Applied mathematics in engineering, management and technology 4(3) 2016:8-14

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The Effect of Using E-Marketing in SME Marketing Success

Mahrokh mokhtaran
Assistant professor Manager of Department of management and accounting of Islamic Azad University, Firoozkooh
FatemehSadat haghdoust gilani
Department of management and accounting Islamic AZAD University, Firoozkooh Branch, IRAN

Abstract

The aims of this study, "Effect of email marketing for small business marketing success
(Plastic industry manufacturers in Tehran)", is survey effect of electronic marketing for
the small business marketing success and develop and test a conceptual model of the
antecedents and consequences of the use of electronic marketing by them. This study in
term of purpose is empirical and the nature of data gathering is descriptive. For this
purpose, library studies (written books, articles and international scientific journals,
thesis and Internet) and field studies (questionnaire) were used. The conceptual
framework is consisting of structural funds of electronic marketing, electronic
marketing tools, pre-sales activities, post-activities sales, marketing performance and
marketing effectiveness. In addition, 12 hypotheses was introduced and tested. Data
gathering confirmed with designed questionnaire, consist of 28 questions, and sending
it to 1015 plastic industry manufacturers with e-mail and personal referral. Data
analysis is confirmed with statistical software SPSS 18.0 , Amos21 and Lzrel 8.5 and hypothesis of this study was stabled.
The findings shows that the use of electronic marketing tools have a positive impact on the pre activities sales, post
activities sales and marketing performance and marketing effectiveness. The results of this study have important concepts
for the field of marketing as the key role of the marketing staff in the successful implementation of electronic marketing for
small business firms stressed.

Keywords: electronic marketing, small business, marketing performance, marketing effectiveness

1- Literature review

- E-Marketing

One merit of the Internet is that it provides an efficient means for increasing companies marketing activities.
However, attention should be paid to the effectiveness of the Internet in relation to an organizations
achievement of short- and long-term goals, its recognition of strategic shareholders (including customers,
managers, proprietors) and the satisfaction of their desires (A. Sharma, J.N. Sheth, 2004). In addition, e-
marketing effectiveness consists of an increase in eloyalty, an increase in sales and an increase in customer
attraction (J. Oh, S. Fiorito, S. Cho, H.C.F. Hofacker, 2008).
With regards to the importance of increasing the number of customers and becoming more customer-oriented in
a market environment, customers are very important strategic shareholders for companies, and marketing efforts
need to satisfy the customers.
In this study, effective e-marketing relates to the ability of a company website to meet the demands and needs of
managers from a marketing point of view. Online buying and ordering is currently popular among buyers and
companies. For marketing activities to be effective, companies should use different methods to satisfy customers
to increase the numbers of products sold in the e-marketing environment (S.L. Huang, F. Lin, 2007). Building a
long-term relationship with customers is based on customer loyalty, and the Internet environment and e-
marketing represents an inexpensive way to build these relationships (H.H. Chang, S.W. Chen, 2008).
In this context, the real situation of e-marketing will be seen through an on-line survey that has been supplied to
retailers of Spain for their completion and four in depth interviews. After analyzing the state, enriched technical
solutions through the Web Usage Mining process will be proposed and linked to new discovered e-marketing
trends.
Finally, a few commercial and open source solutions that can help in the creation of concrete solutions for these
new e-marketing trends will be displayed.

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- Small medium enterprises (SMEs)

Small medium enterprises (SMEs) are recognized as one of the main contributors to economic, development and
employment growth. Despite it play a major role in todays world economy, SMEs is well known having
limitation and acceptance barriers in adopting a new technology although the revolution of internet and
communication channel has changed the way people conduct business today.
Large-sized and small and medium-sized companies use more and more different kinds of alternative ways of
marketing communication. Experiential marketing has become part of corporate marketing strategy especially
of large-sized companies. Experiential marketing is defined as a process of identifying, satisfying customer
needs and aspirations, profitably, by engaging them through two-way communications that bring brand
personalities to life and
add value to the target audience (Smilansky, 2009). Next, Smilansky added that experiential marketing is an
integrated methodology and its marketing campaign is built around one big idea involving two-way
communication between the target audience and the brand, therefore creates its core, a live brand experience.
Alternative types of customer experiences are mentioned in Schmitt (1999) and Alkilani, Ling, Abzakh (2013)
researches where the authors use this approach to create a concept of strategic experiential modules. These
experiential modules managed by the experiential marketing include: sensory experiences (sense); affective
experiences (feel); creative cognitive experiences (think); physical experiences, behaviors and lifestyles (act)
and social identity experiences that result from relating to a reference group or culture (relate).

The factors affecting SMEs business success were classified into the following categories: (1) entrepreneur
characteristics, (2) characteristics of SME, (3) management and know-how (4) products and services (5)
customers and markets, (6) the way of doing business and cooperation, (7) resources and finance (8) strategy,
(9) external environment, and (10) internet.

