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A Literature Review on Digital Marketing Strategies and Its Impact on Online
Business Sellers During the COVID-19 Crisis
Article · January 2022
DOI: 10.98765/ajmesc.v2i01.43
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Asian Journal of Management Entrepreneurship and Social Sciene
ISSN: 2808 7399
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A Literature Review on Digital Marketing Strategies and Its
Impact on Online Business Sellers During the COVID-19 Crisis
Alreany C. Tabuena*1, Shiella Mae L. Necio2, Kyle Kirsten Macaspac3,
Maria Paula E. Bernardo4, Dominic I. Domingo5, Princess Daryl M. De
Leon6
1,2,3,4,5,6,Senior
High School Department, Arellano University, Juan Sumulong Campus,
Manila, Philippines
Coresponding author-email: * tabuena.alreany.shs.au@gmail.com
Abstract
The primary objective of this literature review is to examine the digital marketing
strategies used by online business sellers amidst the COVID-19 pandemic. In this case,
effective marketing enables the collection of data to understand more about the targeted
consumers, allowing advertising and other strategies to be more directed. In addition, this
was initiated to deeply understand how the digital marketing strategies of online business
sellers work. Based on the literature review, the researchers identified the following
themes: digitalization and digital marketing, digital and traditional modes of marketing,
social media as a digital marketing strategy, information technologies as marketing
tactics, e-commerce during the COVID-19 pandemic, understanding online, internet,
mobile, and digital marketing, preferences, and future research directions, and
implications. In conclusion, digital marketing has surpassed traditional marketing. These
elements affect the digital marketing skills gap. Internet ads are getting more widespread.
Firms' perceptions of the value of digital marketing can be classified. An integrated
approach is required to meet client needs using digital marketing channels. To succeed in
this new market, businesses must first understand their clients' lifestyles. Digital
marketing has evolved into an internet advertising platform for small business owners,
despite a lack of funds to update technology and harness internet development.
Advertising on social media is attracting the attention of digital marketers. Because of the
potential market share gains that social media marketing could give for internet
marketers, it is expected that social advertising spending will continue to grow in the
coming years.
Keywords: COVID-19, digital marketing, digitalization, online business, strategy
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1.
INTRODUCTION
Digitization is inescapable nowadays. Since everyone knows how to use social
media and everything is found online, a firm must have an online presence. A digital
marketing strategy helps a company better identify and address client needs (Lockett,
2018). On the other hand, traditional marketing strategies like print ads and huge
billboards don't always work (Noromor, 2020). Flood (2019) expects global retail will
grow 4.4% to $26.460 trillion by 2020. But it reduces retail and e-commerce
projections by 10% and 2%, respectively. In the Philippines, Malaysia, and Spain, ecommerce sales should climb 20% this year. In 2019, the coronavirus wreaked havoc in
all three. It's still difficult to think about digital marketing in 2020. Brands and digital
agencies must collaborate, not compete. Digital ad spending is rising (Jazbec, 2020). The
Philippines has significant e-commerce potential since young Filipinos purchase online.
By 2025, e-commerce will triple. Ad spending in the Philippines increased 9.7% in 2019
and is expected to reach $662 million by 2020. The value of digital ads is $342 million,
growing 4.4% annually. It's gaining traction. A brand's preferred digital marketing tool
in terms of reach, time spent on the channel, and expense. A third of Filipinos use social
media to shop (Osorio 2017). Therefore, it is significant to determine the impact of
digital marketing techniques on online retailers and customers, as well as the outcomes.
1.2
Background of the Study
The world faces a pandemic. In the Philippines' case, it had a huge social and
economic impact, and it still does. Many workers lost their employment, many became
unemployed, and many businesses had to close due to the situation. Also, numerous
businesses closed due to bankruptcies. Many business owners find a way to survive.
Since so many transactions are now digital, so have negotiations and business
transactions. In this situation, there is an increase in engagement during difficult
circumstances. Many of their marketing methods are 'online' or 'digital' effective. In
which the "Internet" and "Social Media" are used as negotiation tools. Promoting
products and services via "social media" is essential.
