Utilization of Digital Marketing for MSME Players as Value Creation for Customers during the COVID-19 Pandemic

Abstract

The Covid-19 pandemic since the beginning of 2020 has changed all aspects of people's lives. The community must start a new life adaptation where the implementation of health protocols is not only mandatory but also a lifestyle trend. One of the new habits that many people are starting to implement is online shopping. This is an opportunity for MSMEs in Indonesia to be able to take this opportunity so that they can develop and sustain their business in the midst of the COVID-19 pandemic. Therefore, it is necessary for MSME players to be introduced to Digital Marketing. The goal of this study is to introduce the deployment of small and medium-sized enterprises in the MSME sector during the COVID-19 pandemic. This review takes a qualitative approach, using a literature review, to examine and solve research content issues. The results of the research show that digital marketing is very helpful for MSME players in Indonesia because with the various benefits that digital marketing has, it can increase the sales turnover of MSME players. However, digital marketing has not been widely applied to the MSME sector in Indonesia due to several factors, including not yet technological literacy, inadequate supporting facilities to Indonesia's geographic conditions which become obstacles. Therefore, researchers recommend a few simple things how to start a business with digital marketing, such as starting to determine marketing goals, marketing targets, determining the digital platform to use; determine the budget, and create content that can attract consumer attention. In this study, the authors also describe the added value obtained by customers who use digital marketing.

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Utilization of Digital Marketing for MSME
Players as Value Creation for Customers
during the COVID-19 Pandemic
Finny Redjeki1, Azhar Affandi2
1Universitas Sangga Buana, Indonesia
2Universitas Pasundan, Indonesia
Email: finnyredjeki@usbypkp.ac.id
Abstract
The Covid-19 pandemic since the beginning of 2020 has changed all aspects of people's
lives. The community must start a new life adaptation where the implementation of health
protocols is not only mandatory but also a lifestyle trend. One of the new habits that many
people are starting to implement is online shopping. This is an opportunity for MSMEs in
Indonesia to be able to take this opportunity so that they can develop and sustain their
business in the midst of the COVID-19 pandemic. Therefore, it is necessary for MSME
players to be introduced to Digital Marketing. The goal of this study is to introduce the
deployment of small and medium-sized enterprises in the MSME sector during the COVID-
19 pandemic. This review takes a qualitative approach, using a literature review, to
examine and solve research content issues. The results of the research show that digital
marketing is very helpful for MSME players in Indonesia because with the various benefits
that digital marketing has, it can increase the sales turnover of MSME players. However,
digital marketing has not been widely applied to the MSME sector in Indonesia due to
several factors, including not yet technological literacy, inadequate supporting facilities to
Indonesia's geographic conditions which become obstacles. Therefore, researchers
recommend a few simple things how to start a business with digital marketing, such as
starting to determine marketing goals, marketing targets, determining the digital platform to
use; determine the budget, and create content that can attract consumer attention. In this
study, the authors also describe the added value obtained by customers who use digital
marketing.
Keywords: Digital Marketing, Pandemic, COVID-19, MSME, Customers.
—————————— ——————————
A. INTRODUCTION
The COVID-19 pandemic that originated in Wuhan China has spread almost
all over the world. Not more or less 200 countries including Indonesia. The impact of
the pandemic caused crises in various sectors, both in the health, education and
economic sectors (Buheji et al., 2020; Bahtiar & Saragih, 2020). In the health sector,
health services, both in hospitals and health services, are very overwhelmed in
accepting COVID-19 patients, so sometimes they have to build temporary hospitals
like the example in athletes' houses. In the field of education, the policy of learning
online without meeting face to face results in students not getting maximum
learning. In the economic sector the impact of COVID-19 is more pronounced, many
companies lay off and even lay off their employees because of decreased production,
many businesses have closed and or reduced sales (Ilpaj & Nurwati, 2020; Dewi,
2020; Sihaloho, 2020).

