THE SIGNIFICANCE OF STRATEGIC MARKETING PRACTICES TO THE EFFECTIVE AND EFFICIENT PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISE (SMES)
ABSTRACT
Albeit, small and medium scale enterprise (SMES); as economic and industrial stanchions for any nation inclined towards meaningful and revolution is fast gaining attention, its development and management have been treated and handled with obvious levity, and ineptitude. This has contributed in no little way, to some of the myriad of problems facing SMEs survival and success in Nigeria. Aside other external factors, strategic marketing management are a major determining internal factor that greatly affects the performance of SMEs. To better appreciate the significance of this concept, this research work tries to expose the nature and result of the relationship between strategic marketing management practices and SMEs. Chapter one, which is the introductory chapter, focuses on the nature and structure of small and medium scale enterprises (SMEs). Also it tries to lock at the significance of strategic marketing practices to the success of SMEs. Chapter two reviews relevant literatures and previous work of scholars, theorists, and academics, on the in-depth nature and resultant effect of the relationship between SMEs and strategic marketing management practices. The third chapter discusses the methodology employed in gathering, and analyzing data for the purpose of the research. Chapter four centers on the presentation, analysis, and interpretation of gathered data for tacit and easy, more so, meaningful understanding. State the major findings in respect of each hypothesis. Chapter five makes a summary of the study, concision, recommendation, and suggestions for further studies.
TABLE OF CONTENT
Pages
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract vi
Table of Content vii
List for Tables x
CHAPTER ONE:
1.0Introduction 1
1.1 Statement of the Problem 5
1.2 Objective of Study 6
1.3 Research Question 7
1.4 Hypothesis 8
1.5 Significant of the Study 8
1.6 Scope and Limitations of the Study 9
1.7 Research Methodology 10
1.8 Literature Review 11
1.9 Plan of the Study 12
1.10 Definition of Terms 12
References 13
CHAPTER TWO: LITERATURE REVIEW
2.1 Marketing in Developing Countries 14
2.2 Industrial marketing 18
2.3 Strategic Marketing 21
2.4 Environments of Marketing 25
2.5 Organizational Performance Measures 28
2.6 SMEs Marketing Management 32
References 36
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 39
3.1 Restatement of Research Question 39
3.2 Research Design 40
3.3 Sampling Design and Sample Frame 41
3.4 Characteristics of the Study Population 41
3.5 Data Collection Instrument 42
3.6 Test and Validity and Reliability 42
3.7 Administration of Data Collection Instrument 43
3.8 Procedure for processing/Analyzing collected Data 43
3.9 Limitation of Methodology Used 44
References 45
CHAPTER FOUR: DATA ANALYSIS,DISCUSSIONS INTERPRETATION AND PRESENTATION
4.0 Introduction 46
4.1 Test of /Variability and Reliability 46
4.2 Classification of Firms Based on
Activities/Operation 47
4.3 Classification of Firms Based on Staff Strength 48
4.4 Gender Distribution of Respondents 49
4.5 Age Distribution of Respondents 49
4.6 Educational Background of Respondents 50
4.7 Classification of Respondents based on
Work Experience 51
4.8 Employment status of Respondents. 52
4.9 SMEs strategic Marketing Practice and Environment Perception. 43
4.10 Extent of Organization performance Measure 54
4.11 Hypothesis Testing 56
4.11.1 Hypothesis 1 56
4.11.2 Hypothesis 2 58
4.11.3 Hypothesis 3 59
4.12 Relationship between Strategic Marketing Practice Organizational Performance 61
4.13 Interpretation and Discussion 62
CHAPTER FIVE: FINDINGS, SUMMARY, CONCLUSION, RECOMMENDATION AND SUGGESTIONS FOR FURTHER STUDIES
5.1 Findings 64
5.2 Summary and Conclusion 65
5.3 Recommendation 66
5.4 Suggestion for Further Studies 68
Bibliography 70
Questionnaire 72
LIST OF TABLE
TABLE
Table 1: Test of Validity and Reliability
“ 2: Classification of Firms based on activities
“ 3” Classification of Firms according to Staff Strength
‘ 4: Gender distribution of Respondents.