A marketing strategy is a thorough plan for attaining a marketing goal or
collection of goals. Everything is digital now, and technology is part of our daily lives in
ways that can overwhelm us (Bersin, 2016). Digitalization now affects both consumer
and industrial marketing. Industrial marketing researchers and practitioners must
comprehend this. Recognize it by practicing it is to know digital marketing's current
capabilities (Herhausen et al., 2020). In that instance, digital marketing can help
internet firms reach a global audience. Among all modern marketing techniques, digital
marketing and social media are becoming the most significant. Digital marketing is now
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often regarded as the most important marketing component (Mandal et al., 2017).
Online retailers may save money, reach more customers at a cheaper cost than
traditional marketing tactics, and establish brand loyalty by getting to know their
customers.
Because a lot has changed, and internet businesses help many people with their
income, having an online business is crucial now when our country is undergoing a
pandemic. Online shopping is one of the hottest trends today. You sell goods online,
especially to young people. You make money by selling online from the comfort of your
own home. Digital marketing, as the name implies, is a strategy, approach, or activity in
digital branding and marketing. Digital marketing is the online development of a brand,
product, or service. As a result, inbound marketing has become a vital component of
digital marketing. Understanding customer motivations helps to better understand
what drives consumers to generate and share content about a brand or shop. Digital
marketing is cheap and has a big commercial impact. Inbound marketing is a crucial
component of digital marketing since it builds trust and client loyalty (Atienza &
Tabuena, 2021; Baltes, 2016).
Therefore, this study aimed to examine the digital marketing strategies used by
online business sellers during the COVID-19 crisis. Based on the literature review
(Tabuena, Hilario, & Buenaflor, 2021; Tabuena, 2020) using the qualitative descriptive
research design (Tabuena, 2021; Tabuena & Hilario, 2021), concerned with establishing
answers to the whys and hows of the phenomenon in question (DJS Research Ltd,
2021), the researchers identified the following themes: digitalization and digital
marketing, digital and traditional modes of marketing, social media as a digital
marketing strategy, information technologies as marketing tactics, e-commerce during
the COVID-19 pandemic, understanding online, internet, mobile, and digital marketing,
preferences, and future research directions, and implications, as follows.
2
2.1
Discussion
Digitalization and Digital Marketing
Accelerating the process of digitalizing business operations, digitalization is
about approaching problems differently—creating new business models through the
use of digital technologies. It is not simply a matter of automating or integrating
technology into existing processes (digitalization) to optimize the existing value chain.
However, to go further, modifying the business model, reorganizing the value chain, and
developing a new supply of products and services (caused by the well before integration
of digital technologies into products and services), which results in a new and improved
way to provide customer value. Data-driven, ongoing technology development has
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resulted in the creation of new business opportunities. Additionally, digitalization is a
critical component of enhancing product processes in a variety of industries, which
means that it is a crucial part of developing successful production and network plans
and controls. By contrast, reports on data-driven innovations have increased the
corporate environment's competitiveness (Flores et al., 2021).
According to Santos (2020), among the advantages of digital marketing is that it
is low-cost but successful at attracting clients 24 hours a day. Online marketing is the
practice of advertising and selling items and services through the use of digital and
virtual environments. In addition, online marketing has both advantages and
disadvantages for online business sellers; its benefits include the elimination of the
need for online stores because social media may act as their marketing platform, the
ease with which they can reach clients via internet access, and the ability to have twoway discussions at their own pace. However, its limitations include the fact that some
buyers still prefer to view and inspect products or services in person and are also
unwilling to pay for transactions. Additionally, the business profile (years in operation,
monthly net income, and online marketing training) has no bearing on the rewards and
challenges encountered by online business sellers. Similarly, training in online
marketing and the various types of online businesses (product-based, service-based,
and product-and-service-based) has little bearing on the rewards and challenges
encountered.
Digital marketing and economic stability are interrelated, as an online business
has a significant impact on economic growth. There is a high chance that online selling
affects the growth and stability of our economy. Consumer behavior has a major effect
on e-commerce. Due to the convenience of the practice, e-commerce is anticipated to
continue to gain popularity. Local industries should embrace it rather than oppose this
new reality. They can use digital marketing to develop a website and advertising
campaigns that will put them in front of their target audiences. It is not tough to
compete against giant corporations. It only needs a well-thought-out online strategy and
a capable digital marketing business (Aque et al., 2021).
