EFFECT OF E-MARKETING ON THE SALES VOLUME OF EATERIES IN ENUGU METROPOLIS

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Looking at the world economy in the present era, one finds that it is shifting from commodity-linked stage to the stage of value creation, employment and economic wealth.  (Dehkordi et al., 2012). Such shift in the global economy is concurrently accompanied by enormous revolutions in information and communication technology (ICT) which have contributed to change the way that businesses are conducted. Marketing is one of the crucial functions employed in businesses that have been affected by such changes, leading to the emergence of the so-called electronic marketing or E-marketing (Eid & El-Gohary, 2013;Tan, Chong, & Lin,2013; Babalola & Babalola, 2015). The E-Marketing Association defines E-marketing as “the use of electronic data and applications for planning and executing the conception, distribution, promotion and pricing of ideas, goods and services to create exchanges that satisfy individual and organizational objectives”(Bothma & Burgess, 2007). E-Marketing is becoming more essential in the present era, which is characterized by global markets, intense competition and open borders (Gilmore, Gallagher, & Henry, 2007). In addition, modern and diverse means of communication enabled customers to access to each product or service quickly without bothering about time and location (Sheth & Sharma, 2005). All these developments have made it incumbent on the institutions to consider new ways of marketing and reshape the traditional methods of it in order to maintain up its survival and occupy a competitive place among others (Ali et al., 2015; Babalola & Babalola, 2015).Sustainability of marketing features has been affected positively from the development and use of technology (Mokhtar, 2015).The benefits that can be achieved from E-marketing are very huge. Sales growth and cost reduction are of the most important opportunities provided by the Internet–that part of the technology, which has become a widespread tool among institutions(Yannopoulos, 2011).Gilmore et al. (2007)also state other benefits of E-marketing including reaching more markets with less expenses, using E-mail to market products and reduce the need to print leaflets for products(less costs).In addition, using effective web site will help them to react with customers speaking different languages to answer their questions about products and services. Expansion of distribution channels, more valuable products, staying close to customers, listening to their demands and raising sales–are other benefits that can be cropped from E-marketing (Babalola & Babalola, 2015). Also, marketers can gain new customers, new brands, new markets, new market leaders, new market channels and marketing tools (Tiago &Tiago, 2012;David avi9ciene, Sabaityte, Davidavi9cius, & Potapov, 2014). Furthermore, online activities ease the exchange of products, services, ideas and information, therefore each party fulfils his/her marketing aims (Dlodlo & Dhurup; 2013).  Electronic Marketing (E-Marketing) has been recognized by scholars and professionals in the field of marketing as a factor that plays an important role in raising the efficiency of economic performance to the companies in highly competitive markets, through providing the necessary information for the various administrative levels [Pappas N. 2016]. The emerging of e-marketing has made business organizations to be information oriented by using internet technologies including the use of multimedia, graphics, text with different languages to create catchy advertisements, forms, e-shop where the product can be viewed, promoted and sold. [Turkaman AM. 2012] observes that e-marketing has completely improved organizations performance in term of clientele, profitability, efficiency, effectiveness and it is considered as a competitive advantage. According to [Hooda S, Aggarwal S. 2012], e - marketing does not simply entail building or promoting a website, nor does it mean placing a banner advert on another website. It includes an advertisement (flash, text, graphics, audio or video), product display, product navigation, 3-D products view, basket selection, checkout and payment. E-marketing & internet marketing terms are used in the same sense. This form of marketing is equally applicable in most of the business models; such as e-commerce, publishing Services and affiliate marketing [White C. 2017]. Studies also affirm that e-marketing has rapidly changed the way people do business globally. Clientele, business-to-consumer segment, business-to-business segment, sales through the web have increased geometrically over the last few years [Kotler P, Keller K. 2012]. Marketing information systems enable marketing and sales managers to identify, interpret, and react to competitive signals and are key elements leading to efficient marketing strategies and sales promotion strategies [. Prabhu J, Stewart D. 2005]. The quest to exploit the e-marketing benefits has become a strong motivation for the utilization of e-marketing by business organizations, all over the world, Nigeria is not an exception. The utilization of e-marketing in Nigeria is still at infancy stage. [Ibene KS, Obi RC. 2001] confirm that only large eateries and in particular, the fast foods, financial institutions and the publishing houses started to adopt some form of e-marketing such as the use of e-mail and e-payment. However,  [Moniei N, Najafzadeh MR. 2015] argue that e-marketing holds a number of daunting challenges for modern organizations, and more specifically, modern marketers. These challenges have contributed towards a fast-changing and more complex environment for organizations. [Ezekiel MS, Eze JF, Anyadighibe JA. 2015] also observe that many organizations, particularly in Nigeria, are moribund due to the wave of information technology. People have hesitations in using e-marketing due to security concerns, lack of physical approach towards product offered, and delay in product delivery along with price and quality concerns. Moreover, people are more resistant to change and not easily adaptable to newer technology. Generally, organizations worldwide experience the same kinds of information problems, which are more intensive in developing countries. They are hampered by asymmetry information and knowledge [Silvance OA. 2012], which plays a key role in coping with change, and July be a possible reason for the poor sales volume in satisfying customer requirements. Hence this study aimed at establishing the effects of e-marketing on the sales volume of eateries in Enugu metropolis.

