Digital Marketing Impact on SME

This report investigates the impact of digital marketing on the profits and sales of SMEs, using The People's Supermarket as a case study. It analyzes the benefits and drawbacks of digital marketing, presents data collected through a questionnaire, and offers recommendations for enhancing digital marketing strategies for SMEs.

UNIT 11 RP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
RESEARCH TOPIC........................................................................................................................1
Topic............................................................................................................................................1
Aim..............................................................................................................................................1
Objective......................................................................................................................................1
Significance.................................................................................................................................1
LITERATURE REVIEW................................................................................................................2
Importance of digital marketing on profits and sales of SME.....................................................2
Positive and negative impact of digital marketing on SME........................................................3
Recommendation on use of digital platform for marketing for improving profits of SME........5
RESEARCH METHODOLOGY....................................................................................................5
DATA COLLECTION....................................................................................................................7
CONCLUSION................................................................................................................................7
Recommendation.........................................................................................................................7
Reflection.....................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................11

INTRODUCTION
Digital technology is very much important for accelerating and improving profits
for firm so that they are able to grow and develop into prevailing marketing conditions or
increasing competition as well (What Is Digital Marketing, 2018). There are number of ways for
firm to get profits and increase into their sales but they must be trying to indulge more and more
with use of digital marketing. SME in UK are growing faster than big industries and contributing
larger share in GDP of company this is due to their use of technology and innovations in
operations as well. So this particular project will be based on exploring significance of digital
marketing on profits and sales of SME within context of UK. For this assessment of importance
or significance of digital marketing within profits of firm The People’s Supermarket is been
taken which will help to conduct the research in proper manner.
The People’s Supermarket was started in year 2010 by Arthur Dawson which is aimed at
selling food at good and cheaper price to consumers and producers as well. This supermarket is
based upon concept of food cooperative under which the member will be contributing £25 as
annual fee and giving at least 4 hours of a month working within store. For this these members
will be getting 20% discount on their shopping in-store only.
RESEARCH TOPIC
Topic
The implications of digital technologies on SME
Aim
To explore the significance of digital marketing on profits and sales of SME: A study on
The People’s Supermarket”
Objective
 To study on importance of digital marketing on profits and sales of SME
 To explore the positive and negative impact of digital marketing on SME
 To provide recommendation on use of digital platform for marketing for improving
profits of SME
Significance
As in current time digital technology is very rapidly changing so its impact is also on
business operations and profits of firm. The companies are now performing very well as they are
using digital technology which is helping them to connect with their clients and customers on
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easier terms. So this project which is covering impact of digital technology on profits and sales
of SME firm is very much significant for those who are studying the same topic in their
graduation and post-graduation. The topic or research is also essential for those companies which
are SME’s so that they will be having knowledge that how much technology is helpful for them.
Further for People’s Supermarket on which research is conducted this project is useful they could
gain knowledge about implementation and use of digital marketing.
LITERATURE REVIEW
Importance of digital marketing on profits and sales of SME
According to Taiminen and Karjaluoto, (2015) it could be included digital marketing is
that effort which will use all electronic device and internet within promoting and selling of
products of company. There are number of channels of digital marketing like that of email,
search engines, website of company and social media platform which help firm to connect with
their new or current customers. So the number of different tactics and channels which are used
by company to encompass spreading of their products and services to wider customer base will
be termed to as digital marketing.
This digital marketing is very much essential for increasing profits and sales of SME
business as this will support in achieving of long and short term goals of firm. As included by
Järvinen and Karjaluoto, (2015) content marketing which is a form of marketing will help in
creating series of blog post that would be serving as generating profits. Digital transformation
and growth of company will be using marketing plan which is developed to attain goal for firm.
Thus it could be noted that with help of digital marketing growth options for small business
could be easily opened (The impact of digital marketing on SME’S, 2018). This will be
depending upon method or channel that will be used by company and their reach for wider
audience that too at lesser cost.
Further it could be included that Musa, Shibghatullah and Othman, (2016) conversion
rate of customers if company is using digital technology will be higher than traditional
marketing. Conversion rate is that percentage of visitor to website or social media channel of
company which is helping firm to complete their desired goal out of total number of visitors. If
the conversion rate is higher than this will indicate that marketing is successful and if it is low
then this would mean that marketing done by company is not good. Within this also Kumar,
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Janakiraman and Kannan, (2016) indicated that content marketing is having the highest and
greatest impact on profits and sales of company among all other digital marketing.
