How covid-19 has impacted the marketing

policy of SMEs

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Aim and Objectives
This study aims to examine the impact of the recent COVID-19 pandemic on the marketing
policy of small and medium enterprises (SMEs) in the UK. This study also aims to find out if
there has been a change in the perception of SMEs towards promoting their products or services
based on the impact of Covid-19 on their business operations (Sharma, 2020). The objectives
are:

1. To determine how SMEs have adapted their marketing policies in response to COVID-
19.
2. To identify the challenges faced by SMEs during the COVID-19 pandemic, as well as
their strategies for overcoming these challenges.

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Background
SMEs are businesses that have fewer than 250 employees, and they make up 99% of all
companies in the UK (UK Government). These companies are important because they employ
over 70% of people in the country. Covid-19 has been a major disruption for the small and
medium industries (Pathrose and Madhavan, 2022). Many of these businesses are struggling to
keep up with their revenue goals, and many others have simply shut down as a result of the virus.
Covid-19 is a pandemic that was first reported in the UK in March 2019 and has since spread to
other countries around the world. The marketing policy of SMEs is also influenced by the
introduction of covid-19 (Juergensen et al., 2020). This is especially true for SMEs that are
located in the vicinity of affected cities, as those SMEs may experience a decline in sales due to
increased travel restrictions and restrictions on public gatherings. However, there are other
factors that influence the marketing policy of SMEs, such as new marketing channels or changes
in consumer preferences.

In order to understand how Covid-19 has impacted SMEs' marketing policies, it's first necessary
to understand what marketing is all about. Marketing is defined as "the process by which goods
or services are communicated." It involves three main steps: identifying potential customers;
developing an effective message for those customers; getting that message out (Grönroos, 2004).
The overall context of this research study refers to analyzing the market situation & performance
of SMEs during Covid-19. The focus is on how SMEs are impacted by this outbreak and how
they are responding to it. The findings will be used to provide recommendations on how SMEs
can improve their marketing strategies in order to survive this crisis period.

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Literature review
The economy has been struggling since the beginning of 2019 when Covid-19 was first
diagnosed in humans. The United States National Bureau of Economic Research (NBER)
officially declared that the recession ended in June of 2019, but it's clear that many businesses
still face financial hardships today (Fernandes, 2020). One study found that approximately two-
thirds of companies were still operating at a loss. Many small businesses have suffered greatly
during this period; for example, some have had to shut down operations entirely or lay off
employees due to financial difficulties. With their limited resources, SMEs may be less able to
cope with economic downturns or other problems that can result from an outbreak of a deadly
virus like COVID-19 (Donthu and Gustafsson, 2020). For example, in some countries such as
Spain where tourism accounts for 25% of GDP, small businesses have been particularly hard hit
because they rely heavily on this sector (Mulder, 2020).

In addition to these business challenges, SMEs must also contend with changes brought about by
Covid-19 itself. Small businesses are often understaffed and have difficulty keeping up with new
regulations and requirements; one study found that over half of SMEs surveyed said they used
less than half of their employees' time due to illness or other factors. Additionally, many small
businesses cannot afford proper insurance coverage for employees who are suffering from illness
during the period (Rashid and Ratten, 2021).

The impact of COVID-19 on marketing policies has been well documented. In a study of the
effects of COVID-19 on small and medium-sized enterprises (SMEs) in the UK, it was found
that the virus had a significant impact on the marketing strategy of these businesses (Juergensen
et al., 2020). The most obvious is that it has made it more difficult for SMEs to find new
customers, as many people are still afraid of public places, or they have other priorities right
now. Other impacts include making it harder for SMEs to reach their existing customers, because
many people are cutting back on spending and using alternative means of communication like
social media instead of calling businesses directly. Many businesses are using social media
platforms like Twitter and Instagram as an alternative form of advertising. Businesses are also
using online stores like Amazon as well as brick-and-mortar stores like Target or Walmart as
additional places where they can sell their products or services. SMEs also have to deal with

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higher costs due to increased regulations regarding food safety and other factors that affect their
business operations, including increased labor costs due to people being unable to work because
they're sick or need time off from work (Rashid, and Ratten, 2021)

The UK government has been taking steps to help small businesses cope with the effects of
Covid-19. One of these steps has been an increase in spending on public services such as
schools, hospitals and care services, which means that there is less money available for business
support schemes. The government has also introduced legislation that allows companies to make
payments in instalments instead of at once, which may have helped SMEs by increasing their
cash flow while they were waiting for payments from customers or suppliers (Humphries et al.,
2020).

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Research methodology
Research philosophy

The research philosophy is positivist. It will use a case study method, which means that It will
collect data from one or more cases, and then analyse them to form generalizations about the
phenomenon under study (Alharahsheh and Pius, 2020). The research philosophy will be
informed by critical research. Critical research is primarily concerned with understanding human
behaviour, values, practices and beliefs. Critical research focuses on understanding why people
behave the way they do and can be used for both quantitative and qualitative studies.

