Acta Universitatis Danubius. Œconomica, Vol 12, No 1 (2016)

Abstract

The research is aimed to determine SME Internet marketing usage in the Tshwane area.  The benefits of Internet marketing seem to be ignored by most SMEs.  Social media is one of Internet marketing’s tools and it seems that challenges prevent SME owners from using this tool effectively. A survey study method of research design has been selected for the research. The sample for the study comprised 200 SME owners who currently manage small businesses in the Tshwane area.  To assess the internal consistency of the instrument, Cronbach’s alpha was run and a reliability coefficient of 0.836 resulted. The instrument was validated through content validity.  The instrument was structured and multi-chotomous in design covering demographic and research variable questions.   Descriptive statistical analysis was employed to determine the SME Internet marketing usage in the Tshwane area.

In general the SMEs in this area have a positive attitudes regarding Internet use.  The capabilities of the Internet allow SMEs to use it as communication tool and marketing channel.  The conducted research recommends that Internet marketing can be cost effective if the SMEs make use of their own social networks and use best practises that enable them to get their adverts or posts shared across social networks.  The conducted research also recommends that SMEs with limited resources should start with using social media to enhance Internet marketing.  YouTube as a marketing tool for Internet marketing is effective as well because the learning curve is low and cost involved is almost nil.  Tshwane SMEs should use Internet marketing rather than traditional marketing to promote their businesses because these methods are cost effective.