EFFECTS OF DIGITAL MARKETING TO SMALL BUSINESSES IN THE MUNICPALITY OF

CUYO, PALAWAN

A Research Proposal

Presented to the Faculty of

Bachelor of Science in Business Administration

PSU-PCAT

Cuyo, Palawan

In Partial Fulfillment

Of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Financial Management

By:

DE LA TORRE, SHARALYN A.

BAAC, MARK JERALD

MAGBUKID, SHEILLA MAE

PALANOG, JENNY ROSE

ZUMARRAGA, MARICEL, G.
 Chapter I

INTRODUCTION

This chapter presents the background of study, statement of the problem, significance of

the study, scope and delimitation of the study and definition of terms, in order to gain through

understanding of the study.

BACKGROUND OF STUDY

Marketing is a significant factor that impacts a business’ marketing performance and

competitiveness (Sadiku-Dushi et al., 2019). Digital tools, such as Internet, mobile devices, and

social media have a prominent role in a business’ marketing strategy (Michopoulou & Moisa,

2019). Business use digital tools such as social media to improve their performance, increase

profitability, and thereby achieve a competitive advantage ( Etter et al., 2019; Michopoulou &

Moisa 2019) . However, to be effective, digital marketing requires a well- executed strategy

(Negoita et al., 2018). Existing knowledge and practices have been challenged due to the strong

and fast paced digital developments that keep changing markets. As changes in marketing

environments occur, consumer needs change and marketers must find appropriate

communication needs to satisfy their customers. (Davidavicience et al., 2019)

Practical use of various online tools by business leaders leads to new opportunities

(Gaikwad & Kate, 2016). The Internet is a trusted source that consumers turn to before

purchasing products and services (Smith, 2017). Business leaders use the Internet as a

marketing tool for financial success and to aid in fostering communication with the visibility and

channels of online sales and social media advertising becoming 2 robust ways to reach various

markets for business expansion (Banica, Brinzea, & Radulescu, 2015). In 2013, there were 28.8

million small businesses, representing 99.7% of all organizations (U.S. Small Business

Administration, 2016). According to Jones, Borgman, and Ulusoy (2015), consumers are using

Internet technologies in increasing numbers, which presents opportunities for businesses to

discovered 69% of consumers use social media to share information about products and

services. However, succeeding with online marketing requires resources to create quality

content and build followers. The benefits of online marketing include: (a) economic pricing, (b)

the targeting of diverse demographics at once, (c) providing products and services conveniently,

and (d) allowing customers to easily research products and services to expedite the purchasing

decision (Durmaz & Efendioglu, 2016). Online marketing provides opportunities for businesses

to gain economic value via collaboration with stakeholders, customers, and employees

(Purkayastha & Sharma, 2016). Small retail business leaders must incorporate online marketing

strategies into their business plan to decrease the possibility of failure, grow their business, and

become more profitable

Digital marketing is the use of internet, social media, search engines, mobile devices,

display advertising and other channels to reach consumers. So, if an enterprise cannot be found

in social media, then it does not exist, seems to depict consumer behaviour nowadays. It should

be clear that the utilization of digital channels is imperative for brands, and it should be

advanced in to small businesses if they want to stay viable and grow.

At present, the Municipality of Cuyo in Palawan Province has _____ registered small

businesses ranging from wholesale/retail, restaurants and pension houses, and other service

industries. The result of this study will help the local business owners of Cuyo have an idea on

how their businesses could grow with the aid of digital marketing. It may also open significant

opportunities for the Municipality of Cuyo to grow economically. Currently, there is no existing

study on the effects of digital marketing in Cuyo. Therefore, the researchers have chosen this

topic as the focal point of their study.

STATEMENT OF THE PROBLEM

businesses in Cuyo, Palawan. Specifically, it will seek answer to the following questions:

1. What are the demographic profiles of the business owners?

2. Do the respondents deploy digital marketing in their business?

3.

