TRENDS IN DIGITAL MARKETING AND

INDIAN SMES

DR. DEEPIKA UPADHYAYA MOHAMMED IRFAN KHAN

Associate Professor, Assistant Professor of English
Department of Management Studies, Department of Management Studies,
M D S University Ajmer M D S University Ajmer
(RAJ) INDIA (RAJ) INDIA

Micro, Tiny, and Medium Enterprises (MSMEs) are small enterprises characterised by the
size of their investment. They provide a considerable contribution to the economy's output,
employment, exports, and so on. It is well acknowledged that the contemporary epoch is one
of globalisation and technical advancement. All of our daily activities revolve on technology
breakthroughs, and we are motivated by them. The Internet is the ruler, and we place a high
value on its proper operation in order to live a normal life. Small, medium, and even large
businesses have turned to online marketing to sell their products and services. They believe
that the Internet is the best platform for all branding and marketing efforts. This is referred to
as 'internet marketing' or 'digital marketing.' Even SMEs (Small and Medium Enterprises)
profit substantially from digital marketing tactics.

This article discusses the significance of digital marketing in the sector of SMEs and the
benefits of digital marketing for SMEs. SME's may carry out their activities all over the world
if they use digital marketing. SME productivity is increased via digital marketing. With the
increase in online users in India, most SMEs have understood the value of internet
technology in their everyday marketing lives. According to current trends in India, the
number of internet users is expanding. As a result, this is a critical chance for SMEs to take
steps toward digital marketing and increase sales.
Keywords: Economy, Employment, digital Marketing, Investment

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INTRODUCTION:-

1.0 Role of Digitalization of Marketing in the MSMEs:

SMEs, often known as small and medium enterprises,' have taken a jump in recent years,
with significant improvements in this industry. Most of these small and medium-sized
enterprises were founded lately by young and bright entrepreneurs who shifted their business
models from old methods of advertising and promotion to current, digital strategies. They
seek out new ideas and are willing to take risks. Several SME owners were compelled to join
the market with a drop into the web marketing methods, with digital marketing as their
primary foundation of achievement.

 A digital marketing strategy frequently incorporates the use of electronic content or

Internet resources such as internet sites, databases, software platforms, video files,
alerts, social networking sites, digital streaming, e-books, and others to connect with
the potential customers all over the world. The various digital marketing technique
has greatly benefited SMEs by bringing their products and services to the attention of
their target clientele. Digital networks and search engine optimization (SEO) have
shown to be effective marketing techniques for small and medium-sized businesses
(SMEs). SMEs have profited from digital marketing tactics in the following ways:

 With the use of digital marketing methods, SMEs have been able to hunt for more
adaptive potential market in a global environment, which has significantly influenced
their sales and profit.

 Because most digital marketing tactics give free services, it is claimed to be the most
cost-effective way of reaching out to targeted potential clients.

 Long-term ties are superfluous. Leading digital marketing strategies like CPC (Cost
per Click) and PPC (Pay Per Click) may be utilized successfully to help SMEs
achieve their goals and boost profitability.

 SMEs may also make direct contact with professionals in this industry who are up to
speed on the latest developments or improvements. This allows them to ensure the
best possible ROI (Return on Investment).

 The implementation of successful digital marketing tactics also allows SMEs to make
the required modifications or reforms in their continuing online marketing efforts as
needed.

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 The following criteria are established by the MSMED Act of 2006 for defining Micro, Small,
and Medium-Sized Enterprises (MSMEs): 1) Equipment purchases for companies providing
or offering services; and 2) Plant and equipment purchases for companies producing,
processing, or preserving commodities.

The original cost of the equipment is what is referred to as the purchase of equipment, minus
the cost of any land, buildings, or other assets indicated by the Ministry of Small-Scale
Industries in its notice number S.O. 1722 (E) dated October 5, 2006.
The following rules apply to investments in plant, machinery, or equipment as those terms are
used in the MSMED Act of 2006:

The Enterprise's Activity Type Investment in plant and Investment in equipment

machinery excluding land and excluding land and building for
building for enterprises enterprises engaged in
engaged in manufacturing or providing or rendering of
production, processing or services (loans up to Rs 1 crore)
preservation of goods
Micro Not exceeding Rs.25.00 Lakhs Not exceeding Rs.10.00 Lakhs

Small More than Rs.25.00 lakhs but More than Rs.10.00 lakhs but
does not exceed Rs.500.00 lakhs does not exceed Rs.200.00 lakhs
Medium More than Rs.500.00 lakhs but More than Rs.200.00 lakhs but
does not exceed Rs.1000.00 lakhs does not exceed Rs.500.00

1.1 Objectives of the study

The study's aims are as follows:

1. To provide an overview of SMEs and digital marketing
2. Researching the need for digital marketing adaptation
3. To research the difficulties SMEs have while applying digital marketing

1.2 Research Methodology

The significant investigation that the secondary source of information used to create this
theoretically oriented article. Online publications, books, and journals are some of the
sources. The way businesses conduct business has been transformed by e-business. The
impact of the internet on people's lives has changed dramatically in India. From 120 million
users in 2011 to 278 million users in 2014, India's internet population doubled. India is on the
verge of experiencing a tremendous increase in e-commerce and Internet usage. People's

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customary ways of living have altered. Despite having a low overall percentage of the
population who use the internet, India has a relatively high absolute number of internet users.
With the government of India's "India Digital Plan" for 2019, the future of Digital India is
bright. By 2019, the plan aims to provide internet access to 250 000 villages in India, Wi-Fi
in all public areas, and smartphones for every Indian. This provides excellent chances for
several e-commerce websites to target this market. More than 343 million people utilize the
internet, and this expanding user base is directly related to the expansion of the nation's
business and industry. Many SMEs are establishing themselves in the Indian market through
e-commerce and using the internet as a marketing tool.

