E-MARKETING AND SMALL ENTERPRISE THREATS AND OPPURTUNITES

E-MARKETING AND SMALL ENTERPRISE THREATS AND OPPURTUNITES

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

In particular, the WWW, has seen a tremendous and rapid increase in the number of small and medium-sized firms using it for business reasons during the past two decades. E-marketing has significantly changed not only the way small and medium-sized firms operate today, but it has also opened up a wealth of new business options. The majority of small and medium-sized enterprises in developing nations operate conventionally, but in recent years the trend has altered and many are now conducting business online (Travica, 2002). Regardless of their size, commercial organizations have used internet-based technical tools for a variety of business activities, such as advertising, online ordering of goods and services, and more (Ang et al., 2003). In order to gain a competitive edge in the market, organizations from the public and commercial sectors are investing substantially in digitalization. In the era of the internet, creating a successful e-marketing strategy has become a significant challenge; despite its advantages, there are also threats; studies have shown that the rate of e-marketing acceptance is gradual among companies around the world (Mukti, 2002). Lack of funding, lack of government support, and management’s lack of IT expertise are the key factors preventing the expansion of e-marketing (Bakry and Bakry, 2001). Nigeria lacks much of the literature on this novel technology, however Ghana, India, Iran, and Mauritius have all done some research in this area (Sharma and Gupta, 2003).

Seyal (2004) had previously done e-marketing research, but they were restricted to large and industrial businesses exclusively. Unfortunately, there is very little knowledge regarding the challenges and prospects of e-marketing in Nigeria. Nigeria is moving toward a digital government. In contrast to other regional nations like Asia, where 50% of the population is online, e-marketing is a new notion to the Nigerian psyche and market (Singh et-al., 2001). Notwithstanding these figures, it is anticipated that the global internet population will rise significantly in the next years; however, this expansion will occur mostly in industrialized nations Less than 2% of the $70 trillion global economy, however, is based online. According to Hayden (2015), the amount might reach or exceed $110 trillion by 2017; similarly, 90% of American businesses engage in internet marketing, commerce, and sales (Bingi et-al., 2000). This reflects a huge change in e-scope, marketing’s as well as its scale and magnitude. Political and geographic borders will have less of an impact on business time zones and capital mobility as IT is reducing borders and extending markets. Experts appear to concur that successful e-marketing in the digital economy will use a more collaborative approach business approach rather than an outdated mentality; and those who have both physical stores and websites (often known as “clicks and bricks”) are likely to succeed in online marketing (McKinsey 2001). In Nigeria, small and medium-sized enterprises are crucial to the growth of the nation’s economy. Over the years, a number of policies have been adopted by the government and some actors in the private sector to foster the growth of these small enterprises. Unfortunately, the difficulties continue. Several authors have identified a number of these issues, including weak managerial abilities, a lack of funding, small business owners’ reckless spending, subpar marketing plans, etc. The failure of the few SMEs that have prospered over the years is not due to their carelessness and have contributed immensely to the of Nigeria dissemination, etc. At this moment, it is noteworthy that small firms, particularly those in the sub-Saharan region, seem to be falling behind in terms of the general trends for small enterprises. Due to their capacity to produce goods that appeal to the market and their ability to employ available marketing to ensure they capture and recoup a decent market share, small scale enterprises in Japan, for instance, are now working with worldwide clients. Despite the numerous evident and typical difficulties that small businesses face, this has been made achievable.

1.2   STATEMENT OF THE PROBLEM

Since e-marketing is still a young industry in Nigeria, it must overcome several obstacles to develop. Nigerians are illiterate and economically underprivileged, thus there aren’t many people doing business online. There aren’t many companies offering online services, and even fewer of them are making enough money to justify using e-marketing. Also, the country’s innovative corporate executives are becoming more and more influenced by globalization to choose e-marketing. E-marketing as a technique for marketing could assist small businesses in Nigeria in reaching a larger local market and gaining an advantage through competition while better serving the market. E-marketing also provides small businesses with a chance to explore new export markets. This study focuses on small and medium-sized firms and e-marketing in relation to possibilities and dangers.

1.3   OBJECTIVES OF THE STUDY

The goals of this study are as follows:
1. To investigate the prospects that e-marketing would present for Nigerian small and medium-sized businesses.

2. To investigate the risks that e-marketing poses to Nigeria’s small and medium-sized businesses.

3. To assess how small and medium-sized firms in Nigeria are aware of e-marketing as a tactical marketing strategy.