Utilisation of internet marketing and performance of small and medium enterprises in Uganda

Abstract

This Research Study is about how SMEs utilize internet marketing to improve their performance and survival given that they have a low life expectancy. Internet marketing offers numerous benefits when compared to traditional media channels. Internet marketing strategies may improve customer relationships, operational efficiency, marketing effectiveness, and a firm’s performance when implemented properly. The study was carried out in Nakawa division of Kampala with the following study objectives; • To investigate the extent of internet marketing application by SMEs to examine the relationship between internet marketing use and performance of SMEs and to determine the challenges faced in implementation of internet marketing by SMEs in Nakawa division. The research was a descriptive survey and used a sample size of 80 SMEs. Primary data was collected using questionnaires. The study established that internet marketing was used at a moderate extent, and that certain challenges affected the SMEs ability to apply internet marketing. Most SMEs agreed that the greatest challenge in application of internet marketing was the fear of losing their current customers who were not able to access internet. The lack of finances to invest in internet marketing integration as well as lack of skilled IT personnel topped the challenges highlighted in the study. Internet marketing had a positive impact on the performance of SMEs. Social Media and websites were the most applied forms of internet marketing. There was increase in profitability, increased market share and an ability to expand their market growth.

The study recommended that The SMEs entrepreneurs and marketers needed to identify and use suitable Internet Marketing tools which would ensure that their customers were able to purchase online, without having mistrust or security concerns. This could have been done by developing and ensuring expedient delivery of products, while guaranteeing security when a client purchases online. The entrepreneurs and marketers needed capacity building forums to learn new Internet Marketing tools that increased profitability. The Importance of the internet to economic growth is very important. Whereas the government has formulated policies on ICT that is the broadband policy of 2020, it is essential to ensure that the internet and technological infrastructure is affordable to businesses that have a limited financial ability. Government policies that reduce tax on computer related equipment and the internet are imperative, to make internet access more affordable to all SMEs in the country. The various governments MDA especially Trade ICT and the Attorney General should also speed up the progress