Exploring the perceived impact of using online and traditional marketing channels by marketing agencies for SMEs in South Africa

Abstract

In recent years, there has been a significant shift in marketing practices due to advancements in technology and changes in consumer behaviour. Pre-2020 marketing strategies have become outdated as digitalisation now dominates the narrative. This shift challenges marketing agencies to rethink their resource allocation strategies. Traditional marketing strategies sought to maximise profits through optimal resource distribution, but the advent of digital marketing introduces complexities: digital campaigns, while impactful, do not guarantee immediate sales, necessitating a new approach to resource allocation. The dilemma faced by businesses is whether to invest solely in online marketing, which offers mixed results, or continue with traditional methods, which are becoming less effective. Small and medium-sized enterprises (SMEs), in particular, struggle with limited budgets and the need to navigate a more technologically comfortable customer base. Proposing that a successful marketing approach for SMEs necessitates a refined understanding and integration of traditional and online channels, this study scrutinises the perceptions, benefits, and challenges associated with these marketing avenues. The motivation for this investigation stems from a recognised gap in knowledge regarding the effective amalgamation of diverse marketing strategies in the South African SME context. Employing a qualitative methodology, the study analysed results from semi-structured interviews with marketing agencies used by SMEs and provides insights into their experiences and strategic approaches. The findings of this research reveal important themes, such as the role of integrated marketing strategies, the perceived impact of different marketing channels on campaign success, and the balance between traditional and digital approaches. The study highlights the importance of an omnichannel marketing strategy, underlining the need for South African SMEs to leverage both traditional and online channels for optimal impact. This study enriches the existing body of knowledge by offering a refined perspective on marketing dynamics in the South African SME sector, while also putting forward recommendations for future research in this evolving area. It provides a modern, post-pandemic perspective as the world moves further into the 4th industrial revolution.