E-MARKETING AND SMALL SCALE BUSINESS: THREATS AND OPPORTUNITIES
ABSTRACT
The study was carried out to examine the threats and opportunities of e-marketing as it affects small scale businesses in Egor Local Government Area. The descriptive survey research design was adopted for the study. 100 respondents from Egor Local Government Area made up the sample for the study. The instrument for the study was a questionnaire. Simple percentage and ANOVA method of data analysis was used in analyzing the data obtained from the respondents.
The results indicated that there is a positive relationship between SMEs’ years of experience and the implementation of e-marketing technologies; it also revealed that there is a positive relationship between size of SMEs and the implementation of e-marketing technologies by the SMEs.
Recommendations made include: small businesses should be encouraged to use the e-marketing in digital delivery of goods and services as it is easier and convenient, the business enterprises should encourage her employees on the need to be ICT inclined as this will enable free flow and easy access to information, businesses should increase their capital base in order to adopt the e-marketing technologies, organizations should be encouraged to increase their activities and transaction in order to adopt the e-marketing strategies.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1    Background to the Study    -    -    -        
1.2    Statement of the Problem    -    -    -    -    -
1.3    Research Questions-    -    -    -    -
1.4    Objectives of the Study -    -    -    -    -    
1.5    Research Hypotheses    -    -    -    -    -
1.6    Scope of the Study-    -    -    -    -    -
1.7    Significance of the Study    -    -    -    -    
1.8    Limitations of the Study-    -    -    -    -
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1    Introduction     -    -    -    -    -    -    
2.2    Marketing as a Business Activity -    -    -    -    -
2.2.1    Concept of Electronic Marketing (E-Marketing)    -    
2.2.2    E-Marketing Tools    -    -    -    -    -    
2.2.3     Differences   between   E-Marketing,   E-commerce,   E-business
and Internet-marketing    -    -    -    -    
2.3     Concept of Small Scale Business    -    -    -    -
2.3.1 Types of Small and Medium Scale Business Enterprises    
2.3.2     Importance of Small and medium Scale Enterprises (SMEs) in
Nigeria    -    -    -    -    -    -    
2.3.3 Marketing Problems of Small Business Enterprises    -    
2.4     SMEs and ICT         -    -    -    -
2.4.1 Factors that Promote the Adoption of Internet Technologies among
SMEs        -    -    -    -    -    -    -
2.4.2 Factors that Inhibit the Adoption of Internet Technologies among
SMEs    -    -    -    -    -    -    -    
CHAPTER THREE: RESEARCH METHODOLOGY
3.0    Introduction    -    -    -    -    -    -    
3.1    Research Design-    -    -    -    -    -
3.2    Population and Sample of the study-    -    -    -
3.3    Sample size determination    -    -    -    -    
3.4    Source of Data        -    -    -    -    -
3.5    Research Instrument and Validity Testing    -    -
3.6    Method of Data Analysis        -    -    -    
3.7    Operational and measurement of Variables    -    
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1    Introduction    -    -    -    -    -    -
4.2    Discussion of Findings-    -    -    -    
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1    Summary-    -    -    -    -    -    
5.2    Conclusion-    -    -    -    -    -    -
5.3    Recommendations    -    -    -    -    -    -
REFERENCES    -    -    -    -    -    
APPENDIX    -    -    -    -    -    
CHAPTER ONE
INTRODUCTION
1.1    Background to the Study
In both developed and developing countries, the traditional sector which is made up of small and medium scale enterprises (SMEs) had served and continues to serve as the springboard for launching a vibrant modern business sector (Asaolu, 2001). SMEs are catalysts in the socio-economic development of any country. According to Onwuchuruba (2004), they are a veritable vehicle for the achievement of national macroeconomic objective in term of employment generation at low investment cost and enhancement of apprenticeship training. SMEs do play a major and important role in today's world economy, and they are recognized as one of the main contributors to economic development. In recent years, increasing numbers of businesses have been using innovative marketing techniques in conducting their marketing efforts, giving the chance for Electronic Marketing (as a new marketing phenomenon and philosophy) to grow in a very dramatic and dynamic way.
Marketing as an innovative activity plays a crucial role in coordinating factors that are necessary for achieving the most of firms' capacity and technology (Ayozie, 1999). The practice and evolvement of marketing activities in the Nigerian business sub-sector are subjected to interest in business and policy world (Obitayo, 2001). Businesses are liable to have positive and evident returns with higher profitability levels, price premium and growth in turnovers as a result of their effectual adoption of innovative marketing strategy like electronic marketing (e-Marketing) which may have explicit benefits.
In the past, several studies have shown a low incidence of e-marketing adoption among business enterprises while in developing countries like Nigeria, access to the web was primarily restricted to e-mail communication and many people thus continue to view the internet and its application as simply a medium for e-mail communication, faxing and majorly web surfing, making majority of them not fully aware of other web-based applications. UNCTAD (2006) reports that these trends are particularly common in Africa. More so, Bro.Ue, Winklhofer, Coviello and Johnston (2006) asserted that the benefits of e-marketing to firms surpasses those related to communication alone and investigations have revealed that the e-marketing has overall impact on enhancing the firm's ability to manage customer relationships while relationship benefits such as encouraged customer feedback were seen as equally important in determining firm's performance. E-marketing generally provides new ways and opportunities for organizations to broaden their participation into new national and international markets. There are lots of SMEs adopting e-marketing at the moment all over the world (Onwuchuruba, 2001). This adoption has brought with it many benefits including market changes, controlling business cost, customer expansion, and creation of wealth. Others are creation of job opportunities, ability to be reachable worldwide, prompt service delivery, production gain and system efficiencies, as well as value creation (Ayozie, 1999). Small-scale enterprises (SMEs) now use the Internet and networking technology to conduct more of their work electronically, reliable linking factories, offices and sales forces around the globe (Obitayo, 2001).
