THIRD YEAR DIPLOMA ENGINEERING (I- SCHEME)

A
MICRO-PROJECT REPORT

“Impact of online marketing on the performance of Small scale

Industry “
Under the subject
Enterpreneurship Development[22032]
Submitted by

Sr.NO Roll. No Name

1 2201 Vaishnavi Fonde
2 2202 Sanika Khatawkar
3 2204 Aishwarya sonawale
4 2217 Komal Nagargoje
5 2222 Reshma Misal

Under guidance of
Mr.Adv Dr Prashant Badgujar

Department of Computer Engineering

Government Polytechnic, Karad.

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 ACKNOWLEDGEMENT
We take it is opportunity to thanks all those who work have
directly and indirectly inspired directed and assisted us towards
successful completion on this project report.
We express our sincere thanks to the Principal, Dr. Prof.Patil sir
and the head of the department, Mrs. Patil S.B. Mam for having us
allowed to submit this report.
We are also grateful to the team of “Impact of online marketing on the
performance of Small scale Industry
” they’re highly encouraging and co-operative attitude. We
express our sense of gratitude our friends and parents for their
constant & moral support.

Place: Karad
Date: -5-2022

Yours sincerely,
Vaishnavi Fonde
Sanika Khatawakar
Aishwarya Sonawale
Komal Nagargoje
Reshma Misal

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 CERTIFICATE
This is to certify as a part of the partial fulfillments of the fifth Sem of diploma in
computer engineering, following students

Vaishnavi Fonde
Sanika Khatawakar
Aishwarya Sonawale
Komal Nagargoje
Reshma Misal

Has successfully completed the Micro-project on “Impact of online

marketing on the performance of Small scale
Industry” for the subject “Software Testing” under the guidance of Mr Adv Dr
Prashant Badgujar Sir. And submitted it to computer engineering department
of Government Polytechnic, Karad.

Date:

Place: Karad

Prof. S. B.Patil Mr Adv Dr Prashant

Badgujar Sir

( Head of department (Project Guide)

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 A MICRO PROJECT ON
Impact of online marketing on the performance of Small scale
Industry

INDEX

Sr. No. Index Page No.

1. Abstract 6
2. Introduction 7-9
3. Social Media 10-11
4. Cost of Advertising 12
5. Affiliate Marketing 13
6. Objectives & Limitations of the Study 14
7. Impact of Social Media 15-17
8. Advantages & Disadvantages of Online Marketing 18
9. Conclusion 19
10. References 20

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 Abstract

The goal for this project is to explore the current social media methods of a local
business, Ambiance, and ultimately determine the best way to reach the most customers.
Knowing that the target audience is growing with new technology trends, we are curious
to see whether or not our current marketing methods are reaching as many customers as
possible. By organizing a survey focused on social media and email usage, we will be
able to determine which strategy is most successful and efficient for our target market.
With a large age range among our customers, specifying where customers want to see a
business’s marketing can ideally benefit Ambiance and other small businesses as well.

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 Introduction

Social media marketing is the latest "buzz" in marketing. India is probably among the
first proponents of social media marketing. These days, the organizational cause has
replaced the social cause as companies seek to engage with their audience via the online
platforms. Online presence is a must for businesses today. Apart from a basic website;
consumers looks for a blog, a Facebook page, shopping cart, e-brochures, etc. 92% of
micro and small businesses agree that social media is an effective marketing technology
tool. They are evenly split on the effectiveness of social media for attracting new
customers and engaging existing customers. (e-Strategy Trends).
Definitions of Micro, Small & Medium Enterprises In accordance with the provision of
Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro,
Small and Medium Enterprises (MSME) are classified in two Classes :
1. Manufacturing Enterprises :- The enterprises engaged in the manufacture or
production of goods pertaining to any industry specified in the first schedule to the
industries (Development and regulation) Act, 1951) or employing plant and machinery in
the process of value addition to the final product having a distinct name or character or
use. The Manufacturing Enterprise are defined in terms of investment in Plant &
Machinery.
2. Service Enterprises :- The enterprises engaged in providing or rendering of services
and are defined in terms of investment in equipment. The limit for investment in plant
and machinery / equipment for manufacturing / service enterprises
Manufacturing Sector

Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed twenty five lakh rupees

Small Enterprises More than twenty five lakh rupees but does not exceed five
crore rupees

