Social Media Marketing Mix for SMEs in Indonesia: A Decision Tree Modelling

SMEs (Small and Medium Enterprises) in Indonesia are increasing. Digital technology development has changed market dynamics and how SMEs interact with consumers. Indonesian SMEs must adopt social media marketing as a promotional or sales instrument. The capabilities of Facebook, WhatsApp, Instagram, and TikTok in social media marketing are both opportunities and challenges for SMEs to take advantage of because of the differences in the suitability of their technological characteristics with the preferences and digital behavior of SME owners. 219 Indonesian SME data were used to create a decision tree model of a social media marketing mix for SMEs with the help of Orange Datamining software. The model testing parameters, especially Area Under Curve/ AUC (0.8070-0.9192) and Classification Accuracy/ CA (0.7231-0.8615) recommend the decision tree model in this study as a reference for SMEs in Indonesia in choosing a combination of social media for promotion and sales. This study also shows that the natural characteristics of Gen X, Y, and Z reflect the preferences and digital technology behavior of each generation in choosing a combination of various social media as a technology in doing business, with the note that the combination does not reflect proportions or priorities, and needs to consider the age of the business. In particular, the impact of new social media, such as TikTok, and its technological developments on generational preferences is an opportunity for future research.