ASSESSMENT ON THE EFFECT OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA

BACKGROUND OF THE STUDY: New technologies are increasingly being looked to by businesses as a means to satisfy the specific needs of their operations and better position themselves to take advantage of global shifts in commercial activity. When it comes to successfully operating their day-to-day business, companies of all sizes—no matter how big or how small—need the ability to analyze data and make good use of the information at their disposal. Because of the expansion of the internet, businesses, particularly small and medium-sized enterprises (SMEs), now have access to more opportunities to sell their goods and services to a global audience than they ever would have been able to afford if they had to rely on the more conventional methods of marketing.

A survey of the available literature suggests that many of today's changes in organization have been driven by technological advancements. Information technology (IT) is substantially altering the character of business transactions between customers and providers of products and services, as Anna and Ken,(2022) observe. These transactions include the buying and selling of goods and services. Bharat (2022) notes that businesses, particularly small and medium-sized enterprises (SMEs), are being challenged by a variety of shifts that need for creative solutions. These problems include the creation of a competitive global economy, the move towards an information-based economy, and the change from mass production to a customer-driven economy. Additionally, the global economy is becoming increasingly information-based. He goes on to say that in order for small and medium-sized enterprises (SMEs) to be competitive in today's information-based and customer-driven global economy, they need to be effective, innovative, and competitive. They must be able to respond just in time, prioritize quality, and implement mass customization. He suggests that in order for them to accomplish this goal in the present day, they need to be able to make use of the new information and communication technologies (ICTs) in order to better integrate themselves into their surroundings, develop inter-organizational relationships that are more collaborative, and compete on international markets (Bharat, 2022).

Over the course of the last several years, many studies and publications on the use of the Internet in various business contexts have been produced in both the UK and other countries. This study is not another examination of the general use of the Internet in business; rather, it builds upon and summarizes the extensive and valuable research that has already been completed in these areas and extracts the essential themes and messages that are being expressed by the vast majority of SMEs. The purpose of this research is to investigate the potential and advantages that using the internet is thought to provide to small and medium-sized enterprises (SMEs).

According to Cooper (2020), small and medium-sized enterprises (SMEs) make a significant contribution to the economies of the majority of the world's countries. These companies are both socially and economically significant because they account for 99 percent of all enterprises in the European Union (EU), offer approximately 65 million jobs, and contribute to entrepreneurialism and innovation. It has been shown that small and medium-sized enterprises (SMEs) make a substantial contribution to the expansion of economies both nationally and regionally, as well as to increases in employment levels and the production of locally relevant goods and services. The United Kingdom's economy relies heavily on its small and medium-sized businesses (SMEs), which make up 99 percent of all businesses and account for more than 59 percent of all jobs in the private sector (BERR, 2008). They are also the foundation upon which future expansion and innovation are built. According to Chong (2021), the introduction of the digital economy has made the adoption and usage of the internet a key concern for most small and medium-sized enterprises (SMEs). Despite this, many small and medium-sized businesses find themselves in precarious positions. It's possible that they're not large enough to hire a professional IT specialist, and they certainly don't have the funds to pay for consulting assistance. They often have inadequate expertise in choosing, implementing, and assessing proposed information technology solutions (Brodie , 2020). According to Chaffey., (2021), small and medium-sized enterprises (SMEs) find themselves caught in a trap. A lack of resources means that even though there may be an aggregate demand for information technology (IT) service and advice, the individual nature of that demand makes it uneconomical for other companies to provide a service meeting that demand.

According to Chaffey (2022), Small and Medium Business Enterprises (SMEs) are seen as representing the driving forces of sustainable local economic growth all over the globe. They serve as the foundation of economies, foster the development of private property and entrepreneurial capabilities that, as a result of their adaptability, are able to respond rapidly to shifts in the market, generate employment, produce diverse forms of economic activity, and contribute to international trade and commerce.

As a direct consequence of this context, the purpose of this study is to investigate the impact that internet marketing has had on the success of small and medium-sized enterprises (SMEs) in Nigeria, with specific emphasis on Jumia Nigeria.

​​​​​​​STATEMENT OF THE PROBLEM

Online marketing has changed and is still changing the way business is conducted around the world. The commercialization of the Internet has driven online marketing to become one of the most promising channels for inter-organizational business processes. Online marketing evolved in various means of relationship within the business processes.

 In Nigeria, many small and medium enterprises are investing more and more in the Internet/online marketing business. In order to survive in today’s challenging environment, it is imperative that SMEs be competitive and resilient. So, the main problem of this study is to determine the effect of online marketing applications on the business success in the small and medium enterprises.

Suffice to say that online advertising or marketing in the major sites in Nigeria occupy prominent position, the effectiveness of online advertising comes from whether consumers are willing to click and watch, but the reality is that most net consumers ignore online advertising. How to attract the attention of consumers has become a very important issue. In practice, different forms of advertising can be designed to attract consumers, such as pop-up ads, button ads, advertising couplet, floating ads, full-page advertising, and so on. Especially for SMEs, due to restrictions on marketing resources, news, advertising, large-scale promotional activities, they have less chance of publicity, so website promotion via the Internet means is much more important for them than big ones. Thus, this study investigates relationship between online marketing and small and medium sized businesses performance in Nigeria.