Chapter I

THE PROBLEM

Introduction

Recent technological advances have created a big impact in today‟s

society. The most common among them is the use of the development of Internet

and social media to create platforms that suits every person‟s interests. Some of

these platforms are Facebook, Twitter and Instagram, and used as an extensive

web platforms. The number of people who are into social media has drastically

increased over the past years. More and more people are now surfing the

internet, whether it be for work or educational purposes, communication to family

and friends, and even for entertainment. There is no doubt that internet surfing

has become an essential part of people‟s lives.

The rise of social media had not only spurred the interests of the masses,

but also transformed the way of businesses. More people are now using social

networking sites to communicate with other people, than talk to them personally.

Due to the great amount of users of these sites, it became the perfect platform

for businesses to market their products and services to people. Even small-time

businesses grabbed the opportunity that social media provides to catch the

public‟s attention. Nowadays, the majority of businesses use social media to

enhance their relationship with their customers, and thus, have a chance to

increase their sales.

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The wide range of internet has been embraced in modern businesses and

that included the online marketing as the part of the system. Promoting business

online has captured entrepreneurs and businessmen‟s interest and adopted the

use of internet as it gives them an opportunity to widely spread their product

without spending a lot of money and time. Business owners or potentiated

business persons has been taken the internet as their own advantage and as

their asset to reach their product to the potential customers through the channels

or their web-based business.

Understanding the impact social media has on a small business is

becoming more important as potential consumers join and spend a large amount

of time using social networks (Banda, 2012). Businesses have been exploiting

the web-based channels leveraging the online marketing as a technique or

method in order to spread and ensure the awareness of their product through the

social networking sites.

This research aimed to distinguish the impact of online marketing to the

sales of micro-businesses. Specifically, it will determine how the positive effects

and the negative effects of online marketing affected the changes of sales on the

micro-businesses, how the business‟ owners evaluate the negative effect of

online marketing to increase their sales, and make some ways to use the positive

effect of online marketing.

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Statement of the Problem

This study aimed to gather information related to online marketing and

evaluated those data in connection with its impact on the sales of micro-

businesses. Specifically, the researchers sought to achieve the following

objectives:

1. Determine the effects of online marketing to the sales of micro-business in

terms on its impact on the following aspects:

a. Product Awareness

b. Networking and Relationships

c. Competition Online

2. Identify solutions from micro-business owners on dealing with the negative

impact of online marketing; and

3. Recognize ways on making use of the positive effects of online marketing

from micro-business owners on keeping their businesses as profitable as

possible.

Significance of the Study

This study focused in providing an in-depth understanding of the impact of

online marketing to the sales of micro-business. This study is not only significant

to the micro-scale businesses but also to entrepreneurs, society, researchers

and readers.

Micro-Scale Businesses. This study will be a great help for micro-scale

businesses as they will give focus on the marketing of products through online
 4

media that can lessen their expenses. Additionally, it can help them boost their

sales of their products and services since the advantages and disadvantages of

online marketing will be emphasized in the study.

Entrepreneurs. This study will guide student and non-student entrepreneurs on

the advantages and disadvantages of using online media in marketing to the

sales of micro-scale businesses. Thus, it will serve as a new avenue for them to

use technology through online media in marketing and advertising their products

and services.

Society. This will bring socio-economic significance as the outcome of this study

will inspire entrepreneurs and other businesses to develop an effective technique

on the marketing of sales through online media.

Researchers and Readers. The results will provide the researchers and readers

with some knowledge on how online media will affect the marketing of sales of

micro-businesses. In that way, the researchers and readers can share

information and ideas to those people who will pursue business related courses.

Scope and Delimitation

This study is descriptive in nature and mainly focused on the impact of

online marketing to the sales of micro-businesses. Furthermore, the study

discussed the role of social networking sites on promoting business products and

services as variables in a certain business' success.

Notably, the research sample is delimited to the ten (10) student and non-

student entrepreneurs who resides from a highly-urbanized area, specifically, in

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General Santos City. The gathered perspectives on the impact of online

marketing to sales are delimited to microbusiness owners‟ everyday experiences.

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Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the literature, studies, conceptual framework,

hypothesis, and definition of terms which the researcher found to have direct

bearing or relevance to the present study.

Related Literature

Social

The term „social‟ refers to the ways in which individuals connect with other

people – friends, family, colleagues, and peers. It requires a two-way

acknowledgement of a relationship and is different than more casually associated

followers. The term also provides insights into why the people are connecting

with each other – perhaps to learn new things, to share experiences, or to

collaborate a project (Evans, 2010).

Entrepreneurs

A term that defines a person who starts a business that is willing to risk

loss in order to make money. Entrepreneurs are people who had a great

willingness to do something that is beyond their control and knowledge.

Entrepreneurs were also called as an enterprising person that could take to take

dangerous decisions in order to gain something new and develop new strategies

(Certo & Certo, n.d.).

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Social Networking

Social Networking is defined as the creation and maintenance of personal

and business relationships especially online. According to Celine Arca, Master of

International Marketing, Social Networking is the grouping of individuals into

specific group online as they work like an online community of internet users that

are regrouped depending on their shared interests in hobbies, religion, politics,

and alternative lifestyles. Celine Arca also implies that social networking sites

can be whether personal oriented like Facebook and Google+ or professionally

oriented like LinkedIn where it contains lots of information about prospective new

hires, customers and competitors.

Social Media

According to Dave Evans, social media relates to a self-generated,

authentic conversation between people, about a particular subject of mutual

interest, built on the thoughts and experiences of the participants and, therefore,

social media is all about sharing and aiming at a collective vision, often intending

to offer a more appropriated or informed choice at the end. Furthermore, social

media changes over time as it allows people to generate the content in a

participative way whenever they want to add any additional piece of information.

The meaning of the term social media can be derived from two words,

which constitute it. Media generally refers to advertising and the communication

of ideas or information through publication/channels. Social implies the

interaction of individuals within a group or a community.

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Social Media Marketing

Social media marketing seeks to engage customers where they naturally

spend their time as Dave Evans says, social business picks up on what

customers are talking about and connects this back into business where it can be

processed to create the next round of customer experiences and hence, the next

round of customers‟ conversations.

Social Influence Marketing

According to Shiv Singh, Social Influence Marketing is fundamentally

about marketing on social platforms such as Facebook, Twitter, etc. and it is also

being defined as a technique that employs social media and social influencers to

achieve an organization‟s marketing and business needs. Social influencers are

everyday people who have an outsized influence on their peers by virtue of how

much content they share online. It is also a technique that employs social media

content. It specifically focuses on recognizing, accounting, and tapping into the

fact that as your potential customer makes a purchasing decision, he‟s influenced

by various circles of people through the conversations that he has with them

online, when he shares his own social media and consumes theirs.

Social Influence Marketing matters as it will be served as a tool for the

entrepreneurs that influences the people who is interested on their product in

online platform. Thus, it utilizes the influence of a certain individual that impacts

the consumer behavior.

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Social Feedback Cycle

The set of tools that make it easy for people to create and publish content,

to share ideas, to vote on them, and to recommend things to others. The well-

established norms of business marketing have been undergoing a forced

change. The social feedback cycle is important to understand because it forms

the basis of social business (Evans & McKee, 2010).

Social feedback Cycle provides a link between the basics of social

marketing and the social technologies.

Micro Business

Micro-business is a business that operates on a very small scale. Micro-

business has been recognized as a small enterprise as a distinct type of

business that was being handled by only one or very small people that is

purposely for their own need (SBB, 2016).

Related Studies

The internet has gradually getting into people‟s interests and also make

opportunities especially for the business minded persons worldwide. Social

networking is defined as the creation and maintenance of personal business

relationships especially online. The growth of new social networks in 2000,

dramatically transformed the interaction between people and organizations that

shared common interest in music, movies, education, friendship, etc. (Watson

2011). Thus, this relative growth has made micro-businesses‟ owners to come up
 10

with the decisions to promote products online and prove that online marketing

can be a tool to increase sales of products.

Social networking has not only affected the business relationships online

but also social media carries a big responsibility towards the abruption of online

marketing concerning the micro-businesses‟ performance especially on its impact

on the entity‟s sales.

On a study by Sisira Neti (2011), an Assistant Professor in Department of

Business Management at PG Centre, Lal Bahadur College Warangal, social

media is all about networking and networking in a way that espouses trust among

parties and communities involved as for the businesses it represents a marketing

opportunity that transcends the traditional middleman and connects companies

directly with customers.

