CHAPTER ONE:

INTRODUCTION

1.1 Background of the study

Marketing strategy has become an important tool for any firm to remain in competitive

market environment and also become stronger. Aremu & Lawal, (2012) sees strategy as a

pattern of resource allocation decisions made throughout an organisation. This encapsulates both

desired goals and beliefs about what are acceptable means of achieving them. They further

opined that strategy implies the analysis of the market and its environment, customer buying

behaviour, competitive activities are the need and capabilities of marketing intermediaries.

Goi, (2005) defines marketing strategy as the set of marketing tools that firms use to

pursue their marketing objectives in the target market; the view was earlier expressed by

Gronroos, (1999) and Osuagwu, (2006). Therefore the function of marketing strategy is to

determine the nature, strength, direction and interaction between the marketing mix. Marketing

strategy is a vital prerequisite of firm’s ability to strengthen its market share and minimize the

impact of competition. Marketing performance is central to success in today’s fast moving

competitive markets and measuring marketing’s performance is critical to managing it

effectively. Long-Yi & Ya-Huel, (2012). In order to measure marketing strategy effectiveness, a

business has to break down its marketing function into constituent parts, along with a mechanism

through which to analyse the interaction between those parts. By doing this decision-makers of

firms will finally be in a position to relate marketing expenses to shareholder value and to

understand how to tie marketing initiatives back into the value created for the firm. Decision

makers will be able to understand the internal motive that propels the marketing value of

business (Chiliya, Herbst & Roberts-Combard, 2009). The manipulation of the following

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variables namely relationship marketing, marketing orientation, corporate social responsibility,

product quality seem to enhance the growth of small and medium enterprises (SMEs).

The term “relationship marketing” is a strategy designed to foster customer loyalty,

interaction and long term engagement. Rouse, (2010). Morris, Brunyle & Page in Esu (2005)

defined relationship marketing as a strategic orientation adopted by both the buyers and the

seller’s organisation, which represents a commitment to long term mutually beneficial

collaboration”

The concept “Corporate Social Responsibility” has been defined in many ways – Most

writers on social responsibility see the concept as a disposition of an organization to exhibit

“Missionary rather than “Mercenary” attitude towards the society. Holmes & watts, (2000) on

behalf of the World Business Council for Sustainable Development provide a reasonable

representative definition as: The continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of the workforce and

other families as well as those of the local community and society at large. “Business dictionary”

also defines corporate social responsibility as the firm’s interaction with the people constituting

the environment it operates in and draws resources from, to foster mutual understanding, trust

and support. These tools are important on small and medium enterprises (SMEs). If they are

effectively used, it will boost organisational performance, product quality, customer satisfaction

and profitability.

Small and Medium Enterprises (SMEs) are the engine of economy growth and

development globally and Nigeria inclusive. By this very nature, small and medium enterprises

(SMEs) constitute the viable and veritable vehicle for self-sustaining economy (Oyebamiji,

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Kareem & Ayeni, 2013). They furthered discovered that small and medium enterprises in

Nigeria have not performed creditably well and hence have not played the expected vital and

vibrant role in the economic growth and development of Nigeria. They note that the situation has

been of great concern to the government, citizenry, operators and practitioners. These challenges

could be as a result of perceived ineffective marketing strategy adopted by small and medium

enterprises (SMEs) which is having negative effect on the organisations performance, market

share, customer satisfaction, sales volume, product quality.

1.2 Statement of the Problem

As a result of the recent world economic meltdown on the country, there has been a

tremendous change in the operational climate of businesses especially small and medium

enterprises (SMEs). Some business operators were able to adapt their organisations to the

prevailing situation, while others were not. As a result of this, they were forced out of business.

(Oyebamiji, Kareem & Ayeni 2013).

