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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The issue of poor marketing activities/strategies of Small-Scale Enterprises/business is truly born of our time; it is product of the standard of timing enjoyed by advanced communities and the ways in which those communities organize the resources to meet the standard. The marketing is as old as trade itself but the marketing of small scale products, as it is introduced today has affected a large segment of the economy because of the important position and role occupied by small and medium scale business. But despite this recognized status of small scale businesses and the adoption of different strategies of marketing capacities and satiated appetites is still a dream.

The ideal marketing strategies for Small-Scale Businesses should be adequate market to cover the job of getting people to buy. The persuasion of the customer should be the centre of a whole complex of activities ranging from the conception of the products through to a point beyond its sale where every endeavour is made to sustain the good will of the customer towards the product and it’s well identified producer.

To cover this spectrum of activities and to expand the success rate and the performance of the economy through the small and medium scale enterprises marketing strategy can therefore be defined as adjusting the whole activity of a business to the needs of the customer or potential customer and to give such products an advantage over its competitors. This is really a definition of attitude within the small scale enterprise which demands absolute customer orientation the organization wide generation of market intelligence pertaining to current and future customer need, dissemination of the intelligence across department and organization-wide responsiveness to it. (Crawer 2004).

The effective strategy for the marketing of small scale business covers every action by the fun and its employees which in any way might affect customer attitudes towards the fun and products or service it suppliers. The allocation and the use of resources to develop new products, the design of products, the efficiency of production, packaging advertising credit, branding, the method of personal selling distribution, ability to deliver, after sales services are the influence on the success of marketing small scale businesses today.

According to Lowly (2005) marketing removes the distinction between mailing and selling, both affect customer attitudes whereas marketing is a comprehensive relationship to the market, selling is specifically concerned with affecting customer attitudes so that they favour a particular product or services. According to him original investment decisions should be based on marketing, as should be the continuing profitability of such decisions.

Most developing countries including Nigerians are undergoing reforms that opening their economics to greater international competition meanwhile the domestic factors markets are not adequately developed to ensure the successful adoption of SMEs to this new competitive environment, unlike large firms Small scale businesses are at a disadvantage and require efficient and effective marketing strategies in order to survive and raise profitability level.

The importance of small scale business to long-term economic stability, decries from their size and structure which under adequate marketing condition allow them the flexibility and ability to weather adverse condition of economic. small scale business play an important role in fostering income stability, growth and development as well employment modern economics operate as complex network of firms in which a firm’s competition position depends, in part, on the efficiency of its suppliers. Therefore, small scale business competitiveness affects the competitive position of the economy as a whole. In addition, adopting the best marketing strategy for small scale businesses improved the efficiency of domestic markets and make productive use of scare resources, such as capital, facilitating long term economic growth.

Despite this advantage offered by small scale businesses they have limited access to capital markets, both locally and internationally in part because of higher risk of informational barriers and the higher cost of intermediation for smaller firms. As a result, small scale businesses often cannot obtain long term finance in the form of long term debt and equity, hence this is need for small scale businesses in Nigeria to understand the complexity, modernity and intensity of modern marketing strategy which is basically to maintain the maximum profitability of capital equipment in buyers markets which are steatite under conditions of extensive competition. Effective marketing strategy that will allow the small scales businesses to stand out against all competition need to consist of amalgamation of design, packaging, branding, advertising, price policy and be used to create the image of a unique product.

1.2 Statement of the Problem

The problem of small scale businesses are enormous ranging from restricted access to loans and grants, debt equity and insufficient supply of skilled workers and the general inability to gain advantage over competitions. They face constraints in the technical knowhow to harness marketing information to gain competitive edge.

The diminished role of small scale businesses to public contracts and sub contracts often because of cumbersome bidding procedure and lack of information inhibit participation in this market. Inefficient distribution channels and their controls by large firms pose important limitations to marketing for small scale businesses. Other problems are international competition, taxation and tariffs, legal problem management skills and training and institutional constraints make it imperative for small scale businesses to adopt effective and efficient marketing strategies.

1.3 Objective of the Study

The objective of this study is to determine the best marketing strategy for Small-Scale businesses, with the following specific objective.

To identify the existing marketing activities for small scale operations.
To determine a practicable marketing strategy for small scale businesses that gives competitive advantage and long terms profitability.

To identify the constraints to the survival of small scale businesses and the adoption of a good marketing strategy.

Formulate ways and recommendations to sustainable marketing strategies for Nigerian small scale businesses.

1.4 Research Hypotheses

The study sought to investigate the marketing activities of small scale businesses and its impact on the performance on Chuks supermarket Lokoja. The research hypotheses are stated below:

Hypothesis One

Ho1: There is a significant relationship between poor marketing activities and sales performance

Ho2: There are no significant relationship between poor marketing activities and sales performance

Hypothesis Two

Ho1: There is a significant relationship between poor marketing activities and marketing mix theory

Ho2: There are no relationship between poor marketing activities and marketing mix theory

1.5 Significance of the Study

The study will help in identifying some of the challenges being faced by small scale businesses in the marketing of their products. It would further help small scale business practitioners to develop marketing strategies that would translate to improve product performance and increased profitability.

Similarly, this kind of research will afford small scale business operators the opportunity to know the need and tastes of their customer and how to satisfy them maximally. Furthermore, small scale businesses operating in the era of globalization will brace themselves up for competition afforded by imported goods and finding a way of maintaining relevance in the market.

1.6 Scope of the Study

The study focuses only on the marketing activities for Small-Scale Enterprises in Nigeria with Chuks supermarket in Lokoja as a case study.

The study hopes to cover Chuks Enterprise within this area with product market. A specific product /or line of related products that can satisfy a particular set of needs and wants for all people on organization that are willing and able to purchase the products.

Strategic Marketing: Involves planning, objectives, control units, setting objectives for target markets and translation of such plans into short-term result with implementation and evaluation techniques.

Positioning Strategy: The combination of product channel of distribution, price and promotion strategies selected by the management to position a firm against its key competitors in the needs and wants of the target market.

1.7 Limitations to the Study

In the course of carrying out the research, some challenges were encountered by the researcher that stood as limitation to the study and they include, limited time given for the completion of the study and financial challenges due to rising cost of text books, internet browsing, etc. the researcher could not visit different libraries to gather relevant information due to high cost of transportation. Also, some respondents could not provide their own opinion for reason of being busy.

1.8 Definition of Key Terms

Small Scale Business: a business unit or organization with less than 50 employees on its payroll. Such organization also uses low technology for production process.

Marketing: The performance of business activities that has to do with direct flow of goods and services from the producer to the consumer or users in order to satisfy customer and accomplish the company’s objective.

Strategy: A method, or series of activities and maneuvers designed to achieve alone or more long term overall goals under conditions of uncertainty

Competition: The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Profit: The financial benefit realized when revenue generated from a business activity exceeds the expenses, costs and taxes involved in sustaining the activity.

Effect: A change which is the result of consequence of an action.

Product: A product is the item for sale. A product can be a service or an item, it can be physical or in virtual firm.

Economy: The state of a country or region in terms of production and consumptions of goods and services and the supply of money

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Full Project – The effect of poor marketing activities on small scale businesses

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Full Project – The effect of poor marketing activities on small scale businesses

Full Project – The effect of poor marketing activities on small scale businesses

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