CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Organizations in the digital age are exploring the best channels to reach consumers owing to competition, dynamism in the business environment and the quest for survival (Dike, 2015). The increasing popularity of the Internet and its associated web applications has propelled many organizations into adopting what is known today as digital marketing to reach their target markets (Kim, & Ko, 2011).Smith, & Zook, (2011), indicate that the numbers of persons, organizations and governments using the internet globally has increased tremendously, thus shifting the attention of markers to digital marketing.
Baines, Fill, & Page, (2011), defined digital marketing as the practice of promoting goods and services through digital methods and the Internet technology to reach online consumers. The increasing relevance of internet technology has had a huge significance on marketing activities of organizations (both small and big) as it goes beyond physical boundaries in bringing buyers and sellers together (Bennett, & Maton, 2010). In addition, the internet enables organizations to access markets, while maintaining a presence that enhances competition against rival organizations.
Stokes, (2011) posits that effective digital marketing is essential owing to increasing levels of globalization and the quest for business performance, profitand success. In this context, Smith, & Zook, (2011) assert that various organizations have adopted new methods to improve their marketing activities in order to achieving competitive advantage. Nevertheless, there has been a lot of argument (Welch, & Worthington, 2010; Rowley, 2011 and Wekesa, &Maalu, 2016) on the effectiveness of digital technologies in marketing. Social media platforms like Facebook, Twitter, LinkedIn, Instagram, amongst others, have been identified as major channels for digital and online marketing of goods and services by organizations,in view of their significant impact on businesses performance (Rowley, 2011).
Kotler, (2010) contends that in business, marketing and innovation attract results, while other activities represent costs. Consequently,effective marketing strategiesare crucial in order to achieve organizational objectives. Qualman, (2013), stresses the need to assess the effect of digital marketing on organizational growth and performance,towardsassessing and arriving at the best methods in which organizations cantake advantage of new opportunities to attain competitive advantage over their rivals in the business world. Kates, & Matthew, (2013), aver that in the world of digital age, organizations should take advantage of emerging digital technologies in their marketing activities or face the risk of being thrown out of business by competitors.
Kuppuswamy & Narayan (2011), maintain that the proper application of digital marketing could meet the needs of the customer, byattracting and retaining consumers and attaining higher business performance.One of the major objectives of business organizations is to make profits for expansion and for its shareholders and this could be achieved, to a large extent, by effective marketing strategies (Scott, 2010).
1.2. Statement of the Problem
The ever-changing business environment and the revolution in digital technologies continue to pose complex challenges to organizations which require the adoption of best methods for competitiveness and performance. These challenges have been witnessed across sectors globally, thus driving organizations to be more innovative, scan the environment, embrace technology and effectively target their customers in order to remain relevant and competitive. In order to survive amidst this dynamism, organizations have progressed from being product-driven to market-driven, which has allowed better understanding of customers and competitors (Chen, Chen, & Capistrano, 2013). A paradigm shift, to achieve success in business performance and outdo competitors.
Organizations all over the world have been faced with problems on how to compete effectively and survive in the dynamic business environment. To overcome these problems, organizations have had to devise effective strategies such as marketing plans, through a mapping and thorough assessment of the most effective and efficient promotional channels. The ability of organizations to reactswiftly and responsively to the environmental challenges depends mostly on the strategies adopted for its marketing activities (Welch, & Worthington, 2010).
Consequently, digital marketing strategies have a vital role in aiding organizations to design and deliver their goods and services with exceptional features by redirecting and redesigning their business processes to meet current changes (Wekesa&Maalu, 2016). However, there are problems associated with digital marketing that could affect the organizational marketing activities, such as Information Communication Technology infrastructure, online or internet fraud like hacking, identity theft, phishing, spamming and a host lot of others (Azizan, 2010).
The aforementioned problems associated with digital marketing have served to increase consumer fears in mostly developing countries who patronize organizations online.
Conversely, the lack of digital technology infrastructure in some countries has further implications on the adoption of digital marketing by organizations (Baines, Fill, & Page, 2011).
Emerging digital technologies have particularly played a main role in improving organizational performance not only in marking activities but in other areas such as enhanced communications, manufacturing and it is against this backdrop that this study seeks to examinethe effectiveness of digital marketing strategies on an organization’s performance.
1.3. Aims and Objectives of the Study
The main aim and objective of this study is to examine the effectiveness of digital marketing strategies on an organization’s performance. The specific objectives are to;
i. Assess the significant correlation between digital marketing strategies and market penetration;
ii. To examine brand awareness through digital marketing;
iii. Evaluate the impact of digital marketing on the target audience; and
iv. Proffer recommendations based on the findings from the study.
1.4. Research Questions
The following research questions will be answered in the course of the study;
i. What isthe significant correlation between digital marketing strategies and market penetration?
ii. How has digital marketing created brand awareness?
iii. How has target audience reached through digital marketing?
1.5. Statement of Hypothesis
Based on the objectives and research questions of this study, the following null and alternate hypotheses have been formulated for the study;
First Hypothesis:
H0: Digital marketing has no significant effect on brand awareness
H1: Digital marketing has a significant effect on brand awareness
Second Hypothesis:
H0: Digital Marketing has not enhanced market penetration
H1: Digital Marketing has enhanced market penetration
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