Impact Of Digital Marketing On Sales Output In The Manufacturing Sector
The study examined impact of digital marketing on sales output in the manufacturing sector Lagos. The study succinctly explored the effect of digital marketing on sales improvement. 150 small and medium scale enterprises (SMEs) was purposively selected in in Lagos Metropolis.
The study made use of primary data via the administration of a questionnaire to generate data from the respondents. The data were analyzed using the descriptive statistical analysis and the Pearson correlation analysis.
The results revealed that a positive and significant relationship exists between online advertisement and sales improvement (r=0.772; p<0.05). Also, a positive and significant relationship exists between E-Mail Marketing and Sales Improvement (r=.896; p<0.05). Furthermore, a positive and significant relationship exist between Blog Marketing and Sales Improvement (r=0.772; p<0.05). And Lastly, a positive and significant relationship exists between Search Engine Marketing and sales Improvement (r=.896; p<0.05).
The study suggests that digital marketing should be employed by every SMES, to ensure that sales improvement is guaranteed. this will go a long way in reducing expenses to the barest minimum and ensuring effectiveness in it going concern.
1.1 Background of the Study
Digital marketing is the umbrella concept uniting all marketing activities conducted in the online environment (Kingsnorth, 2016, p. 7). The growing global use of the Internet and social media suggests that companies will progressively rely on digital marketing instruments in the future to contact their current and prospective consumers that are spending more time online and less time using traditional marketing channels such as TV or radio (ATKearney, 2017, p. 1). That said, this form of marketing has substantial differences and may require the adaptation of traditional marketing approaches to avoid misunderstandings and inefficiencies (Phillips et al., 2016, p. 393). The aim of this article is to analyse the importance of digital marketing, its key differences from traditional marketing and its current and future perspectives.
Globalization and technological advancement remain two major forces altering the conventional ways of promoting businesses both in developing and developed countries. With technological progress, Web 2.0 was birthed and since its advent, businesses have been employing innovative strategies on platforms that emanate from it to further their businesses. Also, the increasing numbers of smart phone users and growing penetration of internet services significantly contribute to the growth of online communities where businesses can engage their customers (Otugo et al, 2015)
The concept of digital marketing is rapidly emerging which is aggressively adopted internationally for marketing success. In today’s time, social media channels such as Face book, Twitter, Google and other social media firms have successfully transformed the attitudes and perceptions of consumers and in the end helped revolutionized many businesses. This paper seeks to examine the importance of digital marketing as a foreign exchange earner to Nigeria.
The out-burst in information and communication technology in developing economy like Nigeria, have invented new ways of doing business as it transcend through all sectors of the economy. The explosion in internet connectivity has changed and is still changing the face of marketing in Nigeria. The way customers interact with brands have practically changed as a result of proliferation of communication devices such as smart phones, websites, e-mail, social network sites as occasioned by technology Companies and Business Owners have moved away from slow and stressful analogue operations to faster, more convenient and stress-free digital operations so as to be visible and connect with customers who are largely dwelling in the digital world. This is not optional but imperative to gain the mind-set of the customers and ensure they have a seamless experience. Digital marketing has taken marketing beyond the arm-chair, brick and mortar operations to a realm where customers make transactions from the comfort of their homes by a push of the button. The diffusion of technology have made the internet an accessible channel through which marketing get to the customers regardless of the limits of time and geographical location as well as create innovative products and services and more market opportunities for both companies and customers. Businesses now broadcast their offerings to potential customers across the globe through digital marketing channels, and have the ability to analyze user interactions with their website, affording an unprecedented understanding of the needs and wants of their audience .
Cunningham (2010) notes that e-business through digital marketing is the glue that keeps employees, customers, and partners communicating and informed. It involves the use of self-service applications that delivers relevant information to those that need it, leading to tremendous values in business transactions. The development on the internet of transaction tools which affected a greater number of phases compared with traditional transaction systems, have impacted tremendously on the procurement and selling life cycles (Cunningham, 2010). This shows that both digital marketing and E-commerce are subsets of E-business, which means that E-business is the umbrella where the duo hides.