2.2
Digital and Traditional Modes of Marketing
Digital marketing, enabled by mobile technologies, social media platforms, and
eWOM, has become ingrained in our worldwide lives and has supplanted traditional
modes of communication and marketing. Recently, the area of marketing has grown in
sophistication as a result of the impact of intense global competition on numerous
sectors through new technology. These factors influence customer behavior and tourist
perceptions, in contrast to the traditional methods of marketing and advertising.
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Consumers benefit from the new broad templates of digital technology, which supply a
lot of information and numerous tourism services. With the advancement of technology
and the changing habits of With the new generation, it is evident that businesses must
embrace a new method of connecting with consumers, particularly in the tourist sector,
where destination selections are no longer as diverse as they once were (Alghizzawi,
2019).
In relation to the study of Finotto et al., (2020), digital marketing strategies are
seen favorably in the wine business, particularly by small wineries, because of the
richness of product and terroir communication, their apparent affordability in
comparison to traditional marketing strategies, and the access to foreign markets they
enable. While the value of digital marketing is well recognized, the reality is sobering:
many wineries are behind the curve in terms of digital tool usage.
In terms of new communication channels, the digital era has seen significant
advancements in communications and marketing. As a result, businesses today attempt
to embrace digital marketing channels to give customers the most appropriate services
possible to increase their level of satisfaction. The findings indicated that, of the four
identified factors, some components, including operational strategic factors and
environmental factors, had a direct and beneficial effect on the development of a digital
marketing skill gap. Environmental elements such as social and cultural circumstances,
religion, technology, and economics all have a proactive effect on the digital marketing
skills gap. Additionally, the results indicated that the abilities (Principles of
Communication and Predicting the Future) had the largest and smallest skill gaps in
digital marketing for the investigated organizations, respectively (Ghotbifar, 2017).
2.3
Social Media as a Digital Marketing Strategy
According to Dewi (2020), Social media can be considered as a virtual medium
that helps people enhance their social interactions. Through public relations, Wonderful
Bali's digital marketing approach has succeeded in establishing a positive reputation
among consumers due to the company's ability to connect effectively with them. Almost
every business owner has used digital media to sell their products.
Predictions of growing consumer power in the digital age before the turn of the
century were enhanced by the Internet's advent and then rekindled by social media.
Consumer behavior changes require businesses to rethink their digital marketing
strategies. Currently, much of the research in this area is focused on the client rather
than the firm. The second generation of Internet applications enriches marketing efforts
by enabling businesses to experiment with new modes of communication and
collaborate with their customers on content creation. The extent to which businesses
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engage in digital marketing can be classified according to the perceived benefits and
uses of the medium. To increase customer engagement through digital marketing,
marketers must emphasize relationship-based interactions (Bizhanova, 2019).
2.4
Information Technologies as Marketing Tactics
Furthermore, the expansion of information technologies and the internet has
been one of the most significant shifts in the company world over the previous decade.
The internal structure and organization of businesses have developed in response to the
emergence of a digital environment shaped by internet business models and digital
marketing (DM) approaches (Saura et al., 2019).
According to Cammayo (2021), The MSMEs studies adopt digital marketing
techniques, but to a "low" degree, with a grand mean of 1.1879. They continue to use
traditional customer acquisition and retention techniques. They lack the abilities
necessary to effectively utilize current technologies, such as email marketing, a Google
"my business" account, and other forms of information exchange (ICT). Marketing
tactics involving ICT have a major and direct impact on the financial success of Micro,
Small, and Medium Enterprises (MSME). This means that by increasing the level of
adoption of ICT-related marketing tactics, the MSME sector's financial performance will
also improve. She discovered a significant correlation between e-commerce and
organizational performance in Pakistan's banking sector. They contend that deploying
e-commerce benefits an organization's business operations, employee job performance,
and consumer satisfaction. The financial performance of MSMEs in Isabela, Philippines
is qualitatively characterized as "low”. They struggle to obtain credit. As a result, their
working capital is constrained by the business's revenue and it is argued that providing
sufficient financing to MSMEs will increase and sustain their profitability and growth.
