P-ISSN: 2808-0467
E-ISSN: 2808-5051
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THE USE OF DIGITAL MARKETING AND ITS IMPACT ON
INCREASING MSME SALES
Siti Nurul Khaerani
1
, Sudarmiatin
2
Faculty of Economics, State University of Malang, Malang, East Java, Indonesia
1
siti.nurul.2104139@students.um.ac.id
2
sudarmiatin.fe@um.ac.id
PAPER INFO ABSTRACT
Received: May
2022
Revised: May
2022
Approved: May
2022
Background: The increasing number of internet users provides opportunities
for MSMEs to use digital marketing as one of their marketing strategies.
There are several digital marketing platforms that can be used, including the
Web, SEO, Social Media and others.
Aim: This article discusses the use of digital marketing for MSMEs and the
impact of using digital marketing on increasing MSME sales.
Method: The research method used is qualitative research. With the number
of informants as many as 12 MSME owners who were interviewed with
different types of businesses.
Findings: The results show that social media is one of the most widely used
digital platforms by MSMEs. And give the impact of an increase in sales of
SMEs. In some MSMEs the increase in sales through online is no more than
traditional sales.
KEYWORDS
digital marketing, sales increase, MSMEs
INTRODUCTION
The rapid development of technology and continuous improvement cannot be separated
from aspects of human life. So at this time, digital technology plays an important role in almost
every organization (Setia et al., 2013). Advances in digital marketing tools such as the
emergence of mobile digital applications for marketing provide significant opportunities for
small and medium enterprises (Eze et al., 2020). Digital marketing is the application of
technology that offers businesses the opportunity to connect with clients on a regular basis
(Scharl et al., 2005). Digital marketing has a goal to offer new access to promotional and
advertising methods that have a big impact on attracting the attention of others, in this case
potential customers (Ištvanić et al., 2017).
This tool helps businesses, both small and large businesses to advertise their products
through the internet and helps advertisers contact potential customers anytime and anywhere
(Agostini & Nosella, 2020; Maduku et al., 2016; Samoilenko & Osei-Bryson, 2018). Since
digitization, and especially social media, is claimed to change consumer behavior (Kaplan &
Haenlein, 2010), Digitalization in its various forms is positively related to small business
growth, performance and competitiveness. Digital marketing and social media provide
opportunities for small businesses to attract new customers and reach existing customers more
efficiently (Taiminen & Karjaluoto, 2015). Although digitalization is not easy to integrate into
SME marketing strategies (Ray et al., 2020; Wonglimpiyarat, 2015) it provides an avenue that
enables organizations to share and connect with clients more efficiently (Eze et al., 2014).
Distinctive features of digital marketing include the capacity of personalization, making
business transactions secure, smooth and easy communication between organizations and
clients, therefore, digital platforms enable businesses to fulfill desired goals such as; access the
target audience, interactions with target audiences, emotions and customer transactions. This
The Use of Digital Marketing and Its Impact on Increasing MSME Sales
1055 Interdisciplinary Social Studies, 1(8), May 2022
platform allows users to access it at any time and guarantees a smooth interaction which gives
consumers the privilege of providing feedback by sending voice notes, texts and more (Eze et
al., 2020). In order to increase online sales, online retailers can provide convenient,
informative, and personalized experiences for various types of consumers and businesses
(Kotler & Keller, 2016).
Digital marketing utilizing social media channels provides MSMEs with new innovative
ways to interact with customers and is cost effective. With the tough competition faced by
MSMEs, both direct and indirect competitors. Many of the competitors are selling similar
products at lower prices. In turn, they offer various types of benefits to their customers. The
digital technologies adopted by organizations increase the ability to respond positively to
customer needs and, at the same time, improve customer-side operations. Digital technology
focuses on consumers and businesses, so at the same time, it helps to drive sales and increase
efficiency by reducing costs (Foroudi et al., 2017). Although Taiminen & Karjaluoto (2015)
confirms the assumption that many MSMEs do not use the full potential of new digital tools
and therefore do not fully take advantage of the opportunities they can bring.
