EFFECTS OF DIGITAL MARKETING STRATEGY TO SMALL BUSINESSES IN THE

MUNICIPALITY OF CUYO, PALAWAN

_______________________________________________________

A Research Proposal

Presented to the Faculty of

Bachelor of Science in Business Administration

PSU – PCAT

Cuyo, Palawan

______________________________________________________

In Partial Fulfillment

Of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Financial Management

_____________________________________________________

By:

DE LA TORRE, SHARALYN, A.

BAAC, MARK JERALD

MAGBUKID, SHEILLA MAE

PALANOG, JENNY ROSE

ZUMARRAGA, MARICEL, G.
 Chapter I

INTRODUCTION

This chapter presents the background of study, statement of the problem, significance of

the study, scope and delimitation of the study and definition of terms, in order to gain through

understanding of the study.

BACKGROUND OF STUDY

Marketing is a significant factor that impacts a business’ marketing performance and

competitiveness (Sadiku-Dushi et al., 2019). Digital tools, such as Internet, mobile devices, and

social media have a prominent role in a business’ marketing strategy (Michopoulou & Moisa,

2019). Business use digital tools such as social media to improve their performance, increase

profitability, and thereby achieve a competitive advantage ( Etter et al., 2019; Michopoulou &

Moisa 2019) . However, to be effective, digital marketing requires a well- executed strategy

(Negoita et al., 2018). Existing knowledge and practices have been challenged due to the strong

and fast paced digital developments that keep changing markets. As changes in marketing

environments occur, consumer needs change and marketers must find appropriate

communication needs to satisfy their customers. (Davidavicience et al., 2019)

Practical use of various online tools by business leaders leads to new opportunities

(Gaikwad & Kate, 2016). The Internet is a trusted source that consumers turn to before

purchasing products and services (Smith, 2017). Business leaders use the Internet as a marketing

tool for financial success and to aid in fostering communication with the visibility and channels

of online sales and social media advertising becoming 2 robust ways to reach various markets for

business expansion (Banica, Brinzea, & Radulescu, 2015). In 2013, there were 28.8 million

small businesses, representing 99.7% of all organizations (U.S. Small Business Administration,
2016). According to Jones, Borgman, and Ulusoy (2015), consumers are using Internet

technologies in increasing numbers, which presents opportunities for businesses to reach and

connect with more people through websites and social media sites. Smith (2017) discovered 69%

of consumers use social media to share information about products and services. However,

succeeding with online marketing requires resources to create quality content and build

followers. The benefits of online marketing include: (a) economic pricing, (b) the targeting of

diverse demographics at once, (c) providing products and services conveniently, and (d) allowing

customers to easily research products and services to expedite the purchasing decision (Durmaz

& Efendioglu, 2016). Online marketing provides opportunities for businesses to gain economic

value via collaboration with stakeholders, customers, and employees (Purkayastha & Sharma,

2016). Small retail business leaders must incorporate online marketing strategies into their

business plan to decrease the possibility of failure, grow their business, and become more

profitable

Digital marketing is the use of internet, social media, search engines, mobile devices,

display advertising and other channels to reach consumers. So, if an enterprise cannot be found

in social media, then it does not exist, seems to depict consumer behaviour nowadays. It should

be clear that the utilization of digital channels is imperative for brands, and it should be advanced

in to small businesses if they want to stay viable and grow.

At present, the Municipality of Cuyo in Palawan Province has _____ registered small

businesses ranging from wholesale/retail, restaurants and pension houses, and other service

industries. The result of this study will help the local business owners of Cuyo have an idea on

how their businesses could grow with the aid of digital marketing. It may also open significant

opportunities for the Municipality of Cuyo to grow economically. Currently, there is no existing
study on the effects of digital marketing in Cuyo. Therefore, the researchers have chosen this

topic as the focal point of their study.

STATEMENT OF THE PROBLEM

This study aims to determine the effects of digital marketing strategy to all small

businesses in Cuyo, Palawan. Specifically, it will seek answer to the following questions:

1. What are the demographic profiles of the business owners?

2. Do the business owners deploy digital marketing in their business?

3. What are the digital marketing strategies do business owners used?

SIGNIFICANCE OF THE STUDY

This study is significant because through this we can determine the effects of digital

marketing to small businesses here in Cuyo, Palawan and business owners will gain further

knowledge and skills in promoting their business, products and services online, also on how to

use digital marketing strategy properly. This is specifically significant to the following:

For the community, if they will be given an opportunity to read this research they will

have an insight regarding of the effects of digital marketing strategy to their business.

For the schools, if the researchers will come up with a good result it will benefit the

institution, teachers and students.

For the teachers, it will help to improve their teaching performance and also awaken their

business ideas if they planning to start a business in the future.

 For the student, through this study they can develop their ability and skills on how to start

a business in the future; also they enable to know what marketing strategy they will use

effectively.

For the parents, it will help them to encourage their children even their relatives to be

more creative and resourceful regarding on their business.

For the researchers and future researchers, this study will help them to find out the effects

of digital marketing strategy and also on how to use digital marketing effectively to improve

marketing analysis and make the business more profitable.

The findings of this study might be valuable to small businesses by providing information

demonstrating the potential importance of digital marketing. The results from this study reveal

successful digital marketing strategies that could be used to aid in purchasing decisions and the

creation of relationships between small businesses and consumers. Researchers have discovered

business leaders who create an online presence can benefit from free media, continue to generate

sales, and improve local economies.

SCOPE AND DELIMITATION OF THE STUDY

This study titled “EFFECTS OF DIGITAL MARKETING STRATEGY TO THE

SMALL BUSINESS IN THE MUNICIPALITY OF CUYO, PALAWAN”. The study will

covered small business owners, conducted in selected barangays in Cuyo, Palawan, with a total

respondents of 50 small business owners. This will be started on March 2023 and will be

completed on ______________________.

DEFINITION OF TERMS
Business described as an organization or enterprising entity that engages in professional,

commercial or industrial activities. (www.m.economictimes.com). In this study, it refers to the

specific variable in the said research.

