Sunday, September 14, 2014

E-Marketing Effectiveness and Small Business Management

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Small business owners sometimes wonder whether e-marketing can have a significant impact on their sales. Business is about positive return on activities and e-marketing is one tool some small businesses don’t yet understand.  A study by Eid & El-Gohary (2013) discusses how there is still a lack of systematic empirical evidence regarding online marketing but by analyzing budgets, tools, pre-sales activities, and after-sales activities, performance and effectiveness of marketing in 114 small businesses they can get a better perspective of e-marketing activities. 

Small business maintain similar characteristics that puts them within the same broad category. Small business are independently owned, managed by the owners, financially connected to the owners, and most of the important decisions are made by the owners. The use of decision e-marketing is not that familiar among many small business owners and they will need a personal investment of time, effort and resources to make it work. 

When small businesses are successful in their e-marketing practices they can find an increase in profits, market share, brand equity and productivity. Their business moves to a higher level of customer attraction and retention that helps them grow their opportunities both personally and financially.  Marketing costs can be reduced for businesses that successfully find a mix that works for them. 

It was found that the EM budget, pre-sales marketing and after-sales marketing explain 71.4% of e-marketing performance 76.3% of marketing effectiveness. E-Marketing can have an impact on successful sales generation. There is a net positive result of marketing and sales returns in the virtual world. The use of specific skills didn’t seem to be as important as engaging in the overall process of online marketing. Companies that begin move, study, explore and implement online marketing campaigns regularly find their bottom lines improving. 

To people who have run their mom and pop shops for years advertising in their local newspapers, building displays, and attracting customers with sales the transition to online can be difficult. They need not give up what works in traditional approaches to enhance those messages with online components. It wouldn’t be recommended anyway. Marketing is about finding what works and seeing how the different methods of marketing mix together to create effectiveness. 

Eid, R. & El-Gohary, H. (2013). The impact of e-marketing use on small business enterprises’ marketing success. Service Industries Journal, 33 (1).

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