Introduction

According to Jutla et al. (2002) small and medium sized enterprises (SMEs) are estimated to account for 80 per cent of global economic growth. Could it be that many of these SMEs have got their online strategies completely wrong? May it even be the case that many SMEs simply do not have an online strategy?

Ten years on from the popularisation of the internet, it is surprising that the majority of SMEs don't seem to understand online marketing and many fail to make the most of marketing opportunities that exist online (Fisher 2007; Beckinsale & M. Levy 2004; Tetteh & Burn 2001).

New Age Media reported in November 2007 that within the UK over 96% of estate agents, IT firms and recruitment consultants had a website. However, rather than simply measuring how many companies have a website, the quality and strategies behind these websites need to be analysed. A significant number of these websites are little more than brochureware (M. Levy & Powell 2005) and only a small number have a predetermined online marketing strategy.

Although it is disputed whether the internet levels the playing field between SMEs and large multinationals (Haig 2002; Griffith & Gray 2002; Shu-Ching Chan & Jin-Ying Lin 2007), it certainly is the case that the internet brings significant new marketing opportunities (Kim, Nam, & Stimpert 2004; Tiu Wright, Ul-Haq, & Oktemgil 2006). Some SMEs use these opportunities to dramatic effect (Loveday & Niehaus 2007) whereas others neglect the opportunities presented to them with an online presence (Daniel, Wilson, & Myers 2002).

John Tuggle, a guitar teacher from Georgia, USA is an example of someone who has used the marketing channels available through the internet to great effect (McGee 2008). Tuggle of LearningGuitarNow.com, embraced the opportunities presented to him by the internet and through blogging, podcasting and creating YouTube videos, has been able to generate new business opportunities and now gives live guitar lessons via Skype. Unfortunately, Tuggle's success story is an exception rather than the rule, with the majority of SMEs completely oblivious to the opportunities available to them through marketing online (Daniel, Wilson, & Myers 2002).

Feedback

This is an excerpt from a research project proposal investigating SME strategy online. I'd like to know what you think about this article and have your input on the subject area. Please leave you comments below.

Geoff August 08, 2008 Votes: +3	Great article. May i ask where the sources are from? I mean, clearly they are cited, but, if they are listed on the web. I think a lot of people could use this article. report abuse vote down vote up
KSD February 04, 2010 Votes: +0	any more details & case studeis on SME's oversaes in USA. Keen to learn more. Thanks report abuse vote down vote up