Marketing Strategies and the Performance of SMEs in Ghana

Abstract

Marketing strategies constitute one of the key functional strategies that Small and Medium Enterprises (SMEs) adopt to enhance performance. This study examines the effect of marketing strategies on the performance of SMEs in Ghana in terms of their profitability, brand awareness and market share. Data was collected through a survey research methodology. 363 SMEs were sampled from a population of 900 through stratified random sampling. Hypotheses were tested to ascertain the relationship between marketing strategies and performance. The overall results of this study suggest that strategic marketing are drivers of organizational positioning in a dynamic environment, and that it helps to enhance the development of new product/service for existing markets. Results of the study also reveal that the SMEs in Ghana mostly use traditional form of marketing to reach potential customers and also to entrench their brands. Interestingly, only few of them use modern technology in marketing their product and services; the SMEs should thus adopt more modern technological marketing tool such as mobile marketing to improve on their performance. The findings provide valuable insights for decision makers and SMEs owners on the relationship between strategic marketing and performance of SMEs in a globalized developing economy context.

Keywords: Marketing strategies, strategic marketing, performance, SMEs, developing economy