Index

1. INTRODUCTION

Small and medium-sized enterprises (SMEs) are a key component in driving countries around the world, including Thailand. Business operations at the enterprise level are very important to the country's economy, with the performance of small and medium-sized enterprises affecting the country's gross domestic product. The growth of the country's economy must therefore focus on the growth of these small and medium-sized enterprises. Thailand's data in the system of the Office of Small and Medium Enterprises Promotion found that there were 3,046,793 small and medium enterprises and created a gross domestic product of 6,551,718 million baht (The Office of SMEs Promotion, 2017). This value has been growing from the previous year and the government aims to maintain the annual growth of small and medium enterprises according to Thailand's small and medium enterprise promotion plan. According to the database of the Office of Small and Medium Enterprises Promotion, it was found that the number of Thai small and medium enterprises is dense in the northeastern region, which amounts to 764,094. Therefore, small and medium-sized enterprises in the northeastern region of Thailand were chosen for the study. The government of Thailand established the Office of Small and Medium Enterprises Promotion to encourage such enterprises to be able to operate well, grow and develop various aspects of their organization. This government support is essential to the development and building of the competitiveness of Thai SMEs in both the domestic market and the international market. The Thai government wants to support and promote all aspects to enhance the competitiveness of Thai SMEs, which will ultimately benefit the country's growth. However, in order to run a business, it is necessary to focus on marketing. At present, companies are not only using traditional marketing strategies or offline marketing but also need to develop an online marketing strategy. Consumers around the world use modern technology through social media in many forms. Therefore, online purchases play a very important role in doing business now and in the future. This study aimed to study both offline and online marketing strategies that affected marketing success among SMEs in Thailand. Additionally, the study also aimed to prove the moderating effects of government support on the relationship between the two types of marketing and marketing success. This meant studying the interaction of government support with marketing strategies that influenced marketing success in Thai SMEs.

2. LITERATURE REVIEW

2.1. Offline Marketing Strategy

A marketing strategy is an organizational strategy that involves inputs, outputs, and environmental factors that can affect the planning of an organization's marketing strategy and the relationship between those factors (Morgan, Whitler, Feng, & Chari, 2019). Marketing strategies are also important to running a successful business (Bobalo, 2018; Morgan et al., 2019; Voorveld, Araujo, Bernritter, Rietberg, & Vliegenthart, 2018). The marketing strategy process consists of two parts: the strategy formation part and the implementation part of the strategy plan (Morgan et al., 2019). An offline marketing strategy involves generating customers by meeting directly with the business's target consumers (Wulandari, Saratman, & Pahlevi, 2019). Offline marketing is marketing that does not use an online format, which if done effectively, it will have a greater impact on marketing effectiveness and consumer interest (Newton, Newton, Newton, Barker, & Nicholas, 2020). For traditional marketing strategies or offline marketing, marketers need to develop short-term and long-term strategic goals, content creation in marketing communications, marketing program development, and marketing activity creation to make the marketing structure operate effectively (Morgan et al., 2019). Bobalo (2018) conducted a study on Ukrainian consumers and found that high-potential and high-powered consumers weren't routinely on the Internet. Therefore, offline marketing is an important part of this group of consumers. Yan (2020) studied Chinese consumers and found that consumers over thirty are still interested in offline shopping. These findings showed that offline marketing is still necessary and useful for marketing success in some consumer groups. Voorveld et al. (2018) indicated that social media users reach more when businesses use offline advertising to complement their online marketing. This shows the importance of offline marketing that still exists among modern consumers. It is consistent with the study of Bobalo (2018) who highlights the importance of offline marketing to today's consumers, finding that marketing promotion and event marketing also influence marketing success. In addition, Tarik and Adnan (2018) research into technology consumers in Bosnia and Herzegovina finds that investment in offline marketing remains substantial. The reason is that consumers are still interested in this traditional marketing. However, the study expects that in future the investment in online marketing will be larger than offline marketing in the end.

2.2. Online Marketing Strategy

With the development of modern technology in the world, businesses have to adjust accordingly. Digital developments have clearly changed the behavior of consumers around the world (Kannan & Li, 2017). Businesses need to develop an online marketing strategy to reach modern consumers in order to succeed in doing business today and in the future. Modern consumers have behaviors that change according to modern digital technology, making online shopping more convenient and faster (Bhayani & Vachhani, 2014; Yan, 2020). This development of online marketing has resulted in a larger network expansion and more influence on target consumers (Bobalo, 2018). Studies have shown that providing good information affects consumers' trust and purchasing decisions (Wulandari et al., 2019). Online consumers want relevant information, and getting online feedback or reviews from other shoppers, which make a strong influence on their decision-making (Kannan & Li, 2017).

