CHAPTER ONE

INTRODUCTION

1.1Background
Businesses usually aim to grow in terms of market size and assets and due to competition, they
have to ensure they attract and retain customers in order to remain profitable. Jobber and Ellis-
Chadwick (2013) noted that the marketing concept is based on the basic principle that its
implementation helps in business performance. They also stated that marketing is not an abstract
concept, but rather, an acid test to the impact that its use has on important corporate indices such
as profitability and market share. Small and medium enterprises as business entities need to
grow to ensure survival and be able to compete in the market. Ayyagari, Beck and Demirgüç-
Kunt (2007) in their study stated that in both developing nations and advanced economies, small
and medium enterprises contribute roughly 60 percent of the manufacturing sector’s formal
employment. The growth of small and medium enterprises in any country is important since it
implies a growth in economy and therefore more incentives need to be made to grow the sector.
One of the factors important in the growth of SMEs is sales which generate revenues. This can
be attained by marketing their products and services so as to create awareness and make their
products and services preferred as compared to that of competitors. Therefore, depending on the
size, resource availability and life-cycle stage of a company, marketing objectives will differ
hence different marketing strategies (Jeconia Omondi Olonde 2009). Jain (2014) stated that
large businesses usually have huge opportunities due to their large marketing budgets, enabling
them to be easily visible through multi-channel marketing effort. On the other hand, due to
limited cash resources, small and medium enterprises are hugely limited with the marketing
possibilities on how they can gain visibility.
Studies indicate that a firm size is likely to affect the implementation of digital channels, with
small businesses being the slowest adopters (Bordanaba-Juste, Lucia & Polo, 2012), and large
businesses are more likely to have the necessary resources and knowledge to implement new
digital channels and tools successfully (Barnes et al., 2012).
Due to the global rapid advancement in technology, organizations are adapting new tactics of
staying relevant and profitable (Soundharya, 2020). Digital advertising has revolutionized
business activities in this era of globalization (Wilson & Makau, 2018). Digital advertising has
grown tremendously in both its applications and number of users due to its unique characteristics
of flexibility, interactivity, and personalization. The dramatic change brought forth by
information technology has an important effect on the daily lives of people all over the world.
It has transformed the way business is done by allowing retailers to offer unlimited range of
products and services to all consumers from around the world at any point in time (Sulaiman,
Yusufu & Sadiq, 2021).
This evolution is propelled by the easy access of the internet across the globe which has made
consumers become ‘digital consumers’ The role of digital marketing has become increasingly
important in today's technologically advanced world as every organization is gearing towards
becoming profitable. Digital marketing helps businesses build brand awareness by reaching a
wider audience through various online channels. It allows companies to showcase their brand,
products, or services to potential customers globally. With digital marketing, businesses can
target specific demographics, interests, and behaviors of their ideal customers to make profits
(Desai & Vidyapeeth, 2019).
Digital marketing according to Chaffey (2019) is the tact of achieving marketing objectives
through applying digital technologies. According to Tac (2010), digital marketing is the part of
marketing that promotes products and services through the use of the internet and other online
based digital technology like mobile phones, desktop computers, and digital media platforms.
A study by (Hall, 2013) cites that globally, more people have cellphones that toilets. The same
study found that 60 percent of these cellphones are smartphones. These smartphones are so easy
to use, that even a child can figure them out. (Melody & Ting- Peng, 2004) advised that the
rapid growth of mobile phones and other hand-held devices has accelerated a change in the
dynamics of marketing. A research done by (Vatanparast & Asil, 2007) stated that digital
marketing is one of the most lucrative potential business areas since mobile devices allow
companies to directly communicate with their consumers without location or time barriers.
Burrus (2019) asserts that the sooner organizations embrace digital marketing, the faster they
can penetrate new markets and win new business therefore increasing profitability.
A study done in the United States by (Leeflang et al., 2014) identified that digital marketing
became more prominent and familiar with marketers within organizations because consumers
were readily available on the internet and could be easily accessed and served with marketing
materials by tracking their social media consumption behaviors. In this era, individuals and
organizations often utilize digital advertising to attract buyers all over the world for patronage.
According to Kalei (2020), adopting digital advertising has benefits such as boosting brand
exposure, sales, and customer relations.
Currently, digitally led content advertisements are replacing traditional communications of
advertisements in the worldwide advertising market (Bodunde & Ohu, 2022). Digital
advertising is not completely compatible with traditional marketing, but both can be used
concurrently, additionally digital marketing might be too complex for the older generation but
this hurdle can be overcome by hiring qualified digital marketers (Minama & Ngahu, 2016).
Internet is an emerging advertising medium has made digital advertising very imperative for
businesses to gain competitive advantage in this era of globalization. Companies are pouring
billions of dollars into digital advertising to obtain greater return on investment on adverts (Xia,
Jiang, Zhang & Peng, 2019). Nowadays, digital advertising has practically become a weapon
and is playing a key role in advertising. The way businesses operate, and particularly the
methods they use to raise public awareness of their goods and services, have been radically
changed by the Internet and social media. The odds of a company surviving if it does not
advertise are extremely low according to Herhold (2017).
Ng’ang’a (2016) reports that marketing is a vital endeavor in any business, more so in businesses
since it enables the firms to focus on their clients, what they want and need and how to inform
them that they have those products to enable sales. The way businesses interact with consumers
through digital media has undergone a significant transformation as a result of new digital
technologies. Digital marketing has transformed the customer journey, and they are rapidly
changing the environment within which firms operate, reducing information asymmetries
between customers and sellers as well as changing the overall marketing strategies (Kannan,
2017).
Digital advertising concept is new and its impact on sales performance needs to be determined
(Mehralian & Khazaee, 2022). Marketers are not only required to contribute to sales
performance through brand building and growing sales revenue but also through customer
acquisition, customer retention, customer satisfaction and overall market share growth (Kotler
& Keller, 2014). Sales performance involves the increase in amount of revenue by a firm over
a defined period. This could be as a result of increase in product prices, selling of more products
or both. Sales performance because of price increase could be as a result of inflation adjustment
and therefore not due to real sales growth but if costs remain low then it contributes to the real
growth of sales. Increase in the number of products sold also represents sales growth which
could be because of geographical expansion, growth in new branches, or increase in the number
of products and services (Matanhire, Vingirayi & Manyanga, 2021). In an era of intensifying
competition and fierce negotiations with buyers, tactical selling approaches simply don’t work.
The key to sales success is creating value the buyer is not currently considering in their decision
making (Cooper & Kleinschmidt, 2015).
The purpose of digital marketing is to help more firms take advantage of more efficient means
of promotion and advertising to reach more potential clients. Using this kind of promotion,
companies of all sizes may reach out to potential customers 24/7 via the internet (Agostini
&Nosella, 2020; Maduku et al., 2016; Samoilenko &Osei-Bryson, 2018). So, the growth,
productivity, and competitiveness of small businesses are all dependent on their use of digital
technologies. Small and medium-sized enterprises (SMEs) that use digital and social media
marketing have a better chance of expanding their customer bases and retaining them (Taiminen
& Karjaluoto, 2015).
As more and more marketing processes are digitized, traditional marketing strategies are being
revolutionized (Caliskan, Ozen&Ozturkoglu, 2020). In today's fast-paced technology world,
consumers' tastes and expectations are always shifting, making it challenging for businesses to
stay ahead of the competition (Vidili, 2021). To increase digital sales in a sustainable way and
highlight them as a competitive advantage, strategic sales decisions must be made. This
highlights the growing significance of customer-centric sales methods in the modern business
environment (Zhu & Gao, 2019).
Digital marketing via social media channels enables small businesses to compete with larger
ones by implementing novel and inexpensive consumer communication tactics. Digital
technology helps both customers and businesses because it boosts revenue and productivity
while lowering overhead (Foroudi et al 2017).
1.2 Problem Statement
According to Asep Junaed et al, (2023), digital marketing is important because it provides
opportunities to increase sales, add value, be closer to customers, offer brand extensions online,
have broad reach - all at low cost and leverage marketing media such as e-commerce. According
to Christine Wachira (2023), digital marketing has a positive effect on SMEs sales growth in
Nairobi, Kenya. From reviewing previous literature, the author is not aware of any study that
attempts to examine the relationship between digital marketing and sales performance of small
businesses in Yemen, also he is not aware of any study that attempt to examine the effect of
digital marketing on sales performance of small businesses in Yemeni companies. Accordingly,
it is necessary to conduct such research for increasing the awareness of sales performance, and
to show how it is important to managers to know to which extent digital marketing can affect
performance of small companies’ sales in Yemen. Hence, this study attempts to examine the
effect of digital marketing on sales performance in Yemeni companies.

