IMPACT OF SOCIAL MEDIA ADVERTISING ON THE PROFITABILITY OF SMEs IN GHANA'S RETAIL INDUSTRY

ABSTRACT

The advent of social media platforms has been considered as one of the breakthroughs in e-business. Firms around the globe have capitalized on social media to market their products. This study sought to examine how social media usage has influenced the profitability of SMEs in Ghana, using SMEs in Accra as a case study. In attempt to address the study objectives, a mixmethodology research was adopted. Thus, the study collected both quantitative and qualitative data to explore the e-marketing utilizations by SMEs and its impact on profitability. The study found that a plethora of social media platforms are utilized including corporate websites, Facebook and google. This study again found that clients are likely to make decisions based on their encounter with SMEs electronic marketing activities. All platforms available on the internet have offered a two-way communication flow, which is highlighted theoretically and practically.

Consequently, this principle feature of social media has created a new landscape in supporting the socialization of information, and has forced marketers to give up the old mindset in dealing with mass media marketing. Lastly, it can be observed that respondents are convinced that consumers are actively utilising social media platforms as a tool in validating of the purchase decisions; however, consumers are deemed to be inactive in sharing their word of mouth to others with the available social media platforms.