Digital Marketing & SMEs: An Identification of Research Gap via

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Digital Marketing & SMEs: An Identification of Research Gap via Archives

of Past Research

Ms. Priyanka Pradhan

Research Scholar, AKTU, Lucknow, India.

Dr. Devesh Nigam

Professor, Bundelkhand University, Jhansi, India.

Dr. C.K. Tiwari

Associate Professor, STEP-HBTI Kanpur, India

Abstract

As per the report of Boston Consulting (BCG) and internet

mobile association of India (IAMAI) 2015, the internet

population increased 25 times in the last 12 years. The

reinvention of marketing requires a re-examination of existing

techniques and practices to assure their appropriateness for

changing global digital environment. The need to carry out

research on usage of digital marketing in the Small and medium

enterprises is utmost importance.

Objective

The main objective of this research is to develop a clear

understanding about existing research related to SMEs and

digital marketing. This paper aims to empirically explore all the

different research points related to studies of digital marketing

published between 2005 and 2016 and explore different

methodologies adopted by researchers in the field of SMEs.

Approach

For analyzing, review of the literature concerning the usage of

digital marketing in SMEs, the author used systematic analysis

and classify the published data of marketing journals,

economic, business and management journals and IT journals

along with online accessible newspapers and reports. In this

paper, author proposes a model of DOI (Diffusion of

Innovation), Everett Rogers’ five dimensional model, for

understanding the studies on Indian SMEs’ decisions to use

digital marketing.

Results

The result indicated lack of structured research studies in order

to use digital marketing in small businesses in India. The study

covers many related areas such as: Electronic commerce,

electronic platforms, Mobile marketing, E-marketing and many

other research areas. There are clear research gap in field of

digital marketing, to fill the same, there is need to conduct

research to investigate the opportunities created by digital

marketing for Indian SMEs. The use of different methods in

reviewing the similar phenomenon should lead to greater

validity and reliability than single method. Authors’

recommends that triangulation approach will help in answering

future researcher’s questions and filling the research gap in this

field.

Implications

This paper may give clearer view towards the published work

in the field of digital marketing. Beneficiaries of this research

may be industrialists, policy maker, practitioners, researchers

and academicians.

Originality/ Value

The outcomes of the study illustrate the research gap

between digital marketing and its usage in SMEs. It may

also facilitates better approach towards accumulated

knowledge in the field.

Keywords: Digital marketing, Small to medium enterprises,

Innovation, Internet, research Gap.

INTRODUCTION

Google India (2012) showed that in India over 40% of SMEs

used internet for advertising and over 58% of SMEs used their

website to generate direct business leads. According to Digital

India 2016, a report by Octane Research, 80 % of Indian

advertisers’ trust that integrated campaigns (email, social, and

versatile) can bring about direct to-noteworthy increments in

conversion rates. This means businesses need a digital

marketing strategy that is in sync with academic research.

Digital marketing conceptualizes one for all digital campaign

providing numerous benefits to n number of customers at one

click. Not merely marketing products and services using digital

technologies moreover seeking efficiencies and effectiveness

through our campaigns, operations and management. SMEs

have demonstrated a considerable strength maintaining a

consistent rate of growth and employment generation during

the years and have shown an appreciable performance. In

recent years we have seen a gradual development of e

marketing and other e mediums in marketing efforts to certainly

connect with our conscious customers. An SME’s ability to

learn and acquire knowledge prepares it for further steps of

growth, which ultimately determines whether the SME is able

to progress to the next stage of development (Blackburn, 2016)

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Merging SMEs with digital marketing will definitely get a new

kick to its working and efficiency helping us to reach our

customers and getting their feedbacks within no time. The

author sights implementing digital marketing in small and

medium enterprises can change both the shape and nature of its

business all over the world. The further study will talk about

SMEs and digital marketing and scope of digitization in India.

SME (Small Medium Enterprises)

What constitutes an SME? It streamlines non-subsidiary

independent firms employing less than a given number of

employees as this number varies across different countries.

