This study determined the extent of the use of digital marketing in firms. It examinedthe challenges associated with the use of digital marketing and correspondding mitigating strategies. It also assess the effect of digital marketing on firms financial performance.The study used primary data, which comprised 150 small business using digital marketing in Lagos state. A census sampling technique was used to select all the companies.
The study result showed that email marketing was the most used digital marketing tool, as (100%) respondent picked yes to this, followed by social media (96.7%), affiliate marketing (60%), content marketing and search engine optimization were (64.2%) respectively, pay per click marketing (62.5%) TV and Billboard (59.2%) and SMS and radio marketing (88.3%). The result also showed that challenges of digital marketing were lack of trained digital marketing personnel, inadequate digital marketing knowledge and poor application of digital marketing. Finally the result showed that digital marketing had a positive effect on financial performance, as 81.7% of respondents indicated that digital marketing improved their financial performance, while 18.3% showed digital marketing had no effect on their financial performance. In conclusion, the study showed that digital marketing has a positive effect on financial performance.
In recent years, information and communication technology has immensely change consumer behavior, and this has greatly impacted on the way businesses communicate with their customers. The speedy advancement in technology has necessitated business organizations to embrace the changing trends by incorporating information technology in their activities. Based Hull (2004) ideas, the innovations on the Internet have transformed the way people communicate, search information and carryout business operation. As a result, business organizations have been left with no option other than embracing the new trends by integrating new information technologies in their systems. In this regard, digital marketing has not only become an effective marketing strategy, but also necessary in the light of the changing consumer behaviour towards digitization and online experiences.
Table of Contents
- CHAPTER ONE: INTRODUCTION
- 1.1 Background to the Study
- 1.2 Statement of Problem
- 1.3 Research Questions
- 1.4 Objectives of the Study
- 1.5 Hypotheses of the Study
- 1.6 Scope of the Study
- 1.7 Significance of the Study
- 1.8 Operational Definition of Terms
- CHAPTER TWO: LITERATURE REVIEW
- 2.1 Conceptual Review
- 2.1.1 Traditional and Digital Marketing
- 2.1.2 General Approach to Digital Marketing
- 2.1.3 Merits of Digital Marketing
- 2.1.4 Demerits of Digital Marketing
- 2.1.5 Small Businesses
- 2.1.6 Marketing Opportunities of Small Businesses
- 2.1.7 Marketing Challenges of Small Businesses
- 2.1.8 Integrated Marketing Communication (IMC)
- 2.1.9 Digital Marketing and Social Media Utilization in SMEs
- 2.1.9.1 Digital Marketing Utilization
- 2.1.11 Marketing Capabilities
- 2.1.12 Marketing Strategy
- 2.1.13 Factors Influencing the Use of Digital Marketing
- 2.1.14 Challenges of Digital Marketing
- 2.2 Theoretical Review
- 2.2.1 Segments of One Theory
- 2.2.2 Generational Theory
- 2.2.3 Network Theory
- 2.2.4 Customer-Led Positioning Theory
- 2.2.5 Collective Intelligence
- 2.3 Empirical Review
- 2.3.1 Studies from Developed Countries
- 2.3.2 Studies from Developing Countries
- 2.4 Summary and Gap in Literature
- CHAPTER THREE: METHODOLOGY
- 3.1 Area of Study
- 3.2 Research Design
- 3.3 Population, Sample Size and Sampling Techniques
- 3.4 Measurement of Variables
- 3.5 Research Instrument
- 3.6 Validation and Reliability of Research Instrument
- 3.7 Data Analysis Techniques
- CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
- 4.1 Data Presentation
- 4.1.1 Business Profile (Demographic Characteristics)
- 4.1.2 Objective 1: To determine the extent of use of Digital Marketing in firm
- 4.1.3 Objective 2: To examine the challenges associated with of digital marketing and corresponding mitigating strategies
- 4.1.4 Objective 3: To assess the effect digital marketing on firms financial performance
- 4.2 Analysis and Interpretation
- 4.2.1 Hypothesis testing 1
- 4.2.4 Hypothesis testing 2
- CHAPTER FIVE
Objectives and Key Themes
This research project aims to investigate the effect of digital marketing on the financial performance of firms. It explores the extent of digital marketing utilization by firms, examines associated challenges and mitigating strategies, and assesses the impact of digital marketing on financial performance.
- The impact of digital marketing strategies on firm profitability.
- Challenges faced by firms in implementing effective digital marketing campaigns.
- The relationship between digital marketing investment and financial returns.
- Comparative analysis of traditional and digital marketing approaches.
- The role of digital marketing in enhancing firm competitiveness.