As per the view of Zaglia, Abfalter and Müller, (2015) for all firm and companies
whether they are working on small or large platform their priority will be their customers. So this
is with help of digital marketing it has been possible to connect and communicate with clients
and customers. It is worth noticing that all problems and grievance of customers are now
addressed with use of social media. Like for example company could help customers to ask
about products or service their use or any other type of issue if it is arising.
With this it could be included by Jones, Borgman and Ulusoy, (2015) that if company is
getting themselves connected with all their customers with help of mobile or other online sources
than this will also ease their operations. Most of the companies are having their own mobile
applications which will allow customers to buy products and services online. If company is
promoting their brand and its products then it will be possible for them to increase profits and
sales in coming time or year. It was included by Aslam and Karjaluoto, (2017) that digital
marketing will allow all SME to be able to compete with a smaller budget of advertising. But
they need to manage it effectively so that it could be giving them ability to have control over
their spending of money so that they are been able to explore benefits or importance of digital
marketing as well.
Positive and negative impact of digital marketing on SME
As it was included by Neirotti, Raguseo and Paolucci, (2016) positive impact of digital
marketing is more than negative on the SME firm. The most important among the positive
impact will be its increase in trust for branding among customers. If the brand of company is
present into all or multiple platform then this will enable customers with wider options to rate
their service with their level of experience. The customers are satisfied and are happy with what
company is giving them then this will allow them to leave a positive or favourable review for
company.
According to the view of Afrifa and Padachi, (2016) contacting with company through
help of social media page for way of resolving issue resolution or for other matters as well is
very much common. In the past time it could be included that all sort of budget allocation was
done based on individual marketing medium but this is not familiar in this present times. If
company is been digital then this would clearly mean that they will be having different way or
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access to variety of packages of costing. So from these company could be ready to select any
kind which is just suiting their type of budget and even it could be done in small level of
investment. As per Ebitu, Ufot and Olom, (2015) noted that even if budget of company for
digital marketing is less or their investment is low then also it is very much easy for them to
deliver best kind of results.
If the company is using web analytics then it will be helpful for them to known whether
their website is providing optimal level of Return on Investment (ROI) or not. Whereas it is also
noted that website is not the only sources for generating revenue directly for company but rather
conversion rate of inquiries could also be made or allowed with help of telephone calls and email
that are done for sales. It was also included that Hilmola, Hilletofth and Malmsten, (2015) digital
marketing is very much cost effective as they will not be required to keep track on each thing
separately rather all things together could be analysed together. As the digital marketing will be
giving them chance to reach out more number of customers that too within short span of time
and this will also be under their budget.
While on other hand Aslam and Karjaluoto, (2017) indicate that there are also
many side effect or negative impact on business of firm as well. The social media ROI and its
measurement is not that much easy for any firm to calculate properly as it become very difficult
to measure it. As companies are much active on many online sites or social media campaign but
the major concern for them will be the complex procedure of measuring the ROI or return on
investment from each investment made. there are many types of online tools like that of Twitter
analytics, Google, Facebook insights and Buffer which are meant to provide different types of
statistics in way of understanding effectiveness of campaign which are made. It was also
included by Jones, Borgman and Ulusoy, (2015) there are increased in chance of copying
campaigns, products and even brand name by competitors of company. Thus digital marketing
will enable others to copy or replicate the products which are always considered to as negative
impact of digital marketing on profit of company.
In addition to this it could be included that company will be having less control on all
type of stuff or content which they are sharing on social media. There are number of users and
customers who are interacting on social media on single post or tweet. So company will be
losing its control over what customers are sharing on their own social media post that too about
company. Janakiraman and Kannan, (2016) indicated that all type of negative comments or
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reviews of customers will be very much harmful for firm. These negative review will be harming
customers and increasing number of complains which they are making related to their product or
services. It is not necessary that all customers who are having any type of issue will be reaching
company but most of them will be directly posting social media profile of company.
Recommendation on use of digital platform for marketing for improving profits of SME
There are many recommendations and suggestion within the use of digital platform for
marketing for improving profits for SME business. As it was included by Musa, Shibghatullah
and Othman, (2016) company must be engaged into actively participation in groups, discussions
and forums so that they could be able to get idea about thinking and any new ideas by customers.
They must be participating into social listening which is termed to as monitoring is a process to
identify and then check what customers and other experts in field are saying about product and
service of company.
Other than these Järvinen and Karjaluoto, (2015) indicated that regularly having access to
social media profile for all the latest comments and sharing or posting so that they could be
responding to issues faced by customers. It is also advised that the person who is in charge of
handling all problems and complaints of customers if is not able to resolve it then must be
forwarding it to concerned departments. As it is very much important and essential to make sure
that complaints of customers are heard and then required solution is been provided to them all.