According to Karki and Nigade (2020) digital marketing involves the use of various forms of online marketing strategies, such as email marketing, social media marketing, and content marketing, to run a business to promote and sell a product or service. Singh, Garg, and Partibha (2020) indicates that online marketing, or digital marketing, is easier and friendlier than offline marketing. The study also found that the success of digital marketing depends on brand image, customer relationships, and fair policies of online commerce. Wulandari et al. (2019) too indicated that a business's online marketing strategy affects marketing communications and sales increases. Although Bobalo (2018) indicated that offline marketing is still important to today's consumers, the study suggested that both offline and online marketing strategies are synergistic. In addition, Wulandari et al. (2019) indicated that social media marketing strategies have a huge impact on increasing business sales through continuous online communication. This is consistent with Venkateswaralu and Mylvaganam (2020) research, which concluded that online marketing, such as social media marketing, affected marketing success by increasing brand awareness and competitiveness. These findings are in  consistent with the study of Arunprakash, Aswin, Aravindh, and Vasudevan (2021) who concluded that online marketing strategies generate a greater return on investment.

2.3. Government Support

Each country's government plays an important role in the development and growth of businesses, especially in promoting the growth of small and medium-sized enterprises in that country (Chayomchai & Phonsiri, 2019; Rankhumise & Masilo, 2017). Government support is essential to the marketing success of small and medium-sized enterprises, especially startup enterprises. Governments at all levels need to promote and invest in a number of areas to support enterprises to develop their ability to do business over the long term (Hefferan & Fern, 2018). According to Chayomchai and Phonsiri (2019), government support has several components, including consumption stimulation, marketing incentives, training and development, and promotion of public image and inclusion.

Similarly, Cancino, Bonilla, and Vergara (2015) showed that small and medium-sized enterprises have difficulty in doing business, especially in the early stages, but government support such as financial support, entrepreneurship promotion, and supporting innovation helped the business overcome such obstacles. In addition, Nguyen, Van, Bartolacci, and Tran (2018) study indicated that different types of government support can affect an organization's bottom line in different ways. Chayomchai and Phonsiri (2019) found that government support had a significant impact on enterprise performance in three aspects: the financial perspective, the customer perspective, and the internal processes perspective. Meanwhile, Marri, Nebhwani, Sohag, Memon, and Memon (2011) showed that small and medium-sized enterprises needed government support at every stage of their business development to be successful. However, Hefferan and Fern (2018) concluded that government support can be very beneficial in the early stages of businesses, and if business owners did not develop entrepreneurship, government support may not be successful.

2.4. Marketing Success

Marketing activities and actions affect the marketing performance of a business organization (Gama & Casaca, 2013). The design of marketing strategies and processes is a key factor in determining the success or failure of any business (Kannan & Li, 2017). In addition, other external factors also affect the effectiveness of marketing according to contingency theory, such as consumer factors, competitive factors, industrial factors, and government factors (Gama & Casaca, 2013). Kannan and Li (2017) explain that marketing outcomes that determine business results require marketers to plan and manage marketing to suit the changing context of the business. A business's marketing evaluation measures both financial and non-financial metrics, in which marketing results generally influence a business's financial results (Gama & Casaca, 2013). However, Raju and Haranath’s (2019) research indicates that some consumers prefer offline marketing and some prefer online marketing, which depends on a number of personal factors including attitudes, habits, time, and technology knowledge. This is consistent with the studies of Bobalo (2018) and Yan (2020), who found the offline marketing strategy still necessary and useful for marketing success in some consumer groups.

In addition, Voorveld et al. (2018) draw attention to the importance of offline marketing that still exists among modern consumers. In terms of online marketing strategies, several studies have identified the marketing success that comes from using online marketing strategies. Karki and Nigade (2020) show that online marketing, or digital marketing, had a strong influence on the marketing success of the organization. Likewise, Bhayani and Vachhani (2014) found that online marketing strategy significantly influenced consumer purchasing decisions, and Wulandari et al. (2019) revealed that online marketing strategy affected marketing communications and increased sales. It is consistent with Venkateswaralu and Mylvaganam’s (2020) research, which concluded that online marketing influenced marketing success about brand awareness and competitiveness.

From the review of relevant literature, this study developed a research conceptual framework, as shown in Figure 1. The framework comprised four key variables: offline marketing, online marketing, government support, and marketing success. The purpose of this study was to study the influence of offline and online marketing on marketing success and the government support variable that influenced the relationship between offline and online marketing strategies and marketing success among entrepreneurs in the northeastern region of Thailand.

3. METHODOLOGY

3.1. Population and Sample

The population used in the research was 11,981 small and medium-sized enterprises in the northeastern part of Thailand. The researcher calculated the sample size using Krejcie and Morgan's table, which found that the sample size was 370 (Bukhari, 2021). The data collection for this research used questionnaires as a tool. The researcher planned to collect data using a stratified random approach. After the data collection process, it was found that 236 respondents had actually responded, which were usable questionnaires.

