CITY UNIVERSITY OF PASAY

(Pamantasan ng Lungsod ng Pasay)

College of Business Administration
Chapter 2.

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Introduction

This chapter presents the related literature and studies after

the thorough and in-depth search done by researchers. It focuses

on several aspects that will help in the development of this study.

This study is generally concentrating on the effectiveness of digital

marketing on small businesses. The literature of this study come

from journals, articles, electronic materials, and other existing

thesis and dissertations that are believed to be useful in the

advancement of awareness concerning the study.

Foreign literature

(Omar, Zan, Hassan, & Ibrahim, 2020).Entrepreneurs are

encouraged to use this medium optimally to achieve more

aggressive and innovative business quality. Specifically, this study

aims to look at the digital media phenomenon which is seen as

increasingly powerful as information and marketing channel agent as

well as to test the impact of its usage on entrepreneurial

performance. This study will consider the aspect of powerful digital

marketing in the development of business performance among Small

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
and Medium Enterprises (SMEs). A quantitative approach based on

cross sectional design is applied in this study. The questionnaire form

as a research instrument is based on the domains in the identified

variables. The sample consists of 300 SME entrepreneurs aged

between 18 to 55 years old who run businesses around Klang Valley.

The data was analyzed using SPSS software (Satistical Package for

Social Sciences) and Smart PLS. The results reveal that the business

purpose, product advertising, marketing benefits and product

reputation have significant relationship with the business

performance of SME entrepreneurs. The results of the structural

equation modeling analysis showed that the powerful of digital

marketing significantly influenced business performance. This

explains that the dimensions, which measure the digital marketing,

affect the business performance positively and thus help the

business development towards a more effective system .

(Mohamad Trio Febriyantoro, Debby Arisandi,2019).

Technology continues to grow, and the benefits of the Internet

increasingly felt for users who can not be separated from the

Internet, including small and medium enterprises (SMEs) in utilizing

information technology to run its business. An increasing number of

competitors into consideration for business actors to innovate in

 CITY UNIVERSITY OF PASAY
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College of Business Administration
winning the competition. In the era of the ASEAN Economic

Community (AEC), SMEs are required to continue to develop their

market potential as more and more foreign products are flooding the

Indonesian market. The use of digital marketing to be the right

solution for the perpetrators of SMEs, the use of the Internet in the

promotion process is expected to increase sales volume for SMEs.

The purpose of this research is generally to describe the impact of

digital marketing on sales volume for SMEs in Batam. This study

uses qualitative methods, using triangulation model, which combines

structured interview method, in-depth interview, and observation on

SMEs. Digital marketing makes it easy for SMEs to provide

information and interact directly with consumers. Digital marketing is

also expanding market share, increasing awareness, and increasing

sales for .

( Krizanova A, Lăzăroiu G, Gajanova L, Kliestikova J,

Nadanyiova M, Moravcikova D.,2019) The main objective of this

paper is to propose a methodology for implementing an indicator

suitable for the evaluation of the effectiveness of online

communication activities in the Slovak hotel industry. It uses

analysis of the current usage of online marketing communication

activities from the perspective of hotel service providers. The

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
methodology should be applicable to support decision-making and

actively support the sustainable development of hotels. In order to

achieve the objective of the paper, the authors conducted a

marketing survey focused on online marketing communication by

Slovakian hotels to determine their use and to map the current state

or methods of evaluating their effectiveness. Results of the research

suggest that hotels in Slovakia perceive evaluating marketing

communications online as being important, regardless of the size,

length of operation, budget, and class of the hotel. They prefer

financial metrics because they are a de facto manifestation of the

traditional approach towards investment evaluation. The results also

showed that return on investment is the most common metric for

evaluating the investments of online communication activities, and

that respondents expressed the highest level of confidence in this

metric as well. In line with the results, we have proposed return on

investment (ROI) as the most appropriate metric applicable in

evaluation of the effectiveness of online communication tools .

(Kalei, Anne, 2020).The study was limited to the SMEs that

were in the Top 100 list in 2016. The researcher issued

questionnaires to the sampled SMEs and data was collected using

the drop and pick method. Quantitative data was collected and
 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
analysed by use of regression analysis to establish the significance of

correlation coefficient on the association between the variables. The

study found that digital marketing strategies had a significant

influence on the marketing performance of SMEs. The study

concluded that the adoption of digital marketing strategies has a

positive influence on the marketing performance of SMEs. It was

recommended that SMEs adopt digital marketing strategies such as

social media, search engine optimization, display adverts and

websites and blogs. The study suggested that there was need for

more studies to be conducted on the same subject on other SMEs

and cadres of companies for comparative results .