According to the American City Business Journal, small businesses that

uses Internet have grown 46 percent faster than those that do not (Howard,

2002). This relatively increase of internet usage by micro-businesses has lead

into the improvement of brand awareness and brand trust towards specific

products and items, thus, affecting micro-businesses‟ performance as a whole.

On a study done by Neti (2011) asserted that social media has been

beneficial to businesses as online marketing reduces the cost of marketing since

it decreases staff time. Also, online marketing has positively impacted business

by increasing its probability of revenue generation.

For the purpose of this research, online marketing consists of the attempt

to use social media as platforms to persuade consumers that a business product

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is worth trying for. Furthermore, online marketing is simply defined by Lazer and

Kelly (1973) in their study as the application of marketing expertise to improve

social as well as economic ends of business.

On a similar study done by Evan (2010) examined that various businesses

are adopting online marketing at different rates while some started using this type

of marketing to reach more potential customers easier and to increase probability

of involvement of business sales. As a matter of fact, a survey of Forrester

Research Institute on 2000, asserted that with the number of businesses

connected in the Internet proliferation which is very evident in the increase of its

number from 4% to 33%, online marketing is highly approved and commonly

used by business-to-business organizations (Business Marketing, 2008).

Another, provision and usage of online marketing to connect to customers

is largely related to two factors. Firstly, since online marketing entails essentially

lower cost but greater benefit as its interoperable distinct characteristics that

makes up the positive side it brings over the other competitive and competent

information networks such as value-added networks, open EDI systems and

Intranets. Secondly, online marketing might be connected to the enhancement of

information and interactive tool for communication, thus encourages the

development of more effective inter organizational relationships and the

emergence of new network cooperative opportunities (Avlonitis, 2013).

On a related study by Karayanni on 2015, in which he argued that sales

force automation tools, database marketing, relationship marketing, network

marketing, electronic trading systems, and, finally, the Internet are some of the
 12

highly adopted technology tools and concepts that are continuously undergoing

visible transformation and improvement making current marketing a more easier

one and sales practice in a more effective one when it comes to increase of

businesses‟ sales.

A comparable investigation done by the Harvard Business School

marketing theorists is also important when it comes to understanding the

essence of online marketing in which they elaborated that the focal deal in the

transformation in the marketing area is reduced to the shift from broadcast

marketing to interactive marketing. Thus, this shift on the type of marketing

introduces new concepts and tools are made as more responsive and interactive

to each individual business (El-Gohary, 2011). In this manner, Internet has been

illustrated as the ultimate interactive medium.

Understanding the investigation on the shift of type of marketing, the new

and improved interactive approach in marketing is conducted again by the views

of many specialists in accordance to which the current period is a transitory

period towards “the information era”, in which the management of information

has become a competitive necessity (Brodie, 2008).

However, other authors with the same studies sustained that the world

today already have reached the new society known as the “knowledge era”.

Where, competitive advantages and benefits lies on the constructed

organizational knowledge of how to establish and manage effective relationships,

both within organizations, and between customers and suppliers (Johnston,

2009). In the same vein, Glazer also argues that the long-range competent
 13

positive upbringing came from different sources in which the overall management

set of relationship between the firm and its environment as these relations are

improved through the exchange patterns.

Based on a similar finding by Howard (2004) in which he proved that a

business organization should change their ways in which they conduct and

operate business transactions in order to survive in a very competitive market.

On the other hand, there has always been a relative number of information and

data about marketing done through the use of internet and its corresponding

impacts. Undeniably, even though the Internet has brought changes, same basis

for the basic principles about online business is still governing the businesses

transactions throughout the decades.

However, a related exploration by Hoffman (2000) was done in which he

protested that the success of the way in marketing is dependent on the market

orientation to the public. He affirmed that companies sometimes fail since they

miscarry to take the customer‟s point of view in designing their online strategy.

This failure let businesses to have only a slim chance of succeeding.

Unfortunately, many firms use the Internet without considering how it fits within

their marketing strategy (Hoffman, 2000).

A paralleled study of Capon and Hulbert (2001) also argued that the

Internet should be viewed as part of the firm‟s long-term marketing strategy and it

should be integrated with all other means of formulating and implementing

strategies in a way that it conforms to the principles of a sound business strategy.

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Moreover, they\also asserted that marketing strategist of a certain

business can use the ideas presented by other theorists to formulate more

effective Internet-based marketing mix strategies or “online marketing”. Lastly, to

come up with the impact of formulation of efficient online marketing on the

business performance specifically on the changes of businesses‟ sales.

Theoretical Framework

In this part, the theories will be presented as a basis of the study that will

help the researchers in answering the problems and objectives of the study. It

will contain the following theoretical cornerstones: product awareness,

networking and relationships and online competition that later on will be used in

the findings and the analysis.

Product Awareness

Product awareness explains how a product can be recognized by the

customers or anyone related to its purchase. There are two aspects that explain

product awareness (Rosenbaum-Elliot, Percy & Pervan, 2011) which are:

product recall and product recognition. Product recall refers to the consumers‟

capability to remember the brand and product when it is being mentioned. On the

other hand, product recognition refers to the ability of the consumers to recognize

the brand and product among others. Rosenbaum-Elliot (2011) conducted a

study in which several business managers were asked which factors they

considered to provide an important competitive advantage to their companies

and the study proved that it revealed brand and product awareness was the third

most frequently mentioned aspect. Aaker (2012) explains in his article that
 15

product awareness does not only suggest familiarity but also the presence and

commitment for the brand and product that is used. Aaker (2012) also explained

that this fact is particularly important since consumers tend to be more cautious

when dealing with higher prices. One way of influencing product awareness is

through networking. The more people the company interacts with, the more

people will be aware of the brand, product, or company if it is talked about.

Networking and Relationships

Communication network is described as “interconnected individuals who

are linked by patterned flow of information”. When studying networking and

relationships, it is the sharing of information between these linkages in the

interpersonal connection that is analyzed (Rogers, 1995). Networks can be

visualized as a spider‟s web that is made up of stakeholders. A network can be

explained as a structure that is established by several different threads that

interlink patterns in the business environment just like a spider‟s web, where

each thread or stakeholder is connected to another one such as relationships

with customers, suppliers, distributors and competitors. Also manufacturers,

suppliers of different materials that the firms use to produce complementary

and/or competing products are also actors of a network (Håkansson & Ford,

2002). When being part of a network, it is extremely hard, almost impossible to

control the process or the results of the relationship that take place in a network

between the nodes However through repeated interaction between the actors, a

unique relationship is created with its own characteristics (Payne, Ballantyne &

Chistopher, 2005).
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Relationship marketing that is utilized correctly could result in increased

market shares. Another benefit with relationship marketing is that it makes

networks stronger and it can also increase the commitment and trust which

results in loyalty, especially in the long term perspective. There is an importance

in choosing the channels that the customers appreciate to work with, otherwise

the effort the company puts in relationship marketing is without use or value (Gil-

Saura et al., 2009). Gil-Saura et al. (2009) further argued that the higher

perceived value the customer has of the relationship, the higher the possibility is

that the relationship will continue. By working with strengthening relationships the

value for all involved within the relationship will increase, especially in the long

term perspective. The benefits do not only consist of relationship improvements;

the benefits do also show financial improvements, such as lower costs and more

efficient customer relationship management (Lambert & Enz, 2012).

Online Competition

There are few business journals and other academic literature that deals

with how social media and online communities can be used as a part of

company‟s marketing strategy. So far, it is established that marketing is about

building profitable customer relationships and the basis of marketing is to

understand the consumers‟ needs and desires better than the competitors when

it comes to a specific product or service, and the process of satisfying these

needs through an exchange process (Armstrong, 2009; Kotler & Armstrong,

2012) that in turn leads to a company being competitive.

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Digital marketing is the fastest-growing form of direct marketing that

market products and services and build customer relationship over the Internet

(Kotler & Armstrong, 2012). This type of marketing, especially social media, can

lead a series of competitive advantages and benefits. There are several

advantages, for instance this type of marketing is more cost efficient than similar

traditional marketing. The main goal of social media is to create an advantageous

corporative reputation and to establish relationships toward the customers.

The use of social media and online communities can expose a previously

unexploited market potential of individual, so called non-segmented consumers

with very specific interests and demand for low-volume, customized products and

services (Constantinides & Fountain, 2008). Due to low volumes or high

customization such clients have so far remained below the radar of the traditional

marketing. New service-based business models are giving new opportunities for

reaching small individual customers by using digital marketing strategy

(Constantinides & Fountain, 2008).