Small and micro enterprises (SMEs) section 7 of MSMED Act

2006 provides us the basis of classification between the

activities and the investment size. Manufacturing Enterprise

over here is defined in terms of investment in Plant &

Machinery. Whereas enterprises engaged in rendering of

services are defined in terms of investment in equipment.

MSME comes up with a second highest ratio of workforce after

agriculture providing benefits and employment within the

country. According to Fruhling and Siau (2007), the human

capital accessible within the organization is likely to be a

fundamental factor in effective innovation. Consequently,

management strengths should be focused on nurturing and

exploiting these strategic resources (Wernerfelt, 1984). The

census rose up to 40% this year and generated 3.25lakhs of

jobs. As a report claims that MSMEs contribution in GDP

(Gross Domestic Product) will be raised by 22% in 2020 from

17% in 2011. Indeed MSME is the triggering point in the

economy and provoking the other sectors as well to compete

with the usage of digital marketing. SMEs should merge up

with digital marketing to enhance its working, to boost up its

skills and have significant results. The ever evolving trend in

the market and the changing needs mounts up the core working

in both the sectors. The research renders relevant actions to be

taken on the usage of marketing in SMEs and even studies the

past researches done by scholars in the field from last 10 years.

DIGITAL MARKETING

Digital marketing outlines the use of technologies in marketing

efforts and business practices with the marketing of goods,

services, information and ideas via internet, mobile phones,

display advertising and other e mediums. Data driven

marketing uncovers various tactics to approach, attract, aware,

delight and lead customers to online marketing. Digital

marketing has been cited by many acknowledged writers and

unlikely state their views to the same. Making reference to this

Strauss and Frost define it as: “The use of electronic data and

applications for planning and executing the conception,

distribution and pricing of ideas, goods and services to create

exchanges that satisfy individual and organizational goals”

(Strauss and Frost, 2001: 454). Smith and Chaffey define it as:

“Achieving marketing objectives through applying digital

technologies”. (Smith and Chaffey, 2005: 11). Digital

marketing advances business development and brand value

ensuring growth and better visibility.

Table 1: Definition of Micro, Small & Medium Enterprises

Manufacturing Sector

Enterprises

Investment in plant & machinery

Micro

Enterprises

Does not exceed twenty five lakh rupees

Small

Enterprises

More than twenty five lakh rupees but

does not exceed five crore rupees

Medium

Enterprises

More than five crore rupees but does not

exceed ten crore rupees

Service Sector

Enterprises

Investment in equipment’s

Micro

Enterprises

Does not exceed ten lakh rupees:

Small

Enterprises

More than ten lakh rupees but does not

exceed two crore rupees

Medium

Enterprises

More than two crore rupees but does not

exceed five core rupees

Source: (Development Commissioner MSME)(Mathew,

2014)(RBI) (MSME, 2014)

With this study author wants to associate the working of digital

marketing with SMEs and the past researches in order to fulfil

the gap between digital marketing and its usage in SMEs.

SMEs need to be ready on the status of digital marketing as

comprehensive winning strategies adopted will give a vigorous

start on marketing campaigns.

RESEARCH PROBLEMS AND QUESTIONS

The root cause of this study is to develop a thorough

understanding about the existing researches associated with

SMEs and digital marketing. The objective is to explore past

researches and methodologies as adopted. Preparing the

complete archive of past and existing work will further help us

a bridge the gap and create opportunities for research work and

even for SMEs to get familiar with digital marketing. The

research believes that digital marketing still needs to be

analyzed and get a knowhow for the same.

Accordingly, the questions that study attempts to answer are:

 Different research points as of studied from 2005 to

2016 in context with digital marketing and SMEs.

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 Reviewing related platforms and decisions taken for

the use of digital marketing in Indian SMEs along with

research points

RESEARCH OBJECTIVES

The study aims to advance a comprehensive framework related

with the past archives and methodologies of digital marketing

and SMEs published between 2005 and 2016. Research

explores and analyzes the different approaches adopted by

researchers intended to contribute knowledge in the field.

