1.0 Background of the study
Information and communication technology has been expanding and open a way for most of the part of the human life in 21century this rapid growth and expansion are applicable to various social and economic activities which is in other way create an opportunity for individual business and the society as whole. Technology providing the customer and business owners an ability to increase the productivity and to make different business transactions in a business using the communication devices in business (Azam, 2015).
Small and medium enterprises worldwide have played a great role to the economic development the use of the information and communication technology (ICT) are likely to be a competitive advantage for the business owners to have a global markets for the goods and services.(Al-Qirim, 2003). The world economy today are increasing because of the rate of globalization and advances in the information and communication which pave a way for the opening of new market .SMEs sector in Tanzania have been taking different measures so as to promote information and communication usage to different sectors of the economy to enhance productivity((Rumanyika, 2014).
Small and Medium Enterprises (SMEs) now days are occupying a good position for the development agenda in the developing countries a transition to the economies in different sectors, there has been a number of reasons which identifies that SMEs in developing countries is so important, SMEs positively increase the utilization of factors of production such as land, labour and capital though the use of technology (Mutalemwa, 2015). According to Hallberg(2000) the growth of SMEs sector also facilitate much the development of industrial sector and open up a way for number of new entrepreneurs to involve in business this also a source of employment to different groups of individuals in the society and emerging of private sectors.
The adoption of E-marketing also enable the business to perform well in the economy because the electronic marketing promote the product and services to the public through the use of social media like mobile phone, e-mails, social pages like twitter, face book and other media, the media can act as an advertisement tool(Harris & Dennis, 2002).
The use of internet marketing of goods and services varies widely among SMEs sector because of technologies used, globalization in business perspective act as challenge and competitive aspect in winning a market for products. E-marketing opens an opportunity for the enterprises to develop.
1.1 Statement of the problem
Electronic marketing refers to the business activities used by online small and Medium Enterprises this contributing the business firms to improve productivity and revenue, on the other hand the business growth through using different strategies to capture the number of customers the use of electronic marketing can be also beneficial for reaching number of customers, selling product online and hence reduce the cost effectiveness moreover the relationship with other stakeholder in this circumstance being innovative to business owners Othman(2010). The internet is the fastest growing technology in the world which is according to different literature review internet takes about 25% of the market share of different business sector Singh (2002). Some of the business owner in the Small and Medium Enterprises are influenced to adopt electronic marketing as the defending mechanism to their autonomy in the business (Gilmore,Galagher & Henry,2007)
Firms resist adopting the online technology of conducting transaction in business due to the perceived risk of privacy and security issues. According to some of research studies conducted in various areas by Lane et al(2004) SMEs were not prepared to adopt the technology of E-marketing as a business concept of finding a market and advertisement for products produces in these enterprises .Singth(2002) also clarifies that in some extent the obstacle can be due to reluctant of the customers online shop simply there is insufficient awareness and knowledge about the use of the system and trust of using credit card and delivered of purchased product is a challenge issue. The online marketing in SMEs sector is very popular especially in developed countries especially in aspect of the global environment of the business and technological development. It has been shown that marketing an important aspect and act as the heart to the business success E-marketing as an effective marketing tool is not adopted in Most of SMEs in different countries Tanzania is among of them.
Despite of the benefits offered by the electronic marketing from different reviews, only few SMEs adopt the technological system of E-marketing, so this study will focus on exploring the barriers or impediments and challenges to the adoption of E-marketing among SMEs in Songea Municipal.
The general objectives of the study is to explore the impediments to adoption of electronic marketing among SMEs in Songea Municipal
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