One of the major marketing problems facing small and medium enterprise in Nigeria is

lack of understanding and the application of marketing concept. In a study conducted by Ogwo,

(1999) this was conspicuously exposed that most Nigerian small business owners equate

“marketing” to “selling” and this is reflected in their various dysfunctional business behaviour

against customer satisfaction and good business orientation. They lack the knowledge and skills

of basic marketing ingredients – marketing research, market segmentation and marketing

planning and control. The outcome leads to poor quality products, unawareness of competition,

and lack of good connection with customers. Baker, (1979) & Doyle, (1985) identified lack of

marketing orientation as the major factor for business failure. Most Nigerian small and medium

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enterprises in a higher degree depend on imported goods and raw materials for their operations.

With the over-devaluation of naira, vis-à-vis other foreign currencies, they are not finding it easy

to secure these abroad. They therefore resort to poor locally produced alternatives. The result

therefore leads to poor quality products. This may be one of the factors responsible for Abuja,

Federal Capital Territory (FCT) consumers quenching appetite for imported goods even though

many of these foreign goods are equally of poor quality especially those coming from Asians Far

East countries. Porter, (1980) points out that high quality raw materials are to producing high

quality products.

Basically this research is aimed at showing the impact of marketing strategy on the

performance of selected small and medium enterprises (SMEs) in Abuja, Federal Capital

Territory (FCT).

1.3 Objective of the study

The research objective for this study includes:

1. To determine the relationship between marketing strategy and performance

2. To ascertain the impact of relationship marketing on customer satisfaction.

3. To determine the influence of marketing orientation on business profitability of small and

medium enterprises in Abuja, Federal Capital Territory (FCT).

4 To evaluate the impact of corporate social responsibility on consumer patronage.

5 To examine the effectiveness of product quality on consumer loyalty.

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1.4 Research Question:

It is obvious that business in this country particularly the small and medium enterprises in

Abuja, Federal Capital Territory (FCT) are facing series of economic and managerial problems

as a result of world economic meltdown. To achieve solutions to this, we will have to seek the

following questions.

 Is there any significant relationship between marketing strategy and performance?

 Does relationship marketing have any impact on customer satisfaction?

 Does market orientation influences business profitability of small and medium

enterprises?

 To what extent does corporate social responsibility influences consumer patronage?

 To what extent does product quality enhances customer loyalty?

1.5 Research Hypotheses:

The following hypotheses were formulated for this study:

Ho: Relationship marketing does not have any impact on customer satisfaction

Ho: Marketing orientation does not influence business profitability of small and medium

enterprises

Ho: Corporate social responsibility does not have any impact on consumer patronage

Ho: Product quality does not enhance customer loyalty.

1.6 Scope of the study

The scope of this research work is on the impact of marketing strategy (Relationship

marketing, marketing orientation, corporate social responsibility and product quality) on the

performance (Customer satisfaction, business profitability, consumer patronage, customer

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loyalty) of selected small and medium enterprises (SMEs) in Abuja, Federal Capital Territory

(FCT)ity.

The retail outlets used for the research work include Vickey Jay Supermarket and

Roseberry Mart Grocery shop. An attempt will be made to study critically the core marketing

strategies on the performance of small and medium enterprises using the indicators of

performance which are customer satisfaction, business profitability, consumer patronage,

customer loyalty. This research work will also look at how relationship marketing will have an

impact on customer satisfaction, product quality enhancing customer loyalty, how the influence

of corporate social responsibility can increase consumer patronage and how effective marketing

orientation can have an impact on business profitability of the selected retail outlets that was

mentioned above.

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1.7 Significance of the study

Considering the service of small and medium enterprises to their consumers, it is very

important and virtually imperative for effective marketing strategies to be clearly spelled for the

existing and intending owners. It is the need for this research to make a viable and purposeful

rectification so as to clearly identify the impact of marketing strategies for small and medium

enterprises (SMEs) that should be in decision relating to establishment.

This research is targeted at mapping out effective strategies for effective performance of

small and medium enterprises (SMEs). There is also the need for this research work to arouse

consciousness to the benefit of professional markets in our business organisation. The research

work will contribute and lead to more effective decision making by owners /managers of small

and medium enterprises (SMEs) towards continued existence and successful operation. It can

equally provide a useful guide for prospective owners of small and medium enterprises who may

choose self-employment as a career, particularly in a depressed economy like ours Nigeria.

