Abstract
In this chapter, the authors discuss the impact that the uses of digital marketing tools had on the performance of small food retailers in a municipal market in Portugal as a result of the challenges imposed by the pandemic situation of COVID-19. They developed a case study with the use of quantitative and qualitative methodologies seeking a more holistic view of the situation given the scarcity of research on this type of retail format. It is concluded that the experience and resilience of these retailers allowed them to quickly adapt to the requirements of the most basic digital marketing tools, namely social networks, and that these had some impact on their business in terms of sales and reputation. However, the small size of these retailers and their limited academic training has in many cases reduced the possibility of a systemic view of their marketing management and digital social networks.
TopBackground
The retail food trade has changed significantly in recent decades: the large super and hypermarket brands have conquered a very considerable share of this market: in 2020, in Portugal the large hyper and supermarkets held 49.7% of the market and the small food outlets only 17.5% (NielsenIQ, 2021). Small businesses and municipal markets, often located in the centers of large cities, are exposed to very diverse challenges: (1) the emergence of new operators, with very competitive offers, greater convenience and variety of products and services (2) the physical expansion of cities and the removal of many inhabitants to new residential neighborhoods, far from historical urban centers and its local retailers, a situation that is aggravated in many cities with the constraints of access to the center, due to the intense traffic, the difficulties in parking and the growing pressure to reduce car traffic in many city centers (3) the aging and little education of shopkeepers and their difficulty in adapting to new technologies and management methods. The Municipal Markets have also been losing part of their relevance, due to the difficulty in competing with the big retail brands, the desertification of the city centers where they are usually located and the lack of innovation, communication and commercial aggressiveness (Xara-Brasil et al., 2021).
Many traditional retailers have been able to develop a successful economic activity, due to the existence of strong relationships with their customers, sometimes developed over decades, capable of accumulating great experience and know-how, creating very solid relationships of trust, loyalty and even affectivity (Mullis & Kim, 2014; Khan et al., 2020). Geographical proximity and the existence of a differentiated and authentic range of products are also highly valued aspects for many customers at these points of sale (Skallerud & Wien, 2019). There are also government programs to support small traders in city centers, which have contributed to improving management practices and the attractiveness of these points of sale.
Key Terms in this Chapter
Digital Marketing: Marketing communication activities that include de use of electronic devices to interact with the target audience, such as websites, digital social networks, search engines, etc.
Digital Social Networks: Interaction tools that citizens may use through the internet. Simple a cheap way to send photos and messages, mainly using posts. Facebook, Instagram, Twitter, Tic-Toc are examples of digital social networks.
Promotional Programs: Is a series of marketing activities that are link with the strategic marketing options that are operationalized and monetarized in order to archive the short- and long-term objectives.
Municipal Markets: Commercial units located in the center of cities, generally implemented and managed by local governments (municipalities) that historically seek to put producers, traders and inhabitants of the regions in contact, through a large number of independent retailers.
Telesales: The use of sales promotion using a telephone or a smartphone, with actual or potential customers.
Strategic Marketing: Marketing options that companies establish for their brand and or business that don’t change for a large period and guide marketing operational plan and activities.