Business Owner is a term that refers to individuals who establish and operate an entity that is

engaged in commercial, industrial or professional activities with the purpose of deriving profits

from its successful operations. (www.fundsnetservices.com).In this study, it refers to the

respondents of the research study.

Devices are objects or system that has a specific purpose or intention, like electronic

communication devices like cellphones. But in the phrase “left to your own devices”, it means

your ability to figure out alone or entertain. (www.vocabulary.com).In this study, it refers to the

technology or tools those small business owners used in uploading their business products and

services.

Digital Marketing is the marketing of products and services using digital technologies. It is an

umbrella term that encompasses strategies like social media marketing, search engine

optimization, email marketing, SMS marketing, etc. ( https://emeritus.org). In this study, it refers

to main variable of the research study.

Internet Marketing refers to the strategies used to market products and services online and

through other digital means such as email, blogging, paid promotions, and etc.

(https://www.thebalancemoney.com) . In this study, it refers to the digital marketing strategy that

business owners used to promote product and services.

Mobile Phone Marketing is a digital marketing strategy that uses multiple channels to engage

consumers on smartphones, tablets and other mobile devices. (https://peertopeermarketing.com).

In this study, it refers to the marketing strategy that the business owners used.
Questionnaire is a list of question or items used to gather data from respondents about their

attitudes, experience, or opinions. (https://www.scribbr.com). In this study, it refers to the tool

used by the researchers to conduct a survey.

Social Media Marketing is a powerful way for businesses of all sizes to reach prospects and

costumers.(www.wordstream.com). In this study, it also refers to the marketing strategy that the

business owners adopted.

Chapter II

REVIEW OF LITERATURE
 Afrina Yasmin et al. (2015) in their article have stated that 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. Their article focuses on the importance of digital marketing for both

marketers and consumers. They examine the effect of digital marketing on the firms‟ sales.

Additionally, the differences between traditional marketing and digital marketing are presented.

On their 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.

Collected data has been analysed with the help of various statistical tools and techniques.

Rajiv Kaushik (2016) in his article digital marketing is rising in India with fast pace.

Many Indian companies are using digital marketing for competitive advantage. Success of

marketing campaign cannot be solely achieved by digital marketing only. Rather for success of

any marketing campaign it should fully harness the capabilities of various marketing techniques

available within both the traditional and modern marketing. Start-ups who use digital marketing

many times got failed. On his study shows precautions to be taken for effective implementation

of digital marketing to reap tremendous potential to increase in sales.

Santanu K. Das & Dr. Gouri S. L. (2016) has explained in their article the world has

transitioned into a digital environment. For today’s businesses, it is imperative to have a website

and use the web as a means to interact with their customers. There are some successful

traditional marketing strategies, particularly if you are reaching a largely local audience, but it is

important to take advantage of digital marketing so as to keep up in today’s world. Digital

marketing is also known as Internet marketing, but their actual processes differ, as digital

marketing is considered more targeted, measurable and interactive. It includes Internet marketing

techniques, such as search engine optimization (SEO), search engine marketing (SEM) and link

building. It also extends to non-Internet channels that provide digital media, such as short

messaging service (SMS), multimedia messaging service (MMS), call-back and on-hold mobile

ring tones, e–books, optical disks and games. Digital marketing is a new end 21st century tool of

marketing. Their research paper describes the different types of digital marketing techniques like

SEO, SEM, SMM, PPC etc. Their paper addresses importance and risk factors associated with

digital marketing. It also gives digital marketing tips for businesses.

Yakup D. & Ibrahim H. E.’s study (2016) tried to explain digital marketing periods and

advantages, experienced transition and difference between traditional and digital marketing.

Abstract-Lately, with the information technology improvements and broad band internet service

spreading speed of access to shopping sites get high. Because of these changes, companies

unavoidably entered to digital environment. Thus, while communication rules change, field and

definition of marketing changes too. With the development of IT technologies, traditional

marketing methods leave sits place to digital day by day. Companies which follow technology

can easily communicate with customers interactively while providing products or services. Like

in the traditional marketing, in digital marketing, building well communication with customers,

deter mining their needs and requests are crucial. While companies using digital marketing make

difference with dual communication, others who don't get involved in this race, become

distanced from competition gradually. The biggest advantage of digital marketing is reaching the

target audience in right way with using social media and search engines.
 The article of P.K. Kannan&Hongshuang Alice Li (2016) has suggested develop and

describe a framework for research in digital marketing that highlights the touch points in the

marketing process as well as in the marketing strategy process where digital technologies are

having and will have a significant impact. Using the framework we organize the developments

and extant research around the elements and touch points comprising the framework and review

the research literature in the broadly defined digital marketing space. They outline the evolving

issues in and around the touch points and associated questions for future research. Finally, they

integrate these identified questions and set a research agenda for future research in digital

marketing to examine the issues from the perspective of the firm.

Pineiro-Otero &MartínezRolán (2016) examined the best digital marketing strategies.

Their study revealed several digital marketing strategies that are useful to companies, businesses,

non-profits, educational facilities and other professional areas. The literature pointed clearly in

the direction of combining technology with many aspects of traditional marketing ideology. The

clear difference between traditional marketing and digital marketing as discussed by the author,

is the strategic shift between the focus being placed on the customer; as opposed to the product.

The article of D.M. Arvind& Shankar Narayan Rao (2017) has stated that digital

marketing has created a huge buzz in today’s world. It is very popular in the younger

generations, but the middle and the older generations are also not untouched by the wave of its

scope. Digital and social media are now becoming the new barometer to gauge the popularity of

a campaign before it is released on mass media. To keep up with consumers' digital advances,

retailers are becoming savvier, implementing strategies and programs via smart phones, tablets

and other digital venues. Digital marketing can take the form of push messaging, in-store digital

signage, location-based promotions, email messaging and much more. Their paper tries in
understanding various aspects of digital marketing while connecting with younger audience the

research is also important to identify Market size, growth and Market Potential of Big Bazaar.

The research shows future Scenario of Big Bazaar in current perspective.