Several studies related to the use of digital marketing in MSMEs have been discussed,
among others, by Taiminen & Karjaluoto (2015), Wardati & Mahendrawathi (2019), Christina
et al. (2019). However, research related to the use of digital marketing and its impact on
increasing sales needs further study. Currently, the number of internet users in Indonesia as of
January 2022, reached 204.7 million. This number covers 73.7% of Indonesia's total
population.This is one of the opportunities in implementing digital marketing.
This article contributes to the marketing sector related to how the use of digital marketing
has an impact on increasing MSME sales. There are two main questions posed in this article.
First, how to use digital marketing for SMEs in Mataram City who are members of the Lombok
Womanpreneur Club; second; how is the impact of using digital marketing on increasing sales
of the MSMEs.
METHOD
The research method used in this research is qualitative research. In general, qualitative
research aims to understand the case being studied more deeply and broadly regarding
information about the main phenomena or events explored in research, research subjects, and
research locations (Creswell, 2003). In this case,this research attempted to discover how to use
digital marketing channels for MSMEs in Mataram City who are members of the Lombok
Womanpreneur Club and how the use of digital marketing provides broad benefits to MSMEs.
The approach used in this research is a phenomenological approach.
The procedures for data collection through interviews, observation and documentation.
Informants were selected using a purposive sampling technique (Deliberate). The purposive
sampling technique is not random, the research subject is determined based on a certain
assessment (Sugiyono, 2019). This technique selects informants who are screened based on
certain criteria that are in accordance with the research. Informants are MSMEs who are
members of the Lombok Womanpreneur Club organization, and use digital channels in doing
marketing. Interviews were conducted in a semi-structured manner to 12 MSME owners with
different types of businesses.
The Use of Digital Marketing and Its Impact on Increasing MSME Sales
1056 Interdisciplinary Social Studies, 1(8), May 2022
Table 1. Name and Type of Business
No
SME name
Type of Business
1.
sooya
Soy Juice Drink
2.
Cipta Print
Printing service
3.
Hellobalita official
Children's Book Distribution
4.
Rumah Kaktus Lombok
Decorative plants
5.
Yoor Collection
Homemade Bed Sheet
6.
Shanty Healthy Beauty
Culinary Health and
7.
Dapur Bu Atiek
Beauty
8.
Zahrani hijab
Fashion (Clothing)
9.
Mecca Lombok
Self Manufactured
10.
Ogura_Ku Cake Lombok
Food (Cake&Cookies)
11.
Pawon Jaje
Wet Cakes and Pastries
12.
Lamone Carwash
Carwash & Home Service
Observations were made by observing how marketing was carried out on digital media
that the MSMEs used. While the documentation is by taking MSME marketing data such as
promotions on digital channels that MSMEs use such as on social media (Instagram, Whatsapp,
Facebook, etc.) which are used in marketing.
There are three types of activities in data analysis used in this study, namely data reduction,
data display, and conclusions (Miles et al., 2014). Data reduction means summarizing,
choosing the main things, focusing on the things that are important, looking for themes and
patterns and discarding what is considered unnecessary. Data display (data presentation) stage
after data reduction, in the form of a description or description, charts, relationships between
categories and the like. Drawing conclusions and verification is taking from the beginning of
data collection, flow, cause and effect or causality and other proportions.
RESULTS AND DISCUSSION
Use of Digital Marketing in MSMEs
Digital marketing according to Chaffey & Chadwick (2016) is a tool to achieve target
marketing through digital technology applications which include: desktops, mobile phones,
tablets, and other digital platforms.Digital marketing methods such as Search Engine
Optimization (SEO), Search Engine Marketing (SEM), Content Marketing, influencer
marketing, content automation, campaign marketing, data driven marketing, commerce
marketing, social media marketing, social media optimization, direct marketing, display
advertising e-books, and optical discs and games are becoming more common as technology
advances. Digital marketing now extends to non-Internet channels that provide digital media,
such as cell phones (SMS and MMS), callbacks, and cell phone ring tones on hold (Desai,
2019).
