FACTORS THAT INFLUENCE SMES ONLINE MARKETING PRACTICES:A CASE STUDY IN KENYA

Abstract

This study intended to investigate the factors that influence SMEs online marketing practices in  Kenya, the scope was narrowed down to SMEs in the service industry located in Kisumu county. The study was able to answer the following questions: The SMEs characteristics impact on the use of online marketing, the impact  SME owner has on the adoption of online marketing and how resources are limiting SMEs from fully utilizing the potential of  online platforms. The study used case study design, used descriptive questionnaire to collect data from 169 (89.76% response rate) respondents. The data was subjected to qualitative analysis using  SPSS Software to determine the relationships between the study variables(Reliability and factor analysis on the variables was >0.6). The study showed that SME owners’ perception(R=82%) towards online marketing is an important function of the business because in most cases the owner sees the strategic benefits of using online marketing platforms. Pressure from competitors and suppliers are considered by owners when using online marketing to meet the demand of customers. The use of online marketing is also primarily driven by the nature of the enterprise business sector. Also, limited resources (R=74%) hinder most SMEs from gaining the benefits of online marketing.