S. Nazimsha&M. Rajeswari’s investigation (2017) showed the significance of

computerized media showcasing in display age focusing on the essential and optional

information gathered. Advertising methods where associations can see how a campaign is

performing continuously, for instance, what is being seen, how regularly, whatever degree;

additionally bits of knowledge related to bargains transformation and procedures related with it

are called progressed exhibiting. Reviews taken obviously demonstrate that individuals lean

toward ads as a more powerful strategy for promoting an item. Indian clients require redress data

about an item and they search for more information about quality, cost and look for customer

reviews before acquiring a thing. Advancements make high impact on a making help in Indian

customers. Indian purchasers have a tendency to go online for acquisition. They are pulled in to

go online for electronic things and garments. Current examples in Indian youth and young

Indians are seeing the T.V programs through online sections. The essential reason may be dull;

they can watch programs which they had skipped due to a couple of reasons. Similar things

occurring for the day by day paper moreover, people support online news doors as they don't

need to sit tight for consistently day by day papers.

P.Sathya (2017) has studied the digital marketing is the avenue of electronic

communication which is used by the marketers to endorse the goods and the services towards the

marketplace. The supreme purpose of the digital marketing is concerned with consumers and

allows the customers to intermingle with the product by virtue of digital media. This editorial
concentrates on the magnitude of digital promotion for both customers and marketers. Scrutinize

the result of digital marketing on the base of firm’s sales. 100 respondents’ opinion are collected

to get the clear picture about the present study.

The study of Ahmad Bin Yamin (2017) shows the impact of digital marketing on

behavioural prospect of consumers of Bangladesh. For conducting their study, a sample of

Bangladeshi consumers are surveyed to attain their behavioural pattern on digital marketing.

Modern day marketing has been going through a radical change. Fast moving marketing trends

based on the growth and innovation of new technologies as well as portable communication

devices influencing the customer behaviour significantly. A well designed marketing plan with

specific digital marketing tools is the demand in the integrated marketing communication plan

for this tech friendly environment. High speed internet connectivity brings massive number of

young crowd in social media indicating marketer should be more focused and concentrated in

digital marketing tools for effective and efficient targeting of market as well as to achieve other

organizational goals.

Sivasankaran (2017) in his article has stated that digital marketing has posed many

challenges to the marketer in the retail segment. The present generation is more fascinated with

the online shopping than the conventional buying. The marketers are forced to introduce the

innovative way of selling due to the pressure of the younger generations buying behaviour. The

buying behaviour and behavioural pattern of youth has as greater influence in the purchasing

behaviour, hence in this study, “Digital marketing and its impact on buying behaviour of youth is

focused as the core issue. His study reveals that most of the youngsters of the present generation

have access to the digital media but they lack the awareness about its optimum utilization.
 Kingsnorth (2017) shared that digital marketing and business strategy are concepts that

should be integrated and grow together. Further research into specific digital marketing

strategies, would be a valuable contribution to the field of digital marketing and current body of

work. In depth, qualitative and quantitative analysis would provide supporting evidence of the

effectiveness or ineffectiveness of specific strategies. Further comparative studies between

traditional marketing and digital marketing would give researchers and companies a better

understanding of differences between the two approaches. Digital marketing is an innovative,

influential contribution to the field of marketing.

Marin Istvanic et al. (2017) have explained how promotion of products has become an

increasingly important component in the new digital age, mostly thanks to digital marketing. The

traditional form of marketing is lagging behind digital marketing, which offers users new

opportunities like personalized messages or answers to a search query. There are several ways to

advertise on the internet, and in this paper, ways and tools will be presented that allow digital

advertising as well as their advantages and disadvantages. Specifically, search engine

optimization, search engine marketing, display advertising, social networking marketing and e-

mail marketing will be discussed. Also, the goal of the paper is to enable more efficient creation

and implementation of similar contents in new business environments through an insight into

internet advertising, social and business networks.

M. Shirisha (2018) has stated that digital marketing is the fastest e-Commerce solution

available. Consumers can buy or sell fast in this marketing strategy. They can reach out

maximum audience or customer with the help of digital marketing and can do that fast. It really

plays an important role in modern commerce system. This system makes the business faster and

more accurate. Digital marketing is infinitely more affordable than traditional offline marketing
methods. But one of the main benefits of conducting marketing digitally is the ease with which

results can be tracked and monitored. Rather than conducting expensive customer research,

sellers can quickly view customer response rates and measure the success of their marketing

campaign in real-time, enabling them to plan more effectively for the next one. The author’s

paper made an attempt to highlight the importance of digital marketing in the new era.

Charles Gibson (2018) has explained in their article the rise in popularity of organizations

integrating technology into their marketing strategy, directs attention to the need for an in-depth

review of digital marketing strategies. Making a strategic shift to client-centred marketing

strategies, provide businesses the opportunity to engage in a new era of innovative marketing

practices, that use digital marketing to meet their primary marketing requirements. A literature

review of the most effective digital marketing approaches; provide companies with valuable

tools to target a larger audience, using a combination of emerging technologies and some aspects

of traditional marketing. The present study provided individuals, companies, organizations,

businesses and researchers, with digital marketing strategies to increase visibility to their target

market.

Ivan Wibisurya (2018) this research sought the enhancement effect of timing in several

features on the customers attitude toward LBA and purchase intention. The features used were

the content appeal, interactivity, control, attitude toward advertising in general, customization,

and intrusiveness. This research was a conclusive study with descriptive design. Data collection

was done by offline survey with 160 respondents who had ever received LBA in two different

conditions. Meanwhile, data analysis was conducted using Structural Equation Modelling

(SEM). The research shows several results. First, content appeal, control, and customization have

significant and positive effects on attitude toward LBA. Second, attitude toward LBA has
significant and positive effect on customers purchase intention. Third, timing enhances the

positive effect of customization on attitude toward LBA. Last, timing also enhances the positive

effect of attitude toward LBA on customers purchase intention.

Sanjay Bhayani & Nishant V. Vachhan (2018) the current paper recognizes the

differences in consumer opinions by availing distinguished services of traditional as well as

internet marketing strategies. Internet is changing ways to reach consumer fast and is a more

convenient way than customary means of marketing. Internet offers 24x7, 365 days a year web

facility. This is more convenient for consumers these days. Consumers are becoming more

Information Technology (IT) savvy in their searching as well as purchasing preferences. No

doubt, ecommerce is not yet considered safe in India, but cyber has a highly vibrant and potential

market in coming days to win eyeballs of Indians.