1.3 Why should SMEs use Internet marketing?

Delivering a message to SMEs is the primary goal of traditional marketing media like
newspapers, news websites, radios, and television. Online marketing quickly receives,
exchanges, and transmits messages as well as impressions and ideas. The current situation for
SMEs in India has altered, and the difficulties presented to the businesses by the business
climate are much more intense than previously. Small businesses that export may now gain
from Internet marketing in the age of globalization.

Has your target audience stopped reading printed newspapers or magazines because of
changes in people's conventional lifestyles? Do they still assemble as a family on Sunday
mornings to watch that one well-liked programme? Then, where are they? On the internet,
whether like or sharing a Facebook post, asking about lodging on Twitter, leaving a comment
on a blog post about a movie, repinning a stunning clothing design they spotted on their pin
board, or viewing a YouTube advertisement.

1. Cable and satellite TV households are now outnumbered by internet users in India. The
average amount of time spent online is rising along with the number of users.

2. Compared to traditional media, the costs are lower.

3. You are your own publisher; thus, you are not reliant on an outside media. As a result, you
have more influence over the time and content.

4. It moves quickly. The days of planning months in advance to issue an advertising are long
gone. Ads are now produced in a matter of hours, and occasionally even minutes.

5. India is a young country. Two thirds of its 1.2 billion inhabitants are younger than 35 and
more than half are under 25. 85 percent of India's youth use one or more social networking
sites regularly.
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6. You have a huge amount of potential to manage your reputation. You may keep a watch on
what is being said about you generally, promptly reply to concerns, and encourage people to
share their positive experiences with your business.

1.4 Benefits of Internet marketing for Indian SMEs:

1. Worldwide Trade

The Internet also offers fresh approaches to enhancing customer service and is regarded as
the most cost-effective marketing tool since it eliminates running offices, cuts down on
staffing, and minimizes paperwork.

2. Efficiency and productivity gains

Using online marketing and increasing productivity, SMEs may streamline their operations.

3. Increasing information about the market and the customers (e-marketing)

Through online marketing, SMEs and customers may both obtain increasing amounts of
information quickly and simply.

4. Practical Businesses

E-commerce has given companies the capacity to transact with virtual enterprises. A virtual
business is a modular structure made up of several independent business entities connected
online.

5. Inferior search costs

Low search costs and significant pricing transparency are expected characteristics of the
Internet. It is feasible to create search engines that will track prices across several websites
when participants only disclose their pricing on the Internet. The Internet has not only
changed the perception of every component of the marketing mix, but it has also introduced a
brand-new strategy for reaching out to potential clients in a way that is exciting, original, and
economical.

6. Effects on environment

Online sales not only save a significant number of money by cutting down on shop running
expenses, but they also significantly reduce the amount of gasoline needed for traditional
sales, which helps the environment preservation programme.

1.5 Initiatives by the Government to reduce the Digital skill gap

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  The "National Manufacturing Competitiveness Programme" promotes SMEs to use
information and communication technology tools and applications. The government
has already launched programmes to support SMEs in developing and hone their
digital capabilities. It entails tasks like creating online portals, offering regional
software solutions, educating staff members in e-literacy, and setting up e-readiness
centres. This programme also aids SMEs in obtaining international quality
certification and sensitises them to the usage of energy-efficient technology.

• The "Assistance to Training Institutions" project offers national level training institutions
operating under the Ministry of MSME a capital grant in order to improve their facilities and
establish programmes for the development of entrepreneurial skills. This initiative's major
goal is to motivate individuals, particularly rural young, to pursue self-employment in the
SME sector.

1.6 Challenges in adoption of Internet marketing by SMEs:

Some of the difficulties SMEs have while using online marketing include:

1. Threats to security and trust.

2. A lack of education.

3. A lack of computer literacy.

4. Internet technologies are being adopted slowly.

5. The initial cost of Internet technologies is high.

6. Small businesses based in rural regions lack knowledge about web marketing.

7. The government's incapacity to support and train SMEs.

8. The financial payback on internet technology investments.

9. A big majority of SMEs show little interest in web-based apps and sales platforms.

10. Lack of ICT skills.

CONCLUSION

Both the government and businesses in the private sector are taking many actions to solve the
issues with infrastructure and finances, which call for expensive solutions. The obstacles

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associated with digitalization are numerous. To close the digital skill gap, these can be
addressed through technological knowledge transfer, a method in which professionals
transmit technology to interested parties or organisations. SMEs are encouraged to become
digitally literate and train their workforce to acquire the requisite digital skills through current
governmental programmes like Digital India and Skill India.
Small and medium-sized businesses (SMEs) should be aware of the benefits that the Internet
may provide them, including interactive chances to connect with current clients and draw in
new ones. Businesses will continue to hone their online marketing strategies as the Internet
develops, reaching more prospective customers than ever.

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enterprises-msmes
2. http://www.gktoday.in/blog/current-definition-of-micro-small-and-medium-
enterprises
3. http://www.kvb.co.in/msme/definition.html
4. http://www.webopedia.com/TERM/I/internet_marketing.html
5. Ministry of Micro, Small, Medium Enterprises, Annual Reports
6. http://msme.gov.in/mob/home.aspx

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