Background

            As a marketing consultant, I am expected to contribute to the realization of more effective and efficient marketing action. Marketing forms an essential element of business performance. Marketing activities undertaken by organizations are the kingpin that boosts organizational performance by nurturing a strong connection between business and target consumers. A business can then leverage this relationship to enhance the customer perceptions and behavior, ultimately leading to sustained customer loyalty and better business performance. Effective marketing distinguishes a business from its competitors by enhancing the quality of marketing messages to customers. The drastic evolution of digital media has presented business with new avenues of marketing and promotion (Antoun, 2015). In the advent of a digital era, digital marketing provides a viable platform for brands to connect and engage target demographics in a more effective manner.

            The prospects of digital marketing in influencing organizational performance are significantly positive due to the widespread adoption and use of digital platforms among consumers. The total global population is approximated to be 7.7 billion with at least 4.021 billion (87%) people being able to access online platforms by 2018 (Internet World Statistics, 2019). Social media platforms attract the most activity with more than 3.196 billion active users. The Internet World Statistics (2019) approximates the rate of growth in online presence to be at 20% annually, which shows continued growth in online presence among consumers. A survey conducted by the Malaysian Communications And Multimedia Commission (2018), showed that besides socializing and entertainment, the number of internet users using online platforms for shopping increased from 48% to 53% in 2018 (Malaysian Communications and Multimedia Commission, 2018). The value associated with e- commerce increased to $20.55 billion from 16.77 between 2016 and 2017 (Malaysian Communications and Multimedia Commission, 2018). The positive prospects in the growth of digital platforms reveal a strategic opportunity for organizations to connect and engage consumers. Digital marketing allows business to access a wider variety of consumers faster since it transcends geographical boundaries and sends quicker messages.  It is considered a more convenient and pragmatic channel of developing a meaningful relationship with consumers since businesses can design tailored messages to connect with consumers. Businesses in the contemporary scene are increasingly using digital marketing to communicate and promote brands in an effort to experience tremendous growth and visibility.

            The purpose of this CAT is to investigate the impact of digital marketing on business performance. The research will contribute to the body of knowledge of business marketing by increasing the level of awareness on the capabilities of digital marketing. Understanding the dynamics of digital marketing will play an essential role in influencing business decision making in the uncertain and complex business environment. Business will gain insight from the research on better ways to access and connect with target consumers, to overcome marketing barriers.

CAT Question

Throughout the research, I aim to investigate the following research question:

What is the impact of digital marketing on business performance?

An elaboration of the question based on the PICO framework can be outlined below:

Population
Marketing professionals

Intervention
Digital marketing

Comparison
Traditional marketing

Outcome
Business performance

Context
Global business environment

Inclusion Criteria

The inclusion criteria for the critical appraised topic will include the following:

Date: Published between the years 2006 and 2019
Language : included articles will be in English language only
Type of studies included : peer- reviewed journals, quantitative studies and empirical studies
Study design : randomized control trials, controlled studies, meta- analysis
Study type : include studies in which the impact of digital marketing on business was evaluated
Outcome: identification of how digital marketing affects business performance
Context – global business environment

Search Strategy

The central database used to retrieve the information was ProQuest. ProQuest was selected since it is designed to allow users to search for key terms related to the study and also gives access to reliable articles within the included search criteria. The search filters applied to access the articles included:

Peer- reviewed scholarly journals
articles published between 2006 and 2019
Articles written in English language

The key search terms used to retrieve preferred articles included: digital marketing, business performance, online marketing and “meta analysis”.

Search Strategy

Key terms
Database
Results

“Digital marketing” and “ Business Performance”
ProQuest
250

“quantitative analysis” and “Digital marketing” and “Business Performance”
ProQuest
100

Study Selection

To select appropriate studies for inclusion, the first step taken was to review the 205 abstracts and compare against the inclusion criteria. Duplicate publications were excluded in this CAT. This phase yielded 10 correlation studies and 3 controlled studies which were fully reviewed.