3.2. Research Tool

The research instrument used to collect data was a questionnaire developed from a review of the relevant literature. The developed questionnaire consisted of two main parts: the first was a question about the participants' personal data, and the second was a question about the four main variables of the study, as shown in Table 1. There were 75 questions related to all four main research variables. The researcher tested the content validity with item-objective congruence (IOC) values from three experts and academics. As a result, all questions were valued between 0.66 and 1.00, which was considered good for the questionnaire. After that, the researchers tested the reliability of the questionnaires divided by variables with Cronbach’s alpha values. Thirty respondents were tested on this questionnaire. The results showed that the reliability values of all sections of the questionnaire were greater than 0.7. It can be concluded that the questionnaire was reliable as a tool of this study (Hair, Black, Babin, & Anderson, 2014). The questions used in this study were based on a five-point Likert scale. Scores: one was the lowest opinion level, and five represented the highest rating.

3.3. Statistical Analysis

The statistical analysis of this study was done in two parts: the first part was descriptive statistical analysis and the second part was partial least squares structural equation model (PLS-SEM) analysis. The PLS-SEM analysis is a variance-based SEM analysis technique for latent variables in the model (Ali, Rasoolimanesh, Sarstedt, Ringle, & Ryu, 2018; Haenlein & Kaplan, 2004; Henseler, Ringle, & Sinkovics, 2009).

As this study examined the influence of the directed variables showing the interaction of two independent variables together. Therefore, the  moderating effects were tested by two-stage approach of the PLS-SEM analysis as proposed by Henseler (2017).

The first step involved evaluating the model without considering the interactions of independent variables and generating a new interaction term. After that, the second step was to analyze the structural equation model incorporating the influence of the interaction variables.

4. RESEARCH RESULTS

4.1. Descriptive Analysis

This study statistically analyzed 236 available data. Table 2 presents the results of the analysis of the participants' personal data. The researchers analyzed descriptive statistics in the preliminary data, including gender, age, status, education, position, business experience, and the number of employees in the organization.

The statistical results in Table 2 reveal that most of the respondents are male, single, aged between 41 and 50 years, and have a bachelor's degree. Most of the participants are business owners, have over twenty years of business experience, and have fewer than fifty employees in the organization.

In the analysis of the main variables of this research, the results of the analysis are shown in Table 3. The results of the mean analysis of the fourth variable, namely offline marketing, online marketing, government support, and marketing success, were found to be at a high level. It was found that the means of offline marketing, online marketing, government support, and marketing success were 4.38, 4.28, 4.02, and 4.33 respectively. While it found that the standard deviation of all four variables was favorable. In addition, considering the normal curvature of the data from the skewness and kurtosis values, it was found that the data was normal.

4.2. Reliability and Validity Assessment

Table 4 shows the results of the assessment of the measurement models of this research. The researcher used the Hair, Hult, Ringle, and Sarstedt (2017) criterion that the loading weight value of each item had to be greater than 0.7 to be considered an acceptable value. The results of the statistical analysis showed that all loading weight values exceeded 0.7. Therefore, it was concluded that the data passed the specified criteria. When considering the composite reliability (CR) and Cronbach’s alpha (CA) values, it was found that both of the analyzed values exceeded 0.7, so it was considered a high confidence (Hair et al., 2017). When considering the average variance extracted (AVE) test values, it was found that the analytical values of all variables exceeded 0.5 and therefore were considered to pass the specified criteria (Hair et al., 2017). By considering several of the criteria given above in evaluating a measurement model, it was concluded that the data and measurement models were suitable for further testing in structural analysis.

Table 5 shows the results of the discriminant analysis by Fornell-Larker criteria. It found that all analyzed values were satisfied, which was a comparison between all bolded loading values in the diagonal dimension and the vertical values. The results of the comparison showed that all vertical loading values were lower than the bolded values in each column, so the discriminant analysis passed the appropriate criteria (Henseler., Ringle, & Sarstedt, 2015).

Another discriminative analysis was the Heterotrait-Monotrait (HTMT) test, as shown in Table 6. It was found that all pairs of test variables were less than 0.9. Therefore, it can be considered that all values pass the appropriate criteria as well (Henseler. et al., 2015).

4.3. Assessment of the PLS-SEM Model

Evaluating the Structural Equation Model initially, the researcher analyzes the model without considering the influence of the interaction of the moderating variables. The results of this first-stage analysis are shown in Table 7 and Figure 2. The results tested the influence of three independent variables: offline marketing, online marketing, and government support on the success of marketing among Thai entrepreneurs.

