Digital Marketing is a critical factor for SMEs in e-business. Currently, in SMEs gradual increase in use of e-business can be observed to gain a competitive advantage in highly aggressive markets and to achieve global access. Within all these e-business tools and techniques Digital Marketing does a most prominent role in achieving markets and access levels. Hence SME and the country can vastly benefit from adopting digital marketing because SMEs are considered as the engine of growth of a local economy. Therefore, for an SME to adopt digital marketing a certain set of factors should exist. The factors such as technology and infrastructure, market forces, supporting industry, finance and budget, skills and knowledge and management support is identified as an extension of the PERM model through a systematic literature review.