ABSTRACT
This study was carried out on the impact of e-marketing on the performance of small and medium scale enterprises (SMEs) in Nigeria, using Jumia Lagos state hub as a case study. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of the staff of Jumia Nigeria. In determining the sample size, the researcher made use of the Taro Yamane formula to selected 133 respondents and all were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses were tested using Pearson correlation statistical tool SPSS v23. The result of the findings reveals e-marketing has impacted positively on Sales in Nigeria. It has made sales of goods and services easier than the traditional method of marketing. Therefore, the study recommends that Instagram, and our older customers follow promotions on Facebook, the design and overall message that Ambiance is sending needs to be interesting enough to influence their customers to visit the store.
CHAPTER ONE
INTRODUCTION
- Background of the study
Academic and managerial interest in E-marketing (EM) has been increasing in recent years. It is heralded by some as the new paradigm of marketing (see, e.g. Brodie, Winklhofer, Coviello, & Johnston, 2007; Eid, 2009; Eid & Trueman, 2004; Hotho & Champion, 2011; Wu, Mahajan, & Balasubramanian, 2003). The recent rush of publications in the area may give rise to the impression that EM can be applied in any context, yet there is little empirical evidence to support this. Meanwhile, as small business enterprises (SBEs) are considered to be the economic engine leading worldwide economic development, they have attracted substantial consideration from researchers, academics and practitioners in the last three decades. A great deal of this interest derives from the belief that innovation, especially in information technology (IT), is crucially dependent on the potential of entrepreneurial SBEs. However, the recent revolution in computer science, the Internet, IT, media and communications has changed the nature of business and marketing practices. A growing numbers of companies and enterprises use the Internet and other electronic tools to communicate with suppliers, business customers and end users of their products and services. New forms of marketing have presented an opportunity for small businesses to grow in a dramatic and dynamic way. There have been many studies and reports published in UK and overseas in the last few years on the Internet usage in business in general. This study is not another examination of the general usage of Internet in business, rather it builds and summarizes the extensive and valuable research already completed in these areas and extracts the essential themes and messages being expressed by most SMEs. The study aims to examine the perceived opportunities and benefits that Internet usage can offer to SMEs. Barnes et al., (2008) asserted that SMEs make significant contribution to most economies of the World, they are socially and economically important, since they represent 99 % of all enterprises in the EU and provide around 65 million jobs and contribute to entrepreneurship and innovation. SMEs have been shown to contribute significantly to country and regional economic growth, increased employment levels and locally relevant product and service. SMEs are very important to the UK economy; they accounted for 99% of all enterprises and provide over 59% of private sector employment (BERR, 2008). They are also the source of future growth and innovation. Barnes et al., (2008) argue that the advent of the digital economy has made the adoption and use of Internet a significant issue for most SMEs. Yet, many SMEs find themselves in a difficult situation. They may be too small to be able to employ a dedicated IT expert and lack the resources to buy consultancy advice. They often have limited experience in selecting, implementing and evaluating suggested IT solutions (Barnes et al., 2008). Barnes et al., (2008) noted that SMEs find themselves caught in a trap, lack of resources means that while there may be an aggregate demand for IT service and advice, individually, the varying nature of that demand makes it uneconomical for other firms to provide a service meeting that demand.
According to Bili and Raymond (2003), Small and Medium Business Enterprises (SMEs) are considered to represent the driving forces of sustainable local economic development throughout the world. They form the base of economies, stimulate private property and entrepreneurial capabilities which, due to their flexibility, can quickly adjust to market changes, generate employment, create diversified economic activity, and contribute to exports and trade.
Consequent upon this background, this research aims at examining the impact of e-marketing on the performance of SMEs in Nigeria with particular reference to Jumia Nigeria.