SIGNIFICANCE OF THE STUDY

This study is significant because through this we can determine the effects of digital

marketing to small businesses here in Cuyo, Palawan and business owners will gain further

knowledge and skills in promoting their business, products and services online, also on how to

use digital marketing strategy properly. This is specifically significant to the following:

For the community, if they will be given an opportunity to read this research they will

have an insight regarding of the impacts of digital marketing strategy to their business.

For the schools, if the researchers will come up with a good result it will benefit the institution,

teachers and students.

For the teachers, it will help to improve their teaching performance and also awaken

their business ideas if they planning to start a business in the future.

For the student, through this study they can develop their ability and skills on how to start a

business in the future, also they enable to know what marketing strategy they will use

effectively.
 For the parents, it will help them to encourage their children even their relatives to be

more creative and resourceful regarding on their business.

For the researchers and future researchers, this study will help them to find out the

impact of digital marketing strategy and also on how to use digital marketing effectively to

improve and make the business more profitable.

The findings of this study might be valuable to small businesses by providing information

demonstrating the potential importance of online marketing. The results from this study reveal

successful digital marketing strategies that could be used to aid in purchasing decisions and the

creation of relationships between small businesses and consumers. Researchers have

discovered business leaders who create an online presence can benefit from free media,

continue to generate sales, and improve local economies.

SCOPE AND DELIMITATION OF THE STUDY

This study titled “THE IMPACT OF DIGITAL MARKETING STRATEGY TO THE SMALL

BUSINESS IN CUYO, PALAWAN”. The study will covered small business leaders, conducted in

selected barangay’s in Cuyo, Palawan area, with a total respondents of 50 small business

leaders. This will be started on November 2022 and will be completed on

______________________.

DEFINITION OF TERMS
Business - described as an organization or enterprising entity that engages in professional,

commercial or industrial activities. ( m.economictimes.com)

- In this study it refers to the specific variable in the said research.

Business Owner. is a term that refers to individuals who establish and operate an entity that is

engaged in commercial, industrial or professional activities with the purpose of deriving profits

from its successful operations. ( fundsnetservices.com). In this study, it refers to the

respondents of the research study.

Devices – are objects or system that has a specific purpose or intention, like electronic

communication

devices like cellphones. But in the phrase “left to your own devices”, it means

your ability

to figure out alone or entertain. ( vocabulary.com )

- In this study it refers to the technology or tools that small business owners used in

uploading their business products and services.

Digital – describes electronic technology that generates, store, and processes data in terms of

two states:

positive and non-positive. ( techtarget-com.cdn.ampproject.org )

- In this study it refers to the marketing strategy thus the small businesses used.

Impact – is the ultimate effect of the program on the problem or condition that the program or

activity

was supposed to do something about. ( kautilyasociety.com )

- In this study it refers to the effects or cause of digital marketing strategy in small

businesses.

Internet – is a globally connected network system facilitating worldwide communication and

access to
 data resources through a vast collection of private, public, business, academic

and

government networks. ( techopedia.com )

- In this study it refers to one of the kind of marketing strategy being used in the

business.

Marketing – refers to any actions a company takes to attract an audience to the company’s

product or

services through high- quality messaging. It aims to deliver standalone value for

prospect

and consumers through content, with the long- term goal of demonstrating

product value,

strengthening brand loyalty, and ultimately increasing sales. ( blog.hubspot.com )

- In this study it refers to the way how small business owners promote their

businesses.

Online – refers to when an electronic device is on and connected to other devices, such as

another

computer , a network or a device such a printer. ( techopedia.com )

- In this study it refers to another kind of marketing strategy of a business.

Questionnaire – is a list of question or items used to gather data from respondents about their

attitudes,

experience, or opinions. ( scribbr.com )

- In this study it refers to the tool used by the researchers to conduct a survey.

Small- a small person, thing, or amount of something is not large in physical size.

(collinsdictionary.com)
 - In this study it refers to what kind of business that needs to be asking or survey.

Strategy – refers to basic directional decisions that are to purposes and missions. A plan of

action

designed to achieve a long-term or overall aim. ( Oxford Dictionary

weareyeomans.com.ik)

- In this study it refers to the techniques and ideas of a small business owners to make

their

business profitable.