World Journal of Innovative Research (WJIR)

ISSN: 2454-8236, Volume-8, Issue-2, February 2020 Pages 59-64

Effect of Marketing Strategies on the Performance of

Small and Medium Scale Enterprises in Benue State
Adamu Garba

 negative effect on the organization's performance, product

Abstract— This study work examined the examine the effect quality, customer satisfaction and profitability. Small and
of marketing strategies on the performance of small and medium enterprises operators need to provide a quality
medium scale enterprises in Benue State. The researcher used product with good packaging that satisfies customer needs,
primary data for the study from population of 490 registered
offering affordable price and engaging in wider distribution
small and medium scale enterprises. A sample of 220
respondents used for the study and information from the and back it up with effective promotion strategy in order to
respondents were obtained by the use of a structured survive the pressure from global market competitive
questionnaire. The data collected were analyzed using Ordinary environment.
Least Square Regression analysis. Also, the hypotheses of the Marketing is generally considered as the process by which
study were tested using the probability value of the regression companies create value for customers and build strong
estimates. The result of the regression analysis indicates that a
customer relationships in order to capture value from
pricing (PRI) has a positive effect on Performance of Small and
Medium Scale Enterprises in Benue State (PFM) and the customers in return (Cavusgil & Zou, 2014). A strategy on
relationship is statistically significant (p<0.05) and in line with a the other hand is a firm's game plan for competition and
priori expectation. Promotion (PRO) was negatively related survival in a turbulent environment. According to Mohamed
with Performance of Small and Medium Scale Enterprises in et al., (2014) a marketing strategy is a process that can allow
Benue State (PFM) and the relationship is not statistically an organization to concentrate its limited resources on the
significant (p>0.05) and not in line with a priori expectation.
greatest opportunities to increase sales. Sales performance is
Branding (BRD) is positively related to with Performance of
Small and Medium Scale Enterprises in Benue State (PFM) and the sum of all efforts that it takes to deliver a product or
the relationship is statistically significant (p<0.05) and in line service, therefore is measured in terms of items produced and
with a priori expectation. This means that a unit increase in services performed within a given time period.
branding will lead to a corresponding increase in Performance
of Small and Medium Scale Enterprises in Benue State (PFM) There are several marketing strategies that can take any
by a margin of 7.0 percent. It was concluded that the
small and medium enterprises from mediocre to success
performance of Small and Medium Scale Enterprises is
inadvertently tied to how management can utilize the marketing when utilized correctly. Breaking into a new business climate
strategies at its disposal. It was recommended among others and finding customers is hard work, but when equipped with
that management of the Small and Medium Scale Enterprises in innovative ideas and proven techniques, financial markets
Benue State should ensure that they intensify effort in sales personnel can become extremely successful (Kisaka,
promotion so that it can increase its performance. 2012). Key small and medium enterprises marketing
Index Terms— Marketing, Strategies, SMEs, Performance,
strategies will always include an in-depth review of the value
Benue State, Nigeria.
of follow-up. All successful sales intermediaries understand
that consumers need to be contacted again and again in order
I. INTRODUCTION to make a vital connection.
Marketing strategy has become an important tool globally
Small and Medium Enterprises (SMEs) are the engine of
for any organization to remain in competitive market
economy growth and development globally, Nigeria
environment and wax stronger. Marketing strategy is a vital
inclusive. By their very nature, SMEs constitute the most
prerequisite of industry's ability to strengthen its market share
viable and veritable vehicle for self-sustaining industrial
and minimize the impact of the competition (Adewale,
development (Oyebamiji, Kareem and Ayeni. 2013). SMEs
Adesola, & Oyewale, 2013). Owomoyela, Oyeniyi, and Ola,
in developing countries, like Nigeria are struggling to survive
(2013) also see marketing strategy as way of providing
under intense competitive environments both domestic and
quality product that satisfies customer needs, offering
international. Oyebamiji, Kareem and Ayeni (2013)
affordable price and engaging in wider distribution and back
discovered that SMEs in Nigeria have not performed
it up with effective promotion strategy (Adewale et al, 2013).
creditably well and hence have not played the expected vital
Marketing strategy draws its strength from the overall
and vibrant role in the economic growth and development of
corporate strategy. A marketing strategy outlines the strategic
Nigeria. They noted that the situation has been of great
direction and tactical plans that marketing teams must
concern to the government, citizenry, operators, and
implement to support the company’s overall objectives
practitioners. These challenges could be as a result of
(Ebitu, 2015).
perceived ineffective marketing strategy which is having
Marketing strategies and organizational performance have
Adamu Garba, Department of Business Administration, Nasarawa State been grounded on marketing mix theory and theory of push
University, Keffi, Nasarawa State and pull. The topic on marketing strategies was chosen as an