Conceptual Framework

According to Musso (2017), for a micro-business to promote its products

attractively, a utilization of a marketing strategy must be made. This marketing

strategy could result to and may come from varied forms. Furthermore, on a

study by Eid (2011) revealed that the advancement of technology was already

visible, thus, emergence of social media platforms, has made its way on the

business industry and has been considered as a powerful tool for online

marketing. It is already known that recognizing ways on how to market products

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online is essential and useful in the improvement of micro-businesses‟

performance.

In a research done by Srinivasan (2016) proved that understanding

information on how online marketing influences customers‟ product awareness,

networking and relationships as well as online competition will ensure the entire

benefit of micro-businesses even more. However, interpreting and internalizing

that failure usage of online marketing might also be possible and will surely affect

some aspect of the micro-business like its credibility would yield to decrease of

sales of the business and will lower its performance as a whole. On the other

hand, by continuing to do online marketing differently and creatively would surely

let the micro-business to have the potential to widen its scope and increase their

sales (Bhanot, 2016).

This study was based on the existing knowledge known, findings

concluded and assumptions made. Being one of the most influential ways to

promote products, nowadays, online marketing is being examined in terms of its

various impact on the sales of micro-businesses. The impact on the micro-

businesses‟ sales is then determined through the changes in micro-business‟

sales – whether it is a decrease or increase of sales. The impacts of online

marketing and sales of micro-businesses are being investigated and paralleled to

prove that they are correlated to one another.

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A diagram of the conceptual framework is being illustrated in the Figure 1.

The Impact of Online Marketing to the Sales of Micro-businesses in General

Santos City

Aspects

Product Networking and Online

Awareness Relationships Competition

Positive Effects Negative Effects

Ways to Maintain Ways to Cope

Up

Figure 1. Conceptual Framework

Definition of Terms

For clarity, specificity and clearer understanding about the content of the

study, the following terms were defined conceptually and operationally.

Aspect. A particular feature of or way of thinking about something,

especially something complicated (Cambridge English Dictionary). Operationally,

it refers to the different facet of micro-businesses specifically the product

awareness, networking and relationships as well as online competition.

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Impact. The strong effect of something or someone (Cambridge English

Dictionary). Operationally, it refers to the negative and positive effects brought by

online marketing to the micro-businesses‟ sales.

General Santos City. The southernmost city in the Philippines. It is

classified as a highly urbanized first-class city and is the regional center for

commerce and industry of the SOCCSKSARGEN region. Operationally, it refers

to the setting wherein the micro-businesses were situated and is delimited

according to the scope of the research.

Micro-business. In the Philippines, this refers to the business that

employs nine people or fewer, with assets of 3 million pesos and below

(Business Dictionary). Operationally, this is the small-scale businesses operating

within General Santos City with a monthly revenue of P35, 000 and below.

Online marketing. A set of powerful tools and methodologies used for

promoting products and services through the internet. This includes a wider

range of marketing elements than traditional business marketing due to the extra

channels and marketing mechanisms available on the internet (Techopedia).

Operationally, online marketing refers to the practice of reaching potential buyers

and promoting products online through the use of social media sites specifically

Facebook, Twitter, and Instagram.

Sales. The activity or business of selling products or services (Business

Dictionary). Operationally, sales refers to the amount the business gain in selling

products or services.
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Social Media. A series of websites and applications designed to allow

people to share content quickly, efficiently and in real-time (Hudson, 2017). It is

the collaboration of online communications channels devoted to community-

based input, interaction, content-sharing and collaboration. Operationally, it is the

online platform used to market products online and create connections between

the potential buyer and the seller.

Social networking. The practice of using social media sites, such as

Facebook, Twitter, and Instagram, to make connections with various individuals

so that one‟s business and/or social contacts will expand and develop. Social

networking establishes interconnected online communities that help people to

make contacts that would be good for them to know, even though they would be

unlikely to have met otherwise (TechTarget). Operationally, social networking is

the medium the businesses use to attract customers.

Entrepreneur. An individual who, rather than work as an employee,

founds and runs a small business, assuming all the risks and rewards of the

venture. The entrepreneur is commonly seen as an innovator, a source of new

ideas, goods, services and business/or procedures (Investopedia). Operationally,

this refers to the individuals that starts and runs the micro-businesses.
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Chapter III

METHODOLOGY

This chapter deals with the method of research to be undertaken in this

study. It includes the research design, research locale, research respondents,

data gathering procedure, research instrument and data analysis.

Research Design

This study will seek to understand the concept of online marketing and its role

in micro-businesses performance. Specifically, this study will apply the

descriptive type of research to identify the impact of online marketing and its

influence into the changes of sales revenue of micro-businesses in General

Santos City.

Descriptive type of research is designed to portray the subjects in an

appropriate way (Mukhongo, 2015). Simply put, this type of research is basically

about describing people involved in the study. In the first place, to provide a

profile or description of relevant aspect of the phenomena of interest from the

individual, organization, industry or other perspective is the main objective of

descriptive research (Sekaram, 2005).

Furthermore, this design allowed researcher for a complete thorough

understanding of the organizations which are comparable in many aspects and

the findings are expected to be applicable to other areas. Hence, the researchers
 23

chose this design as it involves investigation of the impact of online marketing on

sales which has the ability to answer as to how online marketing affects the sales

of micro-businesses of General Santos City. This research design is expected to

be able to provide a detailed analysis about online marketing.

INPUT PROCESS OUTPUT

 Questionnaire

Online
 Interview
Marketing
D

E  Data Gathering
S Impact of Online
C Marketing to the
R  Statistical Sales of Micro-
I Treatment Businesses in
P General Santos
T City
I  Presentation of
V Data
Sales of E
Micro-
 Interpretation
Businesses
and Data
Analysis

Figure 2. Research Design

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Research Locale

This study was conducted at General Santos City. General Santos City

has been considered as one of the highly-urbanized city in the Philippines and

thus, offers different businesses, specifically, micro-businesses. Wherein, these

micro-businesses use social media as a tool for effective online marketing to

market their finished products, goods, and/or services.

The researchers chose General Santos City since it is home to diverse

types of businesses, particularly, micro-businesses. Inhabitants of this city are

also inclined with the advancement of technology, hence, online marketing would

be prominent in this city. Furthermore, General Santos City is also very attainable

since it is the vicinity where Mindanao State University, General Santos City is

situated, thus, it will be easier for the respondents to conduct their study.

Research Respondents

The respondents of the study were taken from a selected number of micro-

businesses in General Santos City, wherein one representative from each

business will have to answer survey questionnaires and interviews. These

representatives are the individuals who are responsible for effective online

marketing. The target population respondents of the study is to have a research

sample which is composed of ten (10) entrepreneurs, specifically five student

entrepreneurs and five non-student entrepreneurs (either a graduate of any

course or not) who resides and in which micro-businesses is situated in General

Santos City.
 25

The researcher chose a certain number of respondents consisting of five

student entrepreneurs using quota sampling since the researchers think that

these individuals can provide the best information in regards with the research

topic as they are familiar with the advancement of technology and five non-

student entrepreneurs using random sampling. Individuals who are

entrepreneurs are targeted because they are responsible for designing policies,

supervising and directing marketing activities in the sales of their micro-

businesses.

Target Population Number of Respondents

Student Entrepreneur 5

Non-student Entrepreneur 5

Total: 10

Table 1. Number of Respondents of the Study

Research Instrument

In this study, questionnaires and interviews were the major instruments

used. The questionnaire used was designed to obtain information on the impact

of online digital marketing to the sales of the micro-businesses. Open-ended

questions were used to give the respondents the opportunity to give their

suggestions and responses. The questionnaire developed by the researchers

was developed by reading reference materials and related about online digital

marketing in micro-businesses.
 26

In order to undertake the interview, an interview guide was utilized as an

instrument for data gathering. The interview guide was created from the

conceptual framework and contains concepts that were based and

operationalized in online digital marketing. Its scope starts with considerable

open and broad questions about the company‟s online digital marketing

strategies. The discussion proceeded with a more detailed agenda, which relates

to social media and competitiveness. Qualitative interviews were utilized in this

study for clearer structure and to enable the researchers to have a deeper

discussion in the subject area.

Data Gathering Procedure

The data process below was followed by the researchers to assemble the

necessary data for the study.

First, the researchers validated the research instrument. To collect the

data, the researchers used validated questionnaires and interview guide to

conduct the interview.

