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T.C

ISTANBUL COMMERCE UNIVERSITY

SOCIAL SCIENCES INSTITUTE

DEPARTMENT OF BUSINESS ADMINISTRATION

MASTER OF BUSINESS ADMINISTRATION

THE EFFECT OF SOCIAL MEDIA IN

MARKETING ACTIVITIES OF SMEs IN

TURKEY

Master Thesis

Serhat Karatum

100039805

Advisor: Assoc. Prof. Dr. FİGEN YILDIRIM

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Acknowledgment

In three years of my master degree study, I have managed to overcome many challenges such as academic, work and living abroad experiences. In academic experiences, I was dedicated to being more successful after an average success in my major degree studies. Thanks to every professor who have contributed me to develop my knowledge on Business Administration.

At first, I would like to thank my academic advisor and my International Marketing course professor Assoc. Prof. Dr. Figen Yıldırım, who always replied my questions directly and cared to help when I had a problem. Besides, helped me to gain more interest in Marketing courses especially on global marketing. I appreciate every motivation and help you give on my both courses and on the thesis process, Thank you!

On this thesis, I have chosen the Small and Medium Enterprises and marketing subjects due to the increased interest and motivation in the subject courses. Thanks to my Entrepreneurship and Innovation course professor, Assoc. Prof. Dr. Necla Öykü İyigün and my Strategic Marketing Management course professor, Prof. Dr. Özgür Çengel for motivating me on Marketing and Entrepreneurship courses to achieve success.

I also want to thank my classmates who helped me to stay positive and determined while on my master degree studies. Especially, I thank my former colleague Doğa Gezer and my 2013 classmate from my major degree Göktuğ Bayındırlıoğlu who were with me to help on the field research when asking the surveys to the

participants.

Finally, I want to thank Istanbul Commerce University for the opportunity to live abroad for 6 months within Marketing Internship in Barcelona via Erasmus+ grant. However, these would not be done without them. My mother, my father and my only dearest sister. I can not thank them enough even I thank them until my last breath. We did it!

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ABSTRACT

This study designed to answer the questions relevant to social media in marketing activities and its effects on SME’s in Turkey. This study concerns the economy of Turkey. The emergence of social media with the technology of Web 2.0, it attracted both consumers and both entrepreneurs. Social media become a daily life activity for people, with various gadgets. They are checking Social media for what is going on or sharing their content on the network. On small or medium-sized entrepreneurs

having a lot of problems especially on the marketing side of the business. Social media gives the opportunity to interact with consumers and present the products of the business. The use of technology and social media can fill the blanks in the marketing problems of SME’s.

In the analysis of the research, the survey method used for gathering data from small and medium scaled entrepreneurs. The survey for entrepreneurs which has a 12 variable scale was asked. For the analysis, the SPSS software was used.

In conclusion, the SME owners social media usage perception and the effects they have on their marketing activities or got influenced has analyzed. Also, it is found that social media has the effect the SME’s of Turkey economically, competitively and communicatively depending on the usage habits.

Keywords: SME’s,Turkey,Social Media,Social Media Marketing, Marketing Communication

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CONTENTS

ABSTRACT ... I TABLES ... İV FIGURES ... Vİ ABBREVIATIONS ... Vİİ INFORMATION ... 1

CHAPTER 1: A CONCEPTUAL FRAMEWORK OF MARKETING COMMUNICATION ... 3

1.1 Marketing Communication As A Concept ... 4

1.2 Marketing Communication Process ... 5

1.3 Traditional Marketing Communication Tools ... 7

1.4 New Media and Marketing Communication ... 9

CHAPTER 2: SOCIAL MEDIA AS MARKETING COMMUNICATION TOOL ...11

2.1 Features of Social Media and Social Media Networks ... 12

2.1.1Social Media Channels and Tools: Web 2.0... 14

2.1.2 Blogs ... 16

2.1.3 Facebook ... 18

2.1.4 Twitter ... 19

2.1.5 Instagram: Image Sharing Networks... 20

2.1.6 Location-Based Application: Foursquare & Swarm ... 21

2.1.7 Wikipedia ... 21

2.1.8 Youtube: Video Sharing Networks ... 22

2.2 Social Media Network Usage Stats Of Turkey ... 23

2.3 The Role Of Social Media On Marketing Activities ... 24

2.4 Social Media Marketing Strategies ... 25

2.5 Word of Mouth: The Digitalization of Word of Mouth Marketing ... 29

2.6 Social CRM: Blend of Social Media Networks and Customer Relationship Management………. ... 30

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CHAPTER 3: ENTREPRENEURSHIP AND SMALL AND MEDIUM

ENTERPRISES IN TURKEY ...34

3.1 Small and Medium Scaled Entrepreneurship Definition In Turkey and In European Union ………..34

3.2 The SME’s Effects On Turkish Economy and Statistics on Turkish SME’s ... 35

3.3 SME Marketing and Networking... 38

3.4 The Problems in Small and Medium Enterprises In Turkey... 39

CHAPTER 4: RESEARCH DETAILS AND RESEARCH RESULTS ...42

4.1 Aim Of The Study ... 42

4.2 Research Questions... 42

4.3 Hypotheses ... 43

4.4 The Purpose and The Method of Data Collection ... 43

4.5 Data Analysis and Interpretation ... 44

4.6 Sampling ... 44 4.7 Limitations ... 44 4.8 Findings ... 45 CONCLUSION ...57 REFERENCES ...60 APPENDIX ...66

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TABLES

Table 1: Traditional Media vs New Media Comparisation ...10 Table 2: The Classification Of Nowadays Social Media Channels (Blossom 2009:

32-37) ...16

Table 3: Word of Mouth vs Electronic Word of Mouth (Huete-Alcocer,2017)...30 Table 4: The Acquiring Maintaining, Terminating Action Depending on

Engagement Levels (Malthouse, Haenlein, Skiera, Wege & Zhang 2013) ...32

Table 5: The 2015 Data of Total Import and Total Export of Turkey (TÜİK,2016).36 Table 6: Turkish SME’s Marketing Status In A SWOT Analysis (Aytaç, Parlak &

Özdemir,2009:p.282-284) ...41

Table 7: Business Characteristics of SME Owners Involved in Research ...45 Table 8: Reliability Analysis Results of SME’s Social Media Usage Behavior Scale

...47

Table 9: Results of Item Analysis on SME’s Social Media Usage Behavior Scale ..47 Table 10: KMO and Bartlett Test Related to SME’s Social Media Usage Behavior

Scale ...48

Table 11: Initial Eigenvalues of Variances and Factor Analysis ...49 Table 12: Distribution of SME’s Social Media Usage Behaviors According to Factor

Structure ...49

Table 13: Factor of effects of social media usage in SME’s marketing activities ....50 Table 14: Mean and Standard Deviation Values of Participants in SME’s Marketing