( Waleed A. Aziz, 2022) significant The growth of international

e-commerce is a worldwide trend that is being propelled by a

tailwind created by the strengthening of economic policies, changing

habits of customers, as well as improvements in logistics and

technology. This research looks at the several reasons why

international ecommerce small and medium-sized businesses have

different levels of success. Building on the capacity’s perspective and

market orientation literature, a research model is developed and

tested using linear regression and mediation analysis on an effective

sample of 42 SMEs in various zones in the MENA (the Middle East

 CITY UNIVERSITY OF PASAY
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College of Business Administration
and North Africa) region that use e-commerce as an international

sales channel. According to the findings of this research, companies

in this industry crucially need to have digital marketing skills, but

that alone is not enough to boost performance and create true

competitive advantages. The findings of the study indicate that

marketing ambidexterity, which is characterized by tactics that are

both market-driven and market-driving, is essential in order to

maximize the impact of digital marketing capacities .

(Dumitriu, et.al. 2019). Towards assuring growth and long-

term sustainability, many modern small and medium sized

enterprises (SMEs) from the European Union have set building a

stronger brand as one of their primary goals. To achieve this, an

integrated framework for managing the continuous enhancement of

their brand equity level by adopting digital marketing tools and

techniques (DMTTs), has increasingly become a necessity for most of

the modern SMEs. However, even if such an approach provides

plenty of benefits, such as better audience targeting and reduction of

traditional marketing expenses, implementing these complex

processes in their business models poses a series of challenges like

choosing the best selection of DMTTs. For this reason, a conceptual

model is proposed in the first part of the paper, with the aim to
 CITY UNIVERSITY OF PASAY
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College of Business Administration
highlight a framework that will help underline the links between

DMTTs and other key elements that can provide an increase in brand

equity of SMEs, thus contributing to growth and enhancing the

sustainability level. Following the proposed model, research aimed at

two main directions has been conducted in the second part. The first

direction was to analyze the degree in which modern SMEs from the

European Union located in Romania dedicate themselves toward

embracing sustainability goals and principles. The second one

represents an analysis using also the SPSS software solution on the

most used selections of DMTTs mentioned in the presented

conceptual model. The results obtained provide a starting point for

those modern SMEs that choose to follow the path of sustainability

by creating and enhancing their brand equity through DMTTs.

(Reuschke, D., & Mason, C. (2022).)This paper explores the

engagement of home-based businesses in digital trading, measured

as proportion of their sales from buying and selling services and

products online of all their sales. Findings are drawn from a sample

of 994 Small- and Medium-Sized Businesses that are members of

the Federation of Small Businesses in Scotland. Multivariate findings

show that home-based businesses are associated with high

proportions of online sales supporting the view of home-based

 CITY UNIVERSITY OF PASAY
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College of Business Administration
businesses as ‘online’ businesses. However, quantitatively, the

overall transformational effects of digital technologies on the nature

and processes of entrepreneurship are rather small as the vast

majority of home-based businesses, like SMEs that are not home-

based, trade offline. Online business models represent a very small

proportion of the home-based business sector. Home-based

businesses in rural areas do not make greater use of e-commerce.

The findings add to the critical literature on the transformative

nature of digital entrepreneurship and the emerging home-based

business literature that question whether the role of digital

technologies and online marketplaces for home-based businesses

are being exaggerated, particularly in rural economies.

(Alford, P., & Page, S. J. (2015).This paper aims to address

that gap through a qualitative study of 24 owner-managed small

businesses operating in the visitor economy. It found that there

was a strong appetite for the adoption of technology for marketing

and a clear recognition of its opportunities particularly related to

how it could create a stronger market orientation and more agile

marketing, adhering to the principles of effectual reasoning.

However, the ability to take advantage of these opportunities was

constrained by a lack of knowledge and in particular an inability to

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
measure the return on investment. While the wider implications of

the study are limited by the niche sample, a planning model for the

adoption of technology for marketing is presented which can be

tested through future research.

(Dimitrova, P., & Sin, I. (2018)This study aims to explore the

usage of the digital marketing to acquire and maintain business

relationships, or more specifically, digital marketing in B2B start-

ups within the Swedish market. Digital marketing is essential for

businesses nowadays and has become a significant factor for

business companies for improving and implementing their

marketing strategies The study concludes, that it was found that

digital marketing is understood as an innovative and effective

method for attracting, maintaining and building business

relationships. However, the lack of resources is one fundamental

reason why start-ups have difficulties in acquiring and maintaining

business customers in practicing through digital marketing.