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One of the economic impacts of COVID-19 is on the micro, small and
medium-sized enterprises (SMEs) market. Small and medium-sized companies play
an important part in the Indonesian economy (Thaha, 2020; Pakpahan, 2020). The
Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM)
reported that in 2018, the number of MSMEs in Indonesia was around 64,194,057
units, with an absorption capacity of 116,978,631 total workforce. This figure is
equivalent to 99% of the total business units in Indonesia, with the percentage of
labor absorption in the economic sector equivalent to 97%. While the remaining 3
percent is divided into large industrial sectors (Koperasi, 2018). Armed with
preliminary research in April 2020, with a sample of MSMEs recorded at the
Ministry of Cooperatives and Small and Medium Enterprises, it was reported that
56% of MSMEs claimed to have decreased in sales turnover due to the Covid-19
pandemic, 22% experienced difficulties in obtaining financing/credit, 15%
experienced problems in the distribution of goods, and the remaining 4% reported
difficulties in obtaining raw materials.
The occurrence of the COVID-19 Pandemic has caused the government to
issue a policy of restrictions in terms of travel, activities or activities that invite
crowds. The policy known as Large-Scale Social Restrictions or PSBB causes
economic activities to slow down or even stop. The MSME sector which relies on
daily economic activities is certainly the most affected (Sugiri, 2020). Small traders
who rely on people's daily activities will experience a decrease in turnover because
no one spends their money. In the culinary field, many restaurant entrepreneurs
such as warteg businesses have closed their businesses because consumers do not eat
at their restaurants. Small entrepreneurs will also find it difficult to market and get
raw materials for production
The government has made a variety of attempts to ensure that Micro, Small
and Medium Businesses will endure this COVID-19 pandemic. Starting to provide
capital assistance in the MSME sector, providing credit relaxation and empowerment
to these MSMEs. One form of empowerment for MSMEs is introducing the concept
of digital marketing. According to Hardilawati (2020), the survival plan for small
and medium-sized businesses consists of e-commerce trading, internet marketing,
enhancing product quality and introducing facilities, as well as creating and
leveraging consumer marketing partnerships. Several previous studies have
revealed that in the aftermath of the COVID-19 pandemic, internet marketing has a
positive effect on the economy (Awali & Rohmah, 2020; Anjanningrum, 2020).
However, in implementing the concept of digital marketing for MSME business
actors, it is still constrained by human resources because as it is known, MSME
actors consist of educational backgrounds and in general they are low educated and
very blind to the development of information technology that is developing rapidly
(Anggara et al., 2019).
Digital marketing is the single most reliable marketing technique for
surviving the Covid-19 pandemic so that the decline in marketing performance does
not reach 100%. As the results of Yamin's research (2017) as well as the findings of

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Sidi & Yogatama (2019), showing that there is a significant effect on the use of digital
marketing on enhancing marketing efficiency. Even though during the Covid-19
pandemic, the impact of digital marketing was not really felt by SMEs because
people's purchasing power also decreased drastically as a result of the PSBB and
other policies.
Based on the description above, the authors obtained several problem
formulations, namely: how to make these MSME players survive in the COVID-19
pandemic situation that occurs; how the concept of digital marketing can be
implemented to MSME players in the midst of their limited educational background
and how to find the right method or strategy so that MSME players can understand
the concept of digital marketing well.
With this research, it is hoped that MSME players can implement digital
marketing by utilizing currently developing technology so that they can survive
amid the COVID-19 pandemic which until now is known to be over.
B. LITERATURE REVIEW
1. Digital Marketing
Nowadays the term digital marketing or digital marketing is one of those
terms that might make your business sound more 'sophisticated'. Popularly used in
the early 2000s, digital marketing has actually been around for a long time. If traced
further, he is even 100 years older (Kannan, 2017).
Guglielmo Marconi, the inventor of radio, is considered to be the person who
first made people think about digital marketing. In 1986, Marconi showed the public
how signals can be transmitted without cables. This is the origin of radio as we know
it today. The invention of radio certainly did not immediately lead to the emergence
of digital marketing. It took up to 10 years for radio technology to be widely
introduced to the public. And of course it didn't take long until people realized that
this new technology could be used as a means of marketing, aka marketing.
You must be surprised. Without smart phones, any application, even
Facebook and blog ads, doesn't exist yet, but people are already familiar with digital
marketing. From this it can be concluded that digital marketing was originally not
related to the internet at all. So, what exactly is digital marketing?
Digital marketing is a marketing or advertising operation of a brand or
product using digital media or the Internet. The goal of digital marketing is to reach
customers and future consumers rapidly. As we know, the embrace of technology
and the Internet in society is very broad, so it is no surprise that digital marketing
practices are the key option for businesses.
According to Ridwan Sanjaya and Josua Tarigan (2009), digital marketing is a
marketing practice that involves branding and uses a range of platforms such as
blogs, portals, e-mails, etc. Meanwhile, according to Kleindl & Burrow (2005), digital
marketing is a process of planning and implementing concepts, ideas, prices,
promotions and distribution. In simple terms, it can be interpreted as the
development and maintenance of mutually beneficial relationships between