1.3 Research Questions

It attempts to examine the impact of digital marketing on sales performance for small companies
in Yemen, this study aims to answer the following questions: -
i. Is there a relationship between digital marketing and sales performance in Yemen?
ii. Does digital marketing affect sales performance in Yemen?

1.4 Research Objectives

This study aims to examine the impact of digital marketing on sales performance in Yemeni
companies and specifically achieving the following objectives.
i. To identify the relationship between digital marketing and sales performance in
Yemen.
ii. To know how digital marketing influence sales performance in Yemen.

1.5 Significance of the Study

The contribution of this study consists of theoretical and practical perspectives. This study
contributes to the body of knowledge from the theoretical point of view due to some reason.
This study provides a framework to knowledge by developing a model for digital marketing in
sales performance in Yemeni small businesses, and examining whether digital marketing have
 significant or non-significant impact on tactics and approaches of sales performance in Yemen.
In addition, the study investigates the contribution of the digital marketing in decision-making
process regarding sales performance for Yemeni small businesses. Practically managers can use
this research to know the most effective approaches for using and managing their digital
marketing campaigns to raise their sales volume and achieving higher profitability, so that they
will be able to benefit from this knowledge in operating their small businesses successfully.
1.6 scope of the Study
The scope of this research was limited to examine the contribution of digital marketing on sales
performance in the context of Yemeni small companies. The target respondents were the
managers of small businesses who are operating within Yemeni market in Sana’a (the capital of
Yemen). The decision was made to only solicit responses from Yemeni managers since this
research was concerned with digital marketing that has a relationship with small businesses sales
performance. Respondents were largely selected from Yemeni managers.
1.7 Definition of Terms
i. Big Data:
Digital marketing: Digital Marketing is a component of marketing that uses the
internet and other online technologies like computers, mobile phones and tablets to
promote goods and services (Soundharya, 2020).
Digital marketing: Refers to internet-based process by which advertisers communicate,
interact with and persuade online users in order to position a brand, which allows a
company to promote both customer awareness and preference in a customized and
personalized way, and to decrease the time needed to make a buying decision
(Hanafizadeh & Behboundi, 2012).

ii. Sales Performance:

Sales Performance Sales performance refers to how effectively an organization sales
team performs within a specific period. Implementing sales performance management
is one of the most common ways to track and manage sales reps' work from the
beginning and beyond (Gabler & Agnihotri, 2019).
Sales Volume: Sales volume is the amount of goods or services sold in the exchange
process (Pradiani, 2018).
 CHAPTER TWO

LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

2.1 Introduction

The aim of this chapter is directed in reviewing and spotting the light on some of the related
previous studies, which highlight upon the influence of digital marketing and sales performance
in the small businesses. Furthermore, it aims at designing a framework model representing the
relationship between the two variables and building a hypothesis that support the relationship
between the variables and the influence of the independent variable digital marketing on the
dependent variable sales performance.

