Abstract

Market penetration, especially for small firms, requires effective ways of communication for investments optimisation. For small firms communicating effectively, means also being selective on communications objectives. In this study we investigate the adoption of communication and advertising innovations in small firms, including the role of paid advertising, when using virtual social networks. We search a sample of 227 small firms in the Brazilian countryside. Main results confirm the premise of selective communication objectives, narrowing to brand communication and brand recalling. We also learn that small firms divert in objectives. Most of them pursue brand information, strengthening image and faster brand recall, when using virtual social communication. Some of them, however, remain on the traditional sales expansion and increasing revenues. The later use traditional advertising. The formers tend to innovate engaging in virtual social networks when communication objectives target at brand image, brand recall and deeper links with audience.

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