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Start-Up Success via Digital Marketing

The study investigates the influence of online marketing on start-ups, emphasizing its significant role in their success, brand awareness, and consumer purchasing patterns. Data collected from 132 consumers revealed a positive correlation between digital marketing and these variables, highlighting the need for start-ups to adopt effective online marketing strategies. The research suggests that while digital marketing is crucial for growth, understanding consumer perspectives is essential for maximizing its impact.

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0% found this document useful (0 votes)
76 views14 pages

Start-Up Success via Digital Marketing

The study investigates the influence of online marketing on start-ups, emphasizing its significant role in their success, brand awareness, and consumer purchasing patterns. Data collected from 132 consumers revealed a positive correlation between digital marketing and these variables, highlighting the need for start-ups to adopt effective online marketing strategies. The research suggests that while digital marketing is crucial for growth, understanding consumer perspectives is essential for maximizing its impact.

Uploaded by

rhieelaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How to Cite:

Garg, S., Asif, S., Yadav, S., & Kaushik, T. (2022). The influence of online marketing on start-
ups. International Journal of Health Sciences, 6(S5), 5414–5427.
https://doi.org/10.53730/ijhs.v6nS5.9827

The influence of online marketing on start-ups

Smriti Garg
Student, GD Goenka University
Email: [email protected]

Dr. Sarina Asif


Assistant Professor, Centre for Innovation & Entrepreneurship, GD Goenka
University, India
Email: [email protected]

Dr. Sheetal Yadav


Assistant Professor, Centre for Innovation & Entrepreneurship, GD Goenka
University, India
Email: [email protected]

Prof. (Dr). Tanuja Kaushik


Professor & Director, Centre for Innovation & Entrepreneurship, GD Goenka
University, India
Email: [email protected]

Abstract---It has been proven in many studies that online marketing


has played a major role in developing and shaping the future of start-
ups. It is no untold truth that indeed online and digital marketing, in
various forms, have and are still influencing the journey of start-ups.
Owning to this, each day more and more companies and businesses
inculcate online and digital marketing into their marketing strategies.
However, a bulk of these studies which have been done are the
perspectives of the companies themselves. A limited amount of study
has been done which reflects the viewpoints of the consumer, as to
how are they affected by the use of online tools for marketing. Thus,
for this study, the data was collected from 132 respondents (the
consumers) using an online questionnaire. The main objective of this
study was to identify if digital marketing is associated with start-up
success, brand awareness, and consumer purchase patterns along
with the effectiveness of online marketing and traditional marketing.
The analysis of the data was done using the SPSS software and a T-
test in addition to correlation is applied. The results showed a positive
correlation of digital marketing with the selected variables: start-up
success, brand awareness, traditional marketing, and consumer
purchase pattern. The T-test showed that there is a significant
difference between digital marketing and its effect on consumer

International Journal of Health Sciences ISSN 2550-6978 E-ISSN 2550-696X © 2022.


Manuscript submitted: 27 Feb 2022, Manuscript revised: 9 April 2022, Accepted for publication: 18 June 2022
5414
5415

purchase patterns. Hence, though this study on online and digital


marketing showed their great influence on start-ups but from the
point of view of a consumer, how they are influenced by this
ultimately leads to the rise or fall of a start-up.

Keywords---online marketing, traditional marketing, start-ups.

Introduction

Start-ups have become very popular in recent times, with young entrepreneurs
aspiring to enter the business world. The growing level of youth unemployment
also encourages self-employment. The Economic Survey 2021-22 report said the
number of well-known startups had risen to more than 14,000 in 2021-22 from
just 733 in 2016-17. The market is focused on new entrepreneurs who present
products and compete with leading brands in the industry. However, without
proper guidance and support, these startups may fail to withstand the storm and
survive in their business.

The best and most effective way to grow your start-up business is to follow a solid
digital marketing strategy. Start-up companies face many tough decisions to
market their companies. They should determine product and quality features, set
up services, set prices, determine distribution channels, determine how much
they will spend on advertising and be able to decide how to differentiate their
resources between advertising, marketing power, and other marketing tools.
Raising a startup is a big challenge and if you do not have a plan, you can end up
spending your time and budget on the wrong activities.