“ 5: Age distribution of Respondents
“ 6: Education Background of respondents
“ 7: Classification of Respondents according to work Experience
“ 8: Respondents work/Employee status
‘ 9: Extent of Strategic Marketing practices and Environment Perception of SMEs under Survey
“ 10: Extent of Organizational Performance Measures
“ 11: X2 Contingency table (strategic Marketing Practice and Organizational Performance
“ 12: X2 Contingency table (Environment Perception and Organizational Performance)
“ 13: X2 Contingency table (Environmental Perception and Strategic marketing practice.
“ 14: Spearman rho correction (Extent of Relationship between strategic marketing practice and Organizational Performance)
CHAPTER ONE
1.1 INTRODUCTION
Small and medium scale enterprises (SMEs) is a burgeoning horizon in the local and global arena. The dire need and understanding of its revolutionary effects on any economy is rife. This have made it remain very prominent in the industrial growth of the sub-sector have been intensified. This is evident in the various attempts to inspire developing countries to accentuate and actively participate in small and medium scale enterprises.
Nigeria is a country of more than 130 million people, with a lot of human and natural resources. The volume of trade in the Nigeria economy is very substantial and enormous, more so, are the types of economic activities becoming specialized and advanced. The global trade activities occasioned by Nigeria’s trade development focus mainly of Nigeria in the context of West Africa. According to Olubajo (1985) about 70% of Cargo traffic to West Africa countries from the United Kingdom is for Nigeria. This implies that without Nigeria as a major market, adversely affected. Nigeria also exports such products like cocoa, palm kernel, rubber, coffee, and few industrial products. If SMEs are country would earn a substantial foreign exchange. One of the concentrating her resources on SMEs is the expectation that such investment could help attain her import substitution, and export promotion drive objectives, invariably, creating a relieve on some of the problems of her balance of payments, the National income and Gross Domestic products (GDP), low per capita income, poor standard of living, social insecurity, inter alia.
Nigerian governments have over the yeas taken actions to help increase participation and productivity in small and medium scale enterprises (SMEs). Some of these expedient actions include provision of subsidies in form of tax holidays and other support services, integrating the bankers’ committee to address the paucity of financial resources due to low domestic savings insufficient to match with the level of investment consistent with national economic growth targets, creating enabling environment, establishing industrial development Centres (IDC), like the National economic schemes and programmes import duty draw back, export credit guarantee scheme, export development and expansion fund, import duty draw back, export credit guarantee scheme, export development and expansion fund, structural adjustment programme, (SAP) with the expectation that new entrepreneurial spirits and initiatives would be ignited to make SMEs flourish. No doubt, much emphasis was placed on SMEs to look inward, develop and increase their raw materials supply, and boosts output and export trade. Today, history is being made towards the creation of tomorrow’s potential multinational corporations (Sanusi, 2003). The steps taken by various governments were predicated on the recognition of the strategic importance of SMEs to the economy, their low survival capacity, ad the need to develop entrepreneurial abilities of Nigerians, despite these efforts by the government, the participation of Nigerians in, and the performance of SMEs have been abysmally low. This malign situation, as argued by many theorists, is traceable to inefficient and ineffective management practices.
The main motivation for being in business is to achieve organizational goals. A lot of company decisions affect the degree of achievement of organizational goals (Osuaguwu, 2002). As regards SMEs, decisions on products/services, and marketing affect the profitability of any SME. The development in SMEs has always been founded on the drive to achieve organizational goals efficiently. All management practices should, therefore, be tailored towards the achievement of organizational goals.