Activities Dependent on the Effect of Using Social Media ...51

Table 15: Results of Participators Normal Distribution Test Based on Their

Influence of Using Social Media in SME’s Marketing Activities...52

Table 16: Independent Sampling T-test Results for Participants' Perceptions of

Using Social Media in SME’s Marketing Activities for Differentiation According to Doing Marketing via Social Media ...53

Table 17: Independent Sampling T-test Results for Participants' Perceptions of

Using Social Media in SME’s Marketing Activities for Differentiation According to Replying to the Customers’ Posts About a Product or Service – Brand ...54

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Table 18: One Way ANOVA Test Results for Participants' Perceptions of Using

Social Media in SME’s Marketing Activities for Differentiation According to

Number of Employees ...55

Table 19: One Way ANOVA Test Results for Participants' Perceptions of Using

Social Media in SME’s Marketing Activities for Differentiation According to The Benefit of Social Media to the Business ...55

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FIGURES

Figure 1: Steps of Effective Marketing Communications (Kotler &

Keller,2012,p.482) ... 5

Figure 2: Marketing Communication Promotion Mix (Fill&Jamieson,2006:p.1/18) 7 Figure 3: Most Active Social Media Platforms In Turkey ...23 Figure 4: Social Media Marketing – Traditional Marketing Comparisation

(Akar:2010) ...25

Figure 5: The Social CRM House(Malthouse, Haenlein, Skiera, Wege & Zhang

2013) ...31

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ABBREVIATIONS

SME: Small and Medium Enterprises

R&D: Research and Development SMM: Social Media Marketing

KOBİ: Küçük Orta Büyüklükteki İşletmeler (Small and Medium Enterprises In

Turkish)

CRM: Customer Relationship Management TÜİK: Türkiye İstatistik Kurumu

GPS: Global Positioning System RT: Retweet

RSS: Real Simple Syndication WOM: Word of Mouth

E-WOM: Electronic Word of Mouth

SPSS: Statistical Package of Social Sciences IT: Information Technology

KPI: Key Performance Indicators sd: Standard Deviation

Χ: Mean

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INFORMATION

Living in the 21st century, technology’s trend of development is rising sustainably. At divided periods of a year, various applications and adaptations are emerging depending on the emergence of various up-to-date technologies. Such as internet, Web 2.0 and Social Media. Before these technologies, the communication was just one-sided and the receiver did not have the chance to interact with to conveyor of the message. The emergence of Web 2.0 provided the people to communicatewith each other interactively.

Social media’s emergence and entrance to our lives changed the way of

communication between people. Various types of channels such as blogs, social media networks, visual content sharing or user-oriented encyclopedia. On social media users can create their own media by sharing, replying or even content creating. With this feature of social media, the receivers are not passive in the communication anymore. Thanks to Web 2.0, social media has no borders, provides to reach any user who uses the network.

Social media also integrated into marketing. In this way consumers and customers, now can take a small role in the marketing activities. Communicating with the consumers anytime and anywhere, they can interact with the brands immediately. Also, the social media have the potential to spread the message wider than any other traditional media such as advertising, printouts or newspapers. Social media is also effective for the businesses such as increasing the sales, reaching the target audience easily and effective communication with the customer, at a minimal price. Because of nearly all of the social media networks are free of charge.

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The aim of this study is to investigate the influence of social media

onmarketingactivities of SMEs in Turkey. Analyzing the results of this researchwill provide SMEs in Turkey a positive effect on both technological and commercial terms. Onthefirstchapter, the marketing communication, detailed information about marketing communication are focused on.

On thesecond chapter, the fundamentals of Social Media, channels and tools of Social Media, Word of Mouth Marketing and Social Customer Relationship

Management has been stated. Also, Social Media Marketing and its strategies have been revealed in this study. The statistics of the country of Turkey has been

mentioned according to a survey of a global Social Media infographics company.

On thethirdchapter, the definition of SME’s and SME’s mentality of Turkey, SME Marketing and the key factor of it, networking has underlined. The statistics of SME’s in Turkey also shared for reviewing the current status of SME’s in Turkey.

On the last chapter the information of research methods, research objectives, a method of data collection, the scope of research has given.

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CHAPTER 1: A CONCEPTUAL FRAMEWORK OF

MARKETING COMMUNICATION

The linear communication and interactive communication models according to Wood(2008 s.10-11), the elements of the communication:

• Communication Sides: For a communication to occur there is a need for two sides named as Sender and Receiver. The sender is the natural or legal person which is the main side of the communication who sends the message. The receiver is the side that receives, decrypts and responds to the message.

• Message: The information that the sender relay to the receiver.

• Communication Functions: Encoding – decrypting, replying to the message or returning to it with a feedback.

• Noises: The interventions to the communication caused by other communications or randomly sent messages.

• Feedback: The communication process which receiver returns to the sender by indicating that the message has successfully transmitted, received and understood. Also, the receiver can reply with another message to the sender which creates the interactivity.

The definition of American Marketing Association on Marketing: “Is the activity, set of institutions, and processing for creating, delivering, communicating and

exchanging offerings that have value for customers, clients and partners, and society at large.” According to those communication elements and the definition of

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1.1 Marketing Communication As A Concept

Marketing communication defined by American Marketing Association as

“coordinated promotional messages and related media used to communicate with a market. Marketing communications messages are delivered through one or more channels such as print, radio, television, direct mail, and personal selling.”

Both communication and marketing combined to play a crucial role in a company’s marketing mission and a key factor in the primary success of marketing campaigns. (Tolon&Zengin, 2016, p.7)

On marketing communication strategies, companies often hire advertising

professionals or agencies for advertising, a squad of direct-marketing specialists to maintain customer databases and interact with customers or potential customers by mailing or telephone. Hiring public relations firms for adjusting the corporate image in a desired shape of the company. According to Kotler, these efforts of

communication to the customers must be blended into consistent and coordinated communications programme in order to be efficient. A modern company should communicate with each proactive element of the marketing phase. Such as its intermediaries, consumers and various publics. (Kotler p.719-720)

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1.2 Marketing Communication Process

Figure 1: Steps of Effective Marketing Communications (Kotler & Keller,2012,p.482)

Identify the target audience: Segmenting the whole audience with different features used as a filter to obtain the target audience; such as demographic, psychographic, geographic and behavioral features. Not only segmenting the audience also determine that the target audience is loyal or not to the brand or using the brand products frequently or not.

Determining objectives: According to Percy (2014, p.186-188), there are four basic communication effects. Category need which is the target’s perception that a product or service must satisfy a need for it. The brand awareness which target’s ability to remember or notice the brand and link it to their need. The brand attitude which is an objective of any marketing communication plan must have. Target audience

evaluates the brand in a general framework and providing a reason for choice which is consistent with the target’s underlying purchasing motive. Brand purchase

intention is target’s instruction to themselves to response the message immediately.