In a world where over 170 million people regularly use social media, every
working professional is expected to become familiar with at least some of the
basic teachings of digital marketing. In other words, it is the promotion of online
products or any other form of electronic media. According to the Digital
Marketing Institute, "Digital marketing is the use of digital channels to advertise
or market products and services to targeted consumers and businesses."

Digital marketing is the marketing of products or services using digital


technology, especially online, but also for mobile phones, advertising, or any
other digital means. The techniques of Digital marketing include e-books, display
advertising, re-direct email marketing, optical discs, optimization for social
media, social media marketing, e-commerce marketing, data-driven marketing,
campaign marketing, automated content, influencer marketing, content
marketing, search engine optimization (SEO), and search engine optimization
(SEM).

All previous research was about how digital marketing affects businesses or
startups. Now if we look at the situation from a consumer perspective.
Consumers today need quick answers to their doubts and complaints. This is
possible through digital marketing. Questions and customer feedback can easily
be posted on social media for a large crowd. By seeing the positive and negative
reviews, consumers are greatly influenced. Digital marketing, therefore,
5416

empowers customers, provides self-awareness and helps brands build stronger


and stronger relationships with them. Thus, digital marketing promotes
consumerism on a large scale. Apart from this, consumers have a lot of
information about new startups being developed. This paper, therefore, attempts
to study the impact of online marketing at launch from a consumer perspective.

Literature Review

Bruhn, Schoenmueller & Schäfer (2012) state that traditional marketing majorly
affected brand awareness whereas social media marketing affected brand image.
In social media marketing, there are two types of content: user-generated and
firm-generated which majorly affect the brand's functional and hedonic image
respectively and are even industry-specific. Social media opens broad
opportunities for direct two-way engagement and has a relatively lower cost of
investment when compared to traditional marketing. Companies need to add
digital and social media into their marketing policy as this increasing trend
among consumers is and will largely be influencing the future brand equity.

Jin's (2012) study showed that if the consumer is satisfied with the luxury
brand's Facebook interface then it predicts a favourable attitude outcome towards
that brand. This attitude is a positive antecedent of consumers utilizing that
brand's social networking site for online shopping, revisiting their social media
accounts and especially for researching the brands online and purchasing them
offline. Thus creating social media interfaces that meet the demands and needs of
the consumers is important for generating a positive and favourable brand
attitude. Likewise, the supremacy of user-generated content significantly
predetermines the brand's advertising practice, further affecting the attitude
towards the brand. Hence, UGC and social media, together form and maintain
the consumer-brand-consumer triad culture.

Riz's (2013) study results showed that there is no direct relation between the
three variables that it studied which are consumers’ purchasing decisions, brand
perception and online marketing through consumers. The consumers agreed that
the brand's existence on social media is essential for its growth and they even
pointed out a word of mouth as the major tool for online marketing in comparison
with chat section and email advertising. Word of mouth has also been proved
useful in influencing the consumer behaviour for brand purchases along with
being cost and time effective and easy to spread. This tool is static in the short
run but once perception is made it can't be changed easily. So building a positive
word of mouth from the early stages is suggested.

Sharma and Bharathi (2013) inferred for start-ups to understand social media
tools and the strategies behind using social media for growing their business.
Social media enables companies to show what they offer and to see what
consumers value. It was shown that Facebook is a more an effective type of social
media for start-up companies comparatively as it accomplishes to fulfil to capture
reach, awareness, visibility and relationship. Facebook users are more likely to
share information with friends, like company pages, and comment on posts made
by companies. These activities both create word-of-mouth and allows for
communication between the company and the consumers. This showed that
5417

marketing on Facebook can be effective for start-up companies in both reaching


and retaining customers.

Bostanshirin's (2014) study shed light on the major advantages and


disadvantages of online marketing, introduced by the revolutionary internet. The
majorly noted advantages include Empowering effect, Elimination of geographic
barriers, 24 hours / seven days availability, cost-effectivity, track-ability, and
personalization. However, online marketing implement some disadvantages as
well, such as problems of integrity, lack of face-to-face contact, Security and
Privacy, and Lack of trust. Thus, it can be inferred that unless these dual
characteristics of online marketing are not taken into consideration, it cannot be
deployed to its full potential.

