Brand capabilities in digital marketing: The key to enhancing marketing performance

Abstract

This study presents a structural equation model to describe the interrelationships between Digital Marketing, Brand Articulating Capability, Brand Resonance Capability, and Marketing Performance. It employs a cross-sectional study to examine the relationships among those research variables. This study utilized a survey methodology, which involved gathering data from 292 participants who were representatives of small and medium enterprises (SMEs) in South Sulawesi, Indonesia. Out of the 292 questionnaires distributed, 270 were considered appropriate for analysis. Four hypotheses were formulated and examined by employing structural equation modeling (SEM) analysis, which revealed several noteworthy findings. The results suggest that SMEs with a stronger focus on digital marketing are more likely to enhance their capacity to articulate their brand, leading to improved marketing effectiveness. In contrast, those with a higher level of Digital Marketing tend to acquire brand resonance capabilities. The findings of this study highlight the significance of the Brand Articulating Capability and Brand Resonance factors in improving the impact of Digital Marketing on Marketing Performance, hence facilitating the growth of SMEs.

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