  Data Extraction

The data extraction process involved collection of all results related to the CAT question. The results of the data extraction process can be shown in the table below:

 

Author & Year
Sector/ Population
Design & Sample size
Major findings
Effect size
Limitations
rank

Bouwman et al.(2018)
Small and medium enterprises
Empirical study on n=338 European SME’s
Social media marketing has a positive effect on business performance through increased potential of sales growth and reduced cost of marketing
Large
Limited Generalizability since study focused on European firms only
A, High, 90%

De Klerk & Kroon (2007).
Online businesses in South Africa
Empirical survey of 707 online businesses in South Africa
Digital marketing increases the sales and profitability of an organization by creating better market networks and creating authentic relationships with customers
Large
Limited to online businesses in South Africa
A, High 90%

Yamin (2017)
Digital marketing consumers in Bangladesh
Sample of 120 random consumers
Consumers spend  a lot of time on social media and can capture marketing messages sent through digital platforms thus increasing sales growth
Large
Small sample size
B, Medium, 80%

Sheikh, Shahzad & Ishak (2016)
Textile business in Pakistan
Meta- analysis  involving n =278 textile firms
E-commerce is associated with business benefits such as cost reduction, stable marketing operations and increased customer reach for increased sales.
Large
Research was contained in one geographical context which may limit applicability in other countries
A, High 90%

Pestek, Almir & Cicic (2010).
Tourist agencies and hostels across Bosnia and Herzegovna
Sample n = 200 tourist agencies and 200 hotels
Companies with e-marketing strategies had better customer engagement levels as compared to those that did not have e-marketing strategies
Large
Small sample size
A, High 90%

Riyad Eid & Hatem El-Gohary (2013)
Small Business enterprises
114 small business enterprises
Digital marketing has a positive effect on marketing effectiveness, marketing efficiency and sales activities
Large
Small sample size
A, High 90%

GbolagadeAdewale & Oyewal (2013).
Small and Medium enterprises in Nigeria
n = 103 respondents in marketing department
The promotion strategy positions the business strategically to attract target consumers for better business performance
Large
Applies to a single country setting
B, Medium, 80%

Ainin et al. (2015)
Small and Medium enterprises in Malaysia
A survey on 259 SME’s in Malaysia
Facebook affects business positively by reducing marketing costs, enhancing information accessibility and improved customer relations
Large
The sample only included organizations in Malaysia which limited Generalizability
A, High, 90%

Zulqurnain, SHABBIR, RAUF & HUSSAIN (2016)
Customer brand perceptions
N= 145 university students
Social media marketing has a measurable effect of student consumption behavior which affects the sales growth of a business
Medium
Limited to perceptions and attitudes of University students
A, High, 90%

Valos (2008)
Marketing professionals
n= 40 senior marketing managers
Digital marketing enhances marketing effectiveness by creating multi- channel marketing capacity where a wider variety of consumers can be reached
Large
Research conducted among marketing managers who may have higher level of bias
B, Medium, 80%

Sheikh, Shahza & Ishak (2016).
Business- to- business systems

Digital marketing has a huge effect on customer buying behavior which plays a major role in increasing sales growth and profitability
Large
Limited to the business to business context of digital marketing
B, Medium, 80%

Tiago & Tiago (2012).
European firms
N= 9192 European firms
Digital marketing has a positive effect on business by enhancing business reach to the market and enhancing sales growth, competitive advantage and sustainability
Large
Sample was too large
A, high, 90%

Ungerman, Dedkova & Gurinova (2018)
Automotive industry
N= 50 enterprises
Digital marketing enhances public relations and communication with consumers, which in turn increases customer knowledge and confidence in a brand. This leads to increased sales growth and competitiveness
Large
Study limited to automotive industry
A, High, 90%

Tajvidi & Karami (2017)
Small and medium enterprise
N= 384 hotels in the UK
Marketing capabilities created by digital marketing positively influence the firms performance
Large
Limited to the UK business environment

Limited to hotel business

A, High, 90%

Critical Appraisal

Following the critical appraisal of 15 studies, 11 studies were included in the study. Eleven studies included in the CAT were highly relevant and valid for the research. Four qualitative studies were excluded from the CAT since they did not directly address the CAT question. The 11 studies selected for the CAT were graded A, due to a higher degree of reliability, validity and relevance.

Definitions

            The definitions related to this study included the concept of “digital marketing” and “business performance”. The CAT defined digital marketing as the use of digital media to market products and services through the internet. Digital marketing is used as a promotional strategy in contemporary marketing to improve brand visibility and customer service delivery. Business performance refers to the attainment of business goals and objectives against set standards of cost, completeness, efficiency and effectiveness. The concept of performance was taken to refer to the fulfillment of an obligation in a way that was intended. Business performance was therefore taken to be the extent to which an organization achieves set goals and objectives with regard to set standards.