This study will also form a body of literature in the aspect of marketing strategies on the

performance of small and medium enterprises. This research will form a platform for further

research in the area of marketing strategies on small and medium enterprises (SMEs)

performance.

1.8 Historical background of the company

Vicky Jay Supermarket is an enterprise that was established in 2008. It is situated Abuja,

Federal Capital Territory (FCT). Vicky jay supermarket basically deals on consumables and

consumable products which are beverages, bookshop, office machines and equipment, food,

cosmetics and lifestyle.

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 Vicky Jay supermarket has 14 employees and one manager. The firm has a shift system,

whereby six of the employees operates in the morning and the other eight operates in the

evening respectively. The supermarket runs from 8am to 10pm from Monday to Saturdays

and Sundays from 2pm to 9pm.

Roseberry mart is a grocery shop that was founded in the year 2009. It is situated Abuja,

Federal Capital Territory (FCT). Roseberry mart deals on children wears, wines, unisex

clothes, household equipment, submersible pumps, spirits and provisions. Rose berry mart

has eleven employees and two supervisors who run the affairs of the firm. The mart operates

from 8am to 9pm from Mondays to Saturdays and opens on Sunday from 2pm to 9pm.

1.9 Definition of terms:

Customer satisfaction: This can be defined as the point whereby customers are happy with

products and services provided by a particular business.

Competitive market environment: This can be defined as the situation whereby several

firms compete for a market segment

Decision Making: This is defined as the process of selecting the best choice out of the

available options

High quality: This can be defined as the standard of degree to which something meets or

exceeds the expectations of its consumers

Marketing orientation: This can defined as the approach to which a business or an

organisation reacts to what the customer want and not what the organisation thinks is right

for the customer.

Marketing Strategy: This is defined as an organisations strategy that combines all of its

marketing goals into one comprehensive plan.

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Performance: The term performance can be defined as the ability to meet customer

satisfaction, business profitability, consumer patronage, customer loyalty within a given time.

Corporate Social Responsibility: This is defined as the corporate initiative to access and

take responsibility for the company’s effects on the community where they operate and

impact on social welfare

Small and Medium Enterprises (SMEs): This is defined as a privately owned and operated

business with a low numbers of employees and low turnover.

Product Quality: This is defined as the collection of features and characteristics of a

product that contribute to its ability to meet a given requirement.

Customer Loyalty: This is said to occur when a customer chooses to consistently purchase

from particular shop or buy one particular product, rather than buy products made by other

companies.

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CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 The Concept of Marketing:

The concept of marketing has long been viewed and equally treated as subsidiary to other

functions performed by managers in their attempt to bridge the gap that exist between the

needs and the wants of the society and the resources that are available to the society and the

trend of events has a far enduring genesis because, even the writing of Plato and Aristotle

indicated a low esteem in which marketing activities were held by people at that time. It has

been considered to be somewhat an immoral act and was regarded with great contempt by the

Greek civilization which emphasizes things intellectual in contrast to material things or

things of material. Today some regard marketing as the source of many social ills with

criticisms levelled against it for playing on people’s weaknesses and wants. Agenti, (2005). It

is argued out that people are being deceived into buying things that they do not need, they are

pushed into debts and encouraged to engage in somewhat unnecessary consumption and

waste of scare resources. The argument went further to state that marketing raises process,

excessively engage in undesirable advertising coupled with unnecessary product brand

development. Bolling, (2006).

Marketing as a management practice according to Theorell & Becker, (2004) has been

neglected or negated by less developed countries. This has been attributed to the fact that in

less developed countries, marketing has been accepted without lots of criticisms with the

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 notion that one has to have a socialist or other autocratic government that is willing to

compress private consumption. Hence marketing becomes a sort of parasitic activity that

encourages waste of resources. They further opined that “a modern marketing system is

indispensible to the smooth function of an industrialised economy due to the fact that mass

production could indeed be inconceivable without mass consumption”. Customer oriented

marketing is not likely to lose its importance in post-industrial society. Hence they argued

that marketing plays a key role in economic development of industrially backwards nations,

even though this is yet, generally, to be realized. Instead of looking at marketing as parasitic

activities that encourage waste of resources, it is the reverse. Marketing of course, will

continue to exist regardless of the value judgement made about nothing actually gets started

until someone sells something. Since the society’s well-being hinges on the ability to satisfy

demand for goods and services and this function could only be performed by marketing.

