as an

approach in promoting their products and services to its target audience.

However, Sherman (2019) stated that having a “well-planned” marketing strategy is so

useful that you can think of it as having a road map. It will guide you in just about every business

decision that you make. Therefore, failure to recognize the important factors in performing a

marketing strategy will more likely leads to gaining and retaining fewer customers, and

suboptimal execution which means competitors will fill in the gaps of the service that your

business offers. For this reason, it is precisely in this context that the researchers aim to assess

the factors which influence the effectiveness of using social media as a marketing strategy for

businesses.

The researchers argue that there is a need to determine the factors influencing the effectiveness

of social media marketing strategy to small businesses in Alicia, Isabela because knowing and

analyzing these factors will put the researchers in the best position to offer some tips and more

effective techniques to the business community, particularly in Alicia, Isabela, with regards to

engaging in social media as a marketing approach.

Based on the researchers’ observation, some of the business owners in Alicia, Isabela are

engaging to social media marketing approach, given that they are already aware of its

effectiveness, but are not conducting studies regarding the reasons why is it effective and how to

effectively perform this marketing strategy for them to know what to sell, who are the most

inclined in the use of social media to identify target audience, when is the best time to post

products in their social media accounts etc.

 Another situation that was observed by the researchers: The sellers on social media who

were known to be selling products but suddenly stopped selling after a few months. As the

researchers asked some of them why did they stopped from selling, most of them mentioned

about “very few buyers”. Unfortunately, they decided to stop their business.

According to Pearce (2016), conducting a marketing review is essential for businesses. It

is to identify what actions are needed to be performed and what are needed to be improved so the

business will continue to grow. To establish itself in the new era, it has begun adapting the new

methods of virtues to come to terms with the new paradigms of business. One of the most

common and effective ways nowodays is through social media. Our group wishes to find out

how effective social media

Indeed, these are concrete proofs that it is important to assess the factors why social

media marketing is an effective marketing strategy to small businesses, particularly in Alicia,

Isabela, through gathering data from consumers to find out some helpful recommendations to

business managers. As already hinted, “loss of customers” and “stuck business” are

manifestations of not conducting this study.

Given the above discussion, it is evident that conducting this study is important. As we

can see, the disadvantages of not assessing the factors influencing the effectiveness of social

media marketing strategy in a certain area will lead to a serious business problem. Again, it is for

this reason that the researchers attempt to conduct this kind of study.

Statements of the Problems

This study generally aims to determine the factors influencing the effectiveness of social media

marketing strategy to small businesses in Alicia, Isabela. Specifically, this study intended to

answer the following questions:

1. What is the profile of respondents in terms of:

a. Age;
b. Sex;
c. Status (student/ employed/ unemployed);
d. Social media sites used; and
e. Frequency of using social media sites?

2. What factors contribute to the effectiveness of social media marketing strategy in Alicia,
Isabela?
3. Do these factors positively influence the effectiveness of the social media marketing
strategy of small businesses in Alicia, Isabela?

Theoretical Framework
This article brings together the different theories regarding social media, consumption, sociology
and psychology, and consumer behavior. Studies on consumer behavior and social media suggest
that fomsumerism is significantly associated with theories such as social comparison, self-
presentation, social anxiety, conspicuous consumption and brand jealousy (see e.g. Leary, 1983,
1990; Sarkar and Sreejesh, 2014; Veblen, 1994).
Theory of fomsumerism is distinguished from theories of consumption or marketing by six
characteristics: the desire to participate at the activity (emulation), the need to show or exhibit
the product (conspicuous consumption), the need to social acceptance or approval, self-
actualization, the need of integration of social media, desire to build an attractive personal and
social identity. Other theoretical approaches (e.g. self-presentation theory, expected utility
theory, belongingness theory and self-market or brand) predict that the effects of social media on
purchasing decisions enables individuals to pursue approved and non-excluded decision or to
achieve status.
Furthermore, fomsumerism is considered to shape social relations and purchase factors related to
online consumer behavior and social media marketing. Correspondingly, we adopt based on a
reciprocal interaction (fomo and consumption) of fomsumerism as the effect of fomo on
preferences for product, service or event. It may be viewed as a combination of self-esteem,
status, or socially desire to be liked consumer behavior that involves a ‘fomsumerist’ perspective
and may thus be called ‘socially concerned consumption’ These theories have been closely tied
with fomsumerism activity, such that in the face of social media preference or fear of exclusion,
fomsumers are likely to rise to action. Due to the hidden and largely unidentifiable nature (e.g.,
subconscious) of fomsumer groups, such product choices are primarily affected from many
theories regarding social media.
Furthermore, it is both meaningful and important to explore whether patterns in social media
posts and prevalence of teenagers' perceptions predict consumption behaviors. Regarding peer
fomsumer behaviors, many theories on social context suggests that the degree to which known
others act on a particular behavior influences one’s own willingness to engage in that behavior.
Regarding fomsumer behaviors, many theories on social relationship or comparison suggests that
the norms to which accepted by the group act on consumption behavior influences consumer’s
own willingness to engage in that behavior. This willingness is reflected in a covertly forced
situation by the social norms.

Significance of the Study

The study focused on explaining the factors influencing the effectiveness of social media
marketing strategy of small businesses of the residents in the municipality of Alicia, Isabela.
Moreover, the results of the study will be beneficial to the following:
Respondents. The respondents will have or will be able to come up with new ideas on how to
develop or grow their businesses by implementing the strategies. This may assist them in
increasing their sales as well as maintaining a loyal customer base.

To the local business owners. The results of the study will provide them suggestions and
recommendations that will be helpful in improving their social media marketing strategy. They
may come up with solutions that are beneficial for their business development.

Working students. The study's findings may encourage students to develop a better method of
selling a product in order to attract customers. This may encourage them to believe that they can
recommendations that will be helpful in improving their social media marketing strategy. They
may come up with solutions that are beneficial for their business development.

To ABM students. Since these students are under Accountancy, Business and Management track,
then they will surely be having a selling activity. In this case, data given in this study will
provide them information that are helpful in succeeding their activity.
Future Researchers. All the findings and information from the study will serve as a reference
material for future researchers who wish to conduct the same study related to social media
marketing for small businesses.

Scope and Delimitation

The study focuses on the Factors Influencing the Effectiveness of Social Media Marketing
Strategy of Small Businesses of random online sellers of Alicia, Isabela during this year of
pandemic January to May 2022.
The primary subjects of this research study will consist of random people residing in Alicia,
Isabela who have social media accounts. The respondents will be limited to 20 residents of the
municipality and to examine the factors that influence the effectiveness of social media for small
businesses with regard for the development of their business.
In that 20 respondents in Alicia, Isabela is more than enough to generalized the factors that
influences the marketing strategy of small businesses.

Definitions
Suboptimal - means not optimal level which it is not the best possible level. (merriam-
webster)

Marketing - is all about identifying the needs of the customers and satisfying those needs
profitably with the help of the product (Mousumi, 2018).

Marketing strategy - refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services. (investopedia)
Social media - forms of electronic communication (such as websites for social networking
and microblogging) through which users create online communities to share information,
ideas, personal messages, and other content. (merriam-webster)

Marketing approach- This Is a method of determining the value of an asset based on the
selling price of similar assets (investopedia.)
Marketing review- is a simplified assessment of your activities and how they are helping
you achieve your goals. (masterful-market)

Social media marketing - is a form of Internet marketing that utilizes social networking
websites as a marketing tool. (techtarget)

Business decision- sometimes called an operational decision, is any choice made by a

business professional that determines short-term or long-term company activities.
(techtarget)