Causal Mechanism

            One of the causal principles demonstrated in the CAT is the positive relationship between business performance and the use of digital marketing. Digital marketing was considered to be an innovative and flexible platform of marketing the products and services of a business, which increased the potential benefits it had on business performance. The huge online presence of target consumers was seen to create a platform where businesses can create visibility for their products and services and also enhance the quality of service delivery.

Main findings

            The results from the studies showed that digital marketing has a positive impact on the performance of business organizations. Digital marketing offers a platform for organizations to connect and interact with target consumers on a more relatable and convenient platform. Studies conducted on the use of digital media among global consumers shows that more than 87% of the total global population is connected to the internet platform. Among the internet users, more than 3.4 billion people use social media for socialization and interaction with the external world. The role of digital media as a marketing tool for organizations is therefore a strategic opportunity for firms to increase their visibility and brand positioning within the global business environment. Areas in which digital marketing influences positive business performance include:

improved sales- digital marketing increases sales by increasing the visibility of the products and services of a business
Growth in business partnerships – greater exposure in the digital marketing environment exposes business to potential partnerships which increase business resources and capabilities for better performance
Reduced marketing costs – Digital marketing is a flexible and inexpensive form of marketing. Digital marketing allows business to access a wider market at lower costs which helps to decrease the overall cost of marketing.
Increased customer loyalty – the digital marketing platforms enhance the communication and connection business has with target consumers. Digital marketing builds customer relations and fosters favorable behavior and attitudes which ultimately help to create consumer loyalty.
Increased customer information – digital marketing offers a platform where business can acquire feedback from target consumers and also track consumer buying behavior. The increased access to customer information can help influence decision making to ensure business remains responsive to customer needs.

Conclusions

            Digital media offers a strategic opportunity for businesses in the contemporary scene to increase visibility, competitiveness and sustainability. Empirical studies presented in the research show that a lot of organizations in the contemporary world have adopted digital marketing as a platform for accessing customers in more meaningful relationships.

            Digital marketing offers benefits such as increased customer engagement and market visibility which enhances the sales growth of the company leading to higher profitability. The digital marketing platforms are also valuable in enhancing the communication business has with their customers so as to inform existing and potential buyers on the products and services offered by a business. There exists a wide array of customer personalities within the online platform. Through digital media, a business is able to design tailored messages that are intended to reach a certain customer audience.

            Digital marketing also acts as a viable platform for organizations to acquire customer feedback on the quality of services which created numerous opportunities for organizations to improve the quality of service and enhance their responsiveness to customer needs.  Customer behavior is a complex and highly dynamic phenomenon. The success and sustainability of any organization is highly determined by its ability to respond to customer needs and preferences. Digital marketing plays an essential role in business performance by creating a platform of exchange where business organizations can learn about customer behavior and adjust marketing strategies based on changing customer dynamics.

            The digital marketing platforms further create opportunities for business organizations to serve customer needs in a more specific manner since business can evaluate and analyze customer information based on online data which creates a better platform for targeting and segmentation. In essence, digital media creates opportunities for better marketing and advertising due to the huge online presence that allows organizations to send marketing messages to a wider audience in a more flexible, cheap and relatable manner.

Limitations

The CAT addressed the impact of digital marketing in business performance. The topic did not capture details concerning the use of digital marketing between individual industries or sectors. Different business sectors experience different set of dynamics and challenges which can change the impact digital marketing has on the different businesses.
The CAT also focused on 15 studies which did not highlight the risks and dangers presented by digital marketing for contemporary business. The information about risks, challenges and barriers to implementation of digital marketing were therefore not highlighted despite their importance. Future research on the topic should expand research on the risks and challenges presented by digital media to help organizations overcome the unique challenges undermining their ability to succeed in digital marketing.
The sample sizes of the studies included in the CAT were different and also dispersed across different geographical regions. The different sample sizes and data methods acted as a constraint in ensuring research integrity

Implications and recommendations

            Based on the results of the critical appraised topic, digital marketing has a positive influence on business organizations. The research contributes to the body of knowledge that exists on viable marketing strategies. In the advent of a digital era, organizations have an opportunity to overcome the barriers created by contemporary marketing challenges by leveraging digital tools to market and advertise products. The research highlights the unique benefits of digital marketing and raises awareness for organizations to adopt digital marketing to increase business performance. The research will guide better implementation and adoption of digital marketing for better performance in different organizations.

