DIGITAL MARKETING AS A KEY DRIVER OF SALES IMPROVEMENT AMONG SMALL AND MEDIUM SCALE ENTERPRISES
Abstract
The study explored digital marketing as a key driver of sales growth for SMEs in Lagos State. This study briefly examined the effect of digital marketing on increasing sales. 150 small and medium enterprises (SMEs) were specially selected in the Lagos metropolis.
The study generated data from respondents using primary data on the conduct of the questionnaire. Data were analyzed using descriptive statistical analysis and Pearson’s correlation analysis. The results showed a positive and significant association between online advertising and increased sales (r=0.772; p<0.05). There is also a positive and significant relationship between email marketing and increased sales (r=0.896; p<0.05). Additionally, there is a positive and significant relationship between blog marketing and increased sales (r=0.772; p<0.05). Finally, there is a positive and significant relationship between search engine marketing and increased sales (r=0.896; p<0.05).
The research suggests that all small businesses should adopt digital marketing to ensure increased sales. This goes a long way in minimizing costs and ensuring ongoing business effectiveness.
chapter One
Foreword
1.1 Research background
Whether large or small, simple or complex, private or public, companies are set up to offer competitive pricing. Businesses in Nigeria are categorized into SMEs and Large Enterprises. However, small industries can be accounted for using the criteria of project cost, capital, number of employees, turnover, annual turnover, and financial strength. Federal and state economic ministries adopt established fixed asset value criteria for judging small businesses. The investment capital has changed from just N60,000 in 1972. In 1975 he earned N159,000. N250,000 in 1979. In 1986 he was N500,000, in 1992 he was N2,000,000, and in 2003 he was N5,000,000. Due to this fact, it may be necessary to classify small industries into micro and ultra-micro enterprises and provide appropriate incentives and protections to the former. In the meantime, any business or company that falls below the N250,000 cap and exceeds the cottage industry turnover whose annual turnover is currently rated at N5,000 per year is a small industry. The National Employment Department (NDE) concept for small businesses is set at a maximum of N35,000.
Small and medium-sized enterprises (SMEs) are independent companies with less than a certain number of employees and no subsidiaries. This number varies by country. The most common limit for designating an SME is 250 employees as in the European Union. However, some countries limit the number of he employees to 200, while others consider companies with less than 500 he employees to be SMEs. SMEs generally have less than 50 employees, while small businesses have 10 or even 5 employees at most. Financial assets are also used to define small businesses. A new definition came into force in the European Union on January 1, 2007. This applies to all community acts and assistance programs, as well as areas of national assistance where SMEs can receive higher intensity national and local assistance. from big companies. The new definition raises financial limits.
Turnover for medium-sized companies (50-249 employees) he should not exceed 50 million euros. Small businesses (10-49 employees) should not have a budget of more than €10 million and small businesses (less than 10 employees) should not have a budget of more than €2 million. Alternatively, the balance sheets of SMEs and micro-enterprises are
The advent of modern information and communication technology (ICT) has had a tremendous impact on marketing and other professional practices in recent years. Modern ICT requires a paradigm shift from analog or primitive transaction types to systems where virtually all marketing activities are conducted electronically. Digital marketing is most often misunderstood as e-commerce or e-business. Digital marketing means getting closer to your customers, understanding them better, adding value to your products, expanding distribution channels, and increasing sales through digital media channels. E-commerce, on the other hand, is primarily about the opportunity to sell or trade online. However, e-business refers to the process of using digital technology to enable companies to know what their customers want and produce only those products. This eliminates the guesswork and avoids wasting unsold inventory to improve productivity, profits and growth. (Slywotzky and Morrison, 2008). Also known as digital business.
Cunningham (2010) states that e-business through digital marketing is the glue that communicates and informs employees, customers and partners. This includes the use of self-service applications that provide relevant information to those who need it, resulting in tremendous value to the business his transaction. The development of online transactional tools with more stages than traditional transactional systems has had a significant impact on the procurement and sales lifecycle (Cunningham, 2010). This indicates that both digital marketing and e-commerce are subfields of e-business. So e-business is the umbrella that her two are hiding under. Email marketing is one of the easiest, most effective and affordable ways to grow your business. This is because customers and prospects keep coming back in terms of demand for more products and feedback on products they have already purchased. can make you more satisfied. Build strong relationships by staying in touch with your customers and prospects on a regular basis with engaging and professional email communications. Email has historically been the most personal advertising medium of all other forms of digital marketing (Babalola & Babalola, 2013). 1.2 Problem definition
Small and medium-sized enterprises (SMEs) in Nigeria are less prosperous and therefore do not play the important and vibrant role expected in Nigeria’s economic growth and development. This situation is of great concern to governments, citizens, businesses, medical practitioners and organized private sector groups. Each year federal, state and even local governments, through budget allocations, policies and declarations, express concern and recognition of the important role of the small business subsector of the economy, thus stimulating it We have taken steps to As much as everyone was deeply concerned with promoting the well-being of SMEs, there was also great concern that key subsectors were not meeting expectations. Compared to what other developing and developed countries have been able to achieve with SMEs, the situation is even more alarming and alarming (Basil, 2011).