After the validation of the instrument, the researchers made a letter of

approval for the five non-student entrepreneurs who resides and in which micro-

businesses is situated in General Santos City. As for the remaining five

respondents that are student entrepreneurs from various schools in General

Santos City, the researchers also wrote a letter for the students to permit them to

conduct the study with the students as respondents. The official letter of request

from the researchers was duly noted by their adviser and was also approved by
 27

the students and micro-business owners. After the given permission, the

researchers explained the purpose of the study to the selected respondents and

then make the necessary arrangements on the schedule for data gathering.

The researchers collected the data by means of survey questionnaires as

well as personal interviews and personally distributed the questionnaires and

facilitated the test-taking of the entrepreneurs on the day pre-arranged with the

student and the non-student entrepreneurs.

Data Analysis

When implementing data analysis through a qualitative research a

qualitative analysis was preferred. This specific research contains interviews with

ten (10) respondents composed of five student entrepreneurs and five non-

student entrepreneurs. Data obtained from the opinions and perspectives of the

respondents of General Santos City were analyzed as it was organized, provide

structure and elicit meaning.

The data was based on the interview that will be conducted as the

responses would be recorded and transcribed. Then, a thematic analysis was

used by the researchers in presenting, analyzing and interpreting the data.

Moreover, the researchers then used a tabular form that was based on the

thematic analysis that will be conducted.

 Chapter IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter deals with the presentation, analysis and interpretation of the

data gathered.

This study aimed to describe the impact of online marketing to the sales of

micro-businesses. The study sought to discuss the profile and nature of the

respondents and effects of online marketing to the sales of the micro-businesses

in terms of brand awareness, networking and relationships and online

competition. Furthermore, solutions on dealing with the negative impact and

ways on making use of the positive effects of online marketing from micro-

business owners will be discussed.

I. Profile of the Respondents

Respondent’s Form of Nature of Types of Social

Age
Name Business Business Networking Site

Respondent 1 Sole
21 Merchandising Facebook
Proprietorship
Merchandising Facebook,
Respondent 2 Sole
17 and Instagram and
Proprietorship
Manufacturing Twitter
Respondent 3 Sole
17 Merchandising Facebook
Proprietorship
Respondent 4 Sole
17 Merchandising Facebook
Proprietorship
Respondent 5 Sole
21 Merchandising Facebook
Proprietorship
Table 2. Profile of the Student Entrepreneurs
 29

Table 1 discusses the basic profile of the five (5) student participants

which includes name, age, form of business, nature of business and types of

social networking site used.

According to the table, the student entrepreneurs‟ code names are

Respondent 1, Respondent 2, Respondent 3, Respondent 4 and Respondent 5.

Respondent 1 was recorded as a 21 year old student who tried to market her

business through online, especially, Facebook. The form of her business is

categorized as Sole Proprietorship and the nature of her business is classified as

Merchandising.

Respondent 2 was recorded as a 17 year old student who tried to market

his business through online, especially, Facebook, Instagram and Twitter. The

form of his business is categorized as Sole Proprietorship and the nature of his

business is classified as Merchandising as well as manufacturing.

Respondent 3 was recorded as a 17 year old student who tried to market

her business through online, especially, Facebook. The form of her business is

categorized as Sole Proprietorship and the nature of her business is classified as

Merchandising.

Respondent 4 was recorded as a 17 year old student who tried to market

her business through online, especially, Facebook. The form of her business is

categorized as Sole Proprietorship and the nature of her business is classified as

Merchandising.
 30

Respondent 5 was recorded as a 21 year old student who tried to market

her business through online, especially, Facebook. The form of her business is

categorized as Sole Proprietorship and the nature of her business is classified as

Merchandising.

Types of
Respondent’s Name of Form of Nature of Social
Age
Name Business Business Business Networking
Site
Respondent 6 Nell Sole
34 Merchandising Facebook
Collection Proprietorship
Respondent 7 TG Avenue Sole
28 Merchandising Facebook
Gensan Proprietorship
Dwayne
Respondent 8 Sole
24 Online Merchandising Facebook
Proprietorship
Shop
Respondent 9 Sa Shoppe Sole
46 Merchandising Facebook
Namin Proprietorship
Respondent 10 iPhone Sole
18 Merchandising Facebook
Online Proprietorship
Table 3. Profile of the Non-Student Entrepreneurs

Table 2 discusses the basic profile of the five (5) non-student respondents

which includes name, age, name of business, form of business, nature of

business and types of social networking site used.

According to the table, the non-entrepreneurs‟ code names are

Respondent 6, Respondent 7, Respondent 8, Respondent 9, and Respondent 10

. Respondent 6 was recorded as a 34 year old non-student entrepreneur who

tried to market her business, the Nell Collection, through online, especially

Facebook. The form of her business is categorized as Sole Proprietorship and

the nature of her business is classified as Merchandising.

 31

Respondent 7 was recorded as a 28 year old non-student entrepreneur

who tried to market his business, the TG Avenue Gensan, through online,

especially Facebook. The form of his business is categorized as Sole

Proprietorship and the nature of his business is classified as Merchandising.

Respondent 8 recorded as a 24 year old non-student entrepreneur who

tried to market her business, the Dwayne Online Shop, through online, especially

Facebook. The form of her business is categorized as Sole Proprietorship and

the nature of her business is classified as Merchandising.

Respondent 9 was recorded as a 46 year old non-student entrepreneur

who tried to market his business, the Sa Shoppe Namin, through online,

especially Facebook. The form of his business is categorized as Sole

Proprietorship and the nature of business is classified as Merchandising.

Respondent 10 was recorded as an 18 year old non-student entrepreneur

who tried to market her business, the iPhone Online, through online, especially

Facebook. The form of her business is categorized as Sole Proprietorship and

the nature of her business is classified as Merchandising.

In this part, the data collected were presented in three different sections:

product awareness, networking and relationship, and online competition. The

three aspects briefly discussed the impacts of online marketing to the sales of the

micro-businesses. Furthermore, the positive and negative impact of online

marketing were analyzed and tackled as well as how to maintain and cope up

with the said effects or impacts.

 32

I. Product Awareness

RESPONDENTS RESPONSES

Student Entrepreneurs

“In terms of product recall and product

recognition, many said that they ordered
products from me due to my previous customer‟s
recommendation. There is no change in the price
setting of my products even though product
Respondent 1 awareness has increased. I can say that product
awareness is 100% important since people
nowadays are inclined to internet and they
usually seek products of high quality at lower
price through online.”

“So far social media has greatly affected the

sakes of my business, I have noticed that many
had sent me message about the product and
there are people who commented. Product
recognition affected the product‟s awareness. It
Respondent 2 is very important that product awareness must
increase so that people will recognize your
business that would yield to increase of sales.”

“First, you need to introduce the brand of your

product for your customers to be aware and so
that you can prove that your products are reliable
Respondent 3 and trustworthy, in that way, sales will possibly
increase. Those unfamiliar products here but
familiar in other places are being advertised
through social media. It is important that
customers‟ product must increase so that your
image will be instilled to the customers that would
result to higher chance of acquiring higher sales
as well.”

“I believed that when your products are better

Respondent 4 known, more people will order products then
increase your sales. Product awareness has
 33

increased, since product recall and product

recognition has increases as well due to posting
online. It‟s very important that your products are
well-known as this will yield to a larger number of
potential buyers since a lot of people will become
aware of it, in that way, if there is an increase in
the number of your potential buyers then there is
a big chance that your sales will also increase.”

“I have expectations, particularly, I expect that

my customers‟ awareness over my product will
increase. There is changes in the product recall
and product recognition of customers, many
customers order products from me due to their
memory that particular products ordered
previously came from me. It is important to
Respondent 5
increase product awareness, your products will
be better known and it will be spread to a wider
range.”

Non-student Entrepreneurs

“It is needed that you as an owner know what to

expect, you must ensure that your products are
not defected to gain trust from customers. My
store is well-known but I still administer products
Respondent 6 within the same price so that customers will still
opt to buy from us. It is essential to maintain the
quality of products, it is important to maintain the
brand image to customers.”

“Before we started building our physical store, I

do business through online shop. As time passes
by, my business begun to create its name and it
became well-known and it is much easier now
Respondent 7 since not just social media but also in personal
way you can acquire customers. It is needed that
customers must be aware of your products,
because if it is not known, there is a high
possibility that you will yield to a smaller number
of potential buyers.”
 34

“I don‟t have expectations with regards to product

awareness. For me, owners must be always
prepared to upcoming situations. With regards to
Respondent 8 product recall and product recognition, I have
seen obvious results.If the business has good
performance, then your product is appealing for
customers. “

“ I didn‟t notice changes in the product recall and

product recognition, I started online marketing
from the day we started traditional selling so
whatever benefit online marketing has brought to
Respondent 9 us, I can‟t really conclude and make a
comparison. I think it is important that customers‟
product awareness will be increased to persuade
buyers to entertain your product.”