1.2 STATEMENT OF THE PROBLEM
Electronic marketing helps in changing business structure and increasing competitive advantage for businesses. Small and medium scale enterprises in Nigeria have adopted the new marketing innovation (Adekeye, 2007), but it seems that the effective utilization of the innovation is still low. According to Okongwu (2001), SMEs in Nigeria are yet to begin effective utilization of the marketing innovation that would ensure their growth and survival. Hence, Ongori (2011) stated that about 66% of the SMEs in Nigeria wind-up before their fifth year of operation because of lack of utilization of e-marketing applications. Olaoye (2010) also stated that 75% of SMEs fold up within sixth year of their operation. Nwachukwu (2010) blamed the low productivity and high mortality rate of SMEs to low access to market, poor information, poor information, weak business linkage and low level of e-marketing application usage, which has deprived the SMEs the access to engaging in the regional and global economic business. This situation has been of great concern to the government, citizenry, operators, practitioners and the organized private sector groups. It is evident that small business failure can result from either a lack of marketing, or poor marketing practice. The problem of this study therefore is to determine the extent of utilization of e-marketing applications by small and medium scale enterprises in South Eastern States of Nigeria
1.3 OBJECTIVE OF THE STUDY
The study has one main objective which is sub-divided into general and specific objective; the general objective is to examine the impact of e-marketing on the performance of small and medium scale enterprises with emphasis on Lagos state the specific objective are:
- To examine the effect of social media marketing on the performance of SMEs in Lagos state
- To Evaluate the effect of email marketing on the performance of SMEs in Lagos state
- To examine the impact of search engine optimization on the growth of SMEs
- To examine if there is any significant relationship between e-marketing and the performance of SMEs in Lagos state
- To proffer suggested solutions to the identified problem
1.4 RESEARCH QUESTIONS
The following research questions were formulated by the researcher to aid the completion of the study;
- Does social media marketing have any effect on the performance of SMEs in Lagos state?
- Is there any effect of email marketing on the performance of SMEs in Lagos state?
- Is there any impact of search engine optimization on the growth of SMEs in Lagos state?
- Is there any significant relationship between e-marketing and the performance of SMEs in Lagos state?
1.5 RESEARCH HYPOTHESES
The following research hypotheses were formulated by the researcher to aid the completion of the study
H0: There is no significant relationship between e-marketing and the performance of SMEs in Lagos state
H1: There is a significant relationship between e-marketing and the performance of SMEs in Lagos state
H0: Search engine optimization does not have any effect on the growth of SMEs in Lagos state
H2: Search engine optimization does have an effect on the growth of SMEs in Lagos state
1.6 SIGNIFICANCE OF THE STUDY
The findings of this study will be beneficial to organizations as well as firms especially on the need to focus generally on online/internet marketing, individual, group/team and organizational creativity. Also, the findings of this study will serve as a medium of awareness and enlightenment on the many environmental trends affecting organizations in recent years and proffer possible panacea to such problems as they rear heads. Not only this, but also, its findings will serve as platform mostly for professional manager, chief executives and all personnel involved in the staff training, administration and management on how to drive their staff for maximum human creativity and innovation. By so doing, several organizations would be better equipped to develop a repertoire of techniques (management control systems) to improving performances of average employees and at the same time improving the efficiency in management by enforcing cooperation of workers and standardization of work methods especially in creative organizations.
In conclusion, the outcome of this study will provide a contribution to the management of national culture as regards cultural individualism, collectivism, uncertainty avoidance, multiple cultural dimensions as may affect an individual employee’s preferences for, and reaction to management control systems in interactive ways; and it will be a systematic knowledge base for researchers.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study covers the impact of e-marketing on the performance of small and medium scale enterprise in Lagos state. But in the course of the study, there are some factors that limit the scope of the study;
AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.
- OPERATIONAL DEFINITION OF TERM
E-marketing
E-marketing is a process of planning and executing the conception, distribution, promotion, and pricing of products and services in a computerized, networked environment, such as the Internet and the World Wide Web, to facilitate exchanges and satisfy customer demands.
Small and medium scale enterprise
Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets or a number of employees below a certain threshold. Each country has its own definition of what constitutes a small and medium-sized enterprise
Medium-sized Enterprises: These are defined as enterprises which employ fewer than 250 persons, and whose annual turnover does not exceed N50 million or whose annual balance-sheet total does not exceed N43 million.
Small Enterprises : These are defined as enterprises which employ fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed N10 million.
Micro Enterprises : These are defined as enterprises which employ fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed N2 million.