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consumers and producers. Digital marketing uses the development of the digital
world to do advertising that is not heralded directly but has an influential effect
(Heidrick & Struggles, 2009).
A lot of digital marketing is used by companies, proving that digital
marketing has many advantages and benefits. Some of the advantages of digital
marketing compared to conventional types of marketing include (Wardhana, 2015):
a. Speed of Spread. Marketing strategies using digital media can be done very
quickly, even in seconds. In addition, DM can also be measured in real time
and precisely.
b. Ease of Evaluation. By using online media, the results of marketing activities
can be immediately known. Information such as how long your product has
been watched, how many people view your product, what percentage of sales
conversions are from each ad and so on. After knowing this kind of
information, then you can evaluate which ads are good and bad. So you can
improve for the next period.
c. Wider reach. The next advantage is the geographical coverage of the DM
which is wide. You can spread your brand or product around the world in
just a few easy steps by using the internet.
d. Cheap and effective. Of necessity, digital marketing is much cheaper and
more effective relative to conventional marketing. According to Gartner's
Digital Marketing Spend Report, up to 40% of the budget expenses have been
saved. In addition, the study also indicates that 28 per cent of small businesses
will turn to digital since it has been seen to be more successful.
e. Build a brand name. Digital marketing helps you build a good brand name.
The existence of a virtual world with the presence of your brand is very
important since people are going to check online before purchasing your
goods.
Digital Marketing has several forms, including:
a. Website. It plays a big role in showing the professionalism of the company,
helping consumers to know your business, efficient promotion and easy
business media.
b. Search Engine Marketing. Attempts to make company websites easy to find in
search engine systems. Search Engine Marketing is divided into Search
Engine Optimization (SEO) and Search Engine Marketing (SEM). SEO is done
alone takes longer and is cheaper, whereas SEM is paid but is faster.
c. Social Media Marketing. Circulate platforms on social media like Facebook
and Twitter because they can be done at minimal costs and even for free. This
of course can increase the company's brand.
d. Online Advertising. Promotion media via the internet for a fee. This can get
consumers more quickly and satisfactorily but is somewhat more expensive
than the previous type.
e. Email Marketing. You can provide the latest information about ongoing
promotions or the latest products or services.

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f. Video Marketing. In this way, you can immediately explain about your
business, explain the product and how to use it and display customer
testimonials.
2. Micro, Small and Medium Enterprises (MSME)
Micro, Small and Medium Enterprises (MSMEs) are the industry classes with
the highest number of firms (Wahyuningsih, 2009). In comparison, this group has
proved to be immune to different forms of shocks to the economic crisis. So it is
imperative to strengthen MSME groups that involve many groups (Ardiyanto &
Yoga, 2018). The criteria for businesses that are included in Small and medium-sized
enterprises (SMEs) have been regulated in a legislative system based on law.
Based on Law Number 20 of 2008 concerning Micro, Small and Medium
Enterprises, there are several criteria which include:
a. Micro-enterprises, i.e. profitable enterprises operated by individuals and/or
independent business companies that fulfill the legal requirements for micro-
enterprises..
b. Small Business is a profitable commercial activity which stands alone and is
carried out by individuals or business organizations which are not a
subsidiary or division of a corporation which is owned, operated or is part,
either directly or indirectly, of a medium or large enterprise which fits the
business requirements. which is regulated by law.
c. Medium Business: An independent productive economic enterprise, it is
carried out by a person or corporate organization that is not a division or
branch of a corporation that is owned, managed or part, either directly or
indirectly, of a small or large business with a total net value. Or annual gross
revenue as governed by statute.
In general, the criteria for MSMEs that must be met according to Law Number
20 of 2008 can be seen in table 1 below:
Table 1 Criteria for MSMEs according to Law No. 20 of 2008
No
Description
Criteria
1
Micro Business
Min50 Million
Max 300 Million
2
Small Busniness
50-500 Million
300 juta-2,5 Billion
3
Medium Business
500 Juta-10 Million
2,5-50 Billion
While MSME-targeted firms are not as big as large corporations, many people
are comfortable doing business at this level because of the advantages given to micro
and small and medium-sized organizations, and these advantages are difficult to
achieve at the giant level of business. One of the key benefits is the simplicity at
which business technologies are implemented, especially in the field of technology.
The introduction of the new technologies is simpler to achieve in order to improve
the success of the MSME sector because it does not have a cumbersome structure
and a complicated structure. Apart from the ease of deployment of technology, the