1.2. STATEMENT OF PROBLEM

E-marketing seems to be a platform were companies can access large numbers of users, for instance, East Africa has 50 million mobile phone subscribers and at least 15 million web users. Business Daily, Tuesday July 27th 2010. The mobile phone platform in Nigeria has millions of people ICT statistics, yet most small scale business in Nigeria which eateries is one of them do not see e-marketing as a viable option or a profitable venture to pursue. Could it be that a lot of Nigerian companies are afraid to test the waters yet there is real potential in e-marketing? E-marketing July also be considerably cheaper than other traditional media especially when examining the ratio of cost to reach of the target audience. Hence this study aimed at establishing the effect of e-marketing on sales volume

1.3. AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine effect of e-marketing on the sales volume of eateries in Enugu metropolis. Other specific objectives of the study include;

1. To examine the scale of electronic marketing in eateries in Enugu metropolis.
2. To assess how customers are adapting to e-marketing in eateries in Enugu metropolis.
3. To examine the effect of e-marketing on sale volume of eateries in Enugu metropolis.
4. To examine the sales volume of eateries using e-marketing in Enugu metropolis.
5. To examine the relationship between e-marketing and sales volume in eateries in Enugu metropolis.
6. To examine the effect of e-marketing on customer satisfaction in eateries in Enugu metropolis.

1.4 RESEARCH QUESTIONS

1. What is the scale of electronic marketing in eateries in Enugu metropolis?
2. How are customers adapting to e-marketing in eateries in Enugu metropolis?
3. What is the effect of e-marketing on sale volume of eateries in Enugu metropolis?
4. What is the sales volume of eateries using e-marketing in Enugu metropolis?
5. What is the relationship between e-marketing and sales volume in eateries in Enugu metropolis?
6. What is the effect of e-marketing on customer satisfaction in eateries in Enugu metropolis?

1.5. RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant effect of e-marketing on sale volume of eateries in Enugu metropolis

H1:  There is a significant effect of e-marketing on sale volume of eateries in Enugu metropolis

Hypothesis 2

1. : There is no significant relationship between e-marketing and sales volume in eateries in Enugu metropolis.
2. : There is a significant relationship between e-marketing and sales volume in eateries in Enugu metropolis

1.6 SIGNIFICANCE OF THE STUDY

This research is important to various stakeholders. Companies can benefit from this research by understanding what e-marketing is and how it can have a positive impact on their brands and their companies as a whole through increased revenue and publicity. This study is also relevant to research bodies and institutions in the nation as a whole because findings would also be relevant to students and users of information in conducting further research in areas similar to this study.

SCOPE AND LIMITATION OF THE STUDY

The study is restricted to effect of e-marketing on the sales volume of eateries in Enugu metropolis.

LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1. DEFINITION OF TERMS

Marketing Strategy: It is a short and long term activities in the field of marketing which entails the analysis of the strategic initial situation of a company and the formation, evaluation and selection of market-oriented strategies.

Electronic Marketing: The promotion and advertisement of a company’s products, services or brand on the internet.

Customer satisfaction: is a consumer’s response to the evaluation of the perceived discrepancy between prior expectation and the actual performance of the product as perceived after its consumption.

Traditional Marketing: any type of promotion, advertising or campaign that has been in use by companies for years and that has a proven success rate. Methods of traditional marketing can include print advertisements, such as newsletters, billboards, flyers and newspaper print ads.