AN ASSESSMENT INTO  THE IMPACT  OF MARKETING STRATEGIES ON  THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the study

Small businesses play a key part in the lives of individuals, since a significant portion of our contemporary economic activities are reliant on these enterprises. Small businesses play a significant role in enhancing the overall quality of life by offering a diverse range of services, professional practices, and goods that effectively meet the urgent demands of their consumers and clients. According to Anas and Batool (2016), small business businesses have been recognised as a significant strategic sector in fostering the economic and social development of Sri Lanka. Small enterprises have been widely acknowledged as a significant contributor to employment, income production, poverty reduction, and regional development. A wide range of economic activities, including manufacturing, service, commerce, professional services, and others, are included by small business firms. According to Ardjouman and Asma (2015), small and medium-scale industries constitute around 96% of industrial units, 36% of industrial employment, and 20% of value contributed within the manufacturing sector. The contribution of Small and Medium Enterprises (SMEs) to the economic growth and development of countries worldwide is of utmost importance. Small and Medium Enterprises (SMEs) play a crucial role in the business environment of Cameroon, making important contributions to the creation of job opportunities, income production, poverty alleviation, and general economic progress. Nevertheless, small and medium-sized enterprises (SMEs) in Cameroon encounter a multitude of obstacles that impede their expansion and long-term viability. These issues include restricted financial accessibility, insufficient infrastructure, and a dearth of management expertise (Baltes, 2015). 

Marketing strategies have a pivotal role in influencing the growth and development of small and medium-sized enterprises (SMEs). Marketing tactics include a range of actions that are designed to advocate for goods or services, allure clients, and eventually enhance sales and profitability. Efficient marketing tactics may improve the prominence, competitiveness, and durability of small and medium-sized enterprises (SMEs) by allowing them to access specific markets, distinguish themselves from rivals, and establish robust client connections (Akindoju, 2016). Although marketing tactics are crucial, there is a lack of study explicitly investigating their influence on the growth of small and medium-sized enterprises (SMEs) in Cameroon. Although there have been studies conducted on the development of small and medium-sized enterprises (SMEs) and marketing practices in various settings, there is still a lack of information about the impact of certain marketing tactics on the growth and success of SMEs in Cameroon. Hence, the objective of this research is to address this deficiency by undertaking a thorough evaluation of the influence of marketing strategies on the growth of small and medium-sized enterprises (SMEs) in Cameroon. This study aims to analyse the marketing tactics used by small and medium-sized enterprises (SMEs) across different sectors and areas within the nation. The objective is to get a deeper understanding of the efficacy of these strategies in facilitating company expansion, augmenting market presence, and bolstering competitiveness (Cooper, 2019). Moreover, this research will also investigate the obstacles and impediments encountered by small and medium-sized enterprises (SMEs) in the successful implementation of marketing plans. According to Cross (2018), the identification of these issues would facilitate the ability of policymakers, business support organisations, and small and medium-sized enterprise (SME) owners/managers to devise specific interventions and support mechanisms aimed at surmounting them. This, in turn, will provide a favourable climate for the growth and development of SMEs. In summary, the results of this research are anticipated to enhance the current understanding of small and medium-sized enterprise (SME) growth and the execution of marketing strategies, specifically in the context of Cameroon. Furthermore, the findings derived from this study have the potential to contribute to the development of policies, business strategies, and capacity-building programmes that seek to enhance the sustainable growth and competitiveness of small and medium-sized enterprises (SMEs) in Cameroon. Therefore, the researcher sought to investigate entrepreneurship development initiatives aimed at  supporting businesses in  Cameroon.

1.2 Statement of the problem

Small and Medium Scale Enterprises (SMEs) are crucial in the current business environment of Cameroon since they significantly contribute to economic growth and promote development. Nevertheless, in the face of several obstacles, such as limited resources and intense competition, the effectiveness of marketing tactics used by these small and medium-sized enterprises (SMEs) remains unknown. Gaining insight into the influence of marketing tactics on the growth of small and medium-sized enterprises (SMEs) in Cameroon is essential for improving their long-term viability and their contribution to the country's economy (Ebitu, & Tom, 2016). Hence, it is necessary to evaluate the efficacy of different marketing tactics used by small and medium-sized enterprises (SMEs) and their impact on expansion, market reach, brand exposure, and overall progress. By acknowledging and dealing with this information deficit, policymakers, business stakeholders, and small and medium-sized enterprise (SME) owners may make well-informed choices to enhance marketing endeavours and drive the sustainable expansion of SMEs in Cameroon. Therefore, the central problem to be addressed in this study is assessment into  the impact  of marketing strategies on  the development of small and medium scale enterprises (SMEs) in Cameroon.

1.3 Objective of the study

The broad objective of the study is to assess the impact  of marketing Strategies on  the development of Small and Medium scale Enterprises (SMEs) in Cameroon. The specific objectives is as follows

To analyze the various marketing strategies employed by Small and Medium Enterprises (SMEs) in Cameroon.

Assess the impact of marketing strategies on the performance of Small and Medium Enterprises (SMEs) in Cameroon.

To identify challenges faced by SMEs in implementing marketing strategies for sustainable development in Cameroon.

1.4 Research questions

The following questions have been prepared to guide the study

What are the various marketing strategies employed by Small and Medium Enterprises (SMEs) in Cameroon?

What is the impact of marketing strategies on the performance of Small and Medium Enterprises (SMEs) in Cameroon?

What are the challenges faced by SMEs in implementing marketing strategies for sustainable development in Cameroon?

1.5 Significance of the study

The study will be significant to the following

Policymakers: Governments and policymakers can use the findings of this study to formulate policies and provide targeted support to SMEs. This could include incentives for adopting effective marketing strategies, capacity-building programs, and access to financial resources geared towards improving marketing capabilities.

Government:  Small and Medium Scale Enterprises (SMEs) play a crucial role in the economic development of any country, particularly in emerging economies like Cameroon. Understanding how marketing strategies affect their growth can provide insights into enhancing their contribution to economic growth.

Academia : the study will be beneficial to the academic community as it will contribute to the existing literature.

1.6 Scope of the study

The study focuses on assess  the impact  of marketing Strategies on  the development of Small and Medium scale Enterprises (SMEs) in Cameroon. Empirically, the study will analyze the various marketing strategies employed by Small and Medium Enterprises (SMEs) in Cameroon, assess the impact of marketing strategies on the performance of Small and Medium Enterprises (SMEs) in Cameroon and identify challenges faced by SMEs in implementing marketing strategies for sustainable development in Cameroon.

1.7 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of terms

Marketing Strategies: Planned, systematic approaches employed by businesses to promote their products or services, attract customers, build brand awareness, and ultimately drive sales. These strategies encompass a range of activities including market research, advertising, pricing, distribution channels, and customer relationship management.

Small and Medium Scale Enterprises (SMEs): Businesses characterized by their relatively small size, limited scale of operations, and often independently owned and operated. In Cameroon, SMEs typically include enterprises with a moderate workforce and revenue, contributing significantly to the country's economic growth and employment generation.