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advantage of the employee partnership factor is that it is narrower in scale and the
ability to adjust the company to dynamic market conditions.
MSMEs can be distinguished from large businesses by recognizing several
characteristics (Prasetyo, 2008). These characteristics include:
a. The place of business can move around, not staying in one place
b. The types of goods sold can change at any time, there is no strict SOP that
regulates this
c. Simple financial administration, sometimes personal finances and company
finances are still combined
d. Most do not have business legality
e. There is no strict and systematic system that regulates HR issues within
business entities
In 2014-2016, the number of small and medium-sized enterprises (SMEs) was
more than 57,900,000 units and is expected to increase to more than 59,000,000 units
in 2017. And in 2016, The President of the Republic of Indonesia claimed that small
and medium-sized businesses with strong resilience would be able to support the
economy of the nation even through the global crisis. In November 2016 President
Joko Widodo (Jokowi) received these business people at the Merdeka Palace to be
asked for their opinions. Jokowi really hopes that small, micro and medium
enterprises will be at the forefront of developing the people's economy.
The medium-sized businesses have been the backbone of the Indonesian and
ASEAN economies. About 88.8-99.9 per cent of ASEAN companies are micro, small
and medium-sized enterprises with job rate of 51.7-97.2 per cent. This company
constitutes 99.99 per cent of the overall business players in Indonesia, or as many as
56.54 million units. Therefore, cooperation for the empowerment and resilience of
micro, small and domestic businesses needs to be prioritized.
There are several factors that influence the development of Small and
Medium Enterprises (MSMEs) in Indonesia, including:
a. Utilization of Technology, Information and Communication Facilities. The
progress of MSMEs is carried out by the development of increasingly
developing technology. The findings of the study reveal that one of the
achievements of a company is the promotion of good technologies which is
right on the mark. In 2017, 8 million micro business units. small and friendly
who have gone digital. This figure is expected to continue to increase for the
sustainability and progress of business in Indonesia.
b. Ease of Capital Loans. The growth of micro, small and medium-sized
enterprises in Indonesia cannot be isolated from funding for banking in
Indonesia. To encourage the growth of MSMEs, it is necessary to open access
to financing from banks and to allocate special credit for MSMEs.
c. Lowering the PPH tax rate. A decrease in income tax rates will have a good
impact on MSME business owners to make it easier for businesses to carry out
tax obligations to the state and also provide opportunities for business
development and investment because of the desire to reduce tax rates.

