Effects of Marketing Strategies on the Performance of Small and Medium-Scale Enterprises in Kogi State

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue II, February 2019 | ISSN 2454–6186

Effects of Marketing Strategies on the Performance of Small and Medium-Scale Enterprises in Kogi State

Momoh I. Yalo¹, Dare Joseph Enimola², Akeem Tunde Nafiu²

¹Department of Marketing, Federal Polytechnic, Idah, Nigeria
²Department of Business Administration, Kogi State University, Anyigba, Nigeria

Abstract- This study focused on the effects of marketing mix strategies on the performance of SMEs in Kogi State. To achieve the study’s objectives, a survey research design was adopted. A purposive sampling was used, and 300 respondents were selected. Findings show that promotion strategy relates negatively and significantly with sales and profitability performance of SMEs in Kogi State. Findings further show that distribution strategy significantly and positively relates with sales performance; while pricing strategy significantly and positively relates with the profitability performance of enterprises in Kogi State. The study concluded that marketing mix strategies have significant effects on sales and profitability performance of SMEs in Kogi State. The study recommends that SME owners should adopt less of promotion strategy to achieve high sales and profitability performance in the business environment of Kogi State, and that more aggressive distribution strategy and pricing strategy should be adopted to sustain sales and the profitability performance of their enterprises in Kogi State.

Keywords: Marketing Environment, Marketing Strategies, Sales, Profitability

I. INTRODUCTION

Today, some SMEs are struggling to cope with the competition, and others have experienced improved performance in the business environment of Kogi State. Ogbadu (2012) also noted that the tough competition has characterized SMEs more. The successful SMEs have been observed for higher performance (in terms of sales and profitability) in Kogi State. This is perceived the antecedent of effective marketing mix strategies. Mustapha (2017) expressed that marketing strategy is an important tool for any SME to remain in competitive market environment and be stronger. Without the appropriate marketing strategy, an enterprise cannot survive in today’s competitive environment nor witness superior performance. The adoptable marketing mix strategies are advertising, promotion, distribution, customer servicing, packaging, sales and distribution strategies. The a-priori expectation is that marketing mix strategies influence increased profitability and sales of SMEs. Mustapha (2017) stressed that ineffective marketing strategy has negative effect on the organization’s performance, product quality, customer satisfaction and profitability.

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