This study presents a structural equation model to describe the interrelationships between Digital Marketing, Brand Articulating Capability, Brand Resonance Capability, and Marketing Performance. It employs a cross-sectional study to examine the relationships among those research variables. This study utilized a survey methodology, which involved gathering data from 292 participants who were representatives of small and medium enterprises (SMEs) in South Sulawesi, Indonesia. Out of the 292 questionnaires distributed, 270 were considered appropriate for analysis. Four hypotheses were formulated and examined by employing structural equation modeling (SEM) analysis, which revealed several noteworthy findings. The results suggest that SMEs with a stronger focus on digital marketing are more likely to enhance their capacity to articulate their brand, leading to improved marketing effectiveness. In contrast, those with a higher level of Digital Marketing tend to acquire brand resonance capabilities. The findings of this study highlight the significance of the Brand Articulating Capability and Brand Resonance factors in improving the impact of Digital Marketing on Marketing Performance, hence facilitating the growth of SMEs.

Small and Medium Enterprises (SMEs) have a central role in the Indonesian economy. SMEs are a driver of the Indonesian economy and non-oil exports and have a significant role in absorbing labor. The SME sector in Indonesia generally has several obstacles, one of which is marketing constraints. The ability to build and communicate brands to customers tends to be low, so it has not been able to bind customers and affect the marketing performance of SMEs. This ability during the pandemic has worsened, as can be seen from the deteriorating marketing performance of SMEs. This study attempts to fill the research gap between digital marketing and marketing performance. This study offers the concept of Brand Articulating Capability to bridge the gap between Digital Marketing in increasing Marketing Performance. Three hypotheses were developed and tested in a sample frame of 230 SMEs in South Sulawesi, Indonesia. The analysis was carried out using Structural Equation Modelling to test the research. The study's findings support the model using the following variables: Digital Marketing has a significant effect on Marketing Performance, Digital Marketing has a significant impact on Brand Articulating Capability, and the Brand Articulating Capability variable has a mediating and strategic role in improving marketing performance.