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MSMEs are increasing rapidly because of the fast spread and the large
number of people who see your promotion in marketing. With this online marketing
strategy someone can find our products because they need them. This online
marketing strategy can also increase product branding and your company to be
more impressed professional and stronger because it has spread everywhere.
Doing online marketing tends to be easier, because with this you no longer
need to bother determining when your store should open. Online product marketing
is also seen by a customer, they can see your products on your online shop site
anytime and anywhere without must come to your shop, and they can order it
immediately when they are comfortable with your products that you have been
promoting.
The pandemic period hit the MSME sector badly. Some businesses were able
to survive, but not a few of them ultimately had to accept the fate of going out of
business. In addition to business competition, it is also necessary to develop their
business by creating competitive advantages over competitors (Purwanti et al., 2020.
In addition to surviving with a competitive advantage, product marketing strategies
must also receive attention. By implementing various strategies, the sustainability of
these micro and medium enterprises can survive the pandemic storm (Al Rasyid &
Indah, 2018; Septiani et al., 2019).
3. Customer
Customer is a consumer in the form of a buyer or service user who has carried
out a purchase or service use repeatedly due to the satisfaction it has received from
the seller or service provider. According to Greenberg (2010), a customer is a person
or a collective who purchases a physical product or service by weighing different
factors such as price, cost, place, service and so on, on the basis of their own
decisions. While Lupiyodi & Hamdani (2006), customer is someone who has
regularly come to the same location to buy products or get the services he wants
because he is satisfied with these goods and services.
Customers based on their characteristics can be divided into several types,
namely:
a. Intermediate customers: groups or people who act as intermediaries for
products, but not as end users of the company's products. For example, such
as a form of travel agent acting as bookers for lodging rooms for end users or
like a distributor who acts in distributing company products.
b. Internal Customers: Internal customers are a group of people or individuals
who are located or located within the company and generally have a share or
influence on the company's performance. Examples of internal customers are
employees of the marketing office, HRD and so on.
c. External Customers: An external customer is an individual or a group of
people outside the company who usually buy products from the company.
Customers in fulfilling their desires have various kinds of characteristics they
have. The characteristics are:

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a. Customers want to be noticed. Customers who contact the company basically
want to get attention, never underestimate or ignore the customer.
b. Want their wants and needs fulfilled. Customers' wants and needs, among
others, want to obtain information, how to fill out applications or submit
complaints.
c. Customers are a source of company revenue. Employees always assume that
every customer who comes is a source of company revenue.
d. Customers Want to Be Considered Kings. Employees must consider the
customer to be king. A king must have all his wants and needs fulfilled. That
is, what a king asks must be fulfilled immediately.
e. Customers Want to Always Be Praised. Customers are naturally happy to be
praised or praised by our employees. Praise and flattery given to customers
are very beneficial.
f. Do not want to be debated and do not want to be offended. The trait
possessed by many customers is that they do not like to be denied their
wishes or opinions. Customers also don't like to be debated, meaning in this
case when employees convey information or opinions and get a bad response
from customers, employees need to respond carefully so that customers don't
feel denied or debated.
C. METHOD
Research on the implementation of digital marketing for MSME sector actors
uses a qualitative approach using literature review methods in analyzing and
solving problems related to the object of this research. Qualitative research is being
undertaken to develop awareness through understanding and exploration. A
qualitative approach to science is a continuum of research and interpretation focused
on techniques that analyze social trends and human issues. In this analysis,
researchers created a complicated vision, studied terms, extensive reports and
performed studies on natural circumstances (Creswell, 2015).
Qualitative analysis is performed under normal and exploration conditions.
The analyst is a central tool of qualitative analysis. Researchers must also have broad
theoretical and informative provisions so that they can pose questions, examine and
construct the object under review in order to be clearer. This research relies mainly
on significance and is bound to merit. The essence of qualitative analysis is to study
people in their community communicating with them, attempting to understand
their language and their understanding of the world around them, approaching or
interacting with research-related individuals with the intention of trying to
understand, examining their opinions and perceptions in order to acquire
knowledge or evidence that is required (Semiawan, 2010).
In addition, as stated by moleong, qualitative methods are carried out with a
variety of reasons, first the modification of the qualitative approach is simpler when
grappling with multiple realities; secondly, this method allows for a clear interaction
between the researcher and the respondent; thirdly, this method is more receptive