“In terms with the product awareness, I do have

expectations as a business especially with
regards to the sales. There is changes in the
product recall and product recognition of
Respondent 10 customers. There is no changes in value of
products. It depends on the supplier to determine
the products. “It‟s important that customers are
aware of our products. So that, in cases that an
issue or a problem might arise, it is then easier to
solve.”

Table 4. Effect of Online Marketing In Terms of Product Awareness

Product awareness is such a vital aspect for all businesses. For student

entrepreneurs, using of any type of online marketing, especially implementing the

use of social media to market online, can greatly affect people‟s awareness to

any business‟ products. According to Respondent 1 and Respondent 2, through

the use of online marketing, their product awareness has increased resulting to a
 35

growth in number of their potential buyers. They also emphasized that when

people become aware of the products they are selling, people who are interested

to buy end up messaging them personally to order products. In another aspect,

Respondent 3 stressed that there is a really a need to introduce the brand or the

product itself to customers so that they became more aware of the products as

well as to prove to the potential buyers that these products are trusted as well as

original and not just an imitation of a certain product.

Product awareness can also affect the business in terms of customers‟

product recall and recognition, in fact, both Respondent 4 and Respondent 5

agreed that they noticed some changes in product recall and product recognition

of their buyers ever since they started using social media as an online marketing

strategy. Simply put, the number of their potential buyers has increased in

number due to people‟s ability to recall and recognize the products they market

online.

Almost all of the student entrepreneurs approved that using online

marketing is an essential strategy a business can use as it usually yield to an

increase in customers‟ product awareness. That is, people nowadays are inclined

to internet and they usually seek products which are of high quality and

affordable prices, using online marketing as a way to market products online will

be a great help to any business.

Student entrepreneurs also emphasized that it is very important for a

business that its customers are aware of their products as it will enable them to

spread and advertise their products in a wider scope. It will also help them instill
 36

an image to their buyers which usually result to increase the probability of having

a large number of potential customers. A large number of customers means a big

chance for a business to have an increase in their sales as a whole. In fact,

according to Respondent 4,

“It’s very important that your products are well-known as this

will yield to a larger number of potential buyers since a lot of people

will become aware of it, in that way, if there is an increase in the

number of your potential buyers then there is a big chance that your

sales will also increase.”

Furthermore, for non-student entrepreneurs, with the use of social media

as an online marketing strategy, people became more aware of the products they

are advertising. According to Respondent 7, two years before he was able to

build his own physical store, he started his business using social media to do

transactions. Due to that online selling, people became aware of his products

and through that he was able to build his own name in the business industry. As

time goes by, he was not only able to build his name but also instill a good image

to his customers. With the help of customer‟s product recall and recognition, he

was able to maintain his business‟ good sales.

In the cases of Respondent 6, Respondent 8 and Respondent 10, it is

very important that customers‟ product awareness must increase as they have

noticed that in that way, there is change in the product recall and product

recognition of their customers since they started using social media to market

product online that resulted to increase in number of buyers as it became also

 37

easier to describe the details of the products. As what Respondent 10

highlighted,

“It’s important that customers are aware of our products. So that, in

cases that an issue or a problem might arise, it is then easier to

solve.”

However, in Respondent 9‟s situation, wherein he did not observe any

changes in product recall and product recognition as he stated that from the day

he started his business, they already use traditional selling including the usage of

Facebook to market online. Despite of that, he still believes that it is essential to

increase the product awareness to persuade the buyers to entertain and

patronize a certain product.

Synthesizing all the ideas gathered, the effects of online marketing

specifically with the product awareness are a.) increases the businesses‟

probability to have a larger number of potential buyers, b.) gives entrepreneurs a

chance to prove to the potential buyers that the products are not just an imitation

of any product and c.) improves customers‟ product recall and product

recognition.

Online marketing allows entrepreneurs to have a much bigger number of

potential buyers as social media‟s connection can reach into a wider range,

permitting the business to spread its product to a bigger population, thus

increasing the sales of the business. Also, this way of marketing let the

entrepreneurs to gain the trust and loyalty of the customers as it gives

 38

entrepreneurs a chance to the potential buyers that the products are reliable and

trustworthy, moreover, with this type of marketing strategy, it is easier for the

entrepreneurs to give details on their product, thus also result to possible

increase in business‟ sales. Lastly, customers‟ product recall and product

recognition has improved ever since people became more aware of the business‟

products that also yield to increase in business sales.

II. Networking and Relationships

RESPONDENTS RESPONSES

Student Entrepreneurs

“Through social media, I can connect easily to my

Respondent 1 buyers. It really has an effect on me especially I am
not friendly in person. But with my friends in
Facebook, they can easily approach me with my
products resulting to the increase of my business‟
sales.”

“Online marketing is really important to have a

personal connection with the buyers. They can
recommend your products to other people and can
Respondent 2 approach you about their suggestions to improve
your product. I can easily make improvements to my
product to offer them a new one.”

“You will have a strong connection between your

customers, seller, and supplier through social
media. In my case, online marketing is really
Respondent 3 beneficial because you can meet new customers
and if they are satisfied about your products, they
can recommend it to their friends.”
 39

“I personally think that the relationship with the

customer will improve if there is a clear
understanding between the seller and the customer
through social media. As a seller, you should know
your limitations in using the social media to maintain
Respondent 4 an open relationship to the buyers. It is also
important as a seller to have a clean background
when it comes to social media accounts to easily
market your products.”

“Yes, through social media, I‟m more connected not

only to the suppliers but with my customers. With it,
a wide reach of people means high probability of
Respondent 5 increasing your income with lesser time and
pressure. Online marketing strategy has greatly
affected the sales of my business. With a more
secure connection to the buyers through social
media comes also with a strong security in regards
with the sales of the business.”

Non-Student Entrepreneurs

“Yes, through the use of online strategy, at least

Respondent 6 some customers can instill in their minds about my
store and products and in fact, they frequently buy
and get my products already.”

“Yes, our relationship with our customers became

Respondent 7 stronger and wider. “Yes, online strategy is important
in broadening our business‟ networking relationship.
With broad networking and relationship, there will
also be increase in the sales of the business.”

“Yes, If customers do trust you, then they will buy

Respondent 8 your products frequently increasing your sales.
 40

“It is easier because it doesn‟t need physical

Respondent 9 contact. If customers have inquiries, you can
immediately answer through social media accounts.
Yes, it really has a big help to my business.”

“Yes, you should clearly explain the details of your

products through social media or even personally so
that your customers will be aware. If they found
Respondent 10 something good about our products, then, there is a
possibility that they will buy again.”

Table 5. Effect of Online Marketing In Terms of Networking and

Relationships

For student entrepreneurs, networking and relationships are very

important as stated by the majority of especially when using social media. The

participants explained that through the use of social media as online marketing

strategy, there will be a strong connection between buyers, sellers and even

suppliers. In the case of Respondent 1, wherein she has only small amount of

personal relationships, the digital marketing strategy helped her to gain more

contacts as buyers. Thus, it resulted to the increase of the business‟ sales. Also,

Respondent 3 explained that the online marketing helped her in terms of

networking and relationship because even though she does not personally knew

the person but there is a connection between them through social media, then,

the person can be a customer of her product. In addition, Respondent 2 stated

that if that certain person is satisfied with the product, then he/she can

recommend the business‟ products to others that will also yield to the increase of

sales. For Respondent 4, the business should establish a clear background and
 41

image to their social media accounts to easily market products. In addition,

Respondent 5 agreed that:

“Online marketing strategy has greatly affected the sales of

my business. With a more secure connection to the buyers through

social media comes also with a strong security in regards with the

sales of the business.”

For non-student entrepreneurs, majority of them stated that online

marketing strategy helped them in terms of broadening their networking and

relationship with the customers. According to Respondent 6 and Respondent 8,

with the use of the online strategy, their business already gained trust from the

customers which results to customers patronizing their products frequently. On

the other hand, Respondent 7 stated that:

“Yes, online strategy is important in broadening our

business’ networking relationship. With broad networking and

relationship, there will also be increase in the sales of the

business.”