Akula's (2015) research reflects that social media networks can no longer be
ignored as means of communication, promotion, recruitment and revenue.
Implementing better social media strategies will connect startups not only with
existing but also potential clients. Hence, the company's social media presence
should be dynamic and engaging as well as flexible to change with the changing
trends and technologies. This can make the startups run for a longer time and
even give them success; the ones that failed were due to the lack of this flexibility
and foresight.

Basri and Siam's (2017) study states that social media networks have proved to
provide long-term growth to the startups by promoting their brand at low
financial cost as well as providing efficient word of mouth advertising tools for
marketing products and brand awareness. Apart from this social media has
impacted these small businesses in several ways like content distribution,
increase in sales, brand popularity and loyalty, community interaction and lead
generation. Needless, only a limited number of startups can exploit the benefits of
social media to the fullest.

Rahmania, Soetjipto & Rahayu (2018) work noted that the majority of startup
entrepreneurs started using social media for marketing after being triggered by
their competitors using the same for marketing itself. It was also revealed that the
use of social media was of great help as it provided them with direct feedback and
impressions from the customers and consumers. Its broad coverage without the
time and distance restraints added to its value along-with with being easy to use
and affordable. All the social media marketing techniques have resulted in
increasing the income of startup entrepreneurs. It is suggested that these
entrepreneurs use the features of social media maximally and consistently by
updating them regularly for developing market shares as well as search
improvements in search engines for increasing promotions and revenue.

Binder's (2019) study showed that 82% strongly believed that digital marketing
leads to the success of B2B companies with referrals and content marketing
positively affecting the revenue of such companies. It was seen that bigger sales
of their budget were invested in digital advertisement and marketing. The
strategies which are considered crucial for leading to success are good
cooperative website, social media and SOE. Theoretically, content marketing
holds the top position for driving the company towards success. In digital
5418

marketing, websites have been the most popular selling point following this
research. The two factors involved in it are transparent product details and
excellent support.

Gupta, Grover & Mishra's (2019) research inferred that startups are using digital
marketing out of which 47.5% use social media marketing for generating
awareness as well as promoting their products and services to the target
audience. They believe that this marketing technique is cost-effective as
compared to traditional marketing techniques and reaches prospective customers
fasters along with driving sales.

Gulati's (2019) results showed that Indian start-ups have boosted their business
through the medium of digital marketing. This marketing popularly includes
email marketing and social media marketing. Email marketing is the most
efficient tool for digital marketing as the triggered emails have an impressive ROI
rate. Apart from this, top Indian start-ups are using this strategy for building a
strong online presence which in turn has helped them to grow and generate
numerous employment. Ola Company used this strategy and is now leading the
start-up growth in India. Similarly, marketing through social media has eased the
branding challenge, which the companies faced, to a large extent. Social media
provide a platform to connect beyond local and social boundaries as well as share
user-generated content easily. OYO Rooms became one of the biggest hospitality
chains in India through the use of social media marketing. 68% of start-ups in
India are using digital marketing for promoting their products and services and
about 47% of the company's budget is allotted to digital marketing. Thus it is now
an integral part of marketing in India.

Is-haq's (2019) research on digital marketing showed a positive impact on the


sales improvement strategies of SMEs in Nigeria. The relevant marketing options
included e-mail, social media, search engine optimisation, Pay-per-click and
online advertising. However, it was seen that sales improvement for SMEs was
more positive through the use of e-mails, search engine optimisation, and pay per
click.

Yamini and Nirmal Chand's (2020) study maintained that online marketing is
preferable for present and future startups and small businesses as the people,
the consumers are spending more and more time online. So, this gives them, the
businesses, an opportunity for creating new and innovative ways of approaching
their customers. Online marketing makes the products and services easily
accessible to the customers at their convenience which in turn helps the
companies increase their values.

Akeel & Gubhaju (2020) study demonstrated that digital marketing has a huge
impact on a startup's success but still a majority of them are reluctant to
implement it in their business plan because they find it tricky and time-
consuming. The core attributes of a successful business are strengthening
relationships, trust and satisfaction with the client. Digital marketing provides a
platform for achieving all these attributes with efficiency and effectiveness that
too on a global level and mostly free of cost. Digital marketing also helps in
building brand awareness, brand identity and consumer loyalty. The results also
5419

showed that brand recognition, customer involvement and awareness were the
most emphasised reasons for the use of digital marketing by the start-ups. Online
marketing also has the power to attract and retain customers. Thus digital
marketing has had an enormous and positive effect on the success of the start-up
company.

