Digital Marketing Intervention on Dynamic Finance and Feasibility Using Simulation: A Case Study

This paper aims to design a model that assesses the impact of digital marketing interventions on the finance and feasibility of Micro, Small, and Medium Enterprises (SMEs). The model developed in this study evaluates the most effective digital marketing alternatives to boost sales in line with the production capacity of the SMEs. The research methodology employs a system dynamic modeling approach to accurately represent the real system of SME X. The designed model comprises three subsystems: marketing, production, and finance, which are essential for assessing the feasibility of SMEs. Each subsystem includes interconnected variable elements linked through equations. Simulation processes are conducted using the system dynamics approach with 77 variables, three scenarios, and 16 alternatives, utilizing the Vensim application. The results suggest that digital marketing interventions effectively increase profits for small and micro-scale SMEs under conditions of high sales volume. However, when sales volumes are relatively low, conventional marketing proves more effective in enhancing profits. Effective digital marketing interventions significantly impact both profits and financial stability. The model’s originality lies in its ability to predict future conditions resulting from digital marketing interventions on profits and dynamic finance. The research’s novelty lies in generating new knowledge about effective digital marketing strategies.