Georgoff & Murdick, (2003).

2.2 The evolution of Marketing in Nigeria:

The genesis of marketing in Nigeria could be traced to some many years ago. This can be

conveniently delineated into some kind of time phases such as the pre-colonial, colonial and

post-colonial periods.

Pre-colonial Periods: Before the advent of British and the subsequent conquest of the

country, trade has been practiced both internally and externally among the states that existed

at that time in Nigeria. In the Northern part, there was the Saharan trade which linked most

of the Hausa states with each other states. In the eastern part, the Aro trading system opened

up distant trade within the numerous small political units. Rothermel, (1996). In the Delta

11
area of the Niger, the society itself was a merchantable one, which was organised into

trading corporation known as Hausa and these were in competition with each. It was noticed

that in Delta area, the chiefs were not land owning aristocrats but rather middle men with

people in the winter and at the coast. (Newman & Logan, 2008).

Colonial Periods: During the colonial period (1860 – 1960), the slave trade which was

dominant in the pre-colonial period was abolished and replaced by trade in cash crops

especially palm oil, rubber, cocoa etc.

Indeed, African merchants were forced into the production of desired cash crops through

a variety of means. While this was achieved in Delta areas through forceful means, it was

thorough measures taken by the British to jeopardised manufacturing and commerce in the

northern part. Trades like weaving, dyeing, etc. where either banned or excessively taxed to

discourage their practitioners. This created room for foreign manufactured goods, as people

no longer produced what they needed locally. Subsequently, a trade in primary commodities

was established through imposition of taxes on the people and the refusal to collect such in

kind or cowries but in silver coins which were obtainable only in the sale of primary

commodities (Abel & Hammond, 2007). Having solved the problem of production of cash

crops, a group of Liverpool merchants and other British parties, established trading centres

or depots in the colony. In 1879, the major British firms were amalgamated to form the

Corporate Affairs Commission (CAC) with other nationals helping to lay the foundation of

Nigerian business enterprises system such as John Holt, Petterson Zochonis and company,

G.B. Olivient Limited trading company (UTC), etc. with Lever Brothers in 1920. Such

establishments like UAC, SCOA, Kaycee and Chellatains became the dominant firms in the

distributive trade.

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Post-independence: During the period immediately after the independence (1960), Nigeria

saw the gradual withdrawal of the Big Europeans firms from its marketing system. The

achievement was in part through the action of the government such as the “enactment of the

enterprises promotion decree in 1979” and through the rise in consumers, education, income

and social mobility. The establishment of manufacturing/assembly plants has helped greatly

in the emergence of marketing organisations during this period. Guiltinan, (2000). Of course

the late 70’s and early 80’s witnessed the advent of oil surplus with excess money which

therefore encouraged conspicuous consumption. This therefore attracted many

manufacturers to Nigerian marketers. The condition created at that time was a situation of

tense competition. Thus marketers were forced to develop and adopt proper strategy to win

customers. Hence, the second republic witnessed growth in the number of marketing firms

with the proliferation of import – export outfits, but after the military takeover in 1983,

things however changed. Makridakis, (2004). Thus, there was a ban on the importation of

goods and very strict economic measures were introduced which created a seller market for

Nigeria and the tempo which was gathered by the marketers in the previous era was lost as

products were virtually selling themselves during the period of scarcity. The present state of

marketing could therefore be presented by some studies earlier conducted. In a survey

conducted by Imosilli, (1978) he observed that marketing and personnel functionaries

represented only 16% of top managers thus contracts quickly arose with the later survey by

Nwokoye, (1978) in which the thirty-eight firms surveyed only two(2) did not employ

people with any marketing qualifications. The research also noted that marketing, as a

managerial function seems to be well recognised by the Nigerian industry as indicated by the

high title with which the practitioners were designated. Thus, the financial post magazine

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 stressed, “Marketing has assumed the most important and central position in Nigerian

businesses with the marketing department being the surest way to the top”.

