CC BY
15
Ergashev J.B., master Samarkand Institute of Economics and Service
IMPROVING THE EFFECTIVENESS OF DIGITAL MARKETING IN
SMALL BUSINESSES
Abstract. This article presents opinions on the use of digital marketing technologies in the field of small business and its specific features. In addition, scientific and practical proposals and recommendations for increasing the efficiency of using digital marketing technologies have been developed.
Keywords: small business, digital marketing, efficiency improvement.
The purpose of this qualitative study was to explore the marketing strategies some franchise small business leaders use to retain customers. This study included an explanation of the role of Porter's competitive advantage theory and Kim and Mauborgne's blue ocean theory regarding advertising as a factor for customers' decision to remain loyal customers and purchase the small business' products or services. The theories of marketing expanded since the early contributions of Robert Bartels and Wroe Alderson, which addressed aggregate levels of marketing phenomena. Alderson and Cox stated that theory in marketing initiated with the establishment of the Parlin Memorial Lecture.
According to Alderson and Cox universities began to offer courses in marketing theory, because the interest in a marketing theory rose in several areas. The tremendous growth of business education programs fueled marketing academia at numerous universities and assisted with the rapid growth in the field of marketing decades ago. Therefore, researchers and educational institutions focused on developing a theory to use within marketing.
Alderson and Cox stated that the interest in a marketing theory consists of the following two principal parts:
(a) the justified conviction that marketing students reaped from their efforts small harvests of significant generalizations and
(b) the evident belief among some observers that marketing students' achievement in setting fundamental problems for themselves was insignificant. Alderson continued to develop a central marketing theory during the annual American Marketing Association conferences.
However, Alderson did not establish a true marketing theory that would apply to all disciplines of marketing before his demise in 1965. The general paradigmatic framework for the existence of marketing theory consists of two main literature streams: (a) the exchange concept and (b) the understanding of the market mechanisms.
The understanding of markets is through the economic behavior of consumers and the defining of the exchange concept is exchanges resulting from the individual history of the market actors. The development of formal
marketing helped with prominent growth of the business structure in a competitive market.
Several researchers developed theories relating to various marketing concepts based on Alderson's publication of his landmark book, Dynamic marketing behavior: A functionalist theory of marketing. Marketing scholars synthesized the fundamental premises of marketing into general theories beyond the exchange of goods, services, and money to include any valuable resource (e.g., time, energy, feelings, places, ideas, symbols, or information).
Marketing is a key function and aggregation of process in an organization and creates effective relationships with the customer through successful communication. Some of the aspects of marketing include advocacy, promoting of products and services, and public relations.
Some of the challenges experienced by management are adapting to changing, organization commitment, and organization restructure to accommodate customer relationship management. Small business leaders face challenges of resource scarcity when planning and strategizing for marketing. Consequently, small business marketing leaders encounter challenges with wrong pricing strategies, business location, and inadequate information that might cause low demand for products, which may lead to a decrease in customers if the implementations of strategies do not fit the needs of the targeted market. According to Cant and Wiid, small and medium sized businesses face challenges of marketing management, human resources, and financial matters.
Sustainability. The future of the marketing phenomena depends on changes that involve consumer experiences, marketing networks, and sustainable development. Sustainable marketing begins simultaneously with the product development cycle. Sustainability firmly knits with the background of traditional societies, which includes wealth, rising materialistic tendencies and technology, but with inadequate marketing efforts short-term profit is limited with the possibility of threats to the ecosystem. Although the fundamental process in marketing is consumption, marketing science should focus on creating a healthy consumption environment and protecting the consumer from overconsumption. Barkay stated one strategy for sustainability is the development of corporate social responsibility guidelines including the development of socially responsible managerial systems and adoption of firm-specific and industry-wide codes of conduct.
Globalization and competitive advantage. According to Chen and Green, challenges business owners encounter include competitors globally, an aging consumer market, and less income from households affect brand equity. Globalization has deterritorialized the links between people, social, and cultural practices from their territories such as town, neighborhood, state, or country (Kale & De, 2013). To compete with leading brands and incorporate product differentiation, some retailers invest in premium store brands. Fadaei indicated
that industries and businesses globally utilize the Internet as a center for online sales.
Marketing mix and marketing research. Marketing mix as a business tool is synonymous with price, product, promotion, and place. Aremu and Bamiduro noted that the marketing mix has a direct relationship with the performance of entrepreneurial businesses and managements of entrepreneurial businesses are encouraged to pursue with rigor the marketing mix elements so their business can obtain a sustainable competitive advantage. An indicated international marketers must achieve the skill of understanding the value of cultural uniqueness when targeting a specific market. Aremu and Bamiduro concluded the marketing mix is particularly important for entrepreneurial businesses in Nigeria due to the volatility and highly competitive nature of the marketing environment in Nigerian. Many advertisers target consumers based on demographics, relevant geographic markets, and consumer interests. Consumers that are living in poverty and subjects of government agencies, non-government organizations, charitable trusts, and religious orders do not constitute a marketable segment.
Marketing innovation. Monolithic marketing challenges research included innovation, entrepreneurship, and sustainability. In addition, Cheung indicated that challenges of complex monolithic services include a lack of standardization of complex services, no ability to handle the service complexity and less structured planning and provision, and no or only poorly documented service catalogs, resulting in suboptimal offerings. Nike and Apple were two new brands that joined established brands such as, Coca-Cola and McDonalds in the effort to verify the end of history pertaining to open-minded consumer capitalism in American diversity during the 1980s.
In conclusion, the multiple case study provided an approach to capture knowledge from franchise small business leaders about their marketing strategies to retain customers. The consensus among the participating leaders was that effective marketing strategies are the lifeline to customer retention. Franchised small business leaders should include marketing strategies in their vision of growth if they are planning to retain customers and increase profit. The findings can be beneficial to all franchised small businesses that are willing to invest in the growth, sustainability, and success of their organization.
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