1.1 Introduction
Digital marketing is defined as the application of the internet and related digital technologies to achieve marketing objectives. This definition is a simple definition which, unlike the following ones, does not touch the important aspect of customer relationship (Chaffey et al., 2000). Economic growth overall plays a major role in reducing poverty. Global disparities in living standards have been brought about by the prevalence of poverty. Helping the people has been the technique, which has helped to alleviate some of the terrible problems in their life while also introducing new hopes and metaphors to their lives in contrast to their substandard living surroundings. It is widely acknowledged that entrepreneurship is essential to economic growth and a key factor in efforts to help nations escape poverty (Wolfenson, 2001).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Digital marketing has enabled companies from various industries to obtain real-time customer insights and create and communicate value to customers more effectively. This has led to a significant increase in customer base and associated top-line growth. Digital marketing research defines the types of media channels and highlights the goals of digital marketing by using online media to influence audiences and customer segments. Khin et al have explored the stakeholders involved in digital marketing, including the four key stakeholders of the merchant, the network, the publisher, and the customer. Digital marketing emphasizes the customer through different media channels. However, it lacks and, therefore, requires an integrated system and a strategic direction for these stakeholders to work upon and move towards smarter and more sustainable digital marketing.
The practice of digitization is in line with the smart city concept that is promoted by scholars and governments to address the current needs of the community by utilizing a wider range of digital technologies from the internet to digital twin and three-dimensional (3D) city modeling in geographic information systems (GIS). Companies, therefore, require smart and sustainable digital marketing strategies and models to guide them to ensure proper execution of such innovative and sustainable digital marketing techniques.
The significance of SME's is widely recognized in the developing world. According to Ojo (2003), small-scale business operations and activities are what propel Asia's economic growth since they employ over 60% of the labour population, particularly in rural regions, and are a crucial component of the subsector. Addaney et al., (2016) asserted that, it serves as a source of income and its redistribution improves capital acquisition, reduces poverty, and empowers individuals especially women and young people.
At least 316 million people in 42 US states have been asked to stay at home, and later, businesses have been vulnerable to the transition to virtual workplaces or laying off employees (Kim, 2020). Many employees are quickly adjusting to digital transformation, Zoom’s online video conferencing software reports a 78% profit growth, and a Google Meet report reports a 60% increase in user traffic, where people spend 2 billion minutes meeting online every day (Kim, 2020).
Similarly, a poor person in Nigeria might not be perceived as such by other Africans in dire economic needs. Thus poverty is partly a matter of how one person’s income stacks up against the other person’s and partly how one earns his living. Due to the arming increase of poverty, the Nigerian government has designed a lot of stabilization measures or programmes to curb or reduce the menace of poverty in this country. Each past administration came up with a unique programme mire in order to eradicate or alleviate poverty in Nigeria (Dike 2000:5). Nevertheless, a number of studies have found that some of the major obstacles preventing their contributions to socio-economic development, particularly in developing countries, are poor and insufficient support services, restricted access to credit, and unfair market competition (Anyanwu, 2003; Lawson, 2007, Odili & Ighedosa, 2014).
The importance of SMEs has been acknowledged on a global scale; they boost economic productivity growth, which is essential for promoting public welfare and reducing poverty. In addition to contributing significantly to the economy's industrialization, SMEs also reinvigorate structural transformation. more productivity in the economy entails more innovation. Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Role of Digital Marketing on Small and Medium Enterprises.
1.3 Statement of Problems
Investigation revealed that many SMEs lack in-house expertise in digital marketing strategies and technologies. They may struggle to keep pace with the rapidly evolving digital landscape and may not fully understand the potential benefits and pitfalls of various digital marketing channels and techniques.
Also, SMEs often compete with larger corporations that have greater financial resources and brand recognition. These larger competitors may dominate digital marketing channels, making it difficult for SMEs to stand out and capture market share. The rapid pace of technological innovation presents a constant challenge for SMEs in staying abreast of the latest digital marketing trends and tools. They may struggle to adopt emerging technologies such as artificial intelligence, data analytics, and automation, which can enhance the effectiveness of digital marketing campaigns.
Additionally, SMEs may face challenges in effectively identifying and reaching their target audiences amidst the vast online marketplace. They may struggle to create compelling content and messaging that resonates with their audience, leading to low engagement and conversion rates.
Furthermore, SMEs may find it challenging to accurately measure the ROI of their digital marketing efforts due to the complexity of online metrics and the interconnected nature of digital channels. This lack of clear ROI measurement can hinder decision-making and resource allocation for future marketing initiatives.
Addressing these problems will be crucial for SMEs to develop effective digital marketing strategies that drive business growth and competitiveness in today's digital-first marketplace.