2.2.1 Marketing Institutions in Nigeria

In Nigeria, marketing institutions, structures and functions are still at the

developing stage. However, distributive functions and institutions are in the forefront of

this development and are mainly engaged in the importation of good consumer goods –

durables and/or nondurables. The most important as earlier stated are the CFAC, John

Holt, and UAC. Others include UTC, R.T. Brisco, Kaycee, Leventis stores and motors of

which most were still foreign controlled with 60% ownership of shares capital until the

wake of indigenisation policy of the federal government. Adeleye, (2002). Most of these

business firms are sole agents for oversees manufacturers who have command of

available capital, marketing experiences, influence and volume and ready line of credit

with their financiers and suppliers. These agencies are conservative in their operations as

their pricing and branch managers perform few or no managerial functions. All decisions

that are consequential are usually taken at the head office. Indeed, comparable indigenous

firms are very few and offer no serious competition even in the wholesale distribution of

goods in Nigeria. In fact, indigenous distributors in Nigeria cannot compete because they

are unable to and very reluctant to employ the suitable manpower needed. Hence, they

are small in size and tend to spread themselves too much, as they tend to over-diversify.

Inyanda, (2005)

2.3.1 Marketing Problems in Nigeria

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 An economy that is developing and described as “sellers” market faces some

serious problems. The major ones include:

1 Storage of goods: This causes a wide area of unsatisfied demand in the position of

goods and services. This was stated after the “Udorji’s Salary Commission’s”

recommendation was implemented – as demand has been rising constantly while

supply is unable to cope thus, affecting all the sectors of the economy.

2 Problem of advertising and promotion: This include loss of creativity and

innovation by advertising executives, non-existence of promotion and the

impossibility to plan ahead, curtailment of advertising activities, media

inflexibility and inadequacy and shifting in promotional ideas that lead to possible

decline.

3 The problem of distribution: Sales and advertising which include transportation

bottleneck, trade malpractices such as price inflation, hoarding, conditional selling

and corruption, sales force complacency and loss of selling and merchandising

skills, and finally retardation of distributor’s growth and loss of effectiveness.

Akpamgbo, (2001)

2.3.2 Marketing Strategy – Definition and its importance.

In order to meet the increasing risks and uncertainties that are prevalent in the

business environment, management of majority small and medium enterprises (SMEs) is

turning to the use of marketing strategy as an instrument for combining growth,

profitability and viability of their enterprise. The use of marketing has increasingly

15
 become important because environmental surveillance has become a result changes in the

business external environment. Cravens, (2004).

Stanton, (2006) defines marketing strategy in its broadest sense as a dynamic

action, stimulant to accomplish an organisation’s mission, business goals and its

functional objectives. He also opined that it is also a catalyst, the main thread and thrust

of any business that provides a systematic driving force, which brings into being the

desired relationship between business and its environment.

2.3.3. Survival of small and medium Enterprises (SMEs)

There are no generally accepted definitions of small and medium enterprise

mainly because of the wide diversity of businesses. Khan, (2009) defined small and

medium enterprise as a privately owned and operated business, characterised by a small

number of employees and low turnover.

Small and medium enterprises are presently being considered as very important to

the economy of any nation as engines for economy. It has been estimated by the World

Bank that the informal sector of the economy is presently providing above 50% of

Africa’s urban employment. Its contribution to the GDP in many countries stands at 20%

of their GDP. The World Bank went forth by stating “if the sector is encouraged in the

sub-Saharan Africa, it would grow at an annual rate of 75%, and would invariably

increase 35millions jobs within 10years. Etgar, (2000). At any rate, most of small and

medium enterprise fail to survive and or achieve success in their venture to a certain

extent because most of them are ignorant in terms of planning, how to solve the fitting

problem involved in starting and running a business, where to go, who to see so as to

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 develop appropriate and effective strategy for the survival of the business. Nylen, (2003).

