Impact of Digital Marketing on Business Growth (a Study of Selected Business Enterprise in Umuahia Metropolis)
CHAPTER ONE
Research Objectives
The general objective or main objective of this study is to investigate the impact of digital marketing on business growth in Umuahia. The specific objectives are:
- To identify the impact that online marketing application has on business process in small and medium enterprises in Umuahia
- To establish the nature of the relationship between digital marketing and small and medium- sized businesses’ productivity
- To determine the effect digital marketing has on business growth in small and medium enterprises in Umuahia
- To find out the marketing strategies used by SMEs in Umuahia to make their products and services appeal to customers
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviews internet marketing and its importance, the key ways of its application as well as the challenges to its implementation. Further review is done on the performance factors for SMEs and key theories which may be applied to the study and in the understanding of internet marketing for SMEs adaption.
Internet Marketing
The growth and spread of internet at an extraordinary pace over the last few decades has resulted in its increased use for marketing. Singh (2002) noted that it has taken approximately seven (7) years to reach a 25% market share from its inception, as opposed to the telephone that took 35 years and the television which took 26 years. The effectiveness and cost-friendly nature of internet marketing has allowed a platform for SMEs globally to benefit in marketing their products and reaching a wider range of clients at a reduced cost (Ashworth, et al 2006).
Internet Marketing is the art and science of selling products and (or) services over digital networks, such as the internet and cellular phone networks (Smith et al 2005).These are the strategies that are used to market a product or service online, communicate a company’s message about itself, its products, or its services. It also entails conducting research on the nature (demographics, preferences, and needs) of existing and potential customers to enable them to sell goods, services or advertise over the internet.Burges and Bothma (2007) say that internet marketing is a business effort to inform, converse, promote and sell products and services over the internet. While Thersthol and Lövgren (2007) view online marketing as a process for reaching out to many existing and potential customers as possible using the internet. Maguire and Magrys (2007) on the other hand noted that it involves finding the right online marketing mix of strategies that appeal to your target market and will actually translate into sales. The science of online marketing is the research and analysis that goes into both choosing the online marketing strategies to use and measuring the success of those online marketing.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on impact of digital marketing on business growth. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact of digital marketing on business growth
Summary
This study was on impact of digital marketing on business growth. Four objectives were raised which included: To identify the impact that online marketing application has on business process in small and medium enterprises in Umuahia, to establish the nature of the relationship between digital marketing and small and medium- sized businesses’ productivity, to determine the effect digital marketing has on business growth in small and medium enterprises in Umuahia and to find out the marketing strategies used by SMEs in Umuahia to make their products and services appeal to customers. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from SMEs in Umuahia metropolis. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study found that the use of internet marketing allowed firms communication their products which had a positive impact on their performance. Firms were able to improve on their customer relations through the use of internet marketing as well as advertise their products and track down their sales with better ease. The firm’s visibility increased, they were able to focus on client needs as well as improve the products and services from the feedback given. Internet marketing allowed firms better communication to their stakeholders as well as ability to easily monitor and measure their results. There was a reduced turnaround time in their operations and it allowed them expand to new markets.
The study found that Internet Marketing had a positive impact on the performance of SMEs in Umuahia metropolis. The study therefore concludes that the adaptation of internet marketing leads to improved performance of SMEs.
Recommendation
The study identified benefits derived from SMEs and therefore recommends policies that favor the growth of SMEs as they impact positively on the economy. Creation of awareness is recommended to SMEs and large enterprises on the use and impact of internet marketing. The researcher recommends that support on internet marketing initiatives be given by the state government for them to reap the benefits and enhance the economy. Actions need to be done to curb the challenges in internet marketing application so as to enable as many SMEs opportunities to implement it in their operations. The study recommends that SMEs integrate internet marketing in their operations for its positive impact on their performance
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