1.4 Aim and Objectives of Study
The aim of the study is to analyze the Digital Marketing Trends for Small and Medium-Sized Enterprises. In achieving this aim, the following specific objectives were laid out as follows:
- To explore the best practices and success stories of SMEs that have effectively leveraged digital marketing to achieve their business objectives;
- To assess the impact of emerging technologies, such as artificial intelligence, augmented reality, and chatbots, on SMEs' digital marketing efforts;
- To analyze the effectiveness of different digital marketing strategies in reaching and engaging SMEs' target audiences;
- To identify the prevalent digital marketing channels and techniques adopted by small and medium-sized enterprises;
- To investigate the challenges and barriers faced by SMEs in implementing digital marketing campaigns; and
- To provide recommendations and actionable insights for SMEs to enhance their digital marketing strategies and maximize their online presence and competitiveness.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the best practices and success stories of SMEs that have effectively leveraged digital marketing to achieve their business objectives?
- What is the effectiveness of different digital marketing strategies in reaching and engaging SMEs' target audiences?
- What is the prevalent digital marketing channels and techniques adopted by small and medium-sized enterprises?
- What are the challenges and barriers faced by SMEs in implementing digital marketing campaigns?
- What is the impact of emerging technologies, such as artificial intelligence, augmented reality, and chatbots, on SMEs' digital marketing efforts?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: SMEs that allocate a higher proportion of their budget to digital marketing will experience greater online visibility and brand awareness compared to those with lower digital marketing budgets.
- H02: SMEs that effectively leverage social media platforms for marketing purposes will experience higher levels of customer engagement and brand loyalty compared to those that underutilize social media channels.
- H03: SMEs that implement personalized digital marketing strategies, such as targeted email campaigns or tailored content marketing, will achieve higher conversion rates and customer retention rates than those that rely on generic marketing approaches.
- H04: SMEs that invest in search engine optimization (SEO) and pay-per-click (PPC) advertising will experience increased website traffic and lead generation compared to those that neglect these strategies.
- H05: SMEs that adopt emerging technologies, such as AI-powered chatbots or virtual reality experiences, in their digital marketing efforts will gain a competitive advantage and enhance customer engagement compared to those that stick to traditional marketing methods.
- H06: SMEs that prioritize data analytics and performance measurement in their digital marketing campaigns will be better equipped to optimize their strategies and achieve higher ROI compared to those that lack robust analytics capabilities.
1.7 Significance of Study
The significance of conducting an analysis of digital marketing trends for small and medium-sized enterprises (SMEs) lies in its potential to provide valuable insights and guidance for SMEs as they navigate the increasingly competitive digital landscape. Here are several key aspects of the study's significance:
- Empowering SMEs: SMEs form the backbone of many economies around the world, yet they often lack the resources and expertise of larger corporations. By analyzing digital marketing trends specifically tailored to SMEs, this study can empower smaller businesses to make informed decisions about their digital marketing strategies, thereby leveling the playing field and enhancing their competitiveness.
- Enhancing Online Visibility: In today's digital age, having a strong online presence is crucial for SMEs to attract customers and grow their businesses. By identifying emerging digital marketing trends and best practices, the study can help SMEs enhance their online visibility and reach their target audiences more effectively, ultimately driving traffic to their websites and increasing sales.
- Optimizing Resource Allocation: SMEs typically operate on tighter budgets compared to larger corporations, which necessitates careful allocation of resources. By analyzing the effectiveness of different digital marketing strategies, SMEs can better prioritize their marketing investments to maximize ROI and achieve their business objectives within budget constraints.
- Adapting to Technological Changes: The digital marketing landscape is constantly evolving, with new technologies and platforms emerging regularly. This study can help SMEs stay abreast of the latest digital marketing trends and technologies, enabling them to adapt their strategies accordingly and remain competitive in the marketplace.
- Facilitating Growth and Innovation: Digital marketing offers SMEs opportunities for growth and innovation by providing cost-effective ways to reach new markets and engage with customers. By uncovering innovative digital marketing strategies and success stories, the study can inspire SMEs to think creatively about how they can leverage digital channels to expand their businesses and differentiate themselves from competitors.
- Contributing to Knowledge Creation: Finally, the study contributes to the broader body of knowledge on digital marketing for SMEs. By generating empirical insights and actionable recommendations, it adds to the existing literature and provides a foundation for future research in this area, ultimately advancing our understanding of how SMEs can harness the power of digital marketing to drive success.
1.8 Scope of Study
The scope of the research is focused on the Analysis of Digital Marketing Trends for Small and Medium-Sized Enterprises. The researcher encounters some constrain which limited the scope of the study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research Material: availability of research material is a major setback to the scope of the study.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Digital Marketing:
Digital marketing is the component of marketing that utilizes internet and online based digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services
Business Expansion:
Business expansion is a stage of a company’s life that is fraught with both opportunities and perils. On the one hand, business growth often carries with it a corresponding increase in financial fortunes for owners and employees alike
Marketing:
Marketing is the process of teaching consumers why they should choose your product or service over those of your competitors, and is a form of persuasive communication.
Promotion Channels:
In marketing, promotion refers to any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue.