As a result of the above factors, small and medium enterprise have failed to make any

reasonable impact on the economy, by way of expansion, modernisation since their

inception while some died naturally. The survival and success of any small and medium

enterprise (SMEs) therefore depends on the superior use of marketing strategy.

Therefore, the business owners must acquire thorough understanding skill and application

of business strategy. Lehman & Steckel (2000)

2.4 Strategies for small and medium enterprise survival and success:

Having discussed so far on the need for business to adopt necessary marketing

strategies in order to enhance survival in the face of high competitive environment and

the effect of the present economic recession in the world, it is pertinent at this juncture to

review some of the strategies for business survival if carefully adopted. These strategies

include:

(a) Relationship Marketing and customer satisfaction

(b) Corporate Social Responsibility and consumer patronage

(c) Market orientation and Business profitability

(d) Product quality and Customer Loyalty

2.4.1 Relationship Marketing and Customer Satisfaction

Velnampy & Sivesan, (2012) conducted a research on “customer relationship

marketing and customer satisfaction: A study on mobile service providing companies in

Sri lanka”. They opined that in this present era, customer relationship marketing plays a

17
vital role and the major goals of customer relationship marketing can be expressed simply

as understanding and treating customers better for increased loyalty and profit.

The objectives of their study was to examine the relationship between the

customer relationship marketing and customer satisfaction in mobile service providing

companies, to identify the role of customer relationship marketing on customer

satisfaction, to investigate the impact of customer relationship marketing on customer

satisfaction and to suggest the mobile service companies to build the customer value.

Data was collected for this research through a seven points likert type summated

rating scales of questionnaire. A close ended questionnaire was developed for the purpose

of collecting the main data for the study. A sample of one hundred and seven customers

was surveyed from mobile service providing companies such as Airtel, Dialog and

Mobitel. The questionnaire were in three sections A, B, and C. Section A consists of

personal details such as sex, status, age, education, monthly income, company, name and

length of time customer has been in brand kinds of packages. Section B consists of ten

statements such as trust, commitment, equity and empathy to measure customer

relationship marketing. Section c consists of ten statements to evaluate customer

satisfaction.

In the empirical results, Velpanampy & Sivesan, (2012) found out that before

applying statistical tools, testing of the reliability of the scale is very important as it

shows the extent to which a scale produces consistent results if measurements are made

repeatedly. They opined that it is by determining the association in between scores

obtained from different administration of scales. Cronbach’s alpha method was used to

18
test the reliability. Cronbach’s alpha estimate for trust was 0.889, commitment scale was

0.890, empathy scale was 0.908, equity scale was 0.901, customer relationship marketing

0.855 and the overall customer value creation scale was 0.726. The constructs were

therefore deemed to have adequate reliability.

Correlation and regression analysis was used to measure relationship and

contribution among the dependent and independent variable. Regression test was carried

out to find the contribution of customer relationship marketing on customer satisfaction.

According to the result, they found out there was a significant relation between customer

relationship marketing and customer satisfaction.

Correlation (matrix) analysis was applied to identify the relationship among

variables and the result revealed that there was significant correlation among dimensions

of customer relationship marketing and customer satisfaction. Such reliability,

responsiveness, functionality were positively correlated.

In conclusion, they opined that there are only four mobile service providing

companies (Dialog, Mobitel, Airtel, Etisalat) in Sri Lankan mobile service market. The

competition between them is more intense than ever that they not only compete in

infrastructure facilities like network tower, they have also invested a lot of money to

provide effective service for customers. Customer relationship marketing has significant

impact on customer satisfaction. However, proportion of impact on customer relationship

marketing on customer was on low level. Their reasons were that most of mobile service

providing companies failed to build to trust among their customers. Some of the

companies spent a lot of time and money to build and maintain their company’s

19
 infrastructure facilities but they fail to take fruitful effort to satisfy their customer needs

with psychological view.

