THE GOLD RUSH TO DIGITAL MARKETING: PROSPECTS OF BULDING BRAND AWARENESS OVERSEAS How Can SMEs Effectively Integrate Digital Marketing into Their Business Model in order to raise brand awareness overseas? INTRODUCTION 1 RESEARCH PURPOSE 2 TABLE OF CONTENT METHODOLOGY 3 DATA ANALYSIS AND DISCUSION 4 LIMITATIONS OF RESEARCH 5 INTRODUCTION • Digital Marketing is defined as: “an adaptive, technology-enabled process by which firms collaborate with customers and partners to jointly create, communicate, deliver, and sustain value for all stakeholders”. Digital marketing is simply the advertising through digital channels. • The main aim of this research article was to assess how digital marketing tactics can impact a company and examine how small and medium sized enterprises “ SMEs” can use digital media to enhance brand awareness outside their domestic market. Moreover, despite the increases in the adaptation of digital marketing, little empirical research has been conducted on how best SMEs can exploit the full potential of digital technologies, therefore, this article was also aimed at bridging these gaps in research. The Digital Revolution The number of Internet users globally reached 4.021 billion worldwide (Kemp, 2018), that means more than half of the world’s population is now conneted to the internet. The number monthly active users on Facebook alone, the biggest social network, is 2.27 billion (Statista, 2019). Therfore, it is imperative for businesses to tap into this vast network of users to insure their products are well marketed while maintaining a competitve edge. RESEARCH PURPOSE • The study aimed at constructing insights on how to leverage digital media and tools to raise brand awareness and drive sales while bridging the knowledge gap, brought about by the lack of proper empirical research on how best SMEs can effectively use digital marketing tools, by investigating consumer online habits and buyer behavior in order provide recommendations to SMEs. • Through the research question; How a local SME can use digital media to raise brand awareness beyond local boundaries? Coherent objectives were set to identify the online behavior of consumers, identify which digital media can have the greatest impact on consumers and produce the highest positive effect on consumer engagement, to determine how a company can engage consumers through combinations of selected digital marketing tools; and identify the needs of an SME as it seeks to increase brand awareness and reach wider audiences. METHODOLOGY Research strategy • Based on the nature of the research “ it required the gathering of opinions and facts”, it was determined that the most appropriate Methodology for this research was The Survey Methodology as it would contribute to a generalizable overview of consumers’ online behavior and habits. A well established Cyprus SME was chosen for this study. The company was operating in the service sector, the research sought to measure the impact of digital marketing in this sector as the service sector contributes to most of the gross domestic product in developed countries (Christofi, Leonidou, Vrontis,Kitchen, & Papasolomou, 2015) Questionnaire development • The survey consisted of four question groups, which contained sets of questions related to the outlined objectives. Each set of questions had it’s own variables that vary with respondent. • The first group of questions sought to identify the demographic profile of gender, age and nationality of the targeted recipients of the survey. The results would ultimately help identify whether these variables influence the respondents answers, hence, revealing differences in opinions with different people. • The second set or group of questions contained questions that would give insights into the online behavior and habits of the company’s customers. • The third group of questions was aimed at identifying the attitudes of customers towards online advertising. • The last group of questions was aimed identifying methods in which consumers want to interact with companies. Sample size • Initially 300 questionnaires were sent via digital means, aiming for participation at an international scale. The recipients were the company’s customers and partners in nine countries, namely: Cyprus, Greece, Australia, Russia, England, Romania, German, Bulgaria and Ukraine. • From the 300 questionnaires sent, 200 questionnaires made the final usable sample. And from the 200 recipients, 65.5% were women (n=125). The sample was obtained from people of different ages grouped in four categories. Ages 18-25 comprised of 20% of the population, ages 26-30 and 31-40 comprised of 37.5% of the population each (total=75%) and lastly ages 40-50 comprise of 5% of the total population. SAMPLE SIZE FROM DIFFERENT NATIONALITIES UKRANIE ROMANIA 5% 5 2.5% 2,5 2,5 5 CYPRUS ENGLAND 5% RUSSIA 7.5% 52.5% 7,5 7,5 BULGARIA 52,5 AUSTRALIA 7.5 2.5% 15 GERMAN GREECE 15% 2,5 2.5% DATA ANALYSIS AND DISCUSIONS Internet usage, patterns and habits • The findings review that 97% of the respondents surf the internet every day. With 67% using the internet all day and 30% several times a day. It was found that 67% of the respondents used smart phones, while the 33% and 23% indicated they use more than one device. 