In the case of Respondent 9, it was easier for the business to have a

contact with the customers with the use of online strategy. He explained that it

was easier because there is no physical contact and less effort will be intended in

contacting and maintaining relationships with the customers. He also added that

the inquiries of the customers will be directly addressed by their business with

the use of social media. Respondent 10 mentioned that the business should still
 42

make an effort to briefly explain the product details to the customers both in

personal and social media for their customers to be aware and be more

interested with their products.

Looking into the gathered information, the effects of online marketing

strategy specifically with networking and relationship are a.) gives the business a

better understanding of the customers‟ wants and needs, b.) building the trust

and dependency of the customers, c.) creation of new relationships and networks

and d.) easier way of communication with customers.

With online marketing strategy, customers can approach and give

suggestions about their wants and needs to the business which will give the

business ideas and information for creation and innovation of products. Also, the

strategy can build trust and dependency of the customers and establish long

term relationship with the business that would lead to a future sale of the

products. In addition, new relationships and networks will be created because a

large number of people can see and reach the posts of the business that will

yield to the patronage of the products by different people. Lastly, it served as an

easier way to communicate with the customers wherein customers can directly

send their message to the business without exerting so much effort physically.

Additionally, business can save money in terms of expenses. With even broader

application of online marketing strategy, it can improve the relationship of the

business and the customers thus increasing the sales of the business.
 43

III. Online Competition

RESPONDENTS RESPONSES
Student Entrepreneurs

“If I can see the other prices, our product is cheaper

then, I can say that it is affordable to my customers.
Respondent 1 With that, I will still maintain the price. Nothing
changed when I implemented this strategy in terms
of competition, no pressures. It will change your
business for the better because it can increase your
willingness to improve more your strategies.”

“For now, I haven‟t seen competition but I am trying

to be competitive as I can with other especially that I
offer food products. Talking about competition, there
Respondent 2 are no risks. Having a competition, I strive more to
improve my products and also make variations of it.”

“Social media can reach a large number of people

so there is also a high possibility of having lots of
buyers. Mostly, my income became low because of
competition but, I am improving the physical
Respondent 3 attributes of the product. Maintain your image.”

“Competition is tight so it depends on your strategy

Respondent 4 and tactics in targeting the buyers to be ahead of
others. With that, it will increase your sales.

“With the presence of social media, there is really

an existence of online competition. So my total
sales depends on the strength of competition. I am
more persevered to improve my strategies and
Respondent 5 strive harder to increase the quality of the product
and to be better in all aspects. To maintain it,
maintain also to have positive outlook all the time.”
 44

Non-Student Entrepreneurs

“It is a need to post products on social media

Respondent 6 accounts like Facebook with lower prices compared
to the competitors. If you will improve as a business,
you will easily be known depending on the effort of
the seller.”

“It is important to be unique especially with the tight

Respondent 7 competition. It is better if you‟ll implement more
social media platforms to garner buyers.”

“It really has an effect because there is a possibility

Respondent 8 that your competitors will see your posts and
replicate it. The strategies I applied to my business
were replicated by my competitors and I end up
giving up my business once.”

“It is important as a seller to be willing in boosting

Respondent 9 your product‟s name with advertising. Social media
has a big help in online marketing.”

“The sales of the business still depends on their use

and handling of social media. It does not affect us
really because we are the first to build a business
Respondent 10 like this. We also market products online with low
prices.”

Table 6. Effect of Online Marketing In Terms of Emergence of Online

Competition

For student entrepreneurs, the emergence of online competition brought

significant changes to their businesses. For Respondent 1 and Respondent 3,

online competition has an adverse result. In particular, Respondent 3

experienced some negative effect of the competition, because sometimes seller

 45

would actually take it personally that makes her image bad to other customers

and threatens her. Respondent 1 felt that online competition brought excitement

to provide and come up with new strategies in order to improve her current

strategy.

Based on Respondent 4 and Respondent 5‟s response, it lies on the

strategies and tactics in targeting buyers that enables the business to still acquire

higher sales and be ahead of the competitors always. Whereas, for Respondent

2, even with the presence of online competition, there is no risks connected to it.

According to him,

“Talking about online competition, there’s no risks but

rather it encourages me to provide and exert more effort in

innovating and making variations in my products.”

For non-student entrepreneurs, online competition is one of the important

aspects a business must focus on. Specifically, for Respondent 6 and

Respondent 10, in order to win the competition, improvement of personality and

effort in communicating to the people would be a great strategy. For Respondent

7 and Respondent 9, online competition enables owners to realize that product

should have some uniqueness in order to have more favors from the customers

and let entrepreneurs in improving and widening the reach of their product to the

customers. However, based on Respondent 8‟s statement, online competition

made her vulnerable to the risks her competitors could bring. In fact, according to

her,
 46

“The strategies I applied to my business were

replicated by my competitors and I end up giving up my

business once.”

With regards to online competition, online marketing has encouraged

entrepreneurs to a.) change the price setting of products, b.) enabled

businesses to come up with new marketing strategy, and c.) improved the

competitiveness of business by having uniqueness.

IV. Negative Impact

NEGATIVE IMPACT WAYS TO COPE UP

Owners‟ sales are affected

“Just maintain your self-image and not to be
when people became aware
boastful, do not mind it, think of it as a
of known low quality challenge.”
products connected to the
sellers‟ products.

“Avoid giving IDs and other personal

documents and avoid giving personal
information to others. You need to make sure of
the details, such as the real name or if the
account you used to contact the buyer is real or
Some people use the not.”
owners‟ name or even the “I will try to convince my supplier if it is still okay
business itself to scam to return the product and I will try to track the
person if he is still able to be tracked, or I will
anyone.
ask help from my relatives to expose my
product so it can be solved.”

“The customers‟ orders have a set date. The

orders are done the day before the set date
especially that food is my product.”
 47

Internet connection or mobile “It is very important for the business to really
data is needed to establish and make investment especially
communicate with the buyers having Internet to think you‟re in the Digital
online. Age.”

“What we do is we strive hard to make our

products unique, that we have products that
others do not have. If ever that we have the
same products to others, because we all are
competitors, we would find a way to change our
product. We need to find new products that we
Competitors can imitate the
can offer to the people which the other stores
products of the seller and
do not have.”
lower the original price.
“It is needed that the prices of the products that
you post in social media sites especially
Facebook is comparatively lower than others
because there are many people who are into
online selling.”

“We need to give a limit as to the days of the

Meet-ups are sometimes
reservation. We need to limit the time so that
cancelled and the products
we can sell the products immediately and it will
are stocked in the store.
not be stocked.”

“Always be mindful of who you are talking to, be

Vulnerable to fraud and the
alert always. Then, be very careful at all times.
seller‟s profile may be at risk.
You really need to be careful.”

Table 7. Ways to Cope Up With the Negative Impact of Online Marketing

Although there are various positive effects of using social media in

businesses, there are also negative effects that business owners experience

when using social media. One of them is that owners‟ sales are affected when

people became aware of known low quality products connected to the sellers‟
 48

products. Another is that some people use the owners‟ name or even the

business itself to scam anyone. Then, the Internet connection or mobile data is

needed to communicate with the buyers online. Also, competitors can imitate the

products of the seller and lower the original price. Lastly, meet-ups are

sometimes cancelled and the products are stocked in the store.

The first encountered problem by business owners is when the owners‟

sales are affected because people became aware of known low quality products

connected to the sellers‟ products. One of the respondents suggested that in

order to cope up with this, someone needs to maintain his/her image and not to

be boastful; do not mind it, instead, think of it as a challenge.

Another problem that business owners experience when using social

media is when some people use the owners‟ name or even the business itself to

scam anyone. To deal with this, one of the respondents mentioned that the seller

must avoid passing IDs and other personal documents, and not to immediately

give some personal information to the buyer. Another respondent said that it is

important to secure details, such as the real name, contact number, or if the

account used to contact the buyer is real. Another participant stated that she

would try to contact the supplier if it is possible to return the product and would

try to track the person responsible if it is still achievable, or ask her relatives for

help to expose that person. There is also a respondent who said that the clients‟

orders have to set a date as to when the product will be delivered.

The third problem that business owners experience is that the Internet

connection or mobile data is needed to communicate with the buyers online. To

 49

deal with this, one of the participants responded that it is very important for the

business to really establish and make investment especially having Internet, now

that it is the Age of the Digital Technology.

Business owners are also aware of their competitors. One problem they

encounter in their business is when competitors imitate their products and lower

the original price. One respondent, when asked about how to cope with this

problem, shared that he strive hard to make his products unique and make sure

that the products are only found in his store. If he has acquired products that are

the same with the other stores, he would find a way to change his acquired

products. He also added that it is important to find new products which can be

offered to the buyers that are not in the other stores. Another respondent stated

that it is important to lower the price of the products posted online, especially in

Facebook, compared to others due to the fact that there are many people who

are into online selling.