2.5
E-commerce During the COVID-19 Pandemic
With consumers increasingly shopping online amid pandemic constraints,
entrepreneurs have become even more receptive to the digital phenomenon of online
buying. E-commerce platforms such as Lazada and Shopee are expected to lead these
online shopping platforms, with sales revenues expected to climb by millions of pesos.
Technology has already transformed online business transactions into an infinite
marketplace, where managing a business has become more easy and effective for both
sellers and consumers. Arreola (2020) stated that the importance of online shopping
has been emphasized during the COVID-19 pandemic.
Several of the advantages of an internet business include its low-cost but
effective ability to attract clients 24 hours a day. Online marketing is the practice of
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advertising and selling items and services through the use of digital and virtual
environments. The rapid progress of computerized media has paved the way for new
channels of publicity and promotion. This, together with the advent of gadgets that
enable access to enhanced media, has resulted in the rapid development of
computerized promotion. Advanced marketing is frequently referred to as web-based
advertising, web showcasing, or web marketing. The term "computerized promoting"
has gained widespread acceptance over time, particularly in specific countries. Clients
can access website pages for promotion through their mobile devices with versatile web
marketing. Site pages can be used to aggregate portable communications sources such
as updates for meetings, workshops, and other key events that require clients to be
mostly logged into their PCs (Catral, 2015).
2.6
Understanding Online, Internet, Mobile, and Digital Marketing
Kotler and Levy (1969) defined marketing as the function of an organization that
is capable of maintaining constant contact with its customers, anticipating their needs,
and developing products to meet those needs while also developing a system of
communication to express the organization's objectives. Kotler and Keller (2013)
describe marketing as the process of profitably addressing demands. As a result of this
definition, marketing is defined as the process of identifying and meeting human and
social needs. The term "online marketing" refers to the practice of utilizing the internet
to accomplish marketing objectives. The phrase e-marketing is frequently used
interchangeably with internet marketing, but it also includes mobile marketing. In a
broader sense, digital marketing is the process of utilizing the internet and other
information and communication technologies to accomplish marketing objectives
(Sedlacek, 2006). Digital marketing may be defined as the use of digital technologies to
provide channels for marketing and attaining corporate objectives by meeting and
exceeding clients' expectations.
Based on the study of Durai et al., (2019), to comprehend what digital marketing
tactics are, it's helpful to categorize what is not digital marketing. Printed, broadcast,
television, and billboards are not examples of digital marketing. These channels were
highly lucrative for a long time, but these aren't as efficient now. By using digital
marketing channels and methods the marketers can analyze their marketing campaigns
to understand what is working and what is not working in real-time. While the internet
is inextricably linked to digital marketing, other mediums are critical as well. With the
phenomenal expansion of smartphones and tablets in recent years, mobile has emerged
as a generally accepted channel for digital marketing. Social media has turned into a
formidable proponent for digital marketing. Initially, social networks were intended to
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facilitate in-person connections. It has lead to the transformation of social networks
such as Facebook and Twitter into valuable digital marketing tools. For the success of
business in today’s world, it is important to have a strong digital footprint within the
internet. For this purpose when a business is defining its marketing plan, it should
incorporate a solid digital strategy. Without a digital marketing strategy, new client
engagements, brand awareness, and revenue-generating prospects are likely to suffer.
2.7
Preferences and Future Research Directions
In light of the investigation of King (2019), that companies should keep the
above factors that influence their consumers in consideration to adopt the appropriate
strategies in their digital marketing efforts. They must conduct a comprehensive
strategy to addressing the consumer's need and using the potential provided by the
digital marketing platform by activating those factors that influence them in the various
digital marketing channels. For businesses to address this new market successfully, they
must first understand the elements in which their consumers live, how they think, and
how their perception is shifting in response to the increased use of technology in their
daily activities. After all, positive consumerism serves as an opportunity for businesses.
Keeping this in mind, businesses must develop appropriate digital strategies that cater
to customer wants to increase their chances of survival and growth, particularly due to
the volume and pace of change. caused through digitization.