Designing the communications: This element includes the responding of the

questions about the communication which bring out the desired reaction, such as that communication’s remodeling, creative strategy, the strategy of the message and the source of the message. On the strategy of the message, the marketing manager explores subjects, ideas or images linked with the brand positioning. Creative

Manage Intregated Marketing Communications Measure Results

Decide on Media Mix Establish Budget

Select Channels Design Communications

Determine Objectives Identify Target Audience

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strategy is the way of marketers how they change their messages into a specific communication. Therefore in creative strategy, the activity on communication depends on the expression of the message as well as its content. Generally, the source of the message will not be a person or a source out of business, however on some occasions famous or non-famous person. Using a popular or an attractive person is more effective rather than the non-famous person for attracting more audience into the message. (Tolon & Zengin,2016 p.10-11)

Selecting the Channels: The channels for the communication between the business and the target audience may vary into personal channels and mass channels. On their names, personal channels let two or more persons communicate on e-mail, phone or face-to-face which means including the direct-digital marketing and personal sales elements of promoting mix, mass communication channels directed to more than one person which is a group and includes advertising, public relations and sales

promotion elements of the promotion mix.

According to Kotler and Keller,(2012,p.488) personal communication is often more efficient than mass communication, however, mass communication can affect personal behaviors and attitude.

Deciding on the Marketing Communication Mix: Allocation of the marketing communication budget within the 8 major modes of marketing communication is a must for the companies. Including the choices of the channels of advertising, public relations, personal sales, word-of-mouth marketing, direct or interactive marketing and the sales promotion.(Kotler&Keller, 2012, p.490)

Managing the IMC Process: According to American Marketing Association “A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service or organization are relevant to that person over time.” This planning process designates and evaluates the strategy of communication elements in promotion mix, such as advertising, direct marketing, sales promotion and public relations. After that combines these elements in a skillful way to provide crystal clear and consistency with maximum efficiency of the integrated messages.

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1.3 Traditional Marketing Communication Tools

Communication is one of the four elements of marketing mix, also known as promotion. Companies engage with the customers about the brands and products to sell in a direct or indirect way with an intention to persuade them to buy. Building positive communication with the customer is more demanding and more critical rather than developing a successful product or putting an advantageous price on a product for both customer and business. A company does not have such a chance to let the promotion activities go. This critical procedure is usuallydone with advanced tools included in the promotion mix. This includes various activities in a blend such as: (Fill& Jamieson,2006:p.1/16-18)

Figure 2:Marketing Communication Promotion Mix (Fill&Jamieson,2006:p.1/18)

- Advertising: Every paid form of communication with the potential users of a product or service in a promotive way. Advertising used with every possible media to send its message to the target via printed publications, visual media, internet, radio, posters, sponsorships etc. Paying to place the ad provides strict control over the advertisement’s design, display time, location and media tool to send your message.

Promotion

Mix

Advertising Public Relations Direct -Digital Marketing Sales Promotion Personal Sales

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- Personal Selling: Salesperson interacts customer personally, with the ambition to make a sale and building customer relations to create brand loyalty. On the pre-purchase interaction, salesperson deliversamessage to communicate with the

customer. However a person in charge of sale can deliver different messages to many different customers, it varies individually which may affect the idea and intent of customer for purchasing the product or service.

- Public Relations: The actions of an individual or organization to build valuable relations with the public through obtaining positive publicity and establishing friendly image on the business. Like advertising, the message can be put on the desired media tool such as visual or printed media. Although there is no charge to pay for space, design or time, this does not make the message and its delivery free or specific to the conveyor. The costs included in the production of the PR material and the message is spread with a support of a third-party.

- Sales Promotion: Periodic and short-term encouragements for motivating the customer group to purchase the products or services. These encouragements are activities such as making a discount on the sale price of a product – service, giving free samples away or vouchers and coupons for a free product or service, social media contests or giveaways to the followers of the brand's social media account etc.

- Direct and Digital Marketing: Establishing a direct communication with the target individual customers and customer groups to deliver particular messages and

building a relationship with them based on mutual immediate feedbacks. A direct wayto approach aims to create one-on-one connection and partnership with every customer who had contacted directly. On the other hand, theinternet is a

communication channel that fits the definition of direct marketing which allows communicating between the business and the customer.(Fill &Jamieson,2006:p.1/16-18)

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1.4 New Media and Marketing Communication

Robert Logan defined the new media as “ digital media that are interactive, incorporate two-way communication and involving some form of computing as opposed to traditional media such as telephone, radio and TV. ”(Understanding The New Media,2010 p.4)

In another definition, Lister (Lister; et.al, 2009, New Media: a critical introduction,p:13) defines the characteristics of the new media as digital, hypertextual, interactive, networked, simulated and virtual.

In 2001, Lev Manovich defined the principles of the New Media: (p.27-45)  Numerical Representation: The new media objects whether created by

computers or transferred from analog media sources, are composed of a digital code which is numerical representations. Two key consequences can be introduced to this fact. First, An object of new media can be depicted formally. In the example, an image can be described using a

mathematicalfunction. Second, the object of new media can be reprogrammed or edited. In the example, using suitable algorithms to remove the noise from a photograph.

 Modularity: A new media object has the same modular structure as the principle called “ fractured structure of new media”. Media components which can be a graphic, diagram or sound are a combination of separate components such as pixels, characters etc. For example, a movie includes different medias such as hundreds of pictures, various sounds and texts. These components stored separately and loaded at their runtime.

 Automation: A media objects modular structure allows media’s coding numerically and its own automation.

 Variability: A new media object is not exact copies of each other. Instead of copies, it has various versions. Old media objects such as textual, visual or audio elements are totally assembled manually with a human creator. Instead

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of this on new media, versions of the objects are assembled in computer environment automatically.

 Transcoding: This principle is the computerization of the media. It transforms the media into computer data.

In traditional media, it is expected to transmit the message to the mass crowd such as thousands or millions, without aiming to reach the target audience.However, New Media offers selections to its users.The audience wants to listen, read or watch the contents which they are interested in. In traditional media such as radio-television and newspapers, it includes various contents from different subjects. In New Media such as primarily Social Media and other digital platforms, the audience can choose a blog or a post from any social media network to read, also to comment and share their opinions.

Table 1: Traditional Media vs New Media Comparisation

Traditional Media New Media

One-Way Interaction Participatory Interaction

Push-Driven Communication Multi-Way Communication (brand-to-customer, customer-to-brand,and customer-to-customer Brand-Driven and Interrupt-Driven User-Powered Interactions and User can decide Printed Publishments and Radio-TV Internet - Social Media, Blogs,Forums

As a result: A monologue to the receiver. As a result: A dialog between the users.

Source: (AwarenessNetwork, 2008, Social Media Marketing: The Right Strategy for Tough Economic Timeshttps://web.archive.org/web/20090306153534/www.awarenessnetworks.com/resources/the-right-strategy.pdf)

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CHAPTER 2: SOCIAL MEDIA AS MARKETING

COMMUNICATION TOOL

There is a general definition of social media, there are different definitions it depends on the perspectives. Kim defines social media as a platform that creates opportunities to create online communities and sharing user-created contents.(2010) Akar defines social media as tools and websites which have built on Web 2.0 technology can provide social activities, social communities, also some business partnerships even the users are in different countries.(Akar,2010: 17)

According to these definitions:

 Social media provides social communication and social groups betweena real person or legal person.