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 Effect of Marketing Strategies on the Performance of Small and Medium Scale Enterprises in Benue State

effort to find out whether different marketing strategies and perhaps because of its simplicity, the use of this
undertaken by the small and medium enterprises in the study framework remains strong and many marketing textbooks
area has any effect on the performance. The main objective of have been organized around it.
this research work is to examine the effect of marketing Push and Pull Theory
strategies on business performance with special reference to The Push and Pull theory of customer service are two
small and medium enterprises (SMEs) in Benue State, theories, the "Push" theory and the "Pull" theory. The theory
Nigeria. of push pull has been most often applied to marketing
Objective of the Study processes by businesses and organizations. Push or pull is
The main objective of the study is to examine the Effect of defined by whether the customer or the business initiates the
Marketing Strategies on the Performance of Small and activity. According to Zmud (1984) the theory of push and
Medium Scale Enterprises in Benue State. The specific pull was developed in 1911 by Fredrick Winslow Taylor in
objectives of the study are to: his work on "The Principles of Scientific Management."
i. Examine the effect of pricing on the performance of Business took his ideas to heart and started focusing on
small and medium scale enterprises in Benue State. becoming more efficient than their competitors. This led to
ii. Determine the effect of promotion on the performance determining the needs of the potential customer and pushing
of small and medium scale enterprises in Benue State. the solutions out to those customers. In today's market,
iii. Assess the effect of branding on the performance of pushing solutions are sometimes seen by the customer as
small and medium scale enterprises in Benue State. intrusive or overlooked by the customer as the solution gets
Hypotheses of the Study lost due to information overload. Many companies are
H01: Pricing has no significant effect on the performance moving away from the push theory to a pull theory. That is,
of small and medium scale enterprises in Benue State. they are providing the information and solutions in a
H02: Promotion has no significant effect on the generally accessible format and allowing the customer to
performance of small and medium scale enterprises in determine what best suits their needs.
Benue State. One of the base assumptions about pushing solutions
H03: Branding has no significant effect on the performance (products, information, etc.) to customers is that the business
of small and medium scale enterprises in Benue State. or organization can anticipate the needs of the customer in
advance of the need and prepare the solution ahead of time
(Cooper & Kleinschmidt, 2015). Organizations that
II. LITERATURE REVIEW emphasize the push theories often do so to increase
Theoretical Framework efficiency. They believe that if, for instance, they create the
Marketing Mix Theory penultimate user manual that they will cover all of the
According to Grönroos, (1994) the theory of Marketing questions the customer might have and thereby limit the
Mix was coined by Borden. Professor Neil Borden, published amount of contact the customer needs to make to the
a retrospective article detailing the early history of the organization. As well, by using a push model the organization
marketing mix in which he claims that he was inspired by can limit those areas for which service is provided which
Culliton's idea of 'mixers', and credits himself with again might provide efficiency in the training of support
popularizing the concept of the 'marketing mix. The theory is personnel. This model has become more difficult to
still used today to make important decisions that lead to the implement as organizations are believe they may be
execution of a marketing plan. The idea of a marketing mix sacrificing effectiveness for the efficiency.
theory is to organize all aspects of the marketing plan around Relationship between Marketing Strategies and
the habits, desires and psychology of the target market. Performance of SMEs
Marketing Mix Theory combines a number of components in Spillan and Parnell (2006) acknowledged that the links
order to strengthen and solidify a product's brand and to help between strategy and performance have been substantiated at
sell the product or service. The components combined by this firm and functional levels, although there is often overlap
are products, price, promotion and place forming the Four between the two. At the business level, strategy typologies -
P's. These four P's are the parameters that the marketing also referred to as gestalts, frameworks, and archetypes -
manager can control, subject to the internal and external identified several generic strategic approaches and were
constraints of the marketing environment. The goal is to developed and utilized as a theoretical basis for identifying
make decisions that center the four P's on the customers in the strategic groups in industries. Porter’s (1985) generic
target market in order to create perceived value and generate strategy typology also infers competitive and marketing
a positive response. dimensions and has been widely tested. According to Porter,
a business can maximize performance either by striving to be
The marketing mix framework was particularly useful in the low cost producer in an industry or by differentiating its
the early days of the marketing concept when physical line of products or services from those of other businesses;
products represented a larger portion of the economy either of these two approaches can be accompanied by a
(Grönroos, 1994). Today, with marketing more integrated focus of organizational efforts on a given segment of the
into organizations and with a wider variety of products and market (Haghighinasab, Sattari, Ebrahimi and Roghanian,
markets, some authors have attempted to extend its 2013).
usefulness by proposing a fifth P, such as packaging, people, Presumably, differentiated businesses should emphasize
process, etc. Today however, the marketing mix most marketing as a means of distinguishing their products and
commonly remains based on the 4 P's. Despite its limitations services from those of their rivals. Likewise, Porter’s focus

