Abstract

Digital Marketing has been trending in the sales of product for many small businesses in Buea subdivision.

Digital marketing has become the numb for selling because it is quick and it helps the businesses escape cost of production that comes in the form of direct tax fee usually collected by the local authorities or cost that may arise from rental of sales point or sales premises in market places. Thus, the study examined effect of Digital marketing on the sales of small scale businesses in Buea subdivision.

Primary data was obtained using questionnaire and the ordinary Least Square Technique (OLS) was used to analyze the data collected. The findings obtained proved that Digital Marketing help to increase the sales of small scale businesses in Buea. To this effect the study recommended that digital marketing sales should be employed by small businesses to enable them grow in size and enjoy economies of scale.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

E-marketing is on the increase among international companies with social media being the latest means of marketing company’s product. This has brought about creativity and interactive sessions marketing among members. Many marketers believe that despite the internet bubble burst a few years ago, the future is still bright for e-commerce.

The 20th century was shaped by the Industrial Revolution, and became the age of the automobile and the television. The 21st century is shaped by the Technological Revolution, and has become the age of globalization. The internet impacts all aspects of business. In this century, e-business is no longer an option for businesses – it is a necessity Nguyen & Barrett, (2006).

The internet permits businesses to communicate with consumers more quickly, powerfully and sometimes more cheaply. It has also helped marketing firms to gather consumer data, customize production and target potential customers Bush et al, (2007), CN Maina, (2017). Digital marketing, one of the marketing media, is currently in great demand by the community to support its various activities. They gradually abandon the conventional marketing model and switch to modern or digital marketing.

The benefit of digital marketing communication users are chat-based media and small-scale business must be able to capture this opportunity to develop their markets by utilizing smartphones Suharjo, Fahmi, and Hannan, (2020), Islami et al, (2020). The use of digital platforms for marketing purposes is fast growing. In 2014 interactive marketing was projected to near approximately $55 billion representing 21% of all marketing spend. It’s further estimated that in 2016 marketers are likely to spend approximately $77 billion on digital marketing.

This growth is attributed to shifting by marketers from the traditional media to the adoption of digital marketing which comprises use of e-mails, social media, search marketing and display advertising Van Boskirk, (2011). Consumers are increasingly using digital media, and with the tendency of more potential users joining the digital platform, more companies are adopting to digital marketing to reach existing and potential customers.

The major benefits of e-marketing for the firms that adopt it are: increasing exposure to global markets Laudon and Laudon, (2004), enhancing communication Chaffey, (2003), and reducing transaction costs Sandeep and Sing, (2005) due to the aggregation of buyers (customers) generated by the e-marketplace. According to Chaffey, Ellis-Chadwick, Mayer, and Johnston (2009), the performance of e-marketing pertains to financial benefits obtained from the management process responsible for identifying, anticipating and satisfying customer needs. Supported by Gilmore, Gallagher, and Henry (2007), the performance of e-marketing is substantially linked to different technologies (e.g., e-mail, databases, wireless) to fulfill existing and emerging customer needs and preferences.

E-marketing leads to standardization of products and prices as differences among competitors’ products are reduced Porter, (2001), JN NJAU, (2013). Digital technology has increased the rivalry between businesses Korkpoe & Nyarku, (2013). Digital technology has changed the communication between businesses, audiences, and several other organizations. Digital technology refers to the use of emerging technology to attain marketing objectives Chaffey & Smith, (2017). In the same manner, digital technology calls for a new set of knowledge and expertise Wymbs, (2011). In the presence of a digital environment, conventional marketing techniques cannot be easily applied by marketers.

Digital marketing is booming in conjunction with the widespread expansion of digital technology, including smartphones, intelligent products, the Internet of things, and artificial intelligence (AI) Berg, Burg, Gombović, & Puri, (2020); Jianjun et al., (2021), this has a strong effect on business performance and it is contributing to reshaping the future marketing strategy Buttle & Maklan, (2019). Smartphones provide additional benefits in form of instant access to services as compared to traditional services by the organization Algharabat, Rana, Alalwan, Baabdullah, & Gupta, (2020) which has great potential to contribute to enhancing business performance.

The emergence of digital technologies facilitates the customers to get access to services wherever and whenever by login into the webpage of the organization, background with service content, graphs Gabriel & Kolapo, (2015). The emergence of digital technologies creates a potential for organizations to reduce marketing costs in respect of conventional marketing by integrating with social media. However, it is a bit challenging for marketers in choosing the best mix of digital marketing techniques to generate brand recognition and successfully generate the desired business performance through Muhammed Nuseir and Chaleb El Refae,(2022).

Digital marketing can immensely improve on a company’s marketing leads. Raghunadan (2014) reveals that 34% of a company’s leads come from inbound marketing which is implemented through online content publishing in form of portals, podcasts, social media marketing, online campaigns and search services. Outbound marketing includes use of email marketing, RSS feeds among others.

1.2 Statement of the problem

According to Olonde Jeconia, (2017) the importance of small business enterprise in both developed and developing countries cannot be overemphasized as it provides employment in an economy. The sustainability of the small business enterprise in the economy can be achieved when they make sales and become profitable.

Making consumers aware of their products and services requires marketing and the traditional method of marketing have been seen to be beyond the reach of small business enterprise and therefore digital marketing has been seen as an alternative for the small-scale business to reach the market to provide awareness about their goods and services. However, the small-scale business needs to know the digital techniques to use, how to maximize their customer reach and also know how to measure the impact of their digital marketing.

The wide acceptance and popular usage of digital media has made it possible for anyone who is interested in to set up business of different types at any time. However, different forms and big corporate are reaping benefits of so many diverse types while small business enterprise are still lagging far behind in adaptation of this innovative technology of the present century as a result led to poor sales, low profits. It is an alarming issue that small business enterprise is held below the bottom in the competing world regarding earning profits compared with multinational companies mainly because of not employing modern techniques like digital marketing in the business activities, marketing and advertising campaigns. This study will take a look at the effect of digital marketing on the performance of small-scale business, .

1.3   Research Questions

1.3.1 Main Research Question

Does digital marketing have an effect on the performance of small-scale business?

1.3.2 Specific Research Question

This research is thus structured to answer questions to the following questions:

1. Does website marketing application have a significant and positive impact on business process in small business enterprises?
2. How does social media marketing influence the performance of small-scale business?
3. What is the effect of email marketing on the performance of small-scale business?

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