Technology usage has a huge impact on business performance. To remain
competitive and preserve their market position, cut flower businesses should employ
digital marketing strategies. There is a substantial association between digital
marketing and the performance of floral businesses. Since technology has become an
integral element of enterprises, businesses should adopt digital marketing strategies
that are aligned with their objectives and expectations. Customer dynamics are
constantly evolving. Thus, a firm's success will be determined by its understanding of
these changes and the implementation of an effective marketing communication
strategy. As a result, as the rate of change in client preferences accelerates,
organizations' survival increasingly relies on developing new marketing strategies that
are compatible with their manpower's resources and capabilities. The study discovered
that maintaining client engagement through digital marketing contributes to the cut. As
flower exporting businesses expand their footprint at significantly lower costs, they
improve their income, customer base, market share, and ultimately profitability
(Onyango, 2016).
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3.
IMPLICATIONS
According to Lockett (2018) to enable small retail business owners to improve
derived sales through the use of digital marketing, they must hire the right people,
utilize successful advertising methods, and carefully select explicit content online.
Additionally, corporate leaders developed direct contacts with the community to raise
brand awareness, accelerate growth, and ensure long-term viability. Business
executives utilize a variety of communication platforms to create and promote products
and services in the retail business, as well as to improve their organization's
performance.
Social media is a tool for communication. Digital marketing, an Internet
phenomenon, enables small retail shop owners to incorporate Internet communication
into their business strategy and has evolved into a platform for advertising (Cant &
Wiid, 2016). Small retail business owners lack the resources necessary to improve
technology to capitalize on rising prospects on the Internet. Without the appropriate
tools, small retail enterprises face obstacles that limit their digital marketing prospects.
Often, a business's talents dictate its success (Ragab, 2016).
Ibrahim et al., (2018) due to a shift in consumer purchase behavior, digital
marketers are being drawn to social media advertising. According to social media
surveys, the average consumer spends 37 minutes per day on prominent social media
channels such as Facebook and Twitter, and 10% of internet users spend time on social
media sites. Consider the potential market share gains that social media marketing
might provide for internet marketers. In 2013, over 53% of digital marketers had
already established a social media presence for their companies, and by 2014, social
advertising spending would continue to expand.
4.
CONCLUSION
Digital marketing has superseded traditional marketing and communication
methods. Social, cultural, religious, technological, and economic variables all influence
the digital marketing skills gap. Advertisements on the internet are becoming
commonplace. The perceived benefits and aims of digital marketing by firms can be
categorized. Customers like Wonderful Bali's digital marketing strategy. Online
marketing is using the internet to market. Digital marketing leverages digital
technologies to give marketing channels. A solid online presence is vital to a company's
success. To address client needs while utilizing digital marketing platforms, an
integrated strategy is essential. To penetrate this new market successfully, corporations
must first understand their customers' lifestyles. Cut flower businesses should embrace
digital marketing to stay competitive and market leaders. Digital marketing has evolved
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into an advertising platform that allows small business owners to communicate online.
Small retailers lack funding to update technology and leverage Internet growth. Assume
that social media marketing can increase market share by advertising and selling items
and services online. Some buyers still demand to touch and feel products or services
before paying for them. In other words, digital marketing and economic stability are
intertwined. Micro, Small, and Medium Enterprises use digital marketing, but only to a
"low" extent. For SMEs, this means increasing ICT-based marketing. As a result, both
suppliers and customers are more productive. E-commerce sites like Lazada are
expected to raise millions of pesos.
5.
Acknowledgements
The researchers would like to thank the following contributors of the article as
part of the material taken from the Practical Research course subject submitted in
partial fulfillment of the requirements of the strand Accountancy, Business and
Management: Evhan P. Caniete, Lei Justin Kyle Olegario, Angel Orate, and Pauline O.
Ordanza of the Senior High School Department, Arellano University, Juan Sumulong
Campus, Manila, Philippines.
In addition, the researchers would like to express their sincerest gratitude to the
following who supported the realization of this study: Mr. Almighty C. Tabuena, LPT,
Ph.D. (h.c.), Regional Representantive and International Advisory Board Member,
Ascendens Asia International Research Institute Singapore; Mr. Junnie P. De Pedro,
Practical Research 2 Course Instructor, Senior High School Department, Arellano
University, Juan Sumulong Campus, Manila, Philippines; Arellano University, Juan
Sumulong Campus, Manila, Philippines; and Asian Journal of Management,
Entrepreneurship and Social Science (AJMESC).
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