Chapter Summaries
CHAPTER ONE: INTRODUCTION: This chapter sets the stage for the research, providing background information on the increasing importance of digital marketing in today's business environment. It clearly defines the research problem, focusing on the need to understand the complex relationship between digital marketing strategies and a firm's financial outcomes. The chapter articulates the research questions, objectives, and hypotheses, setting the framework for the subsequent investigation. It also outlines the scope of the study, specifying the boundaries of the research, and highlights the significance of the study in contributing to the understanding of digital marketing's impact on firm performance. Finally, it provides operational definitions of key terms used throughout the research.
CHAPTER TWO: LITERATURE REVIEW: This chapter provides a comprehensive review of existing literature relevant to the research topic. It explores the conceptual underpinnings of both traditional and digital marketing, examining the advantages and disadvantages of each approach. The review delves into the specific marketing challenges and opportunities facing small businesses, providing context for the study's focus on firms within this sector. It also analyzes relevant theoretical frameworks, such as network theory and customer-led positioning theory, to provide a theoretical basis for understanding the relationships under investigation. Finally, the chapter synthesizes empirical findings from both developed and developing countries to identify gaps in existing research and highlight the unique contribution of this study.
CHAPTER THREE: METHODOLOGY: This chapter meticulously outlines the research methodology employed to achieve the study's objectives. It clearly specifies the research design, the target population, sampling techniques used to select a representative sample, and the methods utilized for measuring variables relevant to the research. The chapter describes the research instruments used for data collection, including the process of validation and reliability testing to ensure the accuracy and consistency of the data obtained. It also details the data analysis techniques to be employed, providing a comprehensive overview of the methodological approach taken in the study.
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION: This chapter presents the findings of the research in a clear and organized manner. It begins with the presentation of descriptive statistics, providing insights into the demographic characteristics of the businesses included in the study. Then, it systematically presents the results related to each research objective, using tables and graphs to effectively communicate complex data. The analysis section goes beyond simply reporting the data, offering insightful interpretations and linking the findings back to the research questions and hypotheses. The chapter utilizes appropriate statistical tests to rigorously evaluate the hypotheses, providing evidence-based conclusions on the relationship between digital marketing and firm financial performance.
Keywords
Digital marketing, financial performance, small businesses, marketing strategies, profitability, challenges, competitive advantage, empirical research, financial returns, traditional marketing.
Frequently Asked Questions: Comprehensive Language Preview
What is this document?
This document is a comprehensive language preview of a research project investigating the effect of digital marketing on the financial performance of firms. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main objectives of the research?
The research aims to investigate the effect of digital marketing on the financial performance of firms. Specifically, it explores the extent of digital marketing utilization, examines associated challenges and mitigating strategies, and assesses the impact on financial performance.
What are the key themes explored in the research?
Key themes include the impact of digital marketing strategies on firm profitability, challenges faced in implementing effective campaigns, the relationship between digital marketing investment and financial returns, a comparative analysis of traditional and digital marketing, and the role of digital marketing in enhancing firm competitiveness.
What topics are covered in Chapter One: Introduction?
Chapter One sets the stage, providing background information on digital marketing's importance. It defines the research problem, articulates research questions, objectives, and hypotheses, outlines the scope, highlights the study's significance, and provides operational definitions of key terms.
What does Chapter Two: Literature Review cover?
Chapter Two comprehensively reviews existing literature on traditional and digital marketing, analyzing their advantages and disadvantages. It focuses on marketing challenges and opportunities for small businesses, explores relevant theoretical frameworks (network theory, customer-led positioning theory), and synthesizes empirical findings from developed and developing countries to identify research gaps.
What methodology is used in Chapter Three: Methodology?
Chapter Three details the research methodology, including the research design, target population, sampling techniques, variable measurement methods, research instruments (and their validation/reliability), and data analysis techniques.
What is presented in Chapter Four: Data Presentation, Analysis, and Interpretation?
Chapter Four presents research findings using descriptive statistics and data visualizations. It systematically presents results related to each research objective, offers insightful interpretations, links findings to research questions and hypotheses, and uses statistical tests to evaluate hypotheses and draw conclusions on the relationship between digital marketing and firm financial performance.
What keywords are associated with this research?
Keywords include digital marketing, financial performance, small businesses, marketing strategies, profitability, challenges, competitive advantage, empirical research, financial returns, and traditional marketing.
What types of firms are the focus of this research?
The research focuses on small businesses.
What is the overall contribution of this research?
This research contributes to the understanding of the complex relationship between digital marketing strategies and a firm's financial outcomes, particularly within the context of small businesses. It aims to provide evidence-based insights into effective digital marketing practices and strategies to overcome associated challenges.
- Arbeit zitieren
- Lukmon Fasasi (Autor:in), 2017, Digital Marketing. Which Effect Does It Have on the Financial Performance of Firms?, München, GRIN Verlag, https://www.grin.com/document/490222