Email Marketing is one of the easiest, most effective and affordable ways to grow any business. This is because it keeps the customers and prospects coming back, in terms of more product demand and feedback on products already bought. Thus the business owner or entrepreneur can make amends as at when due and satisfy its customers more. By using attractive, professional-looking email communications to stay in regular touch with customers and prospects, you build strong relationships. Email is the most personal advertising medium amongst all other forms of digital marketing tools in history (Babalola & Babalola, 2013).
1.2 Statement of Problem
Digital media is so all-encompassing that consumers have access to information any time and any place they want it. In ancient period only specific information were available regarding on business. Digital media is fast and widely growing source of information, entertainment, news, shopping and social interaction. Consumers have access to wide range of information where they are not only informed to what their companies say about their brands, but also what the medias, friends, relatives, peers, etc., are saying. Over the ages it have been proved that consumers trust them more than companies. Consumers want brands which they can trust, companies which are familiar with, interaction that are personalized and relevant, and offer customized to their needs and preferences in a convenient way. Most of the consumers use several digital channels and a variety of devices that use different protocols, specifications and interfaces – and they interact with those devices in different ways and for different purposes.
Digital Medias are relatively cheap, compared with traditional media, affordable for most new and small size business as well. Consumers leave behind a huge trail of data in digital channels. It is very difficult to handle and operate such huge bank of data and execute them in operation. This study will try to analyze the impact of digital marketing and consumer’s behavioral response towards it.
At the same time, another key success factor in this cut-throat environment is the development of effective strategies for influence and communication on Web 2.0 and the social networks. Unfortunately, many companies are clearly still in denial and failing to adopt pro-active strategies for an Internet presence. Some earmark a percentage of their communications investment for the Internet, but with no overall idea of what the medium can offer them, or of how a web presence must be integrated with other brand communications. Too many companies are still trying to control public network conversations on their brands, and too few are dedicating.
1.3 Objectives of the Study
The main objective of the study is to examine impact of digital marketing on sales output in the manufacturing sector Lagos Metropolis.
The sub-objectives of the study are to:
- Explore the relationship between the forms of digital marketing (email, search engine, online advertising and blog) and sales improvement in Manufacturing sector in Lagos metropolis.
- Examine the effects of the implementation of digital marketing on the performance of Manufacturing sector in Lagos.
1.4 Research Questions
- What is the impact of digital marketing on sales growth of Manufacturing sector in Nigeria?
- What are the challenges of digital marketing experienced by Manufacturing sector in Lagos, Nigeria.
1.5 Research Hypothesis
H1: There is no correlation between digital marketing and sales improvement.
1.6 Significance of the Study
Manufacturing sector play a vital role in the economy of Lagos State in particular and to the Nigerian economy in entirety. Manufacturing sector contribute to the gross domestic product of the state, and also serve as the platform of minimizing the rates of unemployment in the land, as it allows individuals to be job owners and creators.
Several studies conducted in Nigeria and Diaspora has assessed the determinants of sales improvement in the context of performance. Studies done by Rondon (2007) and Bitton (2011) showed that the major variables focused on were environmental factors, size of the company, pricing policy, competition, firm’s marketing strategy, field salesperson characteristics, territory/location, and size of customers. Furthermore, studies carried out by Babalola and Babalola (2013); Njau and Karugu (2014) and Agwu and Murray (2014) examined the impact of digital or electronic marketing adoption on the overall performance of Manufacturing sector. In the light of this, the study was necessitated by scanty empirical studies on the influence of digital marketing on sales improvement in Manufacturing sector particularly in Lagos metropolis.
It is highly believed that this study through its findings and policy recommendations would be useful to micro, small and medium scale enterprises, investors, business analysts, financial institutions, non-financial institutions, stakeholders in the corporate world and government through its agencies such as ministry of trade, industry, investment and commerce. It will also be beneficial to future researchers that intend carrying out studies in this regard.