However, good marketing skills are required in Nigeria as all issues extend beyond the SME subsector. This is because the world has become a global village. The advent of the Internet, especially his Web 2.0 and social networks, is challenging the power and influence of agents building brand images. With the prodigious power of getting these messages out on the web, customer opinions, recommendations, and complaints are increasingly becoming determinants of brand image building. As a result, the mark is clearly two-way. Decisions are not only made based on the messages companies send to their customers, but technology is making it easier for people to have conversations. In this way, we see a transfer of power from companies to consumers. Therefore, a consumer’s final purchase decision is based primarily on recommendations from others who have already purchased or used the product or service in question and who have shared their buying and consuming experiences online. This phenomenon is growing at an alarming rate, with sites like Tripadvisor and Ciao becoming key pre-sale references for many consumers. In this environment, skillful management of the brand experience appears to be one of the key ingredients of brand success. Only satisfied customers provide positive recommendations in these virtual environments. This positively influences the purchasing decisions of customers who refer to these platforms.
At the same time, another key success factor in this mobile environment is developing effective strategies for influencing and communicating in Web 2.0 and social networks. Unfortunately, many companies still seem to be in denial about this and are not pursuing an aggressive internet presence strategy. Some have invested part of their communications investment in the internet, but they don’t have a general idea of what media can offer or that a web presence should be integrated with other brand communications. Too many companies are still trying to control the conversation about their brands on public networks, and few are getting involved. 1.3 Purpose of the survey
The main objective of this study is to investigate digital marketing as a key driver of sales growth among small and medium enterprises (SMEs) in the Lagos metropolitan area.
The sub-goals of this research are:
Examine the relationship between forms of digital marketing (email, search engines, online advertising, blogs) and increased sales for SMEs in the Lagos metropolitan area.
Examine the impact of implementing digital marketing on the performance of Lagos SMEs.
1.4 Research question
The purpose of this study is to provide meaningful answers to the following research questions:
1.5 Research hypothesis
According to the research objectives, his four hypotheses were formulated as follows:
H0:
Online advertising has not had a significant impact on the sales growth of SMEs in the Lagos metropolitan area.
H0:
Email marketing does not have a significant impact on SME sales growth in the Lagos metropolitan area.
H0:
Blog marketing has not had a significant impact on SME sales growth in the Lagos metropolitan area.
H0:
Search engine marketing has not had a significant impact on sales growth for SMEs in the Lagos metropolitan area. 1.6 Basis of research
SMEs play an important role in Lagos State’s economy in particular, and in Nigeria’s economy as a whole. Small businesses contribute to the gross domestic product of the state and also serve as a platform for minimizing the unemployment rate in the country as they allow individuals to own and create jobs.
Several studies conducted in Nigeria and the Diaspora have evaluated the determinants of performance-related sales growth. Research by Rondon (2007) and Bitton (2011) found that the most important variables were environmental factors, firm size, pricing policy, competition, firm marketing strategy, salesperson characteristics, territory/location, and customer size. was shown to be Further research by Babalola and Babalola (2013). Njau and Kargu (2014) and Agwu and Murray (2014) examined the impact of digital or electronic marketing adoption on the overall performance of SMEs. Against this background, this study was made necessary due to the sparse empirical research on the impact of digital marketing on SME sales growth, especially in the Lagos metropolitan area. It is strongly believed that this research will be used for research and policy advocacy by institutions such as micro-enterprises, SMEs, investors, business analysts, financial institutions, non-financial institutions, business stakeholders and governments. I’m here. As the Ministry of Commerce, Investment and Trade. It will also help future researchers who plan to do related research.
1.7 Research scope and limitations
The study explored digital marketing as a key driver of sales growth for SMEs with a focus on the Lagos metropolitan area. Limitations encountered during the conduct of the study included control limitations, time constraints, and financial constraints.
Control Restrictions – The researcher was restricted to conducting research in his Lagos metropolitan area on the instructions of the project leader. Time constraints – Given other academic commitments, the time allotted to researchers to conduct this study was relatively short.
Economic Constraints – Due to lack of funding, researchers were unable to study SMEs across large cities.
Despite these limitations, a robust, high-quality and insightful study was conducted.
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