CHAPTER ONE

INTRODUCTION

1.1 Background of the StudyThe study and practice of marketing have broadened considerably, from an emphasis on marketing as a functional management issue, to a wider focus on the strategic role of marketing in overall corporate strategy (e.g., Kotler, 2000; Sudharshan, 1995). This broadening of the marketing concept, to include strategic as well as operational decisions, has resulted in an overlap between marketing and strategic management. Managers around the globe are recognizing the increasing importance for the firm to develop marketing strategies to compete effectively in worldwide markets. In recent times, marketing activities in the world today have been posing serious problems to the retail organizations because of the competitive nature and increase in the number of organizations and other manufacturing industries. Marketing as we know it today was given little or no attention. A successful marketing operation must rest on careful thought and plan. The strategic aspect of the plan should be based on what was known of the competitors strength and positioning the physical characteristic of the battle ground, the financial or hostile sentiment of those who occupy the territory, and of course, the strength and character of the resources available to compete. Ebitu (2014) conceived strategy as an action plan or a set of plans intended to achieve specific goal or objectives over a period. He further stressed that marketing strategy is an action plan on how organization intends to achieve its marketing objectives.Orji (2010), conceives a strategy as a pattern of action and resources allocations designed to achieve the objectives in an organization. He also found strategy as a game plan for “getting there” and that every business must follow a strategy for achieving its marketing goals. Louise and David (1989) in Orji (2010) pointed out that marketing strategy is the overall company programme for selecting a target market and satisfying the target consumers through a blending of the marketing mix elements. The component of the marketing mix such as product, price, distribution and promotion represent subset of the marketing strategy. These key elements must be coordinated and put into a unified effective strategy where product must perform well in the market. The marketing strategy is direct and useful in business and in marketing.Firms performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).According to Richard, (2009), performance encompasses three specific areas of firm outcomes: (a) financial performance (profit, return on assets, return on investments, etc.); (b) product market performance (sales, market share, etc); (c) shareholder return (total shareholder return, economic value added, etc.). Performance could be evaluated by organizational performance. Drucker, (1999) pointed out the measurement of performance through non-financial ways that Operating Performance was segmented by time; the short-term objective should consider the value of shareholders, while the long-term objective aimed to balance the sustainable operation and survival. Robbins, (2001) indicated that financial performance and marketing performance were generally used for operating performance of a business. Financial performance contained rate of return, return on sales, pretax income, volume of sales, and sales growth rate, while market shares were the representative of marketing performance. Erdogan, (2001) considered that the denouncement and problems in operation could be discovered through the measurement of operating performance aiming at the operational performance and the employees’ work performance. In other words, operating performance of a business stands for the business performance of the organization interacting with external environments.Aiming at the definition and indicator of performance, the following dimensions in operating performance organized by Chang, (2009) are utilized for this study. From the foregoing therefore, the study seeks to examine impact of marketing strategies for improving sales performance of small and medium scale enterprises in Khana Local Government Area.1.2 Statement of ProblemEvery firm which intends to improve on its marketing must create good marketing strategies for its operation. These strategies should be effective and increase the sales/profitability of such companies and will also help the company to achieve its goals.Paramount problem as regards to the decline in the level of sales performance is due to the marketing strategies being adopted. This situation led the researcher to undertake a research work to know how to improve the standard of marketing strategies to improve the small and medium scale enterprises in Khana Local Government Area, and to know the roles that could be played by the marketing managers in enhancing sales performance and organizational growth in Nigeria. This study therefore is determined to examine the relationship between marketing strategies and small and medium scale enterprises in Khana Local Government Area.1.3 Objectives of the StudyThe main objective of the study is to examine the relationship between marketing strategies and the performance of small and medium scale enterprises in Khana Local Government Area. The specific objectives are as follows:i. To examine the relationship between product strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.ii. To examine the relationship between the price strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.iii. To examine the relationship between distribution strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.iv. To examine the relationship between promotion strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.1.4 Research QuestionsIn line with the objectives of the study, the following questions will be answered.i. Do product strategies relate with sales performance of small and medium scale enterprises in Khana Local Government Area?ii. To what extent does pricing strategies influence sales performance of small and medium scale enterprises in Khana Local Government Area?iii. What is the relationship between the distribution strategies and sales performance of small and medium scale enterprises in Khana Local Government Area?iv. Do promotion strategies influence sales performance of small and medium scale enterprises in Khana Local Government Area?1.5 HypothesesThe following research hypotheses were formulated to guide the researcher:HO1: There is no significant relationship between product strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.HO2: There is no significant relationship between pricing strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.HO3: There is no significant relationship between distribution strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.HO4: There is no significant relationship between promotion strategies and sales performance of small and medium scale enterprises in Khana Local Government Area.1.6 Significance of the StudyThe significance of the study cannot be over emphasized. It can be seen from the problem statement that major difficulties are identified with marketing strategies. It is hoped that the study will help retail organizations, managers, marketing managers on the field of study to adopt better marketing strategies that will improve the overall performance for the organizations and help them realize set goals and objectives.The recommendations made in this study if applied would provide initial steps in major decision on the determination of the present marketing strategies that can be used to improve sales performance of small and medium scale enterprises in Khana Local Government Area.The study will also help the reader to know that the success of an organization especially small and medium scales enterprises depends on a good marketing strategy so that it will present good image and increase their sales revenue. It will also widen the researcher’s knowledge about the various strategies available and how they can be applied to the marketing firms and manufacturing industries.Above all, the study will also help the people to know the value of marketing strategies and how it can be used to attract new market customers from existing market.1.7 Scope of the StudyThe study is delimited under the following heading: content scope, geographical scope and unit of analysis.Content Scope: The content scope of this study involves an investigation to ascertain the relationship between marketing strategies and retail organizations. The dependent variable is performance, measured by profitability, market share and sales volume. While independent variable is marketing strategies measure by product strategies, price strategies, distribution strategies and promotion strategies.Geographical Scope: This study is delimited in Port Harcourt Rivers State with references to selected small and medium scale enterprises in Khana Local Government Area including Nextime Supermarket Bori, Led Pharmacy, Senator Liberation Enterprises, Sorbarisere Enterprises in Khana Local Government Area.Unit of Analysis: The unit of analysis in this research involves both senior and Junior staffs of Nextime Supermarket, Led Pharmacy, Senator Liberation Enterprises and Sorbarisere Enterprises in Khana Local Government Area. at the time of the study.1.8 Limitation of Study

The study was limited by the following:The level of frankness in response to questions by the respondents is quite doubtful.Finance: Accessing fund for the research work was difficult and this limited the quality of research activity.Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were

not willing to give information, stating that it was against the organization’s policy.1.9 Definition of Terms

MARKET: Market is people or organization that has money, they ready and willing to spend their money for the product of choice during a marketing plan.MARKETING MIX: The marketing mix refers to the set of actions or fact that the company uses to promise its bound or product in the market.MARKETING: Marketing is the process of planning and executing the consumption pricing, promoting and distribution of ideas goods and services to create exchange that satisfy individual and organizational objective.STRATEGY: Is an ability of person skilled or planning things, or a plan designed for a particular purpose.PERFORMANCE: Performance comprises the actual output or results of an organization as measured against its intended outputs.