2.2 Sales Performance

2.2.1 Definition of Sales Performance

Sales growth involves the increase in amount of revenue by a firm over a defined period. This
could be as a result of increase in product prices, selling of more products or both. Sales growth
as a result of price increase could be as a result of inflation adjustment and therefore not due to
real sales growth but if costs remain low then it contributes to the real growth of sales. Increase
in the number of products sold also represents sales growth which could be as a result of
geographical expansion, growth in new branches, or increase in the number of
products and services (Olonde Jeconia Omondi 2017).

Sales performance refers to the economic results derived from sales of goods or services, it
indicates strong brand awareness and customer loyalty (Horsfall & Ubaka, 2018).

Sales are the revenue that a firm will receive due to the delivering of goods/services from its
primary business. Firms that have stable sales can get higher debt, which means that the more
stable the sales of a firm, the more capable the firm will meet their obligations (Syaifullah, 2014;
Sudana, 2015 and Hanafi, 2016). Sales can be generated in cash or credit (Hikmah, Djuwita, &
Widagdo, 2019). If the deal is in credit, the firm will only receive the money according to the
agreed credit period. Credit sales incur costs and benefits for the firm. The cost of credit sales
 is to collect receivables and bad debt. Meanwhile, the advantage of the firm is to increase in the
sales volume (Thomas Sumarsan Goh., et al, 2022).

Sales growth is an increase in sales that occurs from year to year. Sales growth can indicate the
level of consumer demand for the company's products (S.J. Cho., et al. 2019).

Selling is defined as “the phenomenon of human-driven interaction between and within

individuals/organizations in order to bring about economic exchange within a value-creation
context” by Dixon and Tanner (2013, p. 10).

Sales performance is defined as “behavior evaluated in terms of its contribution to the goals of
the organization” (Johnston & Marshall, 2006).

Hunter and Perreault (2007) defined key aspect of sales performance as relationship-building
performance and internal-administrative performance.

Sales performance is the volume of offers accomplished inside a predefined period contrasted
with predetermined sales levels (Rotich, 2016).

2.2.2 Importance of Sales Performance

The sales growth is positive and increasing which means that it will increase the firm value,
which is the investors’ expectation. Sales growth has a positive and not significant impact on
firm value, partially (Pantow et al., 2015). The result of (Lazarus et al., 2021) stated that sales
growth indicated a significant influence on corporate performance.

According to Sudana (2015), when a company sells goods or services, they can do it in cash or
credit. If the sale was made in cash, then when the sale was done, the company will receive
cash; otherwise, if the sale was made on credit, the company will only receive cash sometime
later according to the agreed credit period. Selling on credit will create costs and benefits for
the company. There are direct costs arising from credit sales, such as collecting receivables, and
indirect costs in the form of the opportunity cost of funds tied up in receivables and losses due
to uncollectible receivables. Meanwhile, the benefits obtained by the company from selling on
credit are in the form of an increase in sales volume, which in turn will increase profit. the firm
value.
 The company can increase its efficiency and productivity through sales growth. By knowing
how high the sales growth rate is, the company can predict the profits to be received. Companies
can set profit targets so that they have a clear direction in achieving goals (Nadia Angelia., et
al, 2021).

High sales growth indicates that the company has a competitive advantage, thereby increasing
the company's opportunities for business expansion (D. Yazdanfar., et al, 2015). High sales
growth indicates that more company products are being sold. Increasing sales volume can
optimize the level of productivity and efficiency of the company (H. Rahyuda.. et al, 2015). The
company will do mass production due to high market demand so that it can reduce production
costs. Reducing production costs will help the company to improve its financial performance.
This situation is in line with previous research, which found that the higher the sales growth, the
higher the financial performance (P. Öhman., et al, 2018, S.C. Jang., et al, 2012, M.Y.M.
Kaskeen., 2017).

2.2.3 Previous Studies on Sales Performance

Dhikir. Owour 2022, did a study to understand the impact of pricing strategies on sales
performance of retail companies: a case study of retail companies in Kiambu County. The main
purpose of this study was to establish the effect of pricing strategies on sales. This study adopted
a descriptive research design. The target populations for this study and was drawn from 4 (four)
registered retail firms which are currently in operation in the Kiambu County and listed in the
Kenya business directory of year 2021, and that consisted of a target population of 142
respondents. According to this study, cost-based pricing strategies and sales performance of
retail firms were linearly related and the relationship between the two was positive and
statistically significant. The study also showed that demand-based pricing had a significant
linear relationship with sales performance of retail firms. The study established that competitor-
based pricing and sales performance were linearly related. The study concluded that under Cost-
based pricing strategies, retailers developed specialized products that they can sell at lower
prices in the market than their competitors to maximize revenues. Under demand-based pricing
strategies; the customer-driven benefits of demand-based pricing are higher for categories with
higher penetration, as well as for brands with high market share and high demand sensitivity to
price. Under Competitor-based pricing; retailers have an opportunity to improve profitability
 further by better managing assortment, inventory and price relative to competition, but they
require more sophisticated software to effectively optimize their business in these areas.
performance of retail firms in Kiambu County, Kenya.

