Small businesses are sole proprietorships, private corporation and partnerships that contribute less revenue and have less employees compared to regular sized industries. Today small businesses are playing an important role in improving national economies globally. In the early 1990s, the most area of study by Russian researchers was the problematics of small business development. After the collapse of Soviet Union system, market reforms were introduced which made a huge population to believe on small businesses as a source of wealth and prosperity for the community as a whole. Small businesses contribute to the economy through innovation, monopoly elimination, and expansion of customer demand, entrepreneur skills development, fighting unemployment and creating jobs. In different countries, classification of small businesses differs within its limits. Regardless of many factors affecting development of small businesses, entrepreneurs are taking all angles to market their products. The aim of this article is to identify and analyze the importance of digital marketing for small trades in Russia.
Russian Entrepreneurship and Small Business Market
The key element of Russian economy growth is small business development which creates a healthy competition in the market. The government have intervened in the functioning of these businesses through legal regulation, tax tools, finance and credit in the market economy. Long-term concept of social economic development by Russian government in supporting small and middle businesses have proved in making a strong national economy.
For small businesses to operate and develop, they need to have access to market opportunities. Although local competition in Russia is lagging behind, the government is playing a critical role in supporting competition through public procurement. Procurement market is providing fair opportunities for Small business to compete.
Russia has significantly made progress in establishing IT services for both the residents and businesses. The availability electronics and network services have ease payment of taxes and dealing with customs processes. Small businesses are taking these opportunities in marketing their products online.
Importance of Digital Marketing for Small Businesses
Thanks to globalization and internet, customers are now able to access information electronically. Small companies are using this platform to compete with national brands in advertising their products due to its limited marketing budgets. Online marketing has enabled small business to stay relevant in the economy. However, small business owners believe that digital marketing is insufficient but the truth is that an organization will gain more customers through this platform. Private companies are now able to target specific geographical and demographics regions with online advertisement.
Online marketing is important as consumer expectations have changed. When a new product is entering the market, clients usually turn to social media or a website to learn more about it. People usually expect a business to have a website for them to verify if the products are legitimate.
Online marketing is more affordable compared to traditional marketing. This is especially important to small businesses as they are able to market their products with limited resources and capital. Its enable them to save time and manpower expenses.
Small businesses are able to upsurge their revenue through increase digital outreach. When the organisation brand gets more exposure, it leads to more sales. Social media as part of digital marketing where a brand gets more like in Facebook and Twitter, it helps small businesses to grow as they build trust and credibility. With a good reputation and trust, customers will prefer a particular product in highly competitive market.
Every year more businesses give up traditional marketing methods and focus on social media or Google AdWords. Marketing competition of brands have increased as a result of huge investment on these resources by companies. Small businesses are using Google Alerts tool to monitor their competitors and marketing strategies so as to improve their strategy. One reason digital marketing is assuming control over traditional marketing platforms is the capacity of online advertisement methods to interact with target audience. It ensures the engagements customers hope to get. It will allow small businesses to get knowledge of prospects need.
Current Trends in Digital Marketing Landscape in Russia
Russia is experiencing supreme growth in the digital world contributing to assent of new communication tools and online media. Russia is leading when it comes to e-commerce, search and social media globally. Consumer perception and selection of channel are the major strategies used by dealers in marketing products. Companies are using search engines and social networks to break into Russian market.
Russia is leading when it comes to e-commerce, search and social media globally.
Russian internet is very diverse as all people are represented. The digital market tool is allowing businesses to get in touch with Russian customers globally. Different strategies are being used in marketing brands online. One of the strategy in digital marketing is entertainment. Entertainment in social media marketing enables customers to get more information on the brand as it is interactive and with topical content.
Provocation strategy has also proved to be way of presenting a brand on social media. Although it is a tricky way of advertising, it has good chance for widespread publication. The current World Cup marketing trends is being used by businesses to advertise their products. About half of the world online population will be watching FIFA World Cup. Businesses are using social media as the best platform to advertise their brand. The scale of marketing opportunities for marketers will increase as the eyes of many people worldwide will be in Russia.
A.T. Kearney (2015). Digital Entrepreneurship in Russia. How Russia can build a world-class digital ecosystem.. [online] pp.9-11. Available at: https://www.atkearney.com/documents/10192/7397723/Digital-Entrepreneurship-in-Russia+%283%29.pdf/51dc3a22-6308-49b5-a822-eb64c4d7a413
Hult, M. and Sjolund, J., 2017. Dynamic Marketing Capabilities: Organizational Renewal Towards Social Media Marketing.
Taiminen, H.M. and Karjaluoto, H., 2015. The usage of digital marketing channels in SMEs. Journal of Small Business and Enterprise Development, 22(4), pg.633-651