Megha Grover et al, (2019) in their research identified the role of digital marketing in

start-ups. The study employs a descriptive research design. The research method used is a

questionnaire, the population being examined is start-ups, and the variables being studied are

Digital Marketing and Start-ups. For this study, a sample size of 61 is used. The majority of start-

ups stated that the importance of digital marketing in start-ups is that it helps to advertise

products/services at a much lower cost than traditional marketing, that their brand reaches

prospective clients faster than their physical presence, and that it also helps to drive sales. 47.5

percent of new businesses utilize social media to promote their product or service

J. Junanidi et al, (2020) in their article entitled, Impact of Digital Marketing on the

Growth of E-service Sales, concentrates on the reasons for constructing the thought of E-
advertising. The article mentioned the sources of digital marketing are social media marketing,

digital display advertising, mobile marketing, Viral marketing, and Email marketing.

RELATED STUDIES

This research project attempted to address the challenge of using the web and social

media effectively with a focus on website and social media promotion. Our sample consisted of

small businesses in the mountains of Maine. We constructed a web portal to identify businesses

for the study. We surveyed 26 businesses about their marketing strategy, perceptions, and

limitations. Finally we interviewed five managers/owners in depth. The study led to several

significant findings. First, this research demonstrates that the web and social media represent a

potential vehicle to help small businesses create better brand awareness, better relationships with

customers, and increase sales via these mechanisms. These small business managers understand

the important role of the internet and social media in, for example, developing the intangible

relationships with customers and creating a market presence in order to remain competitive. Our

second finding is that these small business men and women face several constraints or hurdles.

Maintaining a web and social media presence takes both time and knowledge. All of these

managers have limited resources in terms of staff and money, and their own time is scarce. Thus,

we found a range of knowledge and utilization of the internet and social media. In some cases,

the managers know that they need to increase awareness but are not sure how to do it. It takes

time and dedication to provide original, interesting content on a regular basis and augment this

with more traditional marketing techniques to create awareness within the target market. Finally,

it is clear that these businesses need help. They could clearly benefit from improved use of the

internet and social media individually and collaboratively. It is important to note that despite
facing multiple constraints (knowledge, time, finances), what they do with their limited resources

is remarkable. But our research suggests that there is a role for training and consulting to help

these businesses overcome their lack of knowledge and resources. The positive aspect is that it

would not take a huge investment to help them. This research has a number of limitations. The

web portal and social media sites project covered a relatively small time frame, approximately

three months from June through August 2012. The results showed that this is not a sufficient

time frame to 626 JSBED 22,4 develop the needed reach via a website and social media.

Furthermore, certain outcomes of social media, specifically the long-term ones such as

relationship development with customers, cannot be measured easily in such a short time.

Financial resources prevented supplementing the online promotional campaign with paid media

advertising to drive target market customers to the website and social media sites. Another

limitation of this study was the small sample size, making it impossible to draw any statistically

significant conclusions. Our findings also are limited by a lack of objective quantifiable

measures. In most cases such small businesses are loathe to share such data. The business may be

the only such business in a region, and they rightly are concerned about keeping private

information private. But, probably a bigger factor was that these businesses, run often by an

individual or a small staff, did not have the data we needed. They do not have accurate and

complete records about inquiries and the source of those inquiries, follow-ups, web page hits,

and so on. Thus any quantified measurement of ROI was impossible. However, the businesses

that we spoke to in-depth did suggest a link between business success and web and social media

strategies. In future research we would like to identify a series of measures of success and follow

a cohort of businesses over time as they adopt various social media tools. Such measures of

success could be return on assets and investment, inquiries, sales and bookings, website visits,
and so on. We would also like to explore the value of small business collaborations, such as the

use of creative sales promotional techniques involving synergistic collaborations between small

businesses and organizations to create unique value-based packages. Additionally, future

research would benefit from comparing the utilization of the web technology and the social

media by small business in both developed and underdeveloped regions. ( Nory Jones, Richard

Bongman and Ebru Ulosoy 2015 )

According to Artur Sawick 2016 digital revolution has changed the companies’

approach to a consumer drastically. Thanks to the Internet, a consumer is capable of analyzing a

price, according to circulating opinions, and sometimes even of dictating it. Development of

digital technologies has lead to emergence of a cyber consumer and cyber-business. Digital

revolution enables implementation of new models of relationships with consumers, what is a

challenge for enterprises, which are willing to increase their market share. Smartphones and

social media exerted certain impact on dynamic development of a digital marketing. Therefore,

manners of reaching potential clients through mobile phones and social networks are current

communication channels, which can build a relationship with a customer, thus increasing sales.

In the article, the author presented the essence of digital marketing together with its assets, which

can be of no meaning for an enterprise, which is planning to cut on the customer service costs,

hence improving profits and optimizing the sales processes. Digital marketing should be

considered more broadly than Internet marketing. Digital marketing is located not only on the

Internet, but also in electronics, software, etc., which the device/user uses to exchange data.

Therefore, digital marketing combines digital and network technologies, thanks to what a man

can communicate not only through a mobile network but also TV. Broad reach enables the

enterprises to function on numerous electronic platforms. Summing up, it may be concluded that
digital marketing is a modern concept of marketing, which is well-known in the world of new

technologies. Digital marketing enables the persons dealing with these issues to select customers

in a more precise manner than previously. Therefore, a product/service can be better adjusted to

individual preferences. Digital marketing “makes life easier”, when compared to traditional

marketing. For the Internet users, websites are no longer just presentations of offers, but they

pose a part of their lives, the elements which the persons dealing with marketing use to

communicate with a potential client.