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 World Journal of Innovative Research (WJIR)
ISSN: 2454-8236, Volume-8, Issue-2, February 2020 Pages 59-64

orientation is consistent with the marketing themes of organizations pursue strategies like product differentiation,
product positioning and target marketing. According to niche marketing as they pursue to be perceived as the
Haghighinasab et al., (2013), performance can be measured cheapest in the markets in terms of cost.
based on growth, market share and profitability. The higher
the indices the greater the performance of the business and Njoroge (2015) studied on Marketing strategies and the
vice versa. performance of enterprises in Matuu town, Machakos
Ardjouman and Asma (2015) further defined performance County, Kenya. To achieve the study objectives, the study
in terms of output such as profitability or quantified used a descriptive
objectives. This means that performance of SMEs has to do research design and the population of interest comprised
with both behaviour and results. This explanation covers all the small and medium enterprise in Matuu town,
achievements of anticipated levels as well as objective Machakos County. A sample of 86 SMEs was selected by
review and setting. When the behaviour of management is using simple random and stratified sampling methods. The
right, then the anticipated levels of output would be achieved study established that customer relationship marketing
and vice versa for failure. When behaviours of management strategies and technology based marketing strategies have a
towards marketing strategies are geared on a right direction, positive insignificant influence on the performance of SMEs
then this positively affect the performance of SMEs. Some in Matuu town while innovative marketing strategies have a
strategies which could affect performance of businesses are significant negative relationship with the performance of
the product quality, marketing communication and SMEs in Matuu town. Locally, studies have been done on
relationship marketing. Market strategies, however from the above literature little has
Empirical Review been done on effects of marketing strategies on sales
Ebitu (2016) examined Marketing strategies and the performance of small and medium enterprises hence the
performance of enterprises in Akwa-Ibom State, Nigeria. The research gap.
study was motivated by the fact that SMEs in Akwa Ibom
State find themselves in a competitive environment and may Uslay (2005) studied the role of pricing strategy in market
not know which marketing strategy is effective in improving defense. According to the researcher, the price variable is
their business performances. The study adopted the survey among the most powerful instruments in the arsenal of the
method. 240 questionnaires were issued to SMEs in the three executives to achieve entry deterrence objectives. There are
senatorial districts of the State. The study revealed that there two main pricing strategies that firms may use to defend
is a significant impact of product quality strategy and against a competitive market entry. The first of these options,
relationship marketing strategy on the profitability and limit pricing (or entry deterring price), may be utilized prior
increased market share of SMEs in Akwa Ibom State. to competitive entry. The second option, aggressive
Further, Ardjouman & Asma (2015) investigated the (predatory) pricing, may be executed post-entry. The
Marketing management strategies affecting performance of effectiveness of both of these options is still controversial.
enterprises (SMEs) in Cote d'Ivoire. The study adopted an For example, proponents argue that these strategies are
exploratory and descriptive survey research design. The anecdotal in nature. The potential contributions of the
findings of this study revealed that there is a high level of marketing discipline have been recognized and called upon to
awareness of the significance roles played by marketing help resolve the conflict.
management strategies in the performance of SMEs. This study examines the role price plays in preemptive and
post-entry market defense of firms. As such, the questions
Ebitu et al., (2015) did a study on Marketing problems and tackled include but are not limited to: how effective is price
the performance of selected enterprises (SMEs) in Southern as an entry-deterrence tool; in conjunction with firm and
Senatorial District of Cross River State in Nigeria. The area market specific barriers to entry; and as a post-entry
of study was Calabar Metropolis, while the study frame were retaliation mechanism? What are the facilitating conditions
owners and managers of SMEs. The sample size of the study for limit, aggressive (predatory), competitive and
was 150 and data was collected with the use of structured supra-competitive pricing? What are the (long-term)
questionnaire. The findings highlighted in the study were; consequences of these strategies? It was found that both limit
there is a significant relationship between the marketing pricing and predatory pricing can serve as effective strategies
problems experienced by SMEs and the increase in their for the incumbents’ market defense. Predatory use of pricing
profit margin and sales volume. in network industries may diminish consumer welfare.
Results also suggest that firm specific barriers have a more
Kisaka (2012) carried out a study on relationship between significant role in market defense than market specific
marketing strategies and the performance of savings and barriers. Insights and frameworks based on the marketing
credit societies in Mombasa District. The study used a philosophy are also presented with the hope of advancing the
descriptive research design to evaluate the effects of the ongoing debate on the role of pricing in performance of entry
marketing strategies on the performance of Savings and level business organization.
Credit Co-Operative (SACCO). The target population Prendergast and Pitt (1996) review the basic functions of
constituted the chief executive officer, the marketing packaging, and define them by their role in either logistics or
manager and the loans manager/officer. A census population marketing. The logistical function of packaging is mainly to
of 84 respondents was considered for this study. The findings protect the product during movement through distribution
of the study revealed a causal relationship between marketing channels. In the marketing function, packaging provides an
strategies and the performance of SACCOs. Most of these attractive method to convey messages about product