 Social media provides

 Users creating user contents to share the users own experiences or thoughts which these contents can be shared and commented on by the other users.  Without any physical communication, people have the opportunity to create a

collective community of interests or thoughts.

Social Media is a tool which is not in the old-fashioned media, such as newspaper or television. Social Media channels are counted as a new media which it emerged inthebirth of World Wide Web in the mid-90s. The new media is not only about mass publication media like televisions or radios, additionally, they are variable and can include individualized connectivity without any restriction. (CHUN 2006:p.1) (Akar, 2010)

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In conclusion, the traditional style media such as television ads, information brochures or websites are just limited because of one-sided communication. However, New Media’s contents are compatible with the Social Media channels.

It is worth mentioning that social media user mark hit near to 2.5 billion users in 2017 and in the next three years, it is expected to hit 3 billion marks at the end of 2020 globally.(Statista.com, 2017)

2.1 Features of Social Media and Social Media Networks

Functions of Social Media have caused it to form a medium. According to

Kietzmann, Hermkens, McCarthy and Silvestre (2011: p.243-248), There are seven fundamental functions of Social Media:

 Identity: The personal information of user open which is visible to other users such as age, occupation, location, gender, name-surname, profile picture etc. depict the user. Even the majority of users have privacy issues, including second or third party using their information for data mining or surveillance. On some social media networks which are not compulsory to put the real name of the user, the user can choose using their nicknames rather than using their real names.

 Conversations: Many social media networks are designed to allow conversate between users, to create multi-directional communication. Conversations can be on personal topics such as meeting each other or socializing, also on topics that affecting society such as economy, politics or environment etc. On another hand, the companies or businesses can also create a conversation with an individual user. If the conversation is well timed between the company and their target audience it can make a positive effect.

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 Sharing: The key feature which makes the media, social. The users exchange, distribute and receive the user-created contents. The sociality is about the objects which bring people together and the reasons why they meet and socialize with each other online. The connecting object can be a link, a visual content, an audio, a shared location etc. Sharing alone is an interaction in Social media, however, the shared object’s type gives the opportunity to just chat and communicate or even build personal or professional relationships with the users onasocial media platform. Such as Youtube for videos, Instagram for pictures or Foursquare for location suggestions.

 Presence: The feature that how much the users are likely to be able to reach other users in social media environments. Including the knowledge of whereabouts of the other users, in the real world or in the virtual world and whether they are hidden or available. Including the knowledge of where are the other users are, in the real world or in the virtual world and whether they are hidden or available. For instance: In the previous versions of Foursquare and now on Swarm a user can check-in on the network to inform where he/she is in the real world at the moment. So this feature gives the users on the move more connectivity with sharing where did he/she go on a virtual application.

 Relationships: The feature that two or more users to converse, share ideas, socialize, simply add as a friend for networking or follow to get informed. Sometimes the relationships can be fairly formal rather than the personal relationship on a social media network. For Instance: On LinkedIn, a social media network for professionals. The personal relationships tend to be less formal and withouta structure on social networks such as Youtube, Twitter or personal blogs. This shows there is a relationship between identity valuation a relationship valuation in social media communities.

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 Reputation: It is an indication of how much the user on a social media network including himself/herself is measuring the prestige of other users. Usually, reputation has been a matter of trust, however, different methods are used because of the information technology is not so high as to make such a high-level interpretation. For example: On Twitter followers or Facebook followers or friends. Somehow reputation not only to people, also for the shared content which is evaluated by users. In example: Youtube videos, a person is a local entertainer can share some different contents which are open to World Wide Web so it can enhance his/her popularity and can turn a local entertainer into a nationwide entertainer. This only will measure the plain popularity. If firms or users value their own and other users reputation, they should find another metric. Such as objective data; the number of views, likes, interactions or the information sent by the audience; rating system.

 Groups: The feature which users can form communities and make their own network more social by enlarging their networks inner circle with friends, family, followers or fans into self-created groups, especially in Twitter which has own user-generated lists. Groups have the same functional characteristics with the clubs in the real world. It can be public which is open to anyone, closed which is approval required to join or secret; join only by invitation.,

2.1.1 Social Media Channels and Tools: Web 2.0

The term of Web 2.0 born in a brainstorming at a conference between Tim O’Reilly and Medialive International. (O’Reilly,2005) In the first brainstorming, featured perceptions of Web 2.0 were formulated. In the Web 1.0 previous version of Web 2.0, the websites on World Wide Web were just read-only you cannot engage in any way. (Borges,2009) The Web 2.0 is an evolved version of the Web, which a static website became an interactive platform.

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While using the Web 1.0, websites were just plain static channels to send the message to a one-way communication. Those websites were read-only you cannot interact by no means. Therefore the user can only search and browse to gather the information. However, with the Web 2.0, websites started to transform

intotheplatform as a service. This platform brought interactivity to its users which can create information or contents to publish or subscribe. (Zhang, Cheung & Townsend,2009)

Web 2.0 applications categorized into five groups: (Constantinides, Fountain, 2008)

- Blogs: Weblogs are posted by individuals or companies as an online personal journal. It can be posted with Podcasts so audial and visual contents also can be shared. Examples: Refer to blogspot.com, wordpress.com, www.huffingtonpost.com

- Social Networks: Applications to build personal websites, accessible to any

applications users for exchange of personal contents or information. Examples: Refer to facebook.com, myspace.com

- Communities: Websites such users can create and share limited contents such as video, picture or user-oriented encyclopedic information to the website community. Examples: Refer to youtube.com as Video or Live Video streaming, flickr.com, instagram.com as visual content sharing, wikipedia.com asan user-oriented encyclopedia.

- Forum/bulleting boards: Sites for sharing ideas and exchanging information about the users’ interests. Example: python.org epinions.com

- Content aggregators: Applications to let users choose and customize the web content to access. These applications use Real Simple Syndication. According to Weinberg(2007): “RSS is a web format for publishing frequently updated content, such as news articles and podcasts.” So these applications which integrated with the RSS let users stay informed of latest news or activities. Example: my.yahoo.com, previously: www.google.com/ig changed into http://www.igoogleportal.com

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Table 2: The Classification Of Nowadays Social Media Channels (Blossom 2009: 32-37)

Personal Publishing Blogs and Twitter

Cooperative Publishing User-Oriented Encyclopedias such as wikipedia.org or User

Social Network Publishing Myspace,Facebook, Linkedin, Foursquare (Location Based)

Feedback and Discussions The reviews and ratings on an item in an online shopping site.