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and more capable of adjusting to much of the sharpening of mutual control and
meaning (Moloeng, 2010).
This study also uses a literature review method in analyzing the theories
relevant to the object of research. In this section, an assessment of the concepts and
theories used is carried out based on the available literature. Literature analysis is
used to create ideas or hypotheses that form the foundation of research studies
(Sujarweni, 2014). Literature review or literature study is an activity that is required
in study, academic study in particular, the main goal of which is to establish
theoretical aspects as well as aspects of functional benefits. So that by using this
research method the writer can easily solve the problem to be studied.
D. RESULT AND DISCUSSION
The COVID-19 pandemic has provided tremendous shocks in the economic
sector, including the MSME. The existence of a large-scale social restriction policy or
PSBB has restricted the movement of people, which has also caused stagnation in the
economic cycle of the community. People will refrain from spending their money
because they are more at home. This of course will have a huge impact on the MSME
sector, which is largely dependent on daily economic turnover. Therefore, the
government and other stakeholders create a breakthrough or innovation to
overcome this. One of his actions is to introduce the concept of digital marketing by
utilizing advances in information technology such as the internet to MSME sector
players.
Research reported at the end of January 2020 reveals that the number of
Internet users in Indonesia has reached 175.4 million, while the total population of
Indonesia is around 272.1 million. Compared to 2019, the number of Internet users in
Indonesia has risen by around 17 percent or 25 million. Internet users in Indonesia
aged 16 to 64 years had an average time of 7 hours 59 minutes a day to browse in
cyberspace during 2019. This number beats the worldwide average of just 6 hours 43
minutes a day on the Internet.
The growth of digital marketing around the world cannot be separated from
the development of the Internet and various social media channels. When Facebook
opened its doors to the general public in 2006, the impact of social media began to
affect users and companies, and this situation persists at its most recent pace. As of
the summer of 2013, the three sites with the most traffic were Facebook, Google and
YouTube-either live social networking sites or websites with solid social networking
features. Although the site is not available to those under 13 and denied access in
China, the world's most populous country, one in seven people in the world is
currently an active user of Facebook. This striking growth of social media is only just
beginning to understand business processes and models by business leaders and
marketing researchers. It affects how they get started.
In Indonesia, the number of social media users has reached 160 million, an
increase of 8.1 percent or 12 million users compared to last year. That way, the
penetration of social media use in Indonesia has reached 59 percent of the total

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population. The average use of social media in Indonesia reaches 3 hours 26 minutes
per day. This figure is also above the global average of 2 hours 24 minutes per day.
The Philippines is the country that opens social media the most with a total time of 3
hours 53 minutes per day.
The large use of the internet and social media in Indonesia should be a great
potential for MSME sector players to be able to take advantage of it. Because these
internet users are like a global community without borders which should be a
separate marketing area. The use of the Internet, especially social media, can be the
most effective marketing strategy because of its minimal production costs and a very
broad and unlimited marketing target. In line with the development of various social
media applications, the MSME sector also has easy access to ICT. Especially with the
web 2.0-based technology that makes it easy to create user-generated content.
According to Kaplan & Haenlein (2010), social media can be grouped into at
least six types, namely:
1. A website that allows users to change, add or delete content on the website
2. Blogs or micro blogs that give users the freedom to express something on a
blog, for example Twitter
3. Content is an application that allows users to share information (content) in
the form of videos, e-books and images, for example YouTube, Instagram.
4. Social networking sites are applications that connect users of social
networking sites to connect and share information, both public and private
information, for example, Facebook.
5. Virtual game world is an application that allows users to replicate the
environment in three-dimensional (3D) form to interact with other people as
in the real world, an example of this application is an online game.
6. Virtual Social World which has a concept that is almost the same as the virtual
game world but in a freer context, for example, is a second life application.
The advent of social media is definitely a very positive opportunity for small
and medium-sized businesses, in particular because it does not require large
resources to be able to leverage social media and the multiple advantages that can be
gained if you can make optimum use of it. The scope of the MSMEs sector is
generally restricted only to the area where the MSMEs is based, but with social
media, there are no longer limits to the marketing of goods or services in the wider
area. MSMEs will use forums, blogs, communities and other social channels to create
partnerships with consumers, vendors and other key stakeholders. One of the
greatest benefits of using social media for companies is that business people can
draw the interest of a wide variety of customers at a relatively low cost relative to
traditional media. This cost savings is the key appeal that social media can bring to
business owners, especially newcomers with minimal resources. In comparison, the
use of social media is still very convenient and has high accessibility.
Study by Harto et al (2019) indicates that the use of social media in small and
medium-sized businesses tends to boost revenue volumes. The growth in revenue
was mainly felt by small and medium-sized businesses by 10-50 per cent. This is in

