The role of digital marketing in the sustainability of the formal retail sector in Flagstaff

Abstract

Marketing is a fundamental part of any retail business as it is the means of promoting products and services to the target market (Grönholm 2012). Digital marketing has transformed retailers’ marketing strategies significantly. Online marketing channels are undeniablyoneof the most advanced digital technologies to be used in marketing, which makes it essential for retailers to incorporate these strategies into their businesses. The internet and its rapid technological developments have provided retailers with numerous tools for online marketing, such as email marketing, social media, pay-per- click, search engine optimisation, pop-ups and so forth. While many rural South African businesses are starting to adopt these marketing tools in their businesses, the role of digital marketing in the sustainability of the formal retail sector in the rural areas of South Africa (SA) has not been explored fully. The aim of this study was to explore the role of digital marketing in sustaining retail businesses in Flagstaff, while the primary objective of the research is to identify and describe the role of digital marketing in retail businesses in rural areas. According to Bala and Verma (2018), digital marketing is the greatest platform to transform a product into a brand and has the potential to increase sales tremendously, provided that businesses have knowledge and understanding of how to apply it properly. The study adopted a mixed research method in order to achieve the set objectives. This study followed the probability sampling method in recruiting participants. Random sampling was the probability sampling method employed to generate the sample for this study. Retailers operating in Flagstaff and members of the public (customers) were the two populations targeted for this research. The study used a structured self administered questionnaire consisting of 20 items to collect quantitative data from retailers. Focus group discussions were also conducted with members of the public to gather qualitative data. The researcher adopted the census method, whereby all 52 stores in Flagstaff took part in the study. The sample for the focus group interviews comprised of thirty (30) participants that were allocated into six groupsof 5 participants in each group. The study used version 27.0 of the Statistical Package for the Social Sciences (SPSS) to analyse quantitative data, and thematic analysis was used to analyse qualitative data. According to the study's findings,retailersutilise a variety of digital marketing methods, including social mediamarketing, email marketing, andmobile marketing, to exchange information, contact with customers, send them sales pitches and other marketing materials, and interact with them online. Retailers claimed that digital marketing had introduced novel ways to conductonline business,such as onlineshopping.However, this activity is connected to a numberof difficulties in rural areas, which hasprevented many retailers from offering it as a substitute for traditional shopping.As a result, there is little use of online shopping in Flagstaff retail businesses. Consumer feedback indicates that retailers' use of SMS communication, Facebook, and emails to convey information about sales pitches and promotions has inspired and encouraged customers to make purchases from particular retailers. However, participants have stressed that they prefer hearing from retailers through traditional channels sincethey are simpler to access because they have trouble getting information on digital platforms. The study recommends that rural retailers should integrate digital marketing into their marketing activities, which will increase awareness of the brand; reach a wider audience; aid in keeping up with trends and staying ahead of the competition; and maintain their presence on social media platforms. The study suggests that further research be conducted on the impact of specific online marketing tools in order to allow retailers to focus on online channels that align with their brand to generate profitable results for the business