7% surfed the internet using computer and 3% using a tablet. • mobile instant messaging emerged, as the favorite activity for both sexes, followed by information finding and reading news. However, it was found that men hesitated more to online payments, since non of them chose any of the purchase related activities. • Lastly, it is noteworthy to mention that the greatest proportion of respondents between 18-25 appeared to favor online videos. Favorability to videos decreased with the advance in age. Internet usage, patterns and habits • Based on these findings, companies should not only invest in a mobile presence but also optimize the entire organization for a mobile centric world in order to build better connections with their audience. • Furthermore, since some of the findings revealed that none of the male respondents opted for any purchase related- activities (pay bills, purchasing products), It is essential that a digital campaign should exhibit brand competence and sincerity so that consumers will perceive the company as credible and trustworthy, having their best interest at heart. Usage of Social media platforms and content making • The data collected reviewed that 73% of the respondents had multiple social media profiles and 5% of the respondents didn’t have any social account at all. In terms of popularity, Facebook was leading the pack (33%), followed by Instagram (22%), LinkedIn (18%), YouTube(17%), and Twitter (8%). Not only was Facebook leading the pack, it had the highest proportion of respondent engagement (62%), confirming the results of prior researches (Kemp, 2018). • Therefore, it can be advised that companies use the appropriate channel or platform “the channel with the highest engagement and the appropriate content for the target audience” of advertising to be very effective. Coca-Cola for example created a website (Coca-Cola Journey, 2016). But people were not interested in viewing the site despite the fact they liked the products of the brand. They were not interested in the content (Holt, 2016). Perception of online advertising • Data was collected on how the respondents viewed online advertising, showing the degree of influence on their buyer decision. According to the data collected, it was found that 27% of respondents trusted recommendations from friends and family (word of mouth). 22% indicated advertising is an important factor, it influences their decision, while 20% of respondent stated they consider their personal preferences. Surprisingly, the endorsement of celebrities had an opposite effect on the influence of consumer’s purchase decisions as none of the participants selected the option “seeing famous people use the product or service”. • Gender-based tendencies were prevalent, 35% of men would agree to purchase a product if given an expert advice on it while 7% of women would be willing to purchase a product given expert advice. Therefore, It was advised that companies should segment their market based on age, gender and geographical location, depending on the market’s unique demographic characteristics. Company-customer interaction • The way the respondents want to interact, receive regular updates and promotions from companies, was also investigated. The reviews showed that most of the respondents preferred to be followed on social media, followed by the option “subscribe to receive email updates” and “receive updates via text messages”. • The respondents were also asked seven possible website characteristics they would like to see in a website and they were also asked to indicate the importance of each characteristic. Functionality emerged as the most important characteristic, with 31% total respondents choosing this option. Quality content was considered the second most critical characteristic, with 18% respondents choosing this option, while simplicity trailed in the third place, with 17 percent. Figure 1.0 summarizes the rest of the characteristics. Figure 1.0 Distribution of Sample by the Reasons that Drive the Company’s Customers Continue Visiting a Website (percent) Source: the authors Company-customer interaction • It had been investigated, for companies seeking to reach their customers through apps, several statistics revealed thousands of apps are not download, despite wide use of smartphones. And some studies show the average user has thirty apps running on their device but they only use three or four apps on a regular basis (Ingram, 2016). • According to the findings, roughly 13% of the respondents would want to download an app for updates. Furthermore, the findings show social networking apps were the most preferred by 28% of the respondents, while 17% and 14% of respondents chose music and shopping apps respectively. • The finds also showed the main parameters that would trigger the participants into downloading an app. It was discovered that 44% of people downloaded an app because it was free, 17% because the app met a certain need or interest and 16% of the respondents downloaded an because of word of mouth recommendation. Figure 2.o and3.0 summarize the main app categories preferred and the main reasons that would trigger the participants into downloading an app respectively. • Figure 2.0 