Digital Marketing and Sales Performance of Agribusinesses under Tanzania Horticultural Association: The Case of Small and Medium-Sized Enterprises in Arusha, Tanzania

Abstract

To be digital, one must consider more than one tool or media. As a result, no firm organization can escape using digital technology for data collecting, performance improvement, producing high-quality items, or marketing, among other things. The purpose of this study was to assess the effectiveness of digital marketing as a sales boost among small and medium-sized firms registered with TAHA in Arusha, Tanzania. The specific objectives were to determine the effectiveness of YouTube, Facebook, SMS and MMS in enhancing sales marketing performance of SMEs in Arusha, Tanzania. The study was informed by both social exchange theory and the diffusion of innovation theory. A mixed-methods research strategy was utilized in this study, which included 705 Tanzania Horticultural Association (TAHA) members. 255 respondents and a simple random sampling procedure were used to establish the sample size. The research used primary information collected via the use of semi-structured questionnaires. Inferential and descriptive statistics were used to analyse the data in SPSS version 26.0. The results of the study showed that the variables YouTube, Facebook, Small Message Service, and Multiple Message Service had a coefficient of determination (R2) of 0.629, which indicated that these variables were able to explain 62.9% of the sales marketing performance of SMEs in Arusha, Tanzania. In particular, the study found a positive and significant correlation between YouTube effectiveness and sales performance (β=0.184, p=0.020); a positive but not statistically significant correlation between Facebook and sales marketing performance (β =0.047, p=0.597); a positive and significant correlation between SMS and sales marketing performance (β=0.442, p=0.000); and a positive and significant correlation between MMS and sales performance. The research comes to the overall conclusion that digital marketing is an effective strategy for facilitating access to company information, particularly for individuals working with agribusinesses. The study thus recommends that there is a need of trying to streamline the usage of MMS and Facebook since it was seen to be insignificantly used even if it is very strong tool for advertisement. Keywords: Digital Marketing, Agribusinesses in Tanzania, Sales Performance, Horticultural Association, Small and Medium-Sized Enterprises in Arusha.