 Propositioning a model of DOI (Diffusion of

Innovation) with categories of researchers;

 Providing archives of past research in context with

digital Marketing and SMEs: to analyze the gap

between them.

 Exploring the methodologies implemented by

researchers;

Since the research studies past methodologies by the scholars it

will thus help us to have a holistic understanding of the use of

digital marketing in Indian SMEs.

METHODOLOGY

Qualitative research facilitate academics to cultivate a deeper

understanding of experiences, procedures, difficulties, and

events (Bluhm, Harman, Lee & Mitchell, 2011). The paper is

a descriptive analysis of the literature of digital marketing

with regard to SMEs.The research will offer an observation

and an insight into the subject of SMEs embarking digital

marketing. Digital marketing is an unclear concept for

researchers, it needs further research. Various researchers and

practitioners misusing it and mixing some other concepts like:

Electronic commerce, electronic platforms, Mobile marketing,

E-marketing and many other research areas. Researchers

agreed that the qualitative method is suitable for understanding

the business activities in SMEs because it helps explain rather

than predict or measure the phenomena (Bettiol, Di Maria, &

Finotto, 2012; O’Donnell et al., 2011). A majority of the

sources used in this paper are peer – reviewed articles extracted

from various databases published between 2005 and 2016.The

journals and case studies of following database has been

reviewed :

 Emerald data Base

 Sage data Base

 Spinger data base

 Others / Reputed indexed journals

In addition to article, accessible e-newspapers and reports have

been studied. An attempt has been made to link various recent

researches to present an integrated picture and identify the gaps

in the existing research. The study also provides a direction for

future researches.

SAMPLES AND PROCEDURES

The author reviewed the literature by executing three stages of

the search. The author initiated by determining the database

that could be considered as the potential publications in the area

of digital marketing. The study further states the size of the

database, collections of management journals, newspapers;

provides a comprehensive bibliography of digital marketing

literature. The other stage investigates the different research

points and methodologies applied in the literature of digital

marketing and Small and medium enterprises (SMEs). Using

Electronic commerce, Electronic platforms, Mobile Marketing,

E marketing as key points provide broader insights in the

research. Sample size of the study is;

Articles published in journal (44) Articles published in

accessible e-newspapers (8) Reports (8)

Lastly relevant research studies were identified to come up with

an accurate and fair representation of the literature

characteristics and to investigate the research points,

methodologies and methods used in contemporary Digital

Marketing research.

RESULTS

Diffusion of Innovation Model

Innovation is a social rather than a solely individual

process...occurring among a variety of stakeholders rather than

as a matter of transfer or dissemination of technology or ideas’

(Engel 1997, p.125). Innovation is ‘an idea, practice or object

that is perceived as new by an individual or other unit of

adoption’ (Rogers 1995, p.11). The diffusion of innovation

model (Rogers 1995) identified a number of categories of

adopter, based on the speed with which they adopted the

innovation. The SMEs can easily bring in the innovative

marketing practices as they don’t have layers between the

decision makers and the people who implement these

decisions. With the perspective of connection and change,

the paper is to come up with a model for studies on digital

marketing with respect to Indian SMEs. Within the academic

research points, there are five categories of researchers,

following table will represent.

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Innovators

Represent by 2005-07,

researchers in the academic

research and they discover

uses for the new technology.

i.e Digital marketing

Early Researchers

Represent by 2008-09, they are opinion researchers and theorists.

Early majority

Represent by 2010, researchers are taking digital marketing as research point into

deliberation at most.

Late majority

Represent by 2011-13, researchers in the academic research and they are used to

reconsideration of existing theories generated by early researchers.

Laggards

Represent by 2014-15, they used to wait until everyone else has examined the topic,

representing 16% of consumers.