Michaek Mwenda Giyuma 2017, did a study to understand the effects of the marketing mix on
sales performance. The purpose of the study was to determine the effects of marketing mix on
sales performance. Descriptive research was used in the study. Target population was 127
middle level staff at Unga Group Limited. Stratified random sampling was used to select a
sample size of 96. Structured questionnaires were used to collect data. The study concluded that
product quality has a positive impact on sales performance, brand awareness influences
organizational performance, packaging is used to describe the product, brand image, and loyalty
influences company’s profitability and pricing strategy increases sales volume. In addition, store
design and use of attractive stimuli such as music has an influence has a positive effect on
consumer purchase and sales volume, and geographic location has a significant influence on
profitability, advertising, direct marketing and increases sales volume.

2.3 Digital Marketing

2.3.1 Definition of Digital Marketing

Digital marketing is the utilization of electronic media by the marketers to promote the products
or services into the market. The main objective of digital marketing is attracting customers and
allowing them to interact with the brand through digital media (Rajesh Raj & Tamilarasan
2023).
Chaffey defines Digital Marketing as achieving marketing objectives through applying digital
technologies (Chaffey, 2019).
According to Tac 2010, digital marketing refers to the aspect of marketing that uses the internet
and online-based technology like computers, mobile phones, and digital media platforms to
advertise goods and services (Tac 2010).
Digital marketing, as defined by Chen (2017), entails spreading word about and selling goods
and services using digital mediums.
 The phrase "digital marketing" refers to the practise of promoting a business's wares or services
via digital channels, with the use of digital technology, in order to attract and keep clients
(Kotler, 2017).
According to (Kotamena & Tukiran, 2020) Digital marketing is product marketing through
digital media that is connected to the internet.
Digital marketing is promotional activities and market search through online digital media by
utilizing various means such as social networks. By utilizing social networks, we can reach
everyone around the world (Juli Sulaksono, 2021).
Digital Marketing Strategy is defined as a plan of action for creating awareness of products or
services using technologies to achieve organization goals (Zhong Li, 2021). These include the
use of the internet, social media and online platforms for marketing via devices such as smart
phones, tablets and laptops.
Social Media Marketing (SMM) is a mode of networking that forms online community
platforms through internet users who connect with the help of technology (Giunta, 2021). These
include Facebook, Instagram and Twitter.
Website Marketing is defined as the means of promoting a business through organization
domain names to bring in more customers on the web pages. The customers are online users
likely to purchase the business’s services or products (Kienapple, 2020).

2.3.2 Importance of Digital Marketing

Digital marketing allows firms of all sizes to present their wares online, at any time, to potential
clients who may be anywhere in the world The fundamental goal of digital marketing is to
provide novel methods of advertising and promotion that successfully grab the attention of
target audiences. (Samoilenko & Osei-Bryson, 2018).
Online advertising is a powerful instrument for achieving two of any company's most important
goals—brand development and increased website traffic (Song, 2001).
The benefits of online marketing have been extensively documented (Durmaz & Efendioglu,
2016) and include competitive pricing, specific demographic targeting, easy product research,
and product and service exploration prior to purchase.
Using digital marketing strategies that use social media channels is a great way for small
businesses to save money and reach more clients (Harshini C S & Umesh U 2023).
For businesses, investing in and effectively deploying digital marketing strategies, such as
mobile marketing, social media marketing, and search engine marketing, can yield tangible
benefits (Harshini C S & Umesh U 2023).
Role of digital marketing in promoting SMEs (Rajesh Raj & Tamilarasan 2023):
i. Digital marketing gives everyone equal chances: The competitive environment is the
same for all businesses, regardless of their size. In a digital world, small and mid-size
businesses have equal opportunities. You can compete with both corporations and other
smaller companies, regardless of how much money your company has to spend.
ii. Digital marketing helps you earn an impressive ROI: Digital marketing’s role also
focuses on helping you make more money from your marketing efforts. In comparison
to traditional marketing, online marketing is extremely cost-effective, offering an
impressive return on investment (ROI). In order to achieve your business objectives, you
cannot ignore digital marketing. Optimizing your marketing budget allows you to get a
bigger ROI.
iii. Digital marketing allows you to reach people where they are: The role of digital
marketing also helps you connect with people interested in your business. Traditional
methods make it challenging for you to advertise to people looking for your products or
services. Digital marketing, however, allows you to focus on the people interested in
your products or services. With digital marketing, you are reaching people interested in
your business. These marketing methods allow you to target the people that want your
products or services. Targeting allows you to save time and money, so that digital
marketing will help you to only reach people that need your business. It will help you
drive better results from your campaign and generate a better ROI for your company.
iv. Digital marketing allows you to track its effectiveness: As you look at the different roles
of digital marketing, you’ll discover that online marketing also makes it easy for you to
monitor the effectiveness of your campaigns. Whenever you run an advertising or
marketing campaign, you want to know if it’s driving results. Traditional marketing
methods make this difficult because you can’t know if your efforts persuaded your
audience. Digital marketing is cost-effective and the return on investment remains much
higher than traditional media which is a sure attraction for SMEs.
How Digital marketing improves sales Growth (Rajesh Raj & Tamilarasan 2023):
i. Wider reach and geographical expansion: Expanding your business to a new
geographical location using traditional marketing strategies is a tiresome and time-
consuming task. By applying suitable Digital marketing plans, one can easily expand
their business to new areas and locations without any terrestrial hurdles. Digital
marketing campaigns can be set up easily and in no time, they are extremely flexible and
you can target your kind of audience without any hassles.
ii. Building a Brand name: If a business is able to deliver what they promise to their targeted
audiences, it plays a very important role in building a brand reputation. This will help in
earning the trust of the end-users build stronger and better relationships with the
consumers. Whether your business is small or large, digital media marketing solutions
can help each and every organization to build a strong and trustworthy brand name.
iii. Cost-effective: Small and medium businesses don’t have huge capitals to spend on
different channels of marketing. TV ads are very expensive, and so are the charges of
billboards and print ads. All businesses do not have so many funds to spend on marketing
their business. This is where Digital ads play a major role, Digital marketing plans do
not require huge capital and they have the ability to reach a wider targeted audience at a
lower cost. Digital Media Marketing solutions provide businesses with improved and
considerably cost-effective marketing channels which communicate more efficiently,
converting a large number of target audiences.
iv. Better revenues: An effective digital marketing plan results in high conversion rates,
which eventually helps the business to earn higher revenues. Digital marketing plans
help in generating much higher revenue as compared to the different traditional
marketing channels.
v. Improved ROI: As mentioned above, effective digital marketing plans will help in
enhancing a company’s brand value and revenues. Similarly, it also helps in generating
an Improved ROI as compared to traditional marketing. The strategies of digital
marketing are very easy to monitor, helping you to measure the actual results for the
impact on your targeted audience. The key to a prosperous digital marketing plan is to
produce a continuous flow of traffic which can be converted to leads. The higher the
traffic is generated; the quicker will be the return on your investment.
 Online advertising has several advantages, including its low cost, targeted nature, user-
friendliness, and access to product information before purchase (Durmaz & Efendioglu, 2016).
A small firm can reach more people for less money by using digital marketing tactics like social
networking (S Naga Poornima., et al 2023).