Social Labeling, Image and Video Sharing Youtube, Flickr, Instagram

Personal Markets and Marketing eBay,Craiglist,Gittigidiyor, Aliexpress

2.1.2 Blogs

Blog term is created from the name of Web Log. Blogs are created from individuals or communities such as companies or non-profit organizations about their own interests. In blogs, the user doesnot need to add any technical writings or writings which needs to be proven, contrary they can write writings that involves their own ideas with specific audience-oriented style. So it can be used as a personal newspaper or a personal public diary.(Kırcova & Enginkaya, 2015)

Due to the technical structure of the blogs, the post can be enriched by writings, images, sound files, and videos. The followers of the post can also post comments to the posts of the blog owner. There are various forms of blogs:(Alikilic & Onat, 2007)

- Personal Blogs: Created by individuals which are focused on personal interest or specific hobby. The most popular blog type amongst the beginner bloggers because usually bloggers start blogging to share their personal experiences, interests or opinions. These blogs are used for the word of mouth marketing due to personal experience and sharing ideas.

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- Thematic Blogs: Created and shared by the experts or professionals of a specific topic; such as about Marketing, Cooking, Economy, Technology etc.

- Corporate Blogs: Created for the corporates to share their news – announcements or own products to promote on the market in a more user-friendly style with the users. These type of blogs are in a scarce amount in our country, the Republic of Turkey.

If the corporate blogs are used efficiently and when controlled precisely it can:(Kırcova & Enginkaya,2015: p.47)

- Create an interactive communication along the customer reach a lesser cost burden to the budget.

- Clear out the misinformation or misunderstandings caused by product, brand or corporal issues, especially on crisis management.

- Satisfy the customer reach’s curiosity regarding the company or products/services technical information with a friendly and clear language. This customer-loyal attitude is key to keep bonded to the corporate’s brands or products.

- Get the consumer profile information about the company or its goods from the comments and feedbacks to the shared post on the blog. So the company gets the same information from these feedbacks which can be obtained from the market research that costs greatly.

- Rise up your rank throughthetop of the search engine searches. For small and medium enterprises, it is costly to make own enterprise rise to the top of the search engine search results. Somehow with a successful search engine optimization oriented blog can enhance digital world reputation of the company with lesser costs.

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2.1.3 Facebook

Facebook founded in 2004 for making the communication easier between the university students. Later on, different universities from the United States joined to this social network and it broadened by day. A membership to this network can be obtained by creating a profile by adding a name, surname and such demographic information as gender, birth date, place of residence etc. Thisinformationmakes Facebook’s user database invaluable.(Kırcova & Enginkaya, 2015)

Facebook is a social network platform which has the most worldwide active users of 2 billion 47 million in the period of August 2017 according to Statista; an online statistics portal. That makes Facebook the most popular social media network on the World Wide Web.

On Facebook, users have the opportunity to participate in the following features: (Oviedo-Garcia et.al, 2014)

Status Updates: Short public declarations in response to the question Facebook askstheuser when logging on to the network: “What’s On Your Mind?” Some people never announce any declaration; others update their status by the time.

Facebook messages: Essentially alike e-mails, except that they automatically link the message to the profile of the sender which discards the need for long introductions. On 9th of August 2011, Facebook launched Facebook Messenger.

Facebook Messenger: Works like Short Messaging System rather than e-mailing, which lets the user reach other users instantly on their smartphones. With the Messenger app, the user reaches another user wherever they are. Features such as voicemails, photo or video-sharing and video call came with the application. Also with the “Seen” notification user know is the message seen by the receivers or not.

Facebook Wall Posts: Publicly broadcast messages that not only appear on the recipient’s profile “wall” also placed into the News Feed. For messages such as congratulations, birthday wishes and other newsworthy or significant news.

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Facebook depends on relationships which are integrated with presence, identity, reputation and mainly conversations. (Kietzmann, Hermkens, McCarthy &Silvestre, 2011)

2.1.4 Twitter

Twitter is a personal publishing-social network platform which has 328 million active users worldwide. On Twitter users can posts short messages also known as tweets, which are less than or equal 140 characters. Users can follow another user to receive all messages posted by the followed user.

In this platform, there are different interactions for the posted tweets or the network users: (Kwak, Lee, Park & Moon, 2010)

- Retweeting abbreviated as RT is posting the exact tweet of another user on your own user page by quoting their username on the top of the username of the tweet owner.

- Writing @ sign before the username for addressing the user on a tweet. This will inform the user that he/she addressed in that tweet.

- Writing # sign before a word means hashtag, it identifies message on a specific topic. The hashtag sign makes users see who posted on that specific topic. For example #Happynewyear2018 for tweeting about new year celebrations.

Twitter is a communication tool integrated with microblogging. The users will follow each other with their own will in terms of common interests. To prevent unwanted followers or tweets, the user can switch their profile to private. So the user can choose who to follow oneself.(Borges, 2009:p.204)

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2.1.5 Instagram: Image Sharing Networks

Instagram is an Image – Video Sharing Social Network which founded by Mike Kreiger and Kevin Systrom both Stanford University graduates in 6th in October 2010. It provides its users to share photos or videos up to 1 minute on their profiles or share a photo or video open to other users to see for 24 hours also known as “Stories”. On November 2016, live video feature came as a new feature; the users have the opportunity to share live video streams via stories. According to

Statista.com Instagram has hit 700 million marks on the active user's social media network statistics in August 2017. It is considered to be the largest photo sharing social network in the actual world in 2017.

In the first quarter of 2015 Instagram’s 300 million monthly active users used the like button on nearly 2.5 billion photos and videos per day. This makes Instagram the undisputed winner of Engagement. Facebook has 0.72 and Twitter has 0.25 per post. So this statistic can show that only visual posts an be more attractive rather than the others, Instagram is a suitable place to introduce yourself or market your products and services.

Instagram has become a popular marketing platform for the companies because of its characteristics, emphasizing visual content trend in social media marketing.

(Stelzner,2017) Quoted in Instagram, stimulates the visual narration rather than presenting textual information to the companies. (Miles,2017)

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2.1.6 Location-Based Application: Foursquare & Swarm

Since GPS system has integrated into to the smartphones and such handheld

computers the location-based applications emerged. Location-based applications are software which they use GPS location data for its own features. These location-based applications can be used for health, security, personal life or work. Location-based applications become frequented for consumers to evaluate and control the locations to engage and exchange information with other consumers. (Yavuz &Toker,2014)

Foursquare founded in 2009 by Dennis Crowley and Naveen Selvaduri. The application has surpassed 12 billion check-ins as August 2017 and 105 million

check-unable places are added on this network. Until the October of 2014 Foursquare had 55 million of members worldwide. Foursquare had check-in system which it uses the GPS and the network allows the users to share their location. Also Foursquare added mayor feature which you can achieve it by sharing the most check-ins in a limited time. In the May of 2014, Foursquare launched Swarm for users to share check-ins, comments to the check-ins or direct messaging systems between the users.