According to this research as to what mobile service providing companies have

been doing, they opined that priority should be given to how to reduce customer

dissatisfaction and improve service quality.

2.4.2 Corporate Social Responsibility and Customer Patronage

Babatunde & Akinboboye, (2013) conducted a research on “Corporate Social

Responsibility on Consumer Patronage: A case study of a telecommunication company in

Nigeria”. They opined that corporate social responsibility has become an important topic

in recent years, most especially in a developing country like Nigeria where government

regulation is a “toothless bulldog” to the private and multinational companies. This, with

the growing recognition of the significant effect the corporate social responsibility was on

a company and the environment. They added that it has become increasingly clear that

firms can contribute their own wealth and to overall societal wealth by considering the

effect they have on the community where they operate and the world at large when

making decisions.

The objectives of their study was to know how effective corporate social

responsibility (CSR) is on consumer patronage from social responsible firms, to know the

influence of corporate social responsibility on consumer attitudes towards product and

social firms, to know the positive and negative effects of corporate social responsibility.

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 The research was conducted using survey approach. A self-completion

questionnaire was designed and distributed to the staff of the company on a working day.

The population of the study was the accessible management staff of MTN in Lagos State

who, in one way or the other had a relationship with the customer far or near. A snowball

sampling method was used which gave the sample size of 100. The questionnaire consists

of two sections. Section A and B. section A contained personal data of respondents and

section B covered the main questions relating to the topic under study. 90 were properly

filled among the returned questionnaires.

Data was analysed using simple percentage and frequency, while the chi-square

method was employed for the hypotheses. The findings suggested that the practice of

corporate social responsibility as a marketing strategy enhances consumer patronage

towards a particular firm and also by investing in corporate social responsibility (CSR), a

firm could achieve a positive outcome in terms of its financial performance.

In conclusion, they added that corporate social responsibility affects consumer

patronage worldwide and in Lagos metropolis. From the analysis collected, it was

indicated that generally corporate social responsibility (CSR) is of great importance in the

following areas – consumer patronage, society, consumer satisfaction, retaining and

building loyal customers.

2.4.3 Market Orientation and Business Profitability

John & Stanley, (1990) conducted a research on “the Effect of market orientation

on business profitability”. Their aim was to develop a valid measure of market orientation

and analyse its effect on business profitability, to know the relationship between

21
sustainable competitive advantage and market orientation, and why a market orientation

is the business culture that most effectively and efficiently creates superior value for

customers.

The sampling units for the study were 140 strategic business units (SBUs) of a

major western corporation. The strategic business units (SBUs) were all in the forest

products division of the corporation. Within each SBU, the top management team

received a questionnaire titled “Business Practices Survey”. They also assured the

respondents of their anonymity. Four hundred and fourty questionnaire were sent out.

Three hundred and seventy-one usable questionnaire were returned, an 84% response

rate. The total of 113 strategic business units (81%) with no missing data consisted of 36

commodity businesses, 23 specialty products, 51 distribution businesses and 3 export

businesses.

To establish the face validity of the construct, they developed multiple items that

characterised the hypothesised five components of market orientation. They submitted

these items to a panel of academicians who are recognised authorities on strategic

marketing. Items were phrased to describe both favourable and unfavourable practices to

offset any affirmation/negation response bias. Responses were recorded on a 7-point

likert scale with a 1 indicating that the business unit does not engage in it to a very large

extent.

On the validity, they examined with simple correlation and factor analysis on the

relationship among the three behavioural core market orientation components and their

relationships with three other management policy variables that are conceptually linked

22
 to market orientation. In summary, they found out that there was support for the construct

validity of the three components model of market orientation.

Ordinary least squares regression analysis was to test that market orientation and

performance are associated positively. Their findings support the hypothesis that for both

the commodity and non-commodity, market orientation is an important determinant of

profitability. Among the non-commodity businesses, a positive market

orientation/profitability relationship is found only among businesses that are above the

median in market orientation.