Distribution of Sample by Most Preferred Mobile App Categories (percent) • • Source: The authors • Figure 3.0 Distribution of Sample by Factors that Trigger Them to Download an App (percent) • Source: The authors Final data analysis and discussions/recommendations • According data showed in the figures, it would be advisable for companies to invest into having a strong social media presence than developing of apps as they is a high chance they will be under utilized. • companies should also segment their markets based on age and gender, not only by geographical location. • The findings also indicate that word-of-mouth has the biggest influence on consumers’ purchasing decisions, followed by online advertising. With regards to online advertising, a company must create customized online ad campaigns since there are differences in how the sexes behave as shoppers, and the impact of advertising repetition varies based on demographic variables. • Lastly, companies should not only invest in a mobile presence but also optimize the entire organization for a mobile centric world in order to build better connections with their audience. Moreover, their digital marketing campaign must be centered around the most prevalent activities their customers engage themselves in and be based on brand competence and sincerity so that consumers will perceive the company is credible and trustworthy. LIMITATIONS • The study only gave a onetime snap shot of the company’s customer’s online preferences and behaviors. Therefore, the results could change overtime as consumer online behavior and habits change over time not forgetting digital marketing is constantly evolving. • Secondly, the survey studied only a specific number of people who are customers of a specific company. This greatly limited the research and if the research was based on a wider range of consumers, preferably from international markets and in different industries, the research would yield to a better understanding of various markets and their unique buyer behavior. • The results revealed that there are observable differences in how male/female behave. However, the study didn’t go in depth and further research into gender differentials is needed in order to help companies and marketers customize their marketing efforts so as to entice both male and female audiences. • ESTABLISHED IN 1999, IN HANGZHOU, CHINA • OWNED BY JACK MA • PRODUCT LINES - Consumer electronics, -apparel, vehicles & accessories, sports and entertainment, machinery -Beauty & personal care, furniture, jewel, luggage ALIBABA DIGITAL STRATEGY • MISSION: make doing business everywhere, enable them to transform the way they market, sell, operate and improve their efficiency easily • TARGET AUDIENCE: It is a business to business website, catering for the needs of suppliers and buyers • COMPETITIVE ADDVANTAGE: Its competitive advantage is the network effect. It has command over more than half of the e-commerce market share. ALIBABA DIGITAL STRATEGY SOCIAL MEDIA • FACEBOOK: the company has a Facebook page with over 19 million followers, they use such a large platform to disseminate information about their company and online trade shows events in order to create brand awareness. social media • TWITTER: the company also has a twitter handle, which they use to frequently tweet to stay engaged with its customers and promoting new products on arrival. social media • INSTAGRAM: Alibaba group has an official Instagram account of 1.5 million followers which it utilises to inform their customers about changes and upgrades in their transactional methods, in its digital marketing strategies, it also promotes its brands by extensively promoting them with the heavy use of promotional Instagram ads. social media • LINKEDIN : Alibaba in its digital marketing strategies has a LinkedIn account with over 500 thousand followers all this enabling for a better engagement and potential increase in its audience target. social media • YouTube: to reach its preferred target, Alibaba benefits from youtube services, as it is used to keep the audience informed and clarified about the services offered. INTERNET MARKETING • Alibaba uses internet marketing to educate its customers through Search Engine Optimisation (SEO), emails, and content creation with promotions. For a big company like Alibaba, internet marketing is affordable and convenient for targeting the right type of audience. • Use of paid ads on google as a digital strategy is also used. INTERNET MARKETING INTERNET MARKETING • SEO: Alibaba uses search engines optimisation to help get countless visits to their website. • GOOGE ADWORDS: The use of popular words will be used to help attract customers to their website. Google Paid Ads, AdWords would consist of their offered product line. • GOOGLE ANALYTICS: these will be used to figure out the demographic and the amount of viewers that visit the website. INTERNET MARKETING REFERENCE Makrides, Vrontis and Christofi (2019) ‘The Gold Rush of Digital Marketing: Assessing Prospects of Building Brand Awareness Overseas’, Business Perspectives and Research, vol 8(1) 4–20 available on http://journals.sagepub.com/doi/full/10.1177/2278533719860016 accessed on 15th june, 2021. PRESENTED BY; THANK YOU!