Additionally, it was found that digital platforms and tools such as

websites, industry specific platforms, and blogs provide the highest

advantage for start-ups. Moreover, social media platforms like

Instagram, LinkedIn and Facebook were in most use for presenting

content that is informative, educational and honest. Digital

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
marketing strategies in acquiring and maintaining business

relationships are indicated in the analyses which give sufficient

details in answering the research questions. The paper will provide

suggestions for doing further research in improving the current

topic in digital marketing.

(Atanassova, I., & Clark, L. (2015) This paper describes the

importance of understanding the social media practices of small and

medium-sized enterprises (SMEs) in the context of their marketing

activities development. By bringing together literature on SME

marketing, social media and dynamic capabilities, the authors argue

that SMEs develop, change and evolve their marketing activities by

acquiring market intelligence through social media use. This article

examines the literature, and proposes a conceptual model to guide

research in exploring these activities. The proposed model can also

assist SMEs in developing and refining their offline and online

marketing practices.

Local literature

( Jerico Sebastian B. Chavez 1 , Nicole Anne G. Magsino 2 ,

Mr. Fulepro Alberto Madrilejos October 2021 - March 2022) Digital

marketing, together with traditional marketing, has already been a

part of the usual business operation. However, the limitations and

 CITY UNIVERSITY OF PASAY
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College of Business Administration
health restrictions brought by the pandemic have allowed it to rise

above its expected purpose and become the actual point of

interaction between the supplier and an online audience. The

researchers used an online survey to collect information from 13

respondents. The results have shown that there is a difference in

perceived effectiveness between varying types of digital marketing

strategy, with Social Media Marketing viewed as the most effective

and most frequently used digital marketing strategy and Pay-Per-

Click Advertisements being the least effective and least frequently

used. The findings indicate that people perceive Social Media

Marketing, Search Engine Optimization, and Content Marketing as

some of the more effective choices for businesses when promoting

brand awareness and can actively help increase sales, develop

possible endorsements, and can be flexible enough for long term

use.

(Alreany C. Tabuena, Shiella Mae L. Necio, Kyle Kirsten

Macaspac, Maria Paula E. Bernardo, Dominic I. Domingo, & Princess

Daryl M. De Leon. 2022-01-09) In this research 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

 CITY UNIVERSITY OF PASAY
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College of Business Administration
collection of data to understand more about the targeted

consumers, allowing advertising and other strategies to be more

directed. 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.

(Astoriano, L., Gerona, Justin Albert D., & Marzan, Juan

Carlos R. 2022-03-23) Digital marketing is arguably one of the

preeminent marketing strategies utilized by today's vast number of

businesses and companies. A total of 334 respondents were

surveyed online, and data was analyzed through the SPSS software.

By the end of the research, it was found that digital marketing

strategies, specifically social media marketing and email marketing,

effectively generate purchase intention from Filipino consumers.

This is aided by the customer engagement triggered by the

advertisements presented on Facebook and their email. The

 CITY UNIVERSITY OF PASAY
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College of Business Administration
researchers recommend further research on the topic but to branch

out to other strategies and tactics of digital marketing since the

current study focused solely on Facebook and email.

(Angelo Clark Castillo, Aimee Margaret Flores, Lance Matthew

Sanchez, Arthur Yusay, Marie Abigail Posadas, 2022-01-07). The

changes in our daily lives, or, which have been called the "new

normal," have an implication in the shifting of tradition to online

business activities. This study aims to explore how effective search

engine marketing, content marketing, influential marketing, social

media marketing, and email marketing as strategies in digital

marketing used by different MSMEs operating in NCR under the new

normal and if these strategies can give a long-term gain in

businesses. The study was conducted through a survey

questionnaire by MSMEs owners in NCR. The study results found

that Social Media Marketing is very effective as a Digital Marketing

strategy and has a significantly low positive relationship with Digital

Content and Influencer Marketing. The study will contribute to

identifying the effectiveness of digital marketing strategies that will

benefit the businesses under the new normal in terms of increasing

 CITY UNIVERSITY OF PASAY
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College of Business Administration
their sales and in the future, as people get accustomed to the

activities under the new normal.

( Reneto M. Culagbang Jr. and Martin Joseph P. San Diego

October 2019) Globalization in the business industry has

established various challenges in the banking industry. It

establishes criteria that seek to develop the business sector to

promote ease and convenience for their clients and target audience.