In conclusion, they added that the findings suggested that after controlling the

important market-level and business level influences, market orientation and profitability

are strongly related. These findings were entirely consisted with the intuition and

expectations of both scholars and practitioners over the past decades about the nature and

effects of market orientation.

2.4.4 Product Quality and Customer Loyalty

Agustina & Iman, (2010) conducted a research on the “effect of product quality

on customer loyalty: A case study on the brand of Honda Motor Cycle in Indonesia”.

They opined that there is an increase in economic development in Indonesia today,

making various automotive industry compete to create “quality product” and superior to

their competitors. They added that new product (Thermotocycle) made for personal use,

is required for condition that can satisfy customer and it is also considered to achieve

improved corporate profits and high customer loyalty.

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 The aim of their study was to analyse the influence of the independent variable

“product quality” on customer loyalty in the Honda brand motorcycle products. In the

study, the use of primary data was collected from 110 respondents selected by simple

random sampling. Data was analysed using multiple regression analysis. From the test

result obtained by ANOVA calculated F value was 7.703 with significant level of 0.001

since 0001 is the value of <0.005. The regression model was used to predict customer

loyalty. The findings showed that product quality enhances customer loyalty.

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 CHAPTER THREE:

3.1 The Study Area:

The area of this study is Abuja, Federal Capital Territory (FCT). Abuja, Federal

Capital Territory (FCT) it’s lies between latitude 04 0 15’ and 50N and longitude 80 25’E

in the north.

3.2 Population of the study:

According to Ikeagwu, (1998) Population is the aggregate of the

individual person or objects for investigation. The population of this study were the

management and employees of Vickey Jay Supermarket and Roseberry Mart

respectively. A population of 28 employees was taken into consideration. Vickey Jay

supermarket has 15 employees while Roseberry Mart has 13 employees.

3.3 Research Design

In this study, survey and exploratory research designs was adopted. The

survey research design is suitable for collecting primary data from the survey

respondents in order evaluate the impact of marketing strategy on performance of

selected small and medium enterprise while exploratory research design is a kind of

field study in which the researcher tries to obtain some information about a particular

subject in order to increase his understanding of the nature of the problem. In order

words it is used to enhance collection of secondary data.

This study will make use of questionnaire in collecting qualitative and

quantitative data from the sample of the study population.

3.4 Sampling Design and Procedures

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 This study adopted simple random sampling in selecting the respondents.

The total population size is 28, so in determining the sample the sample size of the

respondents, Yaro Yameni’s formula will be used. The formula for determination of

sample size is

n= N
Where N = the population
2 of the study
1 + N(e )
e = tolerable error margin (taken to be 5% or 0.05)
n = desired sample
1 = constant
For this we have
28
1 + 28(0.052)

28
1 + 0.07

28
= 26
1.07

3.5 Sources of Data and Data Collection

Two major sources of data that was used in this study are primary and secondary

sources of data. The primary data was gathered through the use structured questionnaires

that will be administered to randomly selected members.

Secondary data was obtained from textbooks, internet, journals, seminar paper,

unpublished works and other materials relevant for this study.

3.6 Data treatment technique

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 Simple descriptive statistical tools such as table, frequency and percentage will be

used to present the findings.

The formulated hypotheses were tested with the use of simple regression analysis.

Y’ = a + bx

Where a = the y intercept

B = the slope of the line

Y’= predicted value of Y

x = the independent variable or predictor

3.7 Limitation of the study

Like any other research, this project also was confronted by certain

constraints and limitations. One of the limitations of this study is that an in-depth

analysis of the individual retail outlets cannot be made for the simple fact that small

and medium enterprise owners do not want to disclose their strategies to the

researcher. The near absence of information or statistics about operations of small and

medium enterprises in Abuja, Federal Capital Territory (FCT)ity makes it difficult to

make accurate assessment of the business operations. More so, the short time and

little funds available to the researcher made it difficult to make a wider coverage and

in-depth assessment. The time within which the study was carried out was too short

for such an in-depth study.

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