Based on the study of Sajid, Bus Eco J 2016) social media nowadays is among the ‘best

possibilities available’ to an item to get in touch with potential customers. Community social

networking websites are the method to interact socially. These new media win the believe in of

customers by linking with them at a deeper level. Community online marketing is the new

mantra for several manufacturers since early a season ago. Promoters are considering many

different social media possibilities and beginning to apply new social projects at a higher rate

than ever before. Community online marketing and the companies that utilize it have become

more sophisticated. One cannot afford to have no existence on the social programs if the

competitor is creating waves with its solutions and items. The blast of social media trend is as

amazing as that and the speed at which it is improving is frustrating. International companies

have identified social media promotion as a potential promotion system, used them with

enhancements to power their marketing with social media promotion. This paper discusses about

the ideas of social media and social media promotion and other aspects like the development and

advantages, aspect and importance of social media in promotion, social media promotion

methods. It also presents an outline on social media promotion in Bangladesh. There is no

escaping social media these days, either for people or for companies. Nowadays, it is impossible
to separate social media from the online. The social media discussion is no longer considered a

Web 2.0 fad-it is going on in homes, small companies and business boardrooms, and extending

its achieve into the non - profit, education and health sectors. From feeling excitement, novelty,

bewilderment, and overwhelmed, a lot more people now speak of social media as basically

another route or tactic. Blogging can have a very positive effect on your Company’s marketing

and development. As per the Hubspot report, Customers with weblogs gathered 68% more brings

than clients without weblogs. It is imperative to know that nowadays, social media have

exponential potential. They are in an ever-growing online network of those who discuss,

comment, participate, discuss and create. Whether you are an individual, a start - up, small

organization or a huge corporation, an online business and an on-going discussion with your

constituents is a baseline requirement-and will devote a while and skills. Companies are

diverting resources and rethinking their conventional outreach methods. And as the social media

trend dissipates into the vast ocean of connected encounters, the word itself will become an entry

in dictionaries and encyclopedias and we will embark on a new era of information, accessibility

and encounters unbound by distance, time or physical walls. It's time that every organization

adopts social media and takes it seriously!

This paper offers views on some current and future trends in marketing. The content is

based on recent literature and on what is happening in the business world. The paper is based on

secondary data. The paper is based on extant literature and internet sources. The various articles,

researches, reports, newspapers, magazines, various websites and the information on internet

have been studied. We experience a radical change in India towards the digitalization. The

consumer are looking and searching more on internet to find the best deal form the sellers around

India as compared to traditional or conventional methods. In this study, we acknowledged that

businesses can really benefit from Digital Marketing such as search engine optimization (SEO),

search engine marketing (SEM), content marketing, influencer marketing, content automation,

ecommerce marketing, campaign marketing, and social media marketing, social media

optimization, e-mail direct marketing, display advertising, e–books, optical disks and games and

are becoming more and more common in our advancing technology. It is demonstrated that we

all are connected through whatsapp and facebook and the increasing use of social media is

creating new opportunities for digital marketers to attract the customers through digital platform.

Awareness of consumer’s motives is important because it provides a deeper understanding of

what influences users to create content about a brand or store. Digital marketing is cost effective

and having a great commercial impact on the business. Based on this study, it can further be

argued that knowing which social media sites a company’s target market utilizes is another key

factor in guaranteeing that online marketing will be successful. The effectiveness of Internet

marketing with respect to different business can be analysed. The study can further be extended

to compare the internet marketing techniques with specific to various businesses. (Madhu Bala,

Deepak Verma 2018)

The researchers identify the main objective of the study was to examine the effect of

digital marketing on the performance of MSMEs in Kenya. The study was guided by positivism

research philosophy. It utilized a descriptive survey design. The study population included 8,526

licensed MSMEs in Tharaka-Nithi County. Stratified sampling and random sampling techniques

were employed to arrive at the study sample. Data was collected using questionnaires.

Quantitative data was analysed using both the descriptive and inferential statistics. The

descriptive statistics included frequency distributions, mean and measures of dispersion while the

inferential statistics were t-test, multiple regression analysis, Karl-Pearson correlation coefficient
and F-test. The findings of this study revealed that digital marketing accounted for 38.8% of the

variation in performance of MSMEs. The study further showed a strong positive correlation

between digital marketing and performance of MSMEs. The descriptive findings on digital

marketing and performance of MSMEs ascertained that a majority of MSME’s owners and

managers that utilized digital marketing perceived the performance of their firms to be growing.

The bivariate regression findings further revealed that digital marketing had a significant positive

effect on the performance of MSMEs. This study recommends that owners/managers of MSMEs

in Kenya should embrace digital marketing as a strategy towards improved performance.

Embedded on the high mobile phone penetration and improved internet connectivity in Kenya,

coupled with vibrant and easy to use social media platforms, entrepreneurs in Kenya should

position such tools for marketing purposes. (Kimathi Doreen Kawira, Prof. Elegwa Mukulu &

Prof. Romanus Odhiambo 2019 )

Business plays a special role in the mechanism of sustainable economic development,

since it provides not only the realization of innovative potential, but also the creation of

decentralized jobs, as well as additional revenues to budgets of different levels. Periods of

economic instability for small business at the local level are a big challenge, because unlike large

network structures, small business does not have the ability to diversify risks due to economies

of scale. Changing the vector of the national economy development has a special impact on small

business, which in developed countries is a driver of economic development. Thus, the

digitalization of the economic system entails fundamental changes in the processes of value-

added formation: industries are being modernized, trade and procurement procedures, related

financial and logistics operations are changing, and consumption patterns are changing against

the background of penetration of information technologies. The article considers two key
aspects: “small business”, “digitalization of the economic system”. The concept of “digital

economy” is considered, its key elements, distinctive features, level of development in various

countries are defined. The authors also clarify the distinctive features and structure of small

business in the Russian Federation. A comparative analysis of the share of small business in

some countries is given, and a model for the functioning of small business at the regional level is

described. The authors identify the problems and prospects for the development of small

business in a digital economy. The article tackles the issues of the impact of the digital economy

on the development of small business and the role of education in this process. The article

formulates the main trends of digital transformation that have a significant role for small

business at the regional level; the essence of this influence is detailed, possible barriers, new

challenges and prospects for the development of small business are indicated. Small business

involves the development of a set of marketing, trading, industrial, transport and intermediary

systems, which allow the local economy to change its structure, developing in various functional

areas. The experience of leading European countries confirms the role of small business in the

economic system as a whole. The current state of the small business does not correspond to the

objectives set for the national economy, which actualizes the task of creating conditions for its

hyperactive growth. At the same time, small business is the most sensitive to any changes in the

external environment and falls under the significant influence of the digitalization of the

economic space. Changes in the production structure and the expansion of the boundaries of the

entity’s activities in the economic system have the greatest influence on small business through

the universal development of the industrial Internet and cloud technologies. (N.V. Molotkova,

