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 one of the major problems business marketing faces in their campaigns is still the use of primitive promotions channels such as press, brochure, catalogue, TV, cell phone, etc, and several offline channels which lacks a comprehensive, harmonizing marketing framework. In this project work, we present a new solution for businesses to promote their business online to reach a wider audience.
This study has observed a problem facing small and medium scale business as a result of the economic downfall, there are a number of bottlenecks, including services under capitalization with difficulty in gaining access to bank credits and other financial markets. Looking back, there has never been any real attempt on the part of government to formulate any tangible and lasting policies or programmes to support small business sectors. This is where strategic planning and control come in place, government has to effectively plan its policies and formulate programmes that will enhance the growth and sustenance of SMEs in the country.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Role of Digital Marketing on Small and Medium Enterprises in Ekiti State. In achieving this aim, the following specific objectives were laid out as follows:
- To examine how effective is digital marketing in small and medium enterprises;
- To ascertain the relationship between digital marketing and business expansion in the area under study; and
- To investigate if digital marketing is an effective tool in achieving business expansion in the area under study.
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:
- Is digital marketing an effective tool in achieving business expansion in the area under study?
- How effective is digital marketing in small and medium enterprises?
- What is the relationship between digital marketing and business expansion in the area under study?
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.
Hypothesis One
- H0: There is no relationship between digital marketing and business expansion in the area under study
- H1: There is relationship between digital marketing and business expansion in the area under study
Hypothesis Two
- H0: Digital marketing is not an effective tool in achieving business expansion in the area under study
- H2: Digital marketing is an effective tool in achieving business expansion in the area under study
1.7 Significance of Study
The outcome of the findings of this research will be very significant to students and any organization. The study will give a clear insight on the Role of Digital Marketing on Small and Medium Enterprises in Ekiti State. The study will also serve as a reference to other researcher that will embark on the related topic.
1.8 Scope of Study
The scope of the research is focused on the Role of Digital Marketing on Small and Medium Enterprises in Ekiti State. 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.