Challenged by the overriding need to achieve organizational goals, SMEs can explore new avenues to achieve these organizational goals. A variety of approaches can be used by are generally called strategic management. According to Jain (1983) as cited by Osuagwu (2002), the thrust on strategic management has given rise to strategic marketing.
Marketing considerations together with those of other functional areas of business play an important role in structuring corporate objectives and strategies. The corporate strategy of a firm represents the pattern of resource allocation in order to achieve the desired goals, and the level of interaction of an organization with its environment. Corporate strategy is therefore the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve stated objective (Adeleke, Ogundele, Oyenuga, 2003).
Marketing, both as a discipline and a way of life, has a germane role lot play in the economy of a developing country like Nigeria. Without effective marketing activities, there may be little progress in the national economy of Nigeria. It may be justified to assert that it is through efficient and effective marketing practices that a developing country like Nigeria can participate efficiently and effectively in small and medium enterprises (SMEs). With advancing technology and increasing productivity, coupled with an ever changing environment (with its attendant shocks and surprise), the future growth of an economy can be said to be a function of the effectiveness and efficiency of its marketing practices.
As a result of the recent economic reforms in the country, e.g deregulation, privatization and commercialization exercises, SMEs are undergoing rapid and radical changes. They are adjusting to these economic shifts. To understand and take advantage of the shifts, which may be threats or opportunities, management of SMEs first need to understand the important trends shaping the SMEs environment and the strategic responses of competitors. Strategic decisions by SMEs must take into account economic, political, competitive, technological, legal, social, and cultural pressures. Among all the organic business functions in a company marketing is the most exposed to changes in the external environment (Mann, 1980). It is important to note that the success of SMEs through their effective and efficient performance means that the numerous benefits of industrialization will not elude Nigeria. Suffice it to say that small and medium scale enterprises (SMEs) are behind the laudable economic success, growth and development of today’s newly industrialized countries (NIC) such as China, Japan, Singapore, Korea, etc.
1.1 STATEMENT OF THE PROBLEM
The low performance of small and medium scale enterprises (SMEs) in Nigeria consequent o lack of strategic marketing know – how initiated the need for this research. It is perhaps pertinent to say that functional marketing practices in SMEs play a vital role in the achievement of organizational goals.
Lack of marketing perspective makes optimum corporate strategies unsuccessful when there are environment changes and shifts, the influences of the environment (in terms of threats and opportunities), and the marketing practices used in achieving objectives in the face of the environmental influences. The importance of marketing strategies varies form one industry to another, just as, the impact of the Nigeria business environment on particular industries varies often. Effective understanding of industry dynamics will go a long way in aiding management practices in specific industries.
Environment of business and its strategy have been empirically demonstrated to have significant impacts on organization performance. According to Henderson and Poole (1991), entrepreneurship involves more than invention, inventions have treated strategy to be under the control of organizational managers, while business environment have been seen as constraints, which under certain conditions, organizational managers can proactively, change.
Some researchers have been interested in explaining variations in business firms’ performance across industries. Many have assumed that variable relationships may be appropriately estimated by analyzing data from a cross-section of firms representing various industries. In these researches, natural business laws are assumed in exist regardless of industry classification. However, some have argued that the homogeneity assumption laws may exist only in the context of similar strategies within an industry.
In the light of the above, three key areas of environment perception, marketing strategies, and organizational performance are to be investigated. An organization’s marketing strategy is tied to its organization goals and environment perception. Differences in organizational goals and perception of environment characteristics result in a variety of marketing strategies. The standards of performance by which over all marketing operations are generally evaluated are marketing profit, sales, volume, market share, and marketing cost.
1.2 OBJECTIVES OF STUDY
Download This Project Material Now!!
Do you need help? Talk to us right now: (+234) 08060082010, 08107932631 (Call/WhatsApp). Email: [email protected].IF YOU CAN'T FIND YOUR TOPIC, CLICK HERE TO HIRE A WRITER»
