SOCIAL MEDIA FOR MSMEs A turning point. By DR. PRALAY DEY National Small Industries Corporation (NSIC)

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1 SOCIAL MEDIA FOR MSMEs A turning point By DR. PRALAY DEY National Small Industries Corporation (NSIC)

2 IMPORTANCE OF MSMEs in India 44+ MILLIONS UNITS 45% manufacturing output MSMEs in India 40% EXPORT More than 6000 products 100+ MILLION EMPLOYMENT

3

4 ICT EMPOWERMENT LEVEL OF MSME s IN INDIA Basic Communications Fixed Lines / Mobile Phone, fax, etc. Basic Information Technology PC equipped with Basic software and Hardware (PC with proprietary and / or free open source software connected to printer e.g. Office Management Software, Payroll, A/cs, Inventory, Sales Management Software etc.) Advance Communications , Internet browsing, Video Conferencing, Intranet, File Sharing, Creating Websites, Voice over Internet Protocol. Advance Information Technology PC with advanced software such as databases Management, Enterprise Resource Planning, Inventory Management, E-Commerce Web portal, online selling, Customer Relationship, Manufacturing Technology, Mechatronics, E- procurement. GROUP-1 GROUP-2 GROUP-3 GROUP-4

5 Why have so few MSMEs adopted ICT Supply Side 1. Poor Communications infrastructure results in limited access and higher cost 2. Most advanced ICT products are designed for larger Firms and not MSMEs.

6 Why have so few MSMEs adopted ICT Demand side 1. Limited ICT literacy of SME owners hinders their ability to choose the appropriate tools 2. Lack of financing options limits SME ability to purchase ICT 3. Lack of financial and legal infrastructure.

7 Why have past Government Intervention been met with limited success ICT Policy e.g. Building Infrastructure, investing in research and development, facilitating technology transfers, creating science parks, creating legal frameworks etc. ICT Policy for MSMEs e.g. Providing tax incentives for investing in ICT, subsidizing ICT training for MSMEs, creating incentives for e-procurement, etc. SME Policy e.g. Providing SME financing and business consulting services, simplifying registration procedures, providing tax breaks, creating incubation centres, etc.

8 TURNING POINT.. Globalization of Business Change in Model of doing business Reduction in sourcing cycle Direct Buying/selling More outsourcing e-commerce Internet is playing a major role

9 Marketing remains the biggest challenge for MSMEs.

10 Conventional Marketing- Advertising, Exhibitions, Campaigns, using Print and other Media, Branding, Door-to-door Marketing etc. Online Marketing- Using Search, ,Web portal and Social Media..

11 SOCIAL MEDIA- emerged as a Marketing Tool

12 How SME s can leverage on Social media for business growth Create Community: Social media allows businesses to connect with customers interested in the products and services they offer. Using the right social media platforms and having access to the most relevant audience allows SMEs to engage with their core customers and build communities. Expanding reach: Leading social media platforms like Facebook, Google+, Twitter, and YouTube cater to worldwide audiences. By using these main platforms, SMEs have already taken their business global and extended their message.

13 Maximizing ROI on marketing and advertising: After engaging with their target audience, SMEs can use social media to promote their products and services in a more personal way. By ability to upload images, from an event or videos of product demos, for example, can bring SME offerings to life in a way that words alone cannot. Managing brand reputation and identifying opportunity: SMEs can monitor for mentions of their brands, products and services, and promptly engage in active conversations. Engaging with consumers in this way can help negate negative commentary, uncover unmet customer needs, and potentially help convert prospects into customers.

14 Understanding customer sentiment: Through the use of analytics, SMEs can track customer input on products, services and offerings. Empowered with insight into customer sentiment, SMEs can improve customer segmentation, provide targeted offers, and increase sale opportunities. Boosting website traffic: SMEs that engage in social media and link to their Web sites on their social media profiles, can expect to receive an increase in quality traffic thanks to the combination of social and algorithm-ranked content.

15 Information that can be extracted from social media analytics Traffic & Conversions from social media sites: Sme s with Analytics packages allow to filter by traffic sources, so we can see how many users come from which social media sites. SME s can also see whether or not that traffic goes on to convert - e.g. purchasing something, signing up for a newsletter etc. Fan or follower numbers: Trending topics and ROI can be extracted with increase/decrease of Fan or follower numbers.

16 Conversation participation: Conversation participation metrics can be a measure for SME s to quantify how people are interacting with its social media campaigns. These metrics will largely include things like comments or likes on a Facebook post or responding to a tweet. Social reach performance: SME s in whole can measure social performance by analyzing at whether or not people are sharing its content by re-tweeting or writing a blog post about its social media campaign.

17 NSIC in Facebook..

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