Uses of analytical tools like that of Bitly, Hoot suite and Buffer will be helpful for company so
that they are been able to understand how effective their social media channels or campaigns are.
Taiminen and Karjaluoto, (2015) explained that all employers or company must make sure that
their employees are having knowledge and understanding of each of them will always represent
their brands. So they should be aware about all do’s and don’ts of the platform which company is
using and could harm image of company as well.
RESEARCH METHODOLOGY
Research Philosophy-
This is one of the most important part of whole research methodology. The research
philosophy is that belief about how to gather data, analysed and used so it includes all type of
sources and nature of data as well (Hilmola, Hilletofth and Malmsten, 2015). This concerned
topic which is dealing with exploring significant of digital marketing on the profits and sales of
SME business within UK interpretivism research philosophy will be used. With the help of this
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philosophy researcher will be able to gather smaller size of samples with having more in-depth
study so that qualitative results could be obtained.
Research Design-
It is the arrangement of all conditions and collection into meaningful and coherent
manner so that survey which is conducted could be having appropriate results. The type and
choice of research design will depend upon the type of data which is been collected. As the
current research will be having quantitative data but which is interpreted using thematic analysis
technique so descriptive design will be used (Neirotti, Raguseo and Paolucci, 2016). This type
will enable to describe the whole research topic with its aims and objective for formulating
results towards the end. The descriptive type of design is most suitable for this type of analysis
which is done using thematic analysis.
Research Approach-
This will be procedure and plan for whole research consisting of steps and stages for broader
assumptions so that data collection and its analysis could be done in detail. The types of
research approach that will be used by researcher depend upon type of research problem
which need to be resolved. For this research which is concerned with exploring impact of
digital marketing on profits and sales of SME deductive approach will be used. It will be
very logical process under which interpretation will be based on many bases by assuming
that all of them are true in all context.
Data Collection-
This is the most important and essential part of any research topic which is concerned with
collecting up of meaningful and coherent results so that aims and objective could be met
easily (Kumar, Janakiraman and Kannan, 2016). There are two types of data collection
method or source which is primary and secondary. Both of them are very much important
and essential for undertaking research and interpreting the results thereafter. But in this
current research which is based on exploring impact of digital marketing on profits and sales
of SME primary data collection technique will be used. Within this primary data is been
collected from first hand source which are certainly not been used by anyone before. Like
for example questionnaire is prepared in this current research which is form of primary data
collection technique which is allow researcher to gather opinion of participants on topic.
Data Analysis-
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This is another important part that deals with analysing or interpreting the collected data
which is gathered by researchers with help of techniques and methods. For analysing the
opinion of participants about significance of digital marketing on sales and profits of firm
qualitative research analysis technique will be used. This is the most simple and easy
method under which collected data is analysed by using thematic analysis. Under which
themes are prepared using questions that are asked in questionnaire so that each could be
interpreted separately.
Sampling-
This is most essential part without which there will be no specified source of taking out
results and interpreting them. So for this research 15 sample of employees from The People’s
Supermarket UK will be taken based on simple random technique. Under this technique
complete population will be drawn and having equal chance of been selected into the process of
analysing results.
DATA COLLECTION
Questionnaire
Name
Age-
Gender-
Demographic Profile
Q1. Do you think that digital marketing is beneficial for The People's Supermarket for
marketing activities?
 Strongly Agree
 Agree
 Strongly Disagree
 Disagree
Q2. Which among the following has positive impact of digital marketing on The People's
Supermarket?
 Increased profits
 Cost-effective
 Huge return on investment
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 Precise targeting
Q3. Do you agree that digital marketing helps in increasing the sales of The People's
Supermarket?
 Strongly Agree
 Agree
 Strongly Disagree
 Disagree
Q4. Do you believe that digital marketing has more impact on customers in comparison to
traditional marketing?
 Strongly Agree
 Agree
 Strongly Disagree
 Disagree
Q5. Which marketing platform is adopted by the business in achieving promotional activities?
 Social media channels
 TV Advertisements
 Marketing campaign
 All the above
Q6. Among methods of digital marketing, which is suits better for business?
 SEO (Search Engine Optimisation)
 Content marketing
 Influencer marketing
 E-commerce marketing
Q7. Do you think that sales and profits are maximised due to implementation of digital
marketing?
 Yes
 No
Q8. Do you agree that digital marketing leads to reduction in financial burden on firm?
 Strongly Agree
 Agree
 Strongly Disagree
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 Disagree
Q9. Please provide any suggestions for improving services........