Another problem that business owners face is when the meet-ups are

sometimes cancelled and the products are stocked inside the store. To deal with

this, one participant responded that it is important to give time restrictions as to

the number of days the reservation is available. It is important to limit the time so

that the products will be immediately sold and will not be stocked in the store.

There is also the problem of being vulnerable to fraud and the seller‟s

profile may be at risk. To deal with this, one respondent answered that sellers

must always be mindful of who they are talking to online and to be alert always.

She also said that the seller must always be careful at all times.

V. Positive Impact
POSITIVE IMPACT
The products are said to
be more popular when
marketed online.
Unfamiliar products are
delivered and are known
in areas that are difficult
to visit.
50
WAYS TO MAINTAIN
“I can say that my prices are okay, then, I do not
change the prices because they are already fixed.
And if I felt that my price is higher in a certain
product, I lower down the price, in that way, my
profit on that product would increase.
“There are no difference because we strive to
improve our service to the people. If we are popular,
we strive to lower the prices of the products. The
sales are high so it is okay to lower down the prices,
but it depends on the product because there are
also products that the price really increases.”
“It is much better if you have many social media
platforms but for me, Facebook and Instagram are
enough because it attracts more attention from the
people.”
“You will not be dissatisfied and you can try to
improve the reach of your scope so that more
customers will be aware of your products.”
“We offer sales on our products and customers.
Then we post the sale of our products on the
internet so that the customers can see it. Every
week we have new arrivals and our customers
would go here in the shop.”
“I will try to convince my supplier if it is still okay to
return the product and I will try to track the person if
he is still able to be tracked, or I will ask help from
my relatives to expose my product so it can be
solved.”
 51

“Always remember that the products‟ trust is so

It allows products to be important, so focus to be as trustworthy as possible
recommended by our or at all times. “

customers met through “It is important that if you are the owner, you should
online marketing. know that your products have no defects so that
your customers can trust you”.

“Using my personal relationship with the other

people to encourage them to buy my stuffs, mostly
on millennial. Our consistent buyers recommend
our products to their relatives.”

“For me, my strategy is I will post all of the items on

Online marketing allows
Facebook. Then, I will ask my friends to share it,
sellers to promote their just like that.”
own products for free.
“First is mainly Facebook. Why Facebook? It is
because I post my products on Facebook so that
my friends on Facebook can see the product, even
though it is not actual. In other words, they can see
the appearance and price of the products. Then, I
would sometimes text them.”

Online marketing
“It is really important because I don‟t know any
presents actual image of other ways to do it. It cannot be done only through
products, thus helping text messaging because they cannot see the actual
product.”
the buyers with their
decisions.

“It is easier because of the communication to the

Online marketing
buyers through Facebook. Yes, it made connecting
presents easier way for to the people much easier. Why? It is because
sellers in communicating sometimes, if I don‟t buy a load or text those who
ordered, I can contact them through messenger,
with their buyers. yes.”
 52

“Yes, through this I can have a better connection to

the buyers. Because my products cost less, I will
continue to communicate with them.”

“I think, the relationship with the customer can be

better improved if there is a good understanding
between the seller and the customer through social
media. The product must be clearly explained to the
customers about what it is and where it came from,
either personally or through social media so that
they can be aware.”

“Yes, example is if I have friends in a social media

site that I am not close with. If he/she chooses to
order from me, we can start to make conversations
about the product and that is the way that I can
enhance my relationship to my customers.”

Online marketing can

“When you have business online, you don‟t only
strengthen one‟s social
earn money, you also form friendship or social
interaction connection.”

“At first, I find it bad because I put my effort to it, but

then, just always think positive because it can still
be sold to others. You only need to accept that that
is the way of business.”

“What we do is we strive hard to make our products

Online marketing unique, that we have products that others do not
have. If ever that we have the same products to
strengthens your ability
others, because we all are competitors, we would
to face possible find a way to change our product. We need to find
problems (e.g. new products that we can offer to the people which
the other stores do not have. “
Scamming, Competition)
“We need to give a limit as to the days of the
reservation. We need to limit the time so that we
can sell the products immediately and it will not be
stocked.”
 53

“You need to make sure of the details, such as the

real name or if the account you used to contact the
buyer is real or not. Avoid giving IDs and other
personal documents and avoid giving personal
information to others.”

“Yes, many people recognize me as the one who

posted a certain product online and their friends
There is a great chance recommended me to others.”
of higher product
“We are one of those people that before starting the
recognition. business, we used social media as a store for, I
think, two years. We first organized an online shop
before having a physical shop. As time goes by, our
popularity increases, and now we are known. It is
easier now because we do not only use social
media to attract customers, we can also attract
people who also come to the shop.”

“Our store is now well known but we still give the

same price so that the customers will buy to us,
especially now that we already have too many
competitors in our area.”

“Sometimes, because of the high level of

competitiveness, the competition becomes a
personal battle. You just have to maintain your
image and not to be boastful.”

“Of course, through feedbacks and

recommendation of previous customers to other
customers.”

“First, the brand of the product should be introduced

so that the customers can be aware of it, so that it
can be proven that your product is genuine because
there are many who sell fake and imitated
products.”

“There is a change through improving the physical

attributes of the product.”
 54

“My friends recommend the things I post on social

media to other people.”

“Posting pictures, using people who have influence

in marketing the products because they have a big
Large number of help to those kids who know many people.”
customers could be able
“We need to post online, so that the customers
to access your products.
would swarm to buy our product. And because of
that, the number of customers will increase.”

“I think I would sell my products to the people I

know then I would ask them to recommend me to
the people they know.”

Table 8. Ways on Maintaining the Positive Impact of Online Marketing

The usage of marketing your products through the help of social media

and other social networking sites has its own positive impact to the success of a

certain business such as the products are said to be more popular when

marketed online, unfamiliar products are delivered and are known in areas that

are difficult to visit, it allows products to be recommended by our customers met

through online marketing, online marketing allows sellers to promote their own

products for free, online marketing presents actual image of products, thus

helping the buyers with their decisions, online marketing presents easier way for

sellers in communicating with their buyers, online marketing can strengthen one‟s

social interaction, online marketing is said to be the trend especially on the 21 st

Century, online marketing results in much higher sales, online marketing

strengthens your ability to face possible problems (e.g. Scamming, Competition),

online marketing offers diverse products for buyers to choose, there is a great
 55

chance of higher product recognition, large number of customers could be able to

access your products.

The first positive impact, is that the products are said to be more popular

when marketed online, one respondent claimed that as long as the customers

are satisfied, changing the prices of the products is unnecessary. Sellers must be

consistent to maintain the benefits and/or the services offered.

The second encountered positive impact is that, unfamiliar products are

delivered and are known in areas that are difficult to visit, one respondent

claimed that in order to maintain this positive impact, one must be able to use

their connections to be able to expand their products.

The third encountered positive impact is that, it allows products to be

recommended by the customers met through online marketing. One of the

respondents claimed that in order to maintain this positive impact, the buyer must

remember that product‟s trust is vital to the success of a company. And the buyer

must ensure that the products are well-maintained and not defected.

The fourth encountered positive impact is that, online marketing allows

sellers to promote their own products for free. One of the respondents claimed

that this impact would be maintained by posting the products that are available to

various social networking sites or social media.

The fifth encountered positive impact is that, online marketing presents

actual image of products, thus helping the buyers with their decisions. One of the

respondents claimed that in order to maintain this impact, one must be updated
 56

in posting different visual representations of the product and/or services that they

offer.

The sixth encountered positive impact is that, online marketing presents

easier way for sellers in communicating with their buyers. One of the

respondents claimed that in order to maintain this impact, one must be able to

properly explain the background of the products and/or services that they offer.

The seventh encountered positive impact is that, online marketing can

strengthen one‟s social interaction. One of the respondents claimed that in order

to maintain this impact, the seller must be able to conduct a continuous

communication with the customer for them to be updated from time to time.

The eight encountered positive impact is that, online marketing

strengthens your ability to face possible problems (e.g. Scamming, Competition).

One of the respondents claimed that in order to maintain this impact, one must

be able to find alternative ways for the sellers to get ahead of their competitors,

and must not share important information to any people to avoid scamming.

The ninth encountered positive impact is that, there is a great chance of

higher product recognition. One of the respondents claimed that in order to

maintain this impact, the seller must gather information and recommendations

from the buyers and use them as a tool in improving their products and/or

services.