The banking industry in the Philippines has made its swift transition

to carbon and paper transactions to paperless. It includes online

transactions like online inquiry, transfer of funds, and digital

marketing. The vast strategies in digital marketing have invited

convenience and fast banking transactions. This paper employed

the quantitative research and revealed that digital marketing in

commercial banks have extended their reach to their audience,

which increased the number of clients who can choose to buy

various services and products of these banks. However, digital

marketing has also reached its limit in terms of system failure and

security issues. To resolve such issues, the commercial banks have

strengthened their ICT systems in protection to their system and

partners in the business.

 CITY UNIVERSITY OF PASAY
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College of Business Administration
( February 2022 Orias, Mary Joyce S & Borbon, Noelah Mae

D.)The study examines the adoption of digital marketing among

farm tourism sites in Quezon, Province. The study used a survey

questionnaire among 385 visitors of farm tourism sites as

respondents. Based on the results, most of the respondents are 25

years old and below or Generation Z, male, in other occupation and

majority are single. It was agreed by the respondents that

usefulness was the most influential and synchronicity was the least.

While, performance expectancy was agreed the most by the

respondents on the impacts of digital marketing and the least was

purchase intention. Significant difference was found on technology

self-efficacy, usefulness, two-way communication and synchronicity

among respondent working in the academe. As well as a significant

difference in active control, two-way communication and

synchronicity according to civil status. It was shown that the

respondents agreed the most is the usefulness of digital marketing

while the factor they agreed the least was synchronicity Also, the

respondents agreed the most was performance expectancy and the

factor that the respondents least agreed on was purchase intention.

The study has a practical implication as it proposed a marketing

innovative plan for the continuous improvement of the farm

tourism.
 CITY UNIVERSITY OF PASAY
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College of Business Administration
(Apple Joy A. Aque1, Ivy M. Madronero, Ronaline B.

Nabasca , Ma. Melanie N. Edig, Mark Van M. Buladaco Jan-Feb

2021) The world is drastically changing through time. Most people

nowadays use technology likes: mobile phones and computers.

Many technological advancements arise. People can do online

shopping and many more through an internet connection since it

saves a lot of time. The purpose of the undertaken study is to

examine the effectiveness of online digital between digital

marketing and the economic stability of online sellers as a strategic

tool for building brand sustainability. For this purpose, we survey in

Panabo City to collect the data we need and we used technologies

for marketing and the effectiveness of online selling. The

researchers have taken 60 responses through a modified

questionnaire and used a consent quantitative research method.

Moreover, the researchers aim to identify the online sellers' factors

that will produce a success of a good quality of the product. The

results show a high level of online sellers between digital marketing

it has also been found out that among indicators of online sellers’

attention and satisfaction are two predictors of online marketing.

Furthermore, the outcomes have significant industrial implications

for the marketers and consumers that they can devise effective
 CITY UNIVERSITY OF PASAY
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College of Business Administration
marketing strategies to maintain optimum market share and

competitive advantages.

(Danzen Bondoc Olazo published ; February 11, 2021 )

The adoption of technology for marketing is crucial for the survival

of small and medium enterprises (SMEs) and yet little is understood

about owner-manager practice in this area. The purpose of the

study is to determine the level of current digital marketing

capabilities, digital marketing strategies, and challenges and issues

in adopting digital marketing. This paper aims to address the

relationships of these variables through a quantitative study of 134

owner-manager by SMEs operating in Angeles City, Pampanga. The

researcher found that there was a strong need for the adoption of

technology for marketing and for a clearer recognition of its

opportunities as to how it could create a stronger market

orientation and more agile marketing, adhering to the principles of

effective thinking. The ability of SMEs to turn this positive view of

digital marketing into a strong digital marketing plan or structure is

hindered by lack of technical capability. SMEs are lagging behind

digital marketing adoption and are ineffective in developing and

implementing online marketing strategies. These findings may

influence positive social change by contributing to more effective

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
and efficient marketing practices of SMEs that can lead to better

financial performance, higher survival rates, and a healthier

economic system.

(Brioso, Jessa & Borbon, Noelah Mae . March 17, 2022) The

Corona Virus Disease (COVID-19) has forced the hotel industry to

adopt digital marketing. The gap lies in the idea of whether the

target market will be susceptible to these advertisements seen on a

digital marketing platform. The study aims measured the factors

and impacts of the adoption of digital marketing on customers’

purchase intention of hotel-related products and services of DOT

(Department of Tourism) accredited hotels in Camarines Sur. The

exploration utilized a quantitative and descriptive method with 385

respondents identified based on the tourist arrivals in Camarines

Sur for the past five years. The qualified participants of the study

are those who checked in to DOT accredited hotels in Camarines

Sur and corroborated digital marketing as their booking media.

