The use of marketing strategies by Small, Medium and Micro Enterprises in rural KwaZulu-Natal

Abstract

This paper examines the use of marketing strategies by Small, Micro and Medium Enterprises (SMMEs) in rural areas and identifies how they are limited by various internal and external factors. The study aimed to determine whether rural SMMEs have formal marketing strategies, the factors that constrain their marketing activities, their understanding of what marketing entails and the marketing communications techniques that they use. The study was conducted in rural KwaZulu-Natal (KZN), using a survey method. The sample consisted of 374 SMME owners/managers, selected using quota sampling, with respondents completing a questionnaire with the assistance of an interviewer. The results of the research revealed that marketing knowledge and expertise is lacking, with limited use of marketing strategies by the rural SMMEs. The paper will benefit SMME marketers by assisting them to better understand the marketing tactics to use, dependent on the nature of their environment. Most work on SMME marketing has concentrated on urban entrepreneurial marketing, with little emphasis on marketing strategies used in rural areas. Findings were limited by the study's exploratory nature and the small sample. Further research with larger samples and the consideration of other provinces is recommended.

Selected Key External Factors Influencing the Success of Rural Small and Medium Enterprises in South Africa

“…To further understand the problem of SME performance in rural areas, this study set out to investigate some key external factors influencing the success, or lack thereof, of SMEs with specific reference to rural KZN. Lekhanya (2010), in addition to marketing factors, identified business environmental, financial and infrastructural factors as of significance to rural SMEs. Thus the objective of this study was to investigate these factors in more detail and to identify which are most important and play a significant role in the success or otherwise of SMEs in rural KZN. In achieving this objective, the study will make a contribution towards knowledge of rural SMEs and be able to make suggestions for steps that can be taken to improve the likelihood of success and continued sustainability of rural SMEs, thus contributing to improved rural development.…”

The Significance of Emerging Technologies in Promoting Internationalization of Rural SMEs in South Africa

“…Technology can also substantially influence an industry's performance. In addition to creating new products, technological developments affect all marketing activities, including communications (making available new media or new selling tools), distribution (opening new channels or modifying the operations and performance of existing ones), packaging (using new materials), and marketing research (using new data collection and analysis methods) (Lekhanya & Mason, 2013). Achtenhagen (2011) indicates that shortage of working capital to finance exports, identifying foreign business opportunities, limited information to locate/analyse markets and inability to conduct potential overseas customers as major barriers to the internationalization of SMEs.…”

Challenges impacting on small independent retailers performance in Soweto, Johannesburg in South Africa

“…SMEs fulfill a number of roles ranging from poverty alleviation and employment creation to international competitiveness (Nieman, Hough & Nieuwenhuizen, 2003). SMEs have become a critical solution for starting and developing the standard of living in the South Africa owing to the low economic growth, high unemployment and an unsatisfactory level of poverty in South Africa, particularly in the rural areas (Lekhanya, 2010). SMEs are usually defined in terms of employment or turnover that they generate.…”