After Swarm, the foursquare became a city guide rather than a check-in sharing platform. You can leave positive or negative feedbacks and rate a place

ontherenewed platform of Foursquare. The Swarm and Foursquare are depended on presence feature which is integrated with identity and relationships.(Kietzmann, Hermkens, McCarthy &Silvestre, 2011)

2.1.7 Wikipedia

Wikipedia is a user based encyclopedia that users can add contents with proven references. Wikipedia founded in 2001 and has 400 million of daily visits on the year of 2012,(Sevinç,2012: p.148) with its 37 million contents which are 5 million of them is in English and the other 32 million content written in different 260

languages. Also with 26 million registered its a still growing encyclopedia.(Kırcova

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In this encyclopedia, editing contents are regulated with terms and conditions which are accepted by the users before they register to the encyclopedia. As a user you need to be objective, be open-minded and able to blend knowledge gathered from the proven references and their own personal view and thoughts to make the

encyclopedia true and useful.

2.1.8 Youtube: Video Sharing Networks

Social networks which are sharing media with its own main contents are popular amongst the internet users. Such as Instagram, partially Facebook, and Youtube in video contents. Media sharing networks:(Akar,2010 p:93)

 Helped users to share media easily by its own interfaces. Previously on websites user needed to havethetechnical knowledge of coding a website, editing and uploading a small sized media.

 Added social features such as interactions with comments, likes or dislikes between the users.

 Easily integrated into websites or social media profiles, for instance, you can attach your introduction video to your website or share your social media profile.

 Costs lessbecause of its own services are free of charge or have a pricing which includes the free version.

Youtube has launched in 15th February of 2005 by 3 former Paypal employees Steve Chan, Chad Hurley and Jawed Karim. A little later Google has acquired Youtube for $1.65 billion in a mutual agreement. Youtube is a video sharing network which a user can upload a content, furthermore can interact with other users such as commenting on an another users’ video, replying to a comment or liking – disliking a video. Youtube had 1.5 billion active users in August 2017.

Youtube depends on sharing feature which integrates with conversations, groups,and reputation. (Kietzmann, Hermkens, McCarthy &Silvestre, 2011)

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2.2 Social Media Network Usage Stats Of Turkey

Turkey is a country where a population of 79 million and 815 thousand living

according to TÜİK the statistics foundation of Turkey. The digital penetration rate of the country %60 depends on the 48 millioninternet users across Turkey. In the country, the social media usage as much as internet usage, there were 48 million of social media active accounts in January 2017. The 42 million of the active social media users access from their mobile phones. Comparing to 2016, internet usage slightly rose by %4, active social media usage from computers by %14, from mobiles %17. On the basis of time spent ontheinternet, people of Turkey spend 406 minutes daily with internet on a computer. It is 46 minutes more than the combined of Mobile Internet usage with 179 minutes and Social media usage 181 minutes daily.

According to a survey of Hootsuite and Wearesocial, among the social media platforms, the most actively used is Youtube by 57% after that Facebook comes second with 56% and the third most used social media platform was Instagram with 45%. Twitter is also as popular as Instagram with 44% ofthe Turkish population.

So it shows that social media usage is ontherise and become more popular in Turkey just like rising global trend of social media usage.

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Produced by the author based on the data from We are social & Hootsuite.com (2017), “Digital In 2017: Western Asia A Study of Internet, Social Media, Mobile Use Throughout the Region” https://www.slideshare.net/wearesocialsg/digital-in-2017-western-asia

2.3 The Role Of Social Media On Marketing Activities

Social media marketing is the use of social media networks to promote and market a product or a service with a way to reach potential customers and interact with current customers. Fundamentals of social media marketing include, content sharing to market, interaction with customers to communicate and being social as much as possible to reach potential customers.

Using social media on marketing campaigns create possibilities to reach the goal of those objectives: (Tuten 2008:25-26;Neti,2011)

 Building brand awareness and enhancing brand’s reputation  Promoting and increasing product sales

 Being able to research consumer behavior  Develop ideas for new marketing strategies  Interacting with customers in a brand experience  Accomplish main marketing goals efficiently  Drive traffic to corporate websites

 Maximize cross and within-media integration  Rising in search engine rankings to be found faster

 Develops new business partnerships via connecting the business to another business

 Selling more products and services

 A significant reduction in marketing expenses

Social media marketing has clear differences from the traditional marketing. Social media marketing builds strong customer relationships. While paying attention to the audience of your messages or social networks, a strong relationship can build when responding to a message or receive feedback from the audience.

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Even the groups who are not interested in the product or service. In addition, with the efficiency of word of mouth online, leaving a pleasant impression on who interacts regularly, the individual can become an interested group.

Figure 4:Social Media Marketing – Traditional Marketing Comparisation (Akar,2010)

This feature of social media network which makes the consumer as a co-producers of a content, which easily reach a large crowd of audiences with an information a firm.

2.4 Social Media Marketing Strategies

To create a specific Social Media Marketing plan for executing SMM actions, the first step is to set goals and objectives in “SMART Approach”

(Williams,2016:p.106)

 Specific: Establish the goals on questions; to who, for what, on where at when and how to meet the goals?

 Measurable: Set the goals that are quantitative. Such as reaching a certain number of followers or get enough web traffic to market the products or services on the profile.

 Attainable: Set goals that are reachable by taking the current abilities into account. Setting unattainable goals makes the company error-prone and disappointed. For an instance, If the business profile gets an average of 500 views daily, a goal of getting 5000 followers in a month is reasonable for that business because of average 15000 monthly views.

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 Relevant: The SMM goals need to match with the main marketing or business objectives. The timing of the goal is critical no matter how crucial the goal is.

 Timely: The goal should have a reasonable deadline which has a flexible timeline can be divided into achievements. For example; a business aims to have 50000 followers in a year which is equal to 4170 followers a month. If the profile cannot manage to reach the monthly limit of 4170 follower mark, the business should make changes to the objectives before the deadline.

For who to create such strategies; first of all, identify the key audience, who are targeted for the messages to be sent. The marketer should ask the questions to own self to get the answers such as:

 Which websites or social networks the key audience visit?

 Who is the potential buyer of the product or the service?

 What people thought and saying about my business and the market?

 What kind of services my audience use?

 What sort of content to share is preferred to read bytheaudience?

After this step, determine how the business will manage the audience and

communicate them effectively. Interacting with the segmented audience make the communication efficient and the message clear, rather than targeting the whole audience.(Weinberg,2009:p.33-35)

However, rather targeting the specific group from the whole audience it is important to the business how to be presented efficiently to make the target audience know the business’ presence on social media. That is why maintaining stable and at a sufficient rate of online traffic is vital for the business’ reputation and presence.

On brand new features of different social networks there are lots of different theoric and practicaladvice on SMM strategies. In 2009 Kaplan and Haenlein advice:

 As technology develops rapidly, social media networks emerge in new and different types. Each social media channel has a different target audience.

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Choice of the right social media tool will be proofed by reaching the target audience and communicating the message to them.The business must be active continuously on the social media channels where the target audience is located.

