Improving the Performance of Small Micro Enterprises Through the Implementation of Digital Marketing

Abstract

The growth of micro and small businesses in Kendari City cannot be separated from the role of business actors who take advantage of the current development of internet technology. The Southeast Sulawesi MSME Forum conducted an initial survey in 2020 covering 45 MSEs, consisting of 42 micro businesses and 3 small businesses and showed that the number of respondents who use the internet to promote and sell their products such as facebook, instagram, whatsapp and youtube websites reached 72%. and 28% of them have not used the internet media.

MSMEs can take advantage of digital marketing, but empirically there are still many who have not made maximum use of it due to limited knowledge of the media used. The level of utilization of digital marketing is quite high but sales turnover made through online media is 16 MSEs only able to sell their products below 10% of turnover, 20 MSEs with turnover below 50% and the remaining 9 MSEs with a turnover of 50% and above. Therefore, it is very important to examine the role of digital marketing in improving the performance of micro and small businesses.

The purpose of this research is to improve the performance of micro and small businesses. The stages of the research method are (a) Develop instruments as well as test validity and reliability, (b) The data that has been obtained are then tabulated according to the observed variables. Furthermore, it is described, (c) conducting analysis and discussion related to the role of digital marketing in improving the performance of micro and small businesses. (d) examine the appropriate model for improving the performance of micro and small enterprises. (e) Draw conclusions and provide recommendations on improving the performance of micro and small enterprises through the resulting model.

The output target is a Sinta accredited national journal. 5. The proposed level of Technology Readiness (TKT) is 2, namely Digital marketing, has been identified, theoretical/empirical studies) allow digital marketing technology to be applied; The theoretical and empirical designs have been identified; The basic elements of the digital marketing technology that will be developed are known; The characterization of the digital marketing technology components that will be used has been mastered and understood; The performance of each of the constituent elements of the technology to be developed has been predicted; Preliminary analysis shows that the main digital marketing functions needed are working well; Models and simulations to test the correctness of the basic principles of digital marketing technology have been created; Analytical research to test the correctness of the basic principles of digital marketing technology has been carried out; The components of digital marketing technology that will be developed separately can work well; The equipment used has been tested for validity and reliability and the stages of using digital marketing are known.

The results of the study found that improving the performance of micro and small businesses can be done by implementing digital marketing, namely implementing an increase in business perspective, increasing distribution, increasing goods and services using customer feedback, awareness of business image, building interaction with customers and increasing the number of consumers. To make the application of digital marketing effective, Micro and Small Business actors need to increase their knowledge of digital marketing, increase the level of internet use and use various types of social media.

Keywords: Digital Marketing, UKM Performance

DOI: 10.7176/EJBM/13-20-09

Publication date:October 31^st 2021