1.7 Scope and Limitations of the Study
The study examined digital marketing as a key driver of sales improvement in Manufacturing sector with strong emphasis in Lagos metropolis. The limitations encountered during the course of carrying out the study include control limitation, time limitation and financial limitation.
Control Limitation- The researcher was limited to carrying out the study in Lagos metropolis based on the directives of the project supervisor.
Time Limitation- The time allocated to the researcher to carrying out this study was relatively short, given other academic commitments.
Financial Limitation- As a result of paucity of fund, the researcher was unable to sample Manufacturing sector across the length and breadth of the metropolis.
Inspite of these stated limitations, a robust, quality and fact-finding research was carried out.
1.8 Key Definition of Terms
It refers to the communication between a person (sales person) and his actual or prospective customers with the aim of selling ones product or service to them.
It refers to the use of electronic devices and tools to create to communicate to actual or prospective customers of a firm with the aim of selling ones product or service to them.
The exchange of a commodity or money as the price of a good and services.
This refers to a significant increase in the level of firm’s sales.
1.9 Organizations of the Study
The chapter one consist of the introductory part of the study which includes the study background, the statement of the research problem, the study objective and scope of the study.
The second chapter is a critical review of other literatures relevant to the study and its objectives including the theoretical framework for the study. While the third chapter is methods of data collection, sampling and data analysis used in conducting the study. The fourth chapter centres around the research findings including an analysis of how it relates to previous findings. The fifth chapter consists of the summary of findings, conclusion and recommendations base on the study objectives.
Summary, Conclusion and Recommendations
Marketing in an organization helps to create awareness of products and services by a business. One of the main reason companies create this awareness is to increase sales for both the short run and long run. Conventional marketing has been used by companies for many years and with the growth of technology, digital marketing channels have become greatly used by companies. As large companies have been able to adapt with the technological changes in marketing, the extent of adoption and impact of digital marketing in small and medium enterprises is not yet certain. The study therefore sought to determine the effect of digital marketing techniques on sales growth of Manufacturing sector, with the scope of the study being Lagos, Nigeria. The study also set to find out the challenges that Manufacturing sector encounter which hinder their digital marketing adoption.
With the objective, the study analysed theories relevant to the study and conducted a literature review of similar studies. The digital marketing techniques that were used to operationalize digital marketing were email marketing, mobile marketing, social media marketing, search engine optimization, pay-per-click marketing, and online marketing. These techniques were used to assess the extent to which digital marketing affects Manufacturing sector’ sales growth in Lagos, Nigeria. The study conducted a descriptive cross-sectional research design by analysing different Manufacturing sector in Lagos, Nigeria at the same time. The target population size consisted of 699 small and medium enterprises in Lagos, of which the sample size were 255 Manufacturing sector which were randomly selected. Primary data used was used for analysis purpose and was collected using a structured questionnaire. The data was analysed using descriptive and univariate techniques which were Kruskal-Wallis test and Pearson’s correlation test.
From the data analysis, it was found that email marketing had an impact on Manufacturing sector sales growth to a great extent. Mobile marketing as a digital marketing technique had an effect on Manufacturing sector’ sales growth to a moderate extent. The findings also indicated social media marketing to have an effect on Manufacturing sector’ sales growth to a great extent. Search engine optimization, pay-per-click, and online marketing all had an effect on Manufacturing sector’ sales growth to a moderate extent. From the study’s second objective, the study findings indicated that lack of digital media knowledge was the greatest challenge for Manufacturing sector in the adoption of digital marketing. This was followed by lack of suitable digital marketing techniques which was also a challenge experienced by Manufacturing sector in the adoption of digital marketing. The third challenge experienced by Manufacturing sector in the adoption of digital marketing was lack of finances, followed by the lack of time for planning and implementation.
From the study findings, conclusions were made in regards to digital marketing adoption by Manufacturing sector and its effect on sales growth. From the study results, it can be concluded that digital marketing has a positive effect on Manufacturing sector sales growth in Lagos, Nigeria. With regards to email marketing, the study indicated that it is used by Manufacturing sector to a great extent and the effect on sales was significant. The study therefore concludes that email marketing is important and should be used more by Manufacturing sector to improve their sales. More Manufacturing sector should start using personalized email which would be cheaper compared to niche marketing using traditional media. The study findings also indicated that mobile marketing is used to a little extent by Manufacturing sector and had a moderate effect on sales and the study concluded that it has not achieved greater sales for Manufacturing sector as would be expected.
