Marketing strategy and profit maximization of Small and Medium Enterprises in Mogadishu, Somalia.
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Date
2014-11
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management Sciences .
Abstract
The purpose of the study was to investigate whether there is a relationship between
marketing strategies and profit maximization of Small and medium enterprise in
Mogadishu Somalia. It was guided by three objectives, that is, to assess the level of
marketing strategies among SMEs; to examine the level of profit maximization in SMEs
and to investigate if there is a significant relationship between marketing strategies and
profit maximization in SMEs in Mogadishu. This study followed a descriptive design,
descriptive comparative, correlational, expost facto and cross sectional survey. A sample
of 80 respondents was selected purposively. The researcher found out that the level of
marketing strategies and profit maximization was low, an indication that there is a need
for SMEs to find a more efficient and effective way of improving their marketing
strategies for them to maximize their profits. The researcher discovered that there is a
positive significant relationship between marketing strategies and profit maximization of
small medium enterprise in Mogadishu Somalia (r = 0.646). The overall results suggested
that strategic marketing strategies are not only crucial mechanisms in profit maximisation
but also helps to enhance the development of new product/service for existing markets.
Both traditional and non-traditional marketing strategies are important in a business
enterprise depending on the business environment. The study recommends that SMEs
should internationalize their marketing strategies for them to enter into the global market,
this will give them room for improving the quality of their produce and increase sales that
will in turn enable them maximize profits. There is a need for the SMEs to adopt a more
modern technological marketing tool in their businesses and motivating their marketing
personnel should be prioritised. The SMEs must also create links on social media to drive
traffic to their corporate entities. Websites will help them to ensure live interaction with
their customers through chatrooms. Similarly, this study recommends that SMEs need to
have a balance between being sales oriented and profit oriented. They should as well
focus on creativity other than being monopolistically driven.
Description
A thesis presented to the College of Higher Degrees and Research in
Partial Fulfillment of the Requirements for the Award of a Degree
Master of Business Administration in Accounting & Finance of
Kampala International University Kampala, Uganda.
Keywords
Small and Medium Enterprises, Marketing strategy, Profitability, Mogadishu, Somalia