Medium Enterprises More than five crore rupees but does not exceed ten crore
rupees

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Service Sector

Enterprises Investment in equipments

Micro Enterprises Does not exceed ten lakh rupees:

Small Enterprises More than ten lakh rupees but does not exceed two crore
rupees

Medium Enterprises More than two crore rupees but does not exceed five core
rupees

Types of Micro and Small Home-based businesses A home-based business is an

enterprise in which all or most of the work is performed at or from the owner-operator's
private residence. Home-based business is one of the fastest growing sectors in the
economy. Common businesses that are operated from home are trade businesses, where
general administrative tasks are done at home, with work being completed at various
sites. Examples include painters, plumbers and electricians.
Many micro-businesses are family operated. Family members will generally have
ownership of the business and play a significant role in its day-to-day operations. Many
publicly-listed companies and franchises started from the humble beginnings of a
familyoperated business. Some common examples of family businesses include cake
shops, restaurants, café, florists, designers, photography and so on. Independent
contractors run their own business, and hire out their time to businesses and other
organisations as a service. Their entitlements and obligations differ from an employee in
many ways. They own our own business and generally will be able to negotiate fees and
working arrangements. Some examples of independent contractors are builders, caterers
and personal trainers.

Any business that aims for development is linked to five basic marketing stages:
1. Market Research
2. Development of the product
3. Distribution

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4. Pricing
5. Promotion.
On the basis of these five stages of marketing ,in this paper we will be trying to discuss
various issues related to marketing strategy.

Social Media
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Social media are computer-mediated technologies that facilitate the creation and sharing
of information, ideas, career interests and other forms of expression via virtual
communities and networks. The variety of stand-alone and built-in social media services
currently available introduces challenges of definition; however, there are some common
features
1. Social media are interactive Web 2.0 Internet-based applications.
2. User-generated content, such as text posts or comments, digital photos or videos, and
data generated through all online interactions, are the lifeblood of social media.
3. Users create service-specific profiles for the website or app that are designed and
maintained by the social media organization.
4. Social media facilitate the development of online social networks by connecting a
user's profile with those of other individuals or groups.
Some of the most popular social media websites are Baidu Tieba, Facebook (and its
associated Facebook Messenger), Gab, Google+, Instagram, LinkedIn, Pinterest, Reddit,
Snapchat, Tumblr, Twitter, Viber, VK, WeChat, Weibo, WhatsApp, Wikia, and
YouTube. These social media websites have more than 100,000,000 registered users.

 Social Media and Small Businesses

Social Media Is Changing the Traditional methods of Presence. The traditional techniques
of marketing using print and electronic media along with Internet marketing and lead
generation were used to drive traffic to a business and its website. As search engine
algorithms evolve, website owners have to stay on their toes to make sure their website is
constantly updated with relevant and current information to prevent being devalued in
search results. Today, social media like, Facebook pages, Twitter accounts, and YouTube
channels are being seen as sites in their own right to mark the presence. Social Media
Allows Businesses to Crowd-source Ideas
Before you launch a new product or service, one would like to have some ideas about
what people think about it. So by engaging with prospects and customers via social
media, one can actually ask the fans and followers what colors they prefer or what types
of features they want. Thus one can involve consumers in valuable free market research,
by asking their opinions and can help establish credibility by showing their opinions
matter. After seeing their ideas becoming a reality, business has more than likely just
increased their customer base. Social Media Allows to Keep An Eye On Competition.
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 Businesses are changing marketing strategies based on information they find in social
media feeds from their competitors. By keeping an eye on competitors, their strengths
and weaknesses can determine their marketing efforts. This gathered information helps to
implement things that might be needed to improve such as social media campaigns,
contests, giveaways or types of content the followers may be responding to the most.
Social Media Allows Business to Be More Transparent.

How Much are Small Businesses Spending on Digital Marketing?

It can be difficult to establish a digital marketing budget. This is because most companies
will not set a budget until they are sufficiently large to afford it. The advertising budget is
competing with other expenses once that happens. Every dollar must be justified.

This answer depends on the business size, industry, revenue, and much more. So how do
you think about how much you should spend and the potential return?

The truth is that most customers make their budgets on the basis of their own subjective
assessments of marketing value, frequently with little confidence. There are three easy
strategies to create a data-based budget among small business growth hacks.