The findings on social media marketing by Manufacturing sector indicated that it is significant factor to Manufacturing sector’ sales growth that has been used to a great extent, and it has had a positive effect on sales to a great extent. The study therefore concluded that social media marketing technique is effective to Manufacturing sector in Lagos as a means of marketing and helps to grow sales. Search engine optimization (SEO) as a digital marketing technique was found to be a significant factor on Manufacturing sector’ sales growth and had an effect on the sales to a moderate extent. The study therefore concluded that SEO as a digital marketing technique is important to sales growth even though its effect is moderate.
The study findings with regards to pay-per-click as a digital marketing tool indicated that it was significant on Manufacturing sector sales with a moderate extent. The study findings led to the conclusion that pay-per-click is significant to Manufacturing sector’ sales growth but to a moderate extent. The last digital technique to be analysed as a digital marketing tool was online marketing whose results indicated that it was significant on Manufacturing sector sales but also to a moderate extent. The study findings led to the conclusion that online marketing is significant to Manufacturing sector’ sales growth but to a moderate extent.
From the research findings and conclusions, the study made recommendations on the way forward on digital marketing adoption by Manufacturing sector. The first recommendation is that there should be proper sensitization and training to Manufacturing sector on available digital marketing options and how it can be done. The government and institutions such as KEPSA should come up with programs to help grow Manufacturing sector which would help the economy grow.
From the study findings, one of the recommendations for further research is of more research should be done for other counties outside Lagos as this would provide comparison and reinforcement or disapproval of this study’s findings with regards to digital marketing. The organization should also look at how digital marketing affect other aspects of a business such as brand loyalty and customer relationship management since the organization is more than sales and profits. Also, other factors that affect sales growth and profitability of Manufacturing sector should also be analysed since it is known that sales are not affected only by marketing or digital marketing, but a combination of both internal and external factors to an organization. The government should also come up with favourable policies to digital marketing so as not to restrict them when they use them. Finally, other analytical techniques apart from that used by the study should be done by researchers to determine how digital marketing affect sales growth in an organization.
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Frequently Asked Questions
What is digital marketing and how does it affect your business?
Digital marketing has had a profound impact on the traditional ways of marketing. Digital marketing companies should have a firm grasp on the utilization of the digital universe which will maximize a brand’s impact and it’s brand awareness. The digital marketing world is a gateway for potential customers to feel like a part of the brand.
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Digitalisation in manufacturing can raise productivity and output and thereby exports, while digital platforms can provide better access to new markets through online sales channels and digital marketing.
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The pace of online is only expected to increase in 2019. The use of digital marketing for manufacturers is definitely in its growth stage. As the maturation of digital manufacturing marketing is becoming closer, digital is gaining a more mundane meaning in manufacturing and engineering.
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Digitization can help both with simple clarity but also with process enforcement. For example, specifying that every field in a form needs to be completed. While it’s not perfect, with digitization, you have levers you can pull to increase compliance. 4. Rapid iteration will become the norm
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Simply put, it’s the process of taking non-digital formats of information and turning them into digital formats. Mail into email, spreadsheets into Excel, typewriters into Google Docs, clay models into CAD files — the list goes on.
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Advances in networks and sensors, data availability and processing, and engineering and material technologies all hold considerable potential for expanding efficiency and productivity in the chemical industry. But digital transformation in chemicals also presents significant opportunities to increase innovation in products and solutions.
How will digitalization affect the chemical industry?
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How will digital change the chemical industry’s value chains?
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Is the digital transformation journey in process industries well under way?
The ARC Industry Forum proved that the digital transformation journey in process industries is well under way, but not without challenges. The process industries, particularly the oil and gas and chemical sectors, have unique challenges when compared to the discrete manufacturing sectors of industry.