Interactivity Theory and Unified Theory of Acceptance and Use of

Technology (UTAT) guided the research. In comparing differences,

Mann-Whitney Test has been implored. Kruskal-Wallis Test also

served as a non-parametric method for testing the significant

difference. Results depicted that respondents agreed that all the

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
factors influence them in their adoption of digital marketing. They

also agreed that digital marketing impacts their purchase intentions

on DOT accredited hotels' products and services in Camarines Sur.

The output is a marketing innovative plan that can be proposed to

hotel organizations to improve their digital marketing. Furthermore,

future research may focus on maintaining hotel employee service

orientation through digital marketing amid the pandemic.

(Manuel Antonio M, Castro, Gian Marco D. Ng, Nikkie Mae M.

Reyes June 18, 2022 ) With ever-changing technological

advancements, most firms use a variety of digital marketing tactics

to target clients across a wide range of marketing endeavors.

Understanding which strategies to use is critical for food-related

micro-businesses. As such, the study looks into the effects of digital

marketing on profitability, with a particular focus on chosen

samples of food-related micro-businesses in Makati and Quezon

City during the COVID-19 pandemic. The researchers devised a

questionnaire to assess the impact of internet marketing on the

profitability of food-related micro-businesses. A total of three

hundred forty-five microbusiness owners/managers took part in the

study. According to our findings, digital marketing and e-commerce

have substantial relationships with profitability. However, no

 CITY UNIVERSITY OF PASAY
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College of Business Administration
significant relationship between social media factors and

profitability was discovered. Overall, the study emphasizes the need

for business owners/firms/managers to allocate resources toward e-

commerce.

Foreign studies

(Afrina Yasmin, Sadia Tasneem, Kaniz Fatema of Department

of Business Administration, Northern University Bangladesh,

Department of Business Administration, Asian University of

Bangladesh. ) Marketers are faced with new challenges and

opportunities within this digital age. Digital marketing is the

utilization of electronic media by the marketers to promote the

products or services into the market. The main objective of digital

marketing is attracting customers and allowing them to interact

with the brand through digital media. This article focuses on the

importance of digital marketing for both marketers and consumers.

We examine the effect of digital marketing on the firms’ sales.

Additionally the differences between traditional marketing and

digital marketing in this paper are presented. This study has

described various forms of digital marketing, effectiveness of it and

the impact it has on firm’s sales. The examined sample consists of

one hundred fifty firms and fifty executives which have been

randomly selected to prove the effectiveness of digital marketing.

 CITY UNIVERSITY OF PASAY
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Collected data has been analyzed with the help of various statistical

tools and techniques.

(Maya Demishkevich MBA, Rochester Institute of Technology,

2006 BS, State University of New York at Geneseo, 2004). . Small

business owners need strategies on howto use Internet marketing

to promote their products or services. The purpose of this multiple

case study was to explore how 5 small business owners in Maryland

developed and implemented an online marketing strategy.

Participants were recruited for their roles as the chief decision

maker of their business; additional prerequisites for their

participation were that they used Internet marketing, represented

different industries, and had fewer than 20 employees. Data came

from semi-structured interviews with the small business owners,

direct observations of the firms’ online marketing processes and

technology, and evaluation of companies’ use of different Internet

marketing channels. The data analysis strategy drew on resource-

based view theory propositions, examinations of conflicting

explanations discovered during the literature review, and cross-

case synthesis. The 5 emergent themes encompassed unstructured

planning, limited Internet marketing knowledge and expertise, use

of Internet marketing channels and tools, lack of systematic

 CITY UNIVERSITY OF PASAY
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College of Business Administration
approach to the management of Internet marketing, and

inadequate measurement of Internet marketing efforts. By

engaging in Internet marketing strategy planning, acquiring

specialized Internet marketing knowledge, measuring marketing

performance, and extending their Internal marketing resources

through outsourcing, small business owners may develop and

implement successful online marketing strategies. These findings

may influence positive social change by contributing

to more effective and efficient marketing practices in small firms

that can lead to better financial performance, higher survival rates,

and a healthier economic system.