Unni (2020) discovered that social and digital media marketing has a measurable
impact on consumer behaviour. It changed the way a consumer search, interact
and communicate with the companies and their products and services. However,
what it didn't change is the purchase cycle a consumer goes through while
purchasing a product or service.

Manzoor, et al. (2020) study shows that social media's influence and trust
significantly affect a consumer’s purchase intentions through social networking
sites. The data revealed that social media marketing has a stronger influence
than trust and even the participants preferred purchasing from the social
networking sites when offered high-quality systems and pieces of information.
Other than this, it was discovered that once trust is established among
consumers they are more likely to purchase the product and even become a
regular buyers. Hence, it was seen that trust has a mediating role in social trade
adoption.

Lal et al. (2020) state that effective social media strategies are the ones which
have clearly defined marketing objectives, evaluate opportunities and threats and
select the most appropriate social media for communicating with its present as
well as potential customers. Further, it was identified that understanding the
ways of measuring ROI for social media will help businesses improve their social
media marketing strategies along with planning their budget accordingly and
increasing the overall performance.

Blazheska, Ristovska, & Gramatnikovski's (2020) research results showed the


necessity to create and apply digital marketing strategies for a more efficient way
of communication with the potential and present customers as well as for better
results in business. Further, it was seen that the main factor in attracting the
customers through digital means was via the company's website, which should be
interactive and regularly updated.

Chatterjee and Kar's (2020) study established that the SMEs in India have
increased the use of social media for marketing which has resulted in their
growth in the country. Apart from this it has updated and enhanced the
Customer Relationship Management based activities used by the SMEs. It was
revealed that what motivated the SMEs to use social media marketing was less
complexity, less cost and effective use of social media.

Syaifullah et al. (2021) study revealed during the time of COVID -19 pandemic
compatibility, perceptions of the use of information technology, and ease of use of
information technology significantly influenced the use of social media for
marketing. Further, it also resulted in pointing out the positive effects of social
media marketing on MSMEs. It showed that the MSMEs had an increase in their
5420

sales, better customer relationships, creativity and production. Thus, proper


social media marketing management improved their overall performance.

Mason, Narcum & Mason's (2021) research findings showed that after the
declaration of the COVID - 19 pandemic, social media has increasingly been used
as a tool for identifying products, collecting information on products, evaluating
products, and making product purchases. Given that, the study specifically
highlighted the growing importance of social media as an effective marketing tool,
which was and is being used vigorously since the pandemic began as it positively
impacted the consumer decision-making process.

Hawaldar et al. (2022) observed that the strategies of digital marketing and
customer interaction were the same all over southern Asia but its effect varied
from country to country. Other than this the results showed that digital
marketing has a huge impact on sales and outbound marketing, especially word
of mouth, greatly influenced the brand image as it spreads all across social
media.

Gap in Literature Review

A closer look at the literature on the influence of online marketing on start-ups,


however, reveals several gaps as they were reflecting majorly on the increased
benefits of the same from a company’s viewpoint. The previous studies
highlighted how digital and social media marketing has been useful in increasing
sales and profits for a company. Whereas only a handful amount of them did it
from consumers and customers' point of view, that how they are affected by it,
being the user end party in this exchange. Thus, the user perspective needs to be
emphasized as they are the ones ultimately leading a business to its success or
failure.

Objectives

Following are the objectives of the study:

1. To identify how digital marketing leads to start-up’s success


2. To understand the use of digital marketing in creating brand awareness
for startups
3. To analyze the effectiveness of online marketing as compared to traditional
marketing tools
4. To see how digital marketing affect consumer purchase pattern

Hypothesis

Following are the hypothesis for each objective:

1. To identify how digital marketing leads to start-up’s success


H01: There is no significant relationship between digital marketing and
startup success.
H11: There is a significant relationship between digital marketing and startup
success.
5421

2. To understand the use of digital marketing in creating brand awareness for


startups
H02: There is no association between use of digital marketing and brand
awareness.
H12: There is an association between use of digital marketing and brand
awareness.

