THE IMPACT OF DIGITAL MARKETING STRATEGIES TO THE

PROFITABILITY OF SMALL SCALE BUSINESSES

In Partial Fulfillment of the Course Requirements

For the Degree Bachelor of Science in Business Administration

ABSTRACT
This study examined the impact of digital marketing strategies and practices to the

profitability of small scale businesses in municipality of Bayombong, Nueva Vizcaya

according to
 CHAPTER 1
THE PROBLEM AND ITS BACKGROUND

Introduction

The new way of promoting products or services is what we call now the “Digital

Marketing.” Nowadays, the Internet has opened the gateway of huge digital marketing

opportunities for businesses. By applying different channels of digital marketing,

businesses have the opportunity to share their products and services online and they can

also gain clients for their business by using channels on social media.
 Various concepts and definitions have been brought out in previous studies with

regards to digital marketing. One definition according to Nathan Research (2016) is that it

is marketing that utilizes electronic devices (computer) such as personal computers,

smartphones, cellphones, and consoles to involve the stakeholders to be part of the process.

Digital marketing techniques have the ability copying many marketing communications

aspects and traditional media channels and in so doing, they are able to extend the

marketing mix. However, the boundaries are blurred since digital technology is not only a

way of communication but it is also a technique of distribution. The flexibility provided by

the technology implies that it is highly complex (Jobber & Ellis-Chadwick, 2013).

Digital marketing encompasses all marketing efforts that use an electronic device or

the internet. Businesses leverage digital channels such as search engines, social media,

email, and their websites to connect with current and prospective customers (Lucy

Alexander, 2018). Social media plays a vital role in marketing and creating relationships

with customers. Small and large businesses are beginning to use social media as a means

of marketing. Digital marketing is one way of communicating value to your customers

using digital tools. Even people who were called dealer or reseller, they now prefer the

digital marketing using their social medias.

Digital Marketing can be understood as a well-targeted, conversion-oriented,

quantifiable, and interactive marketing of products or services by utilizing digital

innovation to achieve customers, and transform them into clients in a sustainable fashion.

The whole concept and functionalities of Digital Marketing are more competent, effective,

result-oriented and measurable, which make it very different from traditional

marketing (Ankit Soni, 2017). The difference of digital marketing from the traditional

marketing is that the traditional marketing lies on using newspaper, radio, t.v, billboards,

magazine, and direct mail. Those are the old ways of advertising products or services.

While the ways of digital marketing are search engine marketing, social media, blogging,

video creation, email marketing, and online pay per clicks advertising which way are

easier, less hassle and can really produce or attract customers.

Laura Lake (2018) said, that a digital marketing strategy is an important part of the

overall marketing strategy of a business. This is true whether or not a company is doing

business online. It is also true for a small, medium or large size company but especially

true for a small company. Small business marketing for a local company can include

many offline local advertising methods but needs to include a healthy portion of digital

marketing strategies to be successful and maximize sales in today's economy. A small

business that is doing most or all of its business online needs to embrace a digital

marketing strategy that helps at least online users.

Digital marketing is a marketing strategy that use technology to enhance an

organization’s ability to obtain more exposure and to invite more costumers. Companies

have sought to adapt best digital marketing strategies to obtain competitive advantage

over their rivals.

There are five main areas of online marketing that are of interest to a small

business. Some of them are more important to local, offline businesses, while others are

more effective with online businesses. Many businesses engage in all five areas of small

business marketing on the internet (Laura Lake, 2018).

The following are the top digital marketing strategies for small businesses:

1. Search Engine Marketing

This portion of marketing is critical for a small business. It gives the business a

chance to compete with larger companies by being visible in search engines. Since people

use search engines to find products both online and locally, it is important that the

company place high in search results for words that relate to what they are selling.

Professional Internet marketing firms offer this service under the name of search engine

optimization. They can make sure the company site is visible to those looking for the

product when using a search engine.

1. Local Search Marketing

Location-based marketing includes website optimization for search results, but

also, integrates a search engine's function of maps. This is especially true with Google,

where your business can be listed with mapping and address information, giving a

prospective customer what they need to visit your establishment. Your phone number and

website address can also be listed. Customer service will often be available to help

someone decide if they are interested in your product or service.

2. Content Marketing

This strategy revolves around giving prospective customer information about your

product or service, as well as information in general. Everyone is trying to sell, but those

that can inform are more likely to get sales. People will attribute a certain level of

expertise to a company, and this instills confidence in the consumer. Content

marketing in the past was often done with printed brochures and guidebooks, but today,

this can be done with articles and other forms of information on a business's website.

3. Social Media Marketing

This type of marketing can be tricky. Everyone talks about social media, but the

truth is, it can be difficult for companies to integrate social media with their business. The

type of media used, as well as how it is used, is dependent upon the type of business you

have. For some companies being in touch with their customers and giving them breaking

news can be an important element of success.