(Magdalena Rzemieniak 2015) The main goal of the article is

to present the model forms of effectiveness of online advertising

and analyses the online advertising effectiveness. It has been

assumed that the greater effectiveness of online advertising

contributes to improving the entrepreneurship among entities that

use it. The article contains hypothesis that online advertising is the

effective form of advertising. The hypothesis has been verified on

the basis of desk research, as well as exploratory and experimental

research.
 CITY UNIVERSITY OF PASAY
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College of Business Administration
Year in, year out online advertising is becoming more and more

important in creating marketing campaigns. It reaches a great

number of recipients and enables quite easy assessment of its

effectiveness. It is interactive, because apart from informing

recipients about a given product, it also allows them to perform

interactive actions such as: visiting company’s website, sending e-

mails with inquiries or purchasing in online stores . Such a fast and

problem-free access to information is conducive to the development

of entrepreneurship. This role is emphasized by many authors .

Currently, the internet is one of the main channels of marketing

communication and online advertising has already settled in

advertising campaigns of both small and large companies. The word

„internet” is purposefully written in a lowercase letter as it is

treated as a communication media, much like traditional media, i.e.

radio, press and television. The main goal of this paper is to present

exemplary forms of evaluating the effectiveness of online

advertisements.

(by Crystal V. Lupo (2013). The purpose of this multiple case

study was to explore how landscape industry small business owners

have successfully used social media marketing to help ensure

business viability. The population for this study was landscape

industry small business owners in central Alabama, who have been

 CITY UNIVERSITY OF PASAY
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successful in using social media marketing. The conceptual

framework for the study included adoption theory to understand the

successful implementation of social media as a marketing tool, and

social exchange theory to explain how social behavior results from

the exchange process within social media. Data collection included

semistructured interviews with 4 small business owner from the

landscape industry and content analysis of the social media for 4

landscape industry small businesses. Data were alphanumerically

and thematically coded. Analysis revealed 4 themes: (a) marketing

strategy adoption; (b) primary social media types used; (c) social

media content including aspects such as service, education, and

holiday posts; and (d) benefits and challenges such as social media

as a low-cost marketing option for improved visibility, but with a

trial-and-error learning curve. Results may be used by small

businesses to improve their long-term viability through social media

marketing strategies, and to improve citizens’ quality of life and the

local economy through increased tax revenues leading to more

resources for schools, public safety organizations, and other

institutions in the community.

(Yang Yang National University of Singapore, Atryei Kankanhalli

National University of Singapore, ) Social media has become a

value-adding marketing channel. With the significance of social

 CITY UNIVERSITY OF PASAY
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media for online small businesses and the lack of understanding of

this area, this study attempts to investigate the impact of social

media marketing on the sales performance of such businesses.

Drawing on the theories of media richness and uses and

gratifications, we propose a research model in which the impact of

social media marketing message strategies (i.e., message content

and format) on customer engagement, brand awareness, and sales

performance of online small business is investigated. Customer

engagement and brand awareness are expected to mediate the

relations between message strategies and online small business

sales performance. To validate our model, we will collect data from

a Twitter-like microblogging platform Sina Weibo and e-commerce

platform Taobao in China. This study is expected to contribute to

research and practice on social media marketing and online small

businesses.

(Alaimo, 2018) As the next wave of retail technology

crests, customers will find voice tech, sensors and

blockchain affecting their experiences and expectations.  The

research found that 6% of retail visits that involved

engagement with AI-powered recommendations drove 37%

of revenue. Those personalized experiences brought a 4.5

 CITY UNIVERSITY OF PASAY
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times greater cart rate and 5 times greater per visit

spend. Technology like machine learning and artificial

intelligence (AI), for example, can be used to create

personalization.

(Jaiswal, 2022) Geographical expansion Social media

and the internet transcend geographical boundaries,

allowing brands to reach people across the globe.

Development of brand Social media and websites are

considered the most effective ways to promote brands and

attract the target audience. They provide a peek into the

brand's product, service, ideologies, beliefs, purpose, etc.,

making it easy for the audience to connect, understand, and

invest in the brand. Digital marketing helps a brand

understand its target audience's preferences and needs,

which, when incorporated into the product or service, can

enhance the customer experience. It is easier to track the

audience's response to a marketing campaign online than

offline through web analytics, which helps brands identify

the following: Number of people who visited the site clicking

on the ad, Different sources of traffic, Performance of the

ad, and Ranking of your website on search engine. This

 CITY UNIVERSITY OF PASAY
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helps brands easily modify the existing marketing strategy

or create a new one to attract the target audience. Digital

marketing campaign content or message can be accessed on

various devices like mobile, computer desktops, laptops, and

others, increasing the visibility and reach of the ad.