According to S Naga Poornima., et al 2023, using various forms of digital marketing can
significantly improve the financial health of a small or medium-sized enterprise (SME). Social
media advertising is the most reliable indicator of future success.

Digital marketing via social media channels enables small businesses to compete with larger
ones by implementing novel and inexpensive consumer communication tactics (Neelapala
Venkat., et al).

2.3.3 Previous Studies on Digital Marketing

Srinivasan, Bajaj and Bhanot (2016) did a study to understand social media marketing concept
and its role in the micro, small and medium enterprises sector. The study used exploratory
research to identify the social media marketing techniques used to acquire and retain customers
by MSMEs. Judgmental sampling was used to collect data from fifty micro, small and medium
enterprises (MSMEs). The study results indicated that participation in social media creates a
strong impact on brand awareness and brand trust, which results in a strong influence on
customer acquisition and retention. The study also indicated a positive relationship between the
time spent on social media and amount of sales made. It concluded by stating that social media
marketing strategies have a positive impact on customer acquisition and retention which results
to market share increase.

Adegbuyi, Akinyele and Akinyele (2015) did a study examining how social media marketing
affects the performance of small-scale businesses. They study administered one hundred and
fifty copies of questionnaire to owner - managers and employees of selected SMEs in Ota
Metropolis. The data was analysed using descriptive statistics, ANOVA and correlation test.
The study results indicated that relationship creation and networking with other businesses
increases brand exposure. A business may reciprocate to promote your business when you
promote their business or product. The study also indicated that social engagement with others
 makes businesses visible to their audience and this creates potential to reach many
potential customers.

Wanjuki (2014) also did a study to determine the impact of digital marketing growth on
customer service in Barclays Bank of Kenya. The study adopted a case study approach analyzing
Barclays Bank branch in Meru. The data collected was analyzed using content analysis. The
study results showed that 59 % of the respondents indicated that digital marketing enhances the
brand visibility of the bank, 26 % felt that digital marketing increasing awareness about the
product that a bank offers to its customers, while 12 % indicated that the digital marketing
creates psychological believe that the bank services are the best compared to all
others in the market.

Erdoğmuş and Çiçek (2012) did a study on how social media marketing has an effect on
consumer brand loyalty. The scope of the study consisted of customers who followed at least
one brand using social media in Turkey. The relevant data was collected by administering a
questionnaire which was structured, with a sample size of 338 respondents and the collected
data analysed through multiple regression analysis. The study results indicated that social media
marketing has a positive effect on consumer brand loyalty when the media provides
advantageous campaigns, offers relevant and popular contents, and also appears on various
platforms and provides I applications on social media.

2.4 Previous Studies on Digital Marketing and Sales Performance

A study conducted by S Naga Poornima, A Mary Francina, K Mary Keerthi & A Rupavenu
2023, titled “Impact of Digital Marketing on MSMEs’ Sales and Business Sustainability”
concluded that: using various forms of digital marketing can significantly improve the financial
health of a small or medium-sized enterprise (SME).

The goal of the research was to better understand the relationship between sales performance
and digital marketing's impact on a company's long-term viability. Structured equation
modelling and other quantitative methods are employed for data analysis here. using methods
that require minimal effort or time on the part of the sample taker. One hundred forty-two micro,
small, and medium sized enterprises (MSMEs) in Hyderabad area were sent online
questionnaires, and the completed surveys that were returned were analyzed. Data analysis
reveals digital marketing had a positive and material effect on business outcomes including sales
performance and long-term viability. Social media, the World Wide Web, and Search Engine
Optimization are just a few examples of the channels where digital marketing can be practised
(SEO). Social media was shown to be a frequently used digital medium among MSMEs. And
talk about the results of a rise in SME sales volume.