Theme 1- Digital marketing is beneficial for firm
Q1. Do you think that digital marketing is
beneficial for The People's Supermarket for
marketing activities? Respondents
Strongly Agree 6
Agree 4
Strongly Disagree 3
Disagree 2
Total 15
Strongly Agree Agree Strongly Disagree Disagree
0
1
2
3
4
5
6
7
6
4
3
2
Respondents
Interpretation-
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It can be interpreted from the above chart that 6 respondents said that digital marketing is
beneficial for business in accomplishing marketing activities. While, 4 agree with the statement.
On the other hand, 3 participants strongly disagree and 2 disagree and answered that digital
marketing is not helpful for promotional purpose to firm. However, majority respondents
believes that The People's Supermarket is benefited with it.
Theme 2- Cost-effective is positive impact of digital marketing
Q2. Which among the following has positive
impact of digital marketing on The People's
Supermarket? Respondents
Increased profits 4
Cost-effective 5
Huge return on investment 3
Precise targeting 3
Total 15
Increased profits
Cost-effective
Huge return on investment
Precise targeting
0
1
2
3
4
5
6
4
5
3 3
Respondents
Interpretation-
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It can be interpreted from the chart that there are various factors which has positive
impact of digital marketing on company. Majority of respondents said it is cost-effective for The
People's Supermarket for promoting activities. While, 4 responded that profits are increased as
promotion is done and impact can be seen on people instantly. On the other hand, 3 said huge
return on investment and 3 answered precise targeting is accomplished.
Theme 3- Digital marketing increases sales
Q3. Do you agree that digital marketing
helps in increasing the sales of The People's
Supermarket? Respondents
Strongly Agree 6
Agree 3
Strongly Disagree 2
Disagree 4
Total 15
Strongly Agree Agree Strongly Disagree Disagree
0
1
2
3
4
5
6
7
6
3
2
4
Respondents
Interpretation-
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The above chart reflects that 6 strongly agree that sales and profits are increased of firm.
While, 3 also agree that growth is accomplished. While, 4 disagree and 2 strongly disagree that
profitability position is not enhanced because of digital marketing.
Theme 4- Digital marketing has more impact on customers
Q4. Do you believe that digital marketing has
more impact on customers in comparison to
traditional marketing? Respondents
Strongly Agree 7
Agree 2
Strongly Disagree 4
Disagree 2
Total 15
Strongly Agree Agree Strongly Disagree Disagree
0
1
2
3
4
5
6
7
8
7
2
4
2
Respondents
Interpretation-
It can be analysed that 7 respondents strongly agree that digital marketing has major
impact on customers as it is within the reach of persons instantly. 2 responded the same, but 4
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strongly disagree that digital marketing has no major impact in comparison to traditional
marketing. Moreover, 2 people said that digital marketing has no impact or influence on
customers.
Theme 5- Social media channels is adopted by business
Q5. Which marketing platform is adopted by
the business in achieving promotional
activities? Respondents
Social media channels 7
TV Advertisements 4
Marketing campaign 2
All the above 2
Total 15
Social media channels
TV Advertisements
Marketing campaign
All of the above
0
1
2
3
4
5
6
7
8
7
4
2 2
Respondents
Interpretation-
It can be referred to above chart that 7 respondents said that social media channels are
largely used by company in attaining marketing of products. While, 4 employees answered in
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favour of TV advertisements. On the other side, marketing campaign is provided by 2
respondents and remaining answered that all marketing platforms are used by The People's
Supermarket.
Theme 6- E-commerce marketing is best suitable
Q6. Among methods of digital marketing,
which is suits better for business? Respondents
SEO (Search Engine Optimisation) 2
Content marketing 3
Influencer marketing 4
E-commerce marketing 6
Total 15
SEO (Search Engine Optimisation)
Content marketing
Influencer marketing
E-commerce marketing
0
1
2
3
4
5
6
7
2
3
4
6
Respondents
Interpretation-
It can be analysed from the chart that company should use E-commerce marketing as 6
respondents have answered the same. On the other hand, 2 responded SEO is suitable,3 said
content marketing is better. While, remaining 4 said influencer marketing should be utilised by
company in effective manner.
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Theme 7- Sales and profits are maximised
Q7. Do you think that sales and profits are
maximised due to implementation of digital
marketing? Respondents
Yes 10
No 5
Total 15
Yes No
0
2
4
6
8
10
12
10
5 Respondents
Interpretation-
The above chart clearly reflects that due to implementation of digital marketing, sales and
profits are increased up to a high extent. This is evident from the fact that 10 out of 15 employees
have answered in favor of it. Moreover, promotional activities through modern marketing leads
to reduction in expenses by which company has sufficient way for increasing revenue. This
ultimately leads to attainment of higher sales and profitability position strengthens quite
effectually.