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 Effect of Marketing Strategies on the Performance of Small and Medium Scale Enterprises in Benue State

attributes to consumers at the point of sale. It may be difficult for accepting or rejecting hypotheses: If the probability value
to separate these two package functions, as they are usually of bi [p (bi) > critical value] we accept the null hypothesis, that
needed. The package sells the product by attracting attention is, we accept that the estimate bi is not statistically significant
and communicating, and also allows the product to be at the 5% level of significance. If the probability value of bi [p
contained, apportioned, unitized, and protected. (bi) < critical value] we reject the null hypothesis, in other
Whatever be the logistics considerations, packaging is one words, that is, we accept that the estimate b1 is statistically
key food product attribute perceived by consumers. It cannot significant at the 5% level of significance.
escape performing the marketing function, even if a company
does not explicitly recognize the marketing aspects of Model Specification
packaging. The package is a critical factor in the The model specification for the analysis is as follows: The
decision-making process because it communicates to general regression equation states that:
consumers. Intention to purchase depends on the degree to 𝑌𝑖 = 𝛽𝑜 + 𝛽1 𝑋1 + 𝛽2 𝑋2 + 𝛽3 𝑋3 + 𝑈 - (1)
which consumers expect the product to satisfy them when Where 𝑌𝑖 = dependent variable (financial performance
they consume it (Kupiec and Revell, 2001). How they
measure)
perceive it depends on communication elements, which
become the key to success for many marketing strategies. 𝛽𝑜 = the intercept term
𝑋𝑖𝑡 = independent variable
III. METHODOLOGY 𝛽1 , 𝛽2 𝛽3 =Regression coefficient
This study adopted the survey research design using U = error term
primary data from purposively selected Small and Medium The functional relationship is represented in a model form
Scale Enterprises (SMEs) from the three geopolitical zones in as follows:
Benue namely; Makurdi, Otukpo and Katsina Ala. A total of PFM = f (PRC, PRO, BRD) - (2)
two hundred and fifty (274) SMEs were studied from the
three geopolitical zones using the managers of each of the Where,
SMEs to gather information on the subject matter of the PFM = Performance of SMEs
study. PRC = Pricing
The data for the study was collected using questionnaire, PRO = Promotion
with the aid of a computer-based Statistical Package for BRD = Branding
Social Sciences (SPSS version 23.0). The validity and the The model is written in explicit form and it reflects the
reliability of the instrument was established using the factor dependent variable and the independent variables for the
analysis. It was established that the instrument is valid and study with the error term.
reliable as the validity score that considered PFM = β0 + β1PRC + β2PRO + β3BRD +µit (3)
Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test of Sphericity Where:
is above the threshold of 0.5 and 0.7 for the reliability using β0 = the intercept term
the Cronbach Alpha Coefficient. The multiple regression β1 - β3 = Regression coefficients
analysis was used to assess the nature and degree of µit = Stochastic error terms
relationship between the dependent variable and a set of (𝑿𝟏 ) = Pricing; a priori expectation is positive
independent or predictor variables. However, the probability (𝑿𝟐 ) = Promotion; a priori expectation is positive
value o the estimates will be used to test the three (3)
(𝑿𝟑 ) = Branding; a priori expectation is positive
hypotheses of this study.
Decision rule: The following decision rules were adopted