 Depending on what is the aim, either should take advantages of a popular social media channel which includes the target audience or should establish a new social media channel that targets the common features of the target audience to make them participate. In brief example: Fuji Film USA created their own social media network in 2008, named as Zspotnow.com via a website that provides its users the opportunity to create their own social media network, Ning.com.

 Although traditional marketing methods and social media marketing seem to be different, in the eyes of the customer both are part of the business. Thus the media planning should be done in a way which social media marketing and traditional marketing integrated.

 On the channels which the business is active on social media such as Youtube channel, corporate blog or Facebook pages should be open to every employee for access. If the access is restricted to employees, visitors who visit the site will see the posted comments or messages from anonymous accounts. This can confuse them the messages may be fake or boasted. In the result, it can damage the reliability and alter the social media campaign.

In a practical way, Newlands gave recommendations on SMM are stated below:(2017)

 Use technological advancements such as chatting bots which can answer specific questions from the customer from message apps of networks or fulfill the needs of customers by being able to take orders directly from messages or comments.

 Create a personal experience for your customers to make them feel worthwhile. This action will clear the thought customerto have in the business that only sees him or her as a revenue. This will both create loyal customers and boost the sales.

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 At the right time, sharing the right content is beneficial for the business. Just adding some specific keywords for search engine optimization which puts the business a place on search engine listings, or hashtags for some social networks just like Twitter. Those actions will attract organic audiences who view the post without any paid promotion or distribution.  The main aim should be reaching the target audience not to reach as many

people as possible. Therefore, creating profiles on the channels where the target audience are, is important.

 To reach the target group in multiple channels and stand out from the other competitors who use this strategy; first, telling an inspiring story to the customer can make them feel worthwhile not only as a money source. On another hand binding, the campaigns on memorable stories shared on different social media channels. In brief example: Sharing a story on Facebook or Instagram within a unique hashtag which that can be used on Twitter to reach the target who use Twitter also. Those stories can put you in the customer’s mind or heart if it's done efficiently.

 Not only sharing the right content is important, people respond to quality and enjoyable visual contents. So characterizing the contents is a great way to enhance the brand personality and keep the users spirited.

 To make your marketing activities less costly, establishing a social media budget within right strategy will be the most efficient way to

reachthetarget audienceat the least cost.

 Use the loyal customers and own employees to promote your brand. Inform the employees about social media practices and create social media marketing guide for them. This also supports not to restrict the social media on your employees.

 Do not act like a robot and be social. If your customers see the same posts shared, again and again, they will lose interest in your brand. The

business needs to interact with their audience, such as adding humor or emotions into the posts, liking or sharing some of the post's audience shared regarding your brand.

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2.5 Word of Mouth: The Digitalization of Word of Mouth Marketing

In 1967, Arndt researched the Word of Mouth and found the earliest findings of Word of Mouth. Defining WOM as an oral and interpersonal communication about a product or service between now buyer and buyer of the product or service. In recent times, Silverman(2011:p.51) defines Word Of Mouth as: “ The exchange of

information about a product or service among people who are independent of the producer.” Which means the information does not control by the producer of a product or a service. That ability of WOM makes it more objective, more relevant and trustworthy.

The customers are too cynical and bored to listen to marketers. They mostly want to talk their inner circle or trusted experts and they have lots of different ways to fulfill these with social media. Within social media and review/rating websites, the

customer has many alternatives to choose where to gather the information about the product. (Silverman,2011:p.27) These are the suitable cases to use WOM.

With the emergence of the internet, the WOM became virtual and more widespread, named as e-WOM. Because internet and indirectly social media provide eWOM to spread across of people who may be connected by a shared interest or a need,

randomly.(Kimmel,2014) This type of communication can take place on applications using Web 2.0, such as weblogs, forums, review websites or social media networks.

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Table 3:Word of Mouth vs Electronic Word of Mouth (Huete-Alcocer,2017)

WOM eWOM

Credibility The receiver of the information has met or know the

communicator. (Positive credibility)

Reciever and communicator may be anonymous or do not know each other. (Negative credibility)

Privacy The conversation is private, interpersonal and conducted in real-time because of

communication by talking.

The information is public, written down and it can be seen anytime when it is reachable due to sharing on any social media network

Diffusion Speed Messages spread slowly. Users must meet each other physically to send the message.

Messages spread and conveyed faster between users via the internet. Also, the message can be conveyed any time because of the internet is open for 24 hours a day.

Accessibility Less Accessible(personal network)

Easily Accessible(online media)

2.6 Social CRM: Blend of Social Media Networks and Customer Relationship Management

Social CRM, the customer relationship management process enhanced with Social Media networks. However, Social CRM recognizes the customer instead of

managing which the standard CRM does. Social Media provides the communication betweenbrand and customer, customer and customer on a social media network without any boundaries. For example,Twitter simply makes a business to

communicate cautiously and openly with their followers or potential customers. If a business has a successful and assertive customer service, inviting the customers to Twitter make the business more flexible and complaisant at any moment because ofthe internet is active everytime. (Borges,2009:p.215-216)

Malthouse, Haenlein, Skiera, Wege and Zhang (2013) explained in a comprehensive shape:

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Figure 5: The Social CRM House(Malthouse, Haenlein, Skiera, Wege & Zhang 2013)

Social media makes the customer active in the CRM process such as creating content aboutabrand or just liking the page of the brand which causes engagement between the business and the customer. The number 1 of the house of CRM structure isanevaluation of the level of engagement which only liking the page counted as lower engagement and sharing content about the brand is counted as interactivity with the brand and high engagement.

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Table4:TheAcquiringMaintaining,Terminating Action Depending on Engagement Levels(Malthouse, Haenlein, Skiera, Wege & Zhang 2013)

User With Lower Level Engagement

User With Higher Level Engagement 1.1 Acquire Helps to improve targeting and

acquiring new customers, thanks to their likes or shares of the brand content.

Once a customer has highly engagedwiththecompany it makes it demanding when a certain type of acquisition promotion has given to another customer. When the demand not fulfilled, the customer may leave the company profile. This situation makes acquire and maintaining integrated into Social CRM. 1.2 Maintain The acquiring and maintaining

may rely on customer engagement however still very limited to makethecustomer participate in maintaining activities to the brand.

1.3 Terminate On company termination, separating the customer who can causeadisturbance.

On Customer termination, it may help to spot the customers who can cause disturbance or likely to leave.

May react negatively to

termination and produce negative WOM against the brand. It can end into losing some of the customers because of the negative WOM.

The roof of this structure isamixture of value fusion and content marketing strategy. Value fusion is the blend of gathering the values produced by customers or firms and putting into a good use onthemobile network. Such as for example of Uber which is a smartphone application works as a cab ordering service. It has a coordination that customers can see which cabs are available and cab drivers can see which customers need for a ride. Also, the customer has the opportunity to pay by entering credit card information on the phone. On both sides, their work was done via one application with less time wasting and more safety. (Lariviere et.al,2013)

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Content marketing strategy is creating a content which valuable for the customers to attract and maintain them after the acquiring. A company which uses content

marketing strategy aims, to sell more products or services in future by maintaining the relationship between customer while managing them by gathering their

information. On data technology, the company can use the wide-scaled, different pieces of information which gathered from the users and followers of their social media networks.

