Promotional Techniques and the Performance of Small and Medium Sized Enterprises Case Study: Wandegeya

Abstract

This study focused on assessing the effects of promotional techniques on the performance of small and medium sized enterprises of businesses around Wandegeya. The specific objectives of the study were; to assess the impact of advertising on the performance of small and medium sized enterprises, to establish the impact of personal selling on performance of small and medium sized enterprises and to identify how sales discount contributes to the performance of small and medium sized enterprises. The study used a case study research design with quantitative and qualitative research techniques using a total sample size of 63 respondents. Data was collected using self-administered questionnaires and face to face interviews. The study revealed that advertising has increased brand positioning and has raised the demand for product which has increased sales. it was found that personal selling, saves costs, minimizes wastage in sales effort which impacts on the profitably of the SMEs. Personal selling is the most effective promotional method for building customer relationships and boosting sales, achieving economies of scale, Customer satisfaction and profit maximization. It was also exposed that SMEs make use of sales discounts to achieve business objectives aimed at profit maximization and stimulates the interest of clients to keep on purchasing. Finally, it is recommended that Business owners should take a thorough analysis of the effectiveness and significance of a promotional technique before initiating it. Costs should be well estimated and the expected customers with ability to purchase the advertised product. It was also recommended that the business management should also take into consideration the target population and identify the most effective promotional technique to use. Failure to do this, the business could incur expenses without any expected returns.

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