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line with the findings of other studies which state that social media is a marketing
tool for goods or services other than a platform for consumer engagement to try to
solve their own problems.
Based on the findings of the observations on MMEPs and the platforms used,
MMEPs have been able to boost revenue by more than 100 per cent since they use
social media as a marketing and information communications pioneer for MMEPs.
In addition, these small to medium-sized companies often update product and
business information on a regular basis. Meanwhile, small and medium-sized
businesses have boosted revenues by less than 50%, mainly because it is
comparatively rare to refresh details on weekly and even monthly updates.
Theoretically, it must be admitted that there are various benefits that can be
gained from the involvement of MSME players in the digital economy format.
Besides being able to boost financial benefits through increasing online sales and
providing benefits for buyers with the opportunity to save 11% -25% of the retail
price, which is no less important, digitizing MSMEs will also open up new spaces
that can prevent MSMEs from collapsing due to the economic crisis.
From the aspect of business management, digitizing MSMEs is indeed a
promising solution. However, to prepare and ensure that MSME actors can be
involved in the digitization process, it must be admitted that it is not easy. Getting
MSME players accustomed to entering the digital ecosystem, it is not impossible that
they will encounter various obstacles.
First, it relates to the ability of many MSME actors who still stutter in the use
of information technology for marketing. Of the many MSME players, only 17% are
Awareness of information technologies in the growth of business practices. It is
estimated that only about 3.97 million entrepreneurs understand business
digitization. This means that only a small proportion of MSMEs can engage in online
business transactions.
According to data from the Ministry of Cooperatives and Small and Medium
Enterprises (Kemenkop UKM), the success rate of MSMEs in Indonesia in selling
their products through digital platforms is still very low, which is only 4% -10%. The
failure of MSME players to adapt and adopt online business platforms and the
digitization process has made MSME players worse off. It is estimated that about
half of the number of MSME players in Indonesia will go out of business in
September 2020.
Second, it is related to the large number of MSME players who do not yet
have the basic infrastructure to be involved in the digital ecosystem. In various
regions, it is no longer a secret that most MSME players generally still do not have
proper smartphones, and do not or have not used computers to market the products
they produce. Due to limited funds, not many MSMEs are able to provide credit
packages or access to the internet. In other words, there are structural conditions that
make MSME actors suffer from various limitations in being involved in the process
of digitizing MSMEs.

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Third, related to geographic conditions that do not allow MSME players to
use information technology and the internet to market the products they produce.
MSME players who live in remote areas and are not reached by the internet for
product marketing purposes, are certainly difficult to expect to be involved in the
process of digitizing the UMKM business.
In various regions it is common knowledge that most MSME players
generally still rely on the process of selling products offline due to geographic
conditions that do not allow and limited infrastructure and connectivity. All
business activities developed by MSME players, starting from the buying, selling,
marketing, to payment for raw materials and product marketing, still depend
heavily on offline physical interactions.
Seeing the various opportunities, challenges and obstacles that exist for
MSME actors, this kind of shift in the consumption behavior of the community and
consumers must be addressed creatively. In order for MSME players to survive, even
be able to develop in the new normal era, like it or not, MSME players must learn to
know and practice themselves in the digital ecosystem.
More than just getting used to being involved in the digitalization process in
the marketing sector, for MSME players what needs to be paid attention is not to let
their involvement in the digital economy actually accelerate the death process of
MSMEs. This can happen because MSMEs are not strong enough to compete in a
highly competitive virtual world.
Based on this research, the author tries to recommend some simple ways for
beginner MSMEs so that they can get used to and be able to dive into digital
marketing in order to improve their business in the midst of current crisis
conditions.
1. Determine marketing goals knowing marketing goals will help you measure
the level of success. Of course, this goal must be adjusted to the type of
business you are building.
2. Determine the target market. Never start digital marketing without
determining your target market. Because, the target market helps you prepare
promotional efforts, find out your budget needs and increase sales. By
understanding your target market, it will be easy to find out the specific needs
of consumers. As a follow-up, you can develop better product, even create
new products that are more needed.
3. Choosing a Digital Marketing Platform. Are your customers more accessible
via website, social media or email? The digital marketing platform used will
determine the success of your efforts. Website is still the main platform for
online business. So, all your digital marketing activities must be directed
towards making good use of the website. However, of course it must be
supported by other platforms such as social media or email.
4. Determine the Budget. How much will you spend on your product marketing
efforts? A data shows that the budget for digital marketing can reach up to
45% of the total marketing budget. You can use this figure as a reference. But,