Despite various researches regarding the success factors of SMEs there are numerous studies investigating the
business failure and a number of theories and thoughts on what constitutes a failed business (Ihua, 2009, 200).
The most significant contributing factors to failure among SMEs can be summarized as follows; lack of
managerial expertise, poor management and management inability (Shah et al,Mundim et al, 2000, Ihua,2009),
inadequate staff and learning failures, quality failures, institutional weakness (Gonzales,2009), shortage of
resources (Chak, 1998), inadequate capital/poor economic conditions (Shah, et al; Ihua,2009, Franco and Haase,
2010), lack of institutional support, as well as co-operation and networking (Franco and Haase ,2010), lack of
technical competencies (Mundim et al, 2000).

2- Research methodology

The studies examined the characteristics of E-marketing, for a better understanding of these conditions and
provide ways to increase SME Marketing Success, are descriptive - survey. Moreover, since this study was
conducted in a dynamic organization and the practical results can be used to solve administrative issues, was
applied research.
Research questions have been Describe to determine the impact of E-Marketing on SME Marketing Success. In
this study, a survey conducted for the study of the characteristics of E-Marketing in. So, scrolling through the
library documents and websites on the Internet is done randomly.
Statistical population this research IRAN industries 1550 employees in Tehran province, The sample was
randomly selected from lists of employees who were selected by sweepstakes.
Data gathered in the research was used questionnaire, survey questions that variable based on model research
and previous studies and theoretical frameworks have been developed to determine the desirable indicators
related to E-Marketing and SME Marketing Success questionnaire.
E-marketing questionnaire consists of 28 items have been formed with 6 items, that include 5-point Likert scale
from strongly disagree, disagree, agree idea, is strongly agree. In this research, Cronbach's alpha was used to
evaluate the reliability of this questionnaire which results in Table 3.

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Table 1: Cronbach's alpha result

Research variables Cronbach's alpha
E-marketing budget 0/774
E-marketing method 0/729
Presale activity 0/804
After sale activity 0/891
Marketing performance 0/749
Marketing efficiency 0/775
TOTAL 0/785

3- Results

The inferential analysis, pre-test the hypotheses to be tested using confirmatory factor analysis we examine
validity. Fitness test, confirmatory analysis and direction indicator RMSEA, or the square root of the variance

estimation approximation error less than three and less than eight percent index (GFH, CFL, IFI, NNFI) is
higher than 90%. The amount of (T- Value) ratio significantly greater than 2 and less than 2 per variable, the
model is a good fit, or a reasonable approximation of the society.
In order to analyze the relevant data and choose the kind of test, you first need to check the status of the
variables considered normal. Variables used to evaluate the normality test were Kolmogorov-Smirnov test.

- Confirmatory factor analysis, independent exogenous variables

Figure (2) measurement model independent or exogenous variable in standard estimates show. The estimation
results indicate the suitability of its indicators. According to AMOS software output 2 alculated value is equal
to 98.01 compared to (divide by) less than the number 3 is 62 degrees of freedom. RMSEA value is equal to
0.077. Limit RMSEA, 0.08 is. Indicators NFI IFI, RFI, NNFI and CFI all over 90/0 calculated that the amount is
reasonable and reflects the model.

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Figure 1: Measurement model exogenous variable in the standard estimate

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Figure 2: Model measurements exogenous (independent) in a significant

- The main research hypotheses by analyzing the software Amos (structural model)

One of the strongest and most appropriate analysis methods in behavioral science research, multivariate
analysis. For the multivariate nature of such issues and can not be the way the two variables (each time only one
independent variable with the dependent variable is considered to be) solved. Therefore, in this study to confirm
or refute hypotheses, structural equation modeling and path analysis were used in particular. Path analysis
(structural model) techniques that relationships between variables (independent, intermediate and dependent)
shows simultaneously. The purpose of the analysis is to identify causality (impact) between variables is the
conceptual model.

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Table 2: Indicators model fitting

Accepted value Calculated value Indicators fitting

Under 3 2.73 Chi.squar/df
Under 0.08 0.079 RMSEA
Under 0.05 0.000 P.Value
Upper 90 % 91- 99% IFI,RFI,NNFI, NFI

Table 3: significant structural model

Result Path coefficient significant Relationship

Accept 10.379 0.742 Presale activity <--- E-marketing budget
Accept 3.419 0.213 Presale activity <--- E-marketing method
Accept 5.858 0.568 After sale activity <--- E-marketing budget
Reject 1.669 0.151 After sale activity <--- E-marketing method
Reject -1.351 -0.198 Marketing performance <--- E-marketing budget
Reject -0.844 -0.149 Marketing performance <--- E-marketing method
Accept 2.746 0.227 Marketing efficiency <--- E-marketing budget
Accept 2.738 0.280 Marketing efficiency <--- E-marketing method
Accept 4.185 0.637 Marketing performance <--- Presale activity
Accept 4.317 0.378 Marketing efficiency <--- After sale activity
Accept 4.568 0.319 Marketing performance <--- After sale activity
Accept 2.020 0.356 Marketing efficiency <--- Presale activity

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