To leverage the benefits of digital marketing, it is recommended for organizations to implement the following strategies:

Organizations need to develop integrated digital marketing strategies that capture the benefits of the different digital marketing platforms. Digital marketing media is widespread and diverse. Organizations must determine the most appropriate way of using each digital platform to enhance the organizational performance.
Organizations should also customize and develop their online presence platforms to enhance the user experience design. Digital marketing involves the use of websites, blogs and other digital sharing platforms. These platforms should be designed with simplicity to make it easier for users to navigate and also designed creatively to make the user experience memorable and entertaining.
Business organizations in the contemporary scene should use a resource based approach to enhance their benefits of digital marketing. The resource based view of business management encourages business to use their unique resources such as brand reputation, asset endowment or human resource management to increase the effectiveness of their marketing initiatives. Even in the online presence, organizations must identify their unique resources and harness them to have a stronger and more sustained impact on consumers.
It is recommended that business organizations extend their use of digital marketing to include less common digital media tools such as virtual magazines, blogs and online newsletters. These digital platforms attract a special niche of customers who may also develop interest in a business’ products and boost organizational sales growth.

References

Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Mohd Shuib, N. L. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Sys-tems, 115(3), 570–588.

Antoun, C. (2015). Who Are the Internet Users, Mobile Internet Users, and Mobile-Mostly Internet Users?: Demographic Differences across Internet-Use Subgroups in the US. Mobile research methods: Opportunities and challenges of mobile research methodologies, 99-117.

Bouwman, H., Nikou, S., Molina-Castillo, F. J., & de Reuver, M. (2018). The impact of digitalization on business models. Digital Policy, Regulation and Governance, 20(2), 105-124.

De Klerk, S., & Kroon, J. (2007). Networking in South African businesses. Management Decision, 45(1), 89-103.

Eid, Riyad & El-Gohary, Hatem. (2013). The impact of E-marketing use on small business enterprises’ marketing success. Service Industries Journal. 31. 31-50. 10.1080/02642069.2011.594878.

GbolagadeAdewale, A., & Oyewale, I. O. (2013). Impact of Marketing Strategy on Business Performance A Study of Selected Small and Medium Enterprises (Smes) In Oluyole Local Government, Ibadan, Nigeria. Ibadan, Nigeria.

Internet World Statistics (2019), INTERNET USAGE STATISTICS
The Internet Big Picture, World Internet Users and 2019 Population Stats. Retrieved from: https://www.internetworldstats.com/stats.htm

Malaysian Communications And Multimedia Commission (2018),Internet Users Survey 2018. Retrieved From: https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/Internet-Users-Survey-2018.pdf

Pestek, Almir & čicic, M.. (2010). Application of e-marketing strategies in tourism sector in Bosnia Herzegovina. A Enterprise Odyssey. International Conference Proceedings. 26-29.

Riyad Eid & Hatem El-Gohary (2013): The impact of E-marketing use on small business enterprises’ marketing success, The Service Industries Journal, 33:1, 31-50

Sheikh, A. A., Shahzad, A., & Ishak, A. K. (2016). The effects of E-marketing uses, market orientation, relative advantage and trading partners pressure on the performance of textile business in pakistan: A mediated-moderation analysis. International Journal of Economic Perspectives, 10(4), 562-580. Retrieved from https://search.proquest.com/docview/1964459019?accountid=45049

Sheikh, A. A., Shahzad, A., & Ishak, A. K. (2016). The Evolution Of E-Marketing In Business-To-Business (B2b) Environment And Its Impact On Firm Performance. JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA.

Tajvidi, R., & Karami, A. (2017). The effect of social media on firm performance. Computers in Human Behavior. Retrieved from: http://iranarze.ir/wp-content/uploads/2018/01/E5701-IranArze.pdf

Tiago, M. T., & Tiago, F. (2012). Revisiting the impact of integrated internet marketing on firms’ online performance: European evidences. Procedia Technology, 5, 418-426.

Valos, M. J. (2008). A qualitative study of multi-channel marketing performance measurement issues. Journal of Database Marketing & Customer Strategy Management, 15(4), 239-248.

Yamin, Ahmad. (2017). Impact of Digital Marketing as a Tool of Marketing Communication: A Behavioral Perspective on Consumers of Bangladesh. American Journal of Trade and Policy. 4. 49-54.

Zulqurnain, A. L. I., SHABBIR, M. A., RAUF, M., & HUSSAIN, A. (2016). To Assess the Impact of Social Media Marketing on Consumer Perception.

Ungerman, O., Dedkova, J., & Gurinova, K. (2018). The impact of marketing innovation on the competitiveness of enterprises in the context of industry 4.0. Journal of Competitiveness, 10(2), 132.