A study conducted by Neelapala Venkat, Devi Pathivada, Banavathu Chinni, A. S. Prasad, Inti
Prabhakara Rao & Ramaswamy Palla 2023, titled “Impact of Digital Marketing Practices on
Sales Growth and Sustainability of MSMEs” concluded that: Results showed that MSMEs' sales
performance and firm longevity improved significantly after implementing all some of digital
marketing strategies (MSMEs).

The study's goal is to uncover which aspects of digital advertising have the greatest impact on
sales and revenue. The data provided is analyzed using quantitative methods, specifically
structural equation modelling. collecting representative data by employing procedures that are
simple to implement. The data from an online survey of 150 micro, small, and medium-sized
businesses (MSMEs) in the Hyderabad area were analyzed. According to the data, digital
marketing has a significant positive effect on business outcomes such as revenue growth and
company lifespan. 'Digital marketing' refers to promotional efforts spread throughout a wide
variety of digital channels, such as the web, social media, and search engines (SEO). Among
the most widely used digital platforms for long-term business success, the results suggest that
social media is where most MSME owners spend their time.

Yasmin, Tasneem and Fatema (2015) conducted a study on the impact of various forms of
digital marketing on a firm's sales. The study used primary data examining a sample of 150
companies and 50 managers who were selected randomly to determine digital marketing
effectiveness. The data collected was analyzed using various statistical tools and techniques
including correlation tests. The study results indicated that there is a positive relationship
between digital marketing and sales increase. It also indicated that all digital marketing elements
such as online advertising, search engine optimization, email marketing, and social media have
positive effect on firm's sales.
2.5 Research Framework

The purpose of the development of the research framework is to examine the relationships
between digital marketing and sales performance for small companies in Yemeni. The
theoretical framework proposed in this study comprised of independent variable namely; Digital
Marketing, and Sales Performance is considered as the dependent variable in the theoretical
framework as illustrated in Figure 2.1.

IV DV

Digital Marketing Saled Performance

Figure 2.1: Theoretical Framework

2.6 Hypotheses Development

Based on the extant literature review and theoretical development discussed in previous
sections, a number of hypotheses have been developed to answer the two identified research
questions.

H1: Digital marketing has a relationship with sales performance.

H2: Digital marketing has an effect on sales performance .

2.7 Summary

This chapter has discussed several previous studies which concerns two variables, starting with
the dependent variable which represents the sales performance and then moving on to the
independent variable which represents digital marketing. Moreover, it has also provided a
couple of previous studies which have supported and discussed the relationship among the two
variables. Depending on those studies a framework has been designed illustrating the
relationship among the variables which enabled the building of these study hypotheses.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

Chapter three describes in sufficient detail how the study was carried out in order to collect the
data to test the hypotheses and answer the research questions. It describes the research design
including the type of this study, purpose, type of investigation, level of interference, and the
study setting. Moreover, it describes the size of the targeted population and sample and the way
used to determine the sample for this study. It also explains the measurements that used to
measure the two variables of this study, data collection, and instrumentation translation.
Furthermore, it describes the administration of questionnaire, scale reliability, and data analysis.

3.2 Research Design

Research design can be defined as the specification of techniques and processes for obtaining
the information required. In addition, the researchers stated that the concept of research design
is the over-all operational pattern or framework of the project which states what data is to be
gathered from which source by what processes. Research on education has and will continue to
produce growing bodies of knowledge. This knowledge growth does not naturally occur, rather,
“It is produced through the inquiries of scholars - empiricists, theorists, practitioners - and is
therefore a function of the kinds of questions asked, problems posed, and issues framed by those
who do research. There are diverse communities involved in research on teaching and these
communities can be divided into two general categories of study: quantitative research and
qualitative research (Catherine M., 2010).
Research design was described as "a detailed outline of how an investigation will take place. A
research design will typically include how data is to be collected, what instruments will
be employed, how the instruments will be used and the intended means for analyzing data
collected " (Valdez, 2015).
3.2.1 Type of Study

Research design is the general construction of a research project. Research design is the general
arrangement or construction of the research project. It demonstrates what sort of study is
arranged and what sort of results are normal from this task. It explicitly centers on the end-
product of the research. It is practically difficult to continue with a research project without a
legitimate research design. The primary capacity of a research configuration is to ensure that
the data accumulated all through the research addresses the underlying inquiry unambiguously.
As such, the ultimate results and finishes of the research should relate to the research issues
picked toward the start of the research.

3.3.2 Research Approach

Quantitative research is a mean for testing objective theories by examining the relationship
among variables (Polit and Hungler, 2013). A variable is a factor that can be controlled or
changed in an experiment (Wong, 2014). The word quantitative implies quantity or amounts.
Information collected in the course of the study is in a quantified or numeric form. This is
referred to as statistical evidence (White and Millar, 2014).
Quantitative research falls within the philosophical underpinning of Positivism. A Positivist
researcher believes in the concepts of objective reality (Jirojwong, et al, 2014). Furthermore,
quantitative research attempts to establish statistically significant relationships, addresses
questions by measuring and describing, is based on objective measurement and observation, and
is concerned with correlation and causation (Hamer, and Collinson, 2014). Moreover,
qualitative research is a type of scientific research. In general terms, scientific research consists
of an investigation that seeks answers to a question, systematically uses a predefined set of
procedures to answer the question, collects evidence, produces findings that were not
determined in advance, produces findings that are applicable beyond the immediate boundaries
of the study Qualitative research shares these characteristics. Additionally, it seeks to understand
a given research problem or topic from the perspectives of the local population it involves.
Qualitative research is especially effective in obtaining culturally specific information about the
values, opinions, behaviors, and social contexts of particular populations (Mack N., 2011).
The distinction between quantitative and qualitative research is that quantitative research relies
on the collection of quantitative data (i.e., numerical data) and follows the other characteristics
 of the quantitative research shown in Table 3.1 Qualitative research relies on the collection of
qualitative data (i.e., non-numerical data such as words and pictures) (Kwadwo S., and Kasim
H., 2015).
To study the relationship between digital marketing and sales performance, quantitative research
is an appropriate method to be used. So, for this study, the quantitative approach has been chosen
for achieving the objectives of this study. The data will be gathered by questionnaire survey
method.

