Marketing Skill And Promotion Of Small And Medium Scale Enterprise

Project and Seminar Material for Entrepreneurship

Abstract

The study examined marketing skill and promotion of small and medium scale enterprise using small and medium in ilorin south local government area as case study. The study specifically was aimed at examining the impact of Marketing skill on the promotion of small and medium scale enterprise in ilorin South local government area.

The study employed the survey design and the Simple random sampling technique to select 51SMSoperators and owners from ilorin South local government area. A well-constructed questionnaire, which was adjudged valid and reliable, was used for collection of data from the respondents. The data obtained through the administration of the questionnaires was analyzed using the frequency table. While the formulated hypothesis were tested using Chi-square statistical tool.

The results showed that Boosting business growth, Increasing in sales & revenue, Growing customer base, Achieving goals and Business promotion are the role of marketing skill in the promotion of small and medium.
The study concluded thatthe impact of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area is low. The marketing communications system is the general framework for promotion, aiming to present the business, its products and services, to raise awareness of potential customers and, of course, to increase sales to obtain a higher profit, hence this stipulates that the relevance of marking skill cannot be over emphasized and at such is the bedrock of every business success.

Promotion is one of the action areas of marketing, being expressed through a set of activities and means of informing and attracting potential buyers to points of sale in order to meet their needs and desires and, implicitly, to increase the economic efficiency of the activity of the producing entity. Therefore this study suggest that owners of SMS enterprises should considered it necessary to embark and establish an interval promotion for their business as its effect stipulates rapid business growth and expansion.

Chapter One

Introduction

1.1 Background to the Study

Small scale businesses are those businesses which are independently owned and operated requiring limited capital with few employee and non-sophisticated technology and which is not dominant in its field of operation. Small businesses are small in operations. Types of small business include those engaged in trade and commercial activities, services, and small scale manufacturing .Examples include service or retail operations such as delicatessens, hairdressers or convenience stores, small grocery stores, bakeries tradespeople (e.g., carpenters, electricians), very small-scale manufacturing, and Internet-related businesses. Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment. The promotion of small and medium scale enterprise requires essential marketing skills. Due to the nature of small and medium scale enterprise, Personal selling is an aspect of salesmanship, which involves person to person interaction between a seller and the buyer to effect exchange of facts for making buying decision..

The salesperson has to communicate to the buyer by persuading and creating awareness for the product to be desired. The product so advertised has all the potential to satisfy the need of the customer more than the competing brand in the market. Personal selling has the advantage of communicating personally with potential customer about the unique feature of the product which provides the customer the option to inspect the product before buying to meet his expectation for the product. It is through personal selling therefore that this products and services are communicate and sold to the customers at an agreed price and terms of sales. Personal selling is a face-to-face communication, which has the potential to convince the buyer and demonstrate the workability of the product. Personal selling enables marketers to make their presentation to fit the needs, wants, motives and behavior of individual customer. Personal selling is an effective tool used by organizations to receive the desired response from its customers and prospects. Effective personal selling includes effective communication, education of customers on product usage, problem solving stimulating and motivating and ultimately soliciting for favorable response. Most SMES must adopt personal selling as its number one promotional tool. due to its traditional nature and cost effectiveness. Håkan Håkansson & IMP Group. (1982).The research therefore seeks to investigate Marketing skill and promotion of small and medium scale enterprise in Ilorin South local government area

1.2 Statement of the Problem

The management and operations of small business is confronted with some challenges which include effective marketing skills and promotion thereby limiting the growth of small business in Nigeria. Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment. Some of that problem includes lack of huge capital to expand or take advantage of business opportunities .This also affect the salary of the salesmen who may not be motivated to perform ultimately. Also the lack of managerial skill also affects the smooth and successful operation of small businesses. Lack of planning skill, communication skills and salesmanship often leads many small businesses into failure. Poor decision making and improper accounting also constitute the problem confronted by Small businesses among her things. This combined together impedes on the performance of the salemen. Many SMEs lack both the finance and the promotional strategy to implement for the development of SMEs. The problem confronting the research is to proffer an appraisal of the Marketing skill and promotion of small and medium scale enterprise in Ilorin South local government area

1.3 Objectives of the Study

To determine the impact of Marketing skill on the promotion of small and medium scale enterprise in ilorin South local government area

1.4 Research Questions

What constitute marketing skill?
What is the role of marketing skill in the promotion of small and medium?
What is the role of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area?

1.5 Significance of the Study

The study shall proffer an appraisal of the role of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area

1.6 Research Hypothesis

Ho The impact of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area is low

Hi The impact of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area is high

1.7 Scope of the Study

The study focuses on the appraisal of the impact of Marketing skill in the promotion of small and medium scale enterprise in ilorin South local government area

1.8 Limitations of the Study

The study was confronted by some constraints including logistics and geographical factor.

1.9 Definition of Terms

Marketing

Marketing is defined as the process of facilitating exchanges through products and services. It involves carrying out plans and implementing them from product conception to ultimate sale of the product or service.

Salesmanship

Personal selling is an aspect of salesmanship, which utilizes a direct face to face interaction between a seller and the buyer to effect exchange of facts for making buying decision.

SME

Personal Selling

Personal selling is an aspect of salesmanship, which involves person to person interaction between a seller and the buyer to effect exchange of facts for making buying decision.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings into “marketing skill and promotion of small and medium scale enterprise using small and medium in ilorin south local government area as case study.The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to examine marketing skill and promotion of small and medium scale enterprise using small and medium in ilorin south local government area as case study.The study specifically was aimed at examining the impact of Marketing skill on the promotion of small and medium scale enterprise in ilorin South local government area.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 40 responses were validated from the enrolled participants where all respondent are operators and owners of small and medium scale enterprises in ilorin South local government area. The formulated hypothesis were tested using Chi-square statistical tool SSPS v23.

The findings revealed that the following are the role of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area; To attract new customers, Increase in sales & revenue, Increase sales in off-seasons, Induce existing customers to buy more, Introduce new products or services etc. Subsequently it was revealed that Boosting business growth, Increasing in sales & revenue, Growing customer base, Achieving goals and Business promotion are the role of marketing skill in the promotion of small and medium.

5.3 Conclusions

Based on the finding of this study, it was concluded that the impact of marketing skill in the promotion of small and medium scale enterprise in Ilorin South local government area is low. The marketing communications system is the general framework for promotion, aiming to present the business, its products and services, to raise awareness of potential customers and, of course, to increase sales to obtain a higher profit, hence this stipulates that the relevance of marking skill cannot be over emphasized and at such is the bedrock of every business success.

5.4 Recommendations

Promotion is one of the action areas of marketing, being expressed through a set of activities and means of informing and attracting potential buyers to points of sale in order to meet their needs and desires and, implicitly, to increase the economic efficiency of the activity of the producing entity. Therefore owners of SMS enterprises should considered it necessary to embark and establish an interval promotion for their business as its effect stipulates rapid business growth and expansion

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