Other business, such as a local restaurant, have seen success using social media by

letting customers know of the latest specials and new additions to their menu. The most

important aspect of social media is to use it to strengthen a customer base to achieve

repeat sales.

4. Email Marketing

This form of marketing is crucial to a small business online or offline. Essentially

email marketing is about building a list of customers and prospective customers. This list

of names and emails are people who are interested in your business, and you know this to

be true because they have opted into this list themselves.

Perhaps they were offered future updates on products as well as coupons to sign

up. As this list grows, it becomes more valuable. Many marketing professionals consider

this to be, in the long run, the most important small business marketing strategy in the

long run.
 If you have a small business, you need to take the above five areas of digital

marketing into consideration. Formulate a plan, and combine it with your other marketing

efforts. Some of these areas of marketing will be more important and effective,

depending upon your business. All of them you can have professionals help you with or

outsource if you don't have the manpower to handle it.

Online marketing strategies that are often outsourced include social media, search

engine, and local search marketing, because unless you have time to dedicate it's difficult

to stay on the multiple changes that transpire when it comes to strategy. With content and

email marketing, you can do much of it yourself, but it never hurts to ask experts for

strategy advice to help get you started.

Statement of the Problem

Generally, the aim of the study is to investigate the impact of the digital marketing

strategies to the profitability of small scale businesses in Municipality of Bayombong,

Nueva Vizcaya.

Specially, it seeks to answer the following questions:

1. What is the profile of the respondents in terms of:

1.1 Age
 1.2 Gender

1.3 Educational attainment

1.4 Name of the business/company

1.5 Location

1.6 Years of operation

3. What are the digital marketing strategies used by the respondents?

3.1 Search Engine Marketing

3.2 Local Search Marketing

3.3 Content Marketing

3.4 Social Media Marketing

3.5 Email Marketing

4. What social media is most used by the respondents?

 Search Engines Marketing

4.1 Google

4.2 Bing

4.3 Yahoo

4.4 Ask.com

4.5 AOL.com

4.6 Baidu

4.7 Wolframalpha

4.8 DuckduckGo
 4.9 Internet Archive

4.10 Yandex.ru

 Local Search Marketing

4.1 Revlocal

 Content Marketing

4.1

 Social Media Marketing

4.1 Facebook

4.2 YouTube

4.3 Instagram

4.4 Twitter

4.5 Pinterest

4.6 LinkedIn

4.7 Snapchat

4.8 Gmail

 Email Marketing

4.1 Constant Contact

4.2 Drip

4.3 SendinBlue

4.4 ConvertKit

4.5 AWeber
 4.6 GetResponse

4.7 Mailchimp

5.. Is there a significant relationship among the independent and dependent variables?

Null Hypothesis

There is no significant relationship between the profile of the business owners and

their businesses and the impact of the digital marketing strategies to the profitability of

small scale businesses.

Conceptual and analytical framework

Independent Variable Dependent Variable

Profile Digital Marketing Strategies

 Age  Search Engine Marketing

 Gender  Local Search Marketing

 Educational attainment  Content Marketing

 Social Media Marketing

 Email Marketing
 Conceptual framework study

The study has two variables the independent which will describe the profile of the

respondent (age, gender, and educational attainment) and the business profile such as their

(location, and years of operation).

The second variable is dependent which comprises the impact of digital marketing

strategies to the profitability of small scale businesses in municipality of Bayombong

Nueva Vizcaya (Search Engine Marketing, Local Search Marketing, Content Marketing,
Social Media Marketing, and Email Marketing), but this research is going to focus about

the “Social Media Marketing”.

The result of the study will be based on the two variables. It will be purely a

qualitative research method with the use of questionnaires or survey as instruments to

identify their knowledge level with the topic “the impact of digital marketing strategies to

the profitability of small scale businesses”.

Significance of the Study

This study is useful to the following:

The business owners of Bayombong, Neva Vizcaya that they may read and find

out the impact of digital marketing strategies to their businesses in the future. Moreover,

this research or study will provide them enough information about digital marketing

strategies that will help their businesses improve and gain more profit.

The Business Education Students, College of Business Education, and PLT

College, Inc. From the findings of the study, students taking business course would have

an in-depth understanding on such type of marketing strategies and thus, will help them in

forming their own future business basing on the components discussed herewith.

The Future Researcher to serve as their reference or guide in any study related to

the topic and for them to be wise in decision making especially regarding forming a

business with the use of digital marketing strategies.

Scope and Delimitation

This study focuses on the impact of digital marketing strategies to the profitability

of small scale businesses in municipality of Bayombong, Nueva Vizcaya. 20 purposively

selected business persons who are using digital marketing strategies are chosen as

respondents. Covers the self-assessment of purposively