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of course, it must be adjusted to the type of business and marketing target
that you are doing.
5. Publish Interesting Content. A study states that 92% of consumers want
digital marketing content that fits their daily life / like a real story. Not only
that, interesting content should reach consumers at the right time. This of
course must be adjusted to the type of media and content used.
By shifting the marketing method to digital marketing in the MSME sector, it
will certainly provide more benefits to these MSME players because they will get an
unlimited wide marketing area with small production costs.
In addition to the benefits obtained by MSME players, the application of
digital marketing also provides added value to MSME consumers because the
existence of digital marketing will provide the conveniences that are most sought
after and liked by consumers. And the values that are formed from the existence of
digital marketing can be seen, among others:
1. Digital Media is preferred by today's consumers.
In fact, now consumers prefer to browse the website or Instagram because it is
more practical. Before deciding to choose a consumer, you can always check
the product on the website first and then buy, either coming directly to the
store or shopping online. Shop owners who are not yet online will lose to
shop owners who also provide online catalogs on their website. With a
product catalog displayed on the website, it is very helpful for consumers to
browse products without having to come to the store. If they are interested,
maybe they will come to the store during the weekend or when they are free
to buy.
2. Provide easy information to consumers
At that time I happened to be looking for the nearest camera shop in the
location where I live, and checked if the camera I was looking for was in that
store. The method I choose is searching the internet by looking for the closest
address, looking on the website and making sure there is a product that I
want, and checking what time the shop is open, then arranging a schedule to
come, see and buy. From this it shows that digital existence is very useful as a
source of information.
3. Give time to consumers
Very often consumers do not have free time to come to outlets, shops, or
boutiques. But by having digital media such as: websites, marketplaces, and
social media, consumers will easily see the desired product. Completing all
digital media in order to provide consumers with many choices, with what
they are looking at the product. This means that they will be very free without
being limited in time and place to look around before finally buying.
4. Shop like active 24 hours every day
Internet digital media is not limited by time and place. Customers and
potential customers can always access digital media to view products
whenever they want. They can anytime see the online store website, shop on

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the marketplace or on Instagram. This is not possible in an offline store where
it will be closed at night.
5. Your customers are not limited by distance
With digital media, they can order comfortably from their office or home.
Moreover, it is now easier with so many couriers, so they don't think too
much about distance.
6. Many digital media options
You don't have to think about starting to use it, because you don't have to use
an online store, which is relatively expensive. You can try first using a
marketplace like Tokopedia, Bukalapak, or Instagram Social Media. But it is
not enough just to make, almost all businesses must optimize their digital
media in a way that is commonly called "Digital Marketing".
E. CONCLUSION
The MSME sector plays a very vital role for the economy in Indonesia. Most
of the economic actors in Indonesia are engaged in this sector. The COVID-19
Pandemic has devastated the economy in Indonesia. The MSME sector is the most
affected because this sector relies heavily on the daily movements of the economy.
The existence of restrictions on activities carried out by the government causes
economic circulation to also become choked up. It is necessary to take strategic steps
by stakeholders in order to save the MSME sector from closing down or going out of
business.
Digital Marketing is a marketing concept based on Information and
Communication Technology which is currently growing throughout the world. The
development of the Internet of Thing, especially on social media platforms, has
become a new ground and opportunity for MSME actors. The opportunities for the
unlimited marketing area should be put to good use by MSME actors. However, in
reality there is a very small number of MSME sectors that utilize digital marketing in
Indonesia, which is only around 17%. This is certainly a separate note for the
government and all those involved in this sector for how these actors can take full
advantage of this digital marketing concept so that it will have an effect on
increasing turnover which in turn can make MSME sector players survive in the
midst of the COVID-19 pandemic. 19 as it is today.
There are some simple steps for MSME players, especially beginners, to start
using digital marketing in their business, such as determining marketing goals,
determining marketing targets, determining the chosen digital marketing platform,
determining a budget and creating interesting content that can attract customer
attention. These small steps are expected to provide a basis for MSME players to be
able to start changing their business platform to digital marketing.
The existence of digital marketing will not only provide benefits to MSME
players but can also create benefits or added value to customers. This is because
digital marketing provides convenience to customers in terms of information, time,
distance, availability of goods for 24 hours and of course choices. This is a value

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creation for customers that so far cannot be obtained with conventional marketing
systems that have been available so far.
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