The tenth encountered positive impact is that, large number of customers

could be able to access your products. One of the respondents claimed that in
 57

order to maintain this product, one must let the customers share their products

with other people and maintain on posting the products/services offered on

different social networking sites to catch the customers‟ attention.

 Chapter V

SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of the whole study, conclusion on the

findings of the conducted study, and recommendations.

Summary

This research is entitled “Impact of Online Marketing to the Sales of

Micro-Businesses in General Santos City”. This study aimed to first,

determine the effects of online marketing and contribution to the increasing and

decreasing of sales to the micro-business in terms of brand awareness,

networking and relationship, and online competition. Second, to identify solutions

and evaluate the negative impact of online marketing encountered by the micro-

business owners resulting to increase of sales. Lastly, to recognize ways on

using the positive effects of online marketing to keep their businesses as

profitable as possible.

The gathered data and information are from the ten (10) respondents,

which are micro-business owners who are residing in General Santos City,

comprising of five student entrepreneurs and five non-student entrepreneurs.

General Santos City is known as highly urbanized first-class city and the regional

center for commerce and industry.

In gathering the data needed for the study, the researchers produced their

own questionnaires and interview guide to know the nature and profile of the
 59

respondents and to answer the problems. After collecting the data needed for the

study, the researchers carefully transcribed the conducted interviews to know the

effects of online marketing and contribution to the increasing and decreasing of

sales to the micro-business in terms brand awareness, networking and

relationship and online competition. In addition, the researchers represented the

identified solutions and evaluated the negative impacts of online marketing

encountered by the micro-businesses. Lastly, the researchers stated and

recognized ways on using the positive effects of online marketing in keeping the

businesses as profitable as possible.

Findings

Based on the data gathered at results of the study, the respondents found

out that online marketing has an impact on the different aspect of particular

business – either positive or negative effect, and was proven that these effects

have contributed to the changes in the sales of the business.

In this study, it was discovered that the product awareness, networking

and relationships as well as online competition were greatly affected since

entrepreneurs started using social media to market online. Firstly, collecting all

the participant‟s responses, it was revealed that the effects of online marketing

specifically with the product awareness were online marketing has increased the

businesses‟ probability to have a larger number of potential buyers, gave

entrepreneurs a chance to prove to the potential buyers that the products are not

just an imitation of any product and improved customers‟ product recall and

product recognition. Secondly, in terms of networking and relationships, it was

 60

exposed that online marketing has given the business a better understanding of

the customers‟ wants and needs, enabled the entrepreneurs to gain the trust and

dependency of the customers, created a new relationships and networks for

business and lastly, made easier the way of communication with customers.

Lastly, with regards to online competition, online marketing has encouraged

entrepreneurs to change the price setting of products, enabled business to come

up with new marketing strategy, and has improved the competitiveness of

business by having uniqueness.

On a different angle, based on the respondents‟ responses, it was found

out that product awareness, networking and relationships as well as online

competition brought some positive and negative impact to business. In particular,

the respondents revealed that online marketing has affected sales of business

when people became aware of known low quality products connected to the

sellers‟ products and some suggested that in order to cope up with this problem

someone needs to maintain his/her image and not to be boastful; do not mind it,

instead, think of it as a challenge. Another, it has become a way to vulnerability

towards scamming and to deal with this one of the respondents mentioned that

the seller must avoid passing IDs and other personal documents, and not to

immediately give some personal information to the buyer and to secure details,

such as the real name, contact number, or if the account used to contact the

buyer is real. The next one is that there is a need of Internet connection or mobile

data to communicate with the buyers online as well as imitation of the business‟s

products might happen and lastly, meet-ups are not fixed and result to stockade
 61

of products. To deal with these problems, one of the participants responded that

it is very important for the business to really establish and make investment

especially having Internet, now that it is the Age of the Digital Technology,

another, one respondent also responded when asked this problem, shared that

he strive hard to make his products unique and make sure that the products are

only found in his store and lastly, one participant responded that it is important to

give time restrictions as to the number of days the reservation is available,

respectively.

In this study, it was discovered that online marketing has its positive

effects on the business and respondents revealed ways of maintaining these

benefits. Firstly, products are said to be more popular when marketed online,

unfamiliar products are delivered and are known in areas that are difficult to visit

and to maintain this benefit, this study revealed that it‟s important to be always

consistent. Another, unfamiliar products are delivered and are known in areas

that are difficult to visit and to maintain this, one must be able to use their

connections to be able to expand their products. Also, recommendation of

products to others became easier and to maintain this, buyer must remember

that product‟s trust is vital for the success of a company and ensure that the

products are of high quality. Another one, allows sellers to promote their own

products for free and by regularly posting the products that are available to

various social networking sites or social media, this benefit will be maintained.

Moreover, it allows entrepreneurs to presents actual image of products, thus

helping the buyers with their decisions, and by being updated in posting different
 62

visual representations of the product and/or services that they offer, this benefit

will be maintained. Also, it presents easier way for sellers in communicating with

their buyers as well as it strengthens the business‟ social interaction, and to

maintain these, conducting a continuous communication with the customer for

them to be updated from time to time is useful. In addition, it toughens your ability

to face possible problems (e.g. Scamming, Competition), and in order to maintain

this impact, looking for alternative ways to get ahead of their competitors and

keeping important information to from people would be the best. Additionally,

there is a great chance of higher product recognition, and to maintain this,

gathering of information and recommendations from buyers and using them as a

tool for improvement would be better. Lastly, there is high probability that a larger

number of customers could be able to access your products and to maintain this,

the respondents said that posting the products/services offered on different social

networking sites is a good way.

Conclusion

In this study, the perceived effects of online marketing and contribution to

the increasing and decreasing of sales to the micro-business in terms product

awareness, networking and relationship, and online competition were identified.

This study shows that micro-businesses have come far in their implementation of

social media platforms that constitutes a big part of their overall digital online

marketing strategy. First, online marketing strategy has played a crucial part in

the development of product awareness which influenced the micro businesses‟

power to increase their sales. Regarding networking and relationships, online

 63

marketing strategy exposes the easiness to create a direct communication with

customers and buyers and the low cost that social media application has in

relation to the amount of people that it reaches out to. Lastly, online marketing

strategy has created synergy effects that has contributed to the micro-

businesses‟ ability to compete online. The ability to compete lies above in the

capacity of the business to utilize the social media platforms in a long-term

perspective.

In conclusion, there is a close and significant connection between the

micro-business‟ online marketing strategy and its ability to increase the product

awareness, networking and relationships and online competition. With increasing

and improving the product awareness, networking relationship and online

competition through online marketing strategy, this will be a key success factor

for micro-businesses to dramatically increase their sales.

Online marketing has also brought negative impacts to the sales of micro-

businesses. The greatest challenge of online marketing is the need for Internet

connection in able for the businesses to communicate with their buyers and

market their products online. In addition, other business copying the business‟

ideas and products also is a threat to the competition which can result to the

decrease of sales. Amidst the negative impacts, micro-scale businesses has

generated solutions to overcome them in order to not disregard the sales of the

business. These solutions are highly important and needed by micro-scale

businesses to cope up with the sales and decrease the possibility of dissolution

and closure of the business.

 64

It can also be concluded that online marketing brought a numerous

positive effects on the sales of micro-businesses. With online marketing, the

products has increased its popularity allowing it to be recommended and spread

throughout a large number of people which results to the increase of sales. In

addition, online marketing is believed to be cost-efficient as it aids the micro-

businesses in terms of expenses because they can promote their products for

free. Buyers can see the actual image of products through online, thus helping

them with their decisions in buying the product. It will then increase the

probability of the businesses to increase their sales.

With the positive effects brought by online marketing, micro-businesses

suggested ways on how to maintain them. In conclusion, the positive effects

brought by online marketing should be given with high importance by the micro-

businesses. Generating ways and techniques in maintaining the positive impacts

are needed by micro-businesses to ensure their stability in terms of sales.

Recommendations

The study has focused on the impact of online marketing strategy to the

sales of micro-businesses. Out of the conclusions made, the following are the

recommendations formulated by the researchers:

1. In order to attest the outcome that have been concluded, future

qualitative research is recommended. Qualitative research can be

made together with the online marketers around the places that have

been using technology as one of their instrument.

 65

2. Conduct further studies involving a larger sample of micro-businesses

to obtain a higher degree of validity in the conclusions.

3. Investigate if the contribution of social media platforms as online

marketing strategy is sustainable in a long term or short term basis.

 66

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