Figure 1: Diffusion of Innovation Model: Categories of researchers

However, the diffusion of innovation model derived by Roger,

as well as the study of Digital marketing in Indian SMEs is still

in its infancy. After completing the literature review survey, the

next stage is the development of theoretical framework, along

with the discussion of the methodologies and research points.

Research designs adopted for Past research’s Archives

Although limited in background knowledge, this paper presents

a brief literature review on digital marketing from 2005 to 2015

in order to explore how digital marketing and applications have

studied in this period. It was analyzed that the majority of the

researchers depended on Survey and literature review method

of study with percentage of 30% and 27%, respectively, of the

total number of studies and a percentage of 5% of the

experimental studies. On the other hand while 18 % of the

exploratory Studies, 11 % of them case study and Conceptual

strategy is only 9%. This represent that, budding research

studies are conceptual, case studies and experimental in the

field.

Figure 2: Research Design adopted by researchers

Methodologies adopted for Past research’s Archives

Figure 3: Qualitative Vs. Quantitative

By studying the literature, it is found that the majority of

researchers in the field of Digital marketing depended on

Quantitative and Qualitative methodologies from 2005 to 2015.

In this respect, researchers depended on Qualitative

methodologies in 48% of the total number of studies and on

Quantitative methodologies in 52 %of the total number of

studies.

Content Analysis of Past research’s Archives

SMEs require proper guidance in making the right choice of

technology suited to their needs. It has been observed that 32%

studies out of the total academic researchers were based on

digital marketing. Authors analyzed that there were 41%

studies based on mixed contents like ICT, Information systems,

mobile marketing etc. It can represent there is lack of studies

which may reflect the clear picture of Digital marketing, E-

commerce and Internet marketing.

Taxonomy of Research Studies: 2005-2016

Table 2 illustrates the distribution of articles published in the

online database of journal related to the research topic i.e.

digital marketing and SMEs from 2005 to 2015.

Innovaters

Early researchers

Late majority

Early majority

Laggards

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Conceptual

9%

Exploratary

18%

Case Study

11%

Survey

30%

Literature

Review

27%

Experimental

5%

48%

52%

Qualitative

Quantitative

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Table 2: Journals and its articles related with digital marketing and SMEs

Journals

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Journal of Small

Business and Enterprise

Development

Journal of Indian

Business Research

International Journal

of Emerging Markets

Journal of Enterprise

Information

Management

International Journal

of Educational

Management

Measuring Business

Excellence

Journal of Research in

Marketing and

Entrepreneurship

Benchmarking: An

International Journal

Journal of

Manufacturing

Technology

Management

The Marketing Review

Management Research

Review

Journal of Business &

Industrial Marketing

Industrial Management

& Data Systems (

Emerald )

Social Responsibility

Journal

Business Process

Management Journal

Asia Pacific Journal of

Marketing and

Logistics

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Telematics and

Informatics

Procedia Economics and

Finance

Journal of International

Entrepreneurship

Electronic Commerce

Research

Small Business

Economics

International Journal of

Management and

Enterprise Development

International Journal of

Innovation of

Engineering and

Technology

Research Journal of

Management Sciences

Management Decision

International Journal of

Business and Social

Science

International Journal of

Engineering Research

and Applications

Indian Journal of

Marketing

International Journal of

Applied Research

International journal

Management and

Enterprise

Development

International Journal of

Computer Sciences

and Engineering

Indian Journal of

Science & Technology

Articles as on Newspapers and Research Reports

The various agencies, including government, have to create a

support to SMEs for enabling their participation in the digital

economy. The interventions could be to allow SMEs to exploit

business information resources, turning them into accessible,

visible products, thus creating favorable conditions for firms to

access business information, know-how, training and

technology (Said, 2000)

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Table 3: Articles published in e-newspaper and reports; Short examination

S.No.