Cost of Advertising
What is it going to cost you to buy a client? Responding to this simple question will give a good
standard of information as to whether advertising is costly or comparatively cheap. You can also

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get an indication of the number of consumers you can expect on the basis of your expenses. Now,
most companies cannot answer this particular issue without spending money.

We recommend using Google Search advertisements as an advertising proxy for the average cost
per click (CPC). You can do that by searching the average CPC for your most focused search
terms that will most likely be converted via the Google Keyword Planners. For instance, if you
are running a rhinoplasty clinic, “rhinoplasty clinic near me” or “top rhinoplasty doctor” maybe
your most targeted keywords.

A low CPC of a few dollars suggests that you can receive more from a small investment in
certain keywords. But a high $10+ CPC suggests that you have to spend more on getting a new
consumer.

Affiliate Marketing
Affiliate marketing is the process of advertising another company’s products on your
page and earning a commission for every sale made. It is based on a revenue-sharing
model. Amazon is perhaps the biggest example of the affiliate marketing model out there.
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If you’re a product owner, you get to target the traffic on another party’s web page. The
only downside is that you have the pay a commission to this other party for every sale
made through their website.
On the other hand, if you run a blog or content-only website with high traffic volume, you
could tie up with merchants offering affiliate marketing programs and create an extra
source of income for yourself.

Research Methodology

1. Title of the study

“ A study on impact of social media on Small and Medium enterprises”

The study is purely based on secondary source of data collection. The details are
collected from the websites books and journals.

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 Objectives of the Study

a. To study the concept of SMEs

b. To study the concept of Social Media, Cost of Advertising and Affiliate Marketing.
c. To Study the impact of Social media in marketing the goods.

d. To find the suggestions for the negative impact of social media on SMEs
 Limitations of the Study

The limitations relevant to the research include:

1. Because a variety of companies exist, it was unfeasible for the scope of this research to
cover every industry.
2. The limitations of the collected data make it difficult to make generalizations across
industries, companies, and locations.
3. The research lacks a comparison between the practices of a company recognized for
using social media marketing successfully and a company using it less successfully.

Impact of Social Media

 The Positive & Negative Impact of Digital Media on Business

Modern media is no longer confined to a television or radio show, newspaper or

advertisement. Instead, today's media -- from text to video and sound -- can be saved and
shared electronically, using everything from desktop computers to small mobile devices.
This electronic dissemination of media has had a powerful impact on the way people
communicate for personal reasons, school and even business. However, digital media has
not had only a positive impact on business.

 Positive Effects

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1. Faster Information
Thanks to digital media, companies can get their information out to the public faster than
ever. Instead of printing inserts and waiting for the Sunday paper to announce their sales,
companies now can let the world know about an exciting promotion through email, social
networking, their websites and Internet ads. However, digital media can spread bad
information about a business just as fast as it can spread good.

2. Greater Reach
Digital media means businesses can reach more customers than ever before. A simple
promotion featuring a giveaway or a freebie can earn a business hundreds or thousands of
Facebook fans and email and text message subscribers, meaning that the business can
send a message to these consumers with just a touch of a button.

3. Technology
Using digital media means using new technology both to create and support the media.
New technology can be an asset for your business. When you adopt smartphones and
laptops in order to use digital media, you also can positively influence other areas of your
business.

4. Options
Thanks to digital media, businesses now have many more options that they can choose
from when seeking to get word out about their businesses. Instead of choosing among a
TV or radio commercial or a print advertisement, they can now create media that is a
combination of audio, visual, text and interactive media.

 Negative Effects

1. Burden of the Marketing Shift

Business marketing now involves personal engagement with customers; campaigns that
do not invite consumer interaction risk being unsuccessful. While social media-based
marketing can be used effectively, businesses that are used to providing a one-sided sell
must now learn how to develop a relationships with people buying their product. Instead
of releasing statements about product lines, companies have to develop stories that
promote the culture of the product instead of simply outlining its particular benefits.
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2. Increased Customer Power
In the days before social media, negative company experiences might stay within an
individual's circle of friends; now, stories of bad customer service and disappointing
products can run quickly through social media networks. It has become more difficult for
companies to contain its negative publicity. The upside is that as much as bad publicity
spreads more quickly, good publicity spreads more quickly as well.