D.L. Khazanova and E.V. Ivanova 2019)

 The article discusses the impact of digital marketing on modern entrepreneurship, as well

as the main tasks in the formation of the business structure. Predictions of rising consumer power

in the digital age leading up to the turn of the century were bolstered by the advent of the Internet

and then reignited by social media. Changes in consumer behaviour require firms to rethink their

marketing strategies in the digital sphere. Currently, much of the related research focuses more

on the client than the firm. This study uses the firm's perspective to facilitate understanding of

digital marketing and the use of social media, as well as its benefits and inhibitors. The second

generation of Internet applications enhances marketing efforts by allowing firms to introduce

innovative forms of communication and co-create content with their customers. Firms

participation in digital marketing can be classified according to the perceived benefits and uses

of digital marketing. To improve engagement with digital marketing, marketers need to focus on

relationship-based interactions with their customers. This article demonstrates how some firms

are already achieving just that. Digital marketing is based on internet channels with the highest

frequency of use, which are dynamic, they can change from year to year and are always

influenced by market trends. In particular, digital marketing uses regular review, analysis,

interpretation, promotion process and helps to establish strong consumer-brand relationships.

The impact of this type of unconventional marketing has been enormous, affecting sales and the

number of customers, at best the commercial processes. (Kenzhegul Bizhanoval, Arafat

Mamyrbekov , Ilkhom Umarov , Akmaral Orazymbetova , and Aziza Khairullaeva 2019 )

Tsopatsa Bodoine (2020) show evidence that marketing has been a major challenge to

small and medium size enterprises (SMEs) around the world due to high cost. The classical

marketing communication system such as television, radio, etc. seems to have a high cost for
which it does not even reach the targeted customers and hence, not producing the expected

result. The objective of this study was to evaluate the impact of digital marketing of the growth

of SMEs in Cameroon. To achieve this, several channels of digital marketing were used such as

email marketing, social media, online advertisement, etc. while the concept of growth was

evaluated in terms of sales and market share. Thus, questionnaires were formulated and

administered through an online platform and 46 of the 50 questionnaire distributed respondents

answered, giving a respond rate of 92.00%. The population was made of customers and the

employees as well as employer of JUMIA. The data was collected following the research

question and objective in which a qualitative deduction approach was used. Descriptive statistics

such as bar chart, pie chart as well as table were used. The data was analysed using the Statistical

Package for Social Science (SPSS) v.21.00 software. The general finding shows that digital

marketing channels such as social marketing, online marketing, greatly contribute to the growth

of SMEs in Cameroon in general and JUMIA. Therefore, it was suggested that policies such as

the digitalization of the economy should be implemented as it will go a long way to create more

sensitization on the use of electronic devices that could create and develop the country as a

whole through marketing communication.

Scholars indicates the importance of marketing capabilities continues to grow yet

research remains concentrated in developed markets. Although several researchers provide

evidence of the influence of marketing capabilities on market performance, very little of similar

evidence exists in the digital marketing domain. Empirical evidence of the impact of digital

marketing capabilities on market performance of small to medium enterprise (SME) agro-

processors particularly from developing countries remains scarce. The purpose of this paper was

to investigate the impact of digital marketing capabilities on SME agro-processors’ both

intermediate and final market performance outcomes. To achieve this, we conducted a survey of

298 SME agro-processors’ managers and owners in Harare, Zimbabwe. A mixed sampling

approach consisting of quota and stratified sampling approaches was adopted. We distributed a

closed-ended questionnaire through the drop-off & pick-up and interviewer based methods. The

data was analysed statistically using STATA version 15. Multiple logistic regressions were

conducted to determine impact of digital marketing capabilities on market performance. Our

findings indicate that digital strategy development & execution, digital market innovation, e-

market sensing and leadership capabilities positively influence intermediate market outcomes of

customer awareness, customer attitudes, availability, and brand associations. However only

digital strategy development & execution capability was positively associated with final market

performance outcomes of sales growth, market share and profitability. These results imply that

agro-processors must develop digital marketing capabilities that enable them to move beyond

intermediate market outcomes to attain the primary business objectives of profitability, sales

growth and market share. Attaining intermediate market outcomes only is not enough for

business sustainability. The study contributes to literature by extending the marketing

capabilities discussion to the digital marketing environment in a developing country context.

This was important because marketing knowledge is contextual, as such cannot easily be

transferred from one market to the other. (Chinakidzwa, More; Phiri, Maxwell 2020 )

According to Malik Mustafa (2021), with the development of the business in the world

today all the ways of production and of running and managing business have been changing all

the time. All business owners and managers keep looking for the best methods and strategies

which can help improve and develop their business and get better results and better revenues.
With the development of the digital world or information technology they try to use and

implement the suitable digital strategies that can make managing business easier and better. Big

data and how to build data as a strategic asset or in other words strategic digital data

management may be considered as one of the most interesting methods using information

technology in business today. This strategic method is in fact a digital method in which managers

or experts use the best software programs that help dealing with the data in the enterprise to

make it easy to use and more secure and safe. It is a strategy that implies the use of the new

programs and methods to deal with the data and the information in all kinds of enterprises.

The author notes that digital transformation which impacts business operations is one of

the most fundamental social and economic occurrences of our times. The paper seeks to find out

how digital transformation impacts marketing activities in small and medium-sized enterprises

(SMEs) and to examine overall changes triggered by digital technology in the marketing concept,

its instruments, and activities in SMEs in Poland. The main research question focuses on the

direction in which marketing activities performed by organizations evolve nowadays. Analyses

and considerations are based on logical inference, examination of results of empirical studies,

critical literature review, and author’s market observations. Conducted analyses have

demonstrated that, in enterprises covered by the study, digital technologies are deployed in

marketing rather widely, although in many instances these technologies belong to the category of

traditional tools. IT technologies and digital tools also impact marketing, helping to build

relationships with clients and creating the value of each organisation. (Marta Joanna Ziółkowska

2021)

The study demonstrates that today, digital marketing is one of the most effective elements

of the marketing communications complex, which does not show signs of slowing down or
stopping. Therefore, leading companies and their marketers focus their efforts on the formation

of digital communications with their consumers. The global network has changed the

communication between the consumer and the company. In the digital era, the focus of

companies has changed: now they seek not so much to maximize profit, how much to satisfy the

client's need in order to be sure that their product has value in the market and will be in demand.