(Neil Patel, 2022) Digital marketing also provides access

to more data and analytics about your customers, how they

navigate the buying cycle, and what they want.  That means

you don’t have much time to figure out this digital

marketing stuff. Today, most companies have moved to

online marketing. Digital marketing was born. Digital

marketing was popularized in the early 2000s, but digital

marketing has been around much longer.  That’s why digital

marketing matters; it’s where the attention is.  If you want

to reach those people, digital marketing is a must.  In 1896,

Guglielmo Marconi was the first human to demonstrate a

“public transmission of wireless signals.” He invented the

radio. The first live broadcast was from an opera

performance at the Met and guess what people did after

it? Do me a favor; take a peek at the passenger seat the

next time you give someone a ride. What’s more: the share

 CITY UNIVERSITY OF PASAY
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College of Business Administration
of people spending more time using electronic devices

continues to rise, while print advertising continues to

decline. That’s because Google and Facebook generate more

revenue than any traditional media company.  According to

Google, 88% of people who conduct a local search on their

smartphone visit a related store in the next week.  As the

technology improves, not a single passenger will spend their

time looking at the road. Nearly 5 billion people worldwide

go online to shop, learn, entertain themselves and even

work.

Local studies

(Flores et al., 2021).Digitalization, which hastens the process

of digitalizing company activities, is about using innovative

approaches to challenges and developing new business models. In

order to optimize the current value chain, it is not enough to merely

automate or integrate technology into existing processes

(digitalization). To go even further, a new and improved method of

providing customer value is produced by altering the business

model, rearranging the value chain, and creating a new supply of

goods and services (caused by the well-before integration of digital

 CITY UNIVERSITY OF PASAY
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College of Business Administration
technologies into goods and services). New business prospects have

been produced as a result of data-driven, continual technological

advancement. Digitalization is also essential for improving product

processes across a range of industries, which makes it essential for

creating effective production and network plans and controls. In

contrast, publications on data-driven innovations have raised the

level of competition in the corporate environment .

According to (Santos (2020), The fact that digital marketing is

inexpensive but effective at attracting customers around-the-clock

is one of its benefits. The act of promoting and selling goods and

services online using digital and virtual environments is known as

online marketing. Additionally, online marketing for online business

sellers has both benefits and drawbacks. Its advantages include the

removal of the need for online stores because social media may

serve as their marketing platform, the simplicity of reaching

customers via internet access, and the capacity for two-way

conversations 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

 CITY UNIVERSITY OF PASAY
(Pamantasan ng Lungsod ng Pasay)
College of Business Administration
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.

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.
 CITY UNIVERSITY OF PASAY
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College of Business Administration
(Aque et al., 2021).Digital marketing and economic stability

are interrelated, as an online business has a significant impact on

economic growth. There is a high chance that digital marketing

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 .

(  Ma. Sophia Santos 2022) According to the study's findings,

social media marketing is a very effective kind of digital marketing

and has a weak correlation with influencer marketing and digital

content. When individuals become accustomed to the activities

under the new normal, the study will help determine the efficacy of

digital marketing tactics that will benefit businesses operating under

the new normal in terms of boosting their sales.

(Dwivedi and colleagues, 2021).Farm tourism sites have a

fantastic potential to promote their businesses via digital marketing.

 CITY UNIVERSITY OF PASAY
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College of Business Administration
as well as their rural neighborhood. It is possible to connect with

internet audiences with digital marketing. because it is uncommon

where they are from, visitors are drawn to the location out of

curiosity. Moreover, online marketing is a type of marketing that is

frequently employed today to advertise goods and services and to

reach the internet, social media platforms, smartphone applications,

and other digital mediums, including digital communication

technology. Digital marketing, according to Yasmin et al. (2015),

refers to marketers. employing digital media to market goods and

services to customers. In addition, the primary The goal is to draw

clients and give them the opportunity to communicate with the

businesses via digital channels. Social media usage has risen to

prominence in people's lives all across the world. It enables

businesses through the use of digital and social media marketing, to

achieve their marketing objectives at a reasonably cheap cost.

(Gloria Juliano, Elizzabeth T Banan, Mevelin D Cabotage and

Bernie E Balme 2019) According to the findings of this study, the

majority of the customers

satisfied with the website's style and content, distribution/delivery,

the cost of the item, and the conditions of payment from the

McDonald's company, which conducted online many of them were

 CITY UNIVERSITY OF PASAY
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College of Business Administration
simply unclear about the marketing the cost of the goods.

McDonald's Corporation ought to have techniques when creating

their websites that don't just serve to not just to advertise their

goods but also to come up with it improved, grew more appealing,

and satisfied customers the way of online marketing. Overall, the

findings show that web marketing is a crucial instrument for

promoting a brand particularly in marketing.

