Why Digital Marketing is Important
Malaysia has a high internet and smartphone penetration rate. The extensive use of the Internet and availability of gadgets like personal computers and smartphones make accessing the online market easy, especially during the pandemic.
The productivity increases since digital operations play a vital role in management that includes the ability to manage and manipulate a large volume of data. The factors of production like material and labour would be easier to control and manage using the digital production method, thus increasing the production volume.
Although not many SMEs in Malaysia have implemented digital marketing in their business, nearly 80% of SMEs in Malaysia have started to recognise the benefits of taking the business online. Some of the benefits include:
Reaching out to a broader market
Taking advantage of Digital Marketing will help SMEs to reach out to a broader market base that would otherwise not be possible. Malaysians prefer to find essential information from the internet. When a business utilises the Internet, their market base would increase.
For example, if Ali wants to have a coffee in Kepong, he will google ‘best cafes in Kepong’. If the café is listed on Google Business or have a Facebook/ Instagram page, it has a better chance to stand out and out beat its competitors.
Same goes to SMEs that are selling products. For instance, If Ali wants to buy a watch / some pants, he will google “watch less than RM XXX” / “RM 50 khaki pants”. If the SME has an online presence and is doing digital marketing, it has better chance to sell the products as compared to the competitors that do not take their business online.
The shift of the shopping behaviour
A lot of Malaysians are shifting their shopping behaviour and routine. As a result of the COVID-19 pandemic, online shopping is the new norm for Malaysians. Even without the pandemic, Malaysia’s Internet economy has already shown a steady growth at a 21% annualised rate.
A recent study claimed that Malaysia ranks first among its ASEAN neighbours in terms of eCommerce sales growth. It is forecasted to grow from US$8.3 billion in 2019 to US$12.9 billion in 2022.
71% of Malaysians will also compare reviews from various social media sites before settling on the company that they would like to work with or buy its services. As a result, only those businesses that maximise on making their online presence will likely see more conversions.
Therefore, it would an excellent opportunity for SMEs to have their online presence as well as improve their general ability to convince their viewers that they are the best company or site to work with. To start, create an official Facebook Page will be a good initiate for SMEs to take their business online.
By utilising the digital marketing tool, it is more cost effective compared to traditional marketing. SMEs should be fully utilising the digital marketing as it does not need a high usage of capital and it can be done almost immediately.
By engaging the right team, your product, services and brand can quickly gain the awareness from your targeted audience.
Earn higher revenues and return on investment (ROI)
Many SMEs claim that by utilising the digital marketing base, in return it can generate better return on investment. It is also likely to have higher conversion rate because the target audience is online.
This directly will attribute to higher revenues for the SMEs. They pay lesser cost and earn more profit.