Website is the first step in doing online marketing and will be optimal if you have good
hosting with effective links. With effective links, consumers can see if the company provides
products that can be easily remembered by people who visit the website (Armstrong et al.,
2014). In addition to the website, there is search engine optimization (SEO) which is a long-
The Use of Digital Marketing and Its Impact on Increasing MSME Sales
1057 Interdisciplinary Social Studies, 1(8), May 2022
term continuous improvement of content and digital asset design with the aim of getting the
highest possible ranking on search engine pages (Key, 2017). Chaffey & Chadwick (2016)
claim that Search Engine Optimization (SEO) needs to be optimized to support digital
marketing activities. SEM is the placement of messages in search engines to encourage users
to visit websites.
Email marketing is also one of the digital platforms and is the act of sending emails directly
to prospects and customers with relevant and timely information (Olson et al., 2021).In
addition, there are also Content Marketing is the creation and promotion of content assets with
the aim of, among other things, generating brand and customer awareness. Channels that can
play a role in content marketing strategies such as Blog posts, E-Books and whitepapers, Info
graphics, online brochures (Desai, 2019).
Social media is one of the digital platforms that can be used in digital marketing. Like by
using Facebook, whatsapp, Twitter, Instagram and Telegram. It is very important to understand
that social media marketing not only allows users to communicate beyond local or social
boundaries, but also provides the possibility to share user-generated content such as photos and
videos and features such as reviews, feedback and ratings (Gulati, 2019).
The results of interviews with informants consisting of 12 MSME owners who are
members of the Lombok Womanpreneur Club, the use of digital platforms as a marketing
channel by MSMEs includes using Websites, Content Marketing, Email, SMS, Search Engine
Optimization (SEO), Facebook, Whatsapp, Twitter, Instagram, and Telegram. The following
table shows the use of the MSME digital platform.
Table 2. Business Name and Use of Digital Marketing Platform
No
Digital Marketing Channel
1.
Content Marketing, Email, SMS, Facebook, Whatsapp,
Instagram, Twitter, Telegram
2.
Email, SMS, Facebook,
Whatsapp, Telegram
3.
Website, Content Marketing, Email, Facebook, Whatsapp,
Instagram
4.
Content Marketing, Email, Facebook, Whatsapp, Instagram
5.
Content Marketing, Email, SEO, Facebook, Whatsapp,
Instagram
6.
SMS, Content Marketing, Email, Facebook, Whatsapp,
Instagram
7.
Facebook, Whatsapp, Instagram
8.
Content Marketing, SEO, Facebook, Whatsapp, Instagram,
Telegram
9.
Content Marketing, Email, Whatsapp, Instagram
10.
Website, Content Marketing, SMS, SEO, Facebook,
Whatsapp, Instagram
11.
Website, Email, SMS,
Whatsapp, Instagram, Telegram
The Use of Digital Marketing and Its Impact on Increasing MSME Sales
1058 Interdisciplinary Social Studies, 1(8), May 2022
12.
Website, Content Marketing, Email, SEO, Facebook,
Whatsapp, Instagram, Telegram
The table above illustrates that not all use the digital platform as a digital marketing
channel. As stated by the owner of the MSME Kitchen, Mrs Atiek, who is engaged in the
culinary field, she said: “I use digital media as a marketing tool, but it's limited to Facebook,
Whatsapp, Instagram. This media is more practical and easy to use. I think Facebook is the
right medium because many people use it, as well as Instagram and WhatsApp. Another reason
is because I have difficulty in funding and resources if I use anything other than that.”
Facebook, Whatsapp, and Instagram are the most widely used digital marketing channels
by informants. Of the 12 informants interviewed, 10 MSME owners said they used Facebook
as the media. Likewise with Instagram, as many as 11 informants use it. While Whatsapp is
the most used, all informants said they use Whatsapp in doing marketing. Practical reasons and
widely used by people are the main reasons for informants. In India 42% of Entrepreneurs
continue to use social media marketing as their primary form of digital marketing (Gulati,
2019). Currently, social media is still the main choice in digital marketing strategies. The
popularity of social media in the current era such as Facebook and Instagram still dominates.
By using social media accounts, sellers are trying to entice consumers to follow their platform.
