CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Digital marketing is one type of marketing being widely used to
promote products or services and to reach consumers using digital
channels. Digital marketing extends beyond internet marketing
including channels that do not require the use of Internet. It
includes mobile phones (both SMS and MMS), social media
marketing, display advertising, search engine marketing and many
other forms of digital media. Digital marketing is the type of
marketing that is used to promote products and services to reach
potential customers and it uses digital channels and other forms of
media such as social media marketing, display advertising, and
search engine marketing.
Given that the business industry is complex and competitive by
then, small businesses play an important role as they are
recognized as one of the main contributors to economic
development and employment growth. There are some small
businesses that don't survive in the market due to the reason that
they're not able to reach their Target audience compared to that
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
the e-commerce companies are doing highly digital marketing for
their products. The effectiveness of digital marketing allows the
small businesses to be competitive in today's world as it can give
better opportunities to grow their business if they improve their
internet connectivity to market their customers, brand awareness
on the public to generate more potential customers and more
revenue, improve their product quality, and give promotion of
products and services they are offering. Understanding marketing is
essential for a company to succeed (Bacon & Schneider, 2019). Yet,
many small business owners lack the marketing understanding
professional marketers possess (Bacon & Schneider, 2019). Small
business owners that are knowledgeable about efficient marketing
techniques are adept at attracting customers (Eryigit, 2017). By
investing money in the activities that draw customers to sustain the
firm, a good digital marketing plan can lower the risk of failure
(Gilmore & Carson, 2018).
The significance of marketing has been gaining ground alongside
digitalization. Today small businesses started to acknowledge the
impact marketing strategies have on business longevity. Traditional
marketing is still proper; however, a digital presence is necessary.
Therefore, the role of digital marketing strategies is valuable. To
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
gain a competitive advantage, a business must create a positive
digital brand image. Online users know what they need; however,
they seek an experience that affects their purchase decisions and
evaluation of
alternative products or services. Digital marketing has provided
businesses with a platform to create customer awareness through
digital gadgets and tools. Further, digital marketing trends change
over time; therefore, understanding available digital marketing
strategies will make a huge difference. Moreover, digital metrics
assist in defining, measuring, and improving business
performances. Therefore, Digital metrics are a good direction for
strategic planning and development.
Small Business Enterprises do play a major and important role in
today’s world economy, and they are recognized as one of the main
contributors to economic, development and employment growth.
In this today’s digital world small businesses need to understand
the effectiveness of digital marketing to small businesses is
important to survive in this competitive world. One of marketing's
core functions is to creatively differentiate a business's goods or
services to potential customers (Kaleka & Morgan, 2019). Exploring
digital marketing strategies help small businesses achieve and
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
sustain a competitive advantage in regard to survival, and
continuity of their business.
Background of the study
The shifting from traditional to digital and marketing is no
exception especially when pandemic happened. As technology
evolution is evident through the years, the use of digital marketing,
social media marketing, and search engine marketing is also
increasing. The number of internet users is rising quickly, and as
digital marketing relies heavily on the internet, it has benefited the
most. Consumers are altering how they make purchases, and they
prefer digital marketing to traditional marketing.
In the digital age, marketers face new difficulties and
opportunities. The use of digital media by marketers to market their
goods or services is known as digital marketing. The purpose of this
research is to study the impact of digital marketing and its effects
on small businesses around Pasay City. Digital marketing is a type
of direct marketing that uses interactive media like emails,
websites, virtual communities and newsletters, television services,
mobile communications, etc. to connect buyers and sellers
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
electronically. The phrase "digital marketing" also refers to a broad
range of advertising strategies used to connect with consumers
online.
The main benefit of digital marketing is that it enables businesses
to sell their goods and services around-the-clock, 365 days a year,
at a reduced cost, with greater efficiency, in order to increase sales
and provide better customer service. Due to its high level of
connectivity, it facilitates many-to-many conversations and is
typically used to sell services or goods in a quick, pertinent, safe,
and in a cost-effective manner.
Theoretical framework
According to Parry et al., (2011) Goods are defined as a
physical object that is exchangeable, tradeable in markets,
organization, etc. Services are defined as intangible,
heterogeneous, inseparable, and perishable. They pointed out that
when it comes to separating products and goods, there is no
accurate definition despite the subject studied by multiple authors.
They claim that both goods and services can be traded if it involves
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
one customer and one provider. When a firm provides a service or a
product, there is always a hidden agenda. For instance, the
provider is trying to profit or get a better reputation in society. The
authors explained that the research on products and services had
not captured the essence of the definition by various researchers.
They claim that there has been a shift from a service and a product
to combining both and offering more Value to the customer. They
also pointed out that it is essential to work with customers to
understand both services and products and to make the best
services suited by creating a value proposition that meets their
needs.
According to Ritter and Pedersen (2019) conducted a study
that presented an overview of research on digitalization and pointed
out that the concepts of artificial intelligence, computer power, and
big data have been a subject of focus for many years in academics.
The authors compared the difference between digitalization and
digitization and claim that digitalization is the result of digitization
in society. In conducting this study, they suggested three
perspectives in order to understand the concept of digitalization.
The first perspective suggested is that the firm should generate,
transmit, and store the data and have the necessary means to
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
access the data. If a firm cannot do the highlighted things, then the
firm cannot extract the Value. Secondly, when it comes to
digitalization is to have permission to use the data. Firms can get
permission by negotiating how the data should be handled and the
various privacy measures that should be considered with the
respective partners. The third perspective is that the firm must
consider getting all the permission that is needed for accessing the
data so that they can analyze the partner’s activities. They pointed
out that this interest in academics had led to a significant trend that
impacts the daily practices of businesses.
