IMPACT OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN ANAMBRA STATE

Abstract

Social media marketing is an essential tool for businesses looking to capitalize on the opportunities presented by digitalization, increased online presence, and widespread mobile phone usage. By leveraging these platforms, businesses can enhance their competitiveness in terms of market share, sales growth, customer patronage, customer retention, customer brand loyalty, and market reach. In this study, we examined the impact of online marketing on the performance of small and medium-scale enterprises in Anambra state, with a specific focus on the influence of social media marketing on customer satisfaction/loyalty and market share. Using a survey design, we conducted our research in Onitsha, Anambra State, targeting a population of 50,213 employees and operators from 2,233 registered SMEs (SMEDAN, 2021). With a 95% confidence level and employing the Alien Taro Yamane (1967) method, we arrived at a sample size of 397. Through the use of questionnaires, we collected primary data, which we presented in tables and simple percentages. To test our hypotheses, we employed simple regression analysis in SPSS. Our findings revealed that social media marketing significantly influences customer satisfaction/loyalty and market share. Based on these results, we recommend that businesses develop comprehensive plans and allocate budgetary resources towards. Keywords: Online Marketing, Social Media, Customer, SME, Satisfaction, Loyalty, Market Share.