The results in Table 7 show that offline marketing, online marketing, and government support have a significant positive influence on the success of marketing among Thai entrepreneurs. From the second figure, the three independent variables accounted for 66.5 percent of the variance in market success.

4.4. Assessment of The Moderating Effect of Government Support

The second stage of the structural equation model was analyzed to test the influence of the interaction (moderating effect) of independent variables in this study, the interaction between offline marketing and government support (offgov) and the interaction between online marketing and government support (ongov). The results of the analysis are shown in Table 8 and Figure 3.

The results of Table 8 show that the H1 and H2 hypotheses were supported, while the H3 and H4 hypotheses were not supported. These results show that offline marketing strategies and online marketing strategies have a significant positive influence on marketing success among Thai entrepreneurs. While the results of the analysis showed that there was no influence of the interaction between offline marketing strategies and government support influencing marketing success among Thai entrepreneurs. Similarly, it was found that no interaction between online marketing strategies and government support influenced marketing success in Thai entrepreneurs.

To determine the overall performance of this study model, the coefficient of determination (R2) was determined as shown in Table 9. The results showed that the R2 value was equal to 69.9 percent. This result means that all independent and moderating variables can predict the variance of market success at 69.9 percent.

5. DISCUSSION

The objectives of this study were to test the influence of offline marketing and online marketing on marketing success and to prove the interaction between government sponsorship and both types of marketing influences marketing success in small and medium-sized enterprises in Thailand, which focuses on studying the Northeastern region of Thailand. The first part of this study revealed the significant positive influence of offline marketing on marketing success among Thai entrepreneurs. This finding is consistent with previous studies, including the study by Yan (2020) which found that offline marketing affects marketing success; the study of Voorveld et al. (2018) which concluded the importance of offline marketing strategy that was still necessary in modern consumers, and the study of Bobalo (2018), who found that the offline marketing strategy was still useful for marketing success in some consumer groups. Therefore, executives or marketers should pay attention to creating this offline marketing strategy or traditional marketing to further enhance marketing success.

The second finding from this study was that online marketing had a significant positive effect on Thai entrepreneurs' marketing success. These findings are also supported by several previous studies, including the study of Karki and Nigade (2020) that concluded the positive influence of the online marketing on marketing success, the study of Bhayani and Vachhani (2014) who indicated that online marketing strategy significantly affected the consumer purchasing decision, the study of Wulandari et al. (2019) who found that online marketing affected marketing communications and increases in sales, the study of Venkateswaralu and Mylvaganam (2020) who revealed that online marketing strategy significantly influenced marketing success about brand awareness and competitiveness, and the study of Arunprakash et al. (2021) who found that online marketing strategies generate the market success of businesses. The final findings of this study, however, revealed that the interaction between government support and both marketing strategies did not influence marketing success among SMEs in Thailand but found a direct influence of Government support towards marketing success. Such a result may be that the government focuses on promoting Thai entrepreneurs to be successful in their competitiveness or the overall in every aspect, including marketing. But the government did not specifically aim to drive both offline and online marketing to promote just one aspect of marketing. However, the researchers believed that this issue may need to be studied in more detail in future. Nguyen et al. (2018) indicated that different types of government support can affect an organization's bottom line in different ways. Cancino et al. (2015) and Hefferan and Fern (2018) recommended that government support can be very beneficial in the early stages of businesses such as financial support, entrepreneurship promotion, and supporting innovation. These supports from government will help the business to overcome such obstacles in small and medium-sized enterprises.

6. CONCLUSION AND RECOMMENDATIONS

6.1. Implications and Recommendation 

From the findings of this study, both marketing strategies, offline marketing and online marketing, have a clear impact on marketing success. The researchers suggest that managers or marketers in small and medium-sized enterprises should pay attention to planning both marketing strategies for the successful operation of the enterprises. If entrepreneurs execute offline marketing strategies in conjunction with online marketing well, marketing success will eventually follow. In offline marketing, enterprises should focus on three main areas: point-of-sale management, channel supervision and consignment, and participation in trade shows and public relations. While managing online marketing strategies, enterprise entrepreneurs should pay attention to web systems for sales, marketing content development, e-mail use, and social media utilization. However, government support may directly affect market success, but entrepreneurs may not be able to control government support because they are external factors. Therefore, the integration of Thai small and medium-sized enterprises may help in building the power to negotiate or seek better government assistance.

6.2. Future Research 

The results of this study found no direct influence of government support in the relationship between the two types of marketing and marketing success. Therefore, future research should explore more about the relationship between government support and the two marketing strategies, for example, studies on how government support and marketing strategies interact and in what ways. This type of research will be more useful in understanding the interactions between these two factors and can ultimately lead to a better direction for the management of small and medium enterprises in the future.

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