3.3.3 Purpose of the Study

The motivation behind any research can be classified into three methods, which are exploratory,
descriptive, and hypothesis testing.
i. Exploratory Research
The aim is to look for patterns, ideas or hypotheses rather than testing or confirming a
hypothesis. In exploratory research the focus is on gaining insights and familiarity with
the subject area for more rigorous investigation later. Exploratory research helps
determine the best research design, data collection method and selection of subjects, and
sometimes it even concludes that the problem does not exist (William Sebunje 2018).
ii. Descriptive research
This describes phenomena, as they exist. It is used to identify and obtain information on
the characteristics of a particular issue. The data collected are often quantitative, and
statistical techniques are usually used to summarize the information. Descriptive
research goes further than exploratory research in examining a problem since it is
undertaken to ascertain and describe the characteristics of issue (William Sebunje 2018).
iii. Hypothesis Testing
Hypothesis testing is a demonstration in statistics whereby an analyst tests a suspicion
concerning a populace boundary. The approach utilized by the investigator relies upon
the idea of the data utilized and the justification of the examination. Hypothesis testing
is utilized to evaluate the plausibility of a hypothesis by utilizing test information (Md.
Shahin Miah & Lipa Hoque 2021).
The research adopted the hypothesis testing approach to examine the research hypotheses which
are mentioned in the previous chapter.
3.3.4 Type of Investigation

Causal research, as the name specifies, tried to determine the cause underlying a given behavior.
It finds the cause-and-effect relationship between variables. It seeks to determine how the
dependent variable changes with variations in the independent variable. The results obtained
may not be very straight forward because, more often than not, the variability will be a factor
of more than one variable. Therefore, while varying one variable, the other variables need to be
held constant. This type of research can take two forms:
Experimental – The research performs structured experiments to vary one variable and find the
effect on the behavior/end result
Simulation based – This uses mathematical formulae to simulate real life scenarios. (Mbaskool,
2008)
Correlation research is simply defined as a relationship between two variables. The whole
purpose of using correlations in research is to figure out which variables are connected. Or
Correlation researches a type of non-experimental research in which the researcher measures
two variables and assesses the statistical relationship (i.e., the correlation) between them with
little or no effort to control extraneous variables. (Kowalczyk, 2015) In addition, it is going to
start referring to the things as variables; it's a more scientific name. This simple definition is the
basis of several statistical tests that result in a correlation coefficient, defined as a numerical
representation of the strength and direction of a relationship. (Kowalczyk, 2015).
Correlation research is looking for variables that seem to interact with each other, so that when
you can see one changing, you have an idea of how the other will change. This often entails the
researcher using variables that they can't control. Since the researcher cannot assign certain
variables, this would mean the researcher is performing a quasi-experimental study. A quasi-
experimental study is defined as an experiment in which participants are not randomly assigned.
There are different techniques for how we might overcome this, and I encourage you to explore
this in other lessons. (Kowalczyk, 2015). While we focus on correlation in research, we must
also note that the correlation can be positive or negative. Positive correlations mean that as
variable A increases, so does variable B. A negative correlation is defined as when variable A
increases, variable B will decrease (Kowalczyk, 2015).
This study is quantitative and data gathered using surveys, so the authors adopted correlational
method to identify the relationship between digital marketing and sales performance.
3.4 Population and Sampling

Population can be defined as all people or items that one wishes to understand while sampling
is the process of selecting segment of the population for investigation. It is aprocess of selecting
a sample of units from a data set in order to measure the characteristics, beliefs and attitudes of
the people (Hair JF 2003). Sampling survey involves structured questionnaire to evaluate people
beliefs and attitudes. Collected data via structured questionnaire can be enumeration of a
selected population or subgroup. Authors like Malhotra and Birks 2007 have explained that a
smaller group of population has ability to make an inference about a larger group of population.
This type of selection is also beneficial to reduce the work burden andcost that would have
been involved in studying the whole target population. Similar tothis Cooper. (Schindler 2003)
have posited, there are several reasons for sampling including: better speed of data collection,
results accuracy and cost efficiency.

3.4.1 Population

In this study the researcher has addressed (7) companies making totally a population of (3,445).
Table 3.2 includes the companies with number of employees in each one.

Table 3.1: Research Population

N Item Number of Employees

1 A2Z Institute 50

2 YKB 567

3 Yemen Mobile Telecom 1,194

4 ONECASH 124

5 YOU Telecom 1,265

6 Speak.Up Institute 34

7 Ahed Company 211

Total 3,445

Source: (Zawya, 2019), (hacs-yemen, 2019) (Linked in.com,2021) (Yemenat.com,)

3.4.2 Sample Size

A sample size is a number of units (persons, animals, patients, and specified circumstances) in
a population to be studied (Cooper & Schindler, 2014). According to Krejcie & Morgan (1970)
the sample size for this study should be 346 respondents.

