SMALL AND MEDIUM SCALE ENTERPRISES MARKETING STRATEGIES IMPACT ON SALES PERFORMANCE IN GHANA, MODERATING ROLE OF PRODUCT INNOVATION.

Abstract

The dynamic nature of business environment has make it necessary for businesses to adopt strategic means for survival. These strategies are adopted worldwide by many SMEs including those in Ghana. Considering the competitive nature of the SME sector, businesses need not only to practice but fully understand the effectiveness of marketing strategies on their respective businesses. The study compares the effect of marketing strategies on the performance of Small and Medium Scale Enterprises in the Ashanti Region of Ghana. Marketing strategies considered under this study includes market segmentation, ansoff growth strategy and competitive strategy. The medicating role of product innovation was also reviewed. The population comprised of SME (registered and unregistered) within the Ashanti Region. The study was conducted on a sample size of two hundred (200) SMEs in the Kumasi Metropolis. A response rate of 88.5% (177 respondents) was achieved. Purposive and convenience sampling technique was used and the data collection method used was questionnaire. The primary data was collected through google forms and the research design adopted was explanatory. The study revealed that marketing strategies significantly and positively affect sales performance of SME firms. The study also found that firms that adopt and implement marketing strategies have better chance of succeeding in innovating products and services that satisfy customers. Among the marketing strategies variables used, the study concluded that competitive strategies contribute greatly to sales performance. The study recommended that to stay competitive, SMEs should prioritise competitive strategies when implementing marketing strategies.