WEB BASED INFORMATION SYSTEM ON AGRICULTURAL MARKETING
CHAPTER ONE
1.0 Introduction
For over the last 120 years there has been a steady evolution of marketing this has mainly been driven by technological advancements which has radically transformed business strategies globally (Turban, 2021). Technology has led to the rise of social media platforms which has transformed business-consumer interactions, making marketing more dynamic, accessible, and cost-effective (Yaqub, 2023).
1.1 Background
Globally marketing has evolved and has adapted to technological advancements due to cultural shifts and changing consumer behaviors. In the periods of pre-1900s marketing was mainly in the barter trade system, the period of 1900s-1930s, it was mainly Product-Oriented Era while from 1950s to 1980s it was market oriented, Societal Marketing Era (1970s-2000s) and from 2000s-Present it is Internet and Social Media era, the rise of the web based information system, and mobile technology transformed how businesses operate (Hernández-Zambrano, 2022). The advent of web based information system platforms has significantly transformed how businesses interact with consumers, ushering in a new era of marketing. Unlike the traditional media, which involved one-way communication, web based information system enables two-way interactions, allowing businesses and consumers to engage in real-time conversations. This transformation has made marketing more dynamic, accessible, and cost-effective and this has been made possible by social media companies like facebook, whataspp, pinterest, X, my space, google, Microsoft, Instagram, tiktok, wechat and many others , (Ali, 2023 ). web based information system has emerged as a paramount marketing tool, offering unprecedented opportunities for businesses to reach and engage consumers with large number of people continuing to use the platform social media growth has continued to increase since More than half of the world now uses social media (62.6%) 5.07 billion people around the world now use social media, 259 million new users join the platform within a year (Hastuti, 2023).
The role of web based information system marketing in the development of business cannot be overstated, in 2023 alone, web based information system advertisement stood at approximately 270 billion dollars (Rodríguez-Ibánez, 2023), with the expenditure expected to surpass the 300-billion-dollar mark by 2024. As of 2024 there are over 5 billion people around the world now using web based information system, and 259 million new users have come online within the last year.
In Africa, the use of web based information system is also rapidly growing, driven by increasing internet penetration, mobile phone usage (Rodríguez-Ibánez, 2023), and the growing popularity of different technology platforms. Africa has seen significant growth in internet access and mobile phone usage and currently, the number of African social media users has risen continuously, amounting to over 384 million as of 2022. In January 2024, Nigeria had approximately 103 million internet users, with 36.75 million engaging in social media. In Kenya, there were 13.05 million social media users by 2024, while South Africa had 26 million social media users in 2023 (Rodríguez-Ibánez, 2023).
Web based information system has leveled the playing field for enterprises across different sectors, agricultural exporters inclusive. Traditionally, large corporations with substantial marketing budgets had a significant advantage (Kanellos, 2024) However, web based information system platforms offer both manufacturing and even small-scale agricultural exporters a cost-effective way to compete (Kanellos, 2024), By creating engaging content and leveraging viral marketing, even small businesses can achieve significant visibility (Evans, 2021).
Despite these benefits, the adoption of web based information system marketing among Ugandan agricultural producers and exporters has not met expectations. Uganda has an internet penetration of around 45%, yet only 2.60 million Ugandans used internet users as of January 2024, representing just 5.3% of the population (World Bank, 2020). This limited technological engagement among agricultural exporters is reflected in Uganda’s relatively low agricultural export revenue, which was $2.45 billion in the 2021/2022 financial year. This figure contrasts with Kenya’s $2.7 billion and South Africa’s $12.8 billion for the same period, highlighting Uganda’s lag in agricultural export earnings within the region (Obol, 2023).
Empirical studies have attributed the slow adoption of web based information system marketing among agricultural exporters in Uganda to various factors, including limited digital skills, inadequate access to technology, and concerns about the return on investment in technology. There is a significant gap in training and support specifically tailored for small-scale agricultural producers and exporters, which may hinder their ability to effectively utilize technology (Ramirez, 2018).
