Marketing Strategy and Its Impact on the Performance of Small And Medium Scale Enterprises in Kogi State Of Nigeria

Abstract

This paper focused on marketing strategies and the performance of Small and Medium-Scale Enterprises in Kogi State. Marketing strategies were decomposed into specialization, segmentation and product differentiation strategies. Specialization strategy and segmentation strategy were investigated against the performance of SMEs in Kogi State, and the relationship between product differentiation and customer satisfaction was also ascertained. The study used a descriptive research design. Data were gathered and analysed using descriptive and inferential analytical techniques (Multiple Regression and correlation matrix). Findings showed that specialization strategy (promotion strategy and price strategy) has an effect on the performance of SMEs in Kogi State; and that customer satisfaction has a significantly positive relationship with a differentiation strategy. The study concluded that if the promotion strategy and price strategy are combined, the promotion will have a positive effect on the performance of SMEs in Kogi State, and the price will have a negative effect on the performance of SMEs when SMEs focus on the differentiation strategy, customers’ expectations will be met. The study recommended that SME owners should ensure that both promotion strategy and price strategy are not combined together as this can cause varying performance outcomes and that they should focus their differentiation strategy on product quality, product content, operation process, and innovation so as to enhance increased customer satisfaction.