The Effect of Direct Marketing on Market Performance of Small and Medium Enterprises in Uganda a Case Study of Kolping Hotel in Hoima District

Abstract

This study established the effect of direct marketing on market performance of small and medium enterprises a case study of Kolping Hotel inHoima District.This specific objectives were to: find out the effects of direct mail marketing on market performance of Small and Medium Enterprises, find out the effects of Internet advertisement on market performance of Small and Medium Enterprises and find out the effects of telecommunication marketing on market performance of Small and Medium Enterprises.

A case study design was adopted and data collected from a sample of 52 respondents. Self-administered questionnaires, interview guide and documentary review guide were used in the study. Data was analysed using SPSS Version 16 and findings were presented in a tabular format showing frequencies and percentages. Qualitative findings were presented in themes in a narrative form.

The study revealed that direct mail marketing has enabled us to attract the attention and then generating interest of the customers. It was also revealed that creative elements and design characteristics of direct mail account for up to a quarter of its overall success and that direct mail advertising often receives active attention from consumers once the envelope has been opened. The organization also strongly use the internet in delivering marketing messages to attract customers and that response to brand communication is instantaneous, and conversion to business is very high. Additionally telecommunication has also enabled to communicate effectively with customers & deliver high standards of customer service and that they have also been able to handle incoming calls from customers efficiently, enabled flexible working by allowing employees to work efficiently from home or other, more remote locations, reduced costs associated with transactions and also allows more employees to access and use the information and make decisions upon it. It was recommended that the management of Kolping Hotel should allocate enough resources and funds to finance advertising, telecommunication and internet marketing so that they can be fully administered in a wide area. The management should strategically carry out cost estimation and value the impact of a given marketing strategy in order not to spend more money on marketing which could result into unexpected losses.The top and middle management should actively get involved in decision making concerning the direct management strategy to be used. This will help to avoid over spending on an irrelevant strategy.

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