3. To analyze the effectiveness of online marketing as compared to traditional


marketing tool.
H03: There is no association between effectiveness of online marketing and
traditional marketing.
H13: There is an association between effectiveness of online marketing and
traditional marketing.

4. To see how digital marketing affect consumer purchase pattern


H04: There is no significant difference between digital marketing and its
effect on consumer purchase pattern.
H14: There is a significant difference between digital marketing and its effect
on consumer purchase pattern.

Research Methodology

Research design
Descriptive quantitative research attempts to collect quantifiable data from the
population sample for statistical analysis. The descriptive method of research is
used to describe a population, situation or problem under study. It focuses more
on the ‘what’ rather than the ‘why’ of the research questions. Given that, for this
study, a descriptive research design is used, which is qualitative, for
understanding the influence of digital online marketing on start-ups in India.

Method of Data Collection


The Primary Data was collected through online Questionnaires shared with
students, professionals, self-employed and others. The secondary data was
collected through research articles studied for literature.
5422

Sampling Design Process


The target population for the study consisted of students, professionals and self-
employed individuals, making the sample size 132. The extent of the target
population was Gurugram, Delhi NCR, and Patiala and the time frame was
March-April 2022. The sampling technique which was used in this study was:
The non-Probability Snowball Sampling Technique.

Results

The demographic results of the study showed that 60 per cent of the respondents
were female and 40 per cent were male. In this, the majority 57 per cent of the
respondents fell under the age group of 20-30 years; 39 per cent were below the
age of 20 and the remaining 4 per cent were 30 and above. Other than this, it
was revealed that 84 per cent of the respondents were students and the
remaining 16 per cent were either professionals or self-employed. Apart from this,
it was seen that 62 per cent and 27 per cent of the respondents agree and
strongly agree to often shop online respectively.

To meet the study's objectives, Statistical analyses were used to compute the

values. Descriptive statistics, Person Correlation, and paired t-test were


calculated by SPSS software.
5423

Table 1. Descriptive statistics

Start-
Digital Consumer Traditional Brand up
Marketing Purchase Pattern Marketing Awareness Succes
s
N 132 132 132 132 132
Mean 12.1 14.6 12.5 8.48 10.9
Standard
1.48 1.69 1.54 1.12 1.67
Deviation

Table 1 shows the Descriptive Statistics of Digital Marketing, Consumer Purchase


patterns, Traditional Marketing, Brand Awareness and Start-up Success. The
total number of participants taken was 132. The mean value of digital marketing
is 12.1 (1.48); for consumer purchase pattern, the calculated mean value is14.6
(1.69); the mean value of traditional marketing came out to be 12.5 (1.54); as for
brand awareness the mean value is 8.48 (1.12), and the mean value for start-up
success is 10.9 (1.67).

Table 2. Correlation analysis

Consume Start-
Digital Tradition Brand
r up
Marketin al Awarenes
Purchase Succes
g Marketing s
Pattern s
Pearson'
Digital —
sr
Marketing
p-value —
Consume Pearson'
0.715*** —
r sr
Purchase < .001
p-value —
Pattern
Tradition Pearson'
0.610*** 0.413*** —
al sr
Marketing p-value < .001 < .001 —
Brand Pearson' 0.424***
0.427*** 0.426*** —
Awarenes sr
s p-value < .001 < .001 < .001 —
Pearson'
Start-up 0.353*** 0.046 0.327*** 0.170 —
sr
Success < .001 < .001
p-value 0.603 0.051 —
Note. * p < .05, ** p < .01, *** p < .001

Table 2 shows the Pearson Product Correlation with was used to measure the
correlation between Digital Marketing and Consumer Purchase patterns,
Traditional Marketing, Brand Awareness and Start-up Success. The first
5424

hypothesis was that “There is a significant relationship between digital marketing


and startup success.” To verify this hypothesis, person correlation was computed,
and the analysis revealed a positive correlation between digital marketing and
startup success (r=.353, p<.001).