3.5 Instrumentation

Accurate and systematic data collection is critical to conduct scientific research. Depending on
research type, methods of data collection include documents review, observation, questioning,
measuring, or combination of different methods. This research will follow the questionnaire
method, which is a data collection instrument consists of a series of questions and other prompts
for the purpose of gathering information from the respondents. The questionnaire was invented
by Sir Francis Galton (Abawi 2013). Thus, the substances of the pool created for this study
contain three sections. The first part including the demographic information namely gender, age,
education, position and experience. The second part contains questions for measuring research
independent variable which is (Digital Marketing). The third and last part contains questions for
measuring the dependent variable which is (Sales Performance). All the questions under this
questionnaire will be measures using the Five Likert Scale as shown in Table 3.2

Table 3.2 Five Likert Scale

Strongly Disagree Disagree Neither Agree Strongly Agree
1 2 3 4 5

3.5.1 Sales Performance Measurements

According to the literature review, the measurements of sales performance are 10. Based on the
determined measurements, the questionnaire will be developed. Moreover, Table 3.3 presents
10 determinants in order to measure the sales performance.

Table 3.3: Sales Performance Measurements

No Measurement
1
2
 3
4
5
6
7
8
9
10

3.5.2 Digital Marketing Measurements

According to the literature review, the measurements of digital marketing are 10. Based on the
determined measurements, the questionnaire will be developed. Moreover, Table 3.4 presents
10 determinants in order to measure the digital marketing.

Table 3.4: Digital Marketing Measurements

No Measurement
1
2
3
4
5
6
7
8
9
10

3.6 Data Collection

According to Rouse 2007, data collection is the systematic approach to gathering and measuring
information from a variety of sources to get a complete and accurate picture of an area of
interest. Data collection enables a person or organization to answer relevant questions, evaluate
 outcomes and make predictions about future probabilities and trends. (Rouse, 2016).
In data collection there are many ways to gather information such as observation, interviews,
surveys and questionnaires. This research considers as a quantitative research, thus the easier
and most effective way in collection data is the questionnaires method. A questionnaire is set of
systematically structured questions used by researcher to get needed information from
respondents. Questionnaires have been termed differently, including surveys, schedules,
profiles, studies, tests, scale, and forms (Ododa, 2009).
For this study, Survey method was used to collect the data from the respondents. However, the
questionnaire will be distributed to the managers and employees that work in selected
companies.

3.7 Instrumentation Translation

The questionnaire in this research was designed and developed in English and translated to
Arabic. Most of the questionnaire recipients were native Arabic speakers with a background in
English, which required the researchers to translate the questionnaire to Arabic language
without losing the core aim of each question. The researchers depended on consultation from
English language professionals, professors, research supervisors, dictionaries, and even the
public to ensure effective translation for the questionnaire.

3.8 Administration of Questionnaire

There are several ways for administrating questionnaire. It can be personally administrated,
mailed to the respondents (SAQ) or distributed via electronic medium. Modes of data collection
by questionnaire vary in the method of contacting respondents, in the vehicle of delivering of
the questionnaire, and in the way in which questions are administered. These variations can have
different effects on the accuracy and quality of the data obtained. This research adopted SAQ
as a method to administrate its questionnaire. A self-administered survey is a data-collection
process where the researcher is entirely absent when respondents are filling out the survey,
hence the term—self-administered. In other words, the researcher sends out the survey to
respondents with instructions on how they can fill it about, and waits for their responses. Most
of the questions in a self-administered survey are open-ended questions that require the
respondents to fully communicate their thoughts with little or no restrictions. One of the most
 common types of self-administered surveys are mail-in questionnaires. Online questionnaires
sent out to respondents via email invitations is another example of a self-administered survey.

3.9 Scale Reliability

Reliability and validity are concepts used to evaluate the quality of research. They indicate how
well a method, technique or test measure something. Reliability is about the consistency of a
measure, and validity is about the accuracy of a measure. Reliability is the degree to which the
measure of a construct is consistent or dependable. In other words, if we use this scale to
measure the same construct multiple times, do we get pretty much the same result every time?
assuming the underlying phenomenon is not changing. Reliability refers to how consistently a
method measure something. If the same result can be consistently achieved by using the same
methods under the same circumstances, the measurement is considered reliable. To determine
the scale reliability, the questionnaire will be tested using Cronbach’s Alpha to ascertain the
internal consistency.

Table 3.5: Reliability Statistics

Cronbach's Alpha N of Items

3.10 Data Analysis

Data analysis is used to examine the data provided by respondents. It includes classification,
transformation, and structuring the data in order to provide useful information. This kind of
information is important for suggesting conclusions and supporting decision making. The
statistically package for social science is used to interpret, transform, and summarizing the data
into meaningful and understandable information. SPSS has been used to test the reliability of
pilot test, Pearson, and multiple regression. It can help to interpret the data more effectively and
efficiently. It also helped to decide whether to support or reject particular hypothesis.

3.11 Summary

This chapter described the research methodology in sufficient detail, how the study was carried
out in order to collect the data to test the hypotheses and answer the research questions. In
addition, it described the research design including the type of this study, purpose, type of
investigation, level of interference, and the Study Setting. Moreover, it described the size of the
targeted population and sample and the way used to determine the sample for this study. It also
explained the measurements that were used to measure the variables of this study, Data
collection, and instrumentation translation. Furthermore, it described the administration of
questionnaire, Scale reliability, and data analysis.