Effect of Digital Marketing on the Sales and Profitability of SMEs in Islamabad

Abstract

(SME) small and medium enterprises are non-subsidiary, independent firms which employ fewer than a given number of employees. This number varies around countries. The purpose of the study is to understand the influence of digital marketing on sales and profitability of SMEs in Islamabad. The dependent variable is the sales and profitability of SMEs while the independent variable is digital marketing, as the study focuses on the effect of digital marketing on the sales and profitability of SMEs. A survey was conducted to gather data for research. Quantitative analysis was done and the results were analyzed using SPSS. The results of the study show the influence of digital marketing with moderator usage of social media and internet on performance of SMEs. Both the factors have a significant positive effect on performance of SMEs. The study will help retailers and restaurant owners to focus on social media marketing and aim for more development of digital marketing. Similar studies have been conducted in other regions of the world but not in Pakistan. Insights from this study will help the local retailers and restaurant owners to place their trust in social media marketing. The idea of digital marketing having an effect SME performance was not solidified by proper research in the local scenario. Similarly, the idea of e-marketing playing a role in sales and profitability was not yet proved. This research aims at providing substantial evidence of that.