Research approach

It will use a case study approach with an inductive approach to data collection and analysis. This
means that It will begin with a general idea of how the results will look based on previous
research into how marketing policies have been impacted by the colloquial pandemic, but It will
also allow room to explore new ideas as they arise during the data collection process (Azungah,
2018). The research approach includes developing an interview guide, conducting interviews
with small business owners, analysing transcripts from these interviews, and writing up the
findings in an academic paper.

Research method

A combination of quantitative and qualitative research methods has been used to understand the
effect of COVID-19 on the marketing policy of SMEs (Gelo et al., 2008). The researchers
examined a survey that was conducted among SME owners/managers in order to assist them to
gain deeper insights into the COVID-19 effect and its impact on their marketing strategies. In
addition, interviews have also been conducted with several industry experts from various
countries involved in the SME sector to understand how they are adapting to the challenges
posed by COVID-19

Sample size

The sample size of the study is 120 small and medium enterprises (SMEs) in the United
Kingdom. The sample was selected using a stratified random sampling method with four strata:

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1) industry, 2) location (urban, rural), 3) size (small and medium), and 4) turnover. The stratified
random sampling method was used to ensure that the distribution of SMEs in each stratum was
representative of the population (Etikan and Bala, 2017).

Data source

This research will be conducted by using secondary data and primary data (Hox and Boeije,
2005). The secondary data is collected from websites, books, journals and magazines. The
primary data is collected by conducting interviews with the SME managers who have been
affected by covid-19. The research will also be conducted using a survey. The target population
for the research is all SMEs in the UK. The sample of SMEs will be selected randomly from the
list of registered businesses in the UK.

Resources

The following resources will be used for conducting the research:

- A survey questionnaire that would be distributed to all businesses in the UK

- An interview with an expert in marketing and advertising

- A content analysis of existing marketing materials and policies

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Research ethics
The research focused on ethical considerations associated with market research, as it was
important to ensure that this study was not only useful but also ethical. Ethical considerations
included ensuring that respondents were aware of the purpose of the research, that they
understood what they were consenting to, and that any personal information collected would be
kept confidential (Lacey et al., 2015).

The potential ethical implications associated with this research include the following:

-The data collected may be sensitive and private, and therefore should be treated with
care and caution.

-The research is likely to cause emotional distress and anxiety for the participants.

-The data collected may be used by a third party for commercial gain.

It is important to note that ethics are always considered during our research projects. We take
great care to ensure that our research does not cause any harm to those we interview or study,
and we also make sure that all participants are given information about their rights as well as
what they can expect from us as researchers (Langlois, and Lapointe, 2010).

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References
Alharahsheh, H.H. and Pius, A., 2020. A review of key paradigms: Positivism VS
interpretivism. Global Academic Journal of Humanities and Social Sciences, 2(3), pp.39-43.

Azungah, T., 2018. Qualitative research: deductive and inductive approaches to data
analysis. Qualitative research journal.

Donthu, N. and Gustafsson, A., 2020. Effects of COVID-19 on business and research. Journal of
business research, 117, pp.284-289.

Etikan, I. and Bala, K., 2017. Sampling and sampling methods. Biometrics & Biostatistics
International Journal, 5(6), p.00149.

Fernandes, N., 2020. Economic effects of coronavirus outbreak (COVID-19) on the world
economy.

Gelo, O., Braakmann, D. and Benetka, G., 2008. Quantitative and qualitative research: Beyond
the debate. Integrative psychological and behavioral science, 42(3), pp.266-290.

Grönroos, C., 2004. The relationship marketing process: communication, interaction, dialogue,
value. Journal of business & industrial marketing.

Hox, J.J. and Boeije, H.R., 2005. Data collection, primary versus secondary.

Humphries, J.E., Neilson, C. and Ulyssea, G., 2020. The evolving impacts of COVID-19 on
small businesses since the CARES Act.

Juergensen, J., Guimón, J. and Narula, R., 2020. European SMEs amidst the COVID-19 crisis:
assessing impact and policy responses. Journal of Industrial and Business Economics, 47(3),
pp.499-510.

Lacey, J., Howden, S.M., Cvitanovic, C. and Dowd, A.M., 2015. Informed adaptation: ethical
considerations for adaptation researchers and decision-makers. Global Environmental
Change, 32, pp.200-210.

Langlois, L. and Lapointe, C., 2010. Can ethics be learned? Results from a three‐year action‐
research project. Journal of Educational Administration.
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Mulder, N., 2020. The impact of the COVID-19 pandemic on the tourism sector in Latin
America and the Caribbean, and options for a sustainable and resilient recovery.

Pathrose, E. and Madhavan, D., 2022. Online Leadership in Small and Medium Enterprises
(SMEs) During the COVID-19 Pandemic: Challenges and Opportunities. ECS Transactions,
107(1), pp.4173-4181.

Rashid, S. and Ratten, V., 2021. Entrepreneurial ecosystems during COVID-19: the survival of
small businesses using dynamic capabilities. World Journal of Entrepreneurship, Management
and Sustainable Development.

Sharma, N., 2020. COVID-19: Challenges and Opportunities for Small and Medium Enterprises
(SMEs). SSRN Electronic Journal,.

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