3. Tracking Negative or Misleading Statements

Social media is an enormous conversation everyone is invited to join; with all that talk,
it's difficult for businesses to track statements about their brand that are negative or even
defamatory. Companies have the added burden of tracking statements and responding
when necessary; the response, however, might be of limited effect if the negative
statement has already made the social media rounds.

4. Accidental Release of Confidential Information

Individuals with inside knowledge of the company might inadvertently blurt out
confidential information, damaging the company's competitive advantage. Before social
media, a letter sent to the wrong address or even an email that ended up in the wrong
inbox could be retrieved and the information kept under wraps. In the world of social
media, the sheer numbers mean that once confidential information is out, it's out.
 The Negative Effect of Social Media on Society and Individuals

1. A False Sense of Connection

According to Cornell University's Steven Strogatz, social media sites can make it more
difficult for us to distinguish between the meaningful relationships we foster in the real
world, and the numerous casual relationships formed through social media. By focusing
so much of our time and psychic energy on these less meaningful relationships, our most
important connections, he fears, will weaken.

2. Cyber-bullying
The immediacy provided by social media is available to predators as well as friends. Kids
especially are vulnerable to the practice of cyber-bullying in which the perpetrators,
anonymously or even posing as people their victims trust, terrorize individuals in front of
their peers. The devastation of these online attacks can leave deep mental scars. In several
well-publicized cases, victims have even been driven to suicide. The anonymity afforded
online can bring out dark impulses that might otherwise be suppressed. Cyber-bullying
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has spread widely among youth, with 42% reporting that they have been victims,
according to a 2010 CBS News report.

3. Decreased Productivity
While many businesses use social networking sites to find and communicate with clients,
the sites can also prove a great distraction to employees who may show more interest in
what their friends are posting than in their work tasks. Wired.com posted two studies
which demonstrated damage to productivity caused by social networking: Nucleus
Research reported that Facebook shaves 1.5% off office productivity while Morse
claimed that British companies lost 2.2 billion a year to the social phenomenon. New
technology products have become available that allow social networks to be blocked, but
their effectiveness remains spotty.

4. Privacy
Social networking sites encourage people to be more public about their personal lives.
Because intimate details of our lives can be posted so easily, users are prone to bypass the
filters they might normally employ when talking about their private lives. What's more,
the things they post remain available indefinitely. While at one moment a photo of friends
doing shots at a party may seem harmless, the image may appear less attractive in the
context of an employer doing a background check.

Advantages & Disadvantages of Online Marketing

 Advantages

1. Global reach: No geographical bar for E-Marketing. Targeted emails pave the way.
2. Lower Cost: Cost incurred in designing, executing, testing, sending and receiving an
email is up to 78% less for a run of 5000 over paper based direct mail version.
3. Interactive: A business can innovatively initiate campaigns using graphics, video,
music, quiz, game.
4. Personalized: Emails enable to personalize and greet every person which is to be
targeted. It helps in creating a special bond with the prospects.

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5. Faster Response: The business or a company get the response through e-mail within
three days, with maximum responses on day one itself, while a direct mail campaign
would take minimum ten to twelve days to generate any response.
6. Simplest: Executing an e-mail campaign is simple and can be done sitting at home
without any extensive resources.
7. Capture and analyze return on investment of marketing activities.

 Disadvantages

1. Low penetration of computer technology.

2. Potential for deception.
3. Dependability on technology.
4. Maintenance cost due to constantly evolving environment.
5. Higher transparency of pricing and increased price competition.

Conclusion

We hope this introduction to online marketing guide has managed to convince you how
useful and how important online marketing can be. In addition to giving you great control
over your marketing campaigns, it is incredibly easy to access. You can literally get
started sitting on your living room couch with coffee in one hand and laptop in the other!
Social media marketing is important because it aligns with the way consumers make
purchasing decisions. Study indicates that increasing numbers of consumers are using
internet services and research to carry out preliminary product and price research before
making final decisions.

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 References

• https://daninstitute.com/blog/impact-of-digital-marketing-on-small-businesses/
• https://www.google.com
• https://www.wikipedia.com
• http://forbesindia.com/blog/technology/small-businesses-in-india-going-social-toboost-
growth/#ixzz30SDR2Av4
• http://digitalcommons.kennesaw.edu/amj/vol2/iss1/

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