These challenges raise critical questions on the readiness of Agricultural exporters to adopt SMM. Readiness is the preparedness and ability to integrate social media into business operations effectively, without a sufficient level of readiness, agricultural exporters may struggle to leverage social media platforms to their advantage (Liverpool-Tasie, 2020).
In Uganda, web based information system m is a phenomenon that gained prominence in 2009 (Asongu, 2021), For example, Facebook (79.98%), Pinterest (9.4%), Twitter (4.74%), and YouTube (3.45%) are some of the popular social media sites with the largest market share in Uganda (Asongu, 2021). Agriculture is so important to Uganda that Eighty percent of Uganda’s land is arable but only 35% is being cultivated, In FY 2022/23, agriculture accounted for about 24% of GDP and 35% of export earnings, the UBOS estimates that about 68% of Uganda’s working population is employed in agriculture.
Uganda produces a wide range of agricultural products including coffee, tea, sugar, livestock, fish, edible oils, cotton, tobacco, plantains, corn, beans, cassava, sweet potatoes, millet, sorghum, and groundnuts. The Uganda Coffee Development Authority reported total exports of 5.9 million 60-kilo bags valued at $877 million in 2022, up from 6.5 million 60-kilo bags valued at $627 million in 2021 (Businge, 2024). The primary driver for the higher value in the 2022 exports was the increment in the coffee price to $2.50 per kilo from $1.61 per kilo in 2021, while in the tea sub-sector, Uganda produced at least 80,000 tons of tea in 2022 and at least 5% of the total production is consumed in the domestic market. Most of Uganda’s tea is exported through the Export Auction System that takes place in Mombasa, Kenya and the value of tea exports is $88.36 million, mostly semi-processed (Muzira, 2023).
The most important exports are coffee (22 percent of total exports) followed by tea, cotton, copper, oil, and fish. Uganda’s main export partners are Sudan (15 percent), Kenya (10 percent), DR Congo, Netherlands, Germany, South Africa and UAE. Over 2.6 million Uganda active on social media the agricultural exporting companies in Uganda are still very reluctant to use this platform for advertising, despite Uganda’s agricultural sector accounting for approximately 24% of the national GDP and employing about 70% of the population and the export sector plays a vital role in Uganda’s economy, with agricultural products contributing around 55% of total export revenues in 2022. Coffee, the leading export commodity, generates approximately $500 million annually, making Uganda the largest coffee exporter in Africa. Other notable agricultural exports include tea, earning about $80 million, and horticultural products, which are gaining popularity due to their quality and organic nature (Muzira, 2023).
Statement of the problem
Despite the significant global shift towards digital marketing, many agricultural marketers in Uganda remain hesitant to adopt w as a marketing tool, these exporters specifically for products such as coffee, tea, cocoa, fruits, and fish, exported goods valued at around $3.99 billion in 2022 with coffee alone accounting for $753 million of exports, this value of agricultural exports is still way less according to Uganda’s potential (Ruge, 2023), though Agricultural exporters in Uganda have social media platforms , there is reluctance in the use of social media in marketing agricultural products for exports , this is particularly concerning given the proven potential of social media to enhance market reach, increase competitiveness, and drive economic growth (Surya et al., 2021; Chatterjee et al., 2021). The limited readiness among these exporters to integrate social media into their business strategies raises critical questions about the underlying factors influencing this unpreparedness, particularly non-financial resources such as human capital, social capital, and digital competence, (Sendawula et al.,2021; Bannor & Arthura 2024; Baumuller et al., 2023, Kikawa et al., 2022). If this gap in readiness is not addressed, Uganda risks falling further behind in the global agricultural export market, potentially are stunting the sector’s growth and the broader economic development of the country. This study aims to investigate how web based information system influence agricultural marketing.
Objectives of the study
- To investigate the current challenges faced by farmers and traders in accessing agricultural market information.
- To assess the key features and functionalities required in a web-based agricultural marketing information system.
- To examine the influence of user knowledge and skills on adopting web based information systems.
Research questions
- What are the current challenges faced by farmers and traders in accessing agricultural market information.
- What are the key features and functionalities required in a web-based agricultural marketing information system?
- What is the influence of user knowledge and skills on adopting web based information systems.