Organizing the people fostered with empowering the social media culture in the organization. Constantly developing the employee skills with CRM or IT educations and keeping them in the company with motivation. Lastly, setting up a functioning and fitting business processes that makes social media is the primary tool for CRM activities. On measuring the outcomes of the social CRM, Key Performance Indicators is used. KPI includes overall social CRM strategy, people, specific components of social CRM and data and information technology. (Malthouse, Haenlein, Skiera, Wege &Zhang 2013)

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CHAPTER 3: ENTREPRENEURSHIP AND SMALL AND

MEDIUM ENTERPRISES IN TURKEY

Entrepreneurship is a system of planning, starting and running a fresh business including eagerness to develop, organize and manage a business investment with any type of risks. According to Jean Baptiste Say, entrepreneurship shifts economic resources from low to high productivity areas with higher yields. Just as Schumpeter told in 1911, Entrepreneurship is the main vehicle to drive the economy forward from static balance, based on the combinatorial capabilities of entrepreneurial individuals. Also, Entrepreneurship is the outcome of actions of individuals that act and influenced by outside of their work or the corporal environment.

(Braunerhjelm,2010:p.7)

An entrepreneur is an individual who creates a new business called as an enterprise in the challenges of the risks or unclear consequences while aiming to gather profit and growth. While doing this identifying the threats and taking advantages of the opportunities by assembling the required resources. (Scarborough, Wilson & Zimmerer, 2012:p.4)

3.1 Small and Medium Scaled Entrepreneurship Definition In Turkey and In European Union

In 18th of 2005 with number 2005/9617 “ Regulation of Definition and Classifications of Small and Medium Scale Businesses” published in Turkish

Official Newspaper. With the regulation Small and Medium Scale Businesses named KOBI. KOBI is an enterprise which it has less than two hundred employees and its annual net sales revenue less than 25 million Turkish Liras. They have divided into three subclasses as micro, small and medium-sized.

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Microenterprises have up to 9 employees and less than 1 million Turkish Liras annual turnover or balance sheet total. Small enterprises have less than 50 employees and less than 5 million Turkish Liras annual turnover or balance sheet total. Medium-sized enterprises have less than 250 employees and less than 40 million Turkish Liras annual turnover or balance sheet total. (Resmi Gazete,2012)

In the European Union, SME definitions also vary on employees and turnover - balance sheet. Microenterprises have up to 9 employees and less than 2 million euros annual turnover or on the balance sheet. Small enterprises have less than 50

employees and less than 10 million Euros annual turnover or balance sheet.Medium-sized enterprises have up to 250 employees and less than 50 million Euros annual turnover – less than 43 million Euros balance sheet. (the European Union,2015)

3.2 The SME’s Effects On Turkish Economy and Statistics on Turkish SME’s

SME’s are by itself and small economical foundations. They may look ineffective to the economy and feeble if we look at it as units. However, SME’s are the %99,8 of the businesses in Turkey. In 2014, based on the total businesses the 73.5% of total employment in the country, 54.1% of salaries and wages, and 62% of total

employment were provided by the SME’s. Micro enterprises were the majority of Turkish SME’s with a share of %93,6 percent. Small enterprises have a share of %5,4 and Medium enterprises have %0.9 share.

The export rate against import rate in Turkey is insufficient. In the period of January-November 2016, the exports can only meet the %72,0 of the imports. Also on

January-November 2017,it reduced by 4 percent and %68,0 with exporting items worth $143 billion to importing item worth $210 billion. However, in 2015 statistics of TÜİK which shown inTable 5, SME’s exported goods 3 million 833 thousand 710 Turkish liras worth more than their imported goods. They tried to cover the gap between import and export by a small percentage of %1.8. The large and other industry than SME’s imported way too much than they export.

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According to KOSGEB, (the ministry of developing and supporting SME’s) in 2012 9 million and 517 thousand people hired by the SME’s in Turkey. In 2012 Tüik has declared on its workforce report, 23 million 338 thousand people were registered as the active workforce of the country. So %41 of the active workforce of the country were working on SME’s. So SME’s are useful for the country of Turkey.

Briefly, SME’s benefits on the economic system of Turkey: (Akgemci,2001)

 Supporting the development of regional industries and infrastructure of the region.

 Producing the goods which need special skills such as handmade products.  Becoming a helping hand to large scaled industries via secondary control.  Supports employment depending to work with intensive technology and

efficiently on resources.

 Being flexible to easily adapt the changes and variations in demand.  Developing a sub-industry for Turkish economy by producing resources or

semi-products the large scaled businesses use for their production.  Producing the same products or services which large scaled businesses

produce also. This attracts them to the competitive atmosphere to stimulate the economy.

Table5: The 2015 Data of Total Import and Total Export of Turkey (TÜİK,2016)

IMPORT EXPORT

2015

Value: Thousand Turkish Liras

Total SMEs (1-249) Total SMEs (1-249) A Products of agriculture,

forestry, and fishing

19 358 087 10 874 778 15 927 680 10 066 280 B Mining and quarrying

74 505 702 8 912 498 7 595 259 5 335 274 C Manufactured products

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D Electricity, gas, steam and air conditioning

816 450 816 274 196 760 196 760 E Water supply; sewerage,

waste management

12 464 501 1 288 183 888 719 779 640

Others 1 081 493 634 378 318 598 240 369

Total 562 196 290 211 754 932 391 421 051 215 588 642

The Turkish SME’s were active in mostly in wholesale and retailing with %39,2. It is followed by transportation and storage sector with %15,4. Production industry

follows transportation sector with %12,4. In 2015 the Turkish SME’s executed %55.1 of export and %37,7 of import of Turkey. %49 of the exports executed to European Union countries and %34,5 to Asian countries.

According to Turkish Statistics Foundation’s report about SME’s in Turkey in 2016, %93,5 of Turkish SME’s has internet access in 2016. Also, %95,9 of the SME’s in the range of the researchis using a computer. 66 out of 100 enterprises have their own corporate website. Furthermore, SME’s usage of the internet to connect with the public institutions in 2015. Lastly, %11,9 of Turkish SME’s took shopping orders via their own corporate e-commerce website or with Electronic Data Interchange in the year of 2015.(TÜİK,2016)

Şekil

Figure 1: Steps of Effective Marketing Communications (Kotler & Keller,2012,p.482)
Figure 2:Marketing Communication Promotion Mix (Fill&Jamieson,2006:p.1/18)
Table 1: Traditional Media vs New Media Comparisation
Table 2: The Classification Of Nowadays Social Media Channels (Blossom 2009: 32-37)
+7

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