Adoption of Digital Marketing in Strengthening
Micro, Small and Medium Enterprises in Mataram
City during The Covid 19 Pandemic
Baiq Dewi Lita Andiana*
Accounting
Universitas Islam Al-Azhar
Mataram, Indonesia
dewilita123@gmail.com
Laili Hurriati
Economic Development
Universitas Islam Al-Azhar
Mataram, Indonesia
lailihurriati.86@gmail.com
F Fathurrahman
Accounting
Universitas Islam Al-Azhar
Mataram, Indonesia
fathurrahmanmaksi@gmail.com
Abstract— Micro, Small, and Medium Enterprises (MSMEs)
are the backbone of national economic growth because they
cover nearly 90% of business actors in Indonesia. Therefore, the
government has launched various strengthening schemes for
MSMEs in the form of capital strengthening programs, business
management programs, and technical support. The era of the
industrial revolution 4.0 with the acceleration and development
of the flow of technology and information has required MSME's
players to adapt to these developments in managing their
business. The concept of Less Contact Economy (LCE) is a form
of adaptation to order new normal life which in the current
context is living side by side with the covid-19 pandemic virus.
Concerning economic recovery efforts, economic actors
including MSME's are required to remain active, creative,
innovative, and productive even though they coexist with a
deadly virus. Thus, MSMEs in running their businesses need the
use of information technology during the Covid 19 pandemic.
One of the most widely used digital technology platforms is
digital marketing. Digital marketing is a marketing system that
uses digital media to create and promote marketing messages.
The purpose of this study is to describe the impact of adopting
digital modeling to strengthen MSME's players in Mataram
City. This study used a qualitative method, using a triangulation
model. Data collection techniques used observation methods and
in-depth interviews with MSME's actors who are actively
registered in the Cooperative, Industry, and Trade Office
Mataram. The result suggests that the adoption of digital
marketing has increased during the COVID-19 pandemic.
Adoption of digital marketing makes it easier for MSME players
to provide information and interact directly with consumers,
expand the market, increase awareness, and cost of the market
of the product decreases significantly for MSME players during
the Covid-19 pandemic.
Keywords— Digital Marketing, MSME’s, COVID-19
I. INTRODUCTION
Micro, Small, and Medium Enterprises (MSMEs) are the
backbone of national economic growth and have an important
role in the development and growth of the Indonesian
economy. The existence of the MSMEs sector assists in
reducing the unemployment rate as it captive unabsorbed
workforce from the formal sector. The growth of MSMEs has
become a source of growth for job opportunities and income
rise. Having this unique capacity made MSMEs have a
strategic role in the government's efforts to overcome poverty
and unemployment problems.
Apart from being one of the new employment
opportunities, MSMEs also played an important role in
driving the rate of economic growth after the monetary crisis
when large companies experienced stagnation and even
stopped their activities. MSMEs sector proved to be more
resilient in dealing with this crisis. Given the experiences that
Indonesia has faced during the crisis, it would not be an
exaggeration if the development of the private sector is
focused on MSMEs. Moreover, this business unit is often
neglected merely because of the small scale in production and
has not been able to compete with other larger business units.
Therefore, the government and related parties need to
strengthen and accelerate the development of MSMEs through
several schemes/programs such as capital strengthening
programs, business management programs, licensing
programs, and also technical support over training and
capacity building for MSMEs.
Facing the current digitalization era, almost all aspects of
development are affected. It opens new opportunities and
simultaneously conveys constraints. Thus, MSMEs are
required to be more adaptive to technological developments in
the industrial era 4.0 which offers many business opportunities
which include online business transactions and online
business management. This means that MSMEs need to adopt
and integrate their business online. In addition, MSMEs must
be able to strengthen in many ways within their own company,
such as improving management skills, leadership
entrepreneurs, capital management, marketing and
bookkeeping skills, product development, and innovation the
use of technology in running its business. The reluctance in
adapting to this change lead to stagnant business or even
ceased the business as they are defeated by competitors who
are more adaptive to technological developments.
In the last several months, the world has suffered from the
Covid-19 pandemic that affects most countries in the world
including Indonesia. Countries impacted by the covid-19
outbreak have experienced a huge decline in their economic
growth. Based on the OECD report (2020), the covid-19
pandemic that occurred globally has had a severe impact on
the sustainability of SMEs both from the supply side and from
the demand side. From the supply side, MSMEs are forced to
temporarily close their businesses and reduce the number of
their employees. Meanwhile, from the supply side, it is
influenced by the decline in the level of consumption and
public expenditure due to the Covid-19 pandemic. Some
special sectors such as the tourism, arts and entertainment, and
Advances in Social Science, Education and Humanities Research, volume 556
Proceedings of the 2nd Annual Conference on Education and Social Science (ACCESS 2020)
Copyright © 2021 The Authors. Published by Atlantis Press SARL.
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