THEORETICAL FRAMEWORK

This study is primarily anchored on Chaffey Theory by David Chaffey D.(2002) . The theory looks
at social media marketing as an informal marketing approach (Gonzalez-Lafaysse and Lapassouse-
Madrid, 2016). According to the theory, the interaction between company and its customers contributes
to human behavior, this form significant contribution to customer behavior. When a company succeeds
in adapting and facilitating an innovative approach while building long-term relationships with its
customers, it is called consumer engagement (Sashi, 2012). Customer engagement is focused on being
prioritized especially among competitors in order to gain brand loyalty. Faithful customers not only
remain stakeholders, but also creating great value and high business equity to meet the needs and wants
of customers, (Akhir, 2012). Chaffey theory predicts that by establishing a long- term relation with
clients, social media marketing plays significant contribution to increase The business performance
(Wang et al., 2016). Preceding studies such as Wang et al., 2016; and Wang and Kim (2017) used Chaffey
theory to describe the effect of social media marketing on business performance. In this case, tracking
and facilitating customer participation, interaction, and sharing through digital media can inspire positive
engagement with a company’s branding and increase sales.

Another theory on which this study is anchored is the Customer-led Positioning Theory by Mc
Kenzie (2003). This Theory explains that consumers are the ones that communicate to marketers what
they want from a good or service by compiling information on prices, product features, product function,
and other factors, the consumer can provide the product team with insights. Customers are more likely
to research a product’s effects on their health and potential interactions with other prescriptions when
they are buying medications, for instance. According to a customer-led theory of digital marketing, these
qualities are more significant to buyers of medical drugs than price. A lot of work will be required if you
decide to use digital marketing for your small business, but the benefits for your brand and revenue are
promising. As a result, SMEs employed social media strategy to encourage clients to make purchases,
encourage them to do so.
In line with the research paper, the researcher believes that online marketing disadvantage is
just a normal things in running a business, but the way you run the business is in your control, it is just
based on how the business owner will approach the conflicts in online marketing if he has a positive
thoughts towards it he will choose to strengthen his business by improving the website and ensure that
the security protocols are updated and review the costumer information to avoid bogus buyer instead of
closing the business and let the challenges stop you from doing things that you think will make you a
successful entrepreneur. Online marketing is the another way to compete with others who is about
and/or already running their small businesses online with a limited budget just like the traditional
marketing. SMEs use online marketing so that they can still maximized their network and expand their
system without paying too much because there’s also some digital marketing ways that are free. Big
benefit of that is that you can gain more leads that can be converted to customer without paying too
much, unlike if you are going to pay for reseller to your products/services.