The second hypothesis was that “There is an association between the use of
digital marketing and brand awareness.” To verify this hypothesis, person
correlation was computed, and the analysis revealed a positive correlation
between digital marketing and brand awareness (r=.424, p<.001). The third
hypothesis was that “There is an association between the effectiveness of online
marketing and traditional marketing.” To verify this hypothesis, person
correlation was computed, and the analysis revealed a positive correlation
between the effectiveness of online marketing and traditional marketing (r=.610,
p<.001).

The fourth hypothesis was that “There is a significant difference between digital
marketing and its effect on consumer purchase pattern.” To verify this
hypothesis, person correlation was computed, and the analysis revealed a
positive correlation between digital marketing and its effect on consumer
purchase patterns (r=.715, p<.001).

Table 3. Paired t-test

Mean Standard Standard T- df Sig.


Deviation Error Value
Mean
Pair 1 Consumer 2.530 1.21807 .14993 16.87 65 .001
Purchase
Pattern-
Digital
Marketing

Table 3 shows the Paired Sample t-test between Digital Marketing and Consumer
Purchase patterns. Pair 1 is the comparison between Digital Marketing and
Consumer Purchase patterns. The mean value computed was 2.53 (1.21) and the
t-value computed was t (65=16.87,p < .001). As per the hypothesis, there is a
significant difference between digital marketing and its effect on consumer
purchase patterns.

Discussion

The study aims to investigate the influence of online marketing on start-ups from
a consumer’s perspective. The study had 132 participants, 60 per cent female
and 40 per cent male, the majority of which were students ranging from 20-30
years. The analysis of the data was done using the SPSS software. Descriptive
statistics, Correlation, and paired t-tests were statistical analyses performed on
the data. The Correlation was used to find the relation between Digital Marketing
and Start-up Success, Digital Marketing and Brand Awareness, Digital Marketing
5425

and Traditional Marketing and Digital Marketing and Consumer Purchase


patterns. Paired t-test was used to find the significant difference between digital
marketing and its effect on consumer purchase patterns.

To justify the study’s objectives, it was hypothesized that there was a significant
relationship between digital marketing and startup success, which according to
the results shows that the alternate hypothesis is accepted. Further, it was
hypothesized that there is an association between the use of digital marketing
and brand awareness, the alternate hypothesis was therefore accepted in the
accordance with the results. Then it was hypothesized that there is an
association between the effectiveness of online marketing and traditional
marketing, for which the results showed that the alternate hypothesis is
accepted. Lastly, it was hypothesized that there is a significant difference between
digital marketing and its effect on consumer purchase patterns, which according
to the results shows that the alternate hypothesis for this is accepted.

Digital marketing has a huge impact on a startup's success (Akeel & Gubhaju,
2020) as well as a measurable impact on consumer behaviour (Unni, 2020).
Social media marketing has a stronger influence than trust and even the
participants preferred purchasing from the social networking sites when offered
high-quality systems and information. Other than this, it was discovered that
once trust is established among consumers they are more likely to purchase the
product and even become regular buyers (Manzoor, et al., 2020). Social media
networks have proved to provide long-term growth to the startups by promoting
their brand at low financial cost as well as providing efficient word of mouth
advertising tools for marketing products and brand awareness (Basri and Siam,
2017). The digital marketing technique is cost-effective as compared to traditional
marketing techniques and reaches the prospective customer fasters along-with
driving sales (Gupta, Grover & Mishra, 2019).

There is a growing importance of social media as an effective marketing tool,


which was and is being used vigorously since the pandemic began as it positively
impacted the consumer decision-making process (Mason, Narcum & Mason,
2021) along with improving the overall performance of the enterprise (Syaifullah
et al., 2021). Hence, the company's social media presence should be dynamic and
engaging as well as flexible to change with the changing trends and technologies.
This can make the startups run for a longer time and even give them success; the
ones that failed were due to the lack of this flexibility and foresight (Akula, 2015).

Conclusion

The present study aimed to study the influence of online marketing on start-ups
from a consumer’s point of view. Based on this study, it was found that there is a
significant relationship between digital marketing and start-up success. Further,
there is an association between digital marketing and brand awareness. Along
with this, there is an association between digital marketing and traditional
marketing. Lastly, there is a significant difference between digital marketing and
consumer purchase pattern.
5426

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