With the increasing levels of globalization, business organizations have faced significant competition in dynamic business environments. In this regard, most businesses have developed new technologies to improve their business operations and strategies, hence achieving competitive advantage. However, the use of digital technologies in marketing is debatable. Some social media networks, such as Twitter, Facebook, and Instagram have become important sites to create awareness for new products and services, communicate with existing and potential consumers as well as collaborate with a wide range of stakeholders to improve business performance. It is important to investigate the impact of digital marketing on carrying out the business in order to encourage organizations to take advantage of such new opportunities to achieve competitive advantage in the current competitive world.

The idea of investigating the impact of digital marketing on business performance has been motivated by various studies that have shown gaps in this research topic. For instance, Tsiotsou and Ratten (2010) have suggested that there is a need for future research to investigate the use of new technologies in marketing. These researchers have identified a huge gap in the literature focusing on the impact of e-marketing on business performance. Therefore, there is need for researchers to bridge this gap through research to help businesses understand the role of digital technologies in their marketing efforts.

Dehkordi (2012) also found out that business organization should take advantage of digital technologies in their marketing approaches or face the risk of being thrown out of business by competitors. Alford (2010) also carried out research in Bournemouth, England, and found out that rural businesses can benefit from online marketing because it enables them to compete effectively through attraction and retention of customers.

Although these studies and many others have engaged deep in research about the topic, there are still gaps to address. For instance, an investigation regarding business reports indicates that several businesses continue to fail in their marketing efforts despite the use of new technologies. It is clear that traditional marketing could still have a huge role to play in enhancing business performance. However, many people still believe that if we use digital technologies effectively, businesses could improve their performances significantly.

Regarding the above information, this research will investigate the effectiveness of different digital technologies including the internet in enhancing improved business performance. To make the study more effective, the researcher will examine the changing needs of consumers as well as how digital marketing can be used to address those needs. If the digital marketing is used appropriately to meet the needs of consumers, it will be effective in attracting and retaining customers, hence achieving higher business performance.

This study is important for business firms and individuals because it enables them to understand how they can use digital technologies to achieve a full advantage in terms of business performance and competitive advantage. It entails the investigation of the effects that digital marketing has on business performance. Researchers have found out that digital or e-marketing has significant benefits to business organizations including improving business performance and enhancing competitive advantage.

However, gaps still exist in terms of the impact of digital marketing on business performance because most businesses still fail despite adopting digital marketing strategies. After the study is completed, companies will understand the benefits and costs of using digital marketing; hence, they could make good decisions regarding their marketing approaches. The research questions that will be addressed in the study include:

  • What is the impact of digital marketing on business performance?
  • How can business adopt digital marketing to achieve competitive advantage?