Digital Marketing and Innovation Effects on Marketing Performance

Abstract

Effects of Digital Marketing (DM) and Innovation (Inn) on Marketing Performance (MP), mediated by Competitive Advantage (CA) in the context of food and beverage micro businesses are not widely discussed and well understood. This study aims to describe Digital Marketing, Innovation, Competitive Advantage and Marketing Performance and examine the effects of Digital Marketing and Inn on Marketing Performance mediated by Competitive Advantage. The unit analysis is food and beverage micro business owners in Bekasi Municipality, West Java Province, Indonesia. The respondents are 100 owners of food and beverage micro businesses and the sampling technique is the simple random sampling. The data analysis uses the PLS technique. The results show that Digital Marketing and Inn had a positive effect on Competitive Advantage. Digital Marketing had also a positive direct effect on Marketing Performance. Competitive Advantage, however, did not mediate the Digital Marketing and Marketing Performance relationship. Competitive Advantage had less effect on Marketing Performance (<0. 3). Innovation had no effect on MarketingPerformance. For the operational implications, food and beverage micro business owners need to implement Digital Marketing to improve Marketing Performance. They also need to implement Digital Marketing and Innovation to improve Competitive Advantage. As a conclusion, business owners need to maintain communication with customers through internet-based media, make customers experience speed and efficiency in information access about the products, make products content popular and relevant to current trends, deliver the products as promised and update information about the products on the market places. Besides, business owners also need to make some changes in the way they do business in more efficient and productive way to meet the customers' needs and wants.

MSMEs DIGITAL MARKETING AND ENTREPRENEURSHIP'S FACTOR OF PERFORMANCE: JAMBI (INDONESIA) PERSPECTIVE

“…Their studies imply the usefulness of a strong and meaningful impact innovation to MSMEs in developing countries. On the other hand, this finding rejects the previous research by (Muis et al, 2022); and (Olazo, 2020), which requires other factors such as product policies and delivery to consumers to be added to increased performance.…”

“…It means that the higher adoption of digital marketing in MSME's business will increase the performance of MSMEs. This finding supported the research of Lamidi & Rahadhini) 2021); (Muis et al, 2022); (Purba et al, 2021) and Priyanto et al (2020). In the market, digital marketing not only displays the products to consumers but also attracts new consumers and keeps the bonding of loyal consumers into products and trust.…”

“…Digital marketing can be considered as direct marketing in order to promote a sense of ownership as a behavior and as a response to a person's interest by integrating communication technologies (Lamidi & Rahadhini, 2021). When a product is innovative in the modern day, digital marketing is necessary (Muis et al, 2022). In order to make it easier for customers to increase their knowledge of development, the frequency and durability of digital marketing communications will have a bigger impact on consumer loyalty to a product (Purba et al, 2021).…”

The Impact of Creative Digital Marketing on the Sustainability of MSME Businesses: A Mediating Role of Marketing Performance

“…When MSME players utilize creativity in digital marketing as a strategy to introduce the products or services provided, it will have an impact on the long-term sustainability of MSME businesses. Digital marketing will becom e a powerful tool when MSMEs involve creativity and innovation in its implementation (Muis et al, 2022). Innovation in digital marketing can include the use of new technology, unconventional communication strategies, and creative content creation (Wojciechowski & Fichnová, 2022).…”

“…There is a mediating role for marketing performance variables from creative digital marketing relationships in the sustainability of MSME businesses based on research from Wardana, F. P., & Mukharomah, W. (2023). Creativity in digital marketing involves the use of social media platforms to promote products or services, namely by creating interesting content, marketing videos, story -based content, promotions on social media, interactive content, personalization (customer data), influencer marketing, and cont ent marketing (Muis et al, 2022). Using this platform will have an impact on the sustainability of MSME businesses through optimizing marketing performance Chatterjee et al (2021).…”