(Justine Humphry2019)Beyond just access, digital inclusion

should be understood in terms of class structure, informational

stratification, and structural power structures. Even though Filipino

telecommunications companies have consistently created goods and

services for the working poor, the issue of access still exists. This

article explores the various methods that Filipinos can connect

online, including through prepaid mobile phones, cheap internet

connection options like Pisonet, and employment in IT-BPO

(business process outsourcing) firms. I contend that what is

happening is a "good enough" access that strengthens pre-existing

class hierarchies and poses fresh issues with inclusion. Digital

inclusion also reveals new forms of social stratification, not just

between the "haves" and "have nots," but rather from the uneven

access that is determined by one's accumulation of economic and

 CITY UNIVERSITY OF PASAY
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cultural capital. This is true even though there are an increasing

number of new ways for Filipinos to connect.

(Alexander A. Hernandez; Victor James C. Escolano

; Ma. Divina 2022) social media is a platform that enables users to

communicate online by creating and sharing content as well as

ideas and knowledge. The use of social media to assist small and

medium-sized businesses in conducting business is gaining

popularity. Studies on social media use and its effects on

productivity and sustainability inside organizations, however, are

still scarce in the Philippines. This study investigates how social

media usage affects organizational sustainability and performance.

Interviews with SMEs in the Philippines were used in this study to

conduct a qualitative analysis from the perspective of a developing

nation. Collaboration, information exchange, customer interactions

and service, and rivals' accessibility are all demonstrated by the

results.

Synthesis of the related literature and studies

In our research, we have a short argument regarding the

effectiveness of digital marketing on small businesses. Some of our

related literature and studies is more about marketing strategies

and how digital marketing can affect the consumer buying

 CITY UNIVERSITY OF PASAY
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decision . some of the results it has a big impact of digital

marketing to people especially when the pandemic came because

using of digital platform and social media they are very easy to

them to have a access in some small businesses in their area,

instead of going to a physical store, they can buy product or render

services using a digital platform . They can easily see some of the

products online using digital marketing to promote their product it

also help their businesses to know their target market or

consumer .

Digital marketing has been part of many business operations

especially in the time of pandemic it shows the limitations and

health restrictions, but it also allowed to rise above its expected

purpose and become the actual point of interaction between the

supplier and an online audience. Businesses are often torn between

which digital strategies to pursue to assist in business operations

during heavily restricted times and, the researchers used an online

survey to collect information in regards of the effectiveness of

digital marketing and it shown that there is a difference of

perceiving the digital marketing, the findings is that the social

Media Marketing viewed as the most effective and most frequently

used digital marketing strategy for businesses when promoting

 CITY UNIVERSITY OF PASAY
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College of Business Administration
brand awareness and can actively help increase sales, develop

possible endorsements, and can be flexible enough for long term

use.

digital marketing has significantly impacted both businesses'

operations and how consumers get information, engage, and buy.

Through the analysis of many marketing journals, some article

identifies the current situation and possible gaps within digital

consumer behavior research. By combining bibliometric analysis

and machine learning algorithms, the researchers have identified

key topics in their studies . The studies results show that

digitalization has overreached its original subsistence and has

become an essential aspect of mainstream consumption patterns.

The study reveals three domains within digital consumer behavior :

(1) how digital marketing can affect the consumer buying decision;

(2) transactional subjects within consumers’ digitalization; and (3)

digital marketing's impact on the consumption of specific product.

The significant growth is expected in mobile channel use,

sustainable consumption, user-generated content, and social media

engagement. In general, the results exhibit a shift from a

transactional point of view to a more theoretical and strategic

perspective. Possible research gaps are expected to emerge from:

 CITY UNIVERSITY OF PASAY
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College of Business Administration
(1) the impact of digital marketing in SME ; (2) the possible

outcomes of the pandemic on digital consumption patterns; (3)

enhancing brand engagement through consumer-to-consumer

interactions; (4) enhancing the understanding on issues like

consumer collaboration, consumer trust, and service satisfaction.

Furthermore, the outcomes have significant industrial implications

for the marketers and consumers that they can devise effective

marketing strategies to maintain optimum market share and

competitive advantages. The adoption of technology for digital

marketing is crucial for the survival of small and medium

enterprises and yet little is understood about owner-manager

practice in this area. It use to show the capabilities and challenges

in terms of digital marketing. Researchers, found that there was a

strong need for the adoption of technology for marketing and for a

clearer recognition of its opportunities as to how it could create a

stronger market orientation and more agile marketing, adhering to

the principles of effective thinking, These findings may influence

positive social change by contributing to more effective and efficient

marketing practices in any form.