The goal is that the greater the number of consumers who follow their platform, the easier it
will be for subsequent marketing processes such as distributing advertisements and sponsored
content (Kamal & Rafiah, 2017).
In addition to Facebook, Whatsapp, and Instagram, several MSMEs also use Websites,
Content Marketing, Email, SEO, and Telegram. The owner of the Lamone Carwash UMKM
which is engaged in Carwash & Home Service said: “I use a lot of digital media in doing
marketing besides Facebook, Whatsapp, and Instagram which are used by many people, I also
use Website, Content Marketing, Email, SEO, and Telegram. Because using many media allows
us to broaden our services or products to more consumers, and our opportunities to get a wider
market share.”
The use of Websites and Search Engine Optimization (SEO) is not carried out by all
MSME owners, only 4 MSME owners from 12 informants interviewed use Websites and SEO
as digital marketing platforms. Likewise, SMS and Telegram only 5 (five) SMEs use it. In
contrast to Content Marketing and Email, which are mostly used by MSMEs, 8 MSMEs use
the platform. Twitter is the least used digital marketing platform. Only 1 informant uses it as a
digital marketing channel. The blog is one of the digital platforms that none of the MSMEs use
as a marketing channel.
The Impact of Using Digital Marketing on Increasing MSME Sales
The use of digital marketing has an impact on MSMEs. Most digital marketing aims to
achieve several goals, including increasing market share and increasing sales revenue (Daud et
al., 2022). Like Social Media platforms there is a significant impact on small business
performance (Borah et al., 2022). Several authors identify, and measure Social Media returns
in terms of sales performance (Yang & Kankanhalli, 2014) or the contribution of marketing
ability to Social. According to MSME owners, they feel the benefits of using digital marketing
in marketing their products. As related to increased sales. From the results of interviews with
The Use of Digital Marketing and Its Impact on Increasing MSME Sales
1059 Interdisciplinary Social Studies, 1(8), May 2022
MSME owners, they said that there was an increase in sales using digital marketing. The owner
of MSME Ogura_Ku Cake Lombok who sells Cake N Cookies said: "I use digital media in
doing marketing, and sales have increased by 90 percent". Social media such as Facebook,
Whatsapp, Instagram are the social media that contributed the most to the increase in my
product sales.”
Of the 12 MSME owners interviewed, 9 people said that online sales revenue is more than
offline. However, it is different from the other 3 MSME owners who say that offline sales are
more than online. As stated by the owner of the Cipta Print UMKM which is engaged in
services, said: “I use email, SMS, facebook, Whatsapp in my online sales, and increase sales
by 30%, but online sales are not much more than offline sales.”
The findings in this article are different from the findings in the writings of Wardati &
Mahendrawathi (2019), that the impact of social media obtained is mostly related to the sales
and marketing process of SMEs, such as relationships between companies and customers,
companies and stakeholders, companies and business partners, and relationships between
companies and business partners. There is nothing in the article that explains that the use of
social media has an effect on increasing MSME sales.
In addition to an increase in sales, digital marketing also has other impacts, such as the
repurchase of their goods by consumers. From 12 MSME owners say that consumers
repurchase their goods. Rumah Kaktus Lombok MSME owner said: "By selling digital
marketing, it gives me benefits, because consumers who buy through digital media buy the
products that I sell again."
CONCLUSION
Website, Content Marketing, Email, SMS, Search Engine Optimization (SEO), Facebook,
WhatsApp, Twitter, Instagram and Telegram are digital marketing platforms used by MSMEs
who are members of the Lombok Womanpreneur Club. Based on the results of interviews with
MSME owners, there is not a single MSME that uses all of these platforms at once in doing
digital marketing. Social media such as Facebook, WhatsApp and Instagram are the most
widely used social media platforms. Twitter is the least used digital marketing platform. The
blog is one of the digital platforms that none of the MSMEs use.
Digital marketing has an impact on increasing sales, this was conveyed by all informants
who stated that there was an increase in sales using digital marketing. Social media such as
Facebook, Instagram and WhatsApp provide the most increase in sales than any other digital
platform. However, in some MSMEs the increase in online sales is no more than traditional
sales.
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