Effect of Digital Marketing on Business Profitability: The Case of Nifas Silk Lafto Sub City Small Micro Enterprises

Abstract

The general objective of the study is to assess Effect of Digital Marketing on Business Profitability The Case of Nifas Silk Lafto Sub City Small Scale Enterprises. The data collected from 310 employee and 5 leader of SME and 5 experts of Enterprise and Industry development office of sub city. Closed-ended questionnaires along with interview were used for data collection. The selections of the employee carried out by using convenience sampling techniques, further, leaders taken by using purposive sampling. The quantitative data analyzed with, frequency, percentages and regression. The study indicated that business profitability of Small Scale Enterprises in NSL sub city show improvement. The study indicted social media marketing has a positive impact on buying decision, encourage better understanding of customer’s needs, cut down the cost of operation and increase brand awareness of enterprise. on engaging with customers majority of respondents moderate agreed that mobile marketing has enable the business to engage easily with customer. The study found that internet marketing had led to more sales, reduced marketing expenses, and increased profitability. Further, the study found that the introduction of internet marketing had led to more sales, reduced marketing expenses, and increased profitability of the retail businesses. In general, the study clearly shows, among the three factors, multiple linear regressions analysis revealed Internet Marketing makes the strongest contribution to explaining the dependent variable. Further, social media marketing makes the medium contribution to explaining the dependent variable. However, Mobile Phone has small significant effect on SSE profitability. There is need for SSE sector to enter into a partnership arrangement with the telecommunication service providers so that to strength of internet and network coverage countrywide can be strengthened.