They explained that different authors had studied
digitalization and digital literature, yet the concept has many
meanings that lack a good overview of the concept. Many
businesses have integrated various technologies caused by
digitization (Ritter and Pedersen, 2019).
CONCEPTUAL FRAMEWORK
The researchers used (IPO) model. It shows the process of
determining the effectiveness of using Digital marketing to small
businesses owner in Pasay City wherein the input consists of the
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
following: Age Gender, Status and Number of years in the business,
these are the demographic profile of our respondents. For process it
includes the analysis data through, collection of data based on the
questionnaires and survey that were utilized and Tabulation and
interpretation of data. The output is to Improved quality. service,
increase high sales and Retain Customers through the Effectiveness
of using Digital Marketing in small business owner on Pasay City.
INPUT PROCESS OUTPUT
1. Profile
1.1 age Survey What action plan to
Questionnaire enhance the
1.2 Status
Inferential Effectiveness of
1.3 Gender
Statistics Digital Marketing to
1.4 Educational attainment small businessowner
1.5 No. of years in business in Pasay City.
2. Assessment of the
Effectiveness of Digital marketing
in terms of :
2.1 Internet Connectivity FEED BACK
2.2 Brand awareness
2.3 Product Quality
2.4 Promotion of the product &
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
Figure 1.
The research paradigm of the study on the effectiveness of
digital marketing to Small Business in Pasay City .
Statement of problem
This study is aim to assess the effectiveness of digital
marketing to small businesses in Pasay City. Specifically, It find
answers the following questions.
1. What is the profile of the respondents in terms of:
1.1 Age
1.2 Status
1.3 Gender
1.4 Educational attainment
1.5 No. of years in business?
2. How the respondents assess the effectiveness of digital
marketing to business owners in Pasay City in terms of the
following variables.
2.1 Internet connectivity
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
2.2 Brand awareness
2.3 Product quality
2.4 Promotion of the product and services
3. Is there a significant differences on the assessment of
respondents on the effectiveness of digital marketing to
business owners in Pasay City when grouped according to this
profile of the respondents.
4. What are the challenges/ problems encounter by the
respondents in the effectiveness of digital marketing to
business owners in Pasay City.
5. What action plan to enhance the effectiveness of digital
marketing to small business in Pasay City as an output of the
study .
Hypothesis
There is no significant difference on the assessment of
respondents on the effectiveness of digital marketing to business
owners when grouped according to their profile.
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
Significance of the study
For the Students – this study may serve as a reference for the
students undertaking similar studies.
For the professors – the given data will guide the professor on
what to do and help then students to be more knowledgeable when
it comes to studying the effectiveness of digital marketing in small
businesses.
For small businesses- this research will serve as a tool for guiding
small business owner in marketing their product or services.
For researchers – the outcome of the study is beneficial to present
researcher. This study may be one of the basis that a new theory in
learning will arise.
For the future researchers -this research will be a useful
reference for the researchers who would plan to make any related
study precisely about the effectiveness of digital marketing to small
businesses.
Scope and limits of the study
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
This research highlights the effectiveness of digital
marketing on small businesses in Pasay City.
The study aim to assess the effects of digital marketing on
small businesses who already using digital marketing on their
business.
The sample collected for this study would be from the small
business owners in Pasay city who has already do implementation
of digital marketing.
Limitations
The limitation of the study is base on the primary data and
limitation of this is inaccurate will give by the respondent.
The researchers will conduct a survey questionnaires 50
respondents in Pasay City. The respondents consist of 25 male and
25 females.
Definition of terms
digital marketing - Digital marketing, also called online
marketing, is the promotion of brands to connect with
potential customers using the internet and other forms of
digital communication. This includes not only email, social
media, and web-based advertising.
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
small business -Small business is defined as a business that
has a limited number of employees, typically fewer than 500,
and operates independently of larger corporations.
effectiveness - the degree to which something is successful
in producing a desired result; success. "the effectiveness of
the treatment"
satisfaction - is defined as a measurement that determines
how happy customers are with a company's products,
services, and capabilities.
quantity - the amount or number of a material
or immaterial thing not usually estimated by spatial
measurement.
brand awareness - the extent to which consumers are
familiar with the distinctive qualities or image of a particular
brand of goods or services. “a campaign to increase brand
awareness"
sms - stands for Short Message Service and is commonly
known as texting. It's a way to send text-only messages of up
to 160 characters between phones.
mms - stands for Multimedia Messaging Service. Whenever
you send a text with an attached file, like a picture, video,
emoji, or a website link, you're sending an MMS.
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
e-commerce - Ecommerce or electronic commerce is the
trading of goods and services on the internet.
intangible - able to be touched or grasped; not having
physical presence. "My companions do not care about
cyberspace or anything else so intangible."
technology - It deals with the creation and use of technical
means and their interrelation with life, society, and the
environment, drawing upon such subjects as industrial arts,
engineering, applied science, and pure science.
social media marketing - It is the process of using social
networking platforms to increase the brand awareness and
also to connect with your target audience and market your
products and services.
promotion - It seeks to inform customers about the
company's activities, its current and future offers, shape a
CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
positive brand image, build positive relationships, and
stimulate demand in business strategy,