Particulars

Conclusion

1)

Business standard December 26, 2014

Sokrati eyes SMEs for digital marketing business

2)

Business Standard Magzine September 28,

2016

Digital India has opened a new window for growth: Rajiv Srivastava

3)

Business Standard April 25, 2016

Digital India fillip for IT MSMEs

4)

Business Standard

Karan Chodhury New Delhi April 17, 2016

E-commerce firms ride Make in India to reach rural markets. Paytm to

induct 5,000 manufacturers and sellers; has started programmes to

identify and train new sellers

5)

Hindu Business Line

November 23, 2015

E-lala to take small traders online. The portal will serve nearly 5.77

crore small traders in the country.

6)

Press information bureau

July 27, 2015

NSIC launched a B2C e commerce portal msmeshopping.com.

7)

VC Circle

April 17, 2013

Digital marketing and analytics service provider (SOKRATI)

introduced performance based commission model for small and

medium businesses focusing social online marketing.

8)

Economic Times

July 14, 2015

Financial help provided to India’s MSMEs through e-commerce

platform. SIDBI and Snapdeal partnered together to render financial

and non-financial support to small and medium sized business.

9)

‘Social Media in India – 2013’ Internet and

Mobile Association Of India (IAMAI)

The number of social media users in Urban India would reach 86

million in October this year, and 91 million by the end of this year.

10)

Marketing Analytics Benchmark Report by

Marketing Sherpa 2013

66% of surveyed marketers report acting on data to improve marketing

performance is the most important objective for marketing analytics in

2013

11)

We are social 2016 by US Central Bureau,

ITU.

136 million users are active social media users in India.

116 million are active mobile social users in India.

12)

Digital India 2016 by octaneresearch.in

For 50% Indian Marketers, e-Marketing income commitment is over

10%:

85% of the Marketers are following incomes produced through e-

Marketing exercises for their business.

50% of Respondents report that e-Marketing exercises are contributing

over 10% of shares of their incomes.

80% of Indian Marketers trust that integrated campaigns (Email, Social

and Mobile) can bring about direct to critical increment in conversation

rates.

13)

NSS Report 2014

Usage of computer in Uttar Pradesh (Age wise Analysis)

Literary percentage at Uttar Pradesh

14)

Report by Boston Consulting Group(BCG)

and Internet and Mobile Association of

India(IAMAI) 2015

The internet population increased 25 times in last 12 years. The internet

population estimated to reach half billion in 2018, making India the

second largest population of Internet users in the world.

15)

National Skill Development Report 2013

Potential and Skill Gap in Uttar Pradesh

16)

ASSOCHAM Report , 2016

MSME Sector in Uttar Pradesh: Exceeds its Target in 11th FYP both

in Number and Employment

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The author reviewed the literature on digital marketing and its

usage on SMEs. Were it can be seen that the past research work

done is on focusing social media and social users in country.

Rather Government need to work upon its potential usage on

these sectors to uplift the effectiveness of small business. The

statistics provided by these reports are easily inference about

the lack of studies in the sector of SMEs and digital marketing.

Thus there is a need to create a proper blend of statistics and

digital marketing in small and medium business enterprises in

India.

CONCLUSION

Research methodologies employed in Digital Marketing

research from 2005 – 2016 could be a very helpful resource to

guide researchers searching for a suitable methodology in the

area of Digital Marketing through providing a good

understanding for the methodologies used by other researchers

in the field.Despite of the rapid growth of digital marketing in

the industry we can see a little advancement in SMEs. The

literature work need to be progressed to give advancement to

other beneficiaries of this research.Findings and issues of the

paper will be highly useful for SSIs in framing their

strategies, and academia for further research in the context

of changing market scenario.

LIMITATION

Limitations represent the potential shortcomings of the study.

The foremost is even after having many medium to go for a

research the author based on newspaper study and journals

available. This is due to the time limit of this study, and

therefore, generalizations cannot be made.

NOTIONS FOR APPROACHING RESEARCHERS

There is still a need for further academic research within the

field of digital marketing and SMEs participation. A suggestion

for further research is to perform a quantitative, qualitative and

conceptual research, where one can provide a new dimension

to the study. This paper will help SMEs in shaping their

competitive strategies and policy formulation by respective

governments.

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