Marketing Strategies Correlate Sales Growth among MSMEs in Zambia

Abstract

Purpose: The purpose of this study was to examine the effect of marketing strategies on performance of MSMEs in Zambia. The study was conducted out of the need to understand the roles played by marketing strategies on performance of MSMEs in Zambia. The objective was to present the results of a rigorous assessment of marketing strategies applied by the MSMEs and their effect on business performance.Methodology: A descriptive, correlational design was used for this study.  A structured questionnaire was administered as a google form to 177 MSME owners/ managers in Lusaka and Copper belt Province.  The study was limited to MSMEs that were registered with PACRA and were members of the Zambia Chambers of Small and Medium Business Association. Yamane Taro’s sampling formula was used to determine the desired sample. Two measures (a) marketing strategies and (b) sales growth were the main variables. Data were analysed by using the SPSS statistical program, version 28 (SPSS Inc.). Descriptive statistics (means, medians, SDs, and ranges) were computed. Normality was assessed by using histograms and ordinal logistic regression analyses to determine correlates.Findings: Four out of the five dominant marketing strategies that were used had significant positive impacts on sales growth among the MSMEs. These variables are: the Radio (Wald χ2(1) = 32.682, p = .001), WhatsApp (Wald χ2(1) =12.480, p = 0.001), Facebook (Wald χ2(1) =5.702, p = 0.017) and Newspaper (Wald χ2(1) =9.510, p = 0.001).Research limitations/implications: The findings are limited to the MSMEs in Zambia. The study of market strategies and performance is a very complex activity; due to lack of agreed definitions and variables for marketing strategies and performance among scholars. Therefore, to gather rich data on such research work may be best accomplished if the researchers consider various marketing strategies and performance variables. This will enrich the understanding on marketing strategies and MSMEs’ performance relationship.Practical implication: The findings of this research work offer guidance to owners or managers of MSMEs on how to adopt marketing strategies which could enhance firm performance.    The study concludes that marketing strategies can provide the additional competitive edge to MSMEs by consistently enhancing Sales growth. In this regard, MSMEs should pursue the consistent adoption of marketing strategies as a way of improving their performance. The study also revealed that the marketing activity of the MSME is influenced by the personality of the owner-manage. Further, the study suggests that more investigations be carried on other MSMEs performance indicators rather than the sales growth only.

Keywords: Marketing Strategies, MSMEs Performance, Sales Growth.

DOI: 10.7176/EJBM/15-11-05

Publication date:June 30^th 2023