Theme 8- Financial burden is reduced
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Q8. Do you agree that digital marketing leads
to reduction in financial burden on firm? Respondents
Strongly Agree 7
Agree 3
Strongly Disagree 3
Disagree 2
Total 15
Strongly Agree Agree Strongly Disagree Disagree
0
1
2
3
4
5
6
7
8
7
3 3
2
Respondents
Interpretation-
It can be assessed from the chart that 7 respondents strongly agree that digital marketing
leads to attainable of better promotion by incurring lesser expenditures. Moreover, 3 also agree
with the statement. On the other hand, 3 participants strongly disagree that financial burden is
not reduced and 2 respondents also disagree that financial burden is not decreased because of
digital marketing. However, digital marketing is beneficial as majority respondents have agreed
it.
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CONCLUSION
From the above tables, graphs and data collected it could be concluded that for all SME
digital technology is very much helpful and playing significant role in increasing profits. There
are increasing demand for goods and service among customers which is also represented within
social networking sites and website of company. It is very much important for firm to include
that company is considering both positive and negative impact of digital technology on their
profits and sales of company. This will enable them to effectively manage all cost so that
company is able to reach customers and clients on wider platform.
Recommendation
Based on above collected data and its interpretation there are certain recommendations
which are made:
Marketing strategy- This is very important that firm is making or formulating marketing strategy
so that their promotional and digital marketing campaign could be handled in proper and
effective manner. Extending up budget will be very much helpful for firm so that they are been
able to handle audience or target them.
Engaging employees- It is very much essential that company is allowing their employees to gain
knowledge about digital marketing and social media platform so that their employees will be
connected with customers.
Reflection
From the above analysis I have learnt many things from all most important are collection
of data and its interpretation for which I was not having much knowledge. I could now be able to
easily communicate to my audience which is most essential in undertaking research. I have
studied about impact of digital marketing on profits and sales of company so was able to judge
its impact and importance as well.
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REFERENCES
Books and Journals:
Afrifa, G.A. and Padachi, K., 2016. Working capital level influence on SME
profitability. Journal of Small Business and Enterprise Development, 23(1), pp.44-63.
Aslam, B. and Karjaluoto, H., 2017. Digital advertising around paid spaces, E-advertising
industry’s revenue engine: A review and research agenda. Telematics and Informatics.
Ebitu, E.T., Ufot, J.A. and Olom, P.A., 2015. Marketing Problems and the Performance of
Selected Small and Medium Enterprises (SMEs) in Southern Senatorial District of Cross
River State, Nigeria. American International Journal of Contemporary Research, 5(5),
pp.70-76.
Hilmola, O.P., Hilletofth, P. and Malmsten, J., 2015. Manufacturing strategy in SMEs and its
performance implications. Industrial Management & Data Systems, 115(6), pp.1004-1021.
Järvinen, J. and Karjaluoto, H., 2015. The use of Web analytics for digital marketing
performance measurement. Industrial Marketing Management, 50, pp.117-127.
Jones, N., Borgman, R. and Ulusoy, E., 2015. Impact of social media on small
businesses. Journal of Small Business and Enterprise Development, 22(4), pp.611-632.
Kumar, A., Janakiraman, R. and Kannan, P.K., 2016. From social to sale: The effects of firm-
generated content in social media on customer behavior. Journal of Marketing, 80(1),
pp.7-25.
Musa, H., Shibghatullah, A.S. and Othman, N.A., 2016. Social media marketing and online
small and medium enterprises performance: Perspective of Malaysian small and medium
enterprises. International Review of Management and Marketing, 6(7S), pp.1-5.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market positioning. International
Journal of Information Management, 36(6), pp.1133-1143.
Taiminen, H.M. and Karjaluoto, H., 2015. The usage of digital marketing channels in
SMEs. Journal of Small Business and Enterprise Development, 22(4), pp.633-651.
Zaglia, M.E., Abfalter, D. and Müller, J., 2015. The influence of online social networks on
performance of small and medium enterprises: An empirical investigation of the online
business to business network XING. International Journal of Entrepreneurial
Venturing, 7(1), pp.1-23.
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Online:
The impact of digital marketing on SME’S. 2018. [Online]. Accessed through:
<http://www.webdogs.in/the-impact-of-digital-marketing-on-smes/>.
What Is Digital Marketing? 2018. [Online]. Accessed through:
<https://blog.hubspot.com/marketing/what-is-digital-marketing>.
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APPENDIX
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