The use of digital technologies in marketing activities will open up broad prospects for

enterprises and organizations to retain loyal customers and develop long-term partnerships with

them, increase positive consumer attitudes, trust in their products and services, provide an

individual approach to each client and a flexible response to changes in their tastes and

preferences. The benefits of digital marketing identified in the paper will be key areas for the

development of a customer-centric approach, the use of which will allow organizations to

strengthen their competitiveness and effectively promote their brand in the market. ( Tairova

M.M ,Aminova N.B. , Kadirova N.R. Tairova Mavluda Muhammedrisaevna 2021 )

Aditya G, Dr. W. Saranya (2022) on their study digital marketing is the avenue of

electronic communication which is used by marketers to endorse the goods and the services in

the marketplace. The supreme purpose of digital marketing is concerned with consumers and

allows the customers to intermingle with the product by virtue of digital media. This editorial

concentrates on the magnitude of digital promotion for both customers and marketers. We

scrutinize the result of digital marketing on the base of firm’s sales. 62 respondents' opinions are

collected to get a clear picture of the present study.

Gayathri.M, Shiny.A , Harihara Sudhan.P 2022 demonstrate the results of the concept of

digital marketing for businesses is that they can market their products from anywhere and

anytime through the internet. The goal of this paper was to figure out how digital marketing may
help a newly founded start-up succeed in the Indian market. Most start-ups stated that digital

marketing helps them promote their products/services more cost-effectively than traditional

marketing. Their brand reaches prospective clients faster than their physical presence and aids in

generating sales. Their paper is intended to explore the awareness and propensity of the digital

marketing approach to technology. Also to propose an effective way to minimize the cost of

advertising and maximize the reach among the customers. Start-ups can use the strategy to

strengthen start-up marketing management skills and manage marketing efforts simultaneously.

Digital marketing is a perfect business opportunity for Start -ups. To be competitive in the digital

market, you need to have a clear understanding of the Pros and Cons of digital marketing. This is

a growing business strategy. Digital marketing has become an important focus for most

companies as they look to reach customers online and grow sales. Digital marketing is nothing

more than taking advantage of new technologies to achieve our objectives.

The goal of their research was to discover the role that digital marketing plays in the

success of businesses in Hyderabad, India. "Digital marketing orientation, perceived relative

advantage, customer pressure, and competition" will be examined in the research on the

influence of digital marketing on firm performance The bulk of participants in this poll are small

and solopreneurs. As an added precaution, the questionnaires were disseminated using a simple

random selection method on the internet itself. Thirty surveys were conducted as a consequence

of this research to establish whether or not digital marketing has a substantial effect on business

performance. This study's findings will be analysed using the SPSS statistical software, version

25. In order to conduct all statistical analyses, SPSS will be used for all types of statistical

studies. Any of the independent characteristics investigated in this research, such as digital

marketing orientation, perceived comparative advantage, customer pressure or level of

competition; do not seem to be associated to strategic firm success. The correlation between the

independent and dependent variables has been established. In this research, the influence of

digital marketing on company performance is also examined. Author proposed further research

ideas after highlighting the study's weaknesses. Study this inquiry has to be done quickly in order

to avoid the spread of Covid-19 due to restrictions imposed by the Movement Control Order.

Choosing participants at random was a challenge for the researcher since the data was only

accessible online (through the internet). As a result, they have a few ideas for future research in

this area. To begin with, the researcher should hunt for a volunteer outside of Hyderabad, India.

The researcher also advises future researchers to look at digital marketing in combination with

research on company success since previous studies were generally performed across various

nations and had a restricted reach. Future research is likely to provide more light on small

businesses' use of digital marketing. (Bade Sudarshan Chakravarthy, Uma Rani, K. Karunakaran

2022 )

CONCEPTUAL FRAMEWORK
 This research Paradigm for the Effects of Digital Marketing Strategy in Small Businesses

in the Municipality of Cuyo, Palawan is adopted from the study of Kimathi Doreen Kawira, Prof.

Elegwa Mukulu and Prof. Romanus Odhiambo.

In the recent times, the world has witnessed a rise in digital marketing buoyed by the

explosion of information communication and technology (ICT). Digital marketing is a marketing

strategy involving the deployment technology based tools such as the Internet, social media and

mobile phones platforms. It involves email marketing, search engines, online markets and online

blogs with the aim to reaching out to existing and potential customers.

Mobile phone marketing involves the utilization of mobile telephony through short

messages and dial ups to reach and service clientele. Mobile phones emerge as the preferred ICT

tool to small businesses due to affordability, ease of use, and reliable provider networks. They

also offer various functionalities that can enhance marketing including communication, enabling

market transactions, product promotion, customer relationship, market research and other

Internet enabled services. Social media marketing basically means promoting a company through

different networking sites and popular media channels such as twitter, linkedIn, facebook,

Instagram and whatsup (Thompson,Williama & Thomas 2013). For this study, digital marketing

tools were operationalized to include mobile phone, social media sites and Internet. It was

hypothesized that these tools significantly and positively affect the performance of Small

Businesses in Municipality of Cuyo, Palawan in terms of customer base, sales and profitability.
Figure 1. Conceptual Framework
 Chapter III

RESEARCH METHODOLOGY

This chapter presents the research design, research locale, population and sample,

research instrument, data gathering procedure, data analysis, procedure and statistical treatment

and ethical consideration. The detailed discussion on the research process will be conducted to

obtain the objectives of this research.

RESEARCH DESIGN

This study utilizes the use of descriptive study and qualitative research design. This

method helps to determine the effects of digital marketing strategy to the small businesses in

Cuyo, Palawan.

