The Roles of Marketing Strategy on the Performance of Small and Medium Enterprises (SMES) in Southwest, Nigeria

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Date

2024-12

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Publisher

Lead City University, Ibadan

Abstract

This study centered on the Roles of Marketing Strategies in the performance of Small and Medium Enterprises (SMEs) in South West Nigeria, focusing on Market Segmentation, Product positioning, Pricing strategies, Distribution channels, and Promotional activities. The study adopted a quantitative approach. Data were collected from 482 SME owners through a survey, and hypotheses were tested at a significance level of 0.05.Linear regression analysis revealed a substantial influence of Marketing Strategies on SME performance, explaining 98.9% of its variability (R² = 0.989, p < 0.05). The standardized coefficient (β = 0.994, p < 0.01) suggests that a unit increase in marketing strategies leads to a 99.4% increase in SME performance. Furthermore, there exists a significant positive relationship between key performance indicators (KPIs) and SME performance, with a correlation coefficient of 0.960 (p < 0.05) from Pearson Product Moment Correlation analysis, underscoring the critical role of KPIs in evaluating SME performance. Different dimensions of marketing strategies also significantly influenced SME performance, explaining 95.6% of its variability (R² = 0.956, p < 0.05). The standardized coefficient (β = 0.96 6, p < 0.01) indicates that enhancing different marketing strategies could lead to a 96.6% increase in SME performance. Moreover, challenges and constraints in developing and implementing effective Marketing Strategies significantly impacted SME performance outcomes, explaining 89.8% of its variability (R² = 0.898, p < 0.05). The standardized coefficient (β = 0.948, p < 0.01) suggests that overcoming these challenges could result in a 94.8% increase in their impact on SME performance. Overall, the study emphasizes the pivotal role of effective Marketing Strategies in enhancing SME performance in South West Nigeria, while highlighting the substantial challenges SMEs face that must be addressed to optimize their Marketing efforts and overall performance. Keywords: Marketing strategies, SME performance, South West Nigeria, Key performance indicators (KPIs), Linear regression analysis Word Count: 284

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Keywords

Marketing strategies, SME performance, South West Nigeria, Key performance indicators (KPIs), Linear regression analysis

Citation

Kate Turabia