Implementing E-Marketing by small business enterprises (SMEs) can change both the shape and nature of businesses all over the world. Because the increased usage of the Internet and other Electronic Marketing tools (i.e.: E-¬mail, Intranets, Extranets and Mobile phones) in electronic transactions might create not only a lot of opportunities for SMEs but also can eliminate a lot of its threats. From this prospective, it is noticed that the Internet, other electronic media tools and Electronic Marketing tools are playing a vital and essential role in conducting marketing activities within business enterprises regardless of its type or size.
1.2    Statement of the Problem
Today's business environment are forced to source for increased effective marketing tools that will lead to improved outsourcing activities, transformation in the value chains and distribution channels which require enhanced communication capabilities and increased information exchanges. However, incorporating e-marketing effectively into marketing field requires organizations to take active managerial role far beyond traditional areas of competence and authority. Deployment of e-marketing requires integration of not just technologies but also the technologists and other organizational functions into coherent and concerted strategic and operational approaches to offering and delivering on value propositions for customers. In adopting e-marketing technologies, however, SMEs may encounter many challenges such as: the cost of implementation, security, perceived customer readiness, lack of knowledge of IT. This creates problems to SMEs as they are mostly managed by owners and relations. In some cases, the owners may fail to realize the opportunities as well as the threats associated with the adoption of e-marketing technologies in their marketing campaigns. Against this backdrop, this study intends to investigate the threats and opportunities of e-marketing campaigns as it affects small scale businesses in Edo state.
1.3    Research Questions
Based on the stated research problem, the study will provide answers to the following research questions:
1.    What is the level of implementation of e-marketing technologies among SMEs?
2.    What type of e-marketing technologies do SMEs adopt for their various marketing activities?
3.    What factors promote the adoption of e-marketing technologies?
4.    What are the inhibiting factors to e-marketing technologies?
5.    Is there any form of relationship between SMEs' years of existence, size of SMEs as well as SME owner's awareness of technology and the extent of implementation of e-marketing technologies by these SMEs?
1.4     Objectives of the study
The broad objective of the study is to examine the threats and opportunities of e-marketing campaigns as it affects small scale businesses. However, the specific objectives are to:
1.    Examine the level of implementation of e-marketing technologies among SMEs;
2.    Examine the type of e-marketing technologies that SMEs adopt for their various marketing activities;
3.    Determine the factors that promote the adoption of e-marketing technologies;
4.    Determine the inhibiting factors to e-marketing technologies; and
5.    To examine if the age of SMEs, size of SMEs as well as SME owner's awareness of technology have any form of relationship with the extent of implementation of e-marketing technologies.
1.5     Hypotheses
Consequently, the following research hypotheses in their null form will be tested:
H1:  There is no relationship between SMEs' years of existence and the
      implementation of e-marketing technologies by SMEs.
H2:  There is no relationship between size of SMEs and the implementation of
      e-marketing technologies by SMEs.
H3:  There is no relationship between SME owner's awareness of technology and
      the extent of implementation of e-marketing technologies by SMEs.
1.6     Scope of the Study
This research work focused on SMEs' adoption of e-marketing in their marketing campaigns; the study will however be limited to SMEs in Egor EGA, Benin City, Edo State. Consequently, owners and managers of businesses/institutions such as: shops, factories, eatery, markets, banks, fuel station, bakery, schools, cyber cafe, hospital, poultry, boutique, salon, phone call centres, Guest houses and sport centres within Egor EGA, Benin City, Edo State forms the population for the study.
1.7     Significance of the Study
It is hoped that this work will highlight on the essence of e-marketing which will be of great benefit to enterprises both big and small. The findings of this type of study can contribute to SMEs growth and development as well as increased employment generation. It is hoped that the finding;, of this research work will aid marketers, salespersons and distributors on the knowledge and importance of adopting e-marketing and will therefore benefit entrepreneurs, employees of SMEs and business administration in general.
The study will be of great significance and serve as guide for investors and actors in the Nigerian business environment on how to successfully integrate marketing strategies with information and communications technology, thereby contributing immensely towards realization of an improved sales performance and customer's satisfaction. It will also serve as a blue print for policy makers and stake holders to chart the right course of action for the development of ICT facilities and infrastructure for marketing in Nigeria.
1.8     Limitations of the Study
The first potential limitation of this study will be that some items may not be too detail revealed in this study due to reluctance on the part of respondents (entrepreneurs) to fully disclose information because of personal reasons especially in relation to tough psychological decisions and the inability of the researcher to cover all SMEs in Edo State due to time and funding constraint. Nonetheless strenuous effort will be made to overcome these limitations, so as to make meaningful contributions to existing knowledge.