IV. RESULTS AND DISCUSSION

Table 1: Regression Coefficients
Model Unstandardized Coefficients Standardized t Sig. Collinearity Statistics
Coefficients

B Std. Error Beta Tolerance VIF

(Constant) 22.512 11.912 1.890 .043

1 PRC .292 .257 .272 1.136 .027 .723 1.383

PRO -.152 .275 -.119 -.552 .587 .886 1.128
BRD .079 .259 .070 .304 .026 .793 1.261
a. Dependent Variable: PFM
The result of the multiple linear regression as shown in Small and Medium Scale Enterprises (PFM) by margin of
Table 1 indicates that Pricing (PRC) has a positive effect on 27.2 %. Using the probability value of the estimate, p (b1) <
Performance of Small and Medium Scale Enterprises (PFM) critical value at 0.05 confidence level. Thus, we reject the
and the relationship is statistically significant (p<0.05) and in null hypothesis. That is, we accept that the estimate b1 is
line with a priori expectation. This means that a unit statistically significant at the 5% level of significance. This
increases in marketing strategies proxied by Pricing will implies that Pricing has a significant effect on Performance of
result to a corresponding increase in the Performance of Small and Medium Scale Enterprises in Benue State

62 www.wjir.org
 World Journal of Innovative Research (WJIR)
ISSN: 2454-8236, Volume-8, Issue-2, February 2020 Pages 59-64

This is in line with the findings of Uslay (2005) who considerable number of SMEs in Benue State Nigeria had
studied the role of pricing strategy in market defense. adopted various degrees of marketing strategies and pricing
According to the researcher, the price variable is among the and Branding have significant positive significant effect on
most powerful instruments in the arsenal of the executives to the performance of small and medium enterprises in the study
achieve entry deterrence objectives. It was found that both area. However, pricing the product too low or too high can
limit pricing and predatory pricing can serve as effective have unintended consequences performance. Pricing
strategies for the incumbents’ market defense. Predatory use strategies give SMEs the flexibility in setting prices and win
of pricing in network industries may diminish consumer new business or maintain prices and increase the profit
welfare. margin. The findings of this study indicates that promotional
Promotion has a negative effect on Performance of Small strategies had a negative insignificant effect on the
and Medium Scale Enterprises (PFM) and the relationship is performance of small and medium enterprises in Benue State.
not statistically significant (p>0.05) and not in line with a As a result, the employment of effective promotional
priori expectation. This means that a unit increases in strategies can help to keep customers informed of what the
marketing strategies proxied by Promotion (PRO) will result firm offered, promotional strategies informed clients or
to a corresponding decrease in the Performance of Small and customers on both the price where to get the product and the
Medium Scale Enterprises (PFM) by margin of 11.9 %. price. It is concluded therefore that the performance of Small
Using the probability value of the estimate, p (b1) > critical and Medium Scale Enterprises is inadvertently tied to how
value at 0.05 confidence level, we accept the null hypothesis. management can utilize the marketing strategies at its
That is, we accept that the estimate b2 is not statistically disposal to improve the performance of small and medium
significant at the 5% level of significance. This implies that scale enterprises in the Benue State.
Promotion has no significant effect on Performance of Small Recommendations
and Medium Scale Enterprises in Benue State. Based on the result of the study, the following
recommendations are made:
This is in line with the findings of Njoroge (2015) who 1. It was recommended that management of the Small and
studied on Marketing strategies and the performance of Medium Scale Enterprises in Benue State should ensure that
enterprises in Matuu town, Machakos County, Kenya and they intensify effort in promotion so that it can increase its
found that customer relationship marketing strategies and performance.
technology based marketing strategies have a positive
insignificant influence on the performance of SMEs in Matuu 2. The SMEs in Benue State should continually adopt
town. various types of pricing strategies as these tactics were found
As shown by the result of the multiple linear regression, to have a positive impact on the performance of small and
Branding (BRD) has a positive effect on Performance of medium scale enterprises in the study area.
Small and Medium Scale Enterprises (PFM) and the
relationship is statistically significant (p<0.05) and in line 3. SMEs must continually embrace branding promotion
with a priori expectation. This means that a unit increases in strategies. This is based on the evidence that a well branded
marketing strategies proxied by Branding will result to a product increases customers purchase and repurchase
corresponding increase in the Performance of Small and decision.
Medium Scale Enterprises (PFM) by margin of 7.0 %. Using
the probability value of the estimate, p (b1) < critical value at
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