This study examined the effect of positioning on the financial performance of tour firms in the Kabale, Uganda, focusing on value proposition, target audience and content strategy. A cross-sectional quantitative research design was employed, targeting 140 registered tour firms. Stratified random sampling produced a sample of 120 respondents drawn from tour, marketing, and finance managers. Primary data were collected using structured questionnaires designed on a 5-point Likert scale. Instrument validity was ensured through expert review, pilot testing, and content validation, while reliability was confirmed with Cronbach’s alpha values above 0.85. Ethical procedures, including informed consent and confidentiality, were observed. Data were analyzed using SPSS version 27, with descriptive statistics summarizing trends and simple linear regression testing hypotheses at a 5% significance level. Findings revealed that community engagement, such as timely information sharing and feedback, significantly predicted financial performance (R² = .126, p < .001). Market positioning emerged as the strongest predictor, accounting for 27% of the variance (R² = .270, p < .001), with firms using targeted messaging and audience segmentation to enhance competitiveness. Overall, the results demonstrate that social media marketing is a key driver of profitability, revenue growth, and return on investment among tourism enterprises. The study concludes that tour firms can leverage social media as a cost-effective and interactive tool to strengthen customer relationships and improve financial outcomes. It recommends greater use of user-generated content, adoption of advanced analytics, and diversification of strategies across platforms to maximize returns.
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