Descriptive method aims to describe the nature of situation and it exists at the time of the study

and to explore cause of particular phenomena. This descriptive methodology focuses more on the

“what” of the research subject than the “why” of the research subject.

(https://www.questionpro.com)

REASEARCH LOCALE

This research study will be conducted at the selected mainland barangay’s of Cuyo,

Palawan area, including Tenga – Tenga, Bancal and Cabigsing, we based on the secondary data

that we have gathered from the LGU Cuyo most of the businesses cluster in Barangay Tenga –

tenga, Bancal, and Cabigsing.

POPULATION AND SAMPLE

 The population of the study comprises of Small Business Owners in Cuyo, Palawan

including Barangay Tenga – tenga, Bancal and Cabigsing. The aims of this study is to survey

(50) small business owners that are engaged in using digital marketing strategy on their

businesses.

Researchers must understand many factors when conducting a survey, the all answered

questionnaire place in a private setting. Researchers allow the research participants to speak

freely about the research topic.

RESEARCH INSTRUMENT

The researchers utilize the questionnaire from the study of Kimathi Doreen Kawira, Prof.

Elegwa Mukulu & Prof. Romanus Odhiambo to gather data about the Effects of Digital

Marketing Strategy in Small Businesses owners in the Municipality of Cuyo, Palawan.

DATA GATHERING PROCEDURE

The researchers will ask permission to the campus director and adviser to conduct the

study outside the campus. A letter of request to conduct the study was prepared, and then they

will undergo a survey to their selected small business owner’s respondents by giving an

answerable questionnaire. The researchers conduct the research in selected barangay’s in Cuyo,

Palawan through survey, because of the advantages of the survey method. The researchers

explain to the respondents the importance of their response to the study. The researchers clarify

some terms to the respondents so that the respondents can answer the questionnaire with full

knowledge of their responsibility as the subject of the study. After the respondents answered the
questionnaire, the researchers collected and tallied the data for interpretation. Camera was also

used for documentation.

DATA ANALYSIS, PROCEDURE AND STATISTICAL TREATMENT

The researchers tallies the collected data were analyzed and interpreted using the

following statistical tools, frequency distribution, item mean, and percentile to test the

probability of the result for the presentation of the variables. The researchers also use the SPSS

Software to quickly feature the statistical data.

ETHICAL CONSIDERATION

The researchers will ensure the confidentiality of the participants. In regard to the

involvement to this study, the participants will not be subjected to harm in any ways. Prior to the

study, full consent will be obtained from the participants, in addition the protection of the

privacy of research participants will be ensured. Voluntary participation of respondents in the

research will be treated very important. Moreover, they have rights to withdraw from the study at

any stage if they wish to do so. In handling the data, adequate level of confidentiality will be

ensured. Any form of misleading information, as well as representation of primary data findings

in a biased way will be avoided. On the other hand, maintaining the highest level of objectivity

in discussion and analyses throughout the research will be considered. Furthermore, affiliations

in any forms, sources of funding, as well as possible conflicts of interest will be declared. Lastly,

any type of communication to this research will be answered and done with honesty and

transparency.
 Republic of the Philippines
PALAWAN STATE UNIVERSITY
Puerto Princesa City

PSU – Palawan College of Arts and Trade

Dear Respondents,

We are fourth year students of PSU – PCAT Cuyo and enrolled in Bachelor of Science
and Business Administration major in Financial Management. At present we are on the process
of working on our research study entitled “Effects of Digital Marketing Strategy To Small
Businesses in the Municipality of Cuyo, Palawan.”

You are randomly selected as one of our respondents that are why we would like to ask
your participation in this study by answering the questionnaire that we have prepared.

Please be assured that your answer will be treated with confidentiality and will be used
only for this study.

We genuinely express our thanks for your commitment, time and effort which we
consider your exceptional contribution on this study.

Very truly yours,

SHARALYN A. DE LA TORRE
Lead Researcher
EFFECTS OF DIGITAL MARKETING STRATEGY TO SMALL BUSINESSES IN THE
MUNICIPALITY OF CUYO, PALAWAN

QUESTIONNAIRE: (Check list)

Name: (Optional)

Table 1: Demographic Profile of Respondents

Main Factor Factor Level
 Barangay Bancal
Address  Barangay Cabigsing
 Barangay Tenga - tenga
 Male
Gender  Female
 18 – 25 years old
Age Bracket  26 – 35 years old
 36 – 45 years old
 Above 45 years old
 Single
Marital Status  Married
 Divorced
 Widowed
 None
Level of Education  Primary
 Secondary
 College/Tertiary
 University
 Wholesale / Retail
Type of Industry  Services
 Restaurant / Hotel Business
 Less than 1 year
Years in Operation  1 – 5 years
 Over 5 years
 Growing
Perceived Firm Performance over  Breaking – even
the last 3 years  Declining
 Table 2: Frequently Used Digital Marketing Tools

Do you Deploy Digital Marketing in your

Factor Business?
 Yes
Respondents  No

Please indicate some of the Digital  Internet Marketing

Marketing Strategies adopted by your  Social Media Marketing
business to market its products / services.  Mobile Phone Marketing

Table 3: Digital Marketing and Performance of Small Businesses

Digital Marketing Strongly Disagre Neutral Agree Strongly

Strategy Disagree e Agree

Adopting internet marketing allows

firms to increase their sales volumes
and profitability.
Use of internet marketing strategies
enhances a firm’s competitive
advantage.
Marketing through the internet
greatly promotes the ability of
business firms to attract and retain
customers.
A business firm can leverage the
high mobile phone penetration in
Cuyo to significantly grow their
sales volumes.
Mobile phones are key in promoting
market penetration.
Many businesses have been able to
increase their profitability through
by marketing using the mobile
phone.
It is possible to attract and retain
customers by effectively utilizing
the social media platforms.
Those firms that leverage the social
media platforms such as facebook
and whatsup as marketing tools are
more likely to achieve higher sales
volumes.
Social media is an effective way for
business firms to grow their
profitability.
Digital